9TH EDITION
Manning and Reece
CHAPTER 4
ETHICS: THE
FOUNDATION FOR
RELATIONSHIPS IN
SELLING
4-1
LEARNING OBJECTIVES-1
Discuss influence of ethical decisions on
relationships in selling
Describe factors influencing ethical
conduct of sales personnel
Compare legal versus ethical standards
Discuss influence of company policies
and practices on ethical conduct of
salespeople
4-2
LEARNING OBJECTIVES-2
Explain how role models influence ethical
conduct of salespeople
Explain how values influence behaviors
Discuss guidelines for developing
personal code of ethics
4-3
BASIC ETHICAL ISSUE
”Why would any company violate the
moral contract it has with customers
and risk the loss of goodwill built up
over many years?”
4-4
ETHICS DEFINED
”Ethics are the rules that direct your
conduct and moral judgments. They
help translate your values into
appropriate and effective behaviors.”
4-5
MAKING ETHICAL DECISIONS
CHARACTER
DEVELOPMENT
EROSION OF
CHARACTER AND
CAVEAT EMPTOR
NATIONAL ASSN. OF
SALES PROFESSIONALS
STANDARDS (Fig. 4-1)
4-6
ENRON
Largest U.S. corporation to file
bankruptcy
Enron culture emphasized
--risk-taking
--personal ambition over teamwork
--earnings growth at any cost
Dishonest practices eroded company
character
BUT was listed as #5 in Fortune 2002 list!
Why?
4-7
FORTUNE’S 2002
COMPANY RANKINGS
TOP 500
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
BEST TO WORK
FOR
Wal-Mart
Exxon-Mobil
General Motors
Ford
Enron
General Electric
Citigroup
Chevron-Texaco
IBM
Phillip Morris
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Edward Jones
Container Store
Alson & Bird
Xilinx
Adobe Systems
American Cast Iron Pipe
TD Industries
J.M. Smucker
Synovus Financial
Wegmans Food Markets
Lists Copyright Fortune 2002-2003.
4-8
EROSION OF CHARACTER AND
HALF-TRUTHS
ONLY IN IT FOR OURSELVES
CORPORATIONS EXIST TO MAXIMIZE
SHAREHOLDER VALUE
COMPANIES NEED TO BE LEAN & MEAN
4-9
FACTORS DETERMINING ETHICAL
BEHAVIOR OF SALESPEOPLE
Figure 4.2
4-10
MANAGEMENT AS ROLE MODEL
Ethical standards tend to filter down
from top
Organization’s moral tone, set by
management, is most important
determinant of employee ethics
Managers must infuse ethical values in
subordinates
4-11
COMPANY POLICIES AND
PRACTICES
Company policies and practices can
have major impact
Developing ethical policy statements
forces company to take a stand
Policies should include distributor
relations, customer service,
pricing,
product development
4-12
THE ST PAUL
4-13
SEARS GUIDELINES FOR
ETHICAL DESCISION MAKING
IS IT LEGAL?
IS IT WITHIN SEARS’ SHARED
BELIEFS AND POLICIES?
IS IT RIGHT, FAIR, APPROPRIATE?
WOULD I WANT EVERYONE TO
KNOW ABOUT THIS?
HOW WILL I FEEL ABOUT MYSELF?
See Table 4.1.
4-14
ADDITIONAL POLICY AREAS
Sharing confidential information
Reciprocity
Bribery
Gift giving
Entertainment
Business defamation
Use of Internet
4-15
SALES MANAGER AS ROLE MODEL
Sales staff actions and attitudes often
mirror those of manager
Sales managers are responsible for
interpreting company policy
Values such as integrity and honesty
must receive constant manager
support
4-16
PERSONAL VALUES
Values are deep personal beliefs
Values serve as foundation for our
attitudes
Attitudes serve as foundation for our
behavior
VALUES
ATTITUDES
BEHAVIOR
4-17
LAWS CONTRACTS AGREEMENTS
All key elements are influences by
laws, policies, and agreements
Legal environment prevents engaging
in unethical behavior
Uniform Commercial Code is legal
accepted guide to buyer-seller
transactions
4-18
UNIFORM COMMERCIAL CODE
1. Definition of a sale
2. Warranties and
guarantees
3. Salesperson and reseller
4. Financing of sales
5. Product consignment
See Table 4.2.
4-19
PERSONAL CODE OF ETHICS
GUIDELINES
Personal selling must be viewed as
an exchange of value
Relationship comes first, tasks
second
Be honest with self and others
Think long-term…making ethical
error can damage reputation
4-20
EXERCISE CARE WITH
CRM TECHNOLOGY
CRM software allows you to store
transaction data
Record facts, not opinions or
conclusions
CRM data is “mobile”…other people
may see or use it
Don’t write anything you don’t want
customer to see
4-21
MAKING RIGHT ETHICAL DECISION
MAY HAVE IMPLICATIONS
”When you hold out for high standards,
people are impressed—but they don’t
always like you for it. Not everybody will
be on your side in your struggle to do the
right thing.”
Price Pritchette, The Ethics of Excellence
Last slide Chapter 4.
4-22