Ethics: The Foundation for
Relationships in Selling
Concepts and Practice

 What do you think are the most common ethical dilemmas that salespeople face?
 How do you think the average salesperson performs in each of those situations?

 Business ethics: principles and standards that guide behavior in the world of business
 They help translate your values into appropriate and effective behaviors
 No one uniform code of ethics for all salespeople, but many businesses, professional associations, and certification agencies have established written codes
 See a primer on business ethics on the Web at:
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Code of the National Association of
Sales Professionals
FIGURE 5.1
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 Colleges and universities are beginning to play a more active role in character development
 Courses that focus on ethics are becoming quite common
 Despite a growing interest in business ethics, unethical behavior has become all too common
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Enron—A Classic Case in Ethics
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 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, it was listed as number5 in Fortune 2002 list! Why?

Fortune’s 2002
Company Rankings
Top 500
1. Wal-Mart
2. Exxon-Mobil
3. General Motors
4. Ford
5. Enron
6. General Electric
7. Citigroup
8. Chevron-Texaco
9. IBM
10. Phillip Morris
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Best to Work For
1.
Edward Jones
2.
Container Store
3.
Alson & Bird
4.
Xilinx
5.
Adobe Systems
6.
American Cast Iron Pipe
7.
TD Industries
8.
J. M. Smucker
9.
Synovus Financial
10. Wegmans Food Markets

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 We are in it only for ourselves
 Corporations exist to maximize shareholder value
 Companies need to be lean and mean

FIGURE 5.2

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 Ethical standards filter down from the top
 Organization’s moral tone, set by management, is most important determinant of employee ethics
 Managers must infuse ethical values in subordinates

 Company policies and practices can have a major impact on conduct
 Developing ethical policy statements forces company to take a stand
 Policies should include distributor relations, customer service, pricing, product development, etc.
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Trust:
The St. Paul
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Mutual of Omaha’s
Values for Success
1. Openness and trust
2. Teamwork (win-win)
3. Accountability/ownership
4. Sense of urgency
5. Honesty and integrity
6. Customer-focus
7. Innovation and risk
8. Caring/attentive (be here now)
9. Leadership
10. Personal and professional growth
Read more about their values at: careerlink.org
.

How would you react to each of the following?
 Your company has a set amount for mileage reimbursement, but your sales manager tells you to inflate your expense account to make up for the rising costs of transportation.
 You are meeting with a customer and he asks you to take him to lunch. You get the impression that he wants you to pay, but your company has a strict “no gifts” policy.
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 Sharing confidential information
 Reciprocity
 Bribery
 Gift giving
 Entertainment
 Business defamation
 Use of the Internet
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 A salesperson’s actions often mirror those of the sales manager
 Sales managers are responsible for interpreting company policy
 Values such as integrity and honesty must receive constant manager support

 Values are deep personal beliefs and preferences, representing the ultimate reasons people have for acting as they do
 Values serve as foundations for our attitudes
 Attitudes serve as foundations for our behavior
FIGURE 5.3
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You have three basic choices:
1.
Ignore the influence of your values and engage in the unethical behavior
2.
Voice strong opposition to the practice that is in conflict with your value system
3.
Refuse to compromise your values and be prepared to deal with the consequences
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Laws, Contracts, and
Agreements
 Legal environment plays a role in preventing unethical behavior
 Cooling-off laws
 Uniform Commercial Code—law influencing buyerseller transactions
 Oral and written contracts
 Beyond the letter of the law
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TABLE 5.1
The Uniform Commercial Code
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Some general guidelines:
 Personal selling must be viewed as an exchange of value
 Relationship comes first, tasks second
 Be honest with yourself and others
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 CRM software allows storage of transaction data and personal info
 Record facts, not opinions or conclusions
 CRM data is “mobile” and other people may see or use it
 Do not store anything you do not want the customer to see
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 In transactional sales, the focus is on trust in the product
 In consultative sales, the focus is on trust in the salesperson
 In strategic alliance sales, the focus is on the other company and its values