Sales Management
Social, Ethical, and Legal
Responsibilities of Sales
Personnel
Sales Management
Management’s Social Responsibilities
Organizational Stakeholders
Customers
 Community
 Creditors
 Government
 Owners
 Managers
 Employees
 Suppliers

Sales Management
Management’s Social Responsibilities
Economic Responsibilities
 Produce
Goods and Services
 Maximize Profits
Legal Responsibilities
• Fulfill their Economic Goals Within a
Legal Framework
Sales Management
Management’s Social Responsibilities
Ethical Responsibilities
 Act
with Equity, Fairness & Impartiality
 Respect the Rights of Individuals
Discretionary Responsibilities
• Voluntary & Guided by Company’s
• Desire to Make Social Contributions
Sales Management
Management’s Ethical Responsibilities
“Ethics”
 A set of moral principles and values
that governs the behavior of a
person or a group with respect to
what is right and wrong.
Sales Management
Management’s Ethical Responsibilities
What is an Ethical Dilemma?

There is no uniform codification of
ethics so differences and dilemmas
about proper behavior can occur.

A situation when all of the choices for a
solution to a problem have some element
that could create negative ethical or
personal consequences.
Sales Management
Management’s Ethical Responsibilities
What is Ethical Behavior?

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Being honest
Maintaining confidence and trust
Following the rules
Conduct yourself in proper manner
Treat others fairly
Loyalty to company and associates
Carry your share - 100% effort
Sales Management
Management’s Ethical Responsibilities
Company to Salesperson dilemmas:
 Level


of Sales Pressure
Setting Sales Goals
(realistic/obtainable)
Management Style
Sales Management
Management’s Ethical Responsibilities
Company to Salesperson dilemmas:
 Territorial Decisions
 Expanding Territories
 Decreasing Territories
 Creating House Accounts
Sales Management
Management’s Ethical Responsibilities
Company to Salesperson dilemmas :
 To
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Tell The Truth?
Performance
At Termination
 The

Ill Salesperson
Alcohol or Drug Abuse Treatment
 Employee
Rights
Sales Management
Management’s Ethical Responsibilities
Company to Salesperson dilemmas :
 Employee
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Rights
Termination-at-will
Privacy
Sexual Harassment
Sales Management
Management’s Ethical Responsibilities
Company to Salesperson dilemmas :
 Reason
to Respect Employee
Rights
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High quality of work life
Attracting/Retaining good people
Avoid costly back-pay and awards
Establish balance between employee and
employer rights/obligations
Sales Management
Salesperson’s Ethical Responsibilities
Salesperson ethics re: The Company
 Misuse
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of Company Assets
Automobiles
Expense Accounts
Samples
Damaged merchandise credits
 Moonlighting
Sales Management
Salesperson’s Ethical Responsibilities
Salesperson ethics re: The Company
 Cheating

Contests
Holding Sales
 Overloading Customer

 Affecting

Fellow Salespeople
Taking Customers
Sales Management
Management’s & Salesperson’s Mutual
Ethical Responsibilities
How to Treat The Customer
 Bribes
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or Gifts
Offering
Buyer Originated
 Misrepresentation
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“Sales Puff ” vs. Statements of Fact
Legal Ramifications
Sales Management
Management’s & Salesperson’s Mutual
Ethical Responsibilities
How to Stay Legal
Know capabilities and characteristics of
company products and service
 Statements of Praise vs. Statements of Fact
 Educate Customers before the Sales
 State Product Capabilities Accurately
 Know Technical Specifications

Sales Management
Management’s & Salesperson’s Mutual
Ethical Responsibilities
How to Stay Legal
Avoid Exaggerated Product Safety Claims
 Know Federal and State Laws
 Keep Current with Design Changes and
Revisions
 Avoid Opinions Stick to Testing Statistics
 Never Overstep Authority (Pricing or Policy)

Sales Management
Management’s & Salesperson’s Mutual
Ethical Responsibilities
How to Treat The Customer
 Price

Discrimination
Customers who buy similar
quantities should receive same
pricing
 Tie-in

Sales
Violates Clayton Antitrust Act
Sales Management
Management’s & Salesperson’s Mutual
Ethical Responsibilities
How to Treat The Customer
 Exclusive
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Dealership
Purchase from one manufacturer Clayton Act
 Reciprocity
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“I’ll Buy Yours If You’ll Buy Mine”
FTC and Justice Scrutinize
Sales Management
Management’s & Salesperson’s Mutual
Ethical Responsibilities
How to Treat The Customer
 Sales

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Restrictions
“Cooling Off ” Laws - 3 days
Green River Ordinances
Sales Management
International Ethical Issues
U.S. Laws Do Not Stop at The Border
 Employees
of American Business
Should Know the Law
 Stick
to Features and Benefits and
Sell to Companies Not Individuals
Sales Management
Selling Ethics
Surveys Indicate Managers’ Experience
Most Managers:
 Face Ethical Problems
 Believe Managers and Employees
Should Be More Ethical
 Are More Ethical with Friends than
Strangers
 Lower Ethics to Meet Job Goals
Sales Management
Selling Ethics
Surveys Indicate Managers’ Experience
Most Managers:
 Are Aware of Ethical Issues in Industry
and Company
 Believe
Ethics Can Be affected by
Supervisors and Company Environment
Sales Management
Selling Ethics
Management Practices Help Responsiveness
Some Guidelines:
 Top

Management Takes Lead
CEO, President, Vice Presidents Must
Champion
 Carefully
Select Leaders
 Establish/Follow Code of Ethics
Sales Management
Selling Ethics
Management Practices Help Responsiveness
Some Guidelines:
 Establish/Follow
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Principle Based
Policy Based
 Create
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Code of Ethics
Ethical Structures
Ethical Committee
Ethical Ombudsman
Sales Management
Selling Ethics
Management Practices Help Responsiveness
Some Guidelines:
 Encourage

“Silent Witness” Program
 Create

Whistle Blowing
Ethical Sales Environment
Actions of Top-Level Managers
Sales Management
Selling Ethics
Management Practices Help Responsiveness
Some Guidelines:
 Establish

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Control Systems
Low Bid Review Process
Expense Report Audits