ethics the foundation for relationships in selling c h a p t e r 5
TRANSCRIPT
Ethics
THE FOUNDATION FOR RELATIONSHIPS IN SELLING
C H A P T E R 5
Copyright2004 Pearson Education Canada Inc.
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C H A P T E R 5
Learning Objectives
• Discuss the influence of ethical decisions on relationships in selling
• Describe the factors that influence the ethical conduct of sales personnel
• Compare legal versus ethical standards
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Learning Objectives (Continued)
• Explain how role models influence the ethical conduct of sales personnel
• Discuss the influence of company policies and practices on the ethical conduct of salespeople
• Explain how values influence behaviour• List three general guidelines for
developing a personal code of ethics
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Ethics are…
Rules of conduct used to determine what is good or bad. They are moral principles or values concerned with what ought to be done—a person’s adherence to honesty and fairness.
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Caveat Emptor . . .
Caveat emptor is the philosophy that states, “Let the buyer beware.”
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Factors Determining Ethical Behaviour of Salespeople
Municipal, provincial, and federal laws
Role model provided by top management
Company policies and practices
Role model provided by sales manager
Personal values of salesperson
Ethical conduct of salespeople
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Relevant Sales Issues
• Price Fixing
• Bid Rigging
• Price Discrimination
• Predatory Pricing
Canada’s Competition Act
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Relevant Sales Issues (Continued)
• Misleading Advertising
• Double Ticketing
• Resale Price Maintenance
Canada’s Competition Act
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Relevant Sales Issues (Continued)
• Refusal to deal
• Exclusive dealing
• Tied Sales
Canada’s Competition Act
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C H A P T E R 5
Relevant Sales Issues (Continued)
• Pyramid Selling
• Referral Selling
• Bait and Switch Selling
Canada’s Competition Act
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Sales Guidelines
• Sharing Confidential Information
• Reciprocity
Should be provided to cover
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Reciprocity…
is a mutual exchange of benefits, as when a company buys products from its own customers.
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Sales Guidelines (Continued)
• Bribery
• Gift giving
• Entertainment
• Business Defamation
Should Be Provided to Cover
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Gift Giving Guidelines
• Do not give gifts before doing business with a customer.
• Do not use the gift as a substitute for effective selling methods.
• Never convey the impression you are “buying” the customer’s business with gifts.
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Gift Giving Guidelines (Continued)
• When gift giving is done correctly, the customer will clearly view it as symbolic of your appreciation.
• Be sure the gift is not a violation of the policies of your firm or of your customer’s firm.
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Guidelines for a Personal Code of Ethics
• Personal Selling must be viewed as an exchange of value
• Relationships come first, the task second
• Be honest with yourself and others
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CPSA Sales Institute Code of Ethics
www.cpsa.com