managing ethics in a sales environment
DESCRIPTION
A class presentation of chapter 2 from Sales Management book by HairTRANSCRIPT
![Page 1: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/1.jpg)
Managing Ethics in a
Sales Environment
Group 1 presents…
![Page 2: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/2.jpg)
What is Business Ethics?
![Page 3: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/3.jpg)
Ethics describes the moral content of behavior.
Business Ethics is the study of how businesspeople behave when facing a situation with moral consequences.*
Sales Management Ethics is the specific component of business ethics that deals with ethically managing the sales function.
![Page 4: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/4.jpg)
Salespeople are Boundary Spanners Boundary spanner is someone who
performs his or her job in the “boundary” between a company and a customer
Salespeople represent the company to the customer and the customer to the company.*
Sales managers have a special role in maintaining an ethical work and sales environment.
![Page 5: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/5.jpg)
Customer Vulnerability
Vulnerable meaning they are at a disadvantage relative to the company.
Most often, the disadvantage comes in these forms: Ignorance, Naiveté, and Powerlessness
![Page 6: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/6.jpg)
Sources of Potentially Unfair Advantages and Disadvantages in the Sales ArenaSource of Customer
VulnerabilitySalesperson Advantage
Customer Disadvantage
Ignorance Salesperson has superior technological
knowledge
Customer is technologically challenged and
cannot understand salesperson
Naiveté Salesperson allows room for negotiation
in setting prices
Customer doesn’t understand the
negotiation process.Powerlessness Salesperson works for
an exclusive supplier to the customer who is under contractual
obligation to purchase from the supplier
Customer represents a small retail
company with few assets and little access to other
markets
![Page 7: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/7.jpg)
Applying Professional Sales Codes of Ethics
![Page 8: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/8.jpg)
Codes of Ethics
It express the values of a firm by specifying, in writing, specific behaviors that are consistent or inconsistent with those values.
Codes must not only be adopted, they must embody values truly epitomized by top management.
![Page 9: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/9.jpg)
Types of Codes of Ethics
1. Company codes that define ethical boundaries for employees.
2. Professional codes that define ethical boundaries for occupational groups.*
3. Business association codes that define ethical boundaries for people engaged in the same line of business.*
4. Advisory group codes suggested by government agencies or other special interest groups.
![Page 10: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/10.jpg)
Generally PROHIBITED Behaviors in Sales-Related Codes of Ethics
Bribes, gifts, kickbacks
Conflicts of interest Illegal political
payments Violation of laws in
general Use of insider
information Violations of secrecy
agreement
Falsification of sales accounts
Moonlighting Violation of antitrust
laws Fraud and deception Illegal payments
abroad Justifying the means
by the intended end
![Page 11: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/11.jpg)
Ethical Philosophies and Moral Judgments
![Page 12: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/12.jpg)
Moral Philosophy
It deals with the systematic ways that individuals recognize and resolve decisions having moral content
![Page 13: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/13.jpg)
Idealism Ideals are set of principles by which
individual determine morality. Golden Rule is considered a widely held
moral principle or moral absolute Moral Absolute represents a rule that should
always be applied with no exceptions or excuses.*
Idealism as a moral philosophy deals more with how people use these principles than with whether individual principle itself is universally valid.
![Page 14: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/14.jpg)
Relativism
As a moral philosophy, is a process by which each individuals reach moral decisions based more on the actions they perceive to be acceptable given a particular situation
Those who are highly committed to relativism usually reject moral absolutes or imperatives
Relativism is sometimes called situational ethics*
![Page 15: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/15.jpg)
Teleology
It is a philosophy that defines morality based on the consequences of the behavior.
It allows some indiscretion based on the argument that the “good” that results is more important than the harm caused.
The end justifies the means.
![Page 16: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/16.jpg)
Moral Judgment
Is a person’s evaluation of the situation from an ethical perspective
Ethical Dilemma is a situation with alternative courses of action, each having different moral implications
![Page 17: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/17.jpg)
Moral Judgment Criteria
1. Moral Equity*2. Acceptability*3. Contractualism*
![Page 18: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/18.jpg)
Are Salesperson More Unethical
than Anyone Else?
![Page 19: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/19.jpg)
Creating an Ethical Work Climate
![Page 20: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/20.jpg)
Ethical work climate
It is a specific aspect of the organizational climate
Organizational climate is the way employees perceive the organizational culture
![Page 21: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/21.jpg)
Four unique aspects of Ethical Climate
1. Policies and rules2. Trust and responsibility3. Peer behavior4. Bottom-line sales emphasis
![Page 22: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/22.jpg)
Policies and Rules
It helps sales managers and sales people to internalize and govern selling and marketing conduct within the fir
Sometimes it is summarized in a code of ethics
![Page 23: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/23.jpg)
Trust and Responsibility
Its dimensions defines how far people are trusted to behave in a responsible way and are held personally responsible for their actions.
![Page 24: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/24.jpg)
Peer Behavior
As a dimension of ethical climate, is the extent to which employees view coworkers as having high standards.
![Page 25: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/25.jpg)
Bottom-Line Sales Emphasis Sales emphasis is the extent to
which employees feel pressured to prioritize increased sales, profits, margins, or other financial returns over all other concerns.
A strong sales emphasis or bottom-line orientation, coupled with a control system based on sales quotas, leads to a more negative ethical work climate
![Page 26: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/26.jpg)
Legal Considerations in the Sales Environment
![Page 27: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/27.jpg)
Federal Regulation
1. Laws protecting companies from each other
2. Laws and policies protecting consumer and society from unfair business practices
![Page 28: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/28.jpg)
Price Discrimination
The Clayton Act prohibits a seller from discriminating on price or terms of sale among different customers when the discrimination has a harmful effect on competition.
This practice is called price discrimination
![Page 29: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/29.jpg)
Price Differences or Different Terms of Sales are allowed under two conditions:1. The price differential is given in
good faith to meet a price offered by a competitor
2. The price differential is based upon cost savings reflecting a difference in the cost of manufacture, sale, or delivery resulting from the differing methods or quantities in which products are sold or delivered
![Page 30: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/30.jpg)
Different Behaviors Associated with Discrimination in the Marketplace
Collusion Price Fixing Exclusive Dealing Restraint of Trade Reciprocity Tie-in Sales Unordered Goods Orders and Terms
of Sale
Business Descriptions
Product Descriptions
Customer Coercion
Business Defamation
![Page 31: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/31.jpg)
Practicing Good Ethics Among the Sales Force
![Page 32: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/32.jpg)
Understanding Ethics
Ethical Maturity- it is reached when salespeople place the moral treatment of others ahead of short-term personal gain
![Page 33: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/33.jpg)
Measuring the Ethical CliimateExample Item Strongl
y Disagre
e
Disagree
Neutral
Agree Strongly Agree
Trust/Responsibility
Peer Behavior
Policies and Rules
Sales Emphasis
![Page 34: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/34.jpg)
Sales Manager Ethics Checklist
![Page 35: Managing ethics in a sales environment](https://reader033.vdocuments.site/reader033/viewer/2022061123/5470bb0eb4af9fb90a8b487d/html5/thumbnails/35.jpg)
Thank you!