Ppt of Sales Management by Charles Futrell by hcg20920

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									Chapter             2
       Ethics First...
Then Customer Relationships
             Main Topics
 Social, Ethical, Legal Influences
 Management’s Social Responsibilities

 What Influences Ethical Behavior?

 Are There any Ethical Guidelines?

 Management’s Ethical Responsibilities

 Ethics in Dealing with Salespeople
           Main Topics, cont...
   Salespeople’s Ethics when Dealing with Their
   Ethics in Dealing with Customers
   The International Side of Ethics
   Managing Sales Ethics
   Ethics in Business and Sales
   The Tree of Business Life
          Management’s Social

   Social responsibility is
    management’s obligation
    to make choices and take
    actions that contribute to
    the welfare and interests
    of society as well as to
    those of the organization
    Organizational Stakeholders
   A stakeholder is any group inside or outside
    the organization that has a stake in the
    organization’s performance
   Stakeholders may have similar or different
    interests in the organization:
      Customers     Owners
      Community     Managers

      Creditors     Employees

      Government    Suppliers

Exhibit 2-2: Major Stakeholders in
 the Organization’s Performance
           An Organization’s Main

   Economic - Be profitable.
   Legal - Obey the law.
   Ethical - Do what is right.
   Discretionary -
    Contribute to community
    and quality of life.
Exhibit 2-3: An Organization’s Main
What Influences Ethical Behavior?
   The Individual’s Role
        Level one: Preconventional – acts in own best interest
            A few operate here
        Level two: Conventional – upholds legal laws
            Most people operate here
        Level three: Principled – lives by own code
            Less than 20% reach level three
   The Organization’s Role
      At best, most employees in firm operate at level two
      How will the situation be handled if no policies and
       procedures are in place?
Exhibit 2-4: What Is Your Level of
      Moral Development?

           Principled - “What is the right
            thing to do?”

           Conventional - “What am I
            legally required to do?”

           Preconventional - “What can I
            get away with?”
Exhibit 2-5: Moral Development
           Bell Curve
Are There Any Ethical Guidelines?
   What Does The Research Say?
     American adults said by a 3-to-1 margin that truth
      is always relative to a person’s situation
     People are most likely to make their moral and

      ethical decisions based on:
        whatever feels right or comfortable in a
How Do You Make Your Moral-Right
 or Wrong Choices? (Choose One)
   Whatever will bring you the most pleasing or
    satisfying results
   Whatever will make other people happy or
    minimize interpersonal conflict
   Values taught by your family
   Primarily from religious principles and
    teaching or Bible content
   Other
    Are There Ethical Guidelines?
   What Does One Do?
      What if you found a bank bag containing
       $125,000? Would you return it to the bank?
      Is it fear of being caught?

      Not the right thing to do?
    Are There Ethical Guidelines?
   Out of class, is it okay to copy someone
    else’s homework assignment?
   What keeps you from cheating on an exam
    when the professor is out of the room?
      Is it fear of being caught?
      Not the right thing to do?
    Are There Ethical Guidelines?
   Is Your Conscience Reliable?
      We all have an internal constant standard with
       which we measure right and wrong, a “moral
      Most of us know we should return the $125,000

       and not copy someone’s homework.
      But what would we actually do?
    Are There Ethical Guidelines?
   Is Your Conscience Reliable? (Cont’d)
   If a person’s values are at “Level 2,” they
    may make decisions based on the situation
    and what others say and do.
        Usually people rationalize their decisions; “I’ll
         only copy the homework this one time.”
   Many people are so accustomed to doing
    things unethically that they think nothing
    about it.
    Are There Ethical Guidelines?
   Sources of Significant Influence
      Do factors influencing our decisions include
       your friends, family, or things you see on
       television or in the movies?
      Barna has found that the leading influences on

       American ethics are movies, TV, the Internet,
       books, music, public policy, law, and family
To Have Ethical Guidelines You Need
   A point of reference that:
      Is fixed – so that no one can change it
      Is separate from you

      No one else may influence
The Fixed Point of Reference Must Be:
   Right whether people:
      Believe it or not
      Like it or not

      Know about it or not
How Do You Know If What Someone
    Is Saying is True Or Not?
   Can it be a moral and ethical standard?
   There is no way for you to know if what I am
    saying is true unless you know what is the
   And there is no way to know what is the truth
    unless there is a truth you can know.
       Exhibit 2-6: What Is a Fixed
          Point of Reference?
   Stars can be used for navigation because
    they are a fixed point of reference separate
    from you that no one can influence.
    Will The Golden Rule Help?
   The “Golden Rule” concept is present in
    virtually all faith-based principles.
   The Golden Rule does not involve reciprocity.
   “Could the Golden Rule serve as a universal,
    practical, helpful standard for the
    businessperson’s conduct?” (Hartman 2004)
   Would you consider your faith a fixed point
    that is separate from you and never
Exhibit 2-7: Examples of World Religions
   Which Embrace the Golden Rule
   Hindu - “Do naught unto others what you
    would not have them do to you.”
   Confucius - “Do not do to others what you
    would not like yourself.”
   Buddhist - “Hurt not others in ways that you
    yourself would find hurtful.”
   Rabbi Hillel - “That which is hateful to you do
    not do unto your neighbor.”
   Jesus Christ - “Do to others as you would
    have them do to you.”
What Do You Use For a Moral
Management’s Ethical Responsibilities
   Ethics is the code of moral principles and
    values that govern the behaviors of a person
    or a group with respect to what is right or
   Ethical behavior refers to treating others fairly.
    What is an Ethical Dilemma?
   A situation in which each alternative choice
    or behavior has some undesirable elements
    due to potentially negative ethical or personal
Ethics in Dealing with Salespeople
   Five ethical considerations faced by sales
      Level of sales pressure
      Decisions affecting territory

      To tell the truth?

      The ill salesperson

      Employee rights

          termination-at-will
          privacy
          sexual harassment
          Benefits of Respecting
            Employees Rights
   More productive employees
   Attracting good sales personnel
   Reducing legal costs
   Reducing wage increase demands
Salespeople’s Ethics in Dealing with
        Their Employers
   Misusing company assets
   Moonlighting
   Cheating
   Affecting other salespeople
   Technology theft
Ethics in Dealing with Customers
   Bribes
   Misrepresentation
   Price discrimination
      Robinson-Patman Act
      Selling the same quantity of the same product to
       different buyers at different prices.
   Tie-in sales
      To buy a particular line of merchandise, a buyer
       may be required to buy other, unwanted products.
      Clayton Act
Ethics in Dealing with Customers
   Exclusive dealership
   Reciprocity
        Buying a product from
         someone if the person
         or organization agrees
         to buy from you
   Sales restrictions
      Cooling-off laws
      Green River ordinances
The International Side of Ethics
   Guidelines for conducting international
    business may be different or even
   Despite laws in other countries, U.S. firms
    are subject to U.S. laws
   It is important to keep up to date on the law
    and be aware of how authorized
    representatives are conducting business
        Managing Sales Ethics
   Follow the leader
   Leader selection is important
   Establish a code of ethics
   Create ethical structures
   Encourage whistle-blowing
   Create an ethical sales climate
   Establish control systems
    Ethics in Business and Sales
   Personal project for you this week:
      Using the three levels of moral development,
       score each ethical or moral decision you make
       this week
      Do you have a pattern of using different moral

       development levels for different decisions?
      What is a moral or ethical issue for you?
          Helpful Hints to Making
            Career Decisions
   Your employer should provide worthwhile
   You should be able to do what is right.
   You do not have to compromise your beliefs.
   People go before anything else.
   Good people are desperately needed in all
    types of businesses/organizations.
   Look for a calling, not a job.*
Do Your Research to Find an Ethical/Moral
     Employer. Is the Employer’s...
   Mission to serve?
   Vision based upon the Golden Rule?
   Values based upon integrity, trust, and
   Foundation based upon service?
   Cornerstone love of people?
Exhibit 2-10: What Do You Look for
          in an Employer?
Exhibit 2-11: The Tree of Business Life’s
 Roots and Frame Based Upon Truth
                   The Tree is rooted in:
        T                Integrity: being honest and
      T T                 without compromise or corruption
     T T TT              From integrity flows confidence
    T T T T               that one can trust the other
      Builds             Integrity and trust form the
                          attributes often referred to as
                   Framed by:
                         Ethical Service that Builds True
   Relationships          Relationships
                   Shown with T’s standing for:
                         Truth: facts needed to make
                          ethical and moral decisions
Golden Rule + Tree of Life
     T             Measure the growth
   T T              of your Business Tree
  T T TT            of Life with your
 T T T T            Golden Rule of
   Builds           Personal Selling.

Ethics Rule Business
Summary of Major Selling Issues
   Ethical behavior pertains to values of right
    and wrong.
   Ethical decisions and behaviors are typically
    guided by a value system.
   An important individual characteristic is one’s
    level of moral development.
   Corporate culture is an organizational
    characteristic that influences ethical behavior.
    Summary of Major Selling Issues,
   Social responsibility in business means
    profitably serving employees and customers
    in an ethical and lawful manner.
   Ethical standards and guidelines for sales
    personnel must be developed, supported,
    and policed.
   Research suggests that socially responsible
    organizations perform as well as – and often
    better than – organizations that are not
    socially responsible.

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