Selling Ethically

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CHAPTER 3

• Selling Ethically

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Open Floor

• Quiz 1
• Chapter 3
• Five Multiple Choice Questions
• Scantron Name and Section

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Open Floor

• Chapter 3 Today
• Five-Paragraph Essay Overview and Jump-start
  Exercise for Autobiographical Essay

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Overview

• Last Time
• Chapter Two
• Today
• Chapter Three Ethical Selling

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Always do rightthis will gratify some and
astonish others.

• Mark Twain

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Moral Standards

• Ethics are moral standards by which actions and
  situations can be judged
• Honesty
• Fairness

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What is right? What is wrong?

• Values congruity is a level of agreement among
  different people about the values that are
  important
• Salespeople interact with many different people
• Reaching agreement on what is ethical can be a
  challenging task

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Ethical Conflict

• Each party in a sales transaction brings a set of
  expectations
• Which set of interests does the salesperson
  choose to satisfycorporate interests or the
  customers interest?
• How do the values of the salesperson affect these
  decisions?
• What are the consequences of the various sales
  alternatives available to the salesperson?

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Multiple Business Relationships

• The role as a boundary spanner requires
  salespeople to manage multiple relationships both
  internally and externally
• Salespeople interact with
• Their sales managers
• Other marketing personnel
• A variety of non-marketing personnel within their
  organization (internally)
• Customers and prospects in the field (externally)

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Sources of Conflict

• Conflict may exist between salespeople and others
  within the sales organizational relationship
• Norms represent standards of behavior that groups
  expect of their members (Refer to Table 3.1)
• Moral types are classes of people who are grouped
  according to the values that they hold

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Classification of Moral Types
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Three Qualities forEthical Decision-making

• Ability to recognize ethical issues and think
  through consequences
• Self confidence to seek others points of view
• Willingness to make ethical decisions when
  theres no obvious solution

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Figure 3.1Ethical Decision Making Framework
Characteristics of the Decision-Maker
Decision
Ethical Situation
Outcomes
Significant Influences
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Characteristics ofthe Decision Maker

• Achievement motivation
• Need for affiliation
• Ego strength
• Locus of control
• Knowledge
• Experience
• Risk taking
• Machiavellianism

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The Ethical Situation

• Opportunity
• Ethical decision history
• Moral intensity of the situation
• Selective perception

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Significant Influences

• Salespeople, as they attempt to build
  relationships, often try to fit their actions in
  response to others who are involved in the
  building of that relationship
• Family/ friends
• Work colleagues
• Supervisors

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Figure 3.2The Role Episode Process
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Other Significant Influenceson The Salesperson

• The Organization
• Work
• The Law
• Economics
• Professionalism
• Technology

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The Decision

• Variations in decisions will occur
• Some salespeople will judge actions strictly
  according to their perceived rightness or
  wrongness
• Some salespeople may choose to ignore the
  consequences of their actions while others focus
  exclusively on them

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Outcomes

• Performance
• Satisfaction
• Feedback
• Promotions
• Learning

While outcomes are neither ethical nor unethical,
the actions leading to those outcomes have
ethical ramifications
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Ethical ProblemsFaced By Salespeople

• Bribery
• Fairness
• Honesty
• Price Deception
• Product Deception

• Personnel Decisions
• Confidentiality
• Advertising Deception
• Data Manipulation
• Purch. Decisions

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Three-Minute Drill

• Identify a Possible Ethical Dilemma for a
  Salesperson
• Discuss at least Two Ways the Dilemma could be
  Realistically Handled
• Decide Which One is Better, and Why

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Break
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CRM and Privacy Issues

• Five recognized fair information practices
  pertinent to privacy
• Notice
• Choice consent
• Access
• Security
• Enforcement

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Codes of Ethics

• Corporate benefits
• Allow salespeople to identify what their firm
  recognizes as acceptable business practices
• Help salespeople to inform others that they
  intend to conduct business in an ethical way
• Can be an effective internal control of behavior
• Generate greater employee drive/effectiveness
• Attract high caliber people more easily
• Help salespeople avoid ethical confusion

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Codes and Excuses

• Four types of excuses
• I was told to do it
• Everybodys doing it
• My actions wont make any difference
• Its not my problem

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Codes and Performance

• Does the behavior or result achieved comply with
  
• Organizational standards of behavior as specified
  in the code of ethics?
• Professional standards of behavior as specified
  in an industry code?
• All applicable laws, regulations, or government
  codes?

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How Sales Organizations CanSupport Ethical
Practices

• Follow steps provided by the Federal Sentencing
  Guidelines
• Establish and enforce ethical codes
• Provide seminars and training in ethics
• Consult ethics advisors

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Ultimately,the individual salesperson is
responsible for his actions
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Discussion Questions

• How Do Conflicts of Interest Relate to Ethical
  Decision Making?
• Nature of Ethical Problems? Can they Ever Be
  Resolved? How?
• Salespeople Asking for Info on CompetitorsEthical
  Issues, and How Can they Be managed?

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Discussion Questions

• Entertaining Customers is BriberyAgree or
  Disagree, Why?
• Ethical Behavior is Ultimately the Salespersons
  responsibilityHow Would You Respond to this
  Statement?

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Role-Play Scenario

• Thaldorf and Mediquip Sales Director
• Your Personal Values
• Philosophy about Working with Customers
• Explain How These Relate to Selling and Servicing
  Customers

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Knowledge-Building Case

• Thaldorf as Boundary-Spanner
• Also Members of Buying Center?
• Why Should Salespeople Be Willing to Do So?
• Is Thaldorf in a Position to deal with Questions
  of Ethics as they Arise between Different Members
  of the Organization?

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Knowledge-Building Case

• How Will Thaldorf Have to Deal with the Issue of
  Honesty in Lohmann University Hospital Setting?

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Review - Preview

• Today
• Selling Ethically
• Next Class
• Five-paragraph Essay Instruction

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Assignments

• Read Five-Paragraph Essay Examples
• Health News
• Job Application
• Read Five-Paragraph Essay Instructions

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Overview

• Last Time..
• Chapter Two Changing World of Sales
• This Time
• Selling Ethically
• Discussion of Five Paragraph Essay Topic -
  Autobiography

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Five-Paragraph Essay Discussion

• Talk about Possible Topics
• Strong and Why
• Weak and Why

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Assignments

• Read Service CLV
• Questions 2, 3, 6, 8, 12
• Mediquip Knowledge-Building Qs 1, 3, 4