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CHAPTER5Ethics:TheFoundationforRelationships
inSellingLearningObjectivesCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallDescribehowethicaldecisionsinfluencerelationshipsinsellingDiscussfactorsthatinfluencecharacterdevelopmentDescribethefactorsthatinfluencetheethicalconductofsalespersonnel5-2LearningObjectivesDiscussguidelinesfordevelopingapersonalcodeofethicsDescribeethicalandlegalissuesininternationalbusiness
5-3Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallMakingEthicalDecisionsBusinessethics:principlesandstandardsthatguidebehaviorintheworldofbusinessTheyhelptranslateyourvaluesintoappropriateandeffectivebehaviorsNooneuniformcodeofethicsforallsalespeople,butmanybusinesses,professionalassociations,andcertificationagencieshaveestablishedwrittencodes5-4Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallMakingEthicalDecisionsCharacterandintegritystronglyinfluencerelationshipsinpersonalsellingYourcharacterisbasedonyourinternalvaluesCharacterisbasedonyourinternalvaluesandtheresultingjudgmentsEthicaldecisionsyoumakereflectyourcharacterstrength5-5Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallCodeoftheNationalAssociationofSalesProfessionals5-6FIGURE5.1Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallCharacterDevelopmentCollegesanduniversitiesarebeginningtoplayamoreactiveroleincharacterdevelopmentCoursesthatfocusonethicsarebecomingquitecommonDespiteagrowinginterestinbusinessethics,unethicalbehaviorhasbecomealltoocommon5-7Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallHalf-TruthsInfluencingthe
ErosionofCharacterWeareinitonlyforourselvesCorporationsexisttomaximizeshareholdervalueCompaniesneedto
beleanandmean5-8Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallTheNationalBusiness
EthicsSurvey5-9
SeetheWebsiteCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallFactorsDeterminingEthicalBehaviorofSalespeople5-10FIGURE5.2Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallManagementasRoleModelEthicalstandardsfilterdownfromthetopOrganization’smoraltone,setbymanagement,ismostimportantdeterminantofemployeeethicsManagersmustinfuseethical
valuesinsubordinates5-11Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallTimberland5-12TimberlandCEOJeffreySwartzproudlypointsoutthecompany’sslogan:“Boots,Brand,Belief.〞SeetheWebsiteCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallCompanyPoliciesandPracticesCompanypoliciesandpracticescanhaveamajorimpactonconduct DevelopingethicalpolicystatementsforcescompanytotakeastandPoliciesshouldincludedistributorrelations,customerservice,pricing,productdevelopment,etc.5-13Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallTrustandIntegrity:
TheSt.Paul5-14SeetheWebsiteCopyright©2021PearsonEducation,Inc.PublishingasPrenticeHallAdditionalPolicyAreasSharingconfidentialinformationReciprocityBriberyGiftgivingEntertainmentBusinessdefamationUseoftheInternet5-15Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallInternationalBribery:
WhereDoYouDrawtheLine?Thetextstates: “Salespeoplewhosellproductsinforeignmarketsneedtoknowthatgivingbribesisviewedasanacceptablebusinesspracticeinsomecultures.However,bribesorpayoffsmayviolatetheU.S.ForeignCorruptPracticesAct(FCPA).〞Tolearnwhatisacceptableandwhatisnot,
visittheFCPAEnforcementWebsite.5-16Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallSalesManagerasRoleModelAsalesperson’sactionsoftenmirrorthoseofthesalesmanagerSalesmanagersareresponsibleforinterpretingcompanypolicyValuessuchasintegrity
andhonestymustreceiveconstantmanagersupport5-17Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallPersonalValuesValuesaredeeppersonalbeliefsandpreferences,representingtheultimatereasonspeoplehaveforactingastheydoValuesserveasfoundationsforourattitudesAttitudesserveasfoundationsforourbehavior5-18FIGURE5.3Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallWhenValuesConflictYouhavethreebasicchoices:IgnoretheinfluenceofyourvaluesandengageintheunethicalbehaviorVoicestrongoppositiontothepracticethatisinconflictwithyourvaluesystemRefusetocompromiseyourvaluesandbepreparedtodealwiththeconsequences5-19Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallSellingwithIntegrity5-20RonWillinghamsaysasalesperson’sethicsandvaluescontributemoretosalessuccessthandotechniquesandstrategies.Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallLaws,Contracts,andAgreementsLegalenvironmentplaysaroleinpreventingunethicalbehaviorCooling-offlawsUniformCommercialCode—lawinfluencingbuyer-sellertransactionsOralandwrittencontractsBeyondtheletterofthelaw5-21Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallTheUniformCommercialCode5-22TABLE5.1Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallDevelopaPersonal
CodeofEthicsSomegeneralguidelines:PersonalsellingmustbeviewedasanexchangeofvalueRelationshipcomesfirst,taskssecondBehonestwithyourself
andothers5-23Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallExercisingCarewithCRMDataCRMsoftwareallowsstorageoftransactiondataandpersonalinfoRecordfacts,notopinionsorconclusionsCRMdatais“mobile〞andotherpeoplemayseeoruseitDonotstoreanythingyoudonotwantthecustomertosee5-24Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallTheTrustFactorIntransactionalsales,thefocusisontrustintheproductInconsultativesales,thefocusisontrustinthesalespersonInstrategicalliancesales,thefocusisontheothercompanyanditsvalues5-25Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallEthicalandLegalIssuesin
InternationalBusinessCultureIssuesSumtotalofbeliefs,values,knowledge,ethniccustoms,andobjectsthatpeopleusetoadapttotheirenvironmentCulturalbarrierscanimpedeacceptanceinforeigncountriesandinterpersonalrelationships5-26Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallEthicalandLegalIssuesin
InternationalBusinessLegalIssuesDoingbusinessinglobalmarketplacescontinuestobeaminefieldTheForeignCorruptPracticesActprohibitsU.S.companiesfromusingbribesorkickbacksHighethicalstandardsdependonstrongmanagementleadership5-27Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallEthicalandLegalIssuesin
InternationalBusiness5-28Copyright©2021PearsonEducation,Inc.PublishingasPrenticeHallSeetheWebsiteTheInternationalBusinessEthicsInstitutebelievesU.S.companieshavebeenaverypositiverolemodelfortherestoftheworld.
KeyConcept
DiscussionQuestions
Describeh
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