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Ethics First... Then Customer Relationships. 2. Chapter. 2. Chapter. Main Topics. Social, Ethical, Legal Influences Management’s Social Responsibilities What Influences Ethical Behavior? Are There any Ethical Guidelines? Management’s Ethical Responsibilities

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Ethics first then customer relationships 1347020

Ethics First...

Then Customer Relationships



Ethics first then customer relationships 1347020



Main topics
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
Main Topics, cont...

  • Salespeople’s Ethics when Dealing with Their Employers

  • 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 responsibilities
Management’s Social Responsibilities

  • 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:





Organizational Stakeholders

  • Owners

  • Managers

  • Employees

  • Suppliers


An organization s main responsibilities
An Organization’s Main Responsibilities Performance

  • Economic - Be profitable.

  • Legal - Obey the law.

  • Ethical - Do what is right.

  • Discretionary - Contribute to community and quality of life.

What influences ethical behavior
What Influences Ethical Behavior? Performance

  • 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?

Ethics first then customer relationships 1347020

Exhibit 2-4: What Is Your Level of Performance

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
Exhibit 2-5: Moral Development PerformanceBell Curve

Are there any ethical guidelines
Are There Any Ethical Guidelines? Performance

  • 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 situation

How do you make your moral right or wrong choices choose one
How Do You Make Your Moral-Right Performanceor 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
Are There Ethical Guidelines? Performance

  • 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 guidelines1
Are There Ethical Guidelines? Performance

  • 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 guidelines2
Are There Ethical Guidelines? Performance

  • Is Your Conscience Reliable?

    • We all have an internal constant standard with which we measure right and wrong, a “moral compass.”

    • 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 guidelines3
Are There Ethical Guidelines? Performance

  • 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 guidelines4
Are There Ethical Guidelines? Performance

  • 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
To Have Ethical Guidelines You Need Performance

  • 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
The Fixed Point of Reference Must Be: Performance

  • 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
How Do You Know If What Someone Is Saying is True Or Not? Performance

  • 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 truth.

  • 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
Exhibit 2-6: What Is a Fixed PerformancePoint 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
Will The Golden Rule Help? Performance

  • 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 changes?

Exhibit 2 7 examples of world religions which embrace the golden rule
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.”

Management s ethical responsibilities
Management’s Ethical Responsibilities Golden Rule

  • 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 wrong.

  • Ethical behavior refers to treating others fairly.

What is an ethical dilemma
What is an Ethical Dilemma? Golden Rule

  • A situation in which each alternative choice or behavior has some undesirable elements due to potentially negative ethical or personal consequences.

Ethics in dealing with salespeople
Ethics in Dealing with Salespeople Golden Rule

  • Five ethical considerations faced by sales managers:

    • 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
Benefits of Respecting Golden RuleEmployees Rights

  • More productive employees

  • Attracting good sales personnel

  • Reducing legal costs

  • Reducing wage increase demands

Salespeople s ethics in dealing with their employers
Salespeople’s Ethics in Dealing with Their Employers Golden Rule

  • Misusing company assets

  • Moonlighting

  • Cheating

  • Affecting other salespeople

  • Technology theft

Ethics in dealing with customers
Ethics in Dealing with Customers Golden Rule

  • 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 customers1
Ethics in Dealing with Customers Golden Rule

  • 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
The International Side of Ethics Golden Rule

  • Guidelines for conducting international business may be different or even nonexistent

  • 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
Managing Sales Ethics Golden Rule

  • 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
Ethics in Business and Sales Golden Rule

  • 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
Helpful Hints to Making Golden RuleCareer Decisions

  • Your employer should provide worthwhile products.

  • 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
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 character?

  • Foundation based upon service?

  • Cornerstone love of people?

Ethics first then customer relationships 1347020

T Employer’s...











Exhibit 2-11: The Tree of Business Life’s Roots and Frame Based Upon Truth

The Tree is rooted in:

  • Integrity: being honest and without compromise or corruption

  • From integrity flows confidence that one can trust the other

  • Integrity and trust form the attributes often referred to as character

    Framed by:

  • Ethical Service that Builds True Relationships

    Shown with T’s standing for:

  • Truth: facts needed to make ethical and moral decisions




T r u e





Golden rule tree of life

T Employer’s...














T r u e


Golden Rule + Tree of Life

  • Measure the growth of your Business Tree of Life with your Golden Rule of Personal Selling.




Ethics rule business
Ethics Rule Business Employer’s...

Summary of major selling issues
Summary of Major Selling Issues Employer’s...

  • 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 cont
Summary of Major Selling Issues, cont… Employer’s...

  • 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.