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FUNDAMENTALS OF SELLING Customers For Life Through Service 12 th Edition Charles M. Futrell. Ethics First…Then Customer Relationships. 3. Chapter. Chapter. 3. 3. Chapter. Management’s Social Responsibilities.

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Customers For Life Through Service

12th Edition

Charles M. Futrell




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
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:





  • Owners
  • Managers
  • Employees
  • Suppliers
an organization s main responsibilities
An Organization’s Main Responsibilities

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?

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 3.4: 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?”
are there any ethical guidelines
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 situation

how do you make your moral right or wrong choices choose one
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


are there ethical guidelines
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 guidelines1
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 guidelines2
Are There Ethical Guidelines?

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?

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?

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

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:

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?

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 3 6 what is a fixed point of reference
Exhibit 3.6: 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
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?”

Would you consider your faith a fixed point that is separate from you and never changes?

exhibit 3 7 examples of world religions which embrace the golden rule
Exhibit 3.7: 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

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?

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

Five ethical considerations faced by sales managers:

Level of sales pressure

Decisions affecting territory

To tell the truth?

The ill salesperson

Employee rights



sexual harassment

benefits of respecting employees rights
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
Salespeople’s Ethics in Dealing with Their Employers

Misusing company assets



Affecting other salespeople

Technology theft

ethics in dealing with customers
Ethics in Dealing with Customers



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

Exclusive dealership


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

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

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

helpful hints to making career decisions
Helpful Hints to Making Career 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?













Exhibit 3.11: The Tree of Business Life

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
Golden Rule + Tree of Life















T r u e


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