Marketing chapter 2a ethics first

2 Chapter Ethics First Then Customer Relationships McGraw-Hill/Irwin ABC’s of Selling, 10/e Copyright © 2009 by The McGraw-Hill Companies, Inc All rights reserved Chapter 2-2 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 2-3 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 2-4 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 2-5 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  Community  Creditors  Owners  Government  Managers  Employees  Suppliers  CCC GOMES 2-6 Exhibit 2-2: Major Stakeholders in the Organization’s Performance 2-7 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 2-8 Exhibit 2-3: An Organization’s Main Responsibilities 2-9 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? 2-10 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 2-27 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 2-28 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  termination-at-will  privacy  sexual harassment 2-29 Benefits of Respecting Employees Rights  More productive employees  Attracting good sales personnel  Reducing legal costs  Reducing wage increase demands 2-30 Salespeople’s Ethics in Dealing with Their Employers  Misusing company assets  Moonlighting  Cheating  Affecting other salespeople  Technology theft 2-31 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 2-32 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 2-33 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 2-34 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 2-35 Helpful Hints to Making Career Decisions  Your employer should provide worthwhile products  You should be able to what is right  You not have to compromise your beliefs  People go before anything else  Good people are desperately needed in all types of businesses/organizations 2-37 Exhibit 2-10: What Do You Look for in an Employer? 2-38 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? 2-39 Exhibit 2-11: The Tree of Business Life’s Roots and Frame Based Upon Truth The Tree is rooted in: T T T ce rvi Se Et hi c al T T T T T T T Builds T  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 True character Framed by:  Ethical Service that Builds True Relationships Shown with T’s standing for: Relationships T I  Truth: facts needed to make ethical and moral decisions C 2-40 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 2-43 Summary of Major Selling Issues, cont…  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 2-44 ... Responsibilities  Ethics in Dealing with Salespeople 2-3 Main Topics, cont  Salespeople’s Ethics when Dealing with Their Employers  Ethics in Dealing with Customers  The International Side of Ethics. .. Employers  Ethics in Dealing with Customers  The International Side of Ethics  Managing Sales Ethics  Ethics in Business and Sales  The Tree of Business Life 2-4 Management’s Social Responsibilities... demands 2-30 Salespeople’s Ethics in Dealing with Their Employers  Misusing company assets  Moonlighting  Cheating  Affecting other salespeople  Technology theft 2-31 Ethics in Dealing with