Relationship selling through service mkt 173 chap 2

Ethics First…Then Customer Relationships McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc All Chapter 2-3 Chapter Main Topics       2-4 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 Chapter Main Topics  Salespeople’s Ethics when Dealing with Their      2-5 Employers Ethics in Dealing with Customers The International Side of Ethics Managing Sales Ethics Ethics in Business and Sales The Tree of Business Life Chapter Social, Ethical, and Legal Influences  An organization’s environment is a major influence on   how the firm sells its products Due to the environmental turmoil in the world of commerce, this chapter is arguably the most important in the entire book Begin by asking, “Does an organization have any responsibilities to society?” Exhibit 2-1 on an have a Social, Ethical, and organization’s marketing effect Legalpowerful (SEL) influences program! 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: Owners  Customers Managers  Community Employees  Creditors Suppliers  Government  CCC GOMES Exhibit 2-2: Major Stakeholders in the Organization’s Performance (CCC GOMES) Customers S uppliers Employees C ommunity Organization Managers Creditors G overnment O wners Ethics in Dealing with Customers, cont…  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  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  All managers feel they face ethical problems  Most managers feel their employees need to be more   ethical Managers are more ethical with their friends than with people they know Even though they want to be more ethical, some managers lower their ethical standards to meet their goals Managing Sales Ethics, cont  Managers are aware of unethical practices in their  industry and company ranging from pricing discrimination to hiring discrimination Business ethics can be influenced by an employee’s superior and the company’s environment Managing Sales Ethics, Exhibit 2-12: Top-Level Management Sets the Climate for Ethical Behavior        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  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       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 Look for a calling, not a job.* 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 2-13: What Do You Look for in an Employer? FUTRELL CORPORATION Preparing People for the 21st Century Exhibit 2-14: The Tree of Business Life True Et h ic al ce rvi Se T T T T T TT T T T T Builds Relationships T C I 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 Tree of Life + Golden Rule True Et h ic al ce rvi Se T T T T T TT T T T T Builds Relationships T C I  Measure the growth of your Business Tree of Life with your Golden Rule of Personal Selling Ethics Rule Business Customer 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 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 End of Chapter McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc All Chapter ...Ethics First…Then Customer Relationships McGraw-Hill/Irwin Copyright © 20 07 by The McGraw-Hill Companies, Inc All Chapter 2- 3 Chapter Main Topics       2- 4 Social, Ethical, Legal Influences... Ethical Responsibilities Ethics in Dealing with Salespeople Chapter Main Topics  Salespeople’s Ethics when Dealing with Their      2- 5 Employers Ethics in Dealing with Customers The International... world of commerce, this chapter is arguably the most important in the entire book Begin by asking, “Does an organization have any responsibilities to society?” Exhibit 2- 1 on an have a Social,