Ethics, the Law,.ppt

7/29/2019 Ethics, the Law,.ppt

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Ethics, the Law,

and Sales Leadership

Topic


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Learning Objectives

Identify the more common ethical dilemmas

Distinguish between organizational policiesand practices that support ethical behavior

and those that enable unethical behavior Explain how principled leadership can foster

ethical principles and corporate culture

Develop an appropriate course of action whenyoure personally faced with an ethicaldilemma


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Who Exaggerates Least?

Professional salespeople?

Preachers?

Politicians? Professors?

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In a study where people were asked about their own

knowledge, skills, and abilities


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Approaches to Ethics

Approach Summary Pros and Cons

Golden Rule Treat others as youwould like to betreated

Personalizes ethical decisions, making it easy todetermine what to do

Fails to account for situations in which others are inconflict

Conventionalist Acts are OK as long as

its legal or if everyoneis doing it

Fails to account for gray areas, in which acts are not

specified as either legal or illegal

Protestant Ethic Do what you can,defend to a committeeof peers

Whats ethical is based on the intended, not actual,outcome

Can lead to more concern about doing what can bedefended than what is right

Market ImperativeApproach

The market willdetermine what is right

Provides clear responsibilities for individuals

Can devolve into might is right scenario

Libertine Ethic Do what you want, aslong as no one getshurt

Outcomes are important, and a responsibility for others isassumed

Can lead to problems when others are harmed indirectlyor harm is not obvious

Utilitarian Ethic Do what has the bestoutcome for allinvolved

Outcomes, and honorable intent, are important; requirestaking responsibility for others

Its unclear who gets to decide what outcomes are best


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The Golden Rule

Do unto others as you would have them do

unto you

Challenge: there are multiple others, and

their needs or wants conflict

Weakness: assumes that the way you want to

be treated is the way others want to be

treated


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The Conventionalist Approach

Suggests that people should takeany and all actions allowed bylaw or by convention Everybodys doing it, so it must

be okay

Do it until they say you cant

It is easier to ask forgiveness than permission

Weakness: doesnt consider whats ethical and

not ethical

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The Protestant Ethic

Could I satisfactorilyexplain this choice to acommittee of my peers?

Weakness: pick the rightcommittee, and you can

probably explain awayanything

Weakness: intent is more important than actions

Providing evidence of honorable intent can be difficult

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The Market Imperative

The market requires a person to act in his or her own bestinterest

Based on Adam Smiths classical economics approach to capitalism

The salesperson works for the organization, and the

organizations needs come first Counter-argument: corporation is an entity granted the right

to exist by society, so the corporation must be governed bywhat is best for society in addition to maximizing shareholderwealth

What is best for society must balance the interests of the differentpeople within it, shareholders, employees, and customers alike

Smith might say these groups should fight it out


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The Libertine Ethic

Individual freedom: oneshould be free to do whateverone wants, as long as no oneelse gets hurt Customers should be free to

make their own decisions

Weakness: identifies only thetwo parties in the transaction

as being important; conflictsamong other groups are rarelyconsidered or resolved


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The Utilitarian Ethic

Do the positive consequences outweigh the

negative consequences?

Weakness: who gets to decide the value of the

positive and negative outcomes?


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The Salesperson as

a Boundary Spanner

Boundary spanner: operates both outside of

and within an organizations boundaries

Work within their company but also work with

customers outside the company

Because salespeople are boundary spanners,

they encounter ethical dilemmas externally

with customers and internally with other

employees


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Who Does the Salesperson Represent?

The Company The CustomerThe Salesperson


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Ethics in Sales Management:

Done Right

Salesperson Dave made it clear that while

Laura worked for Travelocity, he worked for

both her and the company

Collaboration and respect made them a

successful team

When sales is done right, friendships can

develop and great things can be accomplished


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Common Ethical Issues between

Customers and Their Salespeople

Misrepresentation Salesperson exaggerates benefits or minimizes

problems, leading a customer to draw erroneousconclusions

Bribery Salesperson attempts to influence a buyer unfairly by

offering a gift or money

Privacy

Salesperson fails to protect the privacy of another customerby giving the customers confidential information toanother customer

Salesperson invades the customers privacy with spam orunwanted calls


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Ethical Issues Associated with the

Salespersons Company

Stealing Salesperson fails to work a full day, stealing time

Salesperson pads expense accounts

Claiming

Credit

Salesperson steals other peoples leads

Salespeople misrepresent location of customerto receive credit for an order belonging to someoneelse

Sexual

Harassment

Salesperson experiences unwanted sexual offers orinappropriate physical contact


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Creating an Ethical Sales Climate

Code of Ethics

Supports Salespeoples intentions to remain ethical, offering

salespeople an out when under pressure

Helps Salespeople inform others that they intend to conduct

business in an ethical manner

Provides Salespeople and other employees with guidelines and

standards for conduct

Attracts High-quality salespeople


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Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall.

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Identifying and Responding to

Ethical Breaches

Encourage

Whistle-Blowing

Use Technology

to Identify

Questionable

Activities


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Due Process Systems for Responding

to Ethical Breaches

Mediator/

Counselor

Manager investigates, leads discussions, builds consensusabout potential guilt of accused person and need for changesin organizations practices or policies

Grievance &Arbitration

Guilt and punishment investigated and discussed byprogressively higher levels of management and labor

Investigation &

Punishment

Upper manager investigates potential violations, determinesguilt, and assesses punishment to the guilty

Employee-

Board

Mediator/Counselor role taken on by board of accusedemployees peers


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Are Managers equally lenient or strict?

When a sales rep acts unethically

High performers tend to be treated leniently

Even when they have acted unethically before

Even when policy does not allow for different treatment

Even when the breach is serious

But the act is the key to the punishment, not the excuse or

reason for the act

Sources: Joe Bellizi 2008, Honoring Accounts of Top Sales Performers and Poor Sales Performers Who Have

Engaged in Unethical Selling Behavior,Journal of Global Issuesand his work from 1997 to 2003

How can a sales leader avoid variety in punishment?


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Dealing Personally

with Ethical Breaches

QuitTake a

Stand

Negotiate an

Alternative

Appear

to Agree


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Laws for Sales Managers

Labor Laws

Fair pay issues, appropriateemployee selection andretention issues

Reporting processes and legalrequirements for sexual

harassment claims

Market Lawsto Promote Fair Competition

Foreign Corrupt Practices Act

Robinson-Patman Act andantitrust acts that forbid pricediscrimination andnoncompeting agreements

Whistle-blower laws

Documents

Ethics, the Law,.ppt