Module 2

Trust and Selling Ethically

What’s Happening?

http://www.youtube.com/watch?v=RGJdNPiWZzQ

Question

You have the opportunity to steal/take $100,000 from your company with absolute certainty that you would not be detected or caught. Would you do it? Why or why not?

CustomerOriented

Expertise

Dependability

Compatibility

Candor

Trust - Components

Why is Trust Important?

A fundamental competitive strategy of a growing number of organizations is to build long-term mutually beneficial relationships with their customers and other stakeholders. The ability of those organizations’ salespeople to earn their customers’ trust is essential to the success of that strategy.

Moral Standards

Ethics are moral standards by which actions and situations can be judged Honesty Fairness Trust

Case discussion: How Low Will You Go?

What are the issues in the case? What should Bob do? What are some

possible consequences?

Discussion Questions

Why do salespeople need to concern themselves with ethical issues? Isn’t it enough to understand and operate within the law?

Ethics

Ethics refers to right and wrong conduct of individuals and institutions of which they are a part.

Clearly Wrong

Clearly Right

Ethical Dilemma

Ethical Work Climate Exercise

Exercise: Ethical Selling Dilemma?

How an Organization can help!

Codes of Ethics

Corporate benefits: Allow salespeople to identify what their firm recognizes as

acceptable business practices Help salespeople to inform others that they intend to conduct

business in an ethical way Can be an effective internal control of behaviour Generate greater drive and effectiveness in employees Allow a company to attract high caliber people more easily Help salespeople avoid confusion in determining what is

ethical Page 46, Exhibit 2.5 is an example of the American Marketing

Association’s Code of Ethics

Codes and Performance

Does the behaviour or result achieved comply with… 1. organizational standards of behaviour as

specified in the code of ethics?

2. professional standards of behaviour as specified in an industry code?

3. all applicable laws, regulations, or government codes?

How Sales Organizations CanSupport Ethical Practices Follow steps provided by the Federal and

Provincial Guidelines

Establish and enforce ethical codes

Provide seminars and training in ethics

Consult ethics advisors

Areas of Unethical Behavior

ExaggerateWithholdDeceiveHustleScamBluff

Deceptive PracticesMisuse Company

AssetsDefraud

Con

Illegal Activities

PushyHard Sell

Fast TalkingHigh Pressure

Non-Customer-Oriented Behavior

Issues Surrounding Ethical Standards Standards are: Personal and subjective In many cases people “justify” their actions May be dependent upon selling approach and

an organization’s ethical standards and practices.

Are ethics situational?

What is right? What is wrong?

Values congruity is a level of agreement among different people about the values that are important

Salespeople interact with many different people Reaching agreement on what is ethical can be

a challenging task

Excuses

Four types of excuses: “I was told to do it”

“Everybody’s doing it”

“My actions won’t make any difference”

“It’s not my problem”

Ethical Conflict

Each party in a sales transaction brings a set of expectations Which set of interests does the salesperson

choose to satisfy—corporate interests or the customers’ interest?

How do the values of the salesperson affect these decisions?

What are the consequences of the various sales alternatives available to the salesperson?

Multiple Business Relationships

The role as a boundary spanner requires salespeople to manage multiple relationships both internally and externally

Salespeople interact with: Their sales managers Other marketing personnel A variety of non-marketing personnel within their

organization (internally) Customers and prospects in the field (externally)

These different relationships can result in various sources of conflict

Three Qualities forEthical Decision-making1. Ability to recognize ethical issues and think

through consequences

2. Self confidence to seek others’ points of view

3. Willingness to make ethical decisions when there’s no obvious solution

Ethical Decision Making Framework

Ethical Situation

Decision Outcomes

Characteristics of theDecision-Maker

Significant Influences

Click on each component

Ethical ProblemsFaced By Salespeople

Bribery Fairness Honesty Price Deception Product Deception

Personnel Decisions Confidentiality Advertising Deception Manipulation of Data Purchasing Decisions