BUSINESS ETHICS & SALE MANAGEMENT
Pressure to Compromise Personal Ethics
Problem of Determining Ethical Standards
Ethical Situation Facing Salespeople/Sales Executive
Establish an Ethical Climate
1. I have solid, well-considered ethical beliefs that
can be altered only by reasoned arguments or new
2. “I have character and integrity that will carry me
though when I face difficult moral choices.”
Definition of Ethics:
‘Moral principles or practices’
‘Professional standards of conduct’
‘Set of belief about what is right and what is wrong’
‘ The science of moral duty ’ or ‘ the science of ideal human
character ‘ (Webster College Dictionary)
Probably the strongest finding from the last decade’s research
in behavioral ethics is that people simultaneously think of themselves
as good people yet frequently lie and cheat (typically in a minor way).
Is this consistent with your experience?
Do you agree or disagree with the following statements from
researchers in the field?
An ethical theory in which individuals are accountable
for fulfilling their civic duty, and the actions of an
individual must benefit the whole of society.
In this way, there must be a balance between economic growth
and the welfare of society and the environment.
A customer asking for information about one of
their competitors, who happens to be one of your
Deciding how much to spend on holiday season
gifts for your customers.
A buyer asking for something special, which you
could easily provide, but aren’t supposed to give
Deciding to play golf on a nice day, since no one
knows if you are actually at work or not
14. To some people because something is illegal does
not mean it is unethical
Need to understand that the law cannot possibly
cover & regulate all aspects of life – nor should it
attempt to do so
It is essential to understand the need for a personal
code of conduct
16. • Most of us has our own personal code of
ethics – what we will and will not do
• What happen if you are being pressed
sufficiently hard, do you bend your ethical
• It is easy to be ethical when no hardship is
For executives who
ignore the unethical
activities of their reps,
the consequences are
serious – e.g
Lawsuits, fines, ruined
name a few
18. Most of us believe we act ethically by our
However, ethical standards are set by a
group or a society, not by individuals
Thus, the group/society evaluates what you
as an individual think is ethical
19. Most empirical research indicates that religiosity is
not a significant factor in ethical behavior.
Atheists and religious people tend to say that the
same actions are ethical and unethical.
Have you known good people to do bad things?
21. Most of us believe we act ethically by our own
However, ethical standards are set by a group or a
society, not by individuals
Thus, the group/society evaluates what you as an
individual think is ethical
25. What is ethical climate?
One in which the employees of the
organization believe that typical
organizational practices and procedures
Important for company/organization to
establish an ethical climate
• Take a Long-Run Point of View
• Put guidelines in writing
• Reinforce the ethical climate
• Provide ethical training
Salespeople are, for the most part, caring, ethical
They do face unique ethical challenges because of
their job, including how to handle unethical
requests from customers and making sure that
they know and follow all company policies for
interacting with customers
Sales managers have all the usual management
concerns, such as fair hiring practices.
According to the Federal Sentencing Guidelines,
managers also have to develop policies and
practices that codify ethical behaviors, train
salespeople on the ethics policies, and ensure
that the policies are followed.