Ethics in Selling

Ethics First... Then Customer Relationships - Chapter 3 of Fundamentals of Selling by Charles M. Futrell. Presented to the students of Tolani Institute of Adipur as a part of their Sales Management Course

1. Sales Management Ethics in Selling Compiled & Presented By: Anuj Sharma Text Book: Fundamentals of Selling – Customers for life through services by Charles M. Futrell (12 th Edition) Pre-Class Reading – Chapter 3 Presented to the students of Tolani Institute of Management Studies

2. We all face Ethical Dilemmas 2 Found a bag full of mone y on the road, would you keep it? Do you tell your teacher that you are sick to bunk lectures? Are you using the company car for personal work? While splitting a Dabeli with your friend do you take the bigger half?

3. “Ethics is what you do when no one is looking.” George Bernard Shaw 3

4. “Ethics must begin at the top of an organization. It is a leadership issue and the Chief Executive must set the example.” Edward Hennessy 4

5. Management’s Social Responsibilities 5 Distinguishing right from wrong & doing the right thing. Being a good corporate citizen. Responsibility towards their stakeholders

6. Who are the stake holders? 6 CCC GOMES

7. What are the Responsibilities? 7

8. What influences Ethical Behaviour? 8 Individual Influences An individual’s personal moral and ethical values. Organizational Influences Integrity of top management & managers.

9. Levels of Moral development 9 Level 1: Principled – “What is the right thing to do?” Level 2: Conventional – “What am I legally required to do?” Level 3: PreConventional – “What can I get away with?” Level 2 Level 3 Level 1

10. But everyone is doing it, that makes it right, right?! 10 “Wrong is wrong even if everyone is doing it; Right is right even if no one is doing it. ” ~ Augustine of Hippo

11. Three Guidelines for making Ethical Decisions 11 Never changing. Fixed point of reference. Correct action to take in any situation and never gets tailored to fit an occassion . Separate from you. Otherwise you will be changing the rules based upon your interest.

12. What is ethical behaviour? 12 Being honest and truthful. Maintaining confidence and trust. Following the rules. Conducting yourself in the proper manner. Treating others fairly. Demonstrating loyalty to company and associates. Carrying your share of the work & responsibility with 100 percent effort.

13. Many companies & their salespeople get into trouble by making the mistaken assumption that if it’s not illegal, it must be ethical “Ethics are not necessarily to do with being law-abiding. I am very interested in the moral path, doing the right thing .” ~Kate Atkinson 13

14. Ethics in dealing with Salespeople 14 Level of sales pressure Should a manager establish a performance goal that he knows his salesperson has a 50-50 chance of attaining? If the circumstances change in the salesperson’s territory should the manager lower sales goals? Decisions affecting territory Company increases territories by splitting them – a salesperson might have spent years building the territory only to have customers taken away. Company reduces number of territories – putting pressure on sales force. Key accounts made into house accounts. Tell the truth? Not promotable. Marginal Performers. Transfer to poorest territory. The ill salesperson Once the illness has a negative effect on business, take out the salesperson? Employee Rights Under what condition can the salesperson get fired? Privacy of their employment records. Prevent sexual and racial harassment.

15. Salespeople’s Ethics in Dealing with their Employers 15 Misusing company assets Moonlighting Cheating Affecting other salespeople Technology theft

16. Ethic in dealing with customers 16 Bribes Misrepresentation Price Discrimnation Tie-in Sales Exclusive Dealership Reciprocity Sales Restrictions

17. Staying Legal 17 Understand the difference between sales puffery (opinions) and statements of fact. Educate the customer before making a sale about specific qualities of the product. Be accurate when describing a product’s capabilities. Know the technical specifications of the product. Avoid making exaggerated claims about product safety. Know the laws regarding warranties and guaranties. Capabilities & characteristics of your products & services. Keep current on all design changes & revisions. Avoid offering opinions when customer asks about specific results without proper tests or evidence. Never overstep authority.

18. Managing Sales Ethics 18 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

19. My advice to you... 19 If you want to decide if something is ethical or not, just follow these three rules: Rule No. 1: Use your common sense Rule No. 2 : When in doubt, don’t Rule No. 3: If all else fails, refer to Rule No. 1

20. And most importantly... 20 “Do not exchange your dignity for popularity.” ~ Dr. Steve Maraboli

21. Thank You!!! 21 Grazie Gracias Domo Arigato Merci Danke Obrigado Mahalo शुक्रिया