Chp 3 Ethics

7/29/2019 Chp 3 Ethics

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Chapter 3:- Ethics First . . .

Then Customer Relationships


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FLOW OF PRESENTATION

(MAIN TOPICS) Social, Ethical and Legal influences

Managements Social Responsibility

What influences Ethical Behavior?

Are there any Ethical Guidelines?Managements Ethical Responsibilities

Ethics in dealing with sales people

Salespeople Ethics in dealing with theirEmployers

International side of ethics

Managing Sales Ethics


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SOCIAL, ETHICAL AND LEGAL

INFLUENCES

An organizations enviourment is a majorinfluence on how the firm sells its products.

Social responsibility can be difficult concept

to grasp because it is a subjectivephenomenon.

Reason for the difficulty in understanding

Social responsibility is that managers mustconfront the question responsibility towhom?


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SOCIAL, ETHICAL AND LEGAL

INFLUENCES


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MANAGEMENTS SOCIAL

RESPONSIBILITY

Organizations Main Responsibility:-

Economic Responsibility

Legal Responsibility

Ethical Responsibility

Discretionary Responsibility


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Major stakeholders in the

organizations performance

Saleperson


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ECONOMIC RESPONSIBILITY:- BE

PROFITABLE

The business institution is above all the basic

economic unit of society.

Its responsibility is to produce the goods and

services that society wants and to maximize

profits for its owner and shareholders.

Profit provides the capital to stay in business,

to expand, and to compensate for the risk of

conducting business.


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LEGAL RESPONSIBILITY :- OBEY

THE LAW All modern societies lay down ground rules, laws,

and regulations that organizations are expectedto follow.

It defines what society deems as important withrespect to appropriate corporate behavior.

Organizations are expected to fulfill theireconomic goals within the legal framework.

Legal requirements are imposed by local towncouncils, state legislators, and federal regulatoryagencies.


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ETHICAL RESPONSIBILITIES :- BE

ETHICAL. DO WHAT IS RIGHT

It includes behaviors that are not necessarilycodified into law and may not serve thecorporations direct economic interests.

To be ethical organizations decision makersshould act with equity, fairness, andimpartiality, respect the right of individual.

Unethical behavior occurs when decisionsenable an individual or company to gain at theexpense of society.


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DISCRETIONARY RESPONSIBILITIES

It is purely voluntary and guided by acompanys desire to make social contributionsnot mandated by economies , law or ethics.

It include generous philanthropiccontributions that offer no monetary return tothe company and are not expected.

It is the highest criterion of social

responsibility because it goes beyond societalexpectations to contribute to the communityswelfare.


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HOW TO DEMONSTRATE SOCIETAL

RESPONSIBILITY Taking corrective action before it is required.

Working with affected constituents to resolve mutualproblems.

Working to establish industry wide standards and self

regulation. Publically admitting mistakes.

Getting involved in appropriate social programs.

Helping correct environmental problems.

Monitoring the changing social programs.

Establishing and enforcing a corporate code of conduct.

Taking needed public stand on social issue.

Striving to make profits on an ongoing process.


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What Is Ethical Behavior?

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 and responsibility

with 100 percent effort.


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WHAT INFLUENCES ETHICAL BEHAVIOR?

Individual Role

Organizational Role

Individual Role:-

Level 1) Preconvention moral Development

Level 2) conventional moral DevelopmentLevel 3) Principled moral Development


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PRACTISING ETHICS- CONTRADICTION FOR

SALESPEOPLE

Sales managers have both social and ethical responsibilities

towards sales personnel. Yet, occasionally a company may

place managers and/or salespeople in positions that force

them to choose among compromising their ethics, not doing

what is required, or leaving the organization.

The choice depends on the magnitude of the situation. At

times, situations arise wherein it is difficult to say whether a

sales practice is ethical or unethical.


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Managements Decisions that affects

Salespersons.

Level of Sales Pressure

Decisions Affecting Territory

To Tell the Truth?

The iII Salesperson

Employee Rights


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SALESPEOPLES ETHICS IN DEALING WITH

THEIR EMPLOYERS

Misusing Company Assets

Moonlighting

Cheating

Affecting Other Salespeople

Technology Theft


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Numerous ethical situations may arise in

dealing with customers, and sales

organizations may create specific business

conduct guidelines.

Some common problems sales personnel face

include bribes, misrepresentation, price

discrimination, tie-in sales, exclusivedealership, and sales restrictions.

Salesperson-Ethics in dealing with

Customers


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Salesperson-Ethics in dealing with

Customers CONTD Bribes

Unequal gifts

Misrepresentation

Exaggeration on the capabilities of the product

Price Discrimination

Quantity discounts to different buyers.

Tie-in Sales

Pushing non moving goods with moving goods.

Eg: Amul Butter

Exclusive Dealership

Reciprocity


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INTERNATIONAL SIDE OF ETHICS

Guidelines are not same as India

Laws have to follow outside the borders of

country

High ethical standard in US


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7 STEPS FOR MANAGING SALES

ETHICS

1. Top Management taking the lead

Employee always follow Sales, territory Manager

Speeches, Interviews & action need to

communicate ethical values of the organization

2. Carefully Selecting Leaders

Critical process

Highest level of integrity, Skills & Knowledge

require


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ETHICS

3. Establishing & following a Code of Ethics

It is formal statement of company

Eg TATA code of conduct

Principle-based statements values, language,responsibilities, quality of product & treatment ofemployees

egJ&J The Credo Policy-based statements marketing practice,

proprietary information, political gifts

egBoeing Code of Business Ethics


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Boeing Company Policy "Ethical BusinessConduct-sales person pov

Boeing will conduct its business fairly, impartially, in an ethicaland proper manner, in accordance with the company's valuesand Code of Conduct, and in full compliance with all laws andregulations. In the course of conducting company business,integrity must underlie all company relationships, including

those with customers, suppliers, and communities and amongemployees. The highest standards of ethical business conductand compliance are required of Boeing employees inperformance of their company responsibilities.Employeesmust not engage in conduct or activity that may raisequestions as to the company's honesty, impartiality, or

reputation or otherwise cause embarrassment to thecompany. Conduct that is prohibited under Boeing policy ordoes not comply with laws and regulations may not beaccomplished on an employee's behalf by anyone outside thecompany.


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ETHICS

4. Create Ethical Structure Appoint Ethical committee

Ethics Ombudsman official responsibilities givento group who hears & investigates ethics

complaints & inform top management Eg IBM, Xerox & P&G.

5. Encouraging Whistle-Blowing

Encourage salesperson to report unethicalactivity to group.

By toll free no, Silent witness programme


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ETHICS

6. Create ethical Sales Climate ( sales managementresponsibility)

Develop & support Code of Ethics

Ethical awareness during sales meeting, trainingsession

7. Establish Control System ( sales managementresponsibility)

Methods to determine whether salespersongiving bribes, false report


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Nikhil Ambekar (PG-11-003)

Ninad Kalgutkar (PG-11-017)

Snehal Kanase (PG-11-018)

Documents

Chp 3 Ethics