Sales Management Social, Ethical, and Legal Responsibilities of Sales Personnel Social, Ethical, and Legal Responsibilities of Sales Personnel

Sales ManagementSales Management

Social, Ethical, and Social, Ethical, and Legal Responsibilities Legal Responsibilities of Sales Personnelof Sales Personnel


Management’s Social Management’s Social ResponsibilitiesResponsibilities

Organizational StakeholdersOrganizational Stakeholders CustomersCustomers CommunityCommunity CreditorsCreditors GovernmentGovernment OwnersOwners ManagersManagers EmployeesEmployees SuppliersSuppliers


Management’s Social ResponsibilitiesManagement’s Social Responsibilities

Economic ResponsibilitiesEconomic Responsibilities Produce Goods and ServicesProduce Goods and Services Maximize ProfitsMaximize Profits

Legal Responsibilities•Fulfill their Economic Goals Within a Legal Framework


Management’s Social ResponsibilitiesManagement’s Social Responsibilities

Ethical ResponsibilitiesEthical Responsibilities Act with Equity, Fairness & ImpartialityAct with Equity, Fairness & Impartiality Respect the Rights of IndividualsRespect the Rights of Individuals

Discretionary Responsibilities

•Voluntary & Guided by Company’s

•Desire to Make Social Contributions


Management’s Ethical Management’s Ethical ResponsibilitiesResponsibilities

““Ethics”Ethics” A set of moral principles A set of moral principles

and values that governs and values that governs the behavior of a person or the behavior of a person or a group with respect to a group with respect to what is right and wrong.what is right and wrong.



What is an Ethical Dilemma?What is an Ethical Dilemma? There is no uniform codification of There is no uniform codification of

ethics so differences and dilemmas ethics so differences and dilemmas about proper behavior can occur.about proper behavior can occur.

A situation when all of the choices A situation when all of the choices for a solution to a problem have for a solution to a problem have some element that could create some element that could create negative ethical or personal negative ethical or personal consequences.consequences.



What is Ethical Behavior?What is Ethical Behavior? Being honestBeing honest Maintaining confidence and trustMaintaining confidence and trust Following the rulesFollowing the rules Conduct yourself in proper Conduct yourself in proper

mannermanner Treat others fairlyTreat others fairly Loyalty to company and associatesLoyalty to company and associates Carry your share - 100% effortCarry your share - 100% effort

Sales ManagementSales ManagementManagement’s Ethical Management’s Ethical

ResponsibilitiesResponsibilities

Company to Salesperson Company to Salesperson dilemmas:dilemmas:Level of Sales PressureLevel of Sales Pressure

Setting Sales Goals Setting Sales Goals (realistic/obtainable)(realistic/obtainable)

Management StyleManagement Style

Sales ManagementSales ManagementManagement’s Ethical Management’s Ethical

ResponsibilitiesResponsibilities

Company to Salesperson Company to Salesperson dilemmas:dilemmas: Territorial DecisionsTerritorial Decisions

Expanding TerritoriesExpanding Territories Decreasing TerritoriesDecreasing Territories Creating House AccountsCreating House Accounts

Sales ManagementSales ManagementManagement’s Ethical ResponsibilitiesManagement’s Ethical Responsibilities

Company to Salesperson dilemmasCompany to Salesperson dilemmas ::To Tell The Truth?To Tell The Truth?

PerformancePerformance At TerminationAt Termination

The Ill SalespersonThe Ill Salesperson Alcohol or Drug Abuse Alcohol or Drug Abuse

TreatmentTreatmentEmployee RightsEmployee Rights



Company to Salesperson Company to Salesperson dilemmasdilemmas ::Employee RightsEmployee Rights

Termination-at-willTermination-at-will PrivacyPrivacy Sexual HarassmentSexual Harassment

Sales ManagementSales ManagementManagement’s Ethical ResponsibilitiesManagement’s Ethical Responsibilities

Company to Salesperson dilemmasCompany to Salesperson dilemmas ::Reason to Respect Employee Reason to Respect Employee RightsRights

High quality of work lifeHigh quality of work life Attracting/Retaining good peopleAttracting/Retaining good people Avoid costly back-pay and awardsAvoid costly back-pay and awards Establish balance between employee Establish balance between employee

and employer rights/obligationsand employer rights/obligations

Sales ManagementSales ManagementSalesperson’s Ethical ResponsibilitiesSalesperson’s Ethical Responsibilities

Salesperson ethics re: The CompanySalesperson ethics re: The CompanyMisuse of Company AssetsMisuse of Company Assets

AutomobilesAutomobiles Expense AccountsExpense Accounts SamplesSamples Damaged merchandise creditsDamaged merchandise credits

MoonlightingMoonlighting

Sales ManagementSales ManagementSalesperson’s Ethical ResponsibilitiesSalesperson’s Ethical Responsibilities

Salesperson ethics re: The CompanySalesperson ethics re: The CompanyCheatingCheating

ContestsContests Holding SalesHolding Sales Overloading CustomerOverloading Customer

Affecting Fellow SalespeopleAffecting Fellow Salespeople Taking CustomersTaking Customers

Sales ManagementSales ManagementManagement’s & Salesperson’s Management’s & Salesperson’s

Mutual Ethical ResponsibilitiesMutual Ethical Responsibilities

How to Treat The CustomerHow to Treat The CustomerBribes or GiftsBribes or Gifts

OfferingOffering Buyer OriginatedBuyer Originated

MisrepresentationMisrepresentation ““Sales Puff” vs. Statements of Sales Puff” vs. Statements of

FactFact Legal RamificationsLegal Ramifications



How to Stay LegalHow to Stay Legal Know capabilities and characteristics Know capabilities and characteristics

of of company products and servicecompany products and service Statements of Praise vs. Statements Statements of Praise vs. Statements

of Factof Fact Educate Customers before the SalesEducate Customers before the Sales State Product Capabilities AccuratelyState Product Capabilities Accurately Know Technical SpecificationsKnow Technical Specifications

Sales ManagementSales ManagementManagement’s & Salesperson’s Mutual Management’s & Salesperson’s Mutual

Ethical ResponsibilitiesEthical Responsibilities

How to Stay LegalHow to Stay Legal Avoid Exaggerated Product Safety Avoid Exaggerated Product Safety

ClaimsClaims Know Federal and State LawsKnow Federal and State Laws Keep Current with Design Changes and Keep Current with Design Changes and

RevisionsRevisions Avoid Opinions Stick to Testing Avoid Opinions Stick to Testing

StatisticsStatistics Never Overstep Authority (Pricing or Never Overstep Authority (Pricing or

Policy)Policy)



How to Treat The CustomerHow to Treat The CustomerPrice DiscriminationPrice Discrimination

Customers who buy similar Customers who buy similar quantities should receive quantities should receive same pricingsame pricing

Tie-in SalesTie-in Sales Violates Clayton Antitrust ActViolates Clayton Antitrust Act



How to Treat The CustomerHow to Treat The CustomerExclusive DealershipExclusive Dealership

Purchase from one Purchase from one manufacturer - Clayton Actmanufacturer - Clayton Act

ReciprocityReciprocity ““I’ll Buy Yours If You’ll Buy I’ll Buy Yours If You’ll Buy

Mine”Mine” FTC and Justice ScrutinizeFTC and Justice Scrutinize



How to Treat The CustomerHow to Treat The CustomerSales RestrictionsSales Restrictions

““Cooling Off” Laws - 3 daysCooling Off” Laws - 3 days Green River OrdinancesGreen River Ordinances

Sales ManagementSales ManagementInternational Ethical IssuesInternational Ethical Issues

U.S. Laws Do Not Stop at The BorderU.S. Laws Do Not Stop at The Border Employees of American Employees of American

Business Should Know the Business Should Know the LawLaw

Stick to Features and Stick to Features and Benefits and Sell to Benefits and Sell to Companies Not IndividualsCompanies Not Individuals

Sales ManagementSales ManagementSelling EthicsSelling Ethics

Surveys Indicate Managers’ ExperienceSurveys Indicate Managers’ Experience

Most Managers:Most Managers: Face Ethical ProblemsFace Ethical Problems Believe Managers and Believe Managers and

Employees Should Be More Employees Should Be More EthicalEthical

Are More Ethical with Friends Are More Ethical with Friends than Strangersthan Strangers

Lower Ethics to Meet Job GoalsLower Ethics to Meet Job Goals


Surveys Indicate Managers’ Surveys Indicate Managers’ ExperienceExperience

Most Managers:Most Managers: Are Aware of Ethical Issues in Are Aware of Ethical Issues in

Industry and CompanyIndustry and Company

Believe Ethics Can Be affected Believe Ethics Can Be affected by Supervisors and Company by Supervisors and Company EnvironmentEnvironment


Management Practices Help Management Practices Help ResponsivenessResponsiveness

Some Guidelines:Some Guidelines: Top Management Takes LeadTop Management Takes Lead

CEO, President, Vice Presidents CEO, President, Vice Presidents Must ChampionMust Champion

Carefully Select LeadersCarefully Select Leaders Establish/Follow Code of EthicsEstablish/Follow Code of Ethics



Some Guidelines:Some Guidelines: Establish/Follow Code of EthicsEstablish/Follow Code of Ethics

Principle BasedPrinciple Based Policy BasedPolicy Based

Create Ethical StructuresCreate Ethical Structures Ethical CommitteeEthical Committee Ethical OmbudsmanEthical Ombudsman



Some Guidelines:Some Guidelines: Encourage Whistle BlowingEncourage Whistle Blowing

““Silent Witness” ProgramSilent Witness” Program

Create Ethical Sales Create Ethical Sales EnvironmentEnvironment

Actions of Top-Level ManagersActions of Top-Level Managers



Some Guidelines:Some Guidelines: Establish Control SystemsEstablish Control Systems

Low Bid Review ProcessLow Bid Review Process Expense Report AuditsExpense Report Audits

Documents

Sales Management Social, Ethical, and Legal Responsibilities of Sales Personnel Social, Ethical, and Legal Responsibilities of Sales Personnel