,CHAPTER,5,Ethics: The Foundation for Relationships in Selling,Learning Objectives,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,Describe how ethical decisions influence relationships in selling Discuss factors that influence character development Describe the factors that influence the ethical conduct of sales personnel,5-2,Learning Objectives,Discuss guidelines for developing a personal code of ethics Describe ethical and legal issues in international business,5-3,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,Making Ethical Decisions,Business ethics: principles and standards that guide behavior in the world of business They help translate your values into appropriate and effective behaviors No one uniform code of ethics for all salespeople, but many businesses, professional associations, and certification agencies have established written codes,5-4,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,Making Ethical Decisions,Character and integrity strongly influence relationships in personal selling Your character is based on your internal values Character is based on your internal values and the resulting judgments Ethical decisions you make reflect your character strength,5-5,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,Code of the National Association of Sales Professionals,5-6,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,Character Development,Colleges and universities are beginning to play a more active role in character development Courses that focus on ethics are becoming quite common Despite a growing interest in business ethics, unethical behavior has become all too common,5-7,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,Half-Truths Influencing the Erosion of Character,We are in it only for ourselves Corporations exist to maximize shareholder value Companies need to be lean and mean,5-8,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,The National Business Ethics Survey,5-9,See the Website,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,Factors Determining Ethical Behavior of Salespeople,5-10,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,Management as Role Model,Ethical standards filter down from the top Organizations moral tone, set by management, is most important determinant of employee ethics Managers must infuse ethical values in subordinates,5-11,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,Timberland,5-12,Timberland CEO Jeffrey Swartz proudly points out the companys slogan: “Boots, Brand, Belief.”,See the Website,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,Company Policies and Practices,Company policies and practices can have a major impact on conduct Developing ethical policy statements forces company to take a stand Policies should include distributor relations, customer service, pricing, product development, etc.,5-13,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,Trust and Integrity: The St. Paul,5-14,See the Website,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,Additional Policy Areas,Sharing confidential information Reciprocity Bribery Gift giving Entertainment Business defamation Use of the Internet,5-15,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,International Bribery: Where Do You Draw the Line?,The text states:“Salespeople who sell products in foreign markets need to know that giving bribes is viewed as an acceptable business practice in some cultures. However, bribes or payoffs may violate the U.S. Foreign Corrupt Practices Act (FCPA).” To learn what is acceptable and what is not, visit the FCPA Enforcement Website.,5-16,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,Sales Manager as Role Model,A salespersons actions often mirror those of the sales manager Sales managers are responsible for interpreting company policy Values such as integrity and honesty must receive constant manager support,5-17,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,Personal Values,Values are deep personal beliefs and preferences, representing the ultimate reasons people have for acting as they do Values serve as foundations for our attitudes Attitudes serve as foundations for our behavior,5-18,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,When Values Conflict,You have three basic choices: Ignore the influence of your values and engage in the unethical behavior Voice strong opposition to the practice that is in conflict with your value system Refuse to compromise your values and be prepared to deal with the consequences,5-19,Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall,Selling with Integrity,5-20,Ron Willingham says a salespersons ethics and values contribute more to sales success than do techniques and strategies.,