Ethics in Sales Management

Salespeople are boundary spanners in the sense that they work in

the boundary between customer and the company

Four aspects of managing ethics in sales

1) Policies and Rules:
Strong code of ethics to be internalised by all employees
2) Trust and Responsibility:
How far people are trusted and made accountable for their actions
3) Peer Behaviour:
How employees view co-workers as having high standards
4) Bottom line sales emphasis:
Extent to which employees feel pressurized to increase sales, sale
quotas etc.

What is the right thing to do?

Ethical
Responsibility
Do what is
RIGHT and
ETHICAL

Discretionary
Responsibility
Contribute to
the community

Organizations
Responsibilities

Ethical

What am I legally required to do?

Legality doesnt guarantee ethical action

What can I get away with?

Immoral

Economic
Responsibility
Be profitable

Legal
Responsibility
Obey the law

The curious case of Billie Daniels

The argument made by Billie Daniels is that he voluntarily gave bonuses as an added incentive to
increase efficiency. This led to increased turnover-both for the company and the store.

There is no right way of doing something that is fundamentally wrong

Ethical Maturity is reached when salespeople place the moral treatment of others ahead of short term gains

Generally PROHIBITED behaviours in Sales

1)
2)
3)
4)
5)

Bribes/Gifts
Illegal Political Payments
Falsification of Sales Accounts
Violations of secrecy agreements
Misleading Information

Evaluating the ethical status of a business situation

1. Is this sound from a long run point of view?
NO, damage to companys reputation; might face legal action
2. Would I do this to a friend?
3. Would I be willing to have this done to me?
4. Would I want this action publicized in national media?
NO
5. Would I tell others about it?
6. Who is damaged by the action?
Competitors may follow similar practices leading to
degradation of moral standards in the industry