Ethics are the principle
governing the behavior of an
individual or a group. These
principles establish appropriate
behavior, indicating what is
right and wrong.
Examples of difficult situations that salespeople face
• Should you give an expensive Christmas gift to your
biggest customer?
• If a buyer tells you it is common practice to pay off
purchasing agents to get orders in his or her
country, should you do it?
• Is it acceptable to use high-pressure sales approach
when you your product is the best for the customer
needs?
Ethical principles are particularly
important in personal selling. Most
businesses try to develop long-term,
mutually beneficial relationships with their
customers.
Salespeople are the official
representatives of their companies,
responsible for developing and
maintaining these relationships.
CONFLICTING OBJECTIVES
Company Salesperson Customer Objectives
Objectives Objectives
Increase profits Increase Increase profits
compensation
Increase sales Receive recognition Solve problems, satisfy
needs.
Reduce sales cost Satisfy customers Reduce costs
Build long term Build long term Build relationships with
Customer Customer suppliers
relationships relationships
Avoid legal Maintain personal Avoid legal trouble
trouble code of ethics
Low baling is one unethical tactic
that occurs in large sales.
Research shows that a positive
ethical climate is related to job
satisfaction, commitment to the
organization, and intention to
stay among salespeople.
To maintain good relationships with
their companies and customers,
salespeople need to have a clear
sense of right and wrong so that
their companies and customers can
depend on them when questionable
situations arise.
Improper use of company funds and
assets.
The funds and assets of Motorola may not be
used for influential gifts, illegal payments of
any kind or political contributions whether
legal or illegal.
The funds and assets of Motorola must be
properly and accurately recorded on the books
and records of Motorola.
Customer supplier/government relationships
Motorola will respect the confidence of its customers,
Motorola will respect the laws, customs and traditions
of each country in which it operates but, in so doing,
will not engage in any act or course of conduct that
may violate us laws or business ethics. employees of
Motorola shall not accept payments gifts, gratuities or
favors from customers or suppliers.
Salespeople should abide by their own codes of ethics, they
are tempted to avoid difficult ethical choices by developing
"logical” reasons for unethical conduct.
3 choices when a manager asks to engage in activity you
consider unethical.
1) Ignore your personal values and do what your company
asks you to do.
2) Take a stand and tell your employer what you think.
3) Refuse to compromise your principles.
◦ The core principle at work in considering ethics
in professional selling is the principle of
fairness.
◦ The buyer has the right to make the purchase
decision with equal and fair access to the
information needed to make the decisions.
◦ Further, all competitors should a fair access to
the sales opportunity.
Buyers view of an unethical sales behaviors
1. Exaggerate benefits of product.
2. Passes the balme for something he or she did to someone else.
3. Lies about product availability.
4. Misrepresents guarantee.
5. Lies about competition
6. Sells product that people do not need
7. Makes oral promises that are not legally biding
8. Is not interested in customer need.
9. Answers questions even when he or she does not know the correct
answer.
10. Sells hazardous products
