Chapter 2

Building Trust and Sales Ethics

The Ethical Dilemma

Why is Trust Important?

A fundamental competitive strategy of a growing number of organizations is to build long-term mutually beneficial relationships with their customers and other stakeholders. The ability of those organizations’ salespeople to earn their customers’ trust is essential to the success of that strategy.

CustomerOriented

Expertise

Dependability

Compatibility

Candor

Trust - Components

Question

• You have the opportunity to steal/take $100,000 from your company with absolute certainty that you would not be detected or caught. Would you do it? Why or why not?

Moral Standards

• Ethics are moral standards by which actions and situations can be judgedoHonesty o Fairnesso Trust

Case discussion: How Low Will You Go?

• What are the issues in the case?• What should Bob do? What are some

possible consequences?• What would you do if you were a

salesperson in this organization?• Thoughts about the panel?

Ethics

Ethics refers to right and wrong conduct of individuals and institutions of which they are a part.

Clearly Wrong

Clearly Right

Ethical Dilemma

How an Organization can help!

Codes of Ethics• Corporate benefits:

o Allow salespeople to identify what their firm recognizes as acceptable business practices

o Help salespeople to inform others that they intend to conduct business in an ethical way

o Can be an effective internal control of behaviouro Generate greater drive and effectiveness in employees o Allow a company to attract high caliber people more easilyo Help salespeople avoid confusion in determining what is ethicalo Pages 47, 49 Exhibits 2.6 and 2.7 is an example of a professional

salesperson's Code of Ethics

Codes and Performance

• Does the behaviour or result achieved comply with… 1. organizational standards of behaviour as

specified in the code of ethics?

2. professional standards of behaviour as specified in an industry code?

3. all applicable laws, regulations, or government codes?

How Sales Organizations CanSupport Ethical Practices

• Follow steps provided by the Federal and Provincial Guidelines

• Establish and enforce ethical codes

• Provide ongoing seminars and training in ethics

• Have and encourage contact with ethics advisors within the organization

Areas of Unethical Behaviour

ExaggerateWithholdDeceiveHustleScamBluff

Deceptive PracticesMisuse Company

AssetsDefraud

Con

Illegal Activities

PushyHard Sell

Fast TalkingHigh Pressure

Non-Customer-Oriented Behaviour

Issues Surrounding Ethical Standards

Standards are:• Personal and subjective• In many cases people “justify” their actions• May be dependent upon selling approach

and an organization’s ethical standards and practices.

• Are ethics situational?

What is right? What is wrong?

• Values congruity is a level of agreement among different people about the values that are important

• Salespeople interact with many different peopleo Reaching agreement on what is ethical can be a

challenging task (i.e., Case How Low will you Go?)

Excuses

• Four types of excuses:– “I was told to do it”

– “Everybody’s doing it”

– “My actions won’t make any difference”

– “It’s not my problem”

Ethical Conflict

• Each party in a sales transaction brings a set of expectations– Which set of interests does the salesperson

choose to satisfy—corporate interests or the customers’ interest?

– How do the values of the salesperson affect these decisions?

– What are the consequences of the various sales alternatives available to the salesperson?

Multiple Business Relationships• The role as a boundary spanner requires salespeople to

manage multiple relationships both internally and externally

• Salespeople interact with:o Their sales managers

o Other marketing personnel

o A variety of non-marketing personnel within their organization (internally)

o Customers and prospects in the field (externally)

• These different relationships can result in various sources of conflict

Other Significant Influenceson The Salesperson

• The Organization• Work• The Law• Economics• Professionalism• Technology

Three Qualities forEthical Decision-making

1. Ability to recognize ethical issues and think through consequences

2. Self confidence to seek others’ points of view

3. Willingness to make ethical decisions when there’s no obvious solution

Ethical Decision Making Framework

Ethical Situation

Decision Outcomes

Characteristics of theDecision-Maker

Significant Influences