Relationship selling through service mkt 173 chap 2

Main Topics Social, Ethical, Legal Influences  Management’s Social Responsibilities  What Influences Ethical Behavior?.  Management’s Ethical Responsibilities  Ethics in Dealing wit

Ethics First…Then Customer

Main Topics

 Social, Ethical, Legal Influences

 Management’s Social Responsibilities

 What Influences Ethical Behavior?

 Are There any Ethical Guidelines?

 Management’s Ethical Responsibilities

 Ethics in Dealing with Salespeople

Main Topics

 Salespeople’s Ethics when Dealing with Their

Employers

 Ethics in Dealing with Customers

 The International Side of Ethics

 Managing Sales Ethics

 Ethics in Business and Sales

 The Tree of Business Life

Social, Ethical, and Legal Influences

 An organization’s environment is a major

influence on how the firm sells its products

 Due to the environmental turmoil in the world

of commerce, this chapter is arguably the

most important in the entire book

 Begin by asking, “Does an organization have any responsibilities to society?”

S ocial, E thical, and

L egal ( SEL ) influences

have a powerful effect

on an organization’s marketing program!

Exhibit 2-1

Management’s Social

Responsibilities

 Social responsibility is

management’s obligation

to make choices and take

actions that contribute to

the welfare and interests

of society as well as to

those of the organization

Organizational Stakeholders

 A stakeholder is any group inside or outside

the organization that has a stake in the

anagers uppliers

Exhibit 2-2: Major Stakeholders in the Organization’s Performance (CCC GOMES)

C

C C

G O

M E

S

Organization

An Organization’s Main Responsibilities

 Economic - be profitable

 Legal - obey the law

 Ethical - do what is right

 Discretionary -

contribute to community

and quality of life

Exhibit 2-3: An Organization’s Main

Responsibilities

What Influences Ethical Behavior?

 The Individual’s Role

 Level one: Pre-conventional – acts in own best interest

 A few operate here

 Level two: Conventional – upholds legal laws

 Most people operate here

 Level three: Principled – lives by own code

 Fewer than 20% reach level three

 The Organization’s Role

 At best, most employees in firm operate at level two

 How will the situation be handled if no policies and

procedures are in place?

Exhibit 2-4: What Is Your Level of

Moral Development?

 Preconventional - “What can I

get away with?”

 Conventional - “What am I

legally required to do?”

 Principled - “What is the right

thing to do?”

Exhibit 2-5: Moral Development Bell Curve

Are There Any Ethical Guidelines?

American adults said by a 3-to-1 margin that truth

is always relative to a person’s situation

People are most likely to make their moral and ethical decisions based on:

 Whatever feels right

Comfort in a situation

How Do You Make Your Moral-Right or

Wrong Choices? (Choose One)

 Whatever will bring you the most pleasing or satisfying results

 Whatever will make other people happy or minimize interpersonal conflict

 Values taught by your family

 Primarily from religious principles and

teaching or Bible content

 Other

 What if you found a bank bag containing

$125,000? Would you return it to the bank?

 Is it fear of being caught?

 Not the right thing to do?

What Does One Do?

 Out of class, is it okay to copy someone else’s homework assignment?

when the professor is out of the room?

Is it fear of being caught?

Not the right thing to do?

What Does One Do?, cont…

 We all have an internal ultimate moral

standard we use to measure good and evil, right and wrong – some people call that their

“conscience.”

 Most of us know we should return the

$125,000 and not copy someone’s homework

 But what would we actually do?

Is Your Conscience Reliable?

Is Your Conscience Reliable?, cont…

 If a person’s values are at “Level 2,” they may make decisions based on the situation and

what others say and do

Usually people rationalize their decisions; “I’ll

only copy the homework this one time.”

things unethically that they think nothing about it

How Do You Know if What Someone Is

Saying Is True or Not?

 Can there be a moral and ethical standard?

 There is no way for you to know if what I am saying is true unless you know what is the truth, and

 There is no way to know what is the truth

unless there is a truth you can know

Exhibit 2–6: How Do You Know Which Fork in the Road to Take? You Need a Moral Compass!

“When you come to a fork in the road, take it.”

YOGI BERRA

 Factors influencing decisions include friends, family, or things seen on television or in the

movies

 Barna Research has found that the leading

influences on American ethics are movies, TV, the Internet, books, music, public policy, law, and family

Sources of Significant Influence

Three Guidelines for Making Ethical

Decisions

1 Never changes

2 Offers a fixed point of reference

3 Is separate from you

 Stars can be used for navigation because they are a fixed point of reference separate from

you that no one can influence

A Fixed Point of Reference

You need a fixed point of reference separate from you that no one can influence.

The Fixed Point of Reference Must Be:

Believe it or not

Like it or not

Know about it or not

What Is a Fixed Point of Reference?

 A fixed point of reference refers to

something that provides the correct action to take in any situation and never gets tailored to fit an occasion

 How do you know which fork in the road to

take?

Will The Golden Rule Help?

 The “Golden Rule” concept is present in

virtually all faith-based principles

 The Golden Rule does not involve reciprocity

 “Could the Golden Rule serve as a universal, practical, helpful standard for the

businessperson’s conduct?”

 Would you consider your faith a fixed point

that is separate from you and never changes?

Exhibit 2-7: World Religions Embrace the

Golden Rule

 Hindu Mahabharata, “Do naught unto others

what you would not have them do to you.”

 Confucius, “Do not do to others what you

would not like yourself.”

 Buddhist UdanaVarga, - “Hurt not others in

ways that you yourself would find hurtful.”

 Rabbi Hillel, “That which is hateful to you do

not do unto your neighbor.”

 Jesus Christ, “Do to others as you would

have them do to you.”

Exhibit 2–8: What Is Your Moral Compass in

Life?

Management’s Ethical Responsibilities

 Ethics is the code of moral principles and

values that govern the behaviors of a person

or a group with respect to what is right or

wrong

 Ethical behavior refers to treating others

fairly

Management’s Ethical Responsibilities

 Ethical behavior refers to treating others fairly

Being honest

Maintaining confidence and trust

Following the rules

Conducting yourself in the proper manner

Demonstrating loyalty and responsibility

Carrying your share of work

What Is an Ethical Dilemma?

 A situation in which each alternative choice or behavior has some undesirable elements due

to potentially negative ethical or personal

consequences

Ethics in Dealing with Salespeople

 Five ethical considerations faced by sales managers:

Level of sales pressure

Decisions affecting territory

To tell the truth?

The ill salesperson

Employee rights

Termination-at-will

 Privacy

What Rights Do Employees Have?

Employees are protected by law from acts

of discrimination and sexual harassment

Benefits of Respecting Employees Rights

 Attracting good sales personnel

 Reducing legal costs

Salespeople’s Ethics in Dealing with Their

Ethics in Dealing with Customers

Ethics in Dealing with Customers, cont…

Buying a product from

someone if the person

The International Side of Ethics

 Guidelines for conducting international

business may be different or even

Managing Sales Ethics

 All managers feel they face ethical problems

 Most managers feel their employees need to

be more ethical

 Managers are more ethical with their friends than with people they know

 Even though they want to be more ethical,

some managers lower their ethical standards

to meet their goals

Managing Sales Ethics, cont.

 Managers are aware of unethical practices in their industry and company ranging from

pricing discrimination to hiring discrimination

 Business ethics can be influenced by an

employee’s superior and the company’s

environment

Managing Sales Ethics, Exhibit 2-12: Top-Level Management Sets the Climate for Ethical Behavior

 Follow the leader

 Leader selection is

important

 Establish a code of ethics

 Create ethical structures

Ethics in Business and Sales

 Personal project for you this week:

Using the three levels of moral development, score each ethical or moral decision you make this week.

Do you have a pattern of using different moral

development levels for different decisions?

What is a moral or ethical issue for you?

Helpful Hints to Making Career Decisions

 Your employer should provide worthwhile

products

 You should be able to do what is right

 You do not have to compromise your beliefs

 People go before anything else

 Good people are desperately needed in all types of businesses/organizations

 Look for a calling, not a job.*

Do Your Research to Find an Ethical/Moral

Employer: Is the Employer’s

 Mission to serve?

 Values based upon integrity, trust, and

character?

 Cornerstone love of people?

FUTRELL CORPORATION Preparing People for the 21 st Century

Exhibit 2-13: What Do You Look for in an

Employer?

Exhibit 2-14: The Tree of Business Life

T r

Relationships

The Tree is rooted in:

without compromise or corruption

 From integrity flows confidence

that one can trust the other

 Integrity and trust form the

attributes often referred to as

character

Framed by:

 Ethical Service that Builds True

Relationships Shown with T’s standing for:

Tree of Life + Golden Rule

 Measure the growth of your Business Tree of Life with your

Golden Rule of Personal Selling

T r

Relationships

Ethics Rule Business

Customer

Summary of Major Selling Issues

 Ethical behavior pertains to values of right

 Corporate culture is an organizational

characteristic that influences ethical behavior

Summary of Major Selling Issues, cont…

 Social responsibility in business means profitably

serving employees and customers in an ethical and lawful manner.

 Ethical standards and guidelines for sales personnel must be developed, supported, and policed.

 Research suggests that socially responsible

organizations perform as well as – and often better than – organizations that are not socially responsible.