Ethical dealings among salespeople, employers and customers.
The international side of ethics.
Managing sales ethics.
L EARNING O BJECTIVES This chapter is one of the most important in this textbook. Understanding social, ethical and legal issues helps build a solid foundation on which to base future decisions and to manage sales personnel. After studying this chapter, you should be able to explain the following:
M ANAGEMENT’S S OCIAL R ESPONSIBILITIES Social responsibility is management’s obligation to make choices and take actions that will contribute to the welfare and interests of society as well as to those of the organization.
Stakeholder Any group within or outside the organization that has a stake in the organization’s performance.
FIGURE 2.1 MAJOR STAKEHOLDERS IN THE ORGANIZATION’S PERFORMANCE
CCC GOMES This acronym is an effective way to remember an organizations stakeholders: Customers, Community, Creditors, Government, Owners, Managers, Employees, and Suppliers.
Carrying your share of the work and responsibility with 100% effort.
W HAT I S E THICAL B EHAVIOR?
W HAT I S AN E THICAL D ILEMMA? An ethical dilemma arises in a situation when each alternative choice or behavior has some undesirable elements due to potentially negative ethical or personal consequences.
Three main ethical areas most frequently faced by sales personnel:
EMPLOYEE RIGHTS Rights desired by employees regarding the security of their jobs and the treatment administered by their employer while on the job, irrespective of whether such rights are currently protected by law or collective bargaining agreements of labor unions.
Cooperative Acceptance The right of employees to be treated fairly and with respect regardless of race, sex, national origin, physical disability, age, or religion while on the job as well as when applying and regarding a job.
Allows sellers to grant what are called quantity discounts to large buyers based on savings in the cost of manufacturing, but individual salespeople or managers may not practice price discrimination to improve sales.
A group of executives appointed to oversee company ethics.
An official given the responsibility of corporate conscience who hears and investigates ethical complaints and informs top management of potential ethical issues.
Management methods to help organizations be more responsive:
Follow the Leader
Establish a Code of Ethics
Create Ethical Structures
Encourage Whistle Blowing
Create an Ethical Sales Climate
Establish Control Systems
T HE B OTTOM L INE Ethics and social responsibility are hot topics for managers. Corporate social responsibility concerns a company’s values towards society. Salespeople and managers realize that their business practices, including international dealings, should be carried out in an ethical manner.