Chapter 3  Ethics First ppt
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  • 1. 3- McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
  • 2. Ethics First…Then Customer Relationships Chapter 3 Chapter 3
  • 3. Chapter 3 3-
  • 4. 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
  • 5. Organizational Stakeholders
    • A stakeholder is any group inside or outside the organization that has a stake in the organization’s performance
    • Stakeholders may have similar or different interests in the organization:
      • Customers
      • Community
      • Creditors
      • Government
      • Owners
      • Managers
      • Employees
      • Suppliers
  • 6. Exhibit 3.2: Major Stakeholders in the Organization’s Performance
  • 7. 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
  • 8. Exhibit 3.3: An Organization’s Main Responsibilities
  • 9. What Influences Ethical Behavior?
    • The Individual’s Role
      • Level one: Preconventional – 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
        • Less 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?
  • 10. Exhibit 3.4: 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?”
  • 11. Exhibit 3.5: Moral Development Bell Curve
  • 12. Are There Any Ethical Guidelines ?
    • What Does The Research Say?
      • 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 or
        • comfortable in a situation
  • 13. 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
  • 14. Are There Ethical Guidelines?
    • What Does One Do?
      • 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?
  • 15. Are There Ethical Guidelines?
    • Out of class, is it okay to copy someone else’s homework assignment?
    • What keeps you from cheating on an exam when the professor is out of the room?
      • Is it fear of being caught?
      • Not the right thing to do?
  • 16. Are There Ethical Guidelines?
    • Is Your Conscience Reliable?
      • We all have an internal constant standard with which we measure right and wrong, a “moral compass”
      • Most of us know we should return the $125,000 and not copy someone’s homework
      • But what would we actually do?
  • 17. Are There Ethical Guidelines?
    • Is Your Conscience Reliable? (Cont’d)
    • 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.”
    • Many people are so accustomed to doing things unethically that they think nothing about it.
  • 18. Are There Ethical Guidelines?
    • Sources of Significant Influence
      • Do factors influencing our decisions include your friends, family, or things you see on television or in the movies?
      • Barna has found that the leading influences on American ethics are movies, TV, the Internet, books, music, public policy, law, and family
  • 19. To Have Ethical Guidelines You Need
    • A point of reference that:
      • Is fixed – so that no one can change it
      • Is separate from you
      • No one else may influence
  • 20. The Fixed Point of Reference Must Be:
    • Right whether people:
      • Believe it or not
      • Like it or not
      • Know about it or not
  • 21. How Do You Know If What Someone is Saying is True or Not?
    • Can it 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
  • 22. Exhibit 3.6: What Is a Fixed Point of Reference?
    • Stars can be used for navigation because they are a fixed point of reference separate from you that no one can influence
  • 23. 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?
  • 24. Exhibit 3.7: Examples of World Religions Which Embrace the Golden Rule
    • Hindu - “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 - “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.”
  • 25. What Do You Use For a Moral Compass?
  • 26. 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
  • 27. 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
  • 28. 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
        • sexual harassment
  • 29. Benefits of Respecting Employees Rights
    • More productive employees
    • Attracting good sales personnel
    • Reducing legal costs
    • Reducing wage increase demands
  • 30. Salespeople’s Ethics in Dealing with Their Employers
    • Misusing company assets
    • Moonlighting
    • Cheating
    • Affecting other salespeople
    • Technology theft
  • 31. Ethics in Dealing with Customers
    • Bribes
    • Misrepresentation
    • Price discrimination
      • Robinson-Patman Act
      • Selling the same quantity of the same product to different buyers at different prices
    • Tie-in sales
      • To buy a particular line of merchandise, a buyer may be required to buy other, unwanted products.
      • Clayton Act
  • 32. Ethics in Dealing with Customers
    • Exclusive dealership
    • Reciprocity
      • Buying a product from someone if the person or organization agrees to buy from you
    • Sales restrictions
      • Cooling-off laws
      • Green River ordinances
  • 33. The International Side of Ethics
    • Guidelines for conducting international business may be different or even nonexistent
    • Despite laws in other countries, U.S. firms are subject to U.S. laws
    • It is important to keep up to date on the law and be aware of how authorized representatives are conducting business
  • 34. Managing Sales Ethics
    • Follow the leader
    • Leader selection is important
    • Establish a code of ethics
    • Create ethical structures
    • Encourage whistle-blowing
    • Create an ethical sales climate
    • Establish control systems
  • 35. 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*
  • 36. Do Your Research to Find an Ethical/Moral Employer. Is the Employer’s...
    • Mission to serve?
    • Vision based upon the Golden Rule?
    • Values based upon integrity, trust, and character?
    • Foundation based upon service?
    • Cornerstone love of people?
  • 37. Exhibit 3.10: What Do You Look for in an Employer?
  • 38. Exhibit 3.11: The Tree of Business Life I T C Ethical Service Builds T r u e Relationships
    • The Tree is rooted in:
      • Integrity : being honest and 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:
      • T ruth: facts needed to make ethical and moral decisions
    T T T T T T T T T T T
  • 39. Golden Rule + Tree of Life
    • Measure the growth of your Business Tree of Life with your Golden Rule of Personal Selling.
    I T C T T T T T T T T T T T Ethical Service Builds T r u e Relationships
  • 40. Ethics Rule Business