The document discusses ethics in sales management and provides guidelines for ethical behavior. It covers (1) the responsibilities of organizations to stakeholders and the community, (2) influences on ethical behavior like personal values and corporate culture, (3) levels of moral development from principled to conventional to pre-conventional, (4) guidelines for ethical decision making, and (5) specific ethical considerations around dealings with salespeople, customers, and ensuring sales stay legal. The overall message is that ethics must be a priority set from the top of an organization and guide all business dealings and decisions.

1. Sales Management
Ethics in Selling
Compiled & Presented By:
Anuj SharmaText Book: Fundamentals of Selling – Customers
for life through services by Charles M. Futrell (12th
Edition)
Pre-Class Reading – Chapter 3
Presented to the students of Tolani Institute of
Management Studies

2. We all face Ethical Dilemmas
2
 Found a bag full of money on the road, would you keep
it?
 Do you tell your teacher that you are sick to bunk
lectures?
 Are you using the company car for personal work?
 While splitting a Dabeli with your friend do you take
the bigger half?

3. “Ethics is what you do when no
one is looking.”
George Bernard Shaw
3

4. “Ethics must begin at the top of an
organization. It is a leadership issue
and the Chief Executive must set the
example.”
Edward Hennessy
4

5. Management’s Social
Responsibilities
5
 Distinguishing right from wrong & doing the right
thing.
 Being a good corporate citizen.
 Responsibility towards their stakeholders

6. Who are the stake holders?
6
Organizati
on
Customers
Communit
y
Creditors
Governme
nt
Owners
Managers
Employee
s
Suppliers
CCC GOMES

7. What are the Responsibilities?
7
Discretionary
Responsibility
Contribute to the community
and quality of life
Ethical Responsibility
Be ethical. Do what is right
Legal Responsibility
Obey the Law
Economic Responsibility
Be Profitable

8. What influences Ethical
Behaviour?
8
 Individual Influences
 An individual’s personal moral and ethical values.
 Organizational Influences
 Integrity of top management & managers.

9. Levels of Moral development
9
Level 1: Principled – “What is the right thing
to do?”
Level 2: Conventional – “What am I legally
required to do?”
Level 3: PreConventional – “What can I get away
with?”
Level 2 Level 3Level 1

10. But everyone is doing it, that makes
it right, right?!
“Wrong is wrong even if everyone is doing it;
Right is right even if no one is doing it. ”
~ Augustine of Hippo

11. Three Guidelines for making Ethical
Decisions
11
1. Never changing.
2. Fixed point of reference.
 Correct action to take in any situation and never gets
tailored to fit an occassion.
3. Separate from you.
 Otherwise you will be changing the rules based upon your
interest.

12. What is ethical behaviour?
12
 Being honest and truthful.
 Maintaining confidence and trust.
 Following the rules.
 Conducting yourself in the proper manner.
 Treating others fairly.
 Demonstrating loyalty to company and
associates.
 Carrying your share of the work & responsibility
with 100 percent effort.

13. Many companies & their salespeople get
into trouble by making the mistaken
assumption that if it’s not illegal, it must be
ethical
“Ethics are not necessarily to do with being law-
abiding. I am very interested in the moral path,
doing the right thing.”
~Kate Atkinson
13

14. Ethics in dealing with
Salespeople
14
1. Level of sales pressure
 Should a manager establish a performance goal that he knows his
salesperson has a 50-50 chance of attaining?
 If the circumstances change in the salesperson’s territory should the
manager lower sales goals?
2. Decisions affecting territory
 Company increases territories by splitting them – a salesperson might
have spent years building the territory only to have customers taken away.
 Company reduces number of territories – putting pressure on sales force.
Key accounts made into house accounts.
3. Tell the truth?
 Not promotable. Marginal Performers. Transfer to poorest territory.
4. The ill salesperson
 Once the illness has a negative effect on business, take out the
salesperson?
5. Employee Rights
 Under what condition can the salesperson get fired?
 Privacy of their employment records.
 Prevent sexual and racial harassment.

15. Salespeople’s Ethics in Dealing with
their Employers
15
 Misusing company assets
 Moonlighting
 Cheating
 Affecting other salespeople
 Technology theft

16. Ethic in dealing with customers
16
 Bribes
 Misrepresentation
 Price Discrimnation
 Tie-in Sales
 Exclusive Dealership
 Reciprocity
 Sales Restrictions

17. Staying Legal
17
 Understand the difference between sales puffery
(opinions) and statements of fact.
 Educate the customer before making a sale about
specific qualities of the product.
 Be accurate when describing a product’s capabilities.
 Know the technical specifications of the product.
 Avoid making exaggerated claims about product
safety.
 Know the laws regarding warranties and guaranties.
 Capabilities & characteristics of your products &
services.
 Keep current on all design changes & revisions.
 Avoid offering opinions when customer asks about
specific results without proper tests or evidence.

18. Managing Sales Ethics
18
 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

19. My advice to you...
19
If you want to decide if something is ethical or not,
just follow these three rules:
Rule No. 1: Use your common sense
Rule No. 2: When in doubt, don’t
Rule No. 3: If all else fails, refer to Rule No. 1

20. And most importantly...
20
“Do not exchange your dignity for
popularity.”
~ Dr. Steve Maraboli

21. Thank You!!!
21
 Grazie
 Gracias
 Domo Arigato
 Merci
 Danke
 Obrigado
 Mahalo
 शुक्रिया