Group 1 presents information on ethics in sales management. It defines key terms like business ethics, sales management ethics, and boundary spanners. It discusses how customers can be vulnerable to salespeople due to ignorance, naivety, or powerlessness. Codes of ethics define acceptable behaviors for companies and occupations. Approaches to ethics include idealism, relativism, and consequentialism. An organization's ethical climate and emphasis on sales can influence employees' ethical decisions and behaviors. Laws aim to protect fair competition and consumers from unfair business practices. The goal of ethics in sales is for salespeople to prioritize ethical treatment of customers over short-term gains.

1. Group 1 presents…

3.  Ethics describes the moral content of
behavior.
 Business Ethics is the study of how
businesspeople behave when facing a
situation with moral consequences.*
 Sales Management Ethics is the specific
component of business ethics that deals with
ethically managing the sales function.

4.  Boundary spanner is someone who performs
his or her job in the “boundary” between a
company and a customer
 Salespeople represent the company to the
customer and the customer to the company.*
 Sales managers have a special role in
maintaining an ethical work and sales
environment.

5.  Vulnerable meaning they are at a
disadvantage relative to the company.
 Most often, the disadvantage comes in these
forms: Ignorance, Naiveté, and
Powerlessness

6. Source of Customer
Vulnerability
Salesperson Advantage Customer Disadvantage
Ignorance Salesperson has superior
technological knowledge
Customer is
technologically challenged
and cannot understand
salesperson
Naiveté Salesperson allows room
for negotiation in setting
prices
Customer doesn’t
understand the
negotiation process.
Powerlessness Salesperson works for an
exclusive supplier to the
customer who is under
contractual obligation to
purchase from the supplier
Customer represents a
small retail company with
few assets and little access
to other markets

8.  It express the values of a firm by specifying, in
writing, specific behaviors that are consistent
or inconsistent with those values.
 Codes must not only be adopted, they must
embody values truly epitomized by top
management.

9. 1. Company codes that define ethical
boundaries for employees.
2. Professional codes that define ethical
boundaries for occupational groups.*
3. Business association codes that define
ethical boundaries for people engaged in the
same line of business.*
4. Advisory group codes suggested by
government agencies or other special
interest groups.

10.  Bribes, gifts, kickbacks
 Conflicts of interest
 Illegal political
payments
 Violation of laws in
general
 Use of insider
information
 Violations of secrecy
agreement
 Falsification of sales
accounts
 Moonlighting
 Violation of antitrust
laws
 Fraud and deception
 Illegal payments
abroad
 Justifying the means
by the intended end

12.  It deals with the systematic ways that
individuals recognize and resolve decisions
having moral content

13.  Ideals are set of principles by which individual
determine morality.
 Golden Rule is considered a widely held moral
principle or moral absolute
 Moral Absolute represents a rule that should
always be applied with no exceptions or
excuses.*
 Idealism as a moral philosophy deals more with
how people use these principles than with
whether individual principle itself is universally
valid.

14.  As a moral philosophy, is a process by which
each individuals reach moral decisions based
more on the actions they perceive to be
acceptable given a particular situation
 Those who are highly committed to
relativism usually reject moral absolutes or
imperatives
 Relativism is sometimes called situational
ethics*

15.  It is a philosophy that defines morality based
on the consequences of the behavior.
 It allows some indiscretion based on the
argument that the “good” that results is more
important than the harm caused.
 The end justifies the means.

16.  Is a person’s evaluation of the situation from
an ethical perspective
 Ethical Dilemma is a situation with
alternative courses of action, each having
different moral implications

17. 1. Moral Equity*
2. Acceptability*
3. Contractualism*

20.  It is a specific aspect of the organizational
climate
 Organizational climate is the way employees
perceive the organizational culture

21. 1. Policies and rules
2. Trust and responsibility
3. Peer behavior
4. Bottom-line sales emphasis

22.  It helps sales managers and sales people to
internalize and govern selling and marketing
conduct within the fir
 Sometimes it is summarized in a code of
ethics

23.  Its dimensions defines how far people are
trusted to behave in a responsible way and
are held personally responsible for their
actions.

24.  As a dimension of ethical climate, is the
extent to which employees view coworkers as
having high standards.

25.  Sales emphasis is the extent to which
employees feel pressured to prioritize
increased sales, profits, margins, or other
financial returns over all other concerns.
 A strong sales emphasis or bottom-line
orientation, coupled with a control system
based on sales quotas, leads to a more
negative ethical work climate

27. 1. Laws protecting companies from each other
2. Laws and policies protecting consumer and
society from unfair business practices

28.  The Clayton Act prohibits a seller from
discriminating on price or terms of sale
among different customers when the
discrimination has a harmful effect on
competition.
 This practice is called price discrimination

29. 1. The price differential is given in good faith
to meet a price offered by a competitor
2. The price differential is based upon cost
savings reflecting a difference in the cost of
manufacture, sale, or delivery resulting from
the differing methods or quantities in which
products are sold or delivered

30.  Collusion
 Price Fixing
 Exclusive Dealing
 Restraint ofTrade
 Reciprocity
 Tie-in Sales
 Unordered Goods
 Orders andTerms of
Sale
 Business
Descriptions
 Product Descriptions
 Customer Coercion
 Business Defamation

32.  Ethical Maturity- it is reached when
salespeople place the moral treatment of
others ahead of short-term personal gain

33. Example Item Strongly
Disagree
Disagree Neutral Agree Strongly
Agree
Trust/Responsibility
Peer Behavior
Policies and Rules
Sales Emphasis