Chapter 3 Ethics First ppt

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Chapter 3 Ethics First ppt

  1. 1. 3- McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
  2. 2. Ethics First…Then Customer Relationships Chapter 3 Chapter 3
  3. 3. Chapter 3 3-
  4. 4. Management’s Social Responsibilities <ul><li>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 </li></ul>
  5. 5. Organizational Stakeholders <ul><li>A stakeholder is any group inside or outside the organization that has a stake in the organization’s performance </li></ul><ul><li>Stakeholders may have similar or different interests in the organization: </li></ul><ul><ul><li>Customers </li></ul></ul><ul><ul><li>Community </li></ul></ul><ul><ul><li>Creditors </li></ul></ul><ul><ul><li>Government </li></ul></ul><ul><li>CCC GOMES </li></ul><ul><ul><li>Owners </li></ul></ul><ul><ul><li>Managers </li></ul></ul><ul><ul><li>Employees </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul>
  6. 6. Exhibit 3.2: Major Stakeholders in the Organization’s Performance
  7. 7. An Organization’s Main Responsibilities <ul><li>Economic - be profitable </li></ul><ul><li>Legal - obey the law </li></ul><ul><li>Ethical - do what is right </li></ul><ul><li>Discretionary - contribute to community and quality of life </li></ul>
  8. 8. Exhibit 3.3: An Organization’s Main Responsibilities
  9. 9. What Influences Ethical Behavior? <ul><li>The Individual’s Role </li></ul><ul><ul><li>Level one: Preconventional – acts in own best interest </li></ul></ul><ul><ul><ul><li>A few operate here </li></ul></ul></ul><ul><ul><li>Level two: Conventional – upholds legal laws </li></ul></ul><ul><ul><ul><li>Most people operate here </li></ul></ul></ul><ul><ul><li>Level three: Principled – lives by own code </li></ul></ul><ul><ul><ul><li>Less than 20% reach level three </li></ul></ul></ul><ul><li>The Organization’s Role </li></ul><ul><ul><li>At best, most employees in firm operate at level two </li></ul></ul><ul><ul><li>How will the situation be handled if no policies and procedures are in place? </li></ul></ul>
  10. 10. Exhibit 3.4: What Is Your Level of Moral Development? <ul><ul><li>Preconventional - “What can I get away with?” </li></ul></ul><ul><ul><li>Conventional - “What am I legally required to do?” </li></ul></ul><ul><ul><li>Principled - “What is the right thing to do?” </li></ul></ul>
  11. 11. Exhibit 3.5: Moral Development Bell Curve
  12. 12. Are There Any Ethical Guidelines ? <ul><li>What Does The Research Say? </li></ul><ul><ul><li>American adults said by a 3-to-1 margin that truth is always relative to a person’s situation </li></ul></ul><ul><ul><li>People are most likely to make their moral and ethical decisions based on: </li></ul></ul><ul><ul><ul><li>whatever feels right or </li></ul></ul></ul><ul><ul><ul><li>comfortable in a situation </li></ul></ul></ul>
  13. 13. How Do You Make Your Moral-Right or Wrong Choices? (Choose One) <ul><li>Whatever will bring you the most pleasing or satisfying results </li></ul><ul><li>Whatever will make other people happy or minimize interpersonal conflict </li></ul><ul><li>Values taught by your family </li></ul><ul><li>Primarily from religious principles and teaching or Bible content </li></ul><ul><li>Other </li></ul>
  14. 14. Are There Ethical Guidelines? <ul><li>What Does One Do? </li></ul><ul><ul><li>What if you found a bank bag containing $125,000? Would you return it to the bank? </li></ul></ul><ul><ul><li>Is it fear of being caught? </li></ul></ul><ul><ul><li>Not the right thing to do? </li></ul></ul>
  15. 15. Are There Ethical Guidelines? <ul><li>Out of class, is it okay to copy someone else’s homework assignment? </li></ul><ul><li>What keeps you from cheating on an exam when the professor is out of the room? </li></ul><ul><ul><li>Is it fear of being caught? </li></ul></ul><ul><ul><li>Not the right thing to do? </li></ul></ul>
  16. 16. Are There Ethical Guidelines? <ul><li>Is Your Conscience Reliable? </li></ul><ul><ul><li>We all have an internal constant standard with which we measure right and wrong, a “moral compass” </li></ul></ul><ul><ul><li>Most of us know we should return the $125,000 and not copy someone’s homework </li></ul></ul><ul><ul><li>But what would we actually do? </li></ul></ul>
  17. 17. Are There Ethical Guidelines? <ul><li>Is Your Conscience Reliable? (Cont’d) </li></ul><ul><li>If a person’s values are at “Level 2,” they may make decisions based on the situation and what others say and do. </li></ul><ul><ul><li>Usually people rationalize their decisions; “I’ll only copy the homework this one time.” </li></ul></ul><ul><li>Many people are so accustomed to doing things unethically that they think nothing about it. </li></ul>
  18. 18. Are There Ethical Guidelines? <ul><li>Sources of Significant Influence </li></ul><ul><ul><li>Do factors influencing our decisions include your friends, family, or things you see on television or in the movies? </li></ul></ul><ul><ul><li>Barna has found that the leading influences on American ethics are movies, TV, the Internet, books, music, public policy, law, and family </li></ul></ul>
  19. 19. To Have Ethical Guidelines You Need <ul><li>A point of reference that: </li></ul><ul><ul><li>Is fixed – so that no one can change it </li></ul></ul><ul><ul><li>Is separate from you </li></ul></ul><ul><ul><li>No one else may influence </li></ul></ul>
  20. 20. The Fixed Point of Reference Must Be: <ul><li>Right whether people: </li></ul><ul><ul><li>Believe it or not </li></ul></ul><ul><ul><li>Like it or not </li></ul></ul><ul><ul><li>Know about it or not </li></ul></ul>
  21. 21. How Do You Know If What Someone is Saying is True or Not? <ul><li>Can it be a moral and ethical standard? </li></ul><ul><li>There is no way for you to know if what I am saying is true unless you know what is the truth </li></ul><ul><li>And there is no way to know what is the truth unless there is a truth you can know </li></ul>
  22. 22. Exhibit 3.6: What Is a Fixed Point of Reference? <ul><li>Stars can be used for navigation because they are a fixed point of reference separate from you that no one can influence </li></ul>
  23. 23. Will The Golden Rule Help? <ul><li>The “Golden Rule” concept is present in virtually all faith-based principles </li></ul><ul><li>The Golden Rule does not involve reciprocity </li></ul><ul><li>“ Could the Golden Rule serve as a universal, practical, helpful standard for the businessperson’s conduct?” </li></ul><ul><li>Would you consider your faith a fixed point that is separate from you and never changes? </li></ul>
  24. 24. Exhibit 3.7: Examples of World Religions Which Embrace the Golden Rule <ul><li>Hindu - “Do naught unto others what you would not have them do to you.” </li></ul><ul><li>Confucius - “Do not do to others what you would not like yourself.” </li></ul><ul><li>Buddhist - “Hurt not others in ways that you yourself would find hurtful.” </li></ul><ul><li>Rabbi Hillel - “That which is hateful to you do not do unto your neighbor.” </li></ul><ul><li>Jesus Christ - “Do to others as you would have them do to you.” </li></ul>
  25. 25. What Do You Use For a Moral Compass?
  26. 26. Management’s Ethical Responsibilities <ul><li>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 </li></ul><ul><li>Ethical behavior refers to treating others fairly </li></ul>
  27. 27. What is an Ethical Dilemma? <ul><li>A situation in which each alternative choice or behavior has some undesirable elements due to potentially negative ethical or personal consequences </li></ul>
  28. 28. Ethics in Dealing with Salespeople <ul><li>Five ethical considerations faced by sales managers: </li></ul><ul><ul><li>Level of sales pressure </li></ul></ul><ul><ul><li>Decisions affecting territory </li></ul></ul><ul><ul><li>To tell the truth? </li></ul></ul><ul><ul><li>The ill salesperson </li></ul></ul><ul><ul><li>Employee rights </li></ul></ul><ul><ul><ul><li>termination-at-will </li></ul></ul></ul><ul><ul><ul><li>privacy </li></ul></ul></ul><ul><ul><ul><li>sexual harassment </li></ul></ul></ul>
  29. 29. Benefits of Respecting Employees Rights <ul><li>More productive employees </li></ul><ul><li>Attracting good sales personnel </li></ul><ul><li>Reducing legal costs </li></ul><ul><li>Reducing wage increase demands </li></ul>
  30. 30. Salespeople’s Ethics in Dealing with Their Employers <ul><li>Misusing company assets </li></ul><ul><li>Moonlighting </li></ul><ul><li>Cheating </li></ul><ul><li>Affecting other salespeople </li></ul><ul><li>Technology theft </li></ul>
  31. 31. Ethics in Dealing with Customers <ul><li>Bribes </li></ul><ul><li>Misrepresentation </li></ul><ul><li>Price discrimination </li></ul><ul><ul><li>Robinson-Patman Act </li></ul></ul><ul><ul><li>Selling the same quantity of the same product to different buyers at different prices </li></ul></ul><ul><li>Tie-in sales </li></ul><ul><ul><li>To buy a particular line of merchandise, a buyer may be required to buy other, unwanted products. </li></ul></ul><ul><ul><li>Clayton Act </li></ul></ul>
  32. 32. Ethics in Dealing with Customers <ul><li>Exclusive dealership </li></ul><ul><li>Reciprocity </li></ul><ul><ul><li>Buying a product from someone if the person or organization agrees to buy from you </li></ul></ul><ul><li>Sales restrictions </li></ul><ul><ul><li>Cooling-off laws </li></ul></ul><ul><ul><li>Green River ordinances </li></ul></ul>
  33. 33. The International Side of Ethics <ul><li>Guidelines for conducting international business may be different or even nonexistent </li></ul><ul><li>Despite laws in other countries, U.S. firms are subject to U.S. laws </li></ul><ul><li>It is important to keep up to date on the law and be aware of how authorized representatives are conducting business </li></ul>
  34. 34. Managing Sales Ethics <ul><li>Follow the leader </li></ul><ul><li>Leader selection is important </li></ul><ul><li>Establish a code of ethics </li></ul><ul><li>Create ethical structures </li></ul><ul><li>Encourage whistle-blowing </li></ul><ul><li>Create an ethical sales climate </li></ul><ul><li>Establish control systems </li></ul>
  35. 35. Helpful Hints to Making Career Decisions <ul><li>Your employer should provide worthwhile products </li></ul><ul><li>You should be able to do what is right </li></ul><ul><li>You do not have to compromise your beliefs </li></ul><ul><li>People go before anything else </li></ul><ul><li>Good people are desperately needed in all types of businesses/organizations </li></ul><ul><li>Look for a calling, not a job* </li></ul>
  36. 36. Do Your Research to Find an Ethical/Moral Employer. Is the Employer’s... <ul><li>Mission to serve? </li></ul><ul><li>Vision based upon the Golden Rule? </li></ul><ul><li>Values based upon integrity, trust, and character? </li></ul><ul><li>Foundation based upon service? </li></ul><ul><li>Cornerstone love of people? </li></ul>
  37. 37. Exhibit 3.10: What Do You Look for in an Employer?
  38. 38. Exhibit 3.11: The Tree of Business Life I T C Ethical Service Builds T r u e Relationships <ul><li>The Tree is rooted in: </li></ul><ul><ul><li>Integrity : being honest and without compromise or corruption </li></ul></ul><ul><ul><li>From integrity flows confidence that one can trust the other </li></ul></ul><ul><ul><li>Integrity and trust form the attributes often referred to as character </li></ul></ul><ul><li>Framed by: </li></ul><ul><ul><li>Ethical Service that Builds True Relationships </li></ul></ul><ul><li>Shown with T’s standing for: </li></ul><ul><ul><li>T ruth: facts needed to make ethical and moral decisions </li></ul></ul>T T T T T T T T T T T
  39. 39. Golden Rule + Tree of Life <ul><li>Measure the growth of your Business Tree of Life with your Golden Rule of Personal Selling. </li></ul>I T C T T T T T T T T T T T Ethical Service Builds T r u e Relationships
  40. 40. Ethics Rule Business

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