chap03EthicsFirst…ThenCustomerRelationships.ppt

Ethics FirstThen Customer Ethics FirstThen Customer RelationshipsRelationshipsChapterChapter3ChapterChapter3Main TopicsMain TopicsSocial,Ethical,Legal InfluencesManagements Social ResponsibilitiesWhat Influences Ethical Behavior?Are There any Ethical Guidelines?Managements Ethical ResponsibilitiesEthics in Dealing with SalespeopleChapterChapter3Main TopicsMain TopicsSalespeoples Ethics when Dealing with Their EmployersEthics in Dealing with CustomersThe International Side of EthicsManaging Sales EthicsEthics in Business and SalesThe Tree of Business LifeChapterChapter3Social,Ethical,and Legal InfluencesAn organizations environment is a major influence on how the firm sells its productsDue to the environmental turmoil in the world of commerce,this chapter is arguably the most important in the entire bookBegin by asking,“Does an organization have any responsibilities to society?”Exhibit 3-1Social,ethical,and legal(SEL)influenceshave a powerful effecton anorganizationsmarketingprogram!Managements Social ResponsibilitiesSocial responsibility is managements obligation to make choices and take actions that contribute to the welfare and interests of society as well as to those of the organizationOrganizational StakeholdersA stakeholder is any group inside or outside the organization that has a stake in the organizations performanceStakeholders may have similar or different interests in the organization:CustomersCommunityCreditorsGovernmentCCC GOMESOwnersManagersEmployeesSuppliersmployeesustomersommunityreditorsovernmentwnersanagersuppliersExhibit 3-2:Major Stakeholders in the Organizations PerformanceCCCGOMESOrganizationAn Organizations Main ResponsibilitiesEconomic-be profitableLegal-obey the lawEthical-do what is rightDiscretionary-contribute to community and quality of lifeExhibit 3-3:An Organizations Main ResponsibilitiesWhat Influences Ethical Behavior?The Individuals RoleLevel one:Preconventional acts in own best interestA few operate hereLevel two:Conventional upholds legal lawsMost people operate hereLevel three:Principled lives by own codeFewer than 20%reach level threeThe Organizations RoleAt best,most employees in firm operate at level twoHow will the situation be handled if no policies and procedures are in place?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?”Exhibit 3-5:Moral Development Bell CurveAre 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 persons situationPeople are most likely to make their moral and ethical decisions based on:Whatever feels right or Comfortable in a situationHow Do You Make Your Moral-Right or Wrong Choices?(Choose One)Whatever will bring you the most pleasing or satisfying resultsWhatever will make other people happy or minimize interpersonal conflictValues taught by your familyPrimarily from religious principles and teaching or bible contentOtherWhat 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?What Does One Do?Out of class,is it okay to copy someone elses 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?What Does One Do?,contWe all have an internal ultimate moral standard we use to measure good and evil,right and wrong some people call that their“conscience”Most of us know we should return the$125,000 and not copy someones homeworkBut what would we actually do?Is Your Conscience Reliable?Is Your Conscience Reliable?,contIf a persons values are at“Level 2,”they may make decisions based on the situation and what others say and doUsually people rationalize their decisions;“Ill only copy the homework this one time”Many people are so accustomed to doing things unethically that they think nothing about itHow Do You Know if What Someone Is Saying Is True or Not?Can there 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,andThere is no way to know what is the truth unless there is a truth you can knowExhibit 36:How Do You Know Which Fork in the Road to Take?“When you come to a fork in the road,take it.”YOGI BERRADo factors influencing our decisions include your friends,family,or things you see on television or in the moviesBarna has found that the leading influences on American ethics are movies,TV,the Internet,books,music,public policy,law,and familySources of Significant InfluenceThree Guidelines for Making Ethical DecisionsA standard that:1.Never changes2.Offers a fixed point of reference3.Is separate from youStars can be used for navigation because they are a fixed point of reference separate from you that no one can influenceA Fixed Point of ReferenceYou need a You need a fixedfixed point of point of reference reference separateseparate from you from you that that no one can influenceno one can influenceThe Fixed Point of Reference Must Be:Right whether people:Believe it or notLike it or notKnow about it or notWhat Is a Fixed Point of Reference?A fixed point of reference refers to something that provides the correct action to take in any situation and never gets tailored to fit an occasionHow do you know which fork in the road to take?You need a moral compass!Will The Golden Rule Help?The“Golden Rule”concept is present in virtually all faith-based principlesThe Golden Rule does not involve reciprocity“Could the Golden Rule serve as a universal,practical,helpful standard for the businesspersons conduct?”Would you consider your faith a fixed point that is separate from you and never changes?Exhibit 3-7:World Religions Embrace the Golden RuleHindu Mahabharata,“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 UdanaVarga,-“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.”Exhibit 38:What Is Your Moral Compass in Life?Managements Ethical ResponsibilitiesEthics 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 wrongEthical behavior refers to treating others fairly 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 consequencesEthics in Dealing with SalespeopleFive ethical considerations faced by sales managers:Level of sales pressureDecisions affecting territoryTo tell the truth?The ill salespersonEmployee rightsTermination-at-willPrivacySexual harassmentBenefits of Respecting Employees RightsMore productive employeesAttracting good sales personnelReducing legal costsReducing wage increase demandsSalespeoples Ethics in Dealing with Their EmployersMisusing company assetsMoonlightingCheatingAffecting other salespeopleTechnology theft Ethics in Dealing with CustomersBribesMisrepresentationPrice discriminationRobinson-Patman ActSelling the same quantity of the same product to different buyers at different pricesTie-in salesTo buy a particular line of merchandise,a buyer may be required to buy other,unwanted productsClayton Act Ethics in Dealing with Customers,contExclusive dealershipReciprocityBuying a product from someone if the person or organization agrees to buy from youSales restrictionsCooling-off lawsGreen River ordinances The International Side of EthicsGuidelines for conducting international business may be different or even nonexistentDespite laws in other countries,U.S.firms are subject to U.S.lawsIt is important to keep up to date on the law and be aware of how authorized representatives are conducting business Managing Sales EthicsFollow the leaderLeader selection is importantEstablish a code of ethicsCreate ethical structuresEncourage whistle-blowingCreate an ethical sales climateEstablish control systemsEthics in Business and SalesPersonal project for you this week:Using the three levels of moral development,score each ethical or moral decision you make this weekDo you have a pattern of using different moral development levels for different decisions?What is a moral or ethical issue for you?Helpful Hints to Making Career DecisionsYour employer should provide worthwhile productsYou should be able to do what is rightYou do not have to compromise your beliefsPeople go before anything elseGood people are desperately needed in all types of businesses/organizationsLook for a calling,not a job*Do Your Research to Find an Ethical/Moral Employer:Is the Employers.Mission to serve?Vision based upon the Golden Rule?Values based upon integrity,trust,and character?Foundation based upon service?Cornerstone love of people?FUTRELL CORPORATIONPreparing People for the 21st CenturyExhibit 3-13:What Do You Look for in an Employer?Exhibit 3-14:The Tree of Business LifeITCTT TT T T TT TT TEthicalServiceBuilds T r u eRelationshipsThe Tree is rooted in:Integrity:being honest and without compromise or corruptionFrom integrity flows confidence that one can trust the otherIntegrity and trust form the attributes often referred to as characterFramed by:Ethical Service that Builds True RelationshipsShown with Ts standing for:Truth:facts needed to make ethical and moral decisionsTree of Life+Golden RuleMeasure the growth of your Business Tree of Life with your Golden Rule of Personal SellingITCTT TT T T TT TT TEthicalServiceBuilds T r u eRelationshipsEthics Rule BusinessCustomer Summary of Major Selling IssuesEthical behavior pertains to values of right and wrongEthical decisions and behaviors are typically guided by a value systemAn important individual characteristic is ones level of moral developmentCorporate culture is an organizational characteristic that influences ethical behaviorSummary of Major Selling Issues,contSocial responsibility in business means profitably serving employees and customers in an ethical and lawful mannerEthical standards and guidelines for sales personnel must be developed,supported,and policedResearch suggests that socially responsible organizations perform as well as and often better than organizations that are not socially responsible