1 / 17

Ethical and Legal Issues in Selling

Ethical and Legal Issues in Selling. Learning Objectives Develop principles upon which to base ethical behavior. Identify the sources of influence on ethics and ethical behavior. Understand your role in maintaining the ethical position of the organization.

hova
Télécharger la présentation

Ethical and Legal Issues in Selling

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Ethical and Legal Issues in Selling Learning Objectives • Develop principles upon which to base ethical behavior. • Identify the sources of influence on ethics and ethical behavior. • Understand your role in maintaining the ethical position of the organization. • Discover what loyalty to the company requires in the event that your employees may be involved in questionable ethical behavior. • Recognize the implications of federal and local laws regarding ethical standards. • Chapter 3

  2. Dr. Ken Blanchard and Dr. Norman Vincent Peale • The basic message of their book is simple: You don’t have to cheat to win! • “Nice guys may appear to finish last, but usually they are running in a different race.” • Cheating, lying, and short-changing the customer on service may bring a satisfactory profit today, but it is a sure way to court failure for the future.

  3. Do Honest Salespeople Finish Last? The Origin of Ethics: • Legal standards are enforced by laws and statutes • Ethical standards come from society • The Ethical Dilemma

  4. Bases for Ethical Systems Two Systems to Describe Ethical Thinking: • Deontological uses specific rules • Teleological defines right and wrong in terms of end results • Utilitarian: The greatest good for the greatest number • Ethical ambivalence results from learning that everything is relative • Are there any moral absolutes?

  5. Guidelines for Ethical Behavior • Universal Nature • The Golden Rule • Everybody plays by the same rules • Truth Telling • Trust facilitates cooperation • Responsibility for one’s actions • Don’t blame others for your problems • The “victim” mentality

  6. Influences on a Salesperson’s Ethics • Company Code of Ethics • Government action and fear of retribution have convinced more companies to adopt a code • Typical issues covered: Expense accounts, gift giving, or unethical demands by a buyer • Examples Set by Colleagues and Competitors • The Bottom Line • Survival and Profit • Groupthink • Peer pressure • Gamesmanship • Winning for the sake of winning

  7. Developing A Personal Code of Ethics • Responsibility to Self • Responsibility to the Company • Accuracy in expense accounts • Honesty in using time and resources • Accuracy in filling out order forms • Responsibility to Competitors • Responsibility to Customers • Misrepresenting products and services • Keeping confidences • Giving Gifts and Entertaining Clients 7

  8. Operating in a Global Environment • Some cultures have different expectations • Global Rule of Thumb: • Salespeople should follow the laws of their country and the rules of their company

  9. Ethics and Job Tenure Whistle-Blowing • You may be held legally accountable for inaction • Recent rulings encourage whistle-blowing Sometimes the best policy may be to keep quiet until solid evidence can be accumulated against a wrongdoer. A word of caution… inactioncan even be grounds for legal action.

  10. How the Company Treats the Salesperson • Some incentives encourage fudging • Management may not be accessible to help with ethical issues • Do control mechanisms exist for: • Customer complaints? • Salesperson dissatisfaction? • Expense accounts? • Are sales goals impossible? • Manage the distribution of sales territories fairly

  11. Sexual Harassment • Sexual harassment cases filed with the EEOC have gone up 230 percent over the past decade Nearly 16,000 complaints per year • Look for a harassment policy including: • Company leadership • Immediate complaint investigation • Privacy rights protected • Thorough follow-up • Sensitivity training • Review training for comprehension • Periodic refresher courses

  12. Ethics as Good Business Five checkpointsin ethical decision making: • Is it legal? • Is it fair to all concerned? • Would I want someone else to act this way towards me? • How would I explain my actions to someone else? • How will it make me feel about myself?

  13. Remember… There is no pillow as soft as a clear conscience.

  14. Legal Issues Facing the Salesperson • Some legal traps • Quality below standard specified • Violation of delivery date • Pricing concessions • Incomplete or incorrect instructions • Misrepresentation of product usage • Slandering competitor • Kickbacks to buyers • Charges after the sale • Laws fall into broad categories • Monopolistic actions • Deceptive actions

  15. Specific Antitrust Laws and Their Sales Implications • The Sherman Antitrust Act of 1890 • The Federal Trade Commission Act of 1914 • Unfair methods of competition in commerce • Unfair or deceptive acts or practices • The Robinson Patman Act of 1936 • Defines price discrimination • Gives FTC the right to limit quantity discounts • Prohibits unfair promotional allowances • Brokerage allowances only go to independent brokers

  16. Guidelines For Selling • Written or verbal offers to sell may be binding • Financing must be explained clearly and completely • Salesperson must know legal responsibilities of both parties • Warranties and guarantees • Express warranties are made by salesperson or in writing • Implied warranties • Are a result of state law • Unless a disclaimer is made • Uniform Commercial Code (UCC)

  17. Cooling-Off Law

More Related