Lecture# 5 Management’s Social and Ethical Responsibilities.
Sales Management Social, Ethical, and Legal Responsibilities of Sales Personnel Social, Ethical, and...
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Transcript of Sales Management Social, Ethical, and Legal Responsibilities of Sales Personnel Social, Ethical, and...
Sales ManagementSales Management
Social, Ethical, and Social, Ethical, and Legal Responsibilities Legal Responsibilities of Sales Personnelof Sales Personnel
Sales ManagementSales Management
Management’s Social Management’s Social ResponsibilitiesResponsibilities
Organizational StakeholdersOrganizational Stakeholders CustomersCustomers CommunityCommunity CreditorsCreditors GovernmentGovernment OwnersOwners ManagersManagers EmployeesEmployees SuppliersSuppliers
Sales ManagementSales Management
Management’s Social ResponsibilitiesManagement’s Social Responsibilities
Economic ResponsibilitiesEconomic Responsibilities Produce Goods and ServicesProduce Goods and Services Maximize ProfitsMaximize Profits
Legal Responsibilities•Fulfill their Economic Goals Within a Legal Framework
Sales ManagementSales Management
Management’s Social ResponsibilitiesManagement’s Social Responsibilities
Ethical ResponsibilitiesEthical Responsibilities Act with Equity, Fairness & ImpartialityAct with Equity, Fairness & Impartiality Respect the Rights of IndividualsRespect the Rights of Individuals
Discretionary Responsibilities
•Voluntary & Guided by Company’s
•Desire to Make Social Contributions
Sales ManagementSales Management
Management’s Ethical Management’s Ethical ResponsibilitiesResponsibilities
““Ethics”Ethics” A set of moral principles A set of moral principles
and values that governs and values that governs the behavior of a person or the behavior of a person or a group with respect to a group with respect to what is right and wrong.what is right and wrong.
Sales ManagementSales Management
Management’s Ethical Management’s Ethical ResponsibilitiesResponsibilities
What is an Ethical Dilemma?What is an Ethical Dilemma? There is no uniform codification of There is no uniform codification of
ethics so differences and dilemmas ethics so differences and dilemmas about proper behavior can occur.about proper behavior can occur.
A situation when all of the choices A situation when all of the choices for a solution to a problem have for a solution to a problem have some element that could create some element that could create negative ethical or personal negative ethical or personal consequences.consequences.
Sales ManagementSales Management
Management’s Ethical Management’s Ethical ResponsibilitiesResponsibilities
What is Ethical Behavior?What is Ethical Behavior? Being honestBeing honest Maintaining confidence and trustMaintaining confidence and trust Following the rulesFollowing the rules Conduct yourself in proper Conduct yourself in proper
mannermanner Treat others fairlyTreat others fairly Loyalty to company and associatesLoyalty to company and associates Carry your share - 100% effortCarry your share - 100% effort
Sales ManagementSales ManagementManagement’s Ethical Management’s Ethical
ResponsibilitiesResponsibilities
Company to Salesperson Company to Salesperson dilemmas:dilemmas:Level of Sales PressureLevel of Sales Pressure
Setting Sales Goals Setting Sales Goals (realistic/obtainable)(realistic/obtainable)
Management StyleManagement Style
Sales ManagementSales ManagementManagement’s Ethical Management’s Ethical
ResponsibilitiesResponsibilities
Company to Salesperson Company to Salesperson dilemmas:dilemmas: Territorial DecisionsTerritorial Decisions
Expanding TerritoriesExpanding Territories Decreasing TerritoriesDecreasing Territories Creating House AccountsCreating House Accounts
Sales ManagementSales ManagementManagement’s Ethical ResponsibilitiesManagement’s Ethical Responsibilities
Company to Salesperson dilemmasCompany to Salesperson dilemmas ::To Tell The Truth?To Tell The Truth?
PerformancePerformance At TerminationAt Termination
The Ill SalespersonThe Ill Salesperson Alcohol or Drug Abuse Alcohol or Drug Abuse
TreatmentTreatmentEmployee RightsEmployee Rights
Sales ManagementSales Management
Management’s Ethical Management’s Ethical ResponsibilitiesResponsibilities
Company to Salesperson Company to Salesperson dilemmasdilemmas ::Employee RightsEmployee Rights
Termination-at-willTermination-at-will PrivacyPrivacy Sexual HarassmentSexual Harassment
Sales ManagementSales ManagementManagement’s Ethical ResponsibilitiesManagement’s Ethical Responsibilities
Company to Salesperson dilemmasCompany to Salesperson dilemmas ::Reason to Respect Employee Reason to Respect Employee RightsRights
High quality of work lifeHigh quality of work life Attracting/Retaining good peopleAttracting/Retaining good people Avoid costly back-pay and awardsAvoid costly back-pay and awards Establish balance between employee Establish balance between employee
and employer rights/obligationsand employer rights/obligations
Sales ManagementSales ManagementSalesperson’s Ethical ResponsibilitiesSalesperson’s Ethical Responsibilities
Salesperson ethics re: The CompanySalesperson ethics re: The CompanyMisuse of Company AssetsMisuse of Company Assets
AutomobilesAutomobiles Expense AccountsExpense Accounts SamplesSamples Damaged merchandise creditsDamaged merchandise credits
MoonlightingMoonlighting
Sales ManagementSales ManagementSalesperson’s Ethical ResponsibilitiesSalesperson’s Ethical Responsibilities
Salesperson ethics re: The CompanySalesperson ethics re: The CompanyCheatingCheating
ContestsContests Holding SalesHolding Sales Overloading CustomerOverloading Customer
Affecting Fellow SalespeopleAffecting Fellow Salespeople Taking CustomersTaking Customers
Sales ManagementSales ManagementManagement’s & Salesperson’s Management’s & Salesperson’s
Mutual Ethical ResponsibilitiesMutual Ethical Responsibilities
How to Treat The CustomerHow to Treat The CustomerBribes or GiftsBribes or Gifts
OfferingOffering Buyer OriginatedBuyer Originated
MisrepresentationMisrepresentation ““Sales Puff” vs. Statements of Sales Puff” vs. Statements of
FactFact Legal RamificationsLegal Ramifications
Sales ManagementSales ManagementManagement’s & Salesperson’s Management’s & Salesperson’s
Mutual Ethical ResponsibilitiesMutual Ethical Responsibilities
How to Stay LegalHow to Stay Legal Know capabilities and characteristics Know capabilities and characteristics
of of company products and servicecompany products and service Statements of Praise vs. Statements Statements of Praise vs. Statements
of Factof Fact Educate Customers before the SalesEducate Customers before the Sales State Product Capabilities AccuratelyState Product Capabilities Accurately Know Technical SpecificationsKnow Technical Specifications
Sales ManagementSales ManagementManagement’s & Salesperson’s Mutual Management’s & Salesperson’s Mutual
Ethical ResponsibilitiesEthical Responsibilities
How to Stay LegalHow to Stay Legal Avoid Exaggerated Product Safety Avoid Exaggerated Product Safety
ClaimsClaims Know Federal and State LawsKnow Federal and State Laws Keep Current with Design Changes and Keep Current with Design Changes and
RevisionsRevisions Avoid Opinions Stick to Testing Avoid Opinions Stick to Testing
StatisticsStatistics Never Overstep Authority (Pricing or Never Overstep Authority (Pricing or
Policy)Policy)
Sales ManagementSales ManagementManagement’s & Salesperson’s Management’s & Salesperson’s
Mutual Ethical ResponsibilitiesMutual Ethical Responsibilities
How to Treat The CustomerHow to Treat The CustomerPrice DiscriminationPrice Discrimination
Customers who buy similar Customers who buy similar quantities should receive quantities should receive same pricingsame pricing
Tie-in SalesTie-in Sales Violates Clayton Antitrust ActViolates Clayton Antitrust Act
Sales ManagementSales ManagementManagement’s & Salesperson’s Management’s & Salesperson’s
Mutual Ethical ResponsibilitiesMutual Ethical Responsibilities
How to Treat The CustomerHow to Treat The CustomerExclusive DealershipExclusive Dealership
Purchase from one Purchase from one manufacturer - Clayton Actmanufacturer - Clayton Act
ReciprocityReciprocity ““I’ll Buy Yours If You’ll Buy I’ll Buy Yours If You’ll Buy
Mine”Mine” FTC and Justice ScrutinizeFTC and Justice Scrutinize
Sales ManagementSales ManagementManagement’s & Salesperson’s Management’s & Salesperson’s
Mutual Ethical ResponsibilitiesMutual Ethical Responsibilities
How to Treat The CustomerHow to Treat The CustomerSales RestrictionsSales Restrictions
““Cooling Off” Laws - 3 daysCooling Off” Laws - 3 days Green River OrdinancesGreen River Ordinances
Sales ManagementSales ManagementInternational Ethical IssuesInternational Ethical Issues
U.S. Laws Do Not Stop at The BorderU.S. Laws Do Not Stop at The Border Employees of American Employees of American
Business Should Know the Business Should Know the LawLaw
Stick to Features and Stick to Features and Benefits and Sell to Benefits and Sell to Companies Not IndividualsCompanies Not Individuals
Sales ManagementSales ManagementSelling EthicsSelling Ethics
Surveys Indicate Managers’ ExperienceSurveys Indicate Managers’ Experience
Most Managers:Most Managers: Face Ethical ProblemsFace Ethical Problems Believe Managers and Believe Managers and
Employees Should Be More Employees Should Be More EthicalEthical
Are More Ethical with Friends Are More Ethical with Friends than Strangersthan Strangers
Lower Ethics to Meet Job GoalsLower Ethics to Meet Job Goals
Sales ManagementSales ManagementSelling EthicsSelling Ethics
Surveys Indicate Managers’ Surveys Indicate Managers’ ExperienceExperience
Most Managers:Most Managers: Are Aware of Ethical Issues in Are Aware of Ethical Issues in
Industry and CompanyIndustry and Company
Believe Ethics Can Be affected Believe Ethics Can Be affected by Supervisors and Company by Supervisors and Company EnvironmentEnvironment
Sales ManagementSales ManagementSelling EthicsSelling Ethics
Management Practices Help Management Practices Help ResponsivenessResponsiveness
Some Guidelines:Some Guidelines: Top Management Takes LeadTop Management Takes Lead
CEO, President, Vice Presidents CEO, President, Vice Presidents Must ChampionMust Champion
Carefully Select LeadersCarefully Select Leaders Establish/Follow Code of EthicsEstablish/Follow Code of Ethics
Sales ManagementSales ManagementSelling EthicsSelling Ethics
Management Practices Help Management Practices Help ResponsivenessResponsiveness
Some Guidelines:Some Guidelines: Establish/Follow Code of EthicsEstablish/Follow Code of Ethics
Principle BasedPrinciple Based Policy BasedPolicy Based
Create Ethical StructuresCreate Ethical Structures Ethical CommitteeEthical Committee Ethical OmbudsmanEthical Ombudsman
Sales ManagementSales ManagementSelling EthicsSelling Ethics
Management Practices Help Management Practices Help ResponsivenessResponsiveness
Some Guidelines:Some Guidelines: Encourage Whistle BlowingEncourage Whistle Blowing
““Silent Witness” ProgramSilent Witness” Program
Create Ethical Sales Create Ethical Sales EnvironmentEnvironment
Actions of Top-Level ManagersActions of Top-Level Managers
Sales ManagementSales ManagementSelling EthicsSelling Ethics
Management Practices Help Management Practices Help ResponsivenessResponsiveness
Some Guidelines:Some Guidelines: Establish Control SystemsEstablish Control Systems
Low Bid Review ProcessLow Bid Review Process Expense Report AuditsExpense Report Audits