Ethics in Personal Selling

Ethics and Personal Selling
• Ethics are the principles, governing behavior of an

individual or a group.
• These principles establish appropriate behavior, indicating
what is right and wrong.
• Ethics is doing the right thing, even if it is difficult or is not
to your advantage
• A GOLDEN RULE, “treat people the way that you would like
to be treated”
• Ethical values can vary from:
• Country to country
• Industry to industry
Difference b/w Ethics and Values
• Ethics are defined by moral principles; they are actions that are viewed by society as
“right,” “just,” or “responsible.”
• Values define what is important to you: they are your guiding principles and
beliefs, they define how you live your life, and they inform your ethics. While
certain values might be important to you, they may not be important to your best
friends or even every member of your family .
• Ethics and partnering relationships
Manipulation Persuasion is trying

eliminates or reduces to influence the
the buyer’s choice buyer’s decision, not
vs. force it.
unfairly.
3-4
McGraw-Hill/Irwin
Ethical Dilemmas in Business
• Not all behavior that is unethical is illegal. Companies frequently are faced
with ethical dilemmas that are not necessarily illegal but are just as
important to navigate. For example, if a travel company wants to attract a
lot of new customers, it can honestly state the price of a trip to Disney
World in its advertising and let customers decide if they want to purchase
the trip. This would be ethical behavior. However, if the company advertises
a free vacation in order to get customers to call, but the free vacation
package includes a $500 booking fee, it is unethical.
• One of the most visible positions in any organization in terms of ethics is

sales. That’s because it is the salesperson that comes in contact directly
with the customer. What the salesperson says and does is a direct
reflection of the organization and its ethics.
• Consider this ethical dilemma if you were a real estate agent.
You have just landed a fantastic listing: a home that in the hot
neighborhood that will surely sell quickly and yield a nice
commission for you. The seller tells you that the home
inspector suspects there is insect damage to the siding of the
house, but the seller says she has never had any problems.
Also, the seller feels so strongly about not disclosing this
information to prospective buyers that she said she would
rather go with a different agent if you insist on disclosing the
possible insect damage. What would you do?
• The right thing to do is to disclose anything that affects the

value or desirability of the home. Either withholding or
falsifying information is lying and therefore unethical.
• What if your employer asked you to do something
that you are not comfortable doing? For example, if
your employer asked you to complete the paperwork
for a sale even if the sale hasn’t been made, what
should you do?
• It’s best to say that you are not comfortable doing it;
never compromise your personal ethics even for your
employer. It’s also a good idea to see someone in the
human resources department if you have any
questions about the best way to handle a specific
situation
Lessons in Selling from the Customer’s Point of View
Is the Customer Always Right?
• The customer is always right, except when he asks you to do something
unethical. What should you do to uphold your ethics and maintain your
relationship
• Evaluate the situation with a clear head. Most unethical behavior is driven by
emotions such as fear, greed, stress, and status. Identify what is causing the
behavior but wait until you have some time to reflect.
• Don’t jump to conclusions; identify the circumstances. You might not know the
entire story so determine what you know and what you don’t know.
• Identify the criteria you are using to make this judgment. Is the behavior against
company policy? Is it against the law? Is it against your personal code of ethics?
• Seek counsel. Always ask a trusted colleague, supervisor, or human resources
representative for advice. Chances are, she has experienced the same situation
and can provide insight from the company’s perspective and policies.
Factors Affecting Ethical Behavior of
Salespeople
3-9
McGraw-Hill/Irwin
Checklist for Making Ethical Decisions
 Would I be embarrassed if a customer found out about this behavior?

 Would my supervisor disapprove of this behavior?
 Would most salespeople feel that this behavior is unusual?
 Am I about to do this because I think I can get away with it?
 Would I be upset if a salesperson did this to me?
 Would my family or friends think less of me if I told them about engaging in this sales activity?
 Am I concerned about the possible consequences of this behavior?
 Would I be upset if this behavior or activity were publicized in a newspaper article?
 Would society be worse off if everyone engaged in this behavior or activity?
The Gray Areas of Selling
These represent issues that, while not necessarily illegal, can cause great damage to sales
careers and companies.
1.The use of company assets, including abuses of equipment such as cars and computers, and
expense reports;
2. Customer relationships, which includes such abuses as overstocking, overselling,

overpromising, and underinforming;
3. Competitor relationships, including disparagement, tampering and spying;
4. Relationships with peers and supervisors, including such abuses as territory poaching and false
reporting;
5. Conflicts of interest, including improper disclosure;.

6. Gifts and entertainment in excess of corporate and customer policies
Companies should have a formal policy to guide sales people regarding
these Grey Areas.
Sales Ethics Compliance
• Commitment to Ethics from top-management is key to acceptance
and implementation down the hierarchy.
• Often Sales deptt. / function is treated with exceptions when
confronted with ethical dilemmas since Sales is the function which
drives Revenue.
• Exceptions create grey areas and system loopholes for shortcuts.
• Make ethics and values part of your sales presentation
• Say NO! and BE FIRM for any reported violations of code of ethics.
_______________________________________

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Ethics and Personal Selling

• Ethics are the principles, governing behavior of an

Manipulation Persuasion is trying

• One of the most visible positions in any organization in terms of ethics is

• The right thing to do is to disclose anything that affects the

 Would I be embarrassed if a customer found out about this behavior?

2. Customer relationships, which includes such abuses as overstocking, overselling,

3. Competitor relationships, including disparagement, tampering and spying;

5. Conflicts of interest, including improper disclosure;.

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