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An Experimental Investigation of Efforts to Improve Sales

Students' Moral Reasoning
a b
Terry W. Loe & William A. Weeks
a
Terry W. Loe (Ph.D., University of Memphis) is an Assistant Professor of Marketing at Baylor
University.
b
William A. Weeks (D.B.A., Indiana University) is a Professor of Marketing at Baylor University.
Published online: 24 Oct 2013.

To cite this article: Terry W. Loe & William A. Weeks (2000) An Experimental Investigation of Efforts to Improve Sales Students' Moral
Reasoning, Journal of Personal Selling & Sales Management, 20:4, 243-251

To link to this article: http://dx.doi.org/10.1080/08853134.2000.10754244

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 An Experimental Investigation of Efforts to
Improve Sales Students' Moral Reasoning
TerryW. Loe and William A. Weeks

This article reports the findings of a study that attempts to determine if sales students' moral reasoning
skills (Level of Cognitive Moral Development) can be improved through training. A pretest-treatment-
posttest design is used. Furthermore, an examination of gender differences in moral reasoning is conducted.

The results indicate that students' moral reasoning can be improved with classroom exercises. Evidence
also suggests that females reason at higher levels of moral development than do males, though there
appears to be no differential effect of ethics training on the moral reasoning skills between males and
females. Implications are provided for both higher education and sales organizations.

There is a gap in our understanding of ethics in the sales
area as it relates to sales managers and our understanding of
effective tools to aid sales managers in improving the ethical
reasoning of the sales force (Wotruba 1990). Despite empiri-
cal linkages, efforts devoted to ethics training have been criti-
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standing moral reasoning's related outcomes should be of
interest to sales organizations as well as researchers in the
area of business ethics. Goolsby and Hunt (1992) make clear
the rationale for studying CMD in a group context:

One rationale for pursuing positive research is that

cized for the lack of transfer of skills to the business context
(e.g., Furman 1990). Additionally, there seems to be a paucity
of research that helps sales managers and the sales force
improve their ability to address ethics related issues.
An integral part of ethical decision making is moral reason-
ing (Ferrell and Gresham 1985; Hunt and Vitell 1986). There
is considerable support for a moderate statistical relationship
between moral reasoning and ethical behavior, although moral
reasoning does not fully explain unethical behavior (Blasi
1980). Thoma (1985) in a review of studies that measured
moral reasoning found a pervasive linkage between moral
reasoning and behavior. Therefore, it appears that improved
moral reasoning skills could provide an avenue for sales orga-
nizations to improve ethical behavior in the sales force.
Moral reasoning has been researched as the underlying
cognitive structure referred to as cognitive moral develop-
ment (CMD) (Ferrell, Gresham, and Fraedrich 1989; Goolsby
and Hunt 1992). CMD reflects moral reasoning in the way
individuals develop, over time, an increasingly accurate view
and understanding of the nature of moral obligations in com-
plex social systems (Rest 1979). CMD approaches to ethics
training provide individuals with skills to reason through
ethically troublesome situations and they are considered more
effective than training methods that review complicated rules
and regulations provided by some codes of ethics (Harrington
1991). There is a need for the development and testing of
training programs based upon CMD principles that allow
more useful and transferable ethical decision-making skills.
Wotruba (1993) took the first step towards testing such a
program with a focus on sales organizations; he developed a
framework drawn from Rest's (1986) work on CMD theory
and his empirical research dealing with teaching ethical deci-
sion making.
Certainly research is necessary to see how employees' moral-
reasoning skills can be improved, especially in the area of
sales. Interventions to improve moral reasoning and under-
Terry W. Loe (Ph.D., University of Memphis) is an Assistant Profes-
sor of Marketing at Baylor University.
William A. Weeks (D.B.A, Indiana University) is a Professor of
Marketing at Baylor University.
a more ethical business environment may possibly
be achieved by understanding the processes through
which individual ethical decisions are made. With
such an understanding, organizations could take nor-
mative, proactive steps toward reducing ethical con-
flict and promoting ethical behavior (p. 55).
The current research effort extends applications-oriented
research in the area of sales ethics by empirically investigat-
ing changes in levels of cognitive moral development (CMD)
among college sales students. The study partially tests
Wotruba's (1993) framework in a sales classroom context (see
Table 2). The following sections first discuss CMD and de-
scribe how it is measured. Further sections develop hypoth-
eses and research questions based upon extant theoretical
and empirical research from the marketing ethics and CMD
literature. Then the framework suggested by Wotruba (1993)
is outlined. This framework's effectiveness is measured by
determining how it effects changes in CMD among a set of
college students. Specifically, the study examined changes in
the level of Cognitive Moral Development among a group of
sales students following a series of formal ethics training
treatments.
The Concept of Cognitive Moral
Development (CMD)
CMD theory suggests that moral development requires an indi-
vidual to have the ability to reason logically at higher and higher
levels (Kohlberg 1969). Kohlberg's (1969) research indicates that
an individual progresses through three levels of moral develop-
ment (preoonventional, conventional, and principled), with 2 stages
of development within each level. Table 1 summarizes a stage-wise
model of cognitive moral development.
Moral reasoning becomes increasingly complex as an indi-
vidual progresses through the stages. Progress involves the
individual's considering to a greater extent the possible alter-
native outcomes or impact of personal behavior on others. An
Journal of Personal Selling & Sales Management,
Volume XX, Number 4 (Fall 2000, Pages 243-251).
 244 Journal of Personal Selling & Sales Management

Table 1
Cognitive Moral Development Stages

Stage What is "Right" & Why

Level 1: Preconventional
Stage 1 Heteronomous morality Avoiding the breaking of rules that are backed by
punishment. Superior power of authority determines "right."
Stage 2 Instrumental purpose & exchange Following one's own interest and letting others do the
same. Following rules only when it is in one's self-interest.
"Right" is defined by equal exchange, a fair deal.
Level 2: Conventional
Stage 3 Mutual interpersonal expectations, Exhibition of stereotypical good behavior. Living up to
relationship, and interpersonal what is expected in a person's role. Respect for trust,
conformity loyalty, and gratitude. Belief in the Golden Rule, putting
yourself in the other person's shoes.
Stage 4 Social accord and system Making a contribution to society, group, or institution.
maintenance Fulfilling duties to which you have agreed. Point of view of
the system is maintained. Avoid breakdown of the system.
Level 3: Postconventional
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Stage 5 Social contract and individual rights Rules are upheld because they are a social contract;
however, nonrelative values are upheld regardless of
majority opinion. Concern for laws and duty is based upon
rational determination of overall utility. Welfare and rights
are protected.
Stage 6 Universal ethical principles Self-chosen ethical principles determine right. Laws and
social duties are valid only because they are based on
such principles. The individual respects the dignity of all
human beings in a decision and has personal commitment
to beliefs.

Adapted from Kohlberg (1984), Trevino (1986), and Goolsby and Hunt (1992)

individual who achieves the highest stage of CMD is less
egocentric. Considerable research supports Kohlberg's stage-
oriented sequence and attests to its generalizability across
populations and cultures (see Blasi 1980; Brabeck 1984; Gibbs
and Widaman 1982; Snarey 1985).
Measuring CMD
Kohlberg used in-depth interviews to measure CMD. The
interviews relied upon the individual's response to a set of
standardized scenarios with a different ethical dilemma pre-
sented in each scenario. These interviews proved to be time
consuming and very complex to administer. The Defining
Issues Test (DIT) was developed by Rest et al. (1974) to over-
come the limitations of Kohlberg's interviews. The over 500
studies that have used the DIT have reported high validity
and reliability.
Hypotheses and Research Questions
Baxter and Rarick (1997) suggest that training interven-
tions can advance individuals' moral reasoning patterns al-
lowing them to better integrate the interests of other stake-
holders in their decisions. Jones and Hiltebeitel (1995) also
found that organizational support (ethics training being one
form) positively influences ethical decision processes. A num-
ber of studies have been conducted with positive results to
determine if increases in CMD can be tied to training pro-
grams aimed at helping participants to think through mor-
ally controversial dilemmas (e.g., Power et al. 1989; Rest
1986). Only Penn and Collier (1985) tested (with positive
results) any type of training to improve CMD in a business
context. No studies could be found in the marketing discipline
or in the sales area that examine the influence of ethics
training on CMD. Drawing from the non-marketing litera-
ture, the following hypothesis is offered:
Hl: Ethics training using the sales context and based
upon CMD principles leads to improved moral
reasoning among sales students.
Some past research indicates that females reason at higher
levels of moral reasoning than do males (Goolsby and Hunt
1992; Weeks et al. 1998). However, Thoma's (1985) meta-analy-
sis suggests that, though females score higher than males on
CMD, the difference is not statistically significant. Rest's (1986)
view with respect to the CMD difference is that women and
men develop along similar lines. So the question of whether or
not the genders differ with respect to CMD necessitates testing
and indicates the following hypothesis and research question:
H2: Females reason at higher levels of moral devel-
opment than do males.
RQl: Is the CMD offemales and the CMD of males influ-
enced differently by the same ethics training?
A Framework for Teaching Ethical Decision
Making in Marketing
Trevino (1992) suggests that business ethics education based
upon CMD should significantly influence moral reasoning
 Fall 2000
Table 2
Wotruba's (1993) Components of the Ethical Decision-Making Process
Step in the Decision Process Actions in This Step
1. Cognizance Recognizing options and outcomes
2. Assessment Evaluating each option
3. Intention Selection of best option
4. Decision/Action Implementation of chosen action
Source: Wotruba, Thomas R. (1993), "A Framework for Teaching Ethical Decision Making In Marketing," Marketing Education Review, 3
(Summer), 2-8.
and might be used in corporate training environments as well
as in the higher education environment. Wotruba (1993) de-
veloped such a CMD framework based upon Rest's (1986)
model ofCMD.
Wotruba (1993) outlines four components that comprise
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the ethical decision-making process after recognizing an ethi-
cal problem. They include:
1. Recognize what actions are possible in a given situ-
ation, what the outcomes would be, and who would
be affected by each alternative outcome;
2. Determine which alternative is morally right and
therefore represents what one ought to do in that
situation from an ethical perspective;
3. Assign priority to ethical and moral values rela-
tive to other values (such as economic), producing
the intention to do what is ethically right; and
4. Convert the intention into action - an ethical
decision and/or behavior.
Wotruba (1993) further explains these four components as
steps in the decision process and describes the actions of the
individual that correspond to the step and the related ethical
issues. Table 2 summarizes the steps Wotruba (1993) outlined.
The Wotruba (1993) framework is incorporated in the treatment
employed in the present study in an effort to loosely test its validity.
The following sections relate the incorporation ofWotruba's (1993)
framework within the experimental design tested.
Methodology
Sample and Data Collection Procedures
Sample. The sample included 113 junior and senior stu-
dents enrolled in professional selling classes at a midsize
(approximately 13,000 students) southwestern university. The
sample contained 60 male and 53 female students.
A pretest-treatment-posttest research design was imple-
mented in the present study. Students' level ofCMD was mea-
sured at both pre-test and posttest. Data were collected at two
points in time 4 months apart (the first and last days of the
school semester) using the Defining Issues Test (DIT) (Rest et
al. 1974). The DIT includes an internal reliability check called
an M-score (for meaningless) that determines if subjects are
following instructions and provides evidence as to social desir-
ability response bias. Individuals who endorse meaningless
items contained in the DIT are removed from the sample.
Substantially incomplete questionnaires were discarded and
respondents who did not complete both pre- and posttests (pri-
245
Ethical Issues
Who is affected by each option, and how are they affected?
What are the moral consequences of each option (ethics
theories, moral judgment stages)?
What option to favor in light of one's values and priorities
(ethical vs. economic vs. political, etc.)?
What action to take and how to justify it (dealing with
blocks, rationalizations, reinforcements/rewards)?
marily due to absences) were not included in the final analysis.
After considering these criteria, a total of 74 respondents (39
male and 35 female) remained in the final analysis (65.5%).
Control Group. A control group was utilized to discriminate
between systemic effects and treatment effects. This group
consisted of participants who went through the same course
material in professional selling. Control group participants
were eliminated from analysis according to their M-scores
and incomplete questionnaires in the same manner as the
treatment groups. This procedure reduced the control group
to 15 participants (9 males, 6 females). The treatment de-
scribed below, as well as any discussions of ethics, was not
used with the control group. The pre and posttests were ad-
ministered in the same manner used for the test groups. The
control group was debriefed following the administration of
the posttest.
Statistical Analysis
The one group pretest-posttest design calls for simple pro-
cedures to handle the data generated (Spector 1981). Paired
t-tests were used to test for statistical significance from pre-
test to posttest (Winer 1971).
Defining Issues Test (DIT)
The DIT utilizes either a six or three story format.
Cronbach's alphas reliability for the six-story and the three-
story format have been reported at a=. 77 and a=. 76, respec-
tively (Rest et al. 1974). The current study utilized the three-
story format due to the time limitation. The three scenarios
include the Heinz, Prisoner and Newspaper stories (see Rest et
al. 1974). DIT scoring was performed by the Center for the
Study of Ethical Development at the University of Minnesota.
The DIT scores respondents across the different stages of
moral development. The most important score provided is the
N2 Score. The N2 score is considered a useful general index of
moral judgment development (Rest et al. 1997), which is the
focus of this research.
While the DIT previously used a P-score, recent meta-analy-
sis research (Rest et al. 1997) reveals the N2 outperforms the
P at a statistical level in excess of p< .001. The N2 has been
shown to provide better trends and significantly outperforms
the P score when conducting studies of educational interven-
tions (i.e., pre and post test measures) and has better internal
validity than the P score (Rest et al. 1997). The N2 Score
reflects the relative importance that subjects give to "prin-
 246 Journal of Personal Selling & Sales Management
Table3
Ethical Issues in Sales

Relationships with Customers

• Practicing deception
• Engaging in bribes, gifts and entertainment
• Sharing confidential information
• Practicing back-door selling
Relationships with the Company
• Mishandling expense accounts
• Reporting work, time and related activities
• Engaging in job switching (proprietary information)
Relationships with Colleagues
• Engaging in sexual harassment
• Pursuing individual goals through sabotage of others
Relationships with Competitors
• Making false claims
• Sabotaging competitor products
• Talking poorly of competitors policies, services, products or representatives
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cipled" moral considerations (i.e., Stage 5 and Stage 6 items
in Table 1). The N2 score consists of two components: the
degree to which P items are prioritized plus the degree to
which the lower stages of CMD are rated lower than the
ratings of the higher stages. The second part of N2 is based
upon rating data rather than ranking data. These two parts
are combined into one score for each participant. For a full
discussion of how N2 is calculated please see Rest et al. (1997).
Aggregate results for the N2 indicate that junior high school
age students usually score in the 20s, senior high school stu-
dents in the 30s, and college students score in the 40s. Gradu-
ate students score in the 50s, and moral philosophers score in
the 60s. The N2 scores, like the P scores, are based upon a
continuous scale ranging from 0 to 95.
Treatment
The treatment consisted of five in-class ethics training ses-
sions distributed over an eight-week period. The five weeks
following the in-class training sessions involved five ethics
related interventions in a series of role-plays in which the
respondents were participants or watched the role-play via a
television monitor. Examples of both the ethics training ses-
sions (identified as Professional Selling Ethical Analysis Ex-
ercise) and the role-play ethics related interventions are in-
cluded in Appendices A and B.
Ethics Training Sessions
The participants were engaged in approximately thirty-
seven and one half hours of class that related to the theory of
professional selling. In addition, during the sessions the par-
ticipants were engaged in exercises designed to develop sell-
ing skills, such as planning for a sales call, how to have more
effective presentations, adapting to different buyer personali-
ties or communication styles, gaining commitment from the
buyer, and overcoming objections.
During the fourth and fifth class sessions, the participants
were introduced to legal and ethical applications or problems
common to the sales profession. Prevalent ethical issues re-
lating to customers, the company, colleagues and competitors
were presented and then discussed. Table 3 summarizes the
issues discussed with the students. The other ethics training
sessions, called Ethical Analysis Exercises, were interposed
individually during the classes that corresponded with an
ethical issue topic.
For example, when the presentation and discussion of pros-
pecting was introduced the participants engaged in an ethics
session concerning prospecting. The participants were involved
in five such sessions which were entitled: ''Prospecting Dilemma,"
''Planning: Gathering Precall Information," "Sales Call," "Objec-
tions" and "Gaining Commitment" (see Appendix A).
Each of the training sessions began with the presentation
of an ethical dilemma based upon some realistic ethical sales
situation. Students were assigned to a 4 or 5 person group.
The students were then asked to consider the scenario as a
group. They were asked to first consider the alternative courses
of actions presented in the scenario (See Wotruba's step 1 in
Ethical Decision Process). Additionally, they were asked to
consider what other options the characters in the scenario
had available (Table 2, Step 1), and what the consequences of
each action associated with the alternative behaviors would
be for each of the stakeholders (Table 2, Step 1 and 2). The
students as groups were then required to form a consensus
and recommend a course of action based on what they felt to
be the best option (Table 2, Step 3). Discussion and debate
between the groups ensued after each group revealed their
decision (Table 2, Steps 1, 2, and 3). When the professor was
queried concerning the most appropriate course of action, the
professor conveyed what might be considered the most ethi-
cal response in the sales profession.
Role-Play Ethics Interventions
The participants engaged in a series of sales call role-plays
following the class training sessions. Each student was in-
volved as a salesperson and as a buyer during this part of the
training and was given guidelines concerning the character
and situation as both a buyer and a salesperson (see Appen-
dix B). The salesperson was provided information concerning
the buyer upon whom he/she was calling and the buyer was
given both the salesperson's information as well as additional
information concerning hidden needs and objections that were
to be expressed during the role-play.
 Fall 2000 247

Table 4
Changes In Cognitive Moral Development

Group Statistics
Std. Std. Error
Mean N Deviation Mean

Pre-training 38.79 74 12.146138 1.4119599

Post-training 43.32 74 11.807843 1.3726339

Paired Samples Test

Significance
df (2-tailed)

3.201 73 .002

Gender Differences in GMO

Group Statistics
Gender Mean N SD SE Mean
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Pre-training Male 35.58 39 10.586135 1.6951382

Female 42.36 35 12.905938 2.1815017
Post-training Male 40.81 39 11.460422 1.8351362
Female 46.10 35 11.720748 1.9811681

Independent Samples Test

Mean Std. Error

Df Diff. Diff.

Pre-training Equal Var. Assumed -2.481 72 .015 -6.78 2.73

Post-training Equal Var. Assumed -1.961 72 .054 -5.29 2.70

Paired Samples Statistics

Mean N SD SE Mean

Male Pre-training 35.58 39 10.59 1.70

Post-training 40.81 39 11.46 1.84
Female Pre-training 42.36 35 12.91 2.18
Post-training 46.10 35 11.72 1.98

Paired Samples Test

N df Sig. (2-tailed)

Male 2.690 39 38 .011

Female 1.798 35 34 NSD

The role-plays were conducted in a sales lab designed as a
private office and equipped with a ceiling mounted video cam-
era and hidden microphones. Those participants not engaged
in the role-play watched and listened to the role-play via a
remote TV monitor. Each role-play lasted approximately
twelve to fifteen minutes. The role-plays in which the ethics
interventions were included were interspersed throughout
the five-week period. The buyers in the role-play introduced
predetermined (though unknown to the student salesperson)
ethical situations. The student salesperson had to determine
and implement a response on the spot (Table 2, Step 4). The
student salesperson was unaware of when or if they were
going to be faced with an ethical dilemma during their par-
ticular role-play.
After each role-play that included an ethical dilemma, the
class and instructor discussed the situation, the impact the
decision might have on the various parties involved and pos-
sible alternative courses of action. The class in most cases
formed a consensus opinion as to the most appropriate re-
sponse, and the instructor provided insight as to the most
acceptable behavior according to industry standards and the
various codes of ethics for professional salespeople (Table 2,
Steps 1, 2, and 3). However, no specific codes of ethics were
discussed in detail.
 248
Results
The Effects of CMD Principled Training on Moral Reason-
ing. Results from the current study summarized in Table 4
revealed a statistically significant increase (t=3.20; p<.002) in
the N2 scores for the students in the treatment group pretest
and posttest measurement. These findings support Hypoth-
esis 1. Means reported for the pre and posttest were 38. 79
and 43.32, respectively. The paired samples statistics and
tests are presented in Table 4.
The mean DIT scores for the control group were tested for
significant differences with the mean scores for the treatment
group. The pretest N2 scores of the control and treatment
groups were not statistically different (t=-1.07; p =.299;
means=34.23 and 38.79, respectively); however, the posttest
revealed a significant difference (t=-2.07; p=.05; means=37.52
and 43.32, respectively). Additionally, the control group was
tested to determine if a significant change occurred during
the treatment period. Though there was an increase in the
N2 score, the change was not statistically significant (t=.929;
p=.369; pretest mean=34.23; posttest mean=37.52).
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The relationship between moral reasoning and gender. Fe-
males reason at higher levels of moral development than do
males. Females registered statistically significantly higher
DIT scores than did the males on both the pretest and posttests
(Table 4). Hypothesis 2 is supported.
Does ethics training have a differential impact according to
gender? Both male and female participants experienced a
significant increase in their N2 scores during the treatment
period (Table 4). Paired samples t statistics and tests are
presented in Table 4. The paired samples tests parallel the
group-based tests.
Discussion
Moral Reasoning
The findings indicate that individual moral reasoning can
be influenced through CMD training. The four components
proposed by Rest (1986) and developed into a framework for
teaching ethical decision-making by Wotruba (1993) appear
to provide a foundation upon which to build an effective sales
ethics-training program.
CMD ethics training methods employing sales role-plays
and sales specific scenarios that introduce ethical dilemmas
appear to provide an opportunity to discuss and reason through
the moral aspects of on-the-spot decisions that must be made
in such situations. The ethics training introduces a reasoning
process that considers the ramifications to relevant parties of
certain business decisions made by salespeople and their cus-
tomers in a sales setting.
Kohlberg (1984) suggests that higher levels of moral rea-
soning involve a more complicated logical process. Utilizing
this reasoning process through repeated practice in role-plays,
exposure to others' responses and analyses of ethical situa-
tions and discussion with peers and more experienced indi-
viduals (faculty) offers the opportunity to develop a greater
ability to reason and sort through the morass of ethical dilem-
mas individuals face in the workplace.
Gender Differences
Differences in CMD. Identifying that females reason at
higher levels of CMD is not surprising. Findings in the cur-
Journal of Personal Selling & Sales Management
rent study are consistent with those of Goolsby and Hunt
(1992), who looked specifically at CMD. Furthermore the re-
sults of this study are in line with a number of other empirical
studies regarding ethical issues (e.g., Bass, Barnett and Brown
1998; Bellizi and Hite 1989; Chonko and Hunt 1985; Dawson
1992; Ferrell and Skinner 1988; Weeks et al. 1998). There is
theoretical support for the empirical findings suggesting gen-
der differences.
Gilligan's (1982) research in gender socialization theory sug-
gests that women are conditioned to reason differently concern-
ing moral issues and, therefore, exhibit greater caring than do
men. Bass, Barnett and Brown (1998) reasoned that because
women rely more heavily than do men on deontological norms
(rules based), they are more idealistic or ethical than are men.
Men are more relativistic and tend to bend the rules in order to
achieve self-interest based goals (Bass, Barnett and Brown
1998), which is contrary to higher levels of moral reasoning as
determined by CMD measurement.
Does ethics training impact females to a different degree
(greater or less) than males? Males and females are both
positively influenced by ethics training. In addition, our analy-
ses found no significant difference in the degree of increase in
moral reasoning scores. This finding may indicate that there
is no need for differentiated types of ethics training for males
and females. Ethics training that is "separate but equal" would
be both costly and replete with legal pitfalls. That men and
women appear to respond equally to at least certain types of
training is good news.
Implications
This exploratory study suggests that organizations can train
salespeople to improve ethical reasoning through role-plays
and discussion of contingency based scenarios. The need to
support and promote ethical behavior is not a highly debat-
able issue. Even when improvements are incremental, orga-
nizations can gain momentum in efforts to improve the ethi-
cal environment of business. The communities in which orga-
nizations carry on business demand a certain level of moral
behavior. Additionally, if further empirical work supports a
positive link between moral reasoning and performance, or-
ganizations may have found a means to improve their perfor-
mance for stakeholders, while still being good citizens.
The how-to aspects of improving individual ethics have not
been explored. This study explores one avenue for improving
moral reasoning.
Higher Education
A respectable body of research provides suggestions as to
how business ethics may be taught or integrated into busi-
ness school curriculum (Dunfee and Robertson 1988; Herndon
1996; Anderson 1997; Baxter and Rarick 1997; Cragg 1997;
Oddo 1997; Raisner 1997; Wolfe and Fritzsche 1998). How-
ever, with few exceptions (e.g., Delaney and Sockell 1992),
studies have not examined the effectiveness of ethics training
in any setting.
There is some evidence that business schools promote ques-
tionable behavior in teaching students how to be successful.
Lane, Schaupp and Parsons' (1988) findings indicate that
students in business schools perceive that behavior required
to be successful in business runs contrary to societal ethics
and the business community.
 Fall 2000
Sales Organizations
The ethics training modules utilize ethical dilemmas com-
mon to the sales profession, and provide sales instructors with
a tool to impact the ethics of future salespeople. Widespread
utilization of this ethics training framework in business sales
classes offers a mechanism that could impact the careers of the
salespeople as well as the companies for which they work.
Evidence exists to tie good sales ethics to higher sales per-
formance. Some skeptics believe, though they may not out-
wardly express the belief, that there is a need to be at least a
little unethical in order to succeed. In the past many manag-
ers and executives anecdotally ascribed business success with
higher levels of ethical behavior though no empirical evidence
was forthcoming. Recently, however, several researchers have
begun to accumulate empirical support for the mantra, "Good
ethics is good business." Loe and Ferrell (1997) found that
when employees perceive the climate of their company to be
more ethical they were more likely to be committed to and
support the quality initiatives of management, as well as
becoming more focused on meeting the needs of the custom-
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ers. In addition, Loe and Ferrell (1997) found that greater
trust exists within the organization when employees perceive
higher levels of ethical climate. Kennedy (1994) supports a
positive association between customers' perceptions of corpo-
rate ethics and trust toward the company. These attitudes
relate to better business performance through greater coop-
eration and higher levels of efficiency.
The findings of the current study concerning gender differ-
ences suggest that possibly males need more attention when
considering ethics training implementation. However, both
males and females realized positive effects from the sales
ethics instruction and exercises.
These findings suggest the importance of effective ethics
training to corporations that depend on a sales force to both
acquire and maintain long-term business relationships. These
findings also provide a starting point for corporations engag-
ing in sales and ethics training.
Limitations
Discussions of ethics are often biased by what respondents
consider acceptable answers or behavior. The DIT attempts to
offset this particular problem with the use of its "M" score. Also,
this project involved short-term measures of changes in ethical
reasoning. Transfer ofCMD skills to the workplace needs to be
rigorously assessed. The opportunity for individuals to use moral
reasoning in an ethical situation arises, in most instances,
unexpectedly. Ethical decisions may have to be made within an
hour of ethics training or six months later. Determining the
lasting effects of ethics instruction and training is necessary for
organizations to schedule periodic training sessions.
When analyzing how interventions might impact ethical
decisions and moral reasoning, one must consider the longi-
tudinal impact of such treatments. We have begun with a
cross-sectional study, but this research should only be a be-
ginning. Additional, longitudinal analysis is necessary in or-
der to determine fully the effectiveness of ethics training.
Future Research Directions and Conclusions
This study used a student sample, and though efforts were
made to replicate training given in the business environment,
a next step is to conduct the same experiment using sales-
249
people. The salesperson's integrity can have a large impact on
the success or failure of the organization. Organizations and
academicians are also interested in the factors that influence
performance (see Churchill et al. 1985). In particular, research
should be undertaken to better understand the relationship
between moral reasoning and performance in the sales force.
Regardless of the outcomes of moral reasoning, society re-
quires organizations to be more ethical. Interventions must
be developed to improve the ethical environment of business.
This study takes one step toward identifying one effective
treatment. The treatments can also be easily modified to fit
any industry. Researchers should implement a cross-sectional
study and attempt to stratify the sample by gender, industry
and type of organization (service vs. product oriented). This
would help identify the effectiveness of this particular meth-
odology by setting.
Additionally, researchers need to manipulate the treatments
themselves to determine what differences may occur in moral
reasoning from the different training methods used. The dif-
ferent methods may include the use of different types of eth-
ics scenarios that might cover additional ethical issues, such
as those included in Table 2. Researchers may utilize differ-
ent numbers of scenarios to determine if there is a point of
diminishing returns, and if there is an "optimal" number of
interventions in a given time period. There is a need to parcel
out the treatment effects of the use of role-plays vs. simple
exercises that do not require additional time and effort spent
on scripts and the role-play settings.
A question that needs to be answered concerns the long-term
transfer of ethics training in sales as well as other functional
areas of the company. Additional measurements on the same
sample at three months, six months, and one year will provide
valuable insight into the long-term effects of ethics training. If
more than one intervention is needed, how many, and how
often does ethics training need to recur to be effective?
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Appendix A
Professional Selling Ethical Analysis Exercise

PROSPECTING DILEMMA

You are a salesperson for 1•1 Communications and have finished your initial training. Your major product line includes beepers and
cellular phones. The sales manager has indicated that you can earn an additional $1000 if you find 100 new qualified prospects
during your first week in the field. Most of the other new salespeople are making cold calls on area businesses and have been only
mildly successful. A friend of yours just quit working for your main competitor and has kept the confidential customer files from her
company and offered to sell them to you for $100. The files contain 250 potential customers who have been labeled as "highly"
likely to purchase a beeper or cellular phone in the next 6 months. What should you do?

A. Tell her thanks, but you feel it would be dishonest and will cold call like everyone else.
B. Negotiate for a lower price, since you are good friends.
C. Go ahead and pay her the $100 and get the names. Your company has a better product and the customers will be happier
buying from you.
D. Tell her no, and report the incident to your sales manager.
E. Call your competitor and let them know what happened and then tell your company legal counsel.
 Fall 2000 251
Appendix B
1•1 Communications Pager: Bob's Computer Services, Inc.

Salesperson Information:
You are a salesperson for Centrex Communications, Inc. in the state of Texas. Today you are calling on Jason Dean, Sales
Manager for Bob's Computer Services in Alfalfa, Texas. Bob's Computer Services is a $800 million corporation with headquarters
located in Chicago, Illinois, and has offices located throughout the US. This company specializes in offering its customers work
systems and forms, labeling products, direct mail printing and more. Recently you met Bob Prude, the regional recruiter for Bob's
Computer Systems, at a friend's party. Bob suggested you might want to contact Jason Dean in the Ft. Worth office to determine if
his salespeople could use a pager program. Bob told you that Jason is a graduate of State University and has six salespeople
reporting to him. Rather than take the path of least resistance, your sales manager expects you to sell the higher priced pager if it
is consistent with your customer's needs.

Buyer Information:
You are Jason Dean, sales manager for the Ft. Worth branch of Bob's Computer Services. You have been working at the Ft. Worth
office since your graduation from State University three years ago. The job has turned out to be a great opportunity. Matter of fact
you have just found out that you are being considered for opening up a new office in Albuquerque, New Mexico. Today you will be
meeting with a salesperson from Centrex Communications regarding their pager program. The rep called you and explained that
he had spoken to Bob Prude at a local party, who suggested that you may have an interest in listening to his presentation. While
you are not convinced that your salespeople need to be required to use a particular planning system, you do think it would be
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politically correct for you to visit with the Centrex salesperson. After all, what do you have to lose but the time for the sales
presentation.

Needs:
1. Your regional manager has asked you to investigate ways to bring your operating costs down.
2. You are not satisfied with the service you have received from your current cellular telephone supplier.
3. You would like to increase the chances of getting the promotion.

Objections:
1. Before the salesperson sits down, tell him that you were under the impression that the appointment was scheduled for next
week.
2. One of your LARGE prospective accounts has indicated that they might do business with Bob's Computer Services if you
reciprocate and use their pager program.