Management’s social responsibility (CSR) What Influences Ethical Behavior?

is management’s obligation to
• make choices Organization role
contribute the welfare and interests Individual Role
• take actions of society + organization Level 3 :Principled (less than 20 %)
lives by own code
What is the right thing to do?”
An Organization’s Main Responsibilities
Level 2: Conventional (most)
upholds legal laws At best, most
Discretionary employees in firm
What am I legally required to do?”
Contribute to operate at level two
the community Ch.3 Level 1: Preconventional: (few)
3-Ethical + Quality of Life Ethics first acts in own best interest
Do what is right then What can I get away with?”
2-Legal customer Moral Development Bell Curve
Obey the law relationship
1-Economic
Be profitable
Level Level 2 Level
Ethics 1 3
is the code of moral principles and values that govern the behaviors of a person People are most likely to make their moral and ethical decisions based on:
or a group with respect to what is right or wrong whatever feels right or comfortable in a situation
Ethical behavior But To Have Ethical Guidelines You Need
refers to treating others fairly A point of reference that:
What is an Ethical Dilemma?
Fixed (whether people): separate from you No one else may influence
A situation in which each alternative choice or behavior has some undesirable
Believe it or not ,Like it or not
elements due to potentially negative ethical or personal consequences Know about it or not
 World Religions Embrace the ethical guideline Salespeople’s Ethics in Dealing with Their Employers
“Do to others as you would have them do to you.”: • Misusing company assets
• Moonlighting
Organizational Stakeholders • Cheating
• Affecting other salespeople
is any group inside or outside the organization that has a stake
• Technology theft
(Interest) in the organization’s performance
• may have similar or different interests in the organization: Benefits of Respecting Employees Rights
CCC Gomes More productive employees
Attracting good sales personnel
External Internal Reducing legal costs
• Customers • Owners Reducing wage increase demands
• Community • Managers
• Creditors • Employees Ethics in Dealing with Customers
• Government
• Suppliers
Bribes Misrepresentation Price discrimination Tie-in sales
Ethics in Dealing with Salespeople Selling the same To buy a particular line of merchandise,
quantity of the a buyer may be required to buy other,
Five ethical considerations faced by sales managers:
same product to unwanted products.
different buyers at
1- Level of sales pressure
different prices
2-Decisions affecting territory
3-To tell the truth?
4-The ill salesperson Exclusive dealership Reciprocity Sales restrictions
5-Employee rights Buying a product from Cooling-off laws
• termination-at-will someone if the person Green River ordinances
• privacy or organization agrees
• sexual harassment to buy from you
Managing Sales Ethics

• Follow the leader

• Leader selection is important
• Establish a code of ethics
• Create ethical structures
• Encourage whistle-blowing
• Create an ethical sales climate
• Establish control systems

The International Side of Ethics

• Guidelines for conducting international business may be different

or even nonexistent
• It is important to keep up to date on the law and be aware of how
authorized representatives are conducting business