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PRESENTED BY ;
NITISH BABBAR
ETHICAL ISSUES

—Sales ethics provides moral framework to guide salesperson in thies daily

contacts with customers

—The ethical issues facing a sales manager may be studied with regard to
the sales manager¶s relationship with his subordinates ,the company
,customers and competitors .

—Sales manager must train salesperson in how to recognise and respond to

these situations.

—Ethical behavior refers to treating others fairly

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— uaintaining confidence and trust.

‡ Following the rules.
‡ Conducting yourself in the proper manner.
‡ Treating others fairly.
‡ Demonstrating loyalty to company and associates.

‡ Carrying your share of the work and responsibility with 100%

effort.

‡Being honest.
Specific ethical concern for sales personal

1. Relationship with customers

2. Relationship with competitors
3. Relationship with the company
4. Ethical checklist
Relationship with customers

º bribes
ºGifts ( ex ± insurance agents )
ºEntertainment

Relationship with competitors

ºDo not talk much about competitors product until comparison is being
asked by the customer
ºDo not destroy the competitors assets ( displays, products , etc )
ºDo not steal another company¶s salesperson.
Relationship with the company

ºSales person should try to reduce the companies expenses.

ºThere should not be cheating in sales reports.
ºNot disclose company secrets.
ºBe loyal towards your superiors.
ETHICAL CHECKLIST

RECOGNISE THE DILEuuA

GET THE FACTS

LIST YOUR OPTIONS

uAKE YOUR DECISION

Specific ethical concern for sales manager

G level of pressure
GAssigning territory
GTelling the truth
GBuilding a sales ethical program
LEGAL ISSUES

Legal issues involves all those laws which needs to be keep in mind
while managing the sales. These laws are required to be followed and
breaking these laws is a punishable offence.

Specification legal concerns for sales manager

GConsumer protection laws
GAntitrust laws
GUnfair trade practices
GFraud and misrepresentation
GUniform commercial code
GLaws dealing with direct to consumers sales
GAntidiscrimination laws
Consumer protection laws

A. The federal trade commission act of 1914- prohibits unfair methods

of competition and deceptive practices.
B. The automobile information disclosure of 1938- requires all new
vehicles to have a posted sticker price.
C. The consumer credit protection act of 1968-disclosure of annual
interest rates and other finance charges on consumer laws .
D. The energy policy and conservation act of 1976-requires energy
efficiency ratings for appliances.
E. The fair debt collection act of 1980- makes it illegal to harass or
abuse debtors.
ºANTITRUST LAWS
ºDescriptive of a set of laws that regulates business to prevent
monopolicies , price fixing , price discrimination , etc

ºUNFAIR TRADE PRACTICES

º Unfair product policies
1.shipping merchandise that has not been ordered.
2. shipping later than pro

º Unfair interferences with competition

1. Threatening to file a lawsuit when there is no real cause.
2. Stealing a computer¶s trade secrets.
ºFRAUD AND uISREPRESENTATION
º There should not be fraud while dealing with customers.
ºThere should not be misleading representation

ºUNIFORu COuuERCIAL CODE

A set of rules adopted by most states to standardize the regulation of
transactions involving the sale of merchandise , shipping documents ,
negotiable instruments , stock transfers , etc
a. the nature and forms of sales- title must pass from seller to the buyer for
a price.
b. risk and property rights- when problems arise pertaining to damaged
goods , creditors , claims ,and insurance.
c. warranties.
LAWS DEALING WITH DIRECT TO CONSUuERE SALES
£ doorstep identification- sugging
£ forcing buyer for a product
£ cross-group selling
£ general rules of retail store should be followed that includes complete
information about the product and listening the customers

Antidiscrimination laws
1. Equal employment opportunity commission- to avoid discrimination by
employers or unions in hiring , training , promoting , etc.
2. Equal opportunity employer - an employer who actively seeks to end
discrimination in the workplace on the basis of race , creed , color , sex ,
etc.
THANK YOU