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PS_CH02student - Ethical and Legal Issues in Selling in...

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Unformatted text preview: Ethical and Legal Issues in Selling in Chapter 2 Illegal and Unethical Behaviors Illegal Illegal Unethical Aggressive Conflicts Confronting Salespeople Conflicts Exhibit 3.2 Company Company Objectives Objectives Increase profits Increase sales Reduce sales costs Build long-term Build relationships relationships Salesperson Objectives Increase compensation Receive recognition and promotion Satisfy customers Build long­term relationships Maintain personal Customer Objectives Increase profits Solve problems, satisfy needs Reduce costs Build relationships with suppliers 3 Ethical Issues Confronting Salespeople Salespeople Relationship with Relationship customer customer Deception Bribes, gifts, Bribes, entertainment entertainment Special treatment Confidential Confidential information information Back door selling Relationship with firm Expense accounts Report work-time Report information information Switching jobs Relationship with Relationship colleagues colleagues Sexual harassment Rationalizations for Unethical Conduct Conduct “All salespeople behave unethically in this situation” “No one will be hurt by this behavior” “This behavior is the lesser of two evils” “This is the price one has to pay for being in business” Checklist for Making Ethical Decisions Decisions 1. Would I be embarrassed if a customer found out about this behavior? 2. 3. 4. 5. 6. 7. 8. 9. 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 Would in this sales activity? in Am I concerned about the possible consequences of this behavior? Would I be upset if this behavior or activity were publicized in a Would newspaper article? newspaper Would society be worse off if everyone engaged in this behavior or Would activity? activity? Laws Laws Business Defamation# Reciprocity Tying Agreements@ Conspiracy** and Collusion* Interference with Competitors Restrictions on Resellers Price Discrimination *Agreement among competitors, AFTER contacting the customer, concerning their relationship with the customer. ** Agreement among competitors BEFORE contacting the customer, concerning their relationship with the customer #Making unfair or untrue statements about a competitor, its products or personnel @ Agreement requiring a buyer to purchase one product to get another Sexual Harassment Sexual What is sexual harassment? Dealing with sexual harassment from customers Don’t become too dependent on one customer Clearly indicate that you are in control and will not be Clearly passive passive Utilize the sexual harassment policies of your firm and Utilize your customer’s firm to resolve problems your Any unwelcome sexual advance, joke or contact Dealing with sexual harassment from colleagues Dealing and supervisors and Thinking it Through Thinking Who does a sales Who representative represent? represent? Thinking it Through Thinking Is asking Is questions unethical? unethical? 3- Is asking questions unethical? Is What about asking questions about the What buyer’s financial status and using that information to set the price? information 3- Thinking it Through Thinking What What opportunities are there in sales for deception? deception? 3- Thinking it Through Thinking What What opportunities are there in sales for kickbacks*, kickbacks* bribes and gifts? bribes * Payments made to buyers based on the amount of the order 3- Thinking it Through Thinking What opportunities What are there in sales for misuse of confidential information? information? 3- Thinking it Through 3- Thinking it Through Thinking What opportunities What are there in sales for abuse of expense accounts? accounts? 3- Thinking it Through Thinking What opportunities What are there in sales for switching jobs? switching 3- ...
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This note was uploaded on 01/19/2012 for the course MKTG 4410 taught by Professor Michaelserkedakis during the Spring '12 term at Kennesaw.

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