SELLING TODAY 13e

3
Ethics: The Foundation for Partnering Relationships
That Create Value

MANNING AHEARNE REECE

 Learning Objectives_1
Explain the importance of developing a
relationship strategy
Describe issues that challenge the ethical
decision making of salespeople
Describe the factors that influence the ethical
conduct of sales personnel
Describe how ethical decisions influence the
building of partnering relationships in selling
Discuss guidelines for developing a personal code
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 Developing a Relationship
Strategy
Maintain high ethical standards
Project professional image
Manage the relationship process

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 Emotional Intelligence
Emotional intelligence refers to the capacity for
monitoring our own feelings and those of others, for
motivating ourselves, and for managing emotions.
Qualities associated with high EI include
Self-awareness
Self-confidence
Trustworthiness
Adaptability
Empathy
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 Relationship Challenges
How can we build new relationships?
How can transform relationships from the
personal level to the business level?
How can we manage relationships?

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 Figure 3.2 Ethical Decisions
as a Foundation

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 What would you do if
A customer asks you to create a set of product
specifications for completing a sales proposal. A
new supplier of yours indicates a sizable direct
cash payment would be made to you if you list
the suppliers technical data in the
specifications.

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 What would you do if
During a recent business trip, you met an old
friend and had dinner together. At the end of the
meal, you paid for the entire bill and left a tip. Do
you now put these nonbusiness-related expenses
on your expense account?

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 What would you do if
You have visited a buyer twice and each time the
person seems interested in your proposal. During
a recent negotiations meeting, the buyer hinted
that the order might be approved if you provided
tickets to a national sporting event. Your
company has a policy that gifts are not to be
given under any circumstances.

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 Figure 3.3 Factors Influencing the
Ethical Behavior of Salespeople

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 Culture and Ethics
Culture is the sum total of beliefs, values,
knowledge, ethnic customs, and objects that
people use to adapt to their environment
Cultural differences can make building
relationships more difficult
Cultural differences may present direct ethical
challenges

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 Doing Business In China
Be patient
Be prepared for negotiations around meals
Harmonious relationships matter
Introduce the oldest first
Give gifts after transactions
Be careful of the meaning of gifts

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 Legal Issues
Foreign Corrupt Practices Act prohibits U.S.
companies from using bribes or kickbacks to
influence foreign officials
U.K. Anti-Bribery Act prohibits any form of
commercial bribery

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 Influence of Company Policies
Distributor relations
Customer service
Pricing
Product development

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 Mutual of Omahas Values for
Success
Openness and trust
Honesty and integrity
Customer-focus

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 Situations Benefitting from
Corporate Guidance
Sharing confidential information
Reciprocating business exchanges
Using bribes
Giving gifts
Entertaining prospects
Defaming business competitors

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 Guidelines for Gift-Giving
Do not give gifts before doing business with a customer. Do
not use the gift as a substitute for effective selling methods
Never convey the impression you are buying the
customers business with gifts
When gift giving is done correctly, the customer clearly
views it as symbolic of your appreciationa no strings
attached goodwill gesture
Be sure the gift is not a violation of the policies of your firm
or of your customers firm

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 What Constitutes Business
Defamation?
Business slander
Business libel
Product disparagement

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 How Effective are Company
Policies?
It depends on
The firms attitude toward employees who
violate these policies
The support of the entire sales staff

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 Figure 3.2 Influence of Values

Values
(Deep Personal
Beliefs)

Attitude
(Destructive vs.
Constructive)
Behavior
(Ethical vs.
Unethical)
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 How to Handle Values Conflicts
Ignore the influence of your values
Voice strong opposition
Refuse to compromise your values

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 Uniform Commercial Code
(UCC)
Definition of sale
Warranties and guarantees
Salesperson and reseller
Financing of sales
Product consignment

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 Meaning of Trust Changes
Trust in transactional sales
Trust in consultative sales
Trust in strategic alliance sales

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 Business Ethics and Codes
Ethical norms
Ethical values
Honesty
Responsibility
Fairness
Respect
Transparency
Citizenship
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 What Beliefs Can Erode
Character?
We are in it for ourselves
Corporations exist to maximize shareholder
value
Its not wrong because everyone is doing it
Companies need to be lean and mean

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 Developing a Personal Code of
Business Ethics
Relationship comes first, task second
Be honest with yourself and with others
Remember selling must be viewed as an
exchange of value

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 For Review
Is it important to develop a relationship strategy?
What issues challenge the ethical decision-
making of salespeople?
What factors influence the ethical conduct of
salespeople?
How does ethical decision making influence
partnering?
What guidelines can people use to develop a
personal code of ethics?
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 Reality Selling Case
Can you imagine situations in your job that
might challenge your ethical conduct?
What are the major areas that should be covered
in a company policy on ethics?
How could an incentive compensation system be
designed that stimulates sale generation, but
safeguards ethical sales behavior at the same
time?
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