Online Lesson

HA405 : The Class : Personal Management : Ethics : Online Lesson

Toward a Personal Code of Ethics

Source: Manning, GL & Reece, BL (1998). Selling Today: Building Quality Partnerships (7th Ed.). NJ: Prentice Hall. Pp. 84 -86.

Introduction

Consultative selling is dependent upon developing long-term relationships. Relationships are dependent upon business ethics: honesty, integrity, and trust. Ethics encompass doing what is the right thing.

Many people considering a career in selling are troubled by the thought that they may be pressured into compromising their personal standards of right and wrong. These fears may be justified. The authors of The Ethical Edge, a book that examines organizations that have faced moral crises, contend that business firms have given too little thought to the issue of helping employees to function ethically within organizations. Many salespeople wonder if their own ethical philosophy can survive in the business world. These are some of their questions:

Will I be forced to abandon my own ethical beliefs?

Can good business and good ethics coexist?

Are there still business firms that value adherence to high ethical standards?
Is honesty still a valued personal trait in the business community?

It is becoming more difficult to provide a concise yes or no answer to these questions. Times are changing, and it is getting harder and harder to tell the "good guys" from the "bad guys." We read about the unethical use of gifts and bribes by corporate officials. Investigations of the Medicaid Program turn up overbilling and other unethical behaviors by doctors, pharmacists, and nursing home operators. Reports from colleges and universities indicate that cheating is becoming more common. Even some of our most respected political leaders have been guilty of tax fraud, accepting illegal campaign contributions, and accepting payments for questional favors. We are tempted to ask, "Is everybody doing it?"

Our society is currently doing a great deal of soul-searching. Many people want to see a "firming" of ethical standards. Many leaders are keenly aware that unethical behavior threatens the moral fabric of our free enterprise system. If the business community cannot police itself, more and more people will be looking to government for solutions to the problem. One fact we have learned from history is that we cannot legislate morality.

In the field of athletic competition the participants rely heavily on a written set of rules. The referee or umpire is ever present to detect rule violations and assess a penalty. In the field of personal selling there is no universal code of ethics. However, some general guidelines can serve as a foundation for a personal code of business ethics:

Guidelines for a Personal Code of Ethics

Use an honest approach. Some salespeople get off to a bad start by using a deceptive approach. One outdated practice is to seek an appointment but avoid stating the purpose of a visit. Some salespeople try to avoid creating the impression that they are selling anything. In nine cases out of ten this practice will backfire once the prospects find out they have been deceived.

Put your customer's interest first. In selling we should always concentrate on the prospect's needs. One of the basic rules of sales success is to help yourself by finding ways to help others. When you find a way to help a prospect solve a problem, save money, or improve business, you will not only close a sale but also assure your customer's future interest in working with you.

Avoid misleading sales claims. Accuracy and truth should be the basis of all sales claims. Do not stretch the truth or exaggerate. This is not only unethical, but also illegal. Stick to the facts, especially when you are emphasizing specific points. Avoid making statements or claims unless you have proof. Do not withhold important facts even if they are detrimental to your product. A complete and informative sales presentation includes more than just positive facts. In many selling situations the customer needs to be aware of your product's limitations.

Avoid attacking competitors. Some sales people mistakenly believe that the most effective way to deal with competition is to attack it. This is almost never an acceptable practice. Such behavior not only is unethical but also is likely to lose respect for you and your company.

Avoid misuses of company resources. When you mention crime, many people think of the elderly man mugged on the way to the grocery store ore the service station attendant robbed at gunpoint. There is another type of crime, however, that is having a serious impact on American business. Many otherwise law-abiding people are stealing from their employers.

One possible misuse of company resources involves manipulating expense accounts. Most salespeo0ple are reimbursed for legitimate sales-related expenses such as meals, lodging, travel expense, and, in many cases, entertainment expenses. There is always the temptation to inflate the expense account for personal gain. There is one broad guideline by which to judge the legitimacy of a business expense: the expenditure must be justifiable in terms of benefit to the company.

Practice honesty after the sale. A salesperson's ethical standards are often put to the test after the sale. Salespeople are judged by the thoroughness of post sale follow-up. Customers should be contacted after the sale to determine if they are completely satisfied. If problems exist, they should be handled in a way that builds customer goodwill and long-term relationships.

Summary

Ethics are the rules of conduct that reflect the character and the sentiment of the community. Ethics help us establish standards of honesty, loyalty, and fairness. Ethics are not legally constituted guidelines. To consider only what is legally right and wrong limits our perception of morality. Laws alone will not bring a halt to unethical selling practices.

Salespeople can benefit from the stabilizing influence of good role models. Although top management personnel are usually far removed from day-to-day selling activities, they can have a major impact on salespeople's conduct. Dishonesty at the top of an organization causes an erosion of ethical standards at the lower echelons.

Sales managers provide another important role model. They interpret company policies and help establish guidelines for acceptable and unacceptable selling practices. Company policies and practices can have a strong influence on the ethical conduct of salespeople. These policies often help salespeople cope with ethical conflicts.

However, in the final analysis, salespeople must establish their own standards of personal conduct. They must decide how best to serve their company and to build strong relationships with their customers.

Once you have finished you should:

Go on to VCC Discussion
or
Go back to Ethics

Send E-mail to Richard G McNeill Ed.D., CHME
or call (520) 523-1713