2. SALES MANAGEMENT ETHICS

SALES MANAGEMENT ETHICS AND LEGAL ENVIRONMENT

BASIC PREMISE – STARTING POINT

“DON’T BREAK THE LAW”

ETHICAL/LEGAL PROCESS

1. MORALITY OR BASIC VALUES OF A SOCIETY

2. REFLECTED IN BEHAVIOR EITHER ETHICAL OR UNETHICAL

3. ETHICAL – NO ISSUE

4. UNETHICAL – SOCIETY SAY STOP

5. UNETHICAL BEHAVIOR CONTINUES – WE CODIFY BEHAVIOR (LAWS & REGULATIONS)

SALES AND SALES MANAGEMENT MUST ADDRESS BEHAVIOR WITH BOTH THEIR COMPANY AND THE CUSTOMER

SHOULD YOU TAKE ADVANTAGE OF A CUSTOMER?

1. IGNORANCE

2. NAÏVE

3. POWERLESS

REMEMBER CUSTOMER RELATIONSHIPS, THE LAW, ETHICAL BEHAVIOR AND COMPANY REPUTATION

CODES OF ETHICS: WRITTEN GUIDELINES ADDRESSING BEHAVIOR

FOUND AT FOUR LEVELS OF SALES MANAGEMENT:

1. ASSOCIATION LEVEL

2. SPECIAL INTEREST GROUP LEVEL

3. COMPANY LEVEL  -  KOHLBERG

4. INDIVIDUAL LEVEL

CHARACTERISTICS OF GOOD CODES:

WRITTEN

UPDATED

CLEAR ABOUT ENFORCEMENT AND PENALTIES

ENFORCED AT ALL LEVELS

SENIOR MANAGEMENT INVOLVEMENT

COMMUNICATED

BECOMES PART OF THE CULTURE

WHERE DO WE BEGIN WITH OUR ANALYSIS OF BEHAVIOR?

FAMILY

EDUCATION

CULTURE AND

EXPERIENCE

FOR EXAMPLE THERE ARE COMMON PHILOSOPHIES:

1. IDEALISM  - DEONTOLOGICAL

2. RELATIVISM – PERSONAL AND CULTURAL

3. TELEOLOGICAL

4. UNIVERSALISM

DEALING WITH ETHICAL BEHAVIOR:

ETHICAL ORGANIZATIONAL CLIMATE

STARTS AT THE TOP

POLICIES AND RULES

ETHICS OFFICERS

ETHICS HOT LINES – LEGAL AND ETHICAL

PEER REVIEW

EMPLOYEE EMPOWERMENT

CAUTION OVER EMPHASIS ON BOTTOM LINE RESULTS

LEGAL CONSIDERATIONS:

FEDERAL LAWS

- ANTI-TRUST LAWS

- CONSUMER PROTECTION LAWS

PRICE DISCRIMINATION, COLLUSION, PRICE FIXING, RECIPROCITY, TIE-IN SALES AND DISPARAGEMENT

STATE LAWS

- UNIFORM COMMERCIAL CODE

INTERNATIONAL LAWS

- EMBARGO

- HOME COUNTRY -  FOREIGN CORRUPT PRACTICES ACT

- HOST COUNTRY LAWS

- INTEGRATED ECONOMIC UNIT LAWS

- INTERNATIONAL TREATIES