C HAPT E R
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Ethics
THE FOUNDATION FOR RELATIONSHIPS IN SELLING
C HAPT E R
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Learning Objectives
• Discuss the influence of ethical
decisions on relationships in selling
• Describe the factors that influence the
ethical conduct of sales personnel
• Compare legal versus ethical standards
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Learning Objectives (Continued)
• Explain how role models influence the
ethical conduct of sales personnel
• Discuss the influence of company
policies and practices on the ethical
conduct of salespeople
• Explain how values influence behaviour
• List three general guidelines for
developing a personal code of ethics
5-3
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C HAPT E R
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Ethics are…
Rules of conduct used to determine what
is good or bad. They are moral
principles or values concerned with
what ought to be done—a person’s
adherence to honesty and fairness.
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Caveat Emptor . . .
Caveat emptor is the philosophy
that states, “Let the buyer
beware.”
5-5
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C HAPT E R
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Factors Determining Ethical Behaviour of
Salespeople
Municipal, provincial,
and federal laws
Role model provided
by top management
Company policies
and practices
Role model provided
by sales manager
Personal values
of salesperson
Ethical conduct
of salespeople
5-6
Copyright2004 Pearson Education Canada Inc.
C HAPT E R
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Relevant Sales Issues
Canada’s Competition Act
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Price Fixing
Bid Rigging
Price Discrimination
Predatory Pricing
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C HAPT E R
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Relevant Sales Issues
(Continued)
Canada’s Competition Act
• Misleading Advertising
• Double Ticketing
• Resale Price Maintenance
5-8
Copyright2004 Pearson Education Canada Inc.
C HAPT E R
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Relevant Sales Issues
(Continued)
Canada’s Competition Act
• Refusal to deal
• Exclusive dealing
• Tied Sales
5-9
Copyright2004 Pearson Education Canada Inc.
C HAPT E R
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Relevant Sales Issues
(Continued)
Canada’s Competition Act
• Pyramid Selling
• Referral Selling
• Bait and Switch Selling
5-10
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Sales Guidelines
Should be provided to cover
• Sharing Confidential Information
• Reciprocity
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C HAPT E R
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Reciprocity…
is a mutual exchange of benefits, as
when a company buys products
from its own customers.
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Copyright2004 Pearson Education Canada Inc.
C HAPT E R
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Sales Guidelines (Continued)
Should Be Provided to Cover
•
•
•
•
Bribery
Gift giving
Entertainment
Business Defamation
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Gift Giving Guidelines
• 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 customer’s
business with gifts.
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C HAPT E R
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Gift Giving Guidelines
(Continued)
• When gift giving is done correctly,
the customer will clearly view it as
symbolic of your appreciation.
• Be sure the gift is not a violation of
the policies of your firm or of your
customer’s firm.
5-15
Copyright2004 Pearson Education Canada Inc.
C HAPT E R
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Guidelines for a Personal Code
of Ethics
• Personal Selling must be viewed as an
exchange of value
• Relationships come first, the task
second
• Be honest with yourself and others
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Copyright2004 Pearson Education Canada Inc.
C HAPT E R
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CPSA Sales Institute Code of
Ethics
www.cpsa.com
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Copyright2004 Pearson Education Canada Inc.