Part V

SALES FORCE
LEADERSHIP
Chapter 10:

Sales Force
Ethics
 Part B: Moral decision structure. To
behave normally in a given situation, a person
must:

Part A: Recognize Convert Part C:

Characteristics alternatives, intentions into Outcomes
of decision affected parties action (decisions
maker facing outcomes. and/or behavior) Job
ethical choices performance

Demographics Rewards and

punishments
Behavioral
Determine Give Priority
the morally best Feedback and
to moral values
Positional alternative: learning
and intend to do
ethical theories
what is morally
moral judgment
right.
stages

Situation Moderators
Societal Peers Customers
ethical
standards Superiors Legislation
Organization culture

Figure 10-1: A Model of Ethical Decision Making

TO LOOK OR NOT TO LOOK

Assume you are taking a make-up final exam in

a separate room and you need an A to pass the
course, otherwise you might have to go to
summer school and delay graduation for three
months. You are 99% certain that your professor
will not check in on you while you are taking the
test and you have your textbook and notes in
your book bag, which is sitting next to you on the
floor. You are stumped on a few questions
(enough so that you probably won’t get your A).
If you looked in your notes and text, you would
answer them correctly.

Do you look?
TO LOOK OR NOT TO LOOK

Assume the same situation, but that if you

got your A on the test you would receive
$5,000
(in addition to graduating).

Now would you look

in your notes?
Examples of Pressures
Facing Sales Managers

 Incentives to provide favorable earnings

reports
 High rewards for short –term profits at
expense of long-term growth
 Greed
 Reputation
 Other?
Purchasing Agent’s Ratings of Sales Activities
and Correlations With Career Impact and
Supplier Choice Ethicality Ethicality Ethicality
Salesperson Behavior Mean Career Supplier Choice

Gifts to Current Customers:

1. Give purchaser who was one of best customers
a gift worth $50 at Christmas 1.87 .33 .53
2. Gave one of best customers a $25 Christmas
gift. 2.26 .57 .65
3. Buys lunch for a purchasing agent 3.77 .34 .25
4. Gives every customer a present worth
$10 at Christmas 2.77 .57 .55
5. Provides entertainment for purchasing agent
such as tickets to sporting events. 2.63 .59 .55

Puts Own Interest First:

1. Quotes higher than normal price for product
during temporary shortage situation 1.75 .12 .52
2. Lets it be know he has information about a
competitor if purchasing agent is interested. 1.90 .38 .61
3. Hints if order is placed, price might be lower
on next order, when it is not so. 1.29 .19 .22
Purchasing Agent’s Ratings of Sales Activities
and Correlations With Career Impact and
Supplier Choice Ethicality Ethicality Ethicality
Salesperson Behavior Mean Career Supplier Choice

4. Only stresses positive aspects of product,

omitting possible problem purchasing
agent’s firm might have with it. 1.97 .16 .43
5. Grants price concession to purchasing agent
of company he owns stock in. 1.80 .36 .64
6. Attempts to sell product to purchasing agent
that has little or no value to buyer’s company. 2.06 .38 .40
7. Uses “back-door”selling instead of going
through purchasing department. 1.67 .21 .44

Gifts to Prospects:
1. Gave purchaser who had not done business
before Christmas present worth $10 2.13 .53 .54
2. Gave purchase who had not bought from
the firm a Christmas gift worth $25 1.72 .47 .61
3. A $50 Christmas gift sent to purchaser who
has been called on but had not placed an order. 1.63 .38 .41
Purchasing Agent’s Ratings of Sales Activities
and Correlations With Career Impact and
Supplier Choice Ethicality Ethicality Ethicality
Salesperson Behavior Mean Career Supplier Choice

Pressure or Coercion:
1. In reciprocal buying situation, salesperson hints
unless order is forthcoming, prospect’s
sales to firm might suffer. 1.61 .19 .50
2. Attempts to use economic power of firm to
obtain concessions from the buyer. 1.99 .29 .57
3. Attempts to get purchasing agent to divulge
competitor’s bid in low bid buying situation. 1.64 .26 .36
4. Exaggerated how quickly order will be
delivered to get the sale. 1.68 .33 .51

Preferential Treatment:
1. In shortage situation allocates product
shipments to purchasing agent he personally liked. 1.91 .40 .67
2. Grants concessions to purchasing manager
depending on how much he likes manager. 2.24 .35 .55
3. Give preferential treatment to customers who
are also good suppliers. 2.97 .67 .68

Note: 5 = very unethical; 1 = very ethical. Correlations over.25 are significant at 0.01 level.
Ethical Checklist

Recognize the Dilemma

Get the Facts

List the Options

Make Your Decision

Is it a Gift or a Bribe?

* Have you or your colleagues ever offered

potential clients personal gifts valued at more than
$100 in exchange for their business?

100%
88.60%
90%
80%
70%
60%
Yes
50%
No
40%
30%
20% 11.40%
10%
0%
Is it a Gift or a Bribe?
In your opinion, would a personal gift valued at
$100 - $500 given to a potential client by a
salesperson constitutes a bribe?

100% 94.00%
90%
80%
70%
60%
Questionable/ Bribe
50%
Acceptable
40%
30%
20%
10% 6.00%
0%
Table 10-1

Eight Ways to Keep You Sales Force

Honest
1. Get support from top management showing that they
expect you to follow the spirit and letter of the law.
2. Develop and distribute a sales ethics policy.
3. Establish the proper moral climate. If the bosses
follow the rules, then the troops are apt to do
likewise.
4. Assign realistic sales goals. People who try to meet
an unfair quota are more likely to rationalize their
way to a kickback scheme.
5. Set up controls when needed. Watch people who live
above their income.
6. Suggest that salespeople call for help when they face
unethical demands.
7. Get together with your competition if payoffs are an
industry problem.
8. Blow the whistle if necessary.
Honesty

“The reputation of a thousand years

is determined by the conduct of one hour.”
Japanese Proverb

“There is no pillow as soft

as a clear conscience.”
Blanchard and Peale

“When in doubt, tell the truth.

It will confound your enemies
and astound your friends.”
Mark Twain