Business Ethics and Social Responsibility in Sales

What is management's social responsibility?

Management's obligation to make choices and take actions that contribute to the welfare and interests of society as well as those of the organization.

Who are considered stakeholders in an organization?

Any group inside or outside the organization that has a stake in the organization's performance, including owners, managers, employees, customers, the community, creditors, and government.

What are the main responsibilities of an organization?

Economic (be profitable), Legal (obey the law), Ethical (do what is right), and Discretionary (contribute to community and quality of life).

What are the three levels of moral development according to the notes?

1. Preconventional - acts in own best interest; 2. Conventional - upholds legal laws; 3. Principled - lives by own code.

What percentage of people typically reach the principled level of moral development?

Less than 20%.

What influences ethical behavior according to the notes?

The individual's role and the organization's role.

What does the principled level of moral development ask?

'What is the right thing to do?'

What does the conventional level of moral development ask?

'What am I legally required to do?'

What does the preconventional level of moral development ask?

'What can I get away with?'

What do American adults believe about truth according to the research mentioned?

Truth is always relative to a person's situation.

What factors influence moral and ethical decisions?

Decisions are often based on whatever feels right or comfortable in a situation.

What are some ways individuals might make moral choices?

1. Whatever brings the most pleasing results; 2. Whatever makes others happy or minimizes conflict; 3. Values taught by family; 4. Religious principles and teachings.

What ethical dilemma is posed regarding finding a bank bag with $125,000?

Whether to return it to the bank and the motivations behind that decision.

What ethical question is raised about copying homework?

Whether it is acceptable to copy someone else's homework assignment and what prevents cheating.

What keeps individuals from cheating on an exam when the professor is absent?

Concerns about being caught or the belief that it is not the right thing to do.

What is the significance of conscience in ethical decision-making?

It raises the question of whether one's conscience is a reliable guide for making moral choices.

What is the role of organizational policies in ethical behavior?

Policies and procedures help guide employees in ethical decision-making.

How do ethical guidelines influence behavior in business?

They provide a framework for making decisions that align with ethical standards.

What is the relationship between ethical behavior and salespeople?

Salespeople must navigate ethical dilemmas in their dealings with employers and customers.

What is the international aspect of ethics in business?

Ethics can vary across cultures and countries, impacting international business practices.

What is the Tree of Business Life concept?

A metaphorical representation of the interconnectedness of ethical practices in business.

How can ethical behavior impact an organization's performance?

Ethical behavior can enhance reputation, trust, and long-term success.

What is a moral compass?

An internal constant standard used to measure right and wrong.

What influences our ethical decisions according to Barna?

Movies, TV, the Internet, books, music, public policy, law, and family.

What is the significance of having a fixed point of reference in ethics?

It must be unchangeable, separate from individual influence, and universally applicable.

What characteristics must a fixed point of reference possess?

It must be right regardless of belief, preference, or knowledge.

How can you determine if someone's statement is true?

You need to know what the truth is, which requires an established truth to reference.

What role do stars play in navigation as a metaphor for ethics?

Stars serve as a fixed point of reference that is separate and unaffected by personal influence.

What is the Golden Rule?

A principle suggesting that one should treat others as they wish to be treated.

How is the Golden Rule viewed across different religions?

It is a common ethical principle found in many faiths, emphasizing empathy and reciprocity.

What is an ethical dilemma?

A situation where each choice has undesirable elements due to potential negative consequences.

What is the definition of ethics?

A code of moral principles and values governing behaviors regarding right and wrong.

What does ethical behavior entail?

Treating others fairly.

What are some ethical considerations faced by sales managers?

Level of sales pressure, decisions affecting territory, and truthfulness.

What does it mean to rationalize a decision?

To justify or explain a decision in a way that makes it seem acceptable.

What can lead individuals to act unethically?

Habitual behavior and desensitization to unethical actions.

What is the relationship between conscience and ethical decision-making?

A person's conscience can influence their decisions, but its reliability may vary.

How does family influence ethical behavior?

Family can shape values and ethical standards that guide behavior.

What is the importance of personal accountability in ethics?

It ensures individuals take responsibility for their actions and decisions.

How can ethical guidelines be established?

By having a consistent and reliable point of reference that is not influenced by external factors.

What is the impact of societal norms on personal ethics?

Societal norms can pressure individuals to conform to behaviors that may not align with personal ethics.

Why might someone choose to copy homework even if they know it's wrong?

They may rationalize it as a one-time action or feel pressured by circumstances.

What is the role of faith in establishing a moral compass?

Faith can serve as a fixed point of reference that guides ethical behavior.

What is termination-at-will?

A policy allowing employers to terminate employees at any time without cause.

What are the benefits of respecting employee rights?

More productive employees, attracting good sales personnel, reducing legal costs, and reducing wage increase demands.

What are some unethical practices salespeople might engage in with their employers?

Misusing company assets, moonlighting, cheating, affecting other salespeople, and technology theft.

What ethical issues can arise in dealing with customers?

Bribes, misrepresentation, and price discrimination.

What does the Robinson-Patman Act address?

Selling the same quantity of the same product to different buyers at different prices.

What is a tie-in sale?

A sale where a buyer must purchase a particular line of merchandise to buy another product.

What is the Clayton Act?

An act that addresses anti-competitive practices and promotes fair competition.

What is reciprocity in sales?

Buying a product from someone if that person or organization agrees to buy from you.

What are cooling-off laws?

Laws that allow consumers to cancel certain contracts within a specified period.

What is the significance of ethical guidelines in international business?

Guidelines may differ or be non-existent, but U.S. firms must adhere to U.S. laws.

What are key strategies for managing sales ethics?

Follow the leader, establish a code of ethics, create ethical structures, encourage whistle-blowing, and establish control systems.

What should you consider when making career decisions?

Employers should provide worthwhile products, allow you to do what is right, and not require compromising your beliefs.

What characteristics should you look for in an ethical employer?

Mission to serve, vision based on the Golden Rule, values of integrity and trust, and a foundation based on service.

What is the Tree of Business Life rooted in?

Integrity and ethical service.

How does integrity relate to trust in business?

Integrity builds confidence that one can trust the other.

What is the role of corporate culture in ethical behavior?

Corporate culture influences ethical behavior and decision-making within an organization.

What does social responsibility in business entail?

Profitably serving employees and customers in an ethical and lawful manner.

What is the relationship between socially responsible organizations and performance?

Research suggests that socially responsible organizations perform as well as, and often better than, those that are not socially responsible.

What is the importance of ethical standards for sales personnel?

They must be developed, supported, and policed to ensure ethical behavior.

What is the Golden Rule in personal selling?

Treat others as you would like to be treated, which builds true relationships.

What is the significance of measuring the growth of your Business Tree of Life?

It reflects the application of the Golden Rule in personal selling and ethical practices.