Download Chapter 10 Ethical Leadership

Chapter 10
Ethical Leadership
Principles of ethical decision making
_ Sales ethics form a code of moral conduct that
guides sales managers and salespeople in their
everyday activities .
_ Ethical decision can be based on different
moral Rules including the stakeholders and
shareholders View , Idealism , relativism , self
interest of Machiavellianism or conventional
morality
Role Morality
_ The moral Philosophy held by sales managers
is important to maintain an ethical sale force
because managers are the ethics teachers of
their organizations as they select field
salespeople , provide ethical training and
enforce the moral codes of the firm
Role Morality
_ We have two patterns of moral reasoning as :
1.
Relativism
2. Idealism
Role Morality
_ Relativism : managers tend to reject universal
rules and make decisions on the basis of
personal values and the ramifications of each
situation .
_ Idealism : accept moral codes and believe that
positive outcomes for all can be achieved by
morally collect actions
Machiavellianism
_ Focus on what’s rather than on what ought to
be ….
_Machiavelli denied the relevancy of morality
in public life and regarded expediency
_Machiavellianism defined as the principles and
methods of craftiness Duplicity and Deceit
Conventional Morality
_The Philosophy is reflected in Familiar phase
“When in Rome , Do as Romans Do “.
_This emphasis shift from the individual to what
society thinks about the ethical issue
_The standard of morality become what’s
acceptable to others at a popular time and
place .
Conventional Morality
_ Problems with this approach :
1.
The majority may conflict with either the
personal moral standards or with the
company policy .
2. it’s difficult for managers to adapt to changing
contexts or cultures
Making Decisions on ethical
problems
_ Ethics are concerned with the effect of actions
on the individual , the firm , the business
community and a society as a whole .
_ Hierarchical diagram showing the order in
which ethical decision evolve
Making Decisions on ethical
problems
_ we noticed that ethical values and standards of
business Firms are derived from the general
values and Norms of Society .
Business Decisions Represent a synthesis of the
moral and ethical principles embraced by
various entities .
Making Decisions on ethical
problems
*Conflict is common because the value of the
firm as interpreted by it’s executives mayn’t
match the values held by the individual.
* Job Description :Set of rules or practices that
defines the role of an employee . It resembles a
legal contract Because it specifies the number
of hours of work , starting and stopping time
and the goals that are to be accomplished
Ethical Checklist
A comprehensive job description is a good 1st
step , but managers often need practical
Guidelines when making difficult moral
Decision .
_ we suggest a simple checklist when we
confronted with an ethical Dilemma
Ethical Checklist
Which contains :
1.
Recognize the Dilemma
2.
Get the facts
3.
List your opinion
_ Are they legal ?
_ Are they right?
_Are they beneficial
4. Make your decision
Common Sales Ethics Issues
Hiring and Firing :_ Various Federal and state laws prohibit
Discrimination in Hiring Practices .
For example: In hiring candidates who are
relative to officers of the firm , suppose a
sale manager must choose between a man
and a woman for a position although the man
has more experience but as a woman is a
daughter of a vice president of a company
1.
Hiring and Firing
So the woman will get the Job even though she
has lower qualifications
_ In this example the sale manager must make a
moral choice between what’s the best for the
firm and what might enhance his or her
position in the firm
House Account
_ A touchy problem for sales managers is how to
handle large and important customers .
_ These larger accounts require special attention
that exceeds the time and the skills available
from the salesperson assigned to the territory
_Should these accounts be left with District
salesperson or shifted to headquarters as
House Account as these accounts Generate
high commission income
Expense Account
_ Most Ethical Abuse in a sales organization take
place with expense account . Salespeople
expected to spend money contacting customers
and then reimbursed for their expenses .
_ sales managers must decide how tight control
on expense account should be.
Expense Account
_ Tight control on expense account could result
in salespeople not traveling to contact out of
the way customer
_ A good solution is to monitor the actual
expense of some reliable salespeople for a
month every year , as this approach reduce the
cost of processing expense .
Gifts for Buyer
_ Business has a tradition of giving small Gifts
for buyers to express appreciation for past and
future business .
_ salespeople Give novelties and samples as well
as seasonal Gifts
_ Today purchasing manager appear to be willing
to accept gifts of clothing , pen and calendars
Bribes
_ A bribe was considered to be a personal Gifts
to a buyer over 100$
One way to differentiate a Gift from a bribe is :
When the item is unexpected (gift) rather than as
a part of an agreed –upon payment for
business (bribe)
Entertainment
_ Providing Entertainment for customers is a
standard practice in business , but it can lead to
ethical problems .
_ the issue is often (how much is too much ?)
_ Most will agree that taking a customer to a
lunch is fair few would argue against taking a
client and Spouse to dinner and Night clubs
Sexual Harassment
_ The equal employment opportunity
commission define the sexual Harassment
_ Unwelcome sexual advances , request for
sexual factors and other verbal or physical
conduct of sexual nature constitute sexual
harassment .
Codes of Ethics
_ Ethic policy statement : Indicates to sales force
That the company believes in playing fair with
customers and competitors .
_Research has shown that salespeople employed
in organization with codes of ethics perceived
their work environment to have more positive
ethical value than did other sales professionals
Ethics Training
_ You should remember that simply publishing a
sales ethics code does not Guarantee that field
sales representatives will follow it
_ company should offer classes to make sure that
employees know what to do in morally
situation
Ethics Training
_ Research confirmed that younger sales
managers are less idealism and more
relativistic in their ethical decision making
These findings suggest the importance of
adjusting training programs content to meet the
need of different age Groups
Thank You 