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McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 2 Ethics First…Then Customer Relationships 2-2 What Influences Ethical Behavior? The Individual’s Role Level one: Preconventional – acts in own best interest Level two: Conventional – upholds legal laws Most people operate here Level three: Principled – lives by own code A few operate here Less than 20% reach level three The Organization’s Role At best, most employees in firm operate at level two How will the situation be handled if no policies and procedures are in place? 2-3 Exhibit 2.1: What Is Your Level of Moral Development? Principled - “What is the right thing to do?” Conventional - “What am I legally required to do?” Preconventional - “What can I get away with?” 2-4 Exhibit 2.2: Moral Development Bell Curve 2-5 Are There Any Ethical Guidelines? What Does The Research Say? American adults said by a 3-to-1 margin that truth is always relative to a person’s situation People are most likely to make their moral and ethical decisions based on: whatever feels right or comfortable in a situation 2-6 Are There Ethical Guidelines? What Does One Do? What if you found a bank bag containing $125,000? Would you return it to the bank? Is it fear of being caught? Not the right thing to do? 2-8 Are There Ethical Guidelines? Out of class, is it okay to copy someone else’s homework assignment? What keeps you from cheating on an exam when the professor is out of the room? Is it fear of being caught? Not the right thing to do? 2-9 Are There Ethical Guidelines? Is Your Conscience Reliable? We all have an internal constant standard with which we measure right and wrong, a “moral compass” Most of us know we should return the $125,000 and not copy someone’s homework But what would we actually do? 2-10 Are There Ethical Guidelines? Is Your Conscience Reliable? (Cont’d) If a person’s values are at “Level 2,” they may make decisions based on the situation and what others say and do Usually people rationalize their decisions; “I’ll only copy the homework this one time.” Many people are so accustomed to doing things unethically that they think nothing about it 2-11 Are There Ethical Guidelines? Sources of Significant Influence Do factors influencing our decisions include your friends, family, or things you see on television or in the movies? Barna has found that the leading influences on American ethics are movies, TV, the Internet, books, music, public policy, law, and family 2-12 Will The Golden Rule Help? The “Golden Rule” concept is present in virtually all faith-based principles The Golden Rule does not involve reciprocity “Could the Golden Rule serve as a universal, practical, helpful standard for the businessperson’s conduct?” Would you consider your faith a fixed point that is separate from you and never changes? 2-17 Exhibit 2.4: Examples of World Religions Which Embrace the Golden Rule Hindu - “Do naught unto others what you would not have them do to you.” Confucius - “Do not do to others what you would not like yourself.” Buddhist - “Hurt not others in ways that you yourself would find hurtful.” Rabbi Hillel - “That which is hateful to you do not do unto your neighbor.” Jesus Christ - “Do to others as you would have them do to you.” 2-18 What Do You Use For a Moral Compass? 2-19 Management’s Ethical Responsibilities Ethics is the code of moral principles and values that govern the behaviors of a person or a group with respect to what is right or wrong Ethical behavior refers to treating others fairly 2-20 What is an Ethical Dilemma? A situation in which each alternative choice or behavior has some undesirable elements due to potentially negative ethical or personal consequences 2-21 Salespeople’s Ethics in Dealing with Their Employers Misusing company assets Moonlighting Cheating Affecting other salespeople Technology theft 2-24 Ethics in Dealing with Customers Bribes Misrepresentation Price discrimination Robinson-Patman Act Selling the same quantity of the same product to different buyers at different prices Tie-in sales To buy a particular line of merchandise, a buyer may be required to buy other, unwanted products. Clayton Act 2-25 The International Side of Ethics Guidelines for conducting international business may be different or even nonexistent Despite laws in other countries, U.S. firms are subject to U.S. laws It is important to keep up to date on the law and be aware of how authorized representatives are conducting business 2-27 Helpful Hints to Making Career Decisions Your employer should provide worthwhile products You should be able to do what is right You do not have to compromise your beliefs People go before anything else Good people are desperately needed in all types of businesses/organizations Look for a calling, not a job* 2-29 Do Your Research to Find an Ethical/Moral Employer. Is the Employer’s... Mission to serve? Vision based upon the Golden Rule? Values based upon integrity, trust, and character? Foundation based upon service? Cornerstone love of people? 2-30