SALES MANAGEMENT ETHICS AND LEGAL ENVIRONMENT
BASIC PREMISE – STARTING POINT
“DON’T BREAK THE LAW”
ETHICAL/LEGAL PROCESS
1. MORALITY OR BASIC VALUES OF A SOCIETY
2. REFLECTED IN BEHAVIOR EITHER ETHICAL OR UNETHICAL
3. ETHICAL – NO ISSUE
4. UNETHICAL – SOCIETY SAY STOP
5. UNETHICAL BEHAVIOR CONTINUES – WE CODIFY BEHAVIOR (LAWS & REGULATIONS)
SALES AND SALES MANAGEMENT MUST ADDRESS BEHAVIOR WITH BOTH THEIR COMPANY AND THE CUSTOMER
SHOULD YOU TAKE ADVANTAGE OF A CUSTOMER?
1. IGNORANCE
2. NAÏVE
3. POWERLESS
REMEMBER CUSTOMER RELATIONSHIPS, THE LAW, ETHICAL BEHAVIOR AND COMPANY REPUTATION
CODES OF ETHICS: WRITTEN GUIDELINES ADDRESSING BEHAVIOR
FOUND AT FOUR LEVELS OF SALES MANAGEMENT:
1. ASSOCIATION LEVEL
2. SPECIAL INTEREST GROUP LEVEL
3. COMPANY LEVEL - KOHLBERG
4. INDIVIDUAL LEVEL
CHARACTERISTICS OF GOOD CODES:
WRITTEN
UPDATED
CLEAR ABOUT ENFORCEMENT AND PENALTIES
ENFORCED AT ALL LEVELS
SENIOR MANAGEMENT INVOLVEMENT
COMMUNICATED
BECOMES PART OF THE CULTURE
WHERE DO WE BEGIN WITH OUR ANALYSIS OF BEHAVIOR?
FAMILY
EDUCATION
CULTURE AND
EXPERIENCE
FOR EXAMPLE THERE ARE COMMON PHILOSOPHIES:
1. IDEALISM - DEONTOLOGICAL
2. RELATIVISM – PERSONAL AND CULTURAL
3. TELEOLOGICAL
4. UNIVERSALISM
DEALING WITH ETHICAL BEHAVIOR:
ETHICAL ORGANIZATIONAL CLIMATE
STARTS AT THE TOP
POLICIES AND RULES
ETHICS OFFICERS
ETHICS HOT LINES – LEGAL AND ETHICAL
PEER REVIEW
EMPLOYEE EMPOWERMENT
CAUTION OVER EMPHASIS ON BOTTOM LINE RESULTS
LEGAL CONSIDERATIONS:
FEDERAL LAWS
- ANTI-TRUST LAWS
- CONSUMER PROTECTION LAWS
PRICE DISCRIMINATION, COLLUSION, PRICE FIXING, RECIPROCITY, TIE-IN SALES AND DISPARAGEMENT
STATE LAWS
- UNIFORM COMMERCIAL CODE
INTERNATIONAL LAWS
- EMBARGO
- HOME COUNTRY - FOREIGN CORRUPT PRACTICES ACT
- HOST COUNTRY LAWS
- INTEGRATED ECONOMIC UNIT LAWS
- INTERNATIONAL TREATIES