As the basic principles that govern behavior, ethics are not laws. Laws are enforced by governmental statues. Ethics go beyond laws (and rules and regulations)

KEEP IT REAL – IN SALES

As the basic principles that govern behavior, ethics are not laws. Laws are enforced by governmental statues. Ethics go

beyond laws (and rules and regulations) to the heart of a situation. At the center of everything you do is whether your actions are right or wrong according to your moral

standards (your ethics)

ETHICS

Salespeople are on the company’s “front lines” and often create the first impression people receive of the business. The first impression is important to the company’s leaders and stakeholders because it affects profitability. Customers often use this first impression to decide whether or not (or

how much) to purchase from the company.

ETHICS ARE IMPORTANT IN SALES

When salespeople cross the moral “line”, negative events can follow. The business can experience legal issues, which

can be costly and can promote a negative image of the company. Customers who learn the legal issues (and see the negative public image) can begin to distrust the company.

WHAT HAPPENS WHEN THE LEVEL OF ETHICS ARE LOW?

- Misrepresenting the truth

- Saying something unfair or untrue about another business

- Saying something unfair or untrue about another company’s product

- Participating in bribery

- Neglecting to provide accurate information to customers

- Unfairly competing within the marketplace

ILLEGAL ACTIVITIESTHE SELLING “NO-NO’S”

When dealing with customers, salespeople must be cautious with: gift-giving, entertaining, answering questions,

communicating product information, and maintaining confidences.

CUSTOMERS

Gift-giving is one of the most widely disputed ethical issues in sales. It’s illegal to offer or accept a bribe.

GIFT-GIVING

In certain industries, it’s generally accepted that salespeople will entertain clients as part of the relationship-

building process. In other industries, especially where contracts are awarded, entertaining can be viewed as

favoritism or bribery.

ENTERTAINMENT

Another issues is answering questions without really knowing the answers. When this occurs, salespeople are

actually guessing, not relaying facts. Salespeople who try to appear knowledgeable when they’re actually uncertain risk

crossing into the legal issues of misrepresentation and negligence.

COMMUNICATING PRODUCT INFORMATION

Because building relationships and communicating go together, it’s important for salespeople to carefully guard

what customers tell them in confidence. Spreading information that is not intended for others’ knowledge can tear down a relationship and hamper communication in the long run. It’s generally expected that salespeople will ask a customer’s permission before sharing his/her confidential information. It’s also expected that salespeople will not

share company secrets to make a sale.

RELATIONSHIPS AND COMMUNICATING

Employer-employee relationships operate in two directions – from the employer to the employee and from the

employee to the employer.

EMPLOYER-EMPLOYEE RELATIONSHIP

- Putting unreasonable pressure on salespeople- Neglecting to assign/pay the commission due when a

territory is split and distributed among salespeople- Being a poor role model for ethical sales behavior- Looking the other way when staff members behave

unethically

QUESTIONABLE EMPLOYER ACTIVITIES

Taking a good look in the ethical “mirror” can be very revealing. Just as it’s important to check your physical

appearance before you start your day, isn’t important to examine your personal ethics before you begin a career in sales. Keep in mind that you are the one who can make a difference in your firm. Every ethical sales department is

made up of ethical salespeople.

ETHICAL “MIRROR”