Sales Ethics free essay sample

Individual Assignment : Sales Ethics is an Oxymoron It is often disputed amongst business enthusiasts whether ‘sales ethics is an oxymoron? ’ A few decades ago, understanding and fostering ethical decision-making in the business world wasn’t as complicated as it is today. It is argued that although individual factors play a significant role in the ethical practice of day-to-day business, ultimately it is up to management and the top-level hierarchy of a firm that ultimately sets the standards when it comes to trading ethically. This paper discusses why sales ethics is not an oxymoron and why management is the key source of guidance for ethical behavior within an organization. The presence of business scandals has increasingly become the focus of the media that draws our attention to the ethical policies and the practice of leaders of our corporate world. Scandals such as ENRON and MCI are just a few of the business demonstrating lack of ethical codes and guidelines at the top of many organizations. The Economist stated in 2007 that out of 165 business, over 65 sales executives were under investigation for violation of ethical behavior in the U. S alone (Mulki, Jaramillo and Locander, 2008, 125). Sales people are the main function of a business that are continuously under pressure to produce results and so are more susceptible to unethical practice. Furthermore, research shows that the general public find sales people the most untrustworthy function of a business and describe them as having low ethical standards. Corporate bodies have responded to this by implementing a set code of ethics and policies which each employee, either at top or bottom level hierarchy must abide by. For example the pharmaceutical industry has undergone much scrutiny, in regards to questionable promotional tactics such as lavish gifts in order to have their medicines prescribed over competitors. Recognizing these concerns, the industry trade association created a set of industry guidelines for sales people in order to regulate salespersons interactions with physicians. However the level of commitment to these voluntary guidelines rest with senior management and if they are put into practice. The path-goal theory examined by (Mulki, Jaramillo and Locander, 2008, 126) demonstrates that management is in fact responsible for goal setting, clarifying oaths to achieve these goals and implementing rewards systems dependent on achieving these goals. Most would agree that the face of any organization is undoubtly its sales force, so unfortunately the manner in which a sales person behaves in crucial in determining a companies reputation amongst customers and also other business. Schwepker and Good, 2009, 609) describe the results of a recent study that showed sales managers ethical attitude influence hiring and training decisions which in turn impacts each sales person’s ethical behavior. In the twenty-first century business are expanding globally, and so the ‘black and white’ of decision making is becoming increasingly complex, especial ly for employees in the lower levels of management, across different cultures. Literature suggests that overall, on a national level employees with lower incomes are directly related to high corruption, or, as a person progresses higher in the organizational hierarchy, money assumes lesser importance (M. Sui and Lam, 2009). This is a significant factor for top management to consider, as they enforce the actions and procedures of the firm and ultimately decide whether each employee, whether top tier or bottom tier, in any culture will perform in an ethical manner. writing services agreement Therefore it is even more imperative for lower level management to strictly enforce the expectations of their employees and possibly even have ‘extra’ supervision in those areas where the norm or social expectations are significantly different. From the above points it is therefore important to examine an ‘ethical climate’. This term is defined as ‘those aspects of work climate that determine what constitutes ethical behavior at work’. Mulki, Jaramillo and Locander, 2008) states that individual employees use their own values and personal beliefs as a reference in making ethical decisions, but frame these against the guidelines received by co-workers and managers. Unlike individual factors, the decision making process is greatly influenced by organizational factors. Strict guides should be put in place in reference to conflict, training, supervision, rewards and punishment in order to successfully implement organizational policies and procedures. Studies also show that sales managers be consistent in implementing their own standards with that of the industry so there is no variance amongst employees from other competitive businesses (Mulki, Jaramillo and Locander, 2008,). Competitive sales environments, increasing customer demands, high pressure to hit sales targets may be the cause of unethical performance in the business. Thus, management can use appropriate pressures and standards to ensure ethical policies are complied with or individuals will be prompted to behave unethically. Furthermore, findings from (M. Sui and Lam, 2009, 167) report that managers have political power to somewhat shape the organisations culture and behavior of subornates. In saying so, when managers demonstrate a stronger belief in integrity their employees feel a higher sense of job satisfaction and are hence more committed to not only their job, but the values and beliefs of the organization. The findings state that hiring and training ‘morally upstanding’ employees, managers gain a greater importance and employees are encouraged to work harder for the business. We can thus summarize that training employees to behave ethically not only is regulatory in most business, but is also highly profitable for both company and employee. As a salesperson, your professional reputation is the most important asset you possess, much like an organization. Individuals do have their own inputs into each action, however if management themselves follow a well structured set of ethical policies and procedures, employees will follow in the same ethical manner. Ethical performance in sales is therefore achievable, if implemented and carried out by corporate bodies. As Boe (2009, 16) states, the importance of impeccable business ethics and professional character are key considerations when selecting a sales person. The most sought after traits include integrity, trustworthiness, competency and reliability. It can be argued that all these priceless character traits also apply to the identity of an organization. Thus, in order for a company to build and maintain strong customer relationships, it is imperative that management themselves set the standards for behaving in an ethical manner in order for the whole company to be successful. References Schwepker Jr,Charles H and David J. Good. 2009. â€Å" Moral Judgement and its Impacts on Business-to-Business Sales Performance and Customer Relationships. † Journal of Business Ethics 98: 609-625. http://proquest. umi. com. dbgw. lis. curtin. edu. au/pqdweb? index=0did=2275299331SrchMode=1sid=1Fmt=6VInst=PRODVType=PQDRQT=309VName=PQDTS=1301305986clientId=22212 Schwepker and Good, 2009 Mulki, Jay P, Jorge Fernando Jaramillo and William B. Locander. 2008. â€Å"Critical Role of Leadership on Ethical Climate and Salesperson Behaviors. † Journal of Business Ethics 86: 125-141. ttp://proquest. umi. com. dbgw. lis. curtin. edu. au/pqdweb? index=55did=1675577171SrchMode=1sid=2Fmt=6VInst=PRODVType=PQDRQT=309VName=PQDTS=1301292572clientId=22212 Mulki, Jaramillo and Locander, 2008 M. Siu, Noel Y and Kit-Chun Joanna Lam. 2009. â€Å"A Comparative Study of Ethical Perceptions of Managers and Non-Managers. † Journal of Business Ethics 88: 167-183. http://proquest. umi. com. dbgw. lis. curtin. edu. au/pqdweb? index=57did=1711327301SrchMode=1sid=2Fmt=6VInst=PRODVType=PQDRQT=309VName=PQDTS=1301293094clientId=22212 M. Sui and Lam, 2009 Boe, John. 2009. â€Å" The Ripple Effect. † Burlington 54 (6): 15-17. http://proquest. umi. com. dbgw. lis. curtin. edu. au/pqdweb? index=8did=1730425281SrchMode=3sid=2Fmt=3VInst=PRODVType=PQDRQT=309VName=PQDTS=1301306952clientId=22212aid=1 Boe 2009 Dubinsky, Alan J, Rajan Nataraajan and Wen-Yeh Huang. 2004. â€Å"The Influence of Moral Philosophy on Retail Salespeoples Ethical Perceptions. † The Journal of Consumer Salespeople’s Ethical Perceptions 38 (2): 297-320.