Dealing With Ethical Dilemma: Interventions for Sales Force

Dealing With Ethical Dilemma: Interventions for Sales Force

Shobha Mishra, Vibhuti Tripathi
DOI: 10.4018/978-1-7998-8911-3.ch018
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Abstract

The unique role of salespeople as “revenue generators” for any organization is pivotal for its growth and success. An interfacing role of salesperson between organization and customers facilitates customer belief and builds long-term relationships. Due to affiliative separation, salespersons face ethical dilemmas more often than their counterparts. The chapter delineates the unique characteristics of sales behavior and major influencers that affect a salesperson's ethical/unethical decision making. The authors recommend designing of effective ethical plan and its implementation to inculcate a robust ethical environment/culture within an organization.
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Introduction

Seamless global business operations call for managing a culturally diverse set of employees. Because different cultures interpret diverse viewpoints differently, it is critical to understand ethical standards of different individuals and create ethically sound work culture. Controlling ethical behavior becomes more difficult with employees coming from different ethnic backgrounds. Although, parenting and socialization, education, and religion provide primary cultural ideals; secondary circumstances also affect ethical conduct. These include disparities in law systems between countries, acceptable management systems for human resources, corporate culture, professional cultures, and codes of conduct. There is widespread consensus that a country's culture is inextricably linked to its managers' ethical behavior. The conduct can be demonstrated in two ways: first, by overt activities such as public or corporate statements and actions regarding ethical behavior; second, through a collection of ethical attitudes and beliefs.

Effective sales management is critical to the success of any organization, and salespersons are considered an integral part of an organization. In today's tumultuous business environment, the sales role must evolve into a dynamic source of business value creation and creativity. The unique role of salespeople as “revenue generators” (Churchill et al., 1979) for any organization is pivotal for its growth and success. Rising consumer demands necessitate a progressive sales organization as an integral component of a customer-centric organization, salesperson versatility tailored to evolving needs, and salespeople acting as primary agents of marketing intelligence providing input to their businesses. Acting as a key person in building trust and loyalty between customer and organization, they are also responsible for achieving high sales levels, thus safeguarding their company’s survival and growth. Furthermore, an interfacing role of salesperson between organization and customers facilitates customer belief and builds and sustains long-term relationships (Doney & Cannon, 1997). Unfortunately, salespeople predominantly suffer regular dissonance due to short-run pressures to attain sales goals and long-run concerns for customer satisfaction and goodwill. Salespeople are isolated from their supervisors and other company employees physically, psychologically, and socially (Belasco, 1966).

Salespeople occupy a boundary position; he/she is often in the unenviable position of having to cope with expectations of two or more stakeholders that are likely to have different objectives (Pruden, 1969; Aldrich & Herker, 1977). As a result, they often find themselves in situations, compelling them to adjust with ethical standards to react to many requests simultaneously (Fukawa & Erevelles, 2014). The multifaceted nature of many sales jobs like selling, customer service, grievance handling, order delivery, relationship building can form a situation for developing ethical conflict (Slåtten, 2008). Without close supervision, salespeople may employ unethical behavior without fear of reprisal (or punishment) from their organization. Due to this organizational and affiliative separation, salespeople may have inadequate knowledge and guidance about appropriate conduct in different selling situations.

Sales professionals are the most common targets of ethical condemnation (Abratt & Penman, 2002; Murphy & Laczniak, 1981). They are challenged to create customer value ethically while meeting their personal and professional goals. In terms of behavior, salespeople must deal with customers from various cultures, social experiences, and educational backgrounds. In addition, they must be able to adjust their behavior as required, sometimes at the expense of ethical standards, to achieve organizational goals. Salespeople encounter ethical dilemmas when dealing with competitors, customers, coworkers, and employers and are inclined to deal with such situations based on their physical and situational ethical conduct (Chonko & Burnett, 1983).

Key Terms in this Chapter

Sales Ethics: It involves actions that assure respect, fairness, honesty, and integrity for each contact, prospect, and buyer.

Individual Factors: It takes into account the aspects that are unique to an individual employee. It is a result of birth related aspects like race, gender, culture etc. and aspects related to human evolution and socialization like attitudes, personality, motives, values, self-esteem, education, employment, etc.).

Ethical Conflict: Ethical Conflict occurs when people perceive their duties as inconsistent with their duties and responsibilities toward other groups (including oneself).

Ethical Sales Behavior: It is defined as fair and honest behavior that allows a salesperson to build a long-term relationship with a customer based on satisfaction and trust.

Ethical Climate: The uniform and defined set of understandings about appropriate behavior and how ethical concerns will be addressed and resolved. This ethos sets the tone for decision-making at all levels and under all conditions.

Salesperson: A person who is responsible for selling a product or service in a specific territory.

Codes of Ethics: A set of values, principles, and rules used by individuals and organizations to govern and differentiate between right and wrong and acts as a means to attain high ethical standards.

Unethical Sales Behavior: An act of a sales representative resulting in immoral, wrong, and unacceptable behavior resulting in customer loss and significant damage to the brand for his/her gain.

Ethical Dilemma: A disagreement between two options in which a difficult decision must be made between two courses of conduct, one of which violates a moral norm.

Situational Factors: The factors which expresses the situational influences that act on an individual to encourage or inhibit ethical decision-making.

Organizational Ethics: A collection of common beliefs about what constitutes ethical conduct and how ethical problems can be addressed.

Ethics: A moral philosophy or system of values practiced by a person or group of people.

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