What is Business Ethics
The rightness and wrongness of motives and behavior in dealing with others that encompasses moral principles is called ethics. Here people choose between two or more courses of action. Ethics is an important factor in interpersonal relationship where persuasion and leadership are involved, and it becomes still more important when one person must rely on the objectivity and integrity of another person. Simply stated, ethical conduct involves an individual following established, accepted moral principle of his or her own profession. It also a personal view of what is right or wrong (Linsay, 2001).
Ethics provides a basis for deciding what is right or wrong in a given situation. Ethical standards for a profession are based on society’s standards, most industries have developed codes of behavior that are compatible with society’s standards. Abiding by these standards promotes goodwill and builds long-term relationships. The trust that these practices bring to the market place reduces the risk of buying. The fundamental ground rule for such a salesperson is “the welfare of the customer comes first and foremost”(Maurice & Jessie, 1992).
Why are Ethical Standards Necessary in Professional Selling
Understanding ethical problems is the first step toward building a reputation for having high standard of personal integrity. Ethical problems can occur within the company, with other companies and customers or within the society
Ethical issues arise in virtually every aspects of selling. But for many salespeople and customers alike, there seems to be a sort of tacit agreement not to refer to ethical issues unless it becomes absolutely impossible to avoid doing so.
A study in Business Horizons magazine from Indiana University, found that customers increasingly base their buying decisions on whether they believe a company is ethical. Companies that take the “high road”, will make lifelong customers out ...