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
For example, a salesperson once informed that the late delivery of a critical computer part had been caused by a "screw up" of an air express firm. Sales managers provide another important role model. Like trust, credibility takes time to build and depends heavily on your professional reputation. We strongly support the premise, "Bad ethics is bad business and unethical sales practices will ultimately destroy relationships with customers. Factors Influencing the Ethics of SalespeopleIn the field of personal selling the temptation to maximize short term gains by some type of unethical conduct is always present. The company has purchased full page newspaper ads to apologize for the "intolerable" deceptive sakes practices. The temptation to take the easy road to achieve short term gains is always present. According to Barton Stephen (2001), legal principles guide market exchange relationships. Schulte realized that the sales approach recommended by his sales manager would require that he mislead his established customers. Although top management personnel are usually far removed from day-to-day selling activities, they can have a major impact on salespeople"tms conduct. Salespeople are often in sales contests to increase sales of certain products. If you help your customers with what they need, they will come back to you for what they want. What is good for the customer must always supercede what"tms good for me. Some salespeople feel justified in making holdback sales to fit within the guidelines of the contest.