1. Don't Intentionally Misrepresent Anything. Never, Never, Never Lie to a Customer. About Anything. Ever. Period. 2. Fix Any Important Misunderstandings That You Can. It's Possible That Your Customer Will Form

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• CHAPTER 3
ETHICAL AND LEGAL
CONSIDERATIONS
IN SELLING
Glengarry Glen Ross
What were the principal ethical predicaments which Sheldon Levine (Jack Lemmon) and his cohorts faced? •How could Shelley's extenuating circumstances justify his actions?What types of external pressures influenced the salespeople's unethical selling practices?How did the sales manager (Kevin Spacey) and top management (Mitch & Murray) foster the unethical practices?How the nameless motivational speaker (Alec Baldwin) address the issues of ethics?How does Dave Moss (Ed Harris), rationalize breaking the law?How does George Aaronow(Alan Arkin) violate rules of ethics? What was unethical about Ricky Roma's (Al Pacino) methods in prospecting and closing James Link (Jonathan Pryce)? •Why was Ricky Roma's handling of Mr.Link 's cancellation unethical? How would you change the sales environment to promote ethical selling practices without compromising overall sales performance? ________________________________________

• The Power of Ethical Management
by Dr. Ken Blanchard & Dr. Norman Vincent Peale
The basic message of their book is simple:
1.You don’t have to cheat to win!
2.“Nice guys may appear to finish last, but usually they are running in a different race.” 3.Cheating, lying, and short-changing the customer on service 1.may bring a satisfactory profit today,

2.but it is a sure way to court failure for the future.
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• THE ETHICAL DILEMMA:
Do honest salespeople finish last?
Ethical Questions
What method do we use to determine moral standards?
Why be moral at all?
Are there moral standards which are common to all humanity? •Is free will a necessary condition for moral praise or blame?

The Origin of Ethics
1.Legal Standards are enforced
2.Ethical standards come from society
Bases for Ethical Systems
DeontologicalStandards-based ethics
uses specific rules
TeleologicalResults-Based Ethics
defines right and wrong in terms of end results
UtilitarianismStarted by Jeremy Bentham (1748-1832)
Tried to reform some of the unfair laws in England
Developed a theory that the morally correct rule was the one that provided o"the greatest good to the greatest number of people. The greatest good for the greatest number" Ethical Ambivalence results from learning that everything is relative. •Are there any moral absolutes?

Is the language of ethics different from other uses of language? Guidelines for Ethical Behavior
Universal Nature The golden rule
Everyone plays by the same rules
Truth TellingTrust facilitates cooperation
Responsibility for One's ActionsDon't blame others for your problems •The "victim" mentality

________________________________________
• INFLUENCES ON THE SALESPERSON’S ETHICS
Company Code of Ethics
Government action and fear of retribution have induced more companies to adopt a code Typical
issues
coveredExpense accounts
Gift giving
Unethical demands by a buyer
Promises about performance or delivery
Selling unnecessary products

Role Modeling by Executives and Sales Managers
Examples Set by Colleagues and Competitor
The Bottom LineProfit?
Survival?
Groupthink
peer pressure
group develops a set of shared perspectives that may be unrealistic but are strongly supported by the members of the group.
Gamesmanship
winning
for the sake of winning

• DEVELOPING A PERSONAL CODE OF ETHICS
Responsibility
to
Selfyour conscience
Responsibility
to
your
CompanyInaccuracies in Expense Accounts
Honesty in Using Time and Resources
Accuracy in Filling Out Order Forms
Representing the Company
Responsibility
to
Competitors
Responsibility
to
CustomersOverselling and Misrepresenting Products or Services •Keeping Confidences
Gifts
Entertainment...
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