The document discusses ethical and social issues in sales and distribution management. It outlines how some companies have engaged in unethical marketing practices to maximize profits and have faced controversies. It also discusses the concepts of ethics in business and corporate social responsibility. Companies should contribute to community welfare, not just profits. International agreements like the UN Global Compact aim to ensure corporate social responsibility across human rights, labor standards, and the environment.
The document discusses ethical and social issues in sales and distribution management. It outlines how some companies have engaged in unethical marketing practices to maximize profits and have faced controversies. It also discusses the concepts of ethics in business and corporate social responsibility. Companies should contribute to community welfare, not just profits. International agreements like the UN Global Compact aim to ensure corporate social responsibility across human rights, labor standards, and the environment.
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26 Ethical & Social Issues in sales & Distribution Management
The document discusses ethical and social issues in sales and distribution management. It outlines how some companies have engaged in unethical marketing practices to maximize profits and have faced controversies. It also discusses the concepts of ethics in business and corporate social responsibility. Companies should contribute to community welfare, not just profits. International agreements like the UN Global Compact aim to ensure corporate social responsibility across human rights, labor standards, and the environment.
The document discusses ethical and social issues in sales and distribution management. It outlines how some companies have engaged in unethical marketing practices to maximize profits and have faced controversies. It also discusses the concepts of ethics in business and corporate social responsibility. Companies should contribute to community welfare, not just profits. International agreements like the UN Global Compact aim to ensure corporate social responsibility across human rights, labor standards, and the environment.
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CHAPTER 26
ETHICAL & SOCIAL ISSUES IN SALES & DISTRIBUTION MANAGEMENT
In Attempt to Profit Maximization – Companies resort to Unethical Marketing Practices. Nestle/Nike/McDonald – have been in controversies for violating International Codes. ETHICS IN BUSINESS Why is it that people have a cunning and dishonest perception about Sales people. Ethics: Rules / Standards that govern the conduct of a person of a profession. Corporate Social Responsibility: is commitment of businesses to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve4 their quality of life. WHAT IS SOCIAL RESPONSIBILITY Businesses should not only earn profits but instead contribute to the welfare of the communities. Definition: Keith says “Social Responsibility refers to “businesses’ decisions and actions taken for reasons at least partially beyond the firm’s direct economic or technical interest”. Better Communication with Customers Cultivate higher ethical expectation Company must measure public expectation from time to time. EVOLUTION OF CORPORATE SOCIAL RESPONSIBILITY ILO TRIPARTITE DECLARATIO (1977)- Labour and Employer-Employee relations, OECD Code for Multinationals(1976), UN Global Compact- ensures corporate social responsibility across: Human rights, labor standards, environment. LEVELS OF SOCIAL RESPONSIBILITY 1. Obeying the Law 2. Meeting Public Expectations 3. Anticipating New Social Demands 4. Leading the Way WHAT INFLUENCES ETHICAL BEHAVIOUR 1. Individual’s Role- Obedience & Punishment / Instrumental purpose and exchanges / interpersonal accord, conformity, mutual expectation / social accord and system maintenance / Social contracts & individual rights / universal ethical principles. 2. Organization’s Role : Employees follow Organization’s rules & regulation MANAGEMENT’S ETHICAL RESPONSIBILITIES 1. Ethical Issues Facing a Sales Manager : Relationship with subordinates, Company (proper accounts), Customers, Competitors, Dealers & Suppliers. 2. Ethical Issues Facing a Sales Person : Top Mgt., Other Salesperson, dealing with the Customers (magnifying and marketing, criticizing competitors, quoting diff. price to diff. buyers, asking customer info. regarding competitors.