26 Ethical & Social Issues in Sales & Distribution Management

Download as doc, pdf, or txt
Download as doc, pdf, or txt
You are on page 1of 1

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.

You might also like