The Power of Selling

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The Power of Selling
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Chapter 4Business EthicsThe Power of Doing the
Right Thing
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Video Case

• The video, Do the Right Thing, features Paul
  Blake, vice president of Sales at Greater Media
  Philadelphia
• In the video, Paul shares his thoughts on ethics
  in selling and how he expects his salespeople to
  make a sale the right way, and to not sell it to
  make a sale today but to try and create a
  customer for life
• Source NBC Universal, Inc

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Video Ride-along Discussion Questions

• Discuss the importance of ethics in the selling
  process.
• In today's competitive environment, is it
  necessary to cheat to win? Discuss.

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Chapter Objectives

• Understand ethics and what composes ethical
  behavior.
• Discuss the role of values in ethics.
• Understand how you define your personal code of
  ethics.
• Identify how company policies reflect business
  ethics.
• Learn about the ethics of your résumé.
• Understand how to ask references to speak
  honestly on your behalf.

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What is Ethics?

• Ethics System that defines right and wrong, and
  provides a guiding philosophy for every decision
  you make
• Two aspects to ethics
• The ability to discern right from wrong, good
  from evil, and propriety from impropriety
• The commitment to do what is right, good, and
  proper

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What is Ethics?

• The video, Carly Fiorina - Personal Ethics and
  Hewlett-Packard, features former Hewlett-Packard
  CEO Carly Fiorina
• She discusses the importance of personal ethics
  in doing business, and shares her thoughts on
  being fired by HP
• Source FORA.tv

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Personal EthicsYour Behavior Defines you

• Ethical dilemma A situation in which options
  are presented which may be right or wrong
• You make your decision based on your personal
  ethics
• Your actions reflect your own moral beliefs and
  moral conduct
• The Golden Rule for your personal ethics Do
  unto others as you would have them do unto you

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Personal EthicsYour Behavior Defines you

• A highly developed set of personal ethics can
  guide you when you are in a situation that
  challenges you morally
• To develop a strong sense of ethics
• Do what you believe in
• Take actions consistent with your principles

CONSISTENTLY
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Do the Right Thing

• Unethical behavior Acting in a way that is not
  responsible or deemed to be the standard of what
  is right, good, and fair
• Essence of ethics
• Choosing to do the right thing when you have a
  choice of actions
• The video, Ethics - Corporate Presentation,
  consists of interviews about ethics and
  perceptions of Eliot Spitzer and his actions
• Source Steven R. Hoover

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Business EthicsWhat Makes a Company Ethical?

• Business ethics Application of ethical behavior
  by a business or in a business environment
• An ethical business
• Abides by laws and appropriate regulations
• Operates honestly
• Competes fairly
• Provides a reasonable environment for its
  employees
• Creates partnerships with customers, vendors, and
  investors

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Characteristics of an Ethical Company

• Respect and fair treatment of employees,
  customers, investors, vendors, community, and all
  who have a stake in and come in contact with the
  organization
• Honest communication to all stakeholders
  internally and externally
• Integrity in all dealings with all stakeholders
• High standards for personal accountability and
  ethical behavior
• Clear communication of internal and external
  policies to appropriate stakeholders

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High-Profile Unethical Behavior in Business
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High-Profile Unethical Behavior in Business

• Enron
• Began as a traditional energy company in 1985
• In 1996, grew rapidly due to the deregulation of
  energy markets
• Began to expand - borrowed money to fund the new
  businesses
• The debt made the company look less profitable
• Senior management created paper companies in
  order to keep the debt off the books

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High-Profile Unethical Behavior in Business

• A completely different set of financial
  statements were shown to shareholders (owners of
  the company) and the government (Securities
  Exchange Commission)
• This accounting made Enron look extremely
  profitable - more people bought stock in the
  company
• Lack of disclosure is against the law, as
  publically traded companies are required to
  disclose accurate financial statements to
  shareholders and the SEC
• On October 16, 2001 the company announced a loss
  of 638 million
• On October 22 of that year, the SEC announced
  that Enron was under investigation

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High-Profile Unethical Behavior in Business

• The stock price continued to fall and the company
  was unable to repay its commitments to its
  shareholders
• The company filed for Chapter 11 bankruptcy
  protection due to the unethical and illegal
  behavior on the part of senior management
• Innocent people lost their money and their jobs
• As a result of the Enron scandal, a new law named
  the Sarbanes-Oxley Act was enacted in 2002
• Sarbanes-Oxley Act Requires tighter financial
  reporting controls for publically traded
  companies

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High-Profile Unethical Behavior in Business

• The epitome of unethical behavior - Bernard
  Madoff
• Convicted of running a 65 billion fraud scheme
  on his investors
• He reported extremely high returns on his
  clients investments, encouraging them to
  reinvest with even more money
• His clientele included Actor Kevin Bacon and his
  wife Kyra Sedgewick and a charity of Steven
  Spielberg

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Ethical Dilemmas in Business

• Companies face dilemmas that are not necessarily
  illegal but are just as important to navigate
• Examples of unethical behavior
• Bribing an executive
• Saying or promising things that are knowingly
  untrue
• Treating employees unfairly

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Corporate Social Responsibility (CSR)

• Company actions that balance the interests of all
  stakeholders
• Triple bottom line When companies measure the
  impact of their performance along the three
  dimensions of social, economic, and environmental
  impact
• Many companies make a commitment to social
  responsibility and the triple bottom line
• Source Fortune

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McDonalds Commitment to Social Responsibility

• The video, McDonald's Corporate Social
  Responsibility-Making Progress, showcases the
  efforts taken by McDonald's to improve its social
  and environmental performance
• To achieve this, McDonald's has worked with its
  stakeholders around the world-from the
  owner/operators who run restaurants in their
  local communities, to leading NGOs and third
  party experts

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Good Ethics Good Business

• Companies that consistently demonstrate ethical
  behavior and social responsibility generate
  better results
• In successful companies ethics is deeply
  integrated into the organization it defines how
  every employee from CEO to the lowest level
  employee behaves
• Targets commitment to ethics and social
  responsibility has been impressive
• Source Target Corporation

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Ethical Behavior in Sales

• The most visible positions in any organization in
  terms of ethics is sales
• Because it is the salesperson that comes in
  contact directly with the customer
• Salespersons conduct is a direct reflection of
  the organization and its ethics he represents
  the company
• Start with what is right, rather than what is
  acceptable
• 
  Peter Drucker
• 
  Famous Management Consultant and Author

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Power Point Lessons in Selling from the
Customers Point of View

• The customer is always right, except when he asks
  you to do something unethical
• In such situations, to uphold your ethics and
  maintain your relationship, SellingPower.com
  suggests the following steps
• Evaluate the situation with a clear head
• Dont jump to conclusions
• Identify the criteria you are using to make this
  judgment
• Seek counsel

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Understanding Values

• Values What is important to you, they are your
  guiding principles and beliefs they define how
  you live your life and they inform your ethics
• Family, friends, and your environment have a
  significant influence on you, you develop your
  own set of values
• HumanityQuest.com lists more than five hundred
  different values

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Understanding Values

• Examples of values
• Honesty
• Open communication
• Teamwork
• Integrity
• Prestige
• Security
• Helping others

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Understanding Values

• Loyalty
• Social responsibility
• Impact on society
• Creativity
• Achievement
• Global focus
• Religion

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Values of Organizations

• Companies choose their values and communicate
  them to employees, customers, and vendors on the
  company Web site and other company communications
  
• You will enjoy and excel at your job if you
  choose a company whose values you share

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Company Value Statements

• Whole Foods Market
• http//www.wholefoodsmarket.com/company/corevalues
  .php
• Source Whole Foods Market, Inc.
• Levi Strauss Co.
• http//www.levistrauss.com/company/ValuesAndVision
  .aspx
• Source Levi Strauss Co.
• Microsoft
• http//www.microsoft.com/about/default.mspx
• Source Microsoft Corporation

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Mission Statements Personal and Corporate
Guidelines

• Purpose of your mission statement
• It becomes your roadmap for your decisions,
  choices, and behavior
• Based on the companys ethics and values, it
  provides a broad direction as to what the company
  stands for and is different than an advertising
  slogan or motto

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Company Mission Statements

• Harley-Davidson
• http//www.harley-davidson.com/wcm/Content/Pages/S
  tudent_Center/student_center.jsp?localeen_USmiss
  ionstatement
• Source Harley-Davidson, Inc
• FedEx
• http//about.fedex.designcdt.com/our_company/compa
  ny_information/mission_statement
• Source FedEd Corporation
• Aflac Mission Statement
• http//www.aflac.com/us/en/aboutaflac/missionandva
  lues.aspx
• Source Aflac Incorporated

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Character and its Influence on Selling

• Character Features and beliefs that define you
• According to Josephson Institute character is
  composed of six core ethical values
• Trustworthiness
• Respect
• Responsibility
• Fairness
• Caring
• Citizenship

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Power of Your Reputation

• Reputation Your overall character as judged by
  other people
• Your reactions to many of the people in your
  day-to-day life are affected by their reputations

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Build Your Reputation Be an Industry Expert

• Write a blog
• Tweet regularly about industry issues
• Be a guest speaker or panelist at industry
  conferences or events online or in person

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Youre Only as Good as Your Word

• Not everyone in sales is ethical or honest
• The video, Honesty in the Workplace, highlights
  the problem of lying in the workplace
• Source NBC Universal, Inc

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Where the Rubber Meets the Road Facing
Challenges

• In a situation that challenges your ethics
• Follow your code of ethics and the companys code
  of ethics
• In a situation where you feel pressured to do
  something unethical
• Talk to your supervisor about it
• Talk to someone in the human resources department
  (if you dont feel that you can talk to your
  supervisor or your supervisor is part of the
  problem)

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Policies, Practices, and Cultures

• Employee handbook Written policies of company as
  they relate to the ethical actions of its
  employees

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Company Policies

• Gap Code of Business Conduct
• Source The Gap, Inc.
• McDonalds Standards of Business Conduct for
  Employees
• Source McDonalds Corporation
• United States GovernmentCode of Ethics
• Source United States House of Representatives
  Ethics Committee

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What Company Policies Say and What They Mean

• Basic issues that are frequently encountered in
  sales
• Conflicts of interest
• Bribes
• Noncompete clauses

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What Company Policies Say and What They Mean

• Conflict of interest A situation in which a
  person, such as a public official, an employee,
  or a professional, has a private or personal
  interest sufficient to appear to influence the
  objective exercise of his or her official duties
• Family interests When a relative of yours is
  either someone from whom you might purchase goods
  or services for your employer or when you have
  influence over the potential hiring of a family
  member of yours
• Gifts Something received without compensation or
  exchange
• Private use of employer property Using an
  employers propertycars, software, staplers, and
  so onfor nonbusiness purposes

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What Company Policies Say and What They Mean

• Moonlighting Holding down a second job on the
  side
• Bribe Money or favor given or promised in order
  to influence the judgment or conduct of a person
  in a position of trust something that serves to
  induce or influence
• Noncompete agreement A contract that prevents
  you from taking a job with a competitor after
  youve quit or been fired
• Trade secrets Something (as a formula) which has
  economic value to a business because it is not
  generally known or easily discoverable by
  observation and for which efforts have been made
  to maintain secrecy

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Unethical Behavior is no Laughing Matter

• If you think that taking office stationery or
  using the company phone for personal calls is no
  big deal, watch the video Business Ethics, which
  shows how this behavior is unethical
• Source Houndville.com

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Figure 4.4 - Texas Instruments Nondisclosure
Policy
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What is Whistle-Blowing?

• It is the act of publicly exposing the misconduct
  of a company or organization
• Whistle-blowers One who publicly exposes the
  misconduct of a company or organization

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What is Whistle-Blowing?

• The best protection whistle-blowers have is the
  Sarbanes-Oxley Act of 2002
• You have no obligation to blow the whistle you
  can simply refuse to take part in any unethical
  or illegal activity

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What is Whistle-Blowing?

• The video, The Insider 1999 Movie Trailer,
  includes highlights from the movie inspired by a
  true story starring Al Pacino and Russell Crowe
• The Insider tells the true story of a 60 Minutes
  television series, as seen through the eyes of a
  real tobacco executive, Jeffrey Wigand
• Source Touchstone Pictures

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What is Whistle-Blowing?

• The video, Erin Brockovich Trailer, includes
  highlights from the 2000 movie starring Julia
  Roberts
• Erin Brockovich tells the real life story of a
  legal assistant who nearly single-handedly
  exposed a power company accused of polluting a
  town's drinking water
• Source Universal Studios, Inc. and Columbia
  Pictures

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Ethics and the Law

• Examples of laws being enacted in response to
  unethical business practices
• Robinson-Patman Act, 1936
• Clayton Act, 1914
• CAN-SPAM Act

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Culture and Ethics

• Different cultures have different ideas about
  what is ethical
• Working in a different country or with a client
  from another culture does not excuse you from
  following unethical policies

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• Selling U

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Selling Your Personal Brand EthicallyRésumés and
References

• To strengthen your personal brand, behave in an
  ethical fashion throughout the hiring process
• Lying on your résumé is unethical sell yourself,
  not an exaggerated version of yourself
• Your résumé should have a brand story to tell

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Asking References to Speak about Your Personal
Brand

• References People you can rely on to speak on
  your behalf
• There are two types of references
• Personal Family members or friends
• Professional Managers, supervisors, professors,
  or other people who can speak about the quality
  of your work and work ethic
• When you choose references, make sure that the
  people you have in mind have good things to say
  about you
• When you speak to a prospective reference, be
  professional and specific

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Asking References to Speak about Your Personal
Brand

• Once you know whom youd like for your
  references, ask them personally
• Personally thank each of your references, even if
  you dont get the job
• Stay positive and keep in touch with your
  references
• Never list your references on your résumé, unless
  asked by the employer

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Asking References to Speak about Your Personal
Brand

• The video, How to Interview for a Job Preparing
  References for a Job Interview, features Katie
  Roney from the Expert Village
• Katie Roney talks about how references are a
  clutch in interviews and how they should be
  prepared, by letting them know that they are
  probably going to be contacted
• Source eHow.com

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Figure 4.5 - Sample References
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Letters of Recommendation

• It is a letter written by a professional
  (supervisor, manager, professor, or other
  professional) to testify to the skills and
  characteristics of a job candidate
• Bring the letters to your interview to
  demonstrate the support you have from
  professionals

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Letters of Recommendation

• The video, The Very Best Way to Present Your
  References, features Brian Krueger, President of
  CollegeGrad.com
• In the video, he discusses the very best way to
  present your references, which is to ask each of
  your references to write a letter of
  recommendation
• Brian Krueger also explains the importance and
  the format of letter of recommendation
• Source CollegeGrad.com

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Summary

• Business ethics is ethical behavior applied to a
  business situation
• An ethical dilemma is a situation that is
  presented with options that may be right or wrong
  
• Types of conflicts of interest family interests,
  gifts, private use of employer property, and
  moonlighting
• Lying on your résumé is not ethical and can have
  catastrophic consequences for your career