UNETHICAL ISSUES IN SALES

AND MARKETING

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 ETHICAL ISSUES IN BUSINESS
• Due to increased emphasis on the business ethics over last three decades,
this field is suffering and is troubled by the lack of proper directions and is
struck in the issues like logic, reasons etc.

• The past conception of the companies about the ethical issues in business
was related to the administration of rules, regulations in the organizations.

• Today, people from the top management level and the business owners
have understood that this concept of ethical issues in business is far
superior than handling the rules and regulations and their effective
implementation.
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• In the current business environment, the issues like fairness, justice
and honesty are the main issues that are posing complex dilemma to
the businesses.

• Any wrong or biased decision can have a profound impact on the

goodwill of the company as well as its market position.

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 BUSINESS FUNCTION ETHICS

• The function of this business unit is to provide understanding about

the four basic aspects of a business- Product, Price, Place and
Promotion.

• It provides interface to the management related not only to the

customers but the other related parties like media, investors,
distribution system, supply chain partners, legal framework, as well
as others.

• Marketing can be defined as practices that emphasize transparent,

trustworthy, and responsible personal and organizational marketing
policies and actions that exhibit integrity as well as fairness
to consumers and other stakeholders
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• Accounting ethics articles help in understanding the importance of
business code of ethics, besides the profit/loss, balance sheets and
financial statements.

• Enhancing the financial figures and statements which is manipulated

for the purpose of achieving something which is unethical.

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FUNDAMENTAL ISSUES

• The most fundamental or essential ethical issues that businesses

must face are integrity and trust.

• When customers perceive that a company is exhibiting an

unwavering commitment to ethical business practices, a high

level of trust can develop between the business and the people
it seeks to serve.

This article throws light on the seven major issues faced by

human
6/14/2018 resource, i.e, (1) BBA
Employment
301 VEB Issues, (2) Cash and
6
Managing Diversity: recruiting a diverse workforce, enforces equal
opportunity in all training programs and is fulfilled when every
employee is able to enjoy a respectful workplace environment
that values their contributions. Maximizing the value of each
employees contribution is a key element in your business's success.

• Decision-Making Issues : Ethical decision-making processes should

centre on protecting employee and customer rights, making sure all
business operations are fair and just, protecting the common good
and making sure individual values and beliefs of workers
are protected.
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• Compliance and Governance Issues : Businesses are expected to fully
comply with environmental laws, federal and state safety regulations,
fiscal and monetary reporting statutes and all applicable civil rights
laws. Commonly it states that, no one may ask any employee to break
the law, or go against company values, policies and procedures.

• Social Networking Ethics : Comments regarding employers or co-

workers posted on social networking websites are costing employees
jobs across the country.
• Harassment in the Workplace : Maintaining professional
workplace relationships between employees is a continuing
challenge for employers regardless of the industry.
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 Some Marketing Ethics

• Marketing function: face of the business

• Marketing ethics is an area that deals with

the moral principles behind marketing
applicable to different spheres such as in
product, pricing, Placing (Distribution),
promotion & advertising etc...

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 Ethical issues

• Deception
• Bribery
• Confidential Information
• Puffery
• Defamation
• Reciprocity
• Interference with competitors

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 1. Deception

• Deliberately presenting inaccurate information, or

lying, to a customer is illegal.
However, misleading customers by telling half-truths or
withholding important information is a matter of ethics.

2. Bribery

• payments to buyers to influence decisions

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 3. Confidential Information
• Offering information about a customer’s competitor in exchange for an
order is unethical. Long-term relationships can develop only when
customers trust salespeople to maintain confidentiality. Disclosing
confidential information gives a bad reputation (untrustworthy) to the
salesperson.

4. Misrepresentation or Sales Puffery

• At times salespersons exaggerate performance of products. Glowing
descriptions are considered as Opinions or Sales Puffery.

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 5. Business Defamation

• It occurs when a salesperson makes unfair or untrue

statements to the customer about competitor, its
products, or its salespeople.

6. Reciprocity
• It is a special relationship in which two companies agree
to buy products from each other. These agreements are
illegal if one company forces the other one to join the
agreement.

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 9. Interference with Competitors

• Salespeople may illegally interfere with

competitors by
– Trying to get a customer to break a contract with a
competitor.
– Tampering with a competitor’s product.
– Confusing a competitor’s market research by buying
merchandise from stores.

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 What is ‘ethical’ ?
• Be Honest
• State True facts
• Fair pricing
• Don’t hide any important information
• Full disclosure of information
• Confidentiality

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 ADVANTAGES OF BUSINESS ETHICS
• Business ethics offer companies a competitive advantage.

• Good will of the firm hikes depending on its responds towards it

ethical issues

• Productivity through rigid, firm and sincere workers as well as other

business chain members.

• Through increasing morale and trust business can increase their

market share

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