Topic 7

Sales Ethics
 Why ethics are important?

• Prudential Financial, Inc. is an

American Fortune Global 500
and Fortune 500 company
whose subsidiaries provide
insurance, investment
management, and other
financial products and services
to both retail and institutional
customers throughout the
United States and in over 40
other countries.
 Why ethics are important?
• Company paid $ 2.6 billion to policy makers.
• Sales people deceived the customers that the new
policies are cheaper than the old ones.
• Organizations also support sales people to deceive
the customers.
• Customers replaced old policies with the new ones.
• In reality the new policies are more costly than the
old ones.
Benefits of having an ethical sales force
 Assignment-7a
1. Why ethics are important? (at least 3 points)
 Remember !
• World of personal selling is
full of ethical dilemmas.
 Remember !
• Ethical dilemmas, also
known as a moral
dilemmas, are situations in
which there is a choice to
be made between two
options.
 To become ethical
(Remember 2 points)
1. Must be able to differentiate between right and
wrong.
2. Intentionally choose to do right things.
 To become an ethical sales person
(Most important skill set that is required)
 To become an ethical sales person
(Most important skill set that is required)

Self Management Competency

Very difficult to follow sales ethics if
self management skills are missing….
You can be an ethical sales person if
you have self management skills
 Assignment 7b
1. Is there any relation between “Self
Management” and “Sales Ethics or Sales
Ethical Practices” ?
2. If yes then how?
3. If no then why?
 Self Management Skills (to become an ethical sales person)
1. Set long term goal (personal vision) through self awareness process.
2. Self motivation Skill then Peak Performance
3. Learning to think (Critical Thinking)
4. Self esteem & building self confidence
5. Basic presentation skills & listening skills
6. Time management skills
7. Self-discipline
8. Personal grooming, Etiquettes & Behavior
9. Stress management
10. Conflict resolution (Problem Solving Skills)
11. Emotional intelligence (how to control you emotions “must be caring” then control other’s emotions)
12. Criticism (Constructive / Destructive)
13. Empowerment (support others to make others strong then strong team)
14. Persuasion (skill to convince others without pressurizing others)
15. Trust / credibility (gain the trust of others)
16. Political Skills (whenever do anything then let others understand that that action was in the benefit of the company)
17. Leadership Skills.
14
 Assignment 7c
1. Which self management skill you think is the most
important?
2. Why this skill is the most important?
3. How the sales person could be an ethical sales
person due to this self management skill?
Few issues if not handled seriously could be the source
of unethical practices in the sales department
1. Hiring and Firing.
1. Hiring should be as per company policies.
2. Hired person should have the required skill set.
3. Before firing give proper training.
4. Before firing give several verbal / written warnings.
2. Key accounts
1. (how to handle) / sales people must their limits.
3. Expense accounts (impress money).
1. Spend money to develop close relations and then get
unethical support from those customers.
4. Gifts for Buyers.
5. Bribes.
6. Entertainment (Foreign trainings for customers)
 Assignment 7d
1. What few issues if not handled properly / seriously
could be the source of unethical practices in the
sales department?
 Building a Sales Ethics Programs
(Two ways to follow sales ethics program)
1. Codes of Ethics (rules / policies that defines ethics)
1. A code of ethics and professional conduct outlines
the ethical principles that govern decisions and
behavior at a company or organization. They give
general outlines of how employees should behave.
2. Ethics Training (enable to identify b/w right & wrong)
1. Ethics Training. The purpose of Ethics Training is "to
enable employees to identify and deal
with ethical problems developing their moral
intuitions, which are implicit in everyday choices and
actions"
 Assignment 7e
1. Why “Code of Ethics” are important to develop
ethical sales department?
2. Why “Sales Ethics Training” should be given to
every sales person?
Sales Ethics & Ethical Leadership
 How ethical sales leaders work?
• Ethical leaders set high ethical standards and act in
accordance with them.
• They influence ethical values of the organization
through their behavior.
 Assignment 7f
1. Is it possible to create an ethical environment in
the sales department or to make sales people
ethical without the presence of Ethical Leadership?
(yes / no)
2. If yes then why?
3. If no then why?
How ethical sales leaders work?
 What ethical leaders do to develop an
ethical sales department?
1. Set ethical standards.
2. Lead by example (show ethics through their own behavior).
3. Give honest feedback.
4. Give clarity about (what is acceptable / unacceptable)
5. Punish if someone follow unethical practices.
6. Support the whistle blowers.
7. Allow room for mistakes.
8. Leaders should be within every ones reach.
9. Proactive & explicit communication.
10. Always support the sales team.
11. Having a caring personality.
12. Take others suggestions in decision making process.
13. Show highest level of integrity.
 Assignment 7g
1. What few things an ethical sales leader does
to develop ethical culture in the sales
department?
What is an ethical culture?
Ethical Culture develops a unique sales department ?
• Ethical culture is the key to create an organization
that supports people making good ethical decisions
and behaving ethically every day.