Ethical Issue Strength and Sales Activities - Essay Example

ETHICS IN SALES In the field of sales and marketing, research studies have indicated that ethical values of the individual salesperson have the potential to influence ethical decisions that characterize ethics in sales. As a result, differences have been shown to exist between an individual’s ethical value system and the people that the salesperson interacts with on a daily basis, including the purchasing agents. There is ample evidence to suggest that moral philosophy affects a person’s ethical belief among a group of retail salespeople. The presence of a link between the various personal moral perceptions of a salesperson presents an explanation for the individual’s personal ethical judgment (Hongsheng). Several organizational factors are capable of altering ethical intentions in a business context because content-specific attitudes influence the decision-making process. This is contrary to popular belief that generalized attitudes have the major influence on decision making. The general agreement tends to be that cognitive moral perception is hard to evaluate and link with the company’s ethical decision making. The extent to which a specific sales event brings about ethical conflict depends on the sales context. Furthermore, within particular individuals, ethical conflict differs across situations and relationships that change with time. This makes it hard for the management fully to comprehend the dimensions of the ethical association between customers and the salesclerk (Ferrell, Johnston, & Ferrell, 2007). It is important to note that more strategic accounts may elicit greater ethical pressure on salespeople.Therefore, the management considers fundamental issues such as trust, information sharing, and reward systems that may be inconsistent with ethical decisions (Brewer, & Ferrell, 2006). Ethical issue intensity is the importance or relevance of the ethical domain in the individual’s perception, company, or work group. Ethical issue is placed with business factors since managers with authority contribute to the recognition of the essence of ethical issues. Business managers communicate the company’s ethical culture, including norms and values for purposes of identifying ethical issues. Managers harbor the discretion of communicating the organizational ethical culture to the customers, employees and other stakeholders. The ethical nature of the business and the ethical sub-components of the sales department is a major factor that is derived from ethical decision-making models as applied in sales research. Within a business context, organizational culture refers to the set of values, norms, and artifacts that are shared by members of a group. However, it is done through the adoption of certain behavior to resolve decisions and problems (Brinkman, 2002). A sales team can develop a subculture or a particular sales ethical climate that may be perceived as a combination of team members’ view of the ethical behaviors and values practiced and supported by all members. Cultures that inculcate deontological ethical behavior have been shown to impact ethical values among salespersons positively.Moreover, sales agents respond favorably when the company’s value systems are validated and internalized by the management. The salesperson’s view of an enabling business climate has also been correlated with a positive impact on an individual’s commitment to organizational commitment, quality, and client orientation. Such a perception can also negatively impact an individual’s perceived ethical conflict with the sales managers. Salespeople who are well aware of the organization’s code of ethics view organizational as a having higher ethical values and portray higher levels of organizational commitment. On the other hand, salespeople who are not aware of the organization’s ethical code are likely to portray lower levels of commitment to the organization. Research studies have shown that managerial culture influence sales manager’s and salesperson’s insolence, as well as teaching assessments of salesmen (Ferrell, Johnston, & Ferrell, 2007). Contemporary research in sales social realms provide further insight on the impact of organizational networks on the sales team ethical decision-making process (Dawson, 1997). In order to form precise understanding of ethical decision making in sales, it is important to understand how ethical values develop together with their resolution. There is a fundamental component in sales activities, and results may be influenced by organizational or individual factors. Organizational ethical environment offers both formal and informal values for resolving numerous ethical issues. In order to understand the component, the management needs to understand the variables and process of ethical decision making. Conflicts with the business’s expectations, shareholder concerns, and employee’s interaction under ambiguous situations assist in triggering ethical issues intensity. In some instances, unethical conduct may form an essential component of required sales activities. The ethical situation of the company is a critical element of organizational culture. While the company’s overall culture inculcates concepts that guide a diverse kind of deeds for associates, the ethical conditions focus explicitly on matters of factual or erroneous (Ferrell). The ethical culture, therefore, serves as the sales agents’ mutually accepted expectations or conscience of conduct. The sales department may have its climate or subculture of values and norms that articulate appropriate behavior. Ethics policies, codes of conduct, as well as sales managers, have an important contribution to the organization’s environment of sales ethics. In fact, the ethical culture influences the determination as to whether or not particular dilemmas are viewed as harboring an ethical intensity level that calls for an appropriate decision. For instance, a company’s sales script has embedded deceptive element it uses to train new salespersons, to an unacceptable and witty potential to perpetuate a culture of deception (Ferrell, 2005). A sales agent establishes networks of clients, links, and colleagues that develop a set of direct and indirect contacts. The emergence of ethical decision make more sales managers and sales people establish better networking that enables the attainment of goals (Ferrell, Johnston, & Ferrell, 2007). Context-specific perceptions cultivated under these social networks, rather than generalized norms such as honesty and trust, will have the greatest influence on decisions. Through socializing, sales agents learn and practice ethical manners that include better judgments of what is right and what wrong actions and activities (Ferrell, Johnston, & Ferrell, 2007). Despite the fact that discrete factors impact judgment making, social interaction alters the options and underlying forces that a salesclerk has in the company (Ferrell, Johnston, & Ferrell, 2007). Webs of interaction with clients, managers, staff members, rivals, and colleagues develop an interplay that influences decisions. Ethical decisions in the business environment are guided by the business culture, including subordinates, external stakeholders, managers, and trusted colleagues. In fact, ethics scholars have a firm believe that more ethical misconduct is orchestrated with aim of benefitting business performance rather than satisfy personal greed (Kelly, 2005). Ethical Issue Strength and Sales Activities A sales action has the potential to precipitate the ethical issue strength (Ferrell, Johnston, & Ferrell, 2007). A sale activity refers to any sales effort utilized in developing a seller-buyer exchange. Overly aggressive sales activity, use of deceptive sales methods, and omitted facts can be viewed as sales activities that precipitate an ethical issue. A plausible activity or result can become paramount to stakeholders and can be perceived as an ethical concern. Sales departments can pinpoint the importance of stakeholders and gather information to make a response to significant people, groups, and communities. The moral standards and norms harbored by the stakeholders relate to the variability of marketing practices and trades problems (Ferrell, Johnston, & Ferrell, 2007). These include; regulatory requirements, client concerns, quality of the product, and efficient information disclosure. It is important to understand that stakeholder norms and values do not necessarily affect the stakeholder’s general welfare (Maignan, & Ferrell, 2004). For instance, clients may be concerned not just about truthful information disclosure but also about issues such as environmental impacts. Thus, stakeholders issues are concerns that the stakeholders may embrace concerning regarding the company’s activities, as well as the resultant residual effect. Then, in the course of decision making it is significance and importance to perceived matter; that is, the intensity of the problem at hand (Ferrell, Johnston, & Ferrell, 2007). The intensity of a given concern is probable to differ from time and among individuals (Jones, 1991). It is influenced by the business values, culture, personal pressures affecting the decision, and the special traits of the situation. For instance, the decision to offer gifts to potential clients could be viewed as a bribe. The overall business culture, individual moral development and the perceptions of colleagues determine the reasons why different individuals view issues with varying intensity. Sales Organization Subculture The ethical culture of the sales team can be accomplished by endeavoring to employ workers whose ideals match with conventional values and organizational norms (Ferrell, Johnston, & Ferrell, 2007). Some organizations even evaluate the values of potential employees during the hiring process and endeavor to select individuals who fit well within the ethical environment rather than selecting individuals whose values and beliefs differ significantly. A poor fit can result in costly ramifications for both employees and the organizations. Beyond the potential for bad conduct, a poor organization-employee ethical fit may result in decreased performance, low job satisfaction, and higher turnover. The ethical component of the sales department through policy, compliance, codes, and supervision may hinder or exacerbate instances of misbehavior. When these conditions offer reward, such as recognition, financial gain, or good feeling of a task well done, the opportunity for unethical behavior may be encouraged or discouraged on the basis of ethical culture. For instance, a business policy that does not stipulate punishment for employees who violate a rule, such as conflict of interest or bribe taking, offers a perfect opportunity for unethical conduct. Informal social links that break the regulations or give acceptance to misbehavior contribute to the growth of an unethical climate. The acts of supporting, approving, and rewarding of misbehavior allow salespeople to involve in unethical conduct deprived of fear of repercussions (Ferrell, Johnston, & Ferrell, 2007). Therefore, compliance systems, organizational policies, and social networks may precipitate the opportunity for unethical behavior (McClaren, 2000). Ethical Decisions and Outcome Prospect often relates to salespeople’s immediate occupation context; that is, where they labor, their colleagues and the environment of the workplace (Fraedrich, Ferrell, & Ferrell, 2013). This context has the potential to affect the ethical decision and assessments associated with outcomes. The job environment includes the motivational elements that sales managers can apply to influence employee behavior. Pay increments and instances of public appreciation serve as positive reinforcement while pay penalties, reprimands, and demotions are the negative reinforcement. For instance, salespersons that are openly recognized and given a substantial bonus for making valuable sales gained through unethical contacts will probably be motivated to apply unethical sales tactics in the future. This may take place even if such behavior is contrary to the individual’s personal value system (Schwepker, & David, 2005). Some approaches to sales ethics aim at improving individual values and character. Research studies have indicated that sales ethical environment may serve the best way to develop and sustain ethical conduct in sales. Sales manager often lack the assets and period to reprogram salespeople’s ethical thinking, even in situations where it is possible (Ferrell, Johnston, & Ferrell, 2007). In fact, approximately 10% of workers are unethical egoists who will grab the advantage if the likelihood of being caught is low and there is an opportunity to engage in misconduct. The context applied at this point can benefit in connecting discrete values and reasoning ability in decision-making with structural processes (Ferrell, Johnston, & Ferrell, 2007). The establishment of critical thinking in a social environment is a paramount part of ethical decision making. Although the development of personal traits is crucial, it must be related to capability in comprehending attitudes and risks a complicated organizational context (Ferrell, Johnston, & Ferrell, 2007). It is not as easy as telling salespersons to “do the right thing.” Organization sales ethics calls for value-based leadership from senior management. This should involve purposeful activities that include implementation of standards of appropriate behavior, and persistent effort to improve the company’s ethical performance. Even as personal values remain critical in ethical decision making, they are only one of the components that dictate actions, decisions, and policies of the business organization. The bulk of ethical conduct relates to the company’s backgrounds and ideals, and not necessarily to the individuals who develop and implement decisions within the company. The company’s ability to plan and implement standards is dependent in part on structuring resources and actions to achieve ethical goals in an efficient and effective manner. Discovering that people have different value orientations and moral philosophies in making ethical decisions is a descriptive discovery process that offers managers a background for implementing ethics sales training within the company. Best practices for enhancing ethical behavior in sales are anchored on codes, culture, governance, compliance, and risk management as an organizational process. Since salespersons have varying ethical beliefs and peculiar traits, there is a necessity to improve the moral climate that offers shared norms and values (Ferrell, Johnston, & Ferrell, 2007). Furthermore, there is a need to develop an ethical environment that provides a compliance program that acknowledges how several personal perspectives interact. The chance to describe, predict, and govern ethical decisions, on the basis of positive models of the ethical decision-making offer perfect research topics with managerial relevance. It has been proposed that sales managers need to spend substantial time in enhancing salespersons’ cognitive moral; development, as well as the interpersonal skills (Sean, & Barnett, 2003). Having a greater knowledge about the development of business-wide shared values and norms is critical to the development of ethical business sales subculture. Linking standard codes and compliance to formal cultural behavior is important inconsistent decision-making about crucial ethical matters. The development of organizational governance and structure to anchor and enforce compliance and codes is very significant to the cultivation of ethical conduct. Choices to advance codes, values, and structure that are distinctive to the sales department subgroup is a crucial endeavor in future research studies (Ferrell, Johnston, & Ferrell, 2007). The sales department requires a system of discovery with monitoring that utilizes formal and informal feedback channels. This is obligatory to take quick actions aimed at restoring, stabilizing and resuming sales undertakings after a morals event (Ferrell, Johnston, & Ferrell, 2007). In many cases, ethical crises develop due to complacency in reporting and responding to several ethics issues. Therefore, it is important to conduct further assessment in determining how reporting of ethical issues should take place in a sales environment. Such a study can be used in restructuring sales ethic programs (Wotruba, 2001). The position of the salespeople as boundary spanners create a responsibility that transcends most organizational members in the development of formal and informal interpersonal relationships. Salespersons develop social links with a complicated network of a wide range of stakeholders from within and outside the organization (Ferrell, Johnston, & Ferrell, 2007). Internally, salespeople interact with employees from all department from the top managers to the clerk in the organization (Ferrell, Johnston, & Ferrell, 2007). Externally, these relationships include prospect networks (such as contacts in the prospect’s organization), client networks (such as contacts from a current customer), and marketplace networks. In summary, it is plausible that norms and values evolve and dictate how ethical decisions are made in the webs of interactions within the sales environment. Thus, it is important to develop a research agenda that places greater emphasis on these interpersonal relationships and the traits of the actors that comprise the organizational networks. Research studies confirm that the sales department subculture or ethical environment influences ethical decision making. Perceptions of the company’s ethical culture make context-specific insolence that are crucial in enduring values. The perceived ethical context in the sales department ethical culture has the potential to influence intentions and judgments (Ferrell, Johnston, & Ferrell, 2007). The role of the sales manager’s ethical values and behavior offers direction to decisions that relate to hiring, training, and attitudes likely to positively impact the ethical behavior of the salespeople. The discovery of specific attitudes and beliefs that can improve the salespeople’s perception of the ethical dimension of the sales manager and the sales ethical environment is important. This helps in greater understanding of the development of the company’s overall ethical climate. The fundamental relationship between the organization’s ethical culture, attitudes of the sales manager, and the specific sales activities are excellent areas where further research can be conducted to understand sales ethics better. References Brewer, L., Robert C., & Ferrell, C., (2006). Managing Risks for Corporate Integrity: How to Survive An Ethical Misconduct Disaster. Mason, OH: Thomson/Texere. Brinkman, J., (2002). Business and Marketing Ethics as Professional Ethics: Concepts, Approaches and Typologies. Journal of Business Ethics, 41; 159–177. Dawson, M., (1997). Ethical Differences Between Men and Women in the Sales Profession. Journal of Business Ethics, 16; 1143–1153. Ferrell, C., (2005). A Framework for Understanding Organizational Ethics. Armonk, NY: M.E. Sharpe Ferrell, L. (n.d.). Marketing Ethics. 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