Assignment task:
1: Select a sales situation involving ethical decision making
Reflect on a past sales scenario, either one you've personally experienced or a well-known example from the industry, where the sales representative had to make a significant ethical decision.
An important ethical decision in sales typically refers to a situation where a sales representative is faced with a choice that may challenge their moral or ethical standards, usually involving a trade-off between doing what is right and achieving their sales goals.
Here are some instances of ethical dilemmas in sales:
Misrepresenting Products or Services: The sales representative might be tempted to exaggerate product capabilities or downplay potential issues to close a deal. The ethical decision here is whether to tell the complete truth about the product or service.
Unfair Sales Tactics: Pressuring customers into making purchases, resorting to 'hard sell' tactics, or rushing them into decisions are common unethical practices in sales. The ethical decision involves choosing to treat the customer fairly and respectfully.
Conflict of Interest: There may be situations where a sales representative's personal interest (like gaining a hefty commission) conflicts with what's best for the customer. The ethical decision is to prioritize the customer's interest.
Handling Sensitive Information: Sales representatives often have access to confidential customer information. The ethical decision here is to protect and respect this information, and not use it for personal gain or advantage.
Dealing with Competition: It may be tempting for a sales representative to disparage competitors or their products to make their own offerings look more appealing. The ethical decision is to focus on highlighting their own product's strengths without resorting to false or negative statements about competitors.
Here are a few examples of real-life major ethical decisions in sales (which you're welcome to use if you can't find another situation you prefer):
Wells Fargo's Fake Accounts Scandal (2016): Sales staff at Wells Fargo were under such pressure to meet sales targets that they created millions of unauthorized bank and credit card accounts without customers knowing. The ethical decision here would have been to refuse to engage in fraudulent practices, despite the pressure to meet targets.
Volkswagen's Emissions Scandal (2015): Volkswagen installed software in their diesel cars to cheat on emissions tests and sold these cars as environmentally friendly. The ethical decision for the sales teams would have been to disclose the actual emissions levels, despite the potential impact on sales.
Purdue Pharma Opioid Scandal (2007- ongoing): Purdue Pharma aggressively marketed OxyContin, a potent opioid painkiller, while downplaying its high addictive potential. This resulted in a large-scale public health crisis, with many individuals becoming addicted to the drug. The ethical decision would have been to communicate the risks transparently, even if it affected sales.
2: Examine the Ethical Dilemma
For the chosen scenario, answer the following questions:,
What was the ethical issue in the scenario?
What were the factors influencing the ethical conduct of the sales representative?
What decision did the sales representative make? How did their decision align with or differ from the guidelines for developing a personal code of ethics?
How did this decision impact the building of a partnering relationship in selling?
If you were in the sales representative's position, what would you have done differently and why?
If you're having difficulty articulating your thoughts on fostering an ethical culture within sales teams, Harvard Business Review's Fostering an Ethical Culture on Your Sales TeamLinks to an external site. provides some excellent insights.