One of the rewarding aspects of college teaching is learning from the dialogues with students. Many of the students in my undergraduate sales and marketing classes, and all at the graduate level, are working while attending school. Therefore, issues discussed are likely to based on real life experiences as much as textbook examples.
Ethics is at the center of many debates, especially what is ethical behavior and who or what is responsible for setting standards. One must remember that it is not companies, institutions, and political organizations that are unethical; individual people are unethical. The ethics of an organization merely reflect the combined value systems of its members.
Business ethics is just one aspect of societal ethics. Traditional values seem to have given away to a widespread sense of “anything goes.” Many Americans want immediate gratification and will act in whatever manner seems to promise it.
After a decade of insider trading, junk bonds and corrupt entrepreneurs, some say that “business ethics” is an oxymoron, a contradiction of terms. Questionable business practices are often evaluated in terms of legality instead of truth and justice. This confusion about what used to be common sense and quite obvious has led many organizations to produce formal policies regarding aspects of ethics.
In its simplest terms, ethical behavior is doing what is right, moral and fair. There are three basic guidelines in establishing a code of ethics. The first is universal nature, or more commonly understood as the Golden Rule. We want others to play by the same rules by which we would play in a similar situation. This concept establishes trust between people and makes life predictable. Conflicts in this area involve turning the positive “do unto others” into a negative “everybody does it so it’s OK” attitude.
The second guideline, telling the truth, is based on philosophical and logical principles. It has evolved from telling “the truth, the whole truth and nothing but the truth” into “how much of the truth do we have to tell.”
Responsibility for one’s actions is perhaps the one guideline most challenged in our litigious society. Some company policies advise: when in doubt of what to do, consider the consequences of getting caught. Unfortunately, our legal system protects some unethical practices.
The growing concern about ethics is no longer restricted to business schools. After formally establishing a code of ethics, many companies provide ethics training for old and new employees. Some companies adhere strictly to the code as part of corporate culture, with an ethics committee to rule on ethical dilemmas.
The sales profession is perhaps associated with questions about ethics more than any other profession. This stems from the high-pressure selling techniques used by the old-style peddler. Today, the consultative salesperson is motivated by customer satisfaction, repeat business and referrals – all definite deterrents to unethical tactics.
Although individual salespeople each have a basic value system and may know what is right and wrong, they encounter many influences and pressures on the job. Knowing in advance what can be expected and having a feel for how to balance and integrate values into a personal code of ethics can make handling ethical decisions easier.
One of the most powerful influences on salespeople is profits – their own and those of the company. Contrary to popular opinion, the first goal of business is survival, followed by maximization of profits. Survival will surely be compromised if salespeople take casual views of the legal and ethical implications of their behavior.
The company’s short-term profits and the salesperson’s commissions may be maximized by unethical behavior, but the company’s very existence could be threatened if it were hit with huge fines or an exposé in the media. Although short-term profits are important for both the company and its salespeople, the long-term success and good name of the company must always be the first priority.
Needless to say, salespeople generally reflect both the words and deeds of company leadership. Many salespeople are pressured to compromise their ethics by management’s desire to obtain and keep orders. Changing jobs is not as bad as it seems. There is the classic personal guilt by association. Also, the employer’s long-term future is at risk, so it may be wise to get out while the getting is good.
When faced with an ethical conflict, I suggest that you ask yourself five questions:
• Is it legal? Look at the law and other standards.
• Is it fair to all concerned? In other words, what do you owe to your company, your customer, and yourself in this situation?
• Would I want someone else to act this way toward me?
• How would I explain my actions to someone else? Would you like your family or friends to know?
• How will it make me feel about myself? The maintenance and enhancement of a positive self-image are crucial.
These questions first require careful evaluation regarding existing standards and personal liability. Next, the questions are designed to activate your sense of fairness and rationality. Last, realize that personal feelings are very important because negative feelings adversely affect positive performance both now and later. Use the ethics checklist. Don’t charge ahead and then rationalize your behavior after the fact.
After this analysis, consider the various alternative response actions. These include negotiating for change, blowing the whistle, ignoring the situation, and looking for another job. Then, evaluate the potential short-term and long-term effects.
The ultimate answer to ethics lies in responsibility to self. In the final analysis, the still, small voice of conscience is the arbiter of conflicting ethical claims. It provides the ability to say that you have made the best decision under the circumstances and take full responsibility for it. If you have personal integrity, then you cannot be dishonest with others – whether it be your company, competitors, or customers. There is no pillow as soft as a clear conscience.
How well do you sleep at night?