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CHAPTER 2
SOCIAL, ETHICAL, AND LEGAL RESPONSIBILITIES OF SALES PERSONNEL
LEARNING OBJECTIVES
This chapter is one of the most important in this textbook. Understanding social, ethical and legal issues helps build a solid foundation on which to base future decisions and to manage sales personnel. After studying this chapter, you should be able to explain the following: Managements social responsibilities.
Stakeholder
Any group within or outside the organization that has a stake in the organizations performance.
Ce u r s s t o m
S lr uis pe p
Cn ou m m i t y
g o Co a n rir n z a E y Ot me p s r ii le o e s d t
Gn oe v t e r n m
Mr ag ns a e
Or w n e s
CCC GOMES
This acronym is an effective way to remember an organizations stakeholders: Customers, Community, Creditors, Government, Owners, Managers, Employees, and Suppliers.
Copyright 2001 by Harcourt, Inc. All rights reserved.
DISCRETIONARY RESPONSIBILITIES
Maintaining confidence and trust. Following the rules. Conducting yourself in the proper manner. Treating others fairly. Demonstrating loyalty to company and associates. Carrying your share of the work and responsibility with 100% effort.
Copyright 2001 by Harcourt, Inc. All rights reserved.
EMPLOYEE RIGHTS
Rights desired by employees regarding the security of their jobs and the treatment administered by their employer while on the job, irrespective of whether such rights are currently protected by law or collective bargaining agreements of labor unions.
EMPLOYEE RIGHTS
Termination at will
Privacy Free from Sexual Harassment
Cooperative Acceptance
The right of employees to be treated fairly and with respect regardless of race, sex, national origin, physical disability, age, or religion while on the job as well as when applying and regarding a job.
Moonlighting
Cheating
PRICE DISCRIMINATION
Price reductions Promotional allowances and support
TIE-IN SALES
To purchase a particular line of merchandise, a buyer may be required to buy other unwanted products. Prohibited under the Clayton Act.
EXCLUSIVE DEALERSHIP
Requires a wholesaler or retailer to purchase from one manufacturer. Prohibited under the Clayton Act.
RECIPROCITY
Buying a product from someone if the person or organization agrees to buy from you. Federal Trade Commission and the U.S. Department of Justice will consider such a trade agreement illegal.
SALES RESTRICTIONS
Cooling-off Laws provide for a cooling-off period in which the buyer may cancel the contract, return any merchandise, and obtain a full refund. Covers sales of $25 or more made door to door. Green River Ordinances require persons selling directly to consumers to be licensed by the city in which they are doing business if they are not residents. A bond may also be required.
Copyright 2001 by Harcourt, Inc. All rights reserved.
Most managers feel they and their employers should be more ethical.
Managers are more ethical with their friends than with people they do not know.
MANAGERS VIEWS
continued
Even though they want to be more ethical, some managers lower their ethical standards in order to meet job goals. Managers are aware of unethical practices in their industry and company ranging from price discrimination to hiring discrimination. Business ethics can be influenced by an employees supervisor and by the company environment.
Ethical Structures
Ethical Committee
A group of executives appointed to oversee company ethics.
Ethical Ombudsperson
An official given the responsibility of corporate conscience who hears and investigates ethical complaints and informs top management of potential ethical issues.