26. CHAPTER 26

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CHAPTER 26:

CHAPTER 26 Ethical & Social Issues in Sales & Distribution Management

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Prof. Sunitha Ratnakaram, Associate Professor, VVSB MBA, M. Phil, MFM, M. SC. (Psychology), UGC – JRF , (Ph. D)

In this chapter we will discuss::

In this chapter we will discuss: Ethics in business What is corporate social responsibility? Evolution of corporate social responsibility Levels of social responsibility What influences ethical behavior? Management’s ethical responsibilities

Introduction :

Introduction Nestle, McDonalds, Microsoft etc. are accused of unethical practices Ethical concerns should be the responsibility or the headquarters of the organization

Ethics in business:

Ethics in business Perception about sales people in society Ethical behavior and CSR have become the latest mantra Many companies are showing interest in social causes these days This is one way of “giving back”

What is corporate social responsibility?:

What is corporate social responsibility? It refers to businesses decisions & actions taken for reasons at least partially beyond the firm’s direct economic or technical interest Create a positive opinion about company in customer’s minds Better communication with customers Cultivate higher ethical expectations The company must measure public expectations

Evolution of corporate social responsibility:

Evolution of corporate social responsibility Began in early 60’s Various governments started framing laws Voluntary corporate codes were also developed (ILO, OECD, Un global compact) Indian govt. amended companies act in 1999 Various companies initiated philanthropic activities Various acts were passed by the GOI

Levels of social responsibility:

Levels of social responsibility Obeying the law Meeting public expectations Anticipating new social demands Leading the way

What influences ethical behavior?:

What influences ethical behavior? Individual’s Role One passes through six irreversible stages of moral development, which can be grouped into three levels Organization’s role

Individual’s Role:

Individual’s Role First level Stage 1 has an obedience and punishment orientation Stage 2 is concerned with instrumental purpose and exchange Second level Importance to interpersonal accord, conformity, and mutual expectations Importance to social accord & system maintenance Third level Governed by social contracts and individual rights He is governed by universal ethical principles

Organization’s role:

Organization’s role It is primarily responsible for ethical or unethical behavior of the employee Examples: Enron Shell

Management’s ethical responsibilities:

Management’s ethical responsibilities Ethical issues facing a sales manager Ethical issues facing a salesperson

Ethical issues facing a sales manager:

Ethical issues facing a sales manager Relationship with subordinates Relationship with the company Relationship with customers Relationship with competitors Relationship with dealers & suppliers

Ethical issues facing a salesperson:

Ethical issues facing a salesperson Ethical issues with regard to the top management Ethical issues pertaining to other sales people Ethical issues in dealing with customers

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