Business Ethics

Essay by Tacrown May 2009

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Sale is important in terms of the organisation as well as the salesperson as an individual. In organisation point of view, they have to maximise their profit to recover their investment as soon as possible. In salesperson point of view, they need to retain their employment and they need to survive in this big competition with co-workers. "Sales Ethics" arise and become questionable. There is the conflict between to get the sale by lie or misleading consumer and, be honest but lose the sale. In the rest of the discussion, I would like to discuss on why salesperson/company behave in an unethical way. On the other hand, the issues where company and salesperson need to be concerned and the risks also will be discussed to find out sales ethics is an oxymoron or not.

Social learningAccording to social learning theory claimed by Bandura (1986), employees learn to behave through vicarious learning.

Employees will tend to have the similar manner if other employees behave in a certain manner. It is because they are learning through observing and imitating others in the work environment. Therefore, if the employees in an organisation are likely to behave in an unethical way, or if the sales manager does not have the appropriate method in control the unethical manner of their employees, employees will believe they have the right to dishonest or hiding the truth to make the sale.

Income and CompetitionSalespeople are having high degree of stress in facing their sales performance. Rewards such as commission or price will be used by sales managers as an incentive to encourage salespeople to achieve higher sales level. For example, in telecommunication or insurance company, sales personnel have a certain quota to attain in every month. To make the sales happen and increase themselves salary will become more...