Pauline recently started selling office copiers. She is a single mother supporting a chronically sick child and receives little financial support from her ex-husband, so she depends on her sales commissions to help pay the bills. Her most promising prospect is a large company with 10,000 employees and regional offices scattered throughout the midwest. The company wants to replace its worn-out copiers with brand-new ones, and is accepting bids from Pauline and three of her competitors.

On one sales call to the company’s purchasing manager, the manager offers Pauline the order in exchange for five percent of her commission on the $200,000 sale. Pauline stands to collect a 10 percent commission, or $20,000.

Pauline knows the kickback to the manager is illegal, but doesn’t want to lose the sale. What’s worse, her research reveals that his company’s founder, a deeply religious man, required all workers to sign a code of ethics as a condition of employment. What should Pauline do?

– Tell the manager she didn’t hear his offer and continue her sales call as planned.
– Get flustered and confused, and not know how to respond.
– Consult a fellow salesperson at a different company for advice.
– Meet with her manager for direction.

Ethical conflicts can vary according to the industry and type of selling. While some salespeople rarely face them, others may deal with them regularly. Even salespeople who don’t expect to face an ethical dilemma in the near future should have a plan ready to handle one if it occurs. A good ethical plan should (1) help you sort out the ethical issues facing you, (2) help you weigh all your options and (3) help you make a decision that protects your ethical standards while protecting your sale. It only takes one unethical choice to start a pattern of dishonesty, so be prepared to face any ethical situation with a plan of action.

For help in sorting out the issues involved in ethical conflicts, Selling Power consulted Michael Daigneault, president of the Ethics Resource Center in Washington, D.C., and Michael Hoffman, director of Bentley College’s Center for Business Ethics in Waltham, Massachusetts.

Hoffman advises Pauline to calmly but clearly tell Joe that she wants to get the sale fairly and honestly. If Joe resists her attempts to sell honestly, Hoffman recommends that Pauline take the matter to her manager and suggest that he call Joe’s supervisor to report the incident.

Should Pauline’s manager refuse to report Joe or ask Pauline why she didn’t just accept his offer, Hoffman maintains that it’s Pauline’s responsibility to report the incident to a higher authority and see to it that Joe’s supervisor is informed of his unethical conduct. Hoffman also emphasizes the importance of having an ethics office and a company code of ethics to protect both the company and the salesperson.

According to Daigneault, Pauline should “raise the issue with her supervisor. At that point, they can decide whether to report the purchasing manager’s conduct. Since it is possible that similar offers were made to the other competitors, reporting the purchasing manager’s conduct to his company may help to reestablish fairness in the bidding process.”

Ethical conflicts like Pauline’s leave the salesperson with four primary options: engaging in unethical behavior, ignoring the behavior, confronting the perpetrator or reporting the behavior. Deciding which option will help you preserve your integrity and your sale requires you to weigh the pros and cons of all your options. To help you resolve the conflict to everyone’s satisfaction, handle any ethics conflict with care, and let logic, rather than emotion, be your guide.

Option 1 – Engaging in unethical behavior. When dishonest practices guarantee you a big sale and a generous commission, even scrupulously honest salespeople might be tempted to act against their own best interests. Before you do, consider all your options and the consequences of each. Try making a list of what you stand to gain and what you stand to lose if you’re caught, or even if you aren’t. Consider long-term benefits and drawbacks as well as immediate gains and losses, including possible damage to your reputation or that of your company.

Option 2 – Ignoring the behavior. Ignoring selling misconduct may be the easiest option, but isn’t always the best one. Many salespeople want to preserve friendships with fellow salespeople or profitable customers, so they make an emotional decision to overlook the misconduct instead of assessing the situation logically and rationally. Ask yourself questions to help you assess your circumstances: Do your loyalties lie with your colleagues? Your company? Your family? Before you make any snap decisions, make sure your priorities make sense. If anyone exposes the dishonest actions, some may consider you an accomplice or facilitator because you didn’t try to stop it.

Option 3 – Confronting the perpetrator. For many ethical dilemmas, a tactful confrontation is the ideal solution. Confrontation often gives you the chance to stop unethical behavior while preserving or even enhancing your relationship with the guilty party. If you decide to confront, assure those you address that you want them to stop what they’re doing for their own good, as well as for their company’s, colleagues’ and customers’ well being. Carefully consider the place and time of your confrontation. To help keep you on good terms with those you confront, address them without self-righteousness and without belittling them.

Option 4 – Reporting the behavior. Regardless of one’s personal feelings toward a certain person, company or behavior, some ethical situations leave you little choice but to report them. If your job or reputation are at stake or if your company stands to take a significant loss, for example, you should strongly consider sharing what you know with your company ethics office or supervisor. Reporting the behavior helps keep your name clear of blame in case there’s any question as to your involvement.

For more information, contact the Ethics Resource Center at 1120 G St. NW, Ste. 200, Washington, DC 20005 or call 202/737-2258, or the Center For Business Ethics at Bentley College, 175 Forest St., Waltham, MA 02154-4705 or call 617/891-2981.

The Decline Of Ethical Behavior

According to a report in the December 1995 issue of Chief Executive magazine, ethical behavior at American companies is on the decline. The article reports that in a recent survey of 4,035 workers conducted by the Ethics Resource Center, 56 percent reported lying to supervisors as the major misconduct at their companies. Additional research showed that 55 percent of middle managers don’t believe top executives. Respondents also complained that they are pressured to support incorrect viewpoints, sign false statements and overlook the wrongdoing of supervisors.