Sales Organization Ethics Discussion

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A direct sales organization has built a reputation for selling quality merchandise at moderate to high prices and sells it through independent sales contractors. These independent contractors are expected to present the line to potential customers, take orders, and see that the merchandise is delivered. The success of the organization is highly dependent upon its reputation.

One independent contractor has purchased another less expensive line of merchandise and is offering it along with that of the organization. Potential customers are not told that the goods are different from the primary line, and the independent contractor is making a substantial amount of money from the sale of additional merchandise. Assume that you are the regional sales manager and answer the following questions:

  • Based on the information given, what are the major ethical problems facing the sales organization?
  • What types of sales leadership styles would you suggest in handling this issue? Why?
  • What changes in sales training would you suggest to prevent these types of unethical behaviors? Why?
  • What are your salesforce development strategies as it pertains to communication, coaching, influence, and promoting ethical behavior within the organization?
 
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