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    Salespersons and Unethical Behavior

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    Sometimes salespersons at Studio Production say or promise something to the customer that they unintentionally are unable to deliver. By doing so, a customer can perceive this as being unethical. The owners of Studio Production are concerned with these behaviors and the perception of their company. They have asked you to prepare a short presentation to share with everyone at Studio Productions on ethics. It should including the following:

    Identify and explain the three main types of unethical behavior and provide an example of each.

    Define and provide further explanation of the five variables that affect a salesperson's ability to be viewed as trustworthy by buyers. Explain which variable you feel is most important and why.

    Explain the importance of trust in building ethically sound business relationships. Discuss why sales professionals are often stereotyped as being unethical and non-trustworthy and the importance of breaking this stereotype.

    At Studio Productions, some of the work is outsourced and marked up to client, giving a small profit to the company. What are the ethical concerns this brings up and how will you, as a salesperson, handle it?

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    Identify and explain the three main types of unethical behavior and provide an example of each.

    Deceptive Practices: Deceptive practices are just what they sound like. They take place when someone in the position of a seller acts unfairly to or deceives a buyer.


    1) False advertising and other misrepresentations - advertising and statements which have the tendency to mislead are illegal. These include:

    a) actual false statement in advertisements about a products quality, ingredients, or effectiveness
    b) fake testimonials and endorsements
    c) pictures of the wrong merchandise in ads trying to sell some other item that imply the picture is of the item being sold
    d) faked pictures of the product performing in a way that it cannot actually perform

    (source: http://www.neighborhoodlaw.org/page/56503&cat_id=69)

    Illegal Activities:Any activity which violates local, state, federal or international law.


    (a) production and distribution of illegal goods, such as banned drugs or pornographic material,
    (b) production of illegal services, such as prostitution (in countries where this is illegal),
    (c) production activities which are usually legal but which become illegal when carried out by unauthorized producers, such as unlicensed medical practices, unlicensed gambling activities, unlicensed production of alcohol and poaching, e.g. illegal fishing, hunting, tree cutting

    (source: http://unstats.un.org/unsd/nationalaccount/AEG/papers/m4illegalActivities.pdf.)

    Non Customer Oriented Behavior: This includes being pushy or hard selling, creating high pressure situations for the customers or fast talking. One classic and famous example will be the hard or pushy selling done by stockbrokers on Wall Street, who are considered to be the most aggressive salesperson in the world and can turn even a waste into a gold by their pushy selling. Films such as Boiler room have effectively portrays such pushy selling in movies and have thus created an aggressive image of such stockbrokers on wall street.

    Define and provide further explanation of the five variables ...

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