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The relationship between salespersons’ ethical philosophy and their ethical decision-making process

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Abstract

The aim of the present research is studying the relationship between the salespersons’ ethical philosophy and their ethical decision-making process and seeks to answer two fundamental questions: first, what is the ethical philosophy of salespersons? And second, how does the salespersons’ ethical philosophy affect their ethical decision-making process? Statistical population of this research is salespersons who have passed the sales training course at the Department of Commerce Research Centre. One hundred thirty-seven questionnaires of total 300 accessible populations were analyzed through path analysis method. The findings indicate that most salespersons are idealists. Although this idealism affects the ethical judgment directly, but the effect of relativism on ethical intention is more considerable.

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Authors

Corresponding author

Correspondence to Sara Ghavami.

Additional information

The authors herewith acknowledge constructive criticisms and comments of two unknown reviewers of this article whose professional advices have helped to greatly improve the quality of this paper.

Appendices

Appendix A

Ethical philosophy

Idealism (five-choice scale)

  1. 1.

    Risks to others should never be tolerated, irrespective of how small the risks might be.

  2. 2.

    The existence of potential harm to others is always wrong, irrespective of the benefits to be gained.

  3. 3.

    One should not perform an action which might in any way threaten the dignity and welfare of another individual.

  4. 4.

    If an action could harm an innocent other, then it should not be done.

  5. 5.

    Deciding whether or not to perform an act by balancing the positive consequences of the act against the negative consequences of the act is immoral.

  6. 6.

    The dignity and welfare of people should be the most important concern in any society.

  7. 7.

    Moral actions are those, which closely match ideals of the most “perfect” action.

Relativism (five-choice scale)

  1. 1.

    There are no ethical principles that are so important that they should be a part of any code of ethics.

  2. 2.

    What is ethical varies from one society to another

  3. 3.

    Questions of what is ethical for everyone can never be resolved since what is moral or immoral is up to the individual.

  4. 4.

    Different types of moralities cannot be compared as to rightness

  5. 5.

    Moral standards are simply personal rules which indicate how a person should behave, and are not to be applied in making judgments of others.

  6. 6.

    Ethical considerations in interpersonal relations are so complex that individuals should be allowed to formulate their own individual codes.

  7. 7.

    Rigidly codifying an ethical position that prevents certain types of actions could stand in the way of better human relations and adjustments.

  8. 8.

    No rule concerning lying can be formulated; whether a lie is permissible or not permissible totally depends upon the situation.

Appendix B

Marketing ethics scenarios

Scenario 1

An automobile salesman is told by a customer that a serious engine problem exists with a trade-in. However, because of his desire to make the sale, he does not inform the used car appraiser at the dealership, and the problem is not identified.

  • Action: The salesman closes the deal that includes the trade-in.

Scenario 2

A young man, recently hired as a salesman for a local retail store, has been working very hard to favorably impress his boss with his selling ability. At times, this young man, anxious for an order, has been a little over-eager. To get the order, he exaggerates the value of the item or withholds relevant information concerning the product he is trying to sell. No fraud or deceit is intended by his actions, he is simply over-eager.

  • Action: His boss, the owner of the retail store, is aware of this salesman’s actions, but he has done nothing to stop such practice.

Scenario 3

A person bought a new car from a franchised automobile dealership in the local area. Eight months after the car was purchased, he began having problems with the transmission. He took the car back to the dealer, and some minor adjustments were made. During the next few months he continually had a similar problem with the transmission slipping. Each time the dealer made only minor adjustments on the car. Again, during the 13th month after the car had been bought, the man returned to the dealer because the transmission still was not functioning properly. At this time, the transmission was completely overhauled.

  • Action: Since the warranty was for only 1 year (12 months from the date of purchase), the dealer charged the full price for parts and labor.

Scenario 4

Sets of a well-known brand of “good” china dinnerware are advertised on sale at a considerable discount by a local retailer. Several patterns of a typical 45-piece service for eight are listed. The customer may also buy any “odd” piece which is available in stock (for instance, a butter dish, a gravy bowl, etc.). The advertisement does not indicate, however, that these patterns have been discontinued by the manufacturer.

  • Action: The retailer offers this information only if the customer directly asks if the merchandise is discontinued

Appendix C

Ethical decision-making process and moral intensity

  • Ethical perception (three-choice scale);

    This story contains an ethical issue.

  • Ethical judgment (three-choice scale);

    I consider the action in this story as an ethical behavior.

  • Ethical Intention (three-choice scale);

    I would act as the same manner as did in this story.

  • Moral Intensity (five-choice scale);

    How “unethical” do you consider the action in above story?

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Amirshahi, M., Shirazi, M. & Ghavami, S. The relationship between salespersons’ ethical philosophy and their ethical decision-making process. Asian J Bus Ethics 3, 11–33 (2014). https://doi.org/10.1007/s13520-013-0028-x

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  • DOI: https://doi.org/10.1007/s13520-013-0028-x

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