Sales and Standards
What makes a successful salesperson? The stereotype would say that succeeding in sales means making deals—and that ethics has no role to play. Done well, however, sales isn’t all about money. Integrity matters.
Unethical choices may help us make a fast buck once in a while, but they won’t contribute to our long-term success in sales. In fact, ignoring ethics can hurt salespeople in the long run. Solid, ethical choices lay the foundation for an effective sales process.
In this lesson, you’ll learn why ethics matter in sales. You’ll also explore challenging scenarios you might encounter and learn how you can actively maintain your integrity as a salesperson.
Watch the video to learn more about why ethics matters in sales.
Are the Stereotypes True?
In popular culture, salespeople are sometimes stereotyped as shifty grifters willing to do anything to make money.
But those with experience in the field know that profit alone doesn’t define a salesperson’s success. A genuinely successful salesperson develops positive business relationships, earning the respect of their contacts and colleagues.
In reality, the best salespeople prioritise their integrity. Their focus on building trust helps them connect with customers—and earns them more business.
Why Ethical Decisions Are Essential
Consider a salesperson who tells a customer that a product is available for purchase while knowing that a manufacturing delay means no products are shipping right now. The customer will be happy in the short term, but when their product doesn’t show up, the salesperson will either have to come clean—or continue lying. Both options are likely to damage their reputation and the reputation of their company.
In contrast, acting with integrity is conducive to good business. A salesperson should be upfront about availability and can promise to keep customers updated whenever the product becomes available. This proves the salesperson’s trustworthiness and honours the customer’s timeline, establishing a positive working relationship.
Here are three specific ways ethical decision-making can benefit your work in sales:
- Develop better customer relationships. Earning trust is essential to closing sales and creating positive, long-term business relationships.
- Promote brand and individual reputation. Being known for your integrity, especially when faced with difficult decisions, is a great way to stand out in sales.
- Improve retention and referrals. Increased respect between you and your prospective buyers can lead to better customer retention and increased referrals.
Ethical Pitfalls
Given the benefits, why don’t salespeople always make ethical decisions?
The pressures of limited time and high quotas can increase the temptation to “cut corners.” Some managers also focus on profit rather than relationship-building, forcing their team members to sacrifice their integrity.
Still, while external factors influence our decision-making, the final choice remains with us. That’s why practicing how to respond can help us better deal with ethical challenges.
What Would You Do?
Click through the stories below to explore some dilemmas a salesperson might face. What would you do in these situations?
Friendship Foibles
William, an experienced software salesperson, is surprised to see that his newest prospect is Howard—an old friend. They meet for coffee, and Howard is enthusiastic about the software. However, as they start talking specifics, Howard says, “Hey, you’re going to get me the friends and family discount, right?”
William feels awkward. He tells Howard, “We do have discounts, but they’re for nonprofits or schools. Your business doesn’t exactly qualify.”
“Come on!” Howard retorts. “Remember when I lent you money to help replace your car after that crash? I can’t believe you wouldn’t do me a simple favour that won’t cost you a dime.”
William is torn. He knows Howard’s business doesn’t qualify for a discount. But he values their friendship and knows that as an experienced salesperson, his decision to lower the price probably wouldn’t be questioned. What should he do?
Trash Talking
Shanu is a seasoned member of a sales team in an organisation with many competitors. She’s speaking to a prospective buyer when they bring up a recent customer service survey that ranked her organisation’s customer service as poorer than others in the crowded field.
Because she socialises with colleagues on the customer service team, Shanu knows that they are overworked and understaffed—so the survey is probably accurate. But if she closes this major sale, the revenue could help support more hiring. What should Shanu say to her prospective customer?
Discrimination Dilemma
Felix was recently promoted to manager. During their first meeting together, the CEO tells Felix that the male members of his team “just have a stronger work ethic” than the women on the team do. He then advises Felix to assign the biggest accounts exclusively to men.
Felix wants to make a good impression as he starts his new role, but he knows that this request is not just unethical—it’s illegal. What should Felix do next?
How Would You React?
Even salespeople with good intentions can be tempted to make unethical decisions. By thinking about how you might react to ethical challenges, however, you are practising for real-life situations that can crop up for you in the workplace.
"A salesperson’s ethics and values contribute more to sales success than do techniques or strategies."
– Ron Willingham
Staying Ethical
When making the ethical choice feels overwhelming, stay focused on maintaining your integrity. By being vigilant about staying ethical, you’ll make better decisions and earn the trust of your contacts and your team members.
Here are some ways to support ethical decision-making:
- Prioritise relationships over money. Let interpersonal connections, not profit motives, lead your choices.
- Research your team’s code of ethics. If you know what your organisation values and how you should handle ethical dilemmas, you’ll be prepared when challenges happen.
- Honour your own reputation. What do you want to be known for? Remember that the consequences of your actions will follow you, even if you leave your current position.
- Contribute to an ethical company culture. Whether you’re a seasoned manager or new to the sales team, your actions impact how decisions are made in your organization. Encourage your team members to make good decisions and lead by example.
Your ability to make ethical choices will grow as you meet new people and encounter new challenges. Remember—practice makes perfect.
Summary
Salespeople who make ethical decisions earn their customers’ trust, leading to stronger relationships and improved long-term results.
Outside factors like stress and focus on profit may tempt a salesperson to act unethically. So it’s important to be actively aware of the decisions you’re making. Four steps you can take to practice better ethical decision-making are:
Prioritising relationships over money
Researching your team’s code of ethics
Honouring your own reputation
Contributing to an ethical company culture
Set aside time regularly to reflect on your actions and their consequences. By remaining mindful of them, you can continue to make ethical decisions as you succeed in sales.
- A great sale won’t feel like a business transaction - it will feel like a partnership based on mutual trust and respect. Making ethical choices will win your customers’ trust and uphold your reputation.
Now that you have a firm grasp of sales ethics, click on “Mark Complete ✓” and let’s move on to explore strategies that will improve your sales communication skills.