Skip to main content
Log in

A Three-Country Study of Unethical Sales Behaviors

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

A major challenge in global sales research is helping managers understand sales ethics across countries. Addressing this challenge, our research investigates whether a few demographic variables and psychographic variables reduce unethical sales behaviors (USBs) in Canada, Mexico, and the USA. Further, using literatures associated with business ethics, national culture, and customer orientation advocacy, we hypothesize why sales managers should expect similarities and differences in USBs between countries. We tested hypotheses using a sales contest scenario and six USBs, examining survey responses from 948 business-to-business salespeople of a multinational company’s sales force in Canada, Mexico, and the USA. The results reveal that several psychographic variables (such as commitment, relationship to sales manager, and achievement need) affect salespeople’s tendency to engage in USBs differently in each country. In addition, business ethics, individualism, and customer orientation advocacy associated with each country can be used to anticipate similarities and differences in USBs between countries. This research offers important theoretical contributions and implications for more effectively managing sales forces and reducing USBs across countries.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1

Similar content being viewed by others

Notes

  1. Despite this positive commentary, Swanson (2004, p. 43) reports that in many business schools, the ethics component bar is set fairly low, seemingly designed solely to meet standards. As result, it is possible that business students “get the message that practicing managers have little or no legal and ethical responsibilities to society”.

  2. Rindfleisch et al. (2008) indicate that a cross-sectional approach may be adequate in many situations such as studies that sample highly educated respondents. The average education level of our 948 respondents is a college graduate, suggesting that our cross-sectional design may be satisfactory for establishing our model’s causal links.

Abbreviations

CPI:

Corruption perceptions index

MNC:

Multinational company

NAFTA:

North American Free Trade Agreement

USB:

Unethical sales behavior

References

  • Adler, N. (1983). A typology of management studies involving culture. Journal of International Business Studies, 14(2), 29–47.

    Article  Google Scholar 

  • Armstrong, R. W., & Sweeney, J. (1994). Industry type, culture, mode of entry and perceptions of international marketing ethics problems: A cross-cultural comparison. Journal of Business Ethics, 12(10), 775–785.

    Article  Google Scholar 

  • Bass, K., Barnett, T., & Brown, G. (1998). The moral philosophy of sales managers and its influence on ethical decision making. Journal of Personal Selling & Sales Management, 18(2), 1–17.

    Google Scholar 

  • Blodgett, J., Lu, L.-C., Rose, G. M., & Vitell, S. J. (2001). Ethical sensitivity to stakeholder interests: A cross-cultural comparison. Journal of the Academy of Marketing Science, 29(2), 190–202.

    Article  Google Scholar 

  • Bochner, S., & Hesketh, B. (1994). Power distance, individualism/collectivism, and job-related attitudes in a culturally diverse work group. Journal of Cross-Cultural Psychology, 25(2), 233–257.

    Article  Google Scholar 

  • Brooks, L. J. (1997). Business ethics in Canada: Distinctiveness and directions. Journal of Business Ethics, 16(6), 591–604.

    Article  Google Scholar 

  • Cadogan, J. W., Lee, N., Tarkianinen, A., & Sundqvist, S. (2009). Sales manager and sales team determinants of salesperson ethical behaviour. European Journal of Marketing, 43(7/8), 907–937.

    Article  Google Scholar 

  • Chonko, L. B., & Burnett, J. J. (1983). Measuring the importance of ethical situations as a source of role conflict: A survey of salespeople, sales managers, and sales support personnel. Journal of Personal Selling & Sales Management, 3(1), 41–47.

    Google Scholar 

  • Cohen, D. V. (1993). Creating and maintaining ethical work climates: Anomie in the workplace and implications for managing Change. Business Ethics Quarterly, 3(4), 343–358.

    Article  Google Scholar 

  • Collins, D., & Whitaker, J. (2009). Introduction to Central America and Mexico: Efforts and obstacles in creating ethical organizations and an ethical economy. Journal of Business Ethics, 88(Suppl 2), 225–230.

    Article  Google Scholar 

  • Dubinsky, A. J., Jolson, M. A., Kotabe, M., & Lim, C. U. (1991). A cross-national investigation of industrial salespeople’s ethical perceptions. Journal of International Business Studies, 22(4), 651–670.

    Article  Google Scholar 

  • Dunfee, T. W., & Werhane, P. (1997). Report on business ethics in North America. Journal of Business Ethics, 16(14), 1589–1595.

    Article  Google Scholar 

  • Feldman, J. M., & Lynch, J. G. (1988). Self-generated validity and other effects of measurement on belief, attitude, intention, and behavior. Journal of Applied Psychology, 73(3), 421–435.

    Article  Google Scholar 

  • Ferrell, O. C., & Gresham, L. G. (1985). A contingency framework for understanding ethical decision making in marketing. Journal of Marketing, 49(3), 87–96.

    Article  Google Scholar 

  • Ferrell, O. C., Johnston, M. W., & Ferrell, L. (2007). A framework for personal selling and sales management ethical decision making. Journal of Personal Selling & Sales Management, 27(4), 291–299.

    Article  Google Scholar 

  • Fornell, C., & Larcker, D. F. (1981). Evaluating structural equation models with unobservable variables and measurement error. Journal of Marketing Research, 18(1), 39–50.

    Article  Google Scholar 

  • Gerbing, D. W., & Anderson, J. C. (1988). An updated paradigm for scale development incorporating unidimensionality and its assessment. Journal of Marketing Research, 25(2), 186–192.

    Article  Google Scholar 

  • Hansen, J. D., & Riggle, R. J. (2009). Ethical salesperson behavior in sales relationships. Journal of Personal Selling and Sales Management, 29(2), 151–166.

    Article  Google Scholar 

  • Hattie, J. (1985). Methodology review: Assessing unidimensionality of tests and items. Applied Psychological Measurement, 9(2), 139–164.

    Article  Google Scholar 

  • Hofstede, G. (1980). Culture’s consequences: International differences in work related values. Beverly Hills, CA: Sage.

    Google Scholar 

  • Hofstede, G. (2001). Culture’s consequences: Comparing values, behaviors, institutions, and organizations across nations (2nd ed.). Thousand Oaks, CA: Sage.

    Google Scholar 

  • Hofstede, G., & Bond, M. H. (1984). Hofstede’s cognitive dimensions: An independent validation using Rokeach’s value survey. Journal of Cross-Cultural Psychology, 15(4), 417–433.

    Article  Google Scholar 

  • Honeycutt, E. D., Siguaw, J. A., & Hunt, T. G. (1995). Business ethics and job-related constructs: A cross cultural comparison of automotive salespeople. Journal of Business Ethics, 14(3), 235–248.

    Article  Google Scholar 

  • Hunt, S. D., Wood, V. R., & Chonko, L. B. (1989). Corporate ethical values and organizational commitment in marketing. Journal of Marketing, 53(3), 79–90.

    Article  Google Scholar 

  • Husted, B. W., & Allen, D. B. (2008). Toward a model of cross-cultural business ethics: The impact of individualism and collectivism on the ethical decision-making process. Journal of Business Ethics, 82(2), 293–305.

    Article  Google Scholar 

  • Ingram, T. N., LaForge, R. W., & Schwepker, C. H, Jr. (2007). Salesperson ethical decision making: The impact of sales leadership and sales management control strategy. Journal of Personal Selling & Sales Management, 27(4), 301–315.

    Article  Google Scholar 

  • Jaworski, B. J., & Kohli, A. K. (1993). Market orientation: Antecedents and consequences. Journal of Marketing, 57(3), 53–70.

    Article  Google Scholar 

  • Judge, W. Q., McNatt, D. B., & Xu, W. (2010). The antecedents and effects of national corruption: A meta-analysis. Journal of World Business, 46(1), 93–103.

    Article  Google Scholar 

  • Kirkman, B. L., Lowe, K. B., & Gibson, C. B. (2006). A quarter century of “culture’s consequences”: A review of empirical research incorporating Hofstede’s cultural values framework. Journal of International Business Studies, 37(3), 285–320.

    Article  Google Scholar 

  • Kolk, A., Tulder, R. V., & Welters, C. (1999). International codes of conduct and corporate social responsibility: Can transnational corporations regulate themselves? Transnational Corporations, 8(1), 143–180.

    Google Scholar 

  • Krueger, J. (1998). Enhancement bias in descriptions of self and others. Personality and Social Psychology Bulletin, 24(5), 505–516.

    Article  Google Scholar 

  • Kurland, N. B. (1991). The ethical implications of the straight-commission compensation system: An agency perspective. Journal of Business Ethics, 10(10), 757–766.

    Article  Google Scholar 

  • Lindsay, M. R., Lindsay, L. M., & Irvine, V. B. (1996). Instilling ethical behavior in organizations: A survey of Canadian companies. Journal of Business Ethics, 15(4), 393–407.

    Article  Google Scholar 

  • Manley, G. G., Russell, C. J., & Buckley, M. R. (2001). Self-enhancing in perceptions of behaving unethically. Journal of Education for Business, 77(1), 21–27.

    Article  Google Scholar 

  • Mantel, S. P. (2005). Choice or perception: How affect influences ethical choices among salespeople. Journal of Personal Selling & Sales Management, 25(1), 43–55.

    Google Scholar 

  • McClaren, N. (2000). Ethics in personal selling and sales management: A review of the literature focusing on empirical findings and conceptual foundations. Journal of Business Ethics, 27(3), 285–303.

    Article  Google Scholar 

  • McKinney, J. A. (2010). US–Canadian economic relations, twenty years after the USA–Canada free trade agreement. British Journal of Canadian Studies, 23(2), 233–246.

    Article  Google Scholar 

  • Moncrief, W. C., Hart, S. H., & Robertson, D. (1988). Sales contests: A new look at an old tool. Journal of Personal Selling & Sales Management, 8(3), 55–61.

    Google Scholar 

  • Murphy, W. H. (2004). In pursuit of short-term goals: Anticipating the unintended consequences of using special incentives to motivate the sales force. Journal of Business Research, 57(11), 1265–1275.

    Article  Google Scholar 

  • Nijhof, A., Cludts, S., Fisscher, O., & Laan, A. (2003). Measuring the implementation of codes of conduct. An assessment method based on a process approach of the responsible organisation. Journal of Business Ethics, 45(1/2), 65–78.

    Article  Google Scholar 

  • Peters, T. J., & Waterman, R. H, Jr. (1982). In search of excellence: Lessons from America’s best-run companies. New York: Harper and Row.

    Google Scholar 

  • Peterson, R. A., Albaum, G., Merunka, D., Munuera, J. L., & Smith, S. M. (2010). Effects of nationality, gender, and religiosity on business-related ethicality. Journal of Business Ethics, 96(4), 573–587.

    Article  Google Scholar 

  • Pettijohn, C., Pettijohn, L., & Taylor, A. J. (2008). Salesperson perceptions of ethical behaviors: Their influence on job satisfaction and turnover intentions. Journal of Business Ethics, 78(4), 547–557.

    Article  Google Scholar 

  • Rindfleisch, A., Malter, A. J., Ganesan, S., & Moorman, C. (2008). Cross-sectional versus longitudinal survey research: Concepts, findings, and guidelines. Journal of Marketing Research, 45(3), 261–279.

    Article  Google Scholar 

  • Román, S., & Munuera, J. L. (2005). Determinants and consequences of ethical behaviour: An empirical study of salespeople. European Journal of Marketing, 39(5/6), 473–495.

    Article  Google Scholar 

  • Román, S., & Ruiz, S. (2005). Relationship outcomes of perceived ethical sales behavior: The customer’s perspective. Journal of Business Research, 58(4), 439–445.

    Article  Google Scholar 

  • Rouziès, D., Coughlan, A. T., Anderson, E., & Iacobucci, D. (2009). Determinants of pay levels and structures in sales organizations. Journal of Marketing, 73(6), 92–104.

    Article  Google Scholar 

  • Saxe, R., & Weitz, B. A. (1982). The SOCO scale: A measure of the customer orientation of salespeople. Journal of Marketing Research, 19(3), 343–351.

    Article  Google Scholar 

  • Scholl, R. W. (1981). Differentiating organizational commitment from expectancy as a motivating force. Academy of Management Review, 6(4), 589–599.

    Google Scholar 

  • Scholtens, B., & Dam, L. (2007). Cultural values and international differences in business ethics. Journal of Business Ethics, 75(3), 273–284.

    Article  Google Scholar 

  • Schwepker, C. H, Jr. (2001). Ethical climate’s relationship to job satisfaction, organizational commitment, and turnover intention in the salesforce. Journal of Business Research, 54(1), 39–52.

    Article  Google Scholar 

  • Schwepker, C. H, Jr, & Good, D. J. (2007). Sales management’s influence on employment and training in developing an ethical sales force. Journal of Personal Selling & Sales Management, 27(4), 325–339.

    Article  Google Scholar 

  • Schwepker, C. H, Jr, & Ingram, T. N. (1996). Improving sales performance through ethics: The relationship between salesperson moral judgment and job performance. Journal of Business Ethics, 15(11), 1151–1160.

    Article  Google Scholar 

  • Steenkamp, J. E. M., & Baumgartner, H. (1998). Assessing measurement invariance in cross-national consumer research. Journal of Consumer Research, 25(1), 78–90.

    Article  Google Scholar 

  • Svensson, G., Wood, G., Singh, J., Carasco, E., & Callaghan, M. (2009). Ethical structures and processes of corporations operating in Australia, Canada, and Sweden: A longitudinal and cross-cultural study. Journal of Business Ethics, 86(4), 485–506.

    Article  Google Scholar 

  • Swanson, D. L. (2004). The buck stops here: Why universities must reclaim business ethics education. Journal of Academic Ethics, 2(1), 43–61.

    Article  Google Scholar 

  • Transparency International. (2010). Corruption perceptions index 2010. http://www.transparency.org/policy_research/surveys_indices/cpi/2010/in_detail.

  • Trevino, L. K. (1986). Ethical decision-making in organizations: A person-situation interactionist model. Academy of Management Review, 11(3), 601–617.

    Google Scholar 

  • Tyagi, P. K. (1985). Relative importance of key job dimensions and leadership behaviors in motivating salesperson work performance. Journal of Marketing, 49(3), 76–86.

    Article  Google Scholar 

  • Valentine, S., & Barnett, T. (2002). Ethics codes and sales professionals’ perceptions of their organizations’ ethical values. Journal of Business Ethics, 40(3), 191–200.

    Article  Google Scholar 

  • Verbeke, W., Ouwerkerk, C., & Peelen, E. (1996). Exploring the contextual and individual factors on ethical decision making of salespeople. Journal of Business Ethics, 15(11), 1175–1187.

    Article  Google Scholar 

  • Vitell, S. J., Nwachukwu, S. L., & Barnes, J. H. (1993). The effects of culture on ethical decision-making: An application of Hofstede’s typology. Journal of Business Ethics, 12(10), 753–760.

    Article  Google Scholar 

  • Weeks, W. A., Loe, T. W., Chonko, L. B., Martinez, C. R., & Wakefield, K. (2006). Cognitive moral development and the impact of perceived organizational ethical climate on the search for sales force excellence: A cross-cultural study. Journal of personal selling & sales management, 26(2), 205–217.

    Article  Google Scholar 

  • Weeks, W. A., Loe, T. W., Chonko, L. B., & Wakefield, K. (2004). The effect of perceived ethical climate on the search for sales force excellence. Journal of Personal Selling & Sales Management, 24(3), 199–213.

    Google Scholar 

  • Wildt, A. R., Parker, J. D., & Harris, C. E, Jr. (1980/1981). Sales contests: What we know and what we need to know. Journal of Personal Selling & Sales Management, 1(1), 57–64.

    Google Scholar 

  • Wotruba, T. R. (1990). A comprehensive framework for the analysis of ethical behavior, with a focus on sales organizations. Journal of Personal Selling & Sales Management, 10(2), 29–42.

    Google Scholar 

  • Wotruba, T. R., & Schoel, D. J. (1983). Evaluation of salesforce contest performance. Journal of Personal Selling & Sales Management, 3(1), 1–10.

    Google Scholar 

  • Yoo, B., & Donthu, N. (2002). Culture’s consequences: Comparing values, behaviors, institutions and organizations across nations. 2d Ed. Geert Hofstede (a book review). Journal of Marketing Research, 39(3), 388–389.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Ning Li.

Additional information

Ning Li and William H. Murphy contributed equally to this work.

Appendix

Appendix

See Table 6.

Table 6 Measures and measure performance of multiple-item constructs

Rights and permissions

Reprints and permissions

About this article

Cite this article

Li, N., Murphy, W.H. A Three-Country Study of Unethical Sales Behaviors. J Bus Ethics 111, 219–235 (2012). https://doi.org/10.1007/s10551-012-1203-z

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-012-1203-z

Keywords

Navigation