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Business Ethics Training: Insights from Learning Theory

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Abstract

This paper explores research in educational psychology and learning theory in a search for insights to enhance business ethics training Useful educational principles uncovered are then applied to the development of an ethics training initiative for sales professionals. The paper concludes with suggestions for future research to help enrich business ethics training.

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Author information

Authors and Affiliations

  1. University of Notre Dame, Notre Dame, IN, USA

    John A. Weber

Authors
  1. John A. Weber
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Corresponding author

Correspondence to John A. Weber.

Additional information

John A. Weber, PhD, University of Wisconsin, is Associate Professor of Marketing at the University of Notre Dame.

Appendices

1 See http://www.nd.edu/∼jweber/ or contact author at weber.1@nd,.edu for information on available ‘integrity in selling’ case sets.

Appendix I: An Integrity in Selling Case Discussion Example

Case Example: Negotiation & Closing Different Dimensions of Gift Giving (Timing, Amount, Intention)

Golfing for Dollars - H.C. Hunt

Heather Danner has just moved from Grand Rapids to Kalamazoo, Michigan to become the new National Accounts Sales Manager at H. C. Hunt, a brake parts manufacturer. Hunt sells brake pads and related parts to OEM brake manufacturers, directly to the new automobile makers, and in the aftermarket. Currently, Heather is trying to get distribution for Hunt brake pads in Pep Guys, a national retail auto parts distributor serving the automobile aftermarket. This could be a huge step forward for Hunt. Heather’s immediate boss, Hunt President Ron Blankenship, has instructed Heather to ‘pull out all the stops’ to try to get this business.

On Monday morning, Heather meets with Jeff Snyder, VP of Procurement for Pep Guys. Fifteen minutes into the meeting, it has become clear to Heather that Jeff is quite pleased with his two current brake pad suppliers and feels he does not need yet another one. During this brief introductory discussion, Heather sees several golf trophies as well as a putter and a practice cup along one side of Jeff’s office. Heather is the reigning Lady’s City Champion in Grand Rapids and can really talk the game. She tries to build rapport with Jeff by talking about golf in general, revealing that she has a three handicap and asking him about local courses where she might play now that she has moved to Kalamazoo. After this cordial side discussion, Heather then enthusiastically launches into a short presentation showing the comparative wearability of Hunt pads versus the competition. Swayed by their rapport as well as by the convincing statistics, Jeff agrees to tour the Hunt plant later this week (on Friday) and to continue the discussion with Hunt about possibly becoming a Pep Guy’s supplier.

Upon her return to the office, Heather reports her tentative success to her boss, Ron Blankenship. Ron, also a golfer, suggests that Heather select an appropriate golfing related gift to send to Jeff just prior to his upcoming visit to Hunt. The purpose is to soften Jeff up and make him more favorably disposed toward approving Hunt as a new Pep Guys supplier.

Questions for Discussion

  1. 1.

    Would it be an inappropriate gratuity and, therefore, compromise integrity if:

    • Heather sent Jeff a $15 book by Bob Rosburg on Putting? Why or why not?

    • Heather sent Jeff a dozen Titliest Pro V golf balls (worth about $50)?

    • Heather and Ron invited Jeff and a friend for a round of golf at Ron’s exclusive golf club in Kalamazoo (worth about $280)?

    • Heather and Ron invited Jeff and a friend to the second round of the Masters golf tournament, all expenses paid (a $2000 value)

  2. 2.

    Discuss whether or not the amount of a gift or the timing of a gift can influence whether or not a gift compromises integrity.

    • Amount of gift

    • Timing of gift

  3. 3.

    Assume Heather and Ron invited Jeff and a␣friend to the second round of the Masters␣golf tournament, all expenses paid (a $2000␣value), and Hunt subsequently got the contract.

    • Did any integrity compromise occur?

    • If so, what, and why?

  4. 4.

    Assume that after getting the contract, Heather and Ron invited Jeff and a friend to the second round of the Masters golf tournament, all expenses paid (a $2000 value), to express their appreciation for the new business.

    • Did any integrity compromise occur?

    • If so what, and why?

    • Referring to that example, discuss the affect timing may have on whether or not a gratuity is inappropriate.

Additional Potential Questions for Coverage as Time Allows

  1. 5.

    Can intention itself cause a specific selling practice to compromise integrity? Discuss.

  2. 6.

    Assume a simple book on Putting ($15 value) was sent, the visit to Hunt completed, and Hunt did not get the new contract. Did any integrity compromise occur?

  3. 7.

    Assume the Masters golf trip was provided, the visit to Hunt completed, and Hunt did not get the new contract.

    • Did any integrity compromise occur?

    • Does whether or not Hunt gets the business affect the integrity of the gratuity offer? Why? Discuss.

  4. 8.

    Assume the trip to the Masters was offered before the contract, but the offer was declined by the would-be buyer.

    • Did any integrity compromise occur?

    • If so, what, and why? Discuss.

Case Discussion

The case example presented above deals with the subtle practice of gift giving. In this instance, a sales person is trying to win a new national account and has been told by her boss to ‘pull out all the stops.’ Partially because the seller uncovers a mutual passion for golf during the rapport building process, she is successful in convincing the buyer to take a plant tour of her company’s facilities. She reports her tentative success to her boss, who suggests that she select an appropriate golfing related gift to send to the buyer just prior to the upcoming plant visit. The questions following this case explore whether such a gift might compromise integrity because of intention or timing. Also explored is the integrity of giving gifts of different sizes and under alternative circumstances. A Stakeholder Impact Chain (below) is included with this case.

Case Debrief – Inductive Learning Results

Lessons inductively learned or ‘self-discovered’ through the discussion in the case example were drawn out from the group and concisely summarized by the facilitator in the debriefing. These lessons included the following.

Wide Range of Integrity Issues. The first lesson is self-discovering the benefits of becoming more aware of the wide range of integrity dilemma that can arise as a normal part of the selling process. The minority who felt no integrity issue was involved in this case (even with the trip to the Masters) were surprised to learn that some colleagues felt an integrity issue was indeed involved – even if the gift was only a relatively inexpensive book or a dozen golf balls.

Challenge to Re-think One’s Own Personal Views on What Is & Is Not Morally Acceptable Selling Behavior. The next potential lesson, one related to the first lesson, is self-discovery of the benefit of becoming more aware of colleagues’ contrasting views concerning the integrity of specific selling practices. In this case, roughly one-half of the participants indicated surprise that any of their colleagues would profess either extreme – either that gift giving of any sort is inappropriate or that a sizeable gift (in this example, valued at say $1000 or more) given to build rapport and enticement would not be considered inappropriate.

Identifying One’s Own Integrity Guidelines, Standards or Principles. Another potential lesson is self-discovery of the benefit of identifying what principles (if any) one is currently using to try to address moral selling dilemma (virtue/duty-based, golden rule, newspaper test, circumstantial, net positive result, etc. – see Murphy and Laczniak 2005). Nearly everyone participating in the session was surprised that even one of their colleagues held to a value/duty based integrity standard that disallowed all prospective gift giving as a vehicle for trying to influence a sale. Most recognized that they tended more toward a ‘circumstantial integrity standard’ – feeling that gift size and timing are the primary determinants of whether or not a specific gift offer compromises integrity. Few were surprised that several in the group held a very loose integrity standard that allowed them to feel comfortable doing pretty much whatever is necessary to get the business, as long as it does not violate the law.

Wide-ranging Potential Stakeholder Impacts. The next potential lesson is self-discovery of the benefits of methodically considering how a single integrity compromise can potentially impact a very wide range of stakeholders. By building and discussing the ‘Stakeholder Impact Chain’ for this case, surprise built in the group as they realized the wide range of stakeholders who can potentially be negatively impacted by gift giving.

Benefits of Creative Search for Alternative Behaviors or Approaches. Another potential is self-discovery of the benefits of pausing and brainstorming for alternatives when facing difficult moral selling dilemma. The facilitator asked each small group to brain-storm for creative alternative selling tactics that would clearly not compromise integrity while still moving the selling process forward. Individual groups came up with creative positive alternatives not thought of by other groups. This experience highlighted the benefits of stopping, pausing, thinking, and talking with colleagues about alternatives before jumping at the easiest alternative when facing potential moral selling dilemma.

Benefits of a Corporate Code of (Selling) Conduct in Domestic & Foreign Markets. Yet another potential lesson is self-discovery of the benefits of having a corporate code of selling conduct. Sales professionals from two of the companies represented at the session gave positive testimony regarding the benefits of their companies’ aggressive enforcement of detailed codes of selling conduct. These professionals emphasized that the existence of specific standards not only made their moral selling choices much easier with respect to gift-giving, but also had not hurt their business – stimulating them to think of other, more positive ways to influence customers. The group as a whole was also impressed to hear one sales professional relate how the very existence of his company’s Code of Selling Conduct had actually helped him nurture more solid, longer term, productive relationships with his best distributors in foreign markets.

Appendix II: Forty-Four ‘Integrity in Selling’ Case Topics & Related Cases Available

1 See http://www.nd.edu/∼jweber/ or contact author at weber.1@nd,.edu for information on available ‘integrity in selling’ case sets.

Overview of the ‘Moral Selling Dilemma’ Covered in the Cases

A number of professional selling organizations have developed selling models to help companies improve sales force productivity. Such models are available from sales training organizations such as Complex Sale, DSI Consulting, Holden International (Power Base Selling), Huthwaite (Spin Selling), Miller Heiman (Conceptual Selling), On Target / BRS (Target Account Selling), Sales Performance International (SPI) (Solution Selling), and Selling Communications (Target Selling). While the models do vary from system to system, they generally agree upon the common stages in the selling process. These stages include the following:

  • Identifying Opportunities

  • Background Research & Pre-call Planning

  • Stimulating Interest

  • 1st Sales Call

  • Vision Building

  • Finding and Accessing Power

  • Proof Management

  • Negotiations & Closing

  • Implementation (Including Success Measures)

  • Managing the Process (Sales Management)

The case set summarized below includes several cases falling into each of the above categories, presenting moral selling dilemma over the entire selling cycle (including sales management).

CASES

  • 1 Identifying Opportunities

  • 1.1 Identifying Opportunities – Targeting to Sell Over Stocked Products

  • Jake’s Dilemma: How to Sell Out of Date Inventory without Marking Down the Price - The Computer Store

  • 1.2 Identifying Opportunities – Inefficient Use of Selling Time

  • Separating Business from Personal Time - Jansonn Pharmaceuticals

  • 1.3 Identifying Opportunities – Customer Profiling and Related Prejudice

  • Alexa’s Strategy: Judging and Profiling Customers to Maximize Commission - Ellington’s Boutique

  • 1.4 Identifying Opportunities – Variable Offers

  • Give a Coupon or Not? - EZ Shoes

  • 2 Background Research & Pre-call Planning

  • 2.1 Background Research & Pre-call Planning – Accessing Information about Competitors – Using Illegal Methods to Get Inside Information

  • Should Cindy Blow the Whistle? - Inotech

  • 2.2 Background Research & Pre-call Planning – Distorting Information and Data about Competitors

  • Stretching the Truth to Win a Sale - Panther Motors

  • 2.3 Background Research & Pre-call Planning – Presenting False or Misleading Information About Your Company’s Own Products or Services

  • Sure, It Can Do That Too! - CHT Cleaning

  • 2.4 Background Research & Pre-call Planning – Vaporware / Offering False Upgrades

  • Andy’s Dilemma: Promise the Feature or Lose the Business - Century Computers

  • 3 Stimulating Awareness and Interest

  • 3.1 Stimulating Awareness and Interest – Setting out to Cause Concern by Bringing Pain from Unconsciousness to Consciousness (Whether or Not the Buyer Actually Has That Pain)

  • Latent Pain to Pain: What Would Happen to Your Wife and Family if You Had a Tragic Accident - Metro Life Insurance

  • 3.2 Stimulating Awareness and Interest – Through Unproven, Exaggerated, or False Reference Stories:

  • Nicole Exaggerates Her past Experience - Gadgets on the Go

  • 3.3 Stimulating Awareness and Interest – Through Using Unauthorized Proprietary Information

  • Wes’ Dilemma: Should He Use Unauthorized Information - Simple Solutions

  • 3.4 Stimulating Awareness and Interest – Tech Talk to Take Advantage of an Uninformed Buyer

  • Up Selling with Tech Talk / Taking Advantage to Upsell an Uninformed Buyer - Megamart Computers

  • 4 First Sales Contact

  • 4.1 First Sales Contact – Insincerity in Rapport Building

  • George Lies to Build Trust - Long Lasting Roofs

  • 4.2 First Sales Call – Presenting Your Company in the Best Light and Hiding Shortcomings

  • Don’t Ask, Don’t Tell! - Icon Lighting, Inc.

  • 4.3 First Sales Call – Purposefully Delaying or Distorting Total Cost(also see Icon Lighting case)

  • And the Total Cost Is.... - Heat Treated Roofing Solutions

  • 5 Vision Building & Re-engineering

  • 5.1 Vision Building & Re-engineering – Potential for Insincerity as Well as for Manipulating and Misguiding the Buyer

  • If We Don’t Have That Feature, You Don’t Need it! - JIT4 Systems

  • 5.2 Vision Building & Re-engineering – Does Biasing a Search for & Evaluation of Alternatives Compromise Integrity?

  • What You Really Need Is What I Have Overstocked! - Wave Runners Galore

  • 5.3 Vision Building & Re-engineering – Enhancing Pain & Anxiety Building as an Integral Part of the Solution Selling Process

  • Dona’s Over-the-Top Anxiety Building: Tough Love or Gross Insensitivity? - Global Gym

  • 5.4 Vision Building & Re-engineering – Suggesting That Your Capabilities Match Customer’ s Vision

  • Yes, We Can Do That (I Think!!) - College Storage

  • 6 Finding and Accessing Power

  • 6.1 Finding and Accessing Power – Bargaining for Power Using False References

  • `Stimulating a Reference’ to Push a Big Sale - Hi-School Software

  • 6.2 Finding and Accessing Power – Distortions in the Sponsor or Power Sponsor Summary Letters (Trying to Distort what the Potential Buyer Told You)

  • Some Slight of Hand by Perfect Circle - Perfect Circle CRM

  • 6.3 Reference Client’s Accessed – Potential for Additional Practices That Compromise Integrity

  • John Cherry-Picks His Reference Clients - On the Move, Inc.

  • 7 Proof Management & Evaluation Plan

  • 7.1 Proof Management (Evaluation Plan) – Enhancing the Operating Vision by Partnering with Your Power Sponsor

  • If You Help Me, Maybe I Can Help You! - Baron Leaf Printing

  • 7.2 Proof Management (Evaluation Plan) – Enhancing the Transition Vision by Providing False Assurances for Those Concerned with Transition Issues

  • At the End of the Day, the End Justifies the Means, as the Customer Will Be Happy - Academy Books

  • 7.3 Proof Management (Evaluation Plan) – Enhancing the Financial Vision by Distorting Revenue Projections

  • At the End of the Day, the Customer Will Be Glad They Made this Investment - Vitality Solutions

  • 7.4 Proof Management (Evaluation Plan) – Enhancing the Financial Vision by Distorting the Projected Payback Period and ROI

  • Stuart’s Twist: How Small Adjustments Got Him a Big Sale - E-Com, Inc.

  • 8 Negotiation & Closing

  • 8.1 Negotiation & Closing – Pre-Proposal Review

  • Trying to Close at a Pre-proposal Review - DigiWorld

  • 8.2 Negotiation & Closing – Gifts of Appreciation

  • Influencing the Media Buyer - The Daily Ledger

  • 8.3a Negotiation & Closing – Outright Bribes to Secure a Contract

  • Always Be Ready to Buy the Business! - Office Solutions

  • 8.3b Negotiation & Closing – International Markets / Outright Bribes to Secure a Contract

  • When in Rome ... Bribery as a Way of Life in Newly Industrializing Countries - Typo Int’l

  • 8.4 Negotiation & Closing – Different Dimensions of Gift Giving (Timing, Amount, Intention)

  • Golfing for Dollars - H.C. Hunt

  • 8.5 Negotiation & Closing – Kickbacks

  • What Can You Do for Me to Make Buying from You Worthwhile? - Datamax

  • 9 Following Through on a Sale

  • 9.1 Following Through on a Sale – Abandoning the Customer after the Sale

  • A Chance to Do the Right Thing - Splash Pools

  • 9.2 Following Through on a Sale – Implementation (Including Success Measures) / Using Misleading Measures to Monitor the Results of a Sale

  • Look How Much You Are Now Saving Since Switching to Our Service! - Telco

  • 9.3 Following Through on a Sale – Post Sale Up-Charges / Purposefully Unclear Terms of an Agreement

  • Buyer Misunderstanding: Oh, You Wanted Tires with that Car? - Premier MDC

  • 10 Managing the Process

  • 10.1 Managing the Process – Sandbagging as Response to Ever-Increasing Quotas

  • Mike Stuffs the Order to Reduce His Quota for Next Year - K. L. Wooding

  • 10.2 Managing the Process – Stealing Clients From Another Rep

  • Veronica Gets the Whole Commission / Dilemma Caused by Company Policy - Perfection Boutique

  • 10.3 Managing the Process – Misleading or Lying to Sales Management

  • The Sunshine Pump: Linda Misleads Her Sales Manager - Indigo Technologies

  • 10.4 Managing the Process – Artificial Quotas from Sales Management

  • Equine Heaven Lives! Susan Sets Artificial Quotas and Misleads Her Sales Force - QuickStart Computers

  • 10.5a Managing the Process – Favoritism by Sales Manager

  • Dilemma: Which Game Should He Try to Win? - Adcock Labs

  • 10.5b Managing the Process – Favoritism by Sales Managers

  • Nepotism: Do or Don’t? - Omnitek

  • 10.5c Managing the Process – Favoritism by Sales Manager

  • Favored Treatment for a Friend - Little Brats Toys

  • 10.6 Managing the Process – Setting Unattainable Quotas

  • And for Next Year, We Want You to Do the Impossible! - GEH Printing

  • 10.7 Managing the Process – Sales Manager Misleads New Salesperson

  • Todd’s Eye’s Light Up at the Prospect of a Potential $140,000 Compensation Package - Emma Gibb Corp.

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Weber, J.A. Business Ethics Training: Insights from Learning Theory. J Bus Ethics 70, 61–85 (2007). https://doi.org/10.1007/s10551-006-9083-8

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