{"id":273,"date":"2022-02-02T17:46:08","date_gmt":"2022-02-02T22:46:08","guid":{"rendered":"https:\/\/pressbooks.bccampus.ca\/thepowerofselling\/?post_type=chapter&p=273"},"modified":"2022-04-25T13:21:34","modified_gmt":"2022-04-25T17:21:34","slug":"4-3-business-tools-and-corporate-guidelines","status":"publish","type":"chapter","link":"https:\/\/pressbooks.bccampus.ca\/thepowerofselling\/chapter\/4-3-business-tools-and-corporate-guidelines\/","title":{"raw":"4.3. Business tools and Corporate Guidelines","rendered":"4.3. Business tools and Corporate Guidelines"},"content":{"raw":"Ethics and values are major concepts.\u00a0 How can a business ensure that the corporation\u2019s values and ethics are portrayed through their corporation?\u00a0 That is the purpose of a mission statement; it becomes a roadmap for decisions, choices, and behavior. What is a mission statement?\u00a0 Mission statements are formalized summaries of values and aims of company (Oxford dictionary, 2020).\u00a0 Companies also use a mission statement to define their direction, make operating decisions, and communicate to employees, vendors, shareholders, and other stakeholders. In fact, most companies have a formal, written mission that they include on their Web site. A mission statement is different from an advertising slogan or motto. It is based on the company\u2019s ethics and values and provides a broad direction as to what the company stands for. For example, Harley-Davidson\u2019s mission statement is to \u201cinspire and fulfill dreams around the world through Harley-Davidson experiences\u201d whereas FedEx has their values and mission statement together:\r\n
\u201cFedEx will provide superior financial returns for shareowners by providing high value-added supply chain, transportation, business and related information services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment serviced. FedEx will strive to develop mutually rewarding relationships with its employees, partners, and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards<\/em>\u00a0(FedEx, 2020).<\/blockquote>\r\nMany companies put their mission statement or philosophy online\u2014others use a printed manual. The mission statement is made available for the following reasons: employees can use it to aid them in ethical business decision making, investors can evaluate the company\u2019s ethics before making a decision about becoming involved with it, and customers can choose whom they will do business with based on their ethics and purpose\r\n

The Power of Your Reputation<\/h2>\r\nIn November of 2008,\u00a0Tomb Raider: Underworld\u00a0<\/em>was released for multiple gaming systems. Knowing how important a game\u2019s reputation can be for sales, public relations firm Barrington Harvey\u2014in an attempt to massage the Metacritic score, a less-than-ethical move\u2014asked reviewers to hold their scores until after the first weekend of the game\u2019s release. \u201cThat\u2019s right. We\u2019re trying to manage the review scores at the request of Eidos.\u201d When asked why, a spokesperson for Barrington Harvey explained, \u201cJust that we\u2019re trying to get the Metacritic rating to be high, and the brand manager in the United States that\u2019s handling all of Tomb Raider has asked that we just manage the scores before the game is out, really, just to ensure that we don\u2019t put people off buying the game, basically.\u201d\u00a0 (Fahley, 2008). Eidos, the company that published the game, tried to take an ethical shortcut\u2014they wanted to be sure that the game\u2019s reputation\u00a0could not\u00a0<\/em>precede it\u2014but paid for that decision with a great deal of negative publicity that adversely impacted their reputation. Your overall character as judged by other people is your reputation (reputation, 2009). Consider some celebrities who have had unethical acts negatively impact their reputation: Tiger Woods, known as one of golf\u2019s greats has been reduced to tabloid fodder since the news of his extramarital affairs; Michael Phelps, the only person to ever win eight gold medals in a single Olympic Games, has become the poster boy for marijuana use. Both had stellar reputations and were considered role models. Now both are working to gain back the trust of the public.\r\n

Build\u00a0Your\u00a0Reputation:\u00a0Be\u00a0an Industry Expert<\/h2>\r\nA great way to build your reputation in a specific industry is to become an industry expert: write a blog, tweet regularly about industry issues, be a guest speaker or panelist at industry conferences or events online or in person. Experts in their filed earned this reputation by building and maintaining their personal brand \u00a0which, in turn, will help you build your client list (Hall, 2020).\r\n\r\nWhen you work in sales, you are selling yourself; you will have greater success with customers if you are someone they want to \u201cbuy.\u201d\u00a0When customers buy from you, they are investing in your reputation. George Ludwig, author of Power Selling, explains that \u201cyou\u2019ve got to live out your identity consistently in every facet of your life and make sure prospective clients bump into that identity everywhere they turn.\u201d<\/em>\u00a0(Zemanski, 2009). In other words, every action you take affects your reputation. If you fail to follow up, forget details, or even if you are consistently late for meetings, you may become known as unreliable. On the other hand, if you consistently deliver what you promise, you will be known as reliable; if you always meet your deadlines, you will have a reputation for punctuality.\r\n

You\u2019re Only as Good as Your Word<\/h2>\r\nUnfortunately, not everyone in sales is ethical or honest. David Chittock, president of Incentra, Inc., discusses one encounter in which a customer shared her view of salespeople: \u201cThe prospect\u2019s body language told me she wasn\u2019t just uncomfortable\u2014she was downright hostile to me. Finally, she shared this sentiment out loud: \u2018I have to be honest with you. I think that all salespeople are liars, and I don\u2019t trust any of them, and I don\u2019t trust you.\u2019\u201d He goes on to explain that \u201cmany (if not all) of our prospects, view salespeople with suspicion, assuming that in attempting to make a sale, we will be self-serving, manipulative, and possibly even untruthful.\u201d (Chittock, 2009). Chittock and his employees overcome that suspicion by making promises to their customers and then keeping them\u2014sure, it sounds simple, but too many salespeople are willing to promise their customers the moon in order to close the deal. Stephen Morse, a highly successful Silicon Valley sales engineer, echoes Chittock\u2019s messaging in that \u201cif you don\u2019t have the trust of a prospect, he or she isn\u2019t going to buy from you. So honesty, despite the fact that it may not put you or your solution in the best light, is really important. Honesty engenders trust<\/em>.\u2019(Salesforce, n.d., para 5).\r\n

Where the Rubber Meets the Road: Facing Challenges<\/h2>\r\nImagine that you are the buyer for Chez Food, a popular pan-European restaurant on the West Coast. You have good relationships with your suppliers, especially your produce person. \u00a0As the holidays approach, Alex, your produce supplier, approaches you with a gift. They tell you that they really appreciate both your business and your friendship, and they hand you two tickets to a Caribbean cruise. The company policy is clear: you are not supposed to accept gifts from suppliers, but you argue with yourself, what could be the harm? After all, you were planning to keep buying from them before they offered you the tickets; it is not as though they are asking you for anything, anyway. What will you do? Your ethical obligation, of course, is to refuse the tickets\u2014politely. Your relationship with Alex is important, but doing the right thing\u2014and keeping your job\u2014is important too.\r\n\r\nAt some point in your selling career\u2014in fact, probably at many points\u2014you will be faced with a situation that challenges your ethics. At these times, it is best to follow your code of ethics and the company\u2019s code of ethics; when in doubt, do not make an exception. If you\u2019re having trouble finding the motivation to refuse a gift or accurately detail your r\u00e9sum\u00e9, remember that you will very like be found out\u2014and when you\u2019re found out, you will be very lucky not to lose your job. More important, when you fail an ethical challenge, you trade in your integrity.\r\n

Policies, Practices, and Cultures<\/h2>\r\nYou might be wondering how a company provides guidance to all employees about what behavior it expects from them. Imagine a global company like Wal-Mart, which has over two billion employees worldwide (Walmart, 2020). \u00a0How do all the employees know what is considered ethical behavior by the company? Can they take as much time as they want for lunch? Are they able to take off as many days as they wish? What expenses qualify for reimbursement? All the policies of a company are included in its employee handbook.\r\n\r\nEvery company has a highly specific code of ethics governing the actions of its employees. This manual, the employee handbook (sometimes called the code of ethics or code of conduct), outlines the company\u2019s policies concerning gift giving, nondisclosure of company information, and other areas of behavior. Starbucks\u2019 code of ethics,\u00a0Business Ethics and Compliance: Standards of Business<\/em>\u00a0Conduct<\/em>, for example, explains when employees may and may not accept gifts: \u201cYou<\/em>\u00a0may not encourage or solicit meals or entertainment from anyone with whom Starbucks does business or from anyone who desires to do business with Starbucks. Giving or accepting valuable gifts or entertainment might be construed as an improper attempt to influence the relationship.\u201d<\/em>\u00a0(Starbucks, 2009). An employee handbook will also include the company\u2019s sexual harassment and nondiscrimination policies, an explanation of procedures including breaks and scheduling principles, a list of benefits for part- and full-time employees, a breakdown of disciplinary policies and grounds for dismissal, as well as rules concerning phone, fax, mail, Internet use, and the permissible use of company vehicles. The handbook will additionally contain information like the history and goals of the company, conflict of interest, bribes, and common sales conflicts. While all employee handbooks are slightly different, all include the guidelines and policies that define ethical behavior in that company or organization.\u00a0 A page out of IBM\u2019s employee handbook around gratuities or gifts looks like this:\r\n
\u201c<\/em>money from a supplier, customer, or anyone in a business relationship. Nor can they accept a gift or consideration that could be perceived as having been offered because of the business\u00a0<\/em>relationship. \u201cPerceived\u201d simply means this: if you read about it in your local paper, would you\u00a0<\/em>wonder<\/em>\u00a0whether the gift just might have something to do with a business relationship? No IBM employee can give money or a gift of significant value to a supplier if it could reasonably be viewed as being done to gain a business advantage. If an employee is offered money or a gift of some value by a supplier or if one arrives at their home or office, a manager should be informed immediately. If the gift is perishable, the manager will arrange to donate it to a local charitable organization. Otherwise, it should be returned to the supplier. Whatever the circumstances, the\u00a0<\/em>employee or the manager should write the supplier a letter, explain IBM\u2019s guidelines on the\u00a0<\/em>subject<\/em>\u00a0of gifts and gratuities. Of course, it is an accepted practice to talk business over a meal. So it is perfectly all right to occasionally allow a supplier or customer to pick up the check. Similarly, it frequently is necessary for a supplier, including IBM, to provide education and executive\u00a0\u00a0<\/em>briefings<\/em>\u00a0for customers. It\u2019s all right to accept or provide some services in connection with this kind of activity\u2014services such as transportation, food, or lodging. For instance, transportation in\u00a0<\/em>IBM<\/em>\u00a0or<\/em>\u00a0supplier<\/em>\u00a0planes to and from company locations, and lodging and food at company facilities are all right. A violation of these policies may result in termination. \u201c<\/em>(Snoeyenbos, Almeder, & Humber, 2001. p.133).<\/blockquote>\r\nA\u00a0conflict of interest<\/em>\u00a0is\u00a0\u201ca situation in which a person, such as a public official, an employee, or a<\/em>\r\n\r\nprofessional,<\/em>\u00a0has<\/em>\u00a0a private or personal interest sufficient to appear to influence the objective exercise of his or her official duties<\/em>.\u201d (McDonald, 2007). There are four types of conflicts of interest that you may encounter in your career: family interests, gifts, private use of employer property, and moonlighting.\r\n
    \r\n \t
  • Family interests create a conflict when a relative of yours is either someone from whom you might purchase goods or services for your employer or when you have influence over the potential hiring of a family member of yours. It\u2019s best to avoid these types of situations as it can be difficult to make an objective decision.<\/li>\r\n \t
  • Gifts create a conflict of interest when they are given to you by someone with whom you do business. Gifts are frequently given at the holidays and may include something small like a case of wine or something more extravagant like a trip.<\/li>\r\n \t
  • Private use of employer property can be anything from stealing pens to using your work computer to work on editing your vacation pictures to driving the company car on a weekend getaway and then reporting the mileage on a corporate expense report.<\/li>\r\n \t
  • Moonlighting is holding down a second job. While that might not sound insidious at first, if you work two jobs in the same field, it is almost inevitable that you will run into ethical problems. Who gets your best ideas? Where does most of your energy go? Moreover, if you have inside knowledge of two different corporations, working not to let that information influence you will be terribly difficult.<\/li>\r\n<\/ul>\r\nA bribe, according to Merriam-Webster, is \u201cmoney<\/em>\u00a0or favor given or promised in order to influence the judgment or conduct of a person in a position of trust; something that serves to induce or influence.\u201d<\/em>\u00a0(Bribe, 2009). \u00a0Soliciting, accepting, offering, or giving a bribe is illegal\u2014even if your offer is refused, you are committing a crime. Bribery can take place in many different venues. Pharmaceutical companies attempt to persuade doctors to prescribe their products by buying them meals and giving them pens and other trinkets as well as trips to medical conventions. Business gifts are considered a form of bribery when they are given by someone who could benefit from having influence on a decision maker. For example, if you are the buyer of electronics at Wal-Mart, you are not able to accept any gifts from vendors or prospective vendors as it might appear to influence your buying decisions for the chain.\r\n\r\nA noncompeting agreement (sometimes called a covenant not to compete, or CNC) prevents an employee from entering into competition with the employer once his job has ended\u2014in other words, it prevents you from taking a job with a competitor after you\u2019ve quit or been fired. A noncompeting agreement may also prevent former employees from starting their own businesses in the same field. The reasoning behind the CNC is the fear that a former executive could take his insider knowledge and trade secrets\u2014as well as his contacts\u2014with him to a new position. No employer wants to expose its strategy to its competitors.\r\n

    What Is Whistle-Blowing?<\/h2>\r\nJeffrey Wigand, former head of research and development for Brown & Williamson Tobacco Corporation (the third-largest tobacco company in the United States), is one of the most famous whistle-blowers in America. He says of himself, \u201cThe word whistle-blower suggests that you\u2019re a tattletale or that you\u2019re somehow disloyal. But I wasn\u2019t disloyal in the least bit. People were dying. I was loyal to a higher order of ethical responsibility.\u201d<\/em>\u00a0(Salter, 2007). Wigand\u2019s testimony against the tobacco industry, his claims that executives at Brown & Williamson knew that cigarettes were addictive, lied about it under oath, and destroyed documents related to that fact, led directly to the lawsuit brought by forty state attorneys general against tobacco companies. Whistle-blowing, the act of publicly exposing the misconduct of a company or organization, is a courageous act. Wigand\u2019s reputation was destroyed by a punitive smear campaign conducted by the industry he spoke out against, and the stress resulting from that and the trial destroyed his marriage. Brown & Williamson filed a lawsuit against him for revealing confidential company information (the suit was dismissed as a condition of the $368 billion settlement against the tobacco industry. (Wigard, 2009). \u00a0However, Wigand blew the whistle in order to save thousands of lives. The true story was made into a blockbuster movie in 1999 called\u00a0The Insider<\/em>.\r\n\r\nOf course, whistle-blowing exists on a less grand scale. Whistle-blowing doesn\u2019t always involve risking your life, and it doesn\u2019t always involve bringing a corporation to its knees. At its heart, it is action taken to reveal wrongdoings in hopes of seeing justice done.\r\n

    Ethics and the Law<\/h2>\r\nThe ever-changing landscape of technology has created new opportunities to test ethics; spammers, scam artists, and identity thieves have created the need to clearly define legal, and in some cases, ethical behavior online. An increasing number of cases of fraud committed via social networking sites have taken place. There have been cases of people who create Twitter profiles in the names of other, real people.\r\n\r\nNews anchor Keith Olbermann and Tony La Russa, manager of the St. Louis Cardinals, have both been victims of such hoaxes (Citron, 2009). If tempted to such behavior yourself, remember: you are what you tweet. Your reputation will be affected by all the things that you do\u2014make sure that you\u2019re making yourself look good. \u00a0(This will be covered in more detail in a future chapter.)\r\n

    Culture and Ethics<\/h2>\r\nWhen you are working in a different country, or with professionals from other cultures, there may be different ideas as to what is appropriate and ethical. The Japanese, for example, have a culture of corporate gift giving;\u00a0kosai hi<\/em>\u00a0(literally \u201cexpense for friendly relations\u201d) (Lafayette de Mente, 2004) refers to the Japanese business practice of maintaining large expense accounts used for entertaining clients and nurturing other professional relationships. This money is, for example, often used to buy golf club memberships as gifts for people with whom Japanese businessmen and women have valuable working relationships. When you come face-to-face with these different customs, it is important not to be insulting, but you also cannot ignore your company\u2019s policies. \u201cWhen in Rome\u201d will only carry you so far. A good rule of thumb is this: if you wouldn\u2019t be comfortable telling your boss about it, or if you\u2019d be embarrassed to tell your mom about it, don\u2019t do it. If you are working for a company that does business in more than one country, odds are they will have a liaison from each country that can help you to navigate the intricacies of cultural difference.","rendered":"

    Ethics and values are major concepts.\u00a0 How can a business ensure that the corporation\u2019s values and ethics are portrayed through their corporation?\u00a0 That is the purpose of a mission statement; it becomes a roadmap for decisions, choices, and behavior. What is a mission statement?\u00a0 Mission statements are formalized summaries of values and aims of company (Oxford dictionary, 2020).\u00a0 Companies also use a mission statement to define their direction, make operating decisions, and communicate to employees, vendors, shareholders, and other stakeholders. In fact, most companies have a formal, written mission that they include on their Web site. A mission statement is different from an advertising slogan or motto. It is based on the company\u2019s ethics and values and provides a broad direction as to what the company stands for. For example, Harley-Davidson\u2019s mission statement is to \u201cinspire and fulfill dreams around the world through Harley-Davidson experiences\u201d whereas FedEx has their values and mission statement together:<\/p>\n

    \u201cFedEx will provide superior financial returns for shareowners by providing high value-added supply chain, transportation, business and related information services through focused operating companies. Customer requirements will be met in the highest quality manner appropriate to each market segment serviced. FedEx will strive to develop mutually rewarding relationships with its employees, partners, and suppliers. Safety will be the first consideration in all operations. Corporate activities will be conducted to the highest ethical and professional standards<\/em>\u00a0(FedEx, 2020).<\/p><\/blockquote>\n

    Many companies put their mission statement or philosophy online\u2014others use a printed manual. The mission statement is made available for the following reasons: employees can use it to aid them in ethical business decision making, investors can evaluate the company\u2019s ethics before making a decision about becoming involved with it, and customers can choose whom they will do business with based on their ethics and purpose<\/p>\n

    The Power of Your Reputation<\/h2>\n

    In November of 2008,\u00a0Tomb Raider: Underworld\u00a0<\/em>was released for multiple gaming systems. Knowing how important a game\u2019s reputation can be for sales, public relations firm Barrington Harvey\u2014in an attempt to massage the Metacritic score, a less-than-ethical move\u2014asked reviewers to hold their scores until after the first weekend of the game\u2019s release. \u201cThat\u2019s right. We\u2019re trying to manage the review scores at the request of Eidos.\u201d When asked why, a spokesperson for Barrington Harvey explained, \u201cJust that we\u2019re trying to get the Metacritic rating to be high, and the brand manager in the United States that\u2019s handling all of Tomb Raider has asked that we just manage the scores before the game is out, really, just to ensure that we don\u2019t put people off buying the game, basically.\u201d\u00a0 (Fahley, 2008). Eidos, the company that published the game, tried to take an ethical shortcut\u2014they wanted to be sure that the game\u2019s reputation\u00a0could not\u00a0<\/em>precede it\u2014but paid for that decision with a great deal of negative publicity that adversely impacted their reputation. Your overall character as judged by other people is your reputation (reputation, 2009). Consider some celebrities who have had unethical acts negatively impact their reputation: Tiger Woods, known as one of golf\u2019s greats has been reduced to tabloid fodder since the news of his extramarital affairs; Michael Phelps, the only person to ever win eight gold medals in a single Olympic Games, has become the poster boy for marijuana use. Both had stellar reputations and were considered role models. Now both are working to gain back the trust of the public.<\/p>\n

    Build\u00a0Your\u00a0Reputation:\u00a0Be\u00a0an Industry Expert<\/h2>\n

    A great way to build your reputation in a specific industry is to become an industry expert: write a blog, tweet regularly about industry issues, be a guest speaker or panelist at industry conferences or events online or in person. Experts in their filed earned this reputation by building and maintaining their personal brand \u00a0which, in turn, will help you build your client list (Hall, 2020).<\/p>\n

    When you work in sales, you are selling yourself; you will have greater success with customers if you are someone they want to \u201cbuy.\u201d\u00a0When customers buy from you, they are investing in your reputation. George Ludwig, author of Power Selling, explains that \u201cyou\u2019ve got to live out your identity consistently in every facet of your life and make sure prospective clients bump into that identity everywhere they turn.\u201d<\/em>\u00a0(Zemanski, 2009). In other words, every action you take affects your reputation. If you fail to follow up, forget details, or even if you are consistently late for meetings, you may become known as unreliable. On the other hand, if you consistently deliver what you promise, you will be known as reliable; if you always meet your deadlines, you will have a reputation for punctuality.<\/p>\n

    You\u2019re Only as Good as Your Word<\/h2>\n

    Unfortunately, not everyone in sales is ethical or honest. David Chittock, president of Incentra, Inc., discusses one encounter in which a customer shared her view of salespeople: \u201cThe prospect\u2019s body language told me she wasn\u2019t just uncomfortable\u2014she was downright hostile to me. Finally, she shared this sentiment out loud: \u2018I have to be honest with you. I think that all salespeople are liars, and I don\u2019t trust any of them, and I don\u2019t trust you.\u2019\u201d He goes on to explain that \u201cmany (if not all) of our prospects, view salespeople with suspicion, assuming that in attempting to make a sale, we will be self-serving, manipulative, and possibly even untruthful.\u201d (Chittock, 2009). Chittock and his employees overcome that suspicion by making promises to their customers and then keeping them\u2014sure, it sounds simple, but too many salespeople are willing to promise their customers the moon in order to close the deal. Stephen Morse, a highly successful Silicon Valley sales engineer, echoes Chittock\u2019s messaging in that \u201cif you don\u2019t have the trust of a prospect, he or she isn\u2019t going to buy from you. So honesty, despite the fact that it may not put you or your solution in the best light, is really important. Honesty engenders trust<\/em>.\u2019(Salesforce, n.d., para 5).<\/p>\n

    Where the Rubber Meets the Road: Facing Challenges<\/h2>\n

    Imagine that you are the buyer for Chez Food, a popular pan-European restaurant on the West Coast. You have good relationships with your suppliers, especially your produce person. \u00a0As the holidays approach, Alex, your produce supplier, approaches you with a gift. They tell you that they really appreciate both your business and your friendship, and they hand you two tickets to a Caribbean cruise. The company policy is clear: you are not supposed to accept gifts from suppliers, but you argue with yourself, what could be the harm? After all, you were planning to keep buying from them before they offered you the tickets; it is not as though they are asking you for anything, anyway. What will you do? Your ethical obligation, of course, is to refuse the tickets\u2014politely. Your relationship with Alex is important, but doing the right thing\u2014and keeping your job\u2014is important too.<\/p>\n

    At some point in your selling career\u2014in fact, probably at many points\u2014you will be faced with a situation that challenges your ethics. At these times, it is best to follow your code of ethics and the company\u2019s code of ethics; when in doubt, do not make an exception. If you\u2019re having trouble finding the motivation to refuse a gift or accurately detail your r\u00e9sum\u00e9, remember that you will very like be found out\u2014and when you\u2019re found out, you will be very lucky not to lose your job. More important, when you fail an ethical challenge, you trade in your integrity.<\/p>\n

    Policies, Practices, and Cultures<\/h2>\n

    You might be wondering how a company provides guidance to all employees about what behavior it expects from them. Imagine a global company like Wal-Mart, which has over two billion employees worldwide (Walmart, 2020). \u00a0How do all the employees know what is considered ethical behavior by the company? Can they take as much time as they want for lunch? Are they able to take off as many days as they wish? What expenses qualify for reimbursement? All the policies of a company are included in its employee handbook.<\/p>\n

    Every company has a highly specific code of ethics governing the actions of its employees. This manual, the employee handbook (sometimes called the code of ethics or code of conduct), outlines the company\u2019s policies concerning gift giving, nondisclosure of company information, and other areas of behavior. Starbucks\u2019 code of ethics,\u00a0Business Ethics and Compliance: Standards of Business<\/em>\u00a0Conduct<\/em>, for example, explains when employees may and may not accept gifts: \u201cYou<\/em>\u00a0may not encourage or solicit meals or entertainment from anyone with whom Starbucks does business or from anyone who desires to do business with Starbucks. Giving or accepting valuable gifts or entertainment might be construed as an improper attempt to influence the relationship.\u201d<\/em>\u00a0(Starbucks, 2009). An employee handbook will also include the company\u2019s sexual harassment and nondiscrimination policies, an explanation of procedures including breaks and scheduling principles, a list of benefits for part- and full-time employees, a breakdown of disciplinary policies and grounds for dismissal, as well as rules concerning phone, fax, mail, Internet use, and the permissible use of company vehicles. The handbook will additionally contain information like the history and goals of the company, conflict of interest, bribes, and common sales conflicts. While all employee handbooks are slightly different, all include the guidelines and policies that define ethical behavior in that company or organization.\u00a0 A page out of IBM\u2019s employee handbook around gratuities or gifts looks like this:<\/p>\n

    \u201c<\/em>money from a supplier, customer, or anyone in a business relationship. Nor can they accept a gift or consideration that could be perceived as having been offered because of the business\u00a0<\/em>relationship. \u201cPerceived\u201d simply means this: if you read about it in your local paper, would you\u00a0<\/em>wonder<\/em>\u00a0whether the gift just might have something to do with a business relationship? No IBM employee can give money or a gift of significant value to a supplier if it could reasonably be viewed as being done to gain a business advantage. If an employee is offered money or a gift of some value by a supplier or if one arrives at their home or office, a manager should be informed immediately. If the gift is perishable, the manager will arrange to donate it to a local charitable organization. Otherwise, it should be returned to the supplier. Whatever the circumstances, the\u00a0<\/em>employee or the manager should write the supplier a letter, explain IBM\u2019s guidelines on the\u00a0<\/em>subject<\/em>\u00a0of gifts and gratuities. Of course, it is an accepted practice to talk business over a meal. So it is perfectly all right to occasionally allow a supplier or customer to pick up the check. Similarly, it frequently is necessary for a supplier, including IBM, to provide education and executive\u00a0\u00a0<\/em>briefings<\/em>\u00a0for customers. It\u2019s all right to accept or provide some services in connection with this kind of activity\u2014services such as transportation, food, or lodging. For instance, transportation in\u00a0<\/em>IBM<\/em>\u00a0or<\/em>\u00a0supplier<\/em>\u00a0planes to and from company locations, and lodging and food at company facilities are all right. A violation of these policies may result in termination. \u201c<\/em>(Snoeyenbos, Almeder, & Humber, 2001. p.133).<\/p><\/blockquote>\n

    A\u00a0conflict of interest<\/em>\u00a0is\u00a0\u201ca situation in which a person, such as a public official, an employee, or a<\/em><\/p>\n

    professional,<\/em>\u00a0has<\/em>\u00a0a private or personal interest sufficient to appear to influence the objective exercise of his or her official duties<\/em>.\u201d (McDonald, 2007). There are four types of conflicts of interest that you may encounter in your career: family interests, gifts, private use of employer property, and moonlighting.<\/p>\n

      \n
    • Family interests create a conflict when a relative of yours is either someone from whom you might purchase goods or services for your employer or when you have influence over the potential hiring of a family member of yours. It\u2019s best to avoid these types of situations as it can be difficult to make an objective decision.<\/li>\n
    • Gifts create a conflict of interest when they are given to you by someone with whom you do business. Gifts are frequently given at the holidays and may include something small like a case of wine or something more extravagant like a trip.<\/li>\n
    • Private use of employer property can be anything from stealing pens to using your work computer to work on editing your vacation pictures to driving the company car on a weekend getaway and then reporting the mileage on a corporate expense report.<\/li>\n
    • Moonlighting is holding down a second job. While that might not sound insidious at first, if you work two jobs in the same field, it is almost inevitable that you will run into ethical problems. Who gets your best ideas? Where does most of your energy go? Moreover, if you have inside knowledge of two different corporations, working not to let that information influence you will be terribly difficult.<\/li>\n<\/ul>\n

      A bribe, according to Merriam-Webster, is \u201cmoney<\/em>\u00a0or favor given or promised in order to influence the judgment or conduct of a person in a position of trust; something that serves to induce or influence.\u201d<\/em>\u00a0(Bribe, 2009). \u00a0Soliciting, accepting, offering, or giving a bribe is illegal\u2014even if your offer is refused, you are committing a crime. Bribery can take place in many different venues. Pharmaceutical companies attempt to persuade doctors to prescribe their products by buying them meals and giving them pens and other trinkets as well as trips to medical conventions. Business gifts are considered a form of bribery when they are given by someone who could benefit from having influence on a decision maker. For example, if you are the buyer of electronics at Wal-Mart, you are not able to accept any gifts from vendors or prospective vendors as it might appear to influence your buying decisions for the chain.<\/p>\n

      A noncompeting agreement (sometimes called a covenant not to compete, or CNC) prevents an employee from entering into competition with the employer once his job has ended\u2014in other words, it prevents you from taking a job with a competitor after you\u2019ve quit or been fired. A noncompeting agreement may also prevent former employees from starting their own businesses in the same field. The reasoning behind the CNC is the fear that a former executive could take his insider knowledge and trade secrets\u2014as well as his contacts\u2014with him to a new position. No employer wants to expose its strategy to its competitors.<\/p>\n

      What Is Whistle-Blowing?<\/h2>\n

      Jeffrey Wigand, former head of research and development for Brown & Williamson Tobacco Corporation (the third-largest tobacco company in the United States), is one of the most famous whistle-blowers in America. He says of himself, \u201cThe word whistle-blower suggests that you\u2019re a tattletale or that you\u2019re somehow disloyal. But I wasn\u2019t disloyal in the least bit. People were dying. I was loyal to a higher order of ethical responsibility.\u201d<\/em>\u00a0(Salter, 2007). Wigand\u2019s testimony against the tobacco industry, his claims that executives at Brown & Williamson knew that cigarettes were addictive, lied about it under oath, and destroyed documents related to that fact, led directly to the lawsuit brought by forty state attorneys general against tobacco companies. Whistle-blowing, the act of publicly exposing the misconduct of a company or organization, is a courageous act. Wigand\u2019s reputation was destroyed by a punitive smear campaign conducted by the industry he spoke out against, and the stress resulting from that and the trial destroyed his marriage. Brown & Williamson filed a lawsuit against him for revealing confidential company information (the suit was dismissed as a condition of the $368 billion settlement against the tobacco industry. (Wigard, 2009). \u00a0However, Wigand blew the whistle in order to save thousands of lives. The true story was made into a blockbuster movie in 1999 called\u00a0The Insider<\/em>.<\/p>\n

      Of course, whistle-blowing exists on a less grand scale. Whistle-blowing doesn\u2019t always involve risking your life, and it doesn\u2019t always involve bringing a corporation to its knees. At its heart, it is action taken to reveal wrongdoings in hopes of seeing justice done.<\/p>\n

      Ethics and the Law<\/h2>\n

      The ever-changing landscape of technology has created new opportunities to test ethics; spammers, scam artists, and identity thieves have created the need to clearly define legal, and in some cases, ethical behavior online. An increasing number of cases of fraud committed via social networking sites have taken place. There have been cases of people who create Twitter profiles in the names of other, real people.<\/p>\n

      News anchor Keith Olbermann and Tony La Russa, manager of the St. Louis Cardinals, have both been victims of such hoaxes (Citron, 2009). If tempted to such behavior yourself, remember: you are what you tweet. Your reputation will be affected by all the things that you do\u2014make sure that you\u2019re making yourself look good. \u00a0(This will be covered in more detail in a future chapter.)<\/p>\n

      Culture and Ethics<\/h2>\n

      When you are working in a different country, or with professionals from other cultures, there may be different ideas as to what is appropriate and ethical. The Japanese, for example, have a culture of corporate gift giving;\u00a0kosai hi<\/em>\u00a0(literally \u201cexpense for friendly relations\u201d) (Lafayette de Mente, 2004) refers to the Japanese business practice of maintaining large expense accounts used for entertaining clients and nurturing other professional relationships. This money is, for example, often used to buy golf club memberships as gifts for people with whom Japanese businessmen and women have valuable working relationships. When you come face-to-face with these different customs, it is important not to be insulting, but you also cannot ignore your company\u2019s policies. \u201cWhen in Rome\u201d will only carry you so far. A good rule of thumb is this: if you wouldn\u2019t be comfortable telling your boss about it, or if you\u2019d be embarrassed to tell your mom about it, don\u2019t do it. If you are working for a company that does business in more than one country, odds are they will have a liaison from each country that can help you to navigate the intricacies of cultural difference.<\/p>\n","protected":false},"author":284,"menu_order":3,"template":"","meta":{"pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[49],"contributor":[],"license":[],"class_list":["post-273","chapter","type-chapter","status-publish","hentry","chapter-type-numberless"],"part":176,"_links":{"self":[{"href":"https:\/\/pressbooks.bccampus.ca\/thepowerofselling\/wp-json\/pressbooks\/v2\/chapters\/273","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pressbooks.bccampus.ca\/thepowerofselling\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/pressbooks.bccampus.ca\/thepowerofselling\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/thepowerofselling\/wp-json\/wp\/v2\/users\/284"}],"version-history":[{"count":2,"href":"https:\/\/pressbooks.bccampus.ca\/thepowerofselling\/wp-json\/pressbooks\/v2\/chapters\/273\/revisions"}],"predecessor-version":[{"id":520,"href":"https:\/\/pressbooks.bccampus.ca\/thepowerofselling\/wp-json\/pressbooks\/v2\/chapters\/273\/revisions\/520"}],"part":[{"href":"https:\/\/pressbooks.bccampus.ca\/thepowerofselling\/wp-json\/pressbooks\/v2\/parts\/176"}],"metadata":[{"href":"https:\/\/pressbooks.bccampus.ca\/thepowerofselling\/wp-json\/pressbooks\/v2\/chapters\/273\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/pressbooks.bccampus.ca\/thepowerofselling\/wp-json\/wp\/v2\/media?parent=273"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/thepowerofselling\/wp-json\/pressbooks\/v2\/chapter-type?post=273"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/thepowerofselling\/wp-json\/wp\/v2\/contributor?post=273"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/pressbooks.bccampus.ca\/thepowerofselling\/wp-json\/wp\/v2\/license?post=273"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}