CHAPTER 3 -

ETHICS: THE FOUNDATION FOR RELATIONSHIPS THAT CREATE VALUE

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01

The CPSA Sales Institute Code of Ethics includes all of the following needs except the need to

and protect confidential information.

continually upgrade product, industry, and selling skills knowledge.

use time and resources for legitimate business purposes only.

Answers 1 and 3 are correct.

All of the above

02

Today many business firms are struggling to align their values, ethics, and principles with

expectations of their customers.

profit.

the expectations of shareholders.

the expectations of their salespeople.

the expectations of their salespeople and their customers.

03

Employees involved in unethical behaviour often report that they

did not care if their actions were illegal.

were under pressure to act unethically and illegally.

decided on their own to be unethical.

knew their behaviour was wrong but did it anyway.

did not realize their behaviour was wrong.

04

Which of the following represents a half-truth that has influenced the erosion of moral character in business settings?

We are only in it for ourselves.

Corporations exist to maximize shareholder value.

Companies need to be lean and mean.

All of the above

None of the above

05

Ethical conduct of salespeople can be aided in distinguishing right from wrong by the following factors:

laws, company policies, values, attitudes, and client behaviour.

senior management, company policies, laws, and suppliers.

product, company policies, laws, values, and attitudes.

competition, management, company policies, laws, and personal values.

laws, company policies, company role models, and personal values.

06

Slander

is an unfair and untrue oral statement that is not illegal.

is an unfair and untrue written statement that is illegal.

is an unfair and untrue oral statement that is illegal.

is an unfair and untrue written statement that is not illegal.

None of the above

07

How are values, behaviour, and attitude related?

Values lead to behaviour; behaviour leads to attitude.

Behaviour leads to values; values lead to attitude.

Values lead to attitude; attitude leads to behaviour.

Attitude leads to behaviour; behaviour leads to values.

Attitude leads to values; values lead to behaviour.

08

Which person has the primary responsibility to give ethical guidance to salespeople?

Other salespeople

Human resources manager

CEO

Sales manager

Corporate attorney

09

When a salesperson's values conflict with his or her employer's, one choice is to

not compromise on his or her values and be prepared to deal with the consequences.

voice strong opposition to the unethical practices.

ignore his or her values and act unethically.

All of the above

None of the above

10

One general principle to serve as a foundation for a personal code of business ethics is

always do what is best for you.

always do what your supervisor tells you to do.

be honest with yourself and others.

keep your values to yourself.

do whatever seems right at the time.

11

There is one uniform code of ethics for all salespeople.

True

False

12

Fulfilling commitments builds trust in relationships.

True

False

13

ANewsweeksurvey suggests that there is a growing intolerance for cheating and deceptive behaviour.

True

False

14

In the field of selling, there are very few situations that will challenge your ethics.

True

False

15

Salespeople often receive confidential information from customers.

True

False

16

Reciprocity should be a part of every business relationship.

True

False

17

Salespeople who sell products in foreign markets need to know that giving bribes is viewed as an acceptable business practice in some cultures.

True

False

18

All public companies in Canada must have a "no gift" policy in accordance with the law.

True

False

19

Since salespeople are not legal representatives of their company, they do not have to be worried about the ramifications of signing written contracts.

True

False

20

Trust in transactional sales is focused on the product.

True

False

21

What does the effectiveness of company policies as a deterrent to unethical behaviour depend on?

22

What are the differences between slander, libel, and disparagement?