Ethical dilemmas in sales?

Before we start, I was advised to put out a disclaimer first. So here we go: "The following content represents my personal opinion and should be interpreted as such. My views do not necessarily reflect those of any organization, group, or entity with which I may be affiliated." With that done, let's move on....

So, what prompted me to write this article? Watching an ad on TV a few weeks back and muttering to myself "WHAT A LOAD OF BULLSH@T!!!".

The ad had to do with happy cows on lush green pastures. Butterflies flying around. Birds chirping. Basically, telling the world how well the cows are being treated. And, of course telling us what a wonderful life the cows are living. All resulting in an amazing yoghurt. The best yoghurt eveeerrrr!

For the record - I'm not a vegetarian! But, I was seriously put off by the bullsh*t. Isn't it time we had less BS in ads? Wouldn't a bit more truth on how we actually treat cows help us be more conscious? Eat less meat? Help us be more conscious of our natural resources? Isn't it the companies' responsibility to disclaim what's truly happening behind the scenes? To disclaim what the true cost of that yoghurt is? With that I don't mean the $$$ cost, I mean the toll it has on the environment, society, etc.

Anyway - thinking of that made me think of my own profession - SALES! Something I have been doing for a while. And being in that profession, I have faced the occasional ethical dilemma. Especially in the early years of my sales career.

To start with and right off the bat, SALES IS AWESOME! I love what I do! Nothing to be ashamed of! A profession that I will recommend to anybody that has the skills to do it.

Why? Simple reason....

Sales is an essential component of any business! Period. Without sales, there's no lifeblood that drives revenue and growth. Without revenue and growth there's no economy. And, without an economy there's no.... well, not much left to say.

However, the world of sales is not without its challenges. Ethical challenges, that is. No doubt, sales pros (sellers and managers, for that matter) at some point in their career have found themselves at a crossroad - making a decision that could yield into an ethical dilemma. To make things more interesting, on top of it there're multiple crossroads within a single sales cycle. Sort of multiple "Red Pill? Blue Pill?" instances as things progress.

I certainly faced challenging decisions that could have impacted my career, the company I worked for - and, of course the customers I served. But, thankfully the wisdom of others always helped me make the right decisions.

So let's delve into the "world of ethical dilemmas in sales". Let's explore the terrain where "profitability and morality" intersect - at least it's my attempt to do so ;).

And, we'll start with the cows on the pasture!!!! Again, what a crock of sh*t! [apologies for the repetition, but it got me worked up ;)].

Truth in Advertising

One of the most fundamental dilemmas in sales is the issue of TRUTH. Truth in telling how wonderful a product or service is. Fundamentally speaking, salespeople are tasked to promote their products or services. That's their job! It's the job description they signed up for.

But, where should they draw the line between being persuasive and deceptive? The answer [IMO] is super easy - exaggerating product capabilities or making false claims will only lead to short-term gains. In the long-run you will lose credibility. Pure and simple!

It all boils down to your credibility. If you care about it, then you will automatically consider the implications of your sales pitches. If you don't care about your credibility, you will (most probably) find yourself on a path of not doing the right thing. It will end up being a very short-lived thing.

The first crossroad is then ahead of you: Are you providing accurate information to potential customers or are you bending the truth to close a deal?

Striking the right balance between promoting the benefits of a product and being truthful is a constant challenge in the sales world. That's a fact.

Pressure to Meet Quotas

Where do I start? Obviously quotas are an integral part of the profession. Without quotas there's no drive to sell. And believe me, everything is attached to a quota or a target. Even the cup of yoghurt at the grocery store. If it's not moving off the shelf, then it get's canned. If it get's canned, that means sales targets are not being met. If targets are not being met, then heads roll - sales, marketing, distribution, R&D - you name it, but there will be a negative consequence if the yoghurt is not being bought.

So with that in mind, there's often an intense pressure on salespeople to meet their targets. This pressure can lead to ethical dilemmas. And, that's putting things nicely, because in most cases it leads to STUPID MOVES. This is the part where the people with wisdom come into play - putting you back on course. If you're surrounded by the right people then you're already on a good path.

Now you're potentially facing your second crossroad: You may be tempted to engage in aggressive or questionable tactics to close deals. If you're ever at that point - don't do it! Just don't! Listen to your gut. Or simply think of Robert di Nero's line in Ronin "Whenever there is any doubt, there's no doubt". [highly recommendable movie, BTW].

What does that means for sales managers and organizations? Tricky one! IMO, you need be mindful when setting quotas. You need to make sure you drive good behavior and at the same time you need to drive competition. Healthy competition - no cutthroat competition. There's a need for emphasis on quality over quantity - if that makes sense. At the end of the day, it all comes down to ethically sustainable growth.

Conflicts of Interest

No doubt, conflicts of interest can certainly pose significant challenges in sales. Sales pros often have relationships with multiple stakeholders, including their company, colleagues, customers, and suppliers. Balancing these relationships while making decisions that benefit all parties can be tricky.

Here comes crossroad #3 - you may be tempted to recommend a more expensive product to a customer - even if a cheaper option would be better. Simply because it yields a higher commission.

In a nutshell, and in order to have a long-term partnership with you customers, IMO you'll need to prioritize your customer's & the company's best interests first. Your financial gain always comes second. That's the only approach that will lead to trust. And, with trust comes more business.

Good leadership should always establish clear guidelines and codes of conduct that prioritize customer satisfaction and transparency in sales transactions.

Upselling and Cross-Selling

While upselling and cross-selling are common sales techniques, they can become ethical dilemmas when pushed to the extreme. Again, only when pushed to the extreme. Encouraging customers to buy additional products or services can be beneficial if they genuinely add value, but when done solely for the sake of increasing sales revenue, it can lead to dissatisfaction and mistrust. Again, something short lived.

Crossroad #4: You must carefully evaluate whether upselling or cross-selling is in the best interest of the customer or if it's being pushed for the company's financial gain. Transparency in presenting options and helping customers make informed decisions can mitigate ethical dilemmas in this area.

Conclusion

Ethical dilemmas in sales are a complex and an ever-present challenge. Sales pros are constantly navigating a fine line between promoting their products or services and maintaining the trust and well-being of their customers.

Companies also bear the responsibility! Establishing ethical guidelines and fostering a culture that prioritizes honesty, transparency, and customer satisfaction over short-term gains is key.

By addressing these dilemmas head-on, the sales industry can and will maintain its credibility and integrity. After all, we need revenue & growth.