Unethical Behavior of Sales Agents

In: Business and Management

Submitted By gabibacana
Words 2552
Pages 11
A Literature Review of Unethical Behavior of Sales Agents
Marilia Gabriela Vieira De Melo
Franklin Pierce University

Table of Contents
Introduction …………………………………………………………………………

Business ethics has many issues that are relevant in many aspects of business. This type of behavior begins mostly because of the relationship between the salesperson and the buyer or buying organization. That relationship can be led by a great ethical attitude which will create a nice environment and a good brand image or by an unethical behavior that may do the opposite along with the time. Unethical behavior are a type of issue in the business world that sales agent probably see as the easiest way to go in the sales moment. Sales agent have to make decisions in the rush or pressure of a sales moment in response to customers, demands, and competitive offers which may end up creating a tendency for ethical conflicts. Ethical and unethical behavior affects customers and companies directly but there is different type’s ways suggested by studies to prevent and keep ethical behavior.
In the article “Ethical Salesperson behavior in Sales Relationship” the authors Hansen & Riggle agree that ethics deal with “ moral judgments, standards, and rules of conduct, comprises a moral code of conduct governing individuals and societies in determining what is right or wrong”. The authors complete it saying that “ethical behavior in the sales relationship context denotes behaviors on the part of the salesperson that promote the welfare of the customer” (p.152).
According to the same article sales agent that behave in an ethical manner usually are honest in everything that they say, regularly they will sell only those products and services they believe that will benefit the customer, promise only things that they can get done according to what was said, and keep customer…...

Similar Documents

Impact of Unethical Behavior

...Impact of Unethical Behavior Article Analysis ACC/291 Principles of Accounting II September 18, 2012 Thomas House Impact of Unethical Behavior Article Analysis Reporting financial statements within a business or company is more than a must; it is a necessity to keep ones business up and running. If one were to report false information on any kind of financial statements it then could be costly for the company or business. This is known as unethical behavior in accounting. The unethical behavior in accounting would be to mislead financial analysis for personal gain, misuse of funds, overstating revenue, overstating the value of corporate assets, or even underreporting the existence of liabilities. The purpose of the Sarbanes-Oxley act is to, “Protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes.” ("Sarbanes-Oxley Essential Information", 2003-2012). The Sarbanes-Oxley act was named after senator Paul Sarbanes and Representative Michael Oxley. Sarbanes and Oxley drafted the Sarbanes-Oxley act of 2002; both wanted to make sure that any business or corporation would be held accountable for wrongdoings. Enron would be sure to be held accountable. Enron Corporation Enron Corporation was an American energy company located in Houston, Texas. Enron employed nearly 21,000 people and was one of the world’s leading electricity, natural gas, pulp and...

Words: 541 - Pages: 3

Unethical Behavior

...Effects of Unethical Behavior Article Analysis ACC/291 Principles of Accounting II (AXIA) November 12, 2012 Effects of Unethical Behavior Article Analysis The impact of unethical accounting behavior can be devastating, often leading a company to closure or bankruptcy. Some examples of internal unethical accounting practices include under and overstatement of expenses, revenue, liabilities, and corporate assets, misuse of capital (possibly for personal gain), etc. Examples of external unethical practices would include fraud regarding trade and investment, bribery, and kickbacks, and manipulation of financial market regulations. Enron Corporation is one of several companies who have committed unethical and illegal accounting actions. Enron started in the 1990s in Houston, Texas. This American company concentrated on the energy sector. In the highlights of Enron’s success, it has about 21,000 employees and considered the leading supplier of electricity, natural gas, communication, and paper. Enron’s perceived success was a mask for the cast schemed fraud called the “Enron Scandal” (Kadlee et. al. 2002). Enron Corporation not only committed financial fraud but also may have been brining people for contracts on South America. Later, this accumulated, and reports started to appear regarding the fishy accounting structure of Enron and its partner in crime, Arthur Anderson (accounting firm). Consequently, Enron resulted in bankruptcy. This bankruptcy would be the...

Words: 614 - Pages: 3

Unethical Behavior

.... However, there are times when unethical behavior and practices are displayed in the accounting profession, particularly when the bookkeeper is working in favor of the business. This can promote fraudulent activities within the business that can result in the company losing finances, facing legal responsibility, possibly losing the confidence of the public, investors, and stakeholders. Accountant professionals have an established set of guidelines that provides them with a compass that directs them toward ethical behavior. An accountant job is to provide accurate and true information about the company’s lifecycle without attempting to alter financial results in favor of the company or using aggressive accounting that uses falsified information. Some accountants may attempt to use methods that are questionable to try to boost results for the company. They can achieve this act by recording revenues and expenses incorrectly or omitting expenses altogether are sure examples of unethical accounting behavior and practices. One of the main examples of unethical accounting happens commonly when an organization is being audited. The company will offer the accountant more money to overlook or fail to report violations the business is making. Many times corrupt agents may purposely overlook or not try hard enough to find defilements with the company due to usual monetary bribery. When deciding on becoming an accountant you take an oath to assume the responsibility and...

Words: 694 - Pages: 3

Effects of Unethical Behavior

...Effect of Unethical Behavior Article Analysis University of Phoenix Principles of Accounting 2 ACC/291 May 27, 2012 Effect of Unethical Behavior Article Analysis In this paper I will identify situations that might lead to unethical practices and behavior in accounting. I will also examine the effects of the Sarbanes-Oxley Act of 2002 on financial statements. Since the Enron scandal at the end of 2001 there have been several reports of unethical practices as well as poor behavior. So what exactly leads someone to report false information? In most cases that I have seen it usually begins with minor accounting infractions. When companies don’t perform well financially, stock holders may lose millions of dollars on their investments. The person in charge may decide to falsify the figures when reporting them to insure their position within their company. I believe the feel they can correct the numbers before anyone would notice. On the other hand, some CEO’s and financial officers are make bonuses and profits when they show how well a company is doing. Their own personal greed is the only thing that concerns them no matter how well the company is doing. It might be several top executives involved to just a couple of individuals, however the people who pay for their unethical decisions are the stock holders, employees and the public. The Sarbanes-Oxley Act was enacted July 29, 2002 and was named after U. S. Senator Paul Sarbanes and U. S. Representative...

Words: 438 - Pages: 2

Effects of Unethical Behavior

...Effect of Unethical Behavior Article Analysis Chris May 6, 2013 Acc 291 Judith Vargas University of Phoenix I am going to explain in this paper some situations that might lead to unethical accounting and how we can identify some of the unethical practices in accounting. In an article that I read it talked about how when the economy is down that a lot of companies enforce ethics and make their ethical policies even better, but at the same time the article also states that when the economy is booming does it relax it ethical policies and let things pass. The Sarbanes-Oxley Act (SOX) has greatly helped to make company’s financial statements a lot better in making sure the companies are reporting all their earnings and expenses and so forth. The goal of SOX was to make companies and employees behave ethically; however, whether that has worked or not is questionable. Many argue that the implementation and ongoing requirements of Sarbanes Oxley and other laws are costly, time consuming, and as yet ineffective. Some say that SOX, “in many instances law has at best led to a culture of compliance rather than a culture of integrity. Even more disappointing is that too often the very activities Sarbanes Oxley were designed to prevent continue to slip past regulators until it is too late and the damage incurred (Hazels 2010)”. Some signs that I can think of, of a company being unethical is that they are struggling to pay back debts and these debts are not...

Words: 410 - Pages: 2

Unethical Behavior Article Analysis

...Wal-Mart Vs. Amazon University of Phoenix ACC 291 Principles of Accounting II Wal-Mart vs. Amazon. Who do you think might win? Well, these are two of the nation’s largest retailers. Wal-Mart mainly sells in-store while all of Amazon’s sales happen online. So why could this competition between two of the largest retailers cause unethical practices and behavior in accounting? Wal-Mart is “considering using its own shoppers as delivery people, providing some kind of incentive to drop off online orders on their way home from the store.” (Heller, 2013) However, this has way too many unknown variables and implications such as taxes and accounting techniques. For example, how would you account for a loss of merchandise for a customer who instead of delivering the product on the way home decided to keep it for him or herself? What adjusting entries would have to be made and where? Wal-Mart could be tempted adopt unethical accounting practices to keep up with Amazon’s booming sales. Most of Amazon’s sales already come with free shipping. Wal-Mart offers free delivery to one of their locations where the customers pick up their merchandise, but not free shipping. Greed and opportunity might lead to either Wal-Mart or Amazon to get involved in unethical accounting practices. This is especially true if an accounting lie could give an edge over the competition. Ignorance in accounting cannot be used by either Wal-Mart or Amazon because these are two large corporations and they...

Words: 593 - Pages: 3

Effect of Unethical Behavior

...Effect of Unethical Behavior Christina Canfield August 4, 2013 ACC/291 Vanessa J. McCall Effects of Unethical Behavior In 2002 the congress passed the Sarbanes-Oxley Act. The first thing is to understand what the Sarbanes-Oxley Act is and what it does. This paper will also view one article about the Sarbanes-Oxley Act. To see how the Sarbanes-Oxley Act effect companies this paper will discuss the environment of firms before the act was passed. The question this paper will address it how the Sarbanes-Oxley Act affects auditing firms. The Sarbanes-Oxley Act was created to keep accountants firms and businesses honest with accounting documents. According to Jelinek, K., & Jelinek, R. (2010) article there are six specific sections within the Sarbanes-Oxley Act that effect just the client’s role as a buyer and the audit firm’s role as a seller. The six specific sections are 201: Prohibited Auditor Activities, 203: Audit Partner Rotation, 204: Auditor Reports to Audit Committees, 206: Conflicts of Interest, 301 Public Company Audit Committees, and 407 Disclosure of Audit Committee Financial Expert. Each of these affects the auditor’s relationship with the company they are auditing and the other way around. Before the Sarbanes-Oxley act the accounting firm’s environment was configured to the firm’s perspectives on how best to approach the auditor-client exchange. The audit firms were also sale-oriented. Because the audit firms were sales-oriented the firms would...

Words: 375 - Pages: 2

Unethical Consumer Behavior

... unethical behavior without knowing they are performing this illegally. Consumers that pirate materials are punishable by law. Another unethical consumer behavior is shop lifting. Shoplifting costs businesses millions annually. This action is not only illegal but it also costs other consumers inflated costs. The more that is taken from a business the higher prices the business must charge to other consumers. Tag switching is an action that is unethical consumer behavior. Tag switching is stealing and is illegal. The switching of tags will allow a consumer to pay a reduced price for an item. This also costs businesses money because of an immediate loss of sales profits. Consumers who switch tags are looking to create a more honest look to shoplifting. Another unethical consumer behavior is the switching of size tags. This may seem to the consumer to be ok but it is not ok. When consumers switch sizes it affects the inventory accuracy of the business. If the business does not have the correct sizes than it may mislead another consumer will cause the business to lose sales. The intentional damaging of items so the consumer can return the items to the store for a refund is also unethical consumer behavior. Consumers may purchase a product and take something from the box and then return the product as unopened to receive a full refund on the item while actually taking what the consumer needed from the box. This action costs businesses money as they are required to return......

Words: 736 - Pages: 3

Unethical Behavior

...Unethical Behavior ACC/291 Unethical Behavior Unethical accounting practices in business can take place for many varied reasons. The leading factor according to a study conducted for the American Management Association (AMA),is “pressure from management or a Board of Directors to meet unrealistic business objectives or deadlines” (Accountingweb, 2006). If the person preparing the financial documents for a company feels their job may be in danger if certain goals are not met they may alter the documents to reflect the desired numbers. The individual preparing the statements may also feel that the appearance of success may reflect well on them personally, thus advancing their standing in the eyes of the Board of Directors. Another reason someone may behave unethically is simple greed. Stealing money that may be seen as insignificant can be a temptation to some. The idea that stealing from a corporation is somehow different than stealing from an individual may be another rationale some people use to convince themselves that the behavior is somehow less unethical. Greed may also come into play if the person preparing the documents is the owner of the company. They may want to make their company appear more desirable to potential investors, thus making their company worth more money. The reason for unethical behavior may also stem from what on the...

Words: 452 - Pages: 2

Unethical Behavior Paper

...Unethical Behavior Paper Throughout history, criminal activity has been a concern for American citizens. But with advancements in technology, the types of criminal activities from the past have changed from breaking-and-entering and robbery at gunpoint, to complete identity theft, fraud, and robbery without lifting a finger via electronic manipulation of banking systems. To help battle these new criminal activities caused by advancements in technology, Congress passed the “Electronic Funds Transfer Act of 1978”, which establish consumer rights and protections when transferring funds via electronic systems. According to "Federal Deposit Insurance Corporation" (n.d.), “the purpose of this title to provide a basic framework establishing the rights, liabilities, and responsibilities of participants in electronic fund and remittance transfer systems. The primary objective of this title, however, is the provision of individual consumer rights” (Electronic Funds Transfer Act). With the establishment of the Electronic Funds Transfer Act of 1978, a new standard was established to protect consumers from theft and illegal monetary transfers from accounts. The act established accountability and liabilities for both consumers and banking institutions to hold parties accountable for funds transfers and illegal accounting activities. Further measures were taken to restrict criminal activities with the establishment of the Computer Fraud and Abuse Act of 1986. The act establish guidance...

Words: 416 - Pages: 2

Unethical Behavior

...Running head: IMPACT OF UNETHICAL BEHAVIOR ARTICLE ANALYSIS Impact of Unethical Behavior Article Analysis Donna Sutton University of Phoenix Financial Accounting II ACCT 363 VERN May 09, 2010 Impact of Unethical Behavior Article Analysis The impact of the financial crisis created by such companies as Enron gave a reason for Congress to address some of the unethical practices of accountants. The American public no longer trusted accountants after losing retirements and life savings after making investments in companies that were reporting false financial statements. President George Bush signed the Sarbanes-Oxley Act into law in 2002 to try to avert any future dealings of an unethical nature (Dummies.com) The Sarbanes Oxley Act states that companies must enact internal controls to counteract fraud, deceit and wrong doing by its auditors, CEO’s, financial personnel, and accountants when reporting the financial statements for their companies. CEO’s can no longer say they were unaware of deceitful financial statements. They will be held responsible for the company’s financials and also be penalized. This act will prevent companies from reporting inaccurate financial statements to the public and allow Americans to make informed investment decisions from accurate financial statements. Confidentiality is a huge concern for clients of companies. This issue was addressed in Ruling 112. A client is now given the choice of sharing their information with other...

Words: 417 - Pages: 2

Unethical Behavior

...Phase 3 DB Illegal and unethical practices in our business world are something that goes far beyond anything that is reported in the news. We need to be holding the people who are in positions of power and influence to a much higher level of accountability for the unethical actions they perform. The United States is looked upon as a leader in the world, or at least we used to be. We as a nation trust the people that we elect to be acting with the highest level of integrity and ethics that we know. But of course this doesn’t just go for our elected officials, but for individuals who are looked up to by millions, such as our sports athletes, or our entertainers, alike singers. When I say the name Brett Favre, what do you think? Powerful? Incredible Athlete? Devoted Team Member? Honorable, Faithful Husband? Maybe all of the above? I have always been a huge fan of the NFL and continue to be a loyal fan of the Patriots and the Packers. Brett Favre has proven to be a leader among any of the teams in the NFL, leading the Packers to eight division championships (1995, 1996, 1997, 2002, 2003, 2004, 2007, 2009), five NFC Championship Games (1995, 1996, 1997, 2007, 2009), and two Super Bowl appearances (Super Bowl XXXI, Super Bowl XXXII), winning one (Super Bowl XXXI). Favre is the only quarterback in NFL history to throw for over 70,000 yards, over 500 touchdowns, over 300 interceptions, and over 10,000 pass attempts. (Brett Favre, N.D) WOW!! Wouldn’t we all agree that he is a...

Words: 1048 - Pages: 5

Unethical Behavior

...Effect of Unethical Behavior Denek Waller ACC/291 – Principles of Accounting II July 25, 2012 Malcolm Mumford Companies prepare the statement of cash flows differently from the three other basic financial statements. First, it is not prepared from an adjusted trial balance. It requires detailed information concerning the changes in account balances that occurred between two periods. An adjusted trial balance will not provide the necessary data. Second, the statement of cash flows deals with cash receipts and payments. As a result, the company must adjust the effects of the use of accrual accounting to determine cash flows. The information to prepare this statement usually comes from three sources: • Comparative balance sheets, indicates the amount of the changes in assets, liabilities, and stockholders’ equities from the beginning to the end of the period. • Current income statement, helps determine the amount of cash provided or used by operations during the period. • Additional information, includes transaction data needed to determine how cash was provided or used during the period. (Kimmel, P.D. Weygand, J.J. & Kieso, D.E., 2009) A company must convert net income from an accrual basis to a cash basis. The indirect method adjusts net income for items that do not affect cash. Companies favor the indirect method for two reasons: (1) It is easier and less costly to prepare, and (2) it focuses on the differences between net income and net cash...

Words: 461 - Pages: 2

Impact of Unethical Behavior

...Impact of Unethical Behavior The business I decide to analyze is WorldCom. This corporation establish in Mississippi had documented that for some years it’s been ballooning or rising their earnings during booking about $3.8 billion everyday expenditure as long-term savings rather than expenses. They did that by redistribution operating expenses for instance salaries plus wages as long-term savings on the equalize sheet whereas those costs ought to have been posted and expensed to the proceeds statement. When they perform that, they exaggerated assets while enormously minimize expenses. This escort to an exaggeration of net profits; the corporation then cheapen such expenditure which guide cash flows, net income and profit margins to be pretentiously pumped up. Given the information that these are key procedures employed to appreciate the business’s stock, the company’s stock was highly expensive. If I were an accountant at WorldCom, I might have considered such payout as standard operating expense. If I were enforced by management to make a fuss of such unethical behavior, I would see myself obligatory to have told the corporation to the authorities of this serious infringement of accounting ethics, and I would not want to be part of such violations. WorldCom’s reaffirmation of profit had place the corporation in non-payment of bank agreements. Such non-payment resulted in lend being entitle for instant imbursement. WorldCom’s economic tribulations made it unfeasible......

Words: 279 - Pages: 2

Unethical Behavior

...Impact of Unethical Behavior Several key concepts of ethics in accounting and financial decision-making are trust, confidentiality, collaboration, and a code of ethics. Trust and confidentiality go hand-in-hand in business accounting because trust is essential if a company wants loyal customers. Confidentiality is also an integral aspect of financial dealings because privacy is often a concern for many companies and customers. Collaboration is another area of financial decision-making that is relevant because ethical practices promote collaboration. A code of ethics is necessary in accounting and financial decision-making because it provides guidelines and standards for employees on all levels. The Sarbanes-Oxley Act of 2002 was passed in response to the financial scandals such as Enron and WorldCom, and it inevitably had a strong impact on accounting and financial decision making. This law required publicly traded companies to be much more accountable for their finances. The Sarbanes-Oxley Act set new regulations and penalties for public companies to provide investors with security. This act also caused the creation of the Public Company Accounting Oversight Board, or PCAOB, which is in charge of overseeing, regulating, inspecting, and disciplining accounting firms in their roles as auditors of public companies. This new law impacted accounting and financial decision making, because it required companies to be responsible for their financial decisions. It also regulated......

Words: 323 - Pages: 2