Ethics and medical representatives-part 4

SALESPERSON AND COMPANY

 Because salespeople’s activities in the field cannot be closely monitored, their employers trust them to act in the company’s best interests. Professional medical salespeople do not abuse this trust. They put the interests of their companies above self-interest. Taking this perspective may require them to make short term sacrifices to achieve long-term benefits for their companies and themselves. Some problem areas in the salesperson-company relationship involve expense accounts, reporting work-time information and activities, and switching jobs.

 Expense accounts

 Many companies provide their salespeople with cars and reimburse them for travel and entertainment expenses. Developing a reimbursement policy that prevents salespeople from cheating and still allows them the flexibility they need to cover their territories and entertain customers is almost impossible. Moreover, a lack of tight control can tempt salespeople to use their expense accounts to increase their income. To do their jobs well, salespeople need to incur expenses. However, using their expense accounts to offset what they consider to be inadequate compensation is unethical.

A salesperson who cannot live within the company compensation plan and expense policies has two ethical alternatives:

 (1) persuade the company to change its compensation plan or expense policy or

(2) find another job.

 In using the company’s expense account, you should act as though you are spending your own money. Eat good food, but don’t go to the most expensive restaurant in town. Stay in clean, comfortable, safe lodgings, but not in the best hotel or the best room in a hotel. When traveling, you should maintain the same standards of living and appearance that you do at home. . Employers expect their salespeople to work full time. Salespeople on salary are stealing from their employers when they waste time on coffee breaks, long lunches, or unauthorized days off. Even salespeople paid by commission cheat their companies by not working full time. Their incomes and company profits both decrease when salespeople take time off.

Reporting work-time information and activities

 Employers expect their salespeople to work full time. Salespeople on salary are stealing from their employers when they waste time on coffee breaks, long lunches, or unauthorized days off. Even salespeople paid by commission cheat their companies by not working full time. Their incomes and company profits both decrease when salespeople take time off. To monitor work activities, many companies ask their salespeople to provide daily call reports. Most salespeople dislike this clerical task.Some provide false information, including calls they never made. Giving inaccurate information or bending the truth is clearly unethical. A failure to get an appointment with a customer is not a sales call. Providing a brief glimpse of a product is not a demonstration.

 Switching jobs

 When medical representatives decide to change jobs, they have an ethical responsibility to their employers. The company often makes a considerable investment in training salespeople and then provides them with confidential information about new products and programs. Over time, salespeople use this training and information to build strong relationships with their customers. A salesperson may have good reasons to switch jobs. However, if a salesperson goes to work for a competitor, she or he should not say negative things about the past employer. Also, disclosing confidential information about the former employer’s business is improper.

The ethical approach to leaving a job includes the following:

• Give ample notice. If you leave a job during a busy time and with inadequate notice, your employer may suffer significant lost sales opportunities.

 • Offer assistance during the transition phase. Help your replacement learn about your customers and territory.

• Don’t burn your bridges. Don’t say things in anger that may come back to haunt you. Remember that you may want to return to the company or ask the company for a reference in the future.

To be effective, medical representatives need to work together with other salespeople. Unethical behavior by salespeople toward their co-workers, such as engaging in sexual harassment and taking advantage of colleagues, can weaken company morale and have a negative effect on the company’s reputation. I would emphasize on these aspects in the next blog…