Ethical sales practices

Clearly defining and communicating a code of ethics and code of conduct for selling will help your business meet its ethical selling obligations. Demonstrating ethical sales practices is good business - it helps earn the trust and loyalty of your customers and strengthens your reputation.

Developing a code of ethics

Developing a code of ethics for your business helps build a culture of ethical selling. Your code of ethics might simply be a statement of principles defining the way you operate, make decisions and treat your customers, suppliers and industry peers. For example, your code of ethics might include statements such as:

• We recognise that what we do is more important than what we say.
• We give our customers and suppliers honest, accurate information.
• We make sure our customers' purchasing decisions are based on their preference, not our pressure.
• We sell our customers products today that will encourage them to return to us tomorrow.
• We give our suppliers every opportunity to build long-term, loyal relationships with our business.
• We compete in our market by building our own reputation, not by damaging the reputation of our competitors.

Developing a code of ethics will also help you create your own code of conduct for selling.

Developing a code of conduct for selling

Many businesses develop codes of conduct for ethical selling and train their sales staff to follow them closely. Codes of conduct are designed to:

• describe desirable and undesirable selling behaviours
• promote high standards of practice
• reduce the risk of fair trading breaches
• help staff make ethical decisions.

Write your code of conduct with your staff and customers in mind, clearly setting out the purpose and structure of the document:

Template for a sales code of conduct document

Your code of conduct can include the following information:

• overview - outlining why you have created the document and what it will do
• statement of business values - including your code of ethics
• ethical conduct sections
  • soliciting customers - identifying appropriate steps for finding and approaching customers
  • communicating with customers - stating communication principles that will guide your business's range of interactions with customers and industry
  • pricing - identifying ethical approaches to product pricing
  • handling complaints and conflicts - listing the principles that support your complaints handling policy and principles for resolving conflicts
  • lay-by agreements - stating terms for lay-by agreements with customers
  • selling methods - setting out appropriate selling steps and methods
  • bills and accounts - stating your commitment to providing proof of transactions
  • warranties, refunds and repairs - identifying product or service guarantees you make to your customers
• procedures for identifying and responding to code of conduct breaches
• additional information - listing contacts and sources for more information.

Remember to use examples or scenarios in describing ethical practices so that your staff understand clearly what you expect of them.

Also consider...

• Learn more about customer service.
• Find out about ethical ways to manage customer complaints.
• Read about how to manage online customer reviews.
• Learn good ways to resolve disputes with other businesses.
• Find out about business requirements under trade measurement laws.