Stop making excuses: reducing unethical behavior and improving performance and relationship quality

Abstract

ABSTRACT Purpose The premise of this article is to investigate the role of neutralization techniques by business-to-business salespeople as they influence ethical views and impact unethical behaviors, performance, and relationships. Research has previously noted the prevalence and impacts of excuse-making by individuals. Identified as neutralization techniques, these practices have been linked to salespeople in both academic and practitioner literature, but remain chiefly unexplored in terms of impacts on individual outcome measures. Methodology The data used in this research are from a sample of 240 business-to-business salespeople collected electronically by using the online platform of a national data broker. A scenario presented a typical sales activity previously determined to be unethical. The salespeople were asked to evaluate the level of harm (Moral Intensity) of an activity described in a scenario and indicate their agreement/disagreement with possible justifications (Neutralization techniques). The two most common types are denial of injury where the accused claims there is no harm resulting from the unethical act and appeal to higher loyalties which involves the unethical actor claiming the unethical behavior was committed on behalf of loyalty to some other party, rather than the norms guiding expected ethical behavior. Self-reports were made about their ethical/unethical behaviors, relationship quality with customers and estimates of their performance in their sales position. All constructs as shown in the Figure were combined in a structural equation model. SPSS/Amos software was used to conduct multivariate analysis. Confirmatory factor analysis was used to assess the measurement properties of each construct, while structural equation modeling was applied to evaluate the hypothesized relationships. Findings Moral intensity was found to directly reduce unethical behaviors as moderated by neutralization techniques (excuses). Unethical behaviors were negatively related to relationship quality and value enhancing behavior performance. The results from this study lend credence to ethical decision-making models and serve to extend our understanding of them, specifically as applied to business-to-business salespeople. In particular, we learn more about the role of neutralization techniques in affecting the ethical decision-making of salespeople. In terms of the theoretical contribution, this study explores a seller’s perspective of moral intensity, neutralization techniques, and important sales behaviors and outcomes to extend findings reported in previous studies. Previous research suggests that unethical behaviors by salespeople can negatively impact both their performance in creating customer value and the quality of their customer relationships. This study extends previous research as to how neutralization techniques may work in this process and relate salesperson unethical behavior negatively to relationship quality among a broader sample of business-to-business salespeople. Research Implications Our research strengthens the importance of moral intensity in ethical decision-making by finding it is negatively related to business-to-business salespeople’s unethical behavior. Salespeople’s “detachment” from the company does not appear to lessen the power of moral intensity in ethical decision-making within the organization. Excuses or neutralization techniques are found to moderate the relationship between moral intensity and unethical behavior such that excuses may reduce the perceived harmfulness or moral intensity and be less likely to dissuade unethical behavior. The salesperson who uses excuses for unacceptable behavior is less likely to let the seriousness of harm resulting from a behavior deter him or her from acting unethically. This study adds to our research regarding ethical decision-making by examining associated outcomes such as relationship quality and performance which have received little attention concerning ethical decision-making in business-to-business sales research. While salesperson behavior performance has received research attention, little focus has been placed specifically on factors considered by buyers as the most important activities salespeople can do to add value to a customer relationship (i.e., value enhancing behavior performance). While sound moral judgment will result in positive value enhancing behaviors, unethical behavior, presumably resulting from immoral judgment, is associated with lower levels of salesperson value enhancing behavior. Practical Implications The study makes a practical contribution through an improved understanding of how a seller’s ethical perspective relates to their use of excuses and their ethical behaviors, relationships and performance with customers. The findings underscore the importance of engaging in activities to reduce unethical behavior, which is critical given it can detrimentally affect relationship quality. Because unethical behavior may be perceived by some salespeople as a shortcut to achieve desired ends, organizations will benefit from taking steps to increase moral intensity perceptions and reduce the use of neutralization techniques to help salespeople understand the connection between what they may consider inconsequential indiscretions (e.g., misleading a customer on a delivery date; overpromising, etc.) and relationship quality, thus reducing the chances salespeople will commit such questionable acts. An improved understanding of business-to-business salespeople’s perspectives of the variables under study can potentially improve the hiring and training of salespeople to adopt high moral ethics, avoid excuse-making, commit less frequent unethical behavior, build customer relationships and improve sales performance. Originality/Value/Contribution of the paper The originality and value of this study rest with proposed connections between three prevalent issues in business-to-business sales organizations. Moral intensity, interpretations of the potential harm of sales actions, the ongoing existence of excuse-making, and their connections between unethical behaviors and relationship performance provide valuable and unique insights into business-to-business selling behaviors and seller consequences.