Business Ethics in Channel Management Solutions

In a perfect world, vendors, resellers, retailers, and customers exist in a symbiotic commercial environment where everything is fair and progressive. Unfortunately in the real world of cut-throat competitive and commercial culture, everybody is out to get the most profit for the least investment. Vendors want to sell more of their goods and instant brand recognition. Resellers want more incentives monetary or otherwise. Customers want more value for their money. Almost everyone has an agenda and business ethics more often than not gets thrown out of the window or conveniently forgotten.

I value ethics and hope for the day when all of us can evolve beyond petty human frailties like greed that seems to permeate even the civilized corporate jungle. I wonder, as a player in a channel network, how do ethics come into play as channel management solutions are developed?


partner profiling

Every channel manager knows that in the most contentious issue in channel management is channel conflict. Channel conflict afflicts not only among channel partners of the same vendor, but also with vendors versus channel partners. While some conflicts are unintentional, I know that some exist because of deliberate and malicious manipulation of sales transactions driven by intense competition and yes, greed.

Fortunately, these conflicts can be avoided. Effective communication is one of the keys to a smooth channel partner relationship or in any relationship for that matter. In listening to stakeholders like channel partners, vendors or the parent company can address issues that come up. Making decisions without thought about those who will be affected is simply unethical. Listening to stakeholders indicates your company’s commitment to the partnership and it shows partners that you do not take them for granted.

Vendors’ products should always be of the highest quality. Sometimes, channel partners are forced to sell products that they believe are substandard or are not ready for the market. I’ve come to note the many recalls from toys to automobiles that were proven to cause danger to the health of the consumer. Not only is this damaging for the consumer, the brand is also damaged that can affect the channel partners and the vendors.

The first thing that a channel manager does in developing channel management solutions, is the aligning of objectives. Vendors need to make sure that their corporate values as reflected on their policies are in alignment with their partners’ vision. This is the first step towards solid ethical business partnership that can lead to respect and loyalty, a stronger bond than means more than just financial ties.