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Building Lasting Success: The Importance Of Ethical Sales Practices The importance of ethical sales cannot be overstated, particularly in a digital age where social media reigns supreme, and online reviews can make or break a business.

By Mustafa Shaker Edited by Aby Sam Thomas

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur Middle East, an international franchise of Entrepreneur Media.


In today's competitive corporate market, with its standard mindset of "close the deal against all odds," many companies risk compromising their ethical standards in the pursuit of immediate sales targets. While this approach is tempting and an easy route to short-term gains, the potential long-term repercussions in terms of customer trust and brand reputation are significant and often detrimental.

In the relentless race to meet sales targets and outperform competitors, some businesses succumb to dubious tactics such as concealing hidden costs, promoting unsuitable products, or even overstating the benefits or effectiveness of their products or services. While these practices may offer instant gains, ultimately, they can tarnish a company's reputation, erode customer trust and jeopardize long-term success.

The importance of ethical sales cannot be overstated, particularly in a digital age where social media reigns supreme, and online reviews can make or break a business. This extends beyond mere sales transactions; it entails conducting business with fairness and respect, and fostering long-term relationships with consumers, transforming them into loyal advocates who actively contribute to the ongoing success of your brand.

Customers today are well-informed, and they have developed a set of expectations beyond the product they are buying. They want to make a connection with the business itself, and they are looking for companies that align with their values, ethics, and social responsibilities. This could be reflected in how the company treats its employees, its commitment to environmental sustainability, or even its social impact across the countries in which it operates.

Businesses are obliged to provide clarity and transparency to customers, and this is not just a requirement, but the essence of conducting business, a major factor in businesses' longevity and success. Customers these days have a say in the product and the module as a whole, from sales to delivery and beyond.

Studies reveal that companies adhering to ethical sales practices tend to enjoy customer retention rates 20% higher on average than those engaging in unethical practices. Furthermore, businesses with high ethical standards report a 15% increase in overall client satisfaction. On the flip side, companies caught in unethical sales behaviors witness a decrease of nearly 35% in consumer trust, emphasizing the damaging effects of such practices and the ripple effect on business sustainability.


When we delve deeper into the practicalities, especially in a culturally rich and diverse region like the Middle East, the nuances become more evident and critical. Ethical sales are not just a component of business strategy; they form the foundation for long-term success and growth.

Trust and credibility are paramount. In the UAE, with its diverse, multicultural population, business relationships are deeply rooted in trust, and often built on personal connections and long-standing social and business networks. Establishing credibility is therefore essential. Sales professionals must establish authentic connections that extend beyond transactional interactions. Doing so involves understanding different cultures, respecting business etiquette, and demonstrating a deep commitment to meeting customer needs. Leveraging social proof, such as testimonials from respected local clients, and backing claims with credible data, are also effective strategies that add valuable credence to your business.

Related: Decoding Consumer Behavior: Understanding What Makes Your Customers Tick

In cultures that value honesty and integrity, such as those prevalent in the UAE and neighboring regions, accountability is key. Far from being a weakness, brands that promptly acknowledge and rectify their mistakes are more likely to foster strong customer loyalty. Research by Gallup, the renowned global analytics and advice firm, has shown that highly accountable workplaces see 50% higher productivity, and are 2.5 times more likely to be high-performing organizations. The World Economic Forum also reported that, on average, more than 25% of a company's market value is directly attributable to its reputation, of which accountability is a major factor.

Transparency in product information and realistic promises are vital for maintaining customer trust and loyalty. In the past, businesses might have managed with opaque practices and overpromises. However, consumers are now more informed and discerning than ever; therefore, honesty and clarity are integral in shaping their purchasing decisions. Companies should provide detailed and accurate descriptions of their products and services, disclosing all relevant information, including sourcing, manufacturing processes, and potential risks or side effects. Marketing campaigns should also avoid exaggerated claims or misleading information.

Similarly, promotional materials, whether online or in print, should accurately represent what's being sold. A real estate developer, for example, should provide authentic images of properties and realistic details about amenities and facilities, rather than using enhanced or misleading imagery. Transparent pricing is not only crucial but essential. This means no concealed fees or unforeseen charges. Companies should explicitly outline costs, including any additional fees such as delivery or service charges.

In a region bustling with competition like the UAE, ethical comparison with competitors is crucial. Unfortunately, many companies are understandably hesitant, fearing that by acknowledging competitors, they might lose their competitive edge or inadvertently divert potential customers away. This concern is rooted in a traditional competitive mindset where businesses see the market as a zero-sum game, assuming that recognizing a competitor's strengths could expose their own weaknesses. It may also stem from a lack of confidence in their own offerings, leading companies to avoid comparisons altogether or engage in negative, unfair comparisons, rather than focusing on their unique strengths in a balanced and respectful way. To thrive in competitive markets such as the UAE, companies must confidently embrace ethical competitor comparisons.

Acknowledging and tackling problems is central to building and maintaining trust and credibility in any business. This is especially true in scenarios such as delivery delays. When these inevitable issues arise, how a company responds makes all the difference. For instance, imagine a situation where an e-commerce company faces unexpected shipping delays. By proactively informing customers of the issue, apologizing for the inconvenience, and providing clear options, such as an estimated new delivery date, an alternative product, or even a refund, the company demonstrates its respect for the customer and its commitment to quality service. This kind of prompt and transparent communication helps resolve the immediate problem and solidifies the customer's trust in the company's ethical and efficient handling of challenges.

Leading by example is a practical and effective strategy that significantly influences an organization. When sales managers and executives consistently demonstrate ethical behavior, it transcends mere team management– it establishes a real-world standard. Your everyday decisions and actions provide tangible examples of what the company values and strives for. This approach to leadership goes beyond formal speeches or stringent policy enforcement, informing the subtle yet impactful ways you conduct business daily. By taking this approach, you create a workplace where integrity is not just a stated goal but an active practice. The result is profound yet straightforward: a business that earns respect and trust for its current operations sets a positive precedent for continuous ethical conduct. This kind of leadership is about more than supervision: it's about inspiring genuine change and commitment within the team.


By adopting these ethical sales practices, you're not just doing what's right– you're setting your business up for sustainable growth, deeper customer relationships, and a respected presence in the market. Ethical sales are an investment in your company's future, one that pays off in trust, loyalty, and a solid reputation. Choosing to prioritize ethics in your sales strategy is a decision that will define your business's success.

Related: More Than Just A Moral Compass: The Power Of Ethical Business Practices

Mustafa Shaker

Sales Director, Ras Al Khaimah Economic Zone (RAKEZ)

Mustafa Shaker has been in the sales domain for over 15 years, with extensive experience in multinational corporations such as L’Oreal, where he seamlessly transitioned from a finance role to a sales leader.  

As the sales director at Ras Al Khaimah Economic Zone (RAKEZ), he plays a pivotal role in steering the organization towards significant growth with his ability to blend innovative sales strategies with effective team coordination. 

With a bachelor’s degree in Business Administration from the American University of Hawaii and fluent in Arabic and English, he is a key driver of success in the dynamic world of sales. 


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