Within the domain of sales ethics, researchers are increasingly challenged to adopt a focus on the emotional elements of sales and ethics. However, previous research has primarily examined the more rational, deterministic element of sales, and ethics-based relationships. The current research addresses this issue. We develop a model based on the person–situation interaction viewpoint of ethics. Specifically, we explore the effects of a key social emotion, empathy, as well as an important situational aspect, trust in one's sales manager, on ethical behaviors. Further, we examine the moderating role of the salesperson's trust in his/her manager on the link between empathy and ethical behaviors. In addition, we examine the impact of the salesperson's ethical behaviors on his/her performance. Using dyadic data collected from salespeople and their respective managers, we test the model through SEM analysis. Results support the direct effects of empathy on ethical behaviors and also highlight the interactive effects of trust and empathy on ethical behaviors.
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