question

Short-term profit decisions can cause firms to lose customers in the long run.

answer

True

question

Marketing has been singled out as the root cause of a host of ethical problems in business.

answer

True

question

Marketers are frequently singled out for criticism related to trust, in part because they interact directly with people.

answer

True

question

Advertising executives are rated as having higher ethical standards than lawyers.

answer

False

question

The process of creating a strong ethical business climate begins with the front-line employees who interact directly with the customers.

answer

False

question

Each individual's ethical standards are a product of their culture and upbringing.

answer

True

question

Merck and Co., having learned from the Johnson and Johnson Tylenol incident, was quick to respond when the first reports of problems with Vioxx arose.

answer

False

question

A survey of marketing officers reported that the most frequently observed type of unethical behavior was false or misleading advertising.

answer

False

question

Firms with strong ethical climates tend to be more socially responsible.

answer

True

question

If a U.S. clothing brand buys from overseas suppliers who manufacture clothing using child labor, this is the supplier's problem, and the U.S. company shouldn't worry about it.

answer

False

question

A roofing company agreed to complete a job in one week and collected a 50 percent deposit, but never showed up to do the job. The same roofing company then donated $6,000 to a local children's hospital. The roofing company could be considered socially responsible.

answer

True

question

Ethos Water donates 2 percent of its profits to children in need of clean water. This action demonstrates that Ethos Water is a firm with a strong ethical climate.

answer

False

question

Corporate social responsibility refers to the coordinated actions of government organizations to address the ethical, social, and environmental impacts of business operations.

answer

False

question

Stakeholders typically include the firm's employees and retired employees, suppliers, the government, customer groups, stockholders, and members of the community in which the firm operates.

answer

True

question

Brainstorming in the Ethical Decision-Making Framework occurs immediately following the identification of issues.

answer

False

question

Marketers can introduce ethics at the beginning of the planning phase of the strategic marketing planning process by including ethical statements in the firm's mission or vision statements.

answer

True

question

Tipco Computer Company decided to market its tablet computers to preschoolers, even though the tablets were better suited for much older children. This potentially unethical activity takes place during the control phase of the strategic marketing planning process.

answer

False

question

An example in the text describes a campaign by Molson Brewery that involved a Facebook campaign targeted toward college students. It was criticized for encouraging underage drinking. This occurred during the implementation phase of the strategic marketing planning process.

answer

True

question

Ronald McDonald Houses are a form of environmental social responsibility.

answer

False

question

Deceptive advertising and promotion of inferior products are examples of ________ ethical issues.

answer

B. Marketing

question

Unlike other business functions like accounting or finance, people in marketing are often singled out as the root cause of ethical concerns because:

answer

C. they interact directly with consumers

question

The sale of products that may damage the environment, the use of sweatshop labor, and the marketing of dangerous products are examples of:

answer

D. marketing ethical issues

question

In a recent Gallup survey, which of the following professions was rated lowest in ethical standards?

answer

A. car salespeople

question

Janice was disturbed to find that the real estate company she had just started working for did not have a(n) __________, the starting point for creating a strong ethical climate.

answer

B. set of ethical values

question

The Johnson and Johnson Credo acknowledges the company's responsibility to:

answer

A. users of its products, its employees, the community, and its stockholders

question

The Johnson and Johnson Credo:

answer

E. has guided the firm since it was written in the 1940s

question

When Johnson and Johnson removed all Tylenol from the shelves after some containers were tampered with, poisoning and killing seven people, the company:

answer

A. sacrificed short-term profits for long-term credibility

question

Jacqueline was pleased to read a paraphrasing of the Golden Rule, "Do unto our customers as you would have them do unto you," as part of her new employer's mission statement. Next, Jacqueline expects to find in the firm's employee handbook:

answer

C. Explicit rules governing all the firm's transactions

question

New real estate disclosure regulations require sellers and their agents to tell prospective buyers about any existing problems. Previously, they were only expected to answer buyers' questions. The new regulation addressed the marketing ethical problem of:

answer

E. withholding information

question

When making decisions, managers often have to decide between doing what is beneficial for them (and possibly the firm) in the short run, and doing what is right and beneficial for the firm and for society in the long run. To address this conflict, a firm:

answer

D. must ensure that long term goals of the firm are aligned with the short-term goals of each individual in the firm

question

Compared to the average company, firms with strong ethical climates tend to:

answer

C. be more socially responsible

question

Many executives and corporate boards of directors do not perceive social responsibility as part of their mission or responsibility. These business leaders consider corporate social responsibility to be:

answer

E. beyond the norms of corporate ethical behavior

question

Ironically, while the leaders of Enron Corporation were manipulating the company's finances for their personal benefit, the company was a major donor to Houston area charities. Enron had unethical business practices, but was also:

answer

D. demonstrating corporate social responsibility

question

The Ethical Decision-Making Framework includes all of the following steps EXCEPT:

answer

B. promote the firm's corporate social responsibility efforts

question

Garrett has just purchased a beer distributorship. He wants to increase the visibility of his firm in local markets, but he knows there are a number of regulations and socially accepted practices associated with promoting alcoholic beverages. According to the Framework for Ethical Decision Making, the first thing Garrett should do is to:

answer

A. identify issues that should be addressed

question

Hisaoki picks up the local newspaper and reads a stinging letter to the editor criticizing his beverage company for supporting a sporting event for handicapped children. The letter writer is critical of a banner displayed at the event, with the logos of alcoholic beverages and Hisaoki's company name. Hisaoki never considered that this problem might arise. In the Framework for Ethical Decision Making, Hisaoki's company failed to:

answer

A. identify issues

question

Many corporations are shifting from defined benefit to defined contribution retirement programs. When considering changes to retirement programs, the primary stakeholders are the:

answer

B. employees

question

When Bernie Ebbers, WorldCom's CEO, was convicted of financial crimes, WorldCom was forced to merge with MCI. One of the ramifications of this merger was the loss of WorldCom's sponsorship of the Sea Pines Heritage PGA golf tournament. The tournament funds the Heritage Foundation, a major community charity. This example illustrates:

answer

B. the impact of unethical behavior can reach far beyond the corporation

question

When auditing expenses claimed by the university president, the auditors found extravagant spending on $1,000 per night hotels, banquets, and gourmet restaurants. The president was fired, alumni donations declined, and staff members—who were disturbed by the extravagance while staff salaries were frozen—quit their jobs. This example illustrates:

answer

C. the impact of unethical actions can affect the organization in unanticipated ways

question

The Harvest County School Board is concerned about deteriorating school facilities, combined with a shrinking budget. The board began by studying the issue, and then identified parents, children, teachers, staff, and taxpayers as groups who have a vested interest in the problem. The school board has listened to each group's concerns. In the Ethical Decision-Making Framework, its next action should be to:

answer

C. engage in brainstorming and evaluate alternatives

question

After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision-making situation, __________ should engage in brainstorming and evaluation of alternatives.

answer

D. all parties relevant to the decision

question

After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision-making situation, all parties relevant to the decision should engage in:

answer

E. brainstorming and evaluation of alternatives

question

After a firm has identified the various stakeholders and their issues and gathered the available data, all parties relevant to the decision should engage in brainstorming and evaluation of alternatives. __________ then review and refine these alternatives, and choose a course of action.

answer

A. Managers

question

Darwin's company is facing a difficult ethical issue. The firm has identified the various stakeholders and their issues and gathered the available data. Everyone with an interest in the issue has engaged in brainstorming and evaluation of alternatives. Management reviewed and refined the alternatives. It should now choose the course of action that:

answer

E. seems best after weighing the concerns of all stakeholders

question

Rock-Bend Company is considering buying out a competing firm and closing most of the competitor's factories. The firm has identified the various stakeholders and their issues and gathered the available data. Everyone with an interest in the issue has engaged in brainstorming and evaluation of alternatives. Management reviewed and refined the alternatives, and then chose a course of action. If the managers are not confident about the decision, they should:

answer

B. reexamine their alternatives

question

When looking at ethical issues associated with the strategic marketing planning process, questions:

answer

C. vary at each stage of the process

question

Denny is considering the question, "Did our actions have a negative impact on any stakeholder group?" Denny is addressing marketing ethical issues in the __________ phase of the strategic marketing planning process.

answer

B. control

question

Every year, General Mills issues a report discussing how the firm has performed against its own standards of ethical conduct. This report is part of General Mills' __________ phase of its strategic marketing planning process.

answer

C. control

question

Charges that firms are using sweatshop labor to produce their products are likely to occur during the __________ phase of the strategic marketing planning process.

answer

B. implementation

question

Multinational corporations are recognizing their responsibility to the people who make their products:

answer

C. even if they aren't their employees

question

During the __________ phase of the strategic marketing planning process, marketers use systems to check whether each potential ethical issue raised in earlier phases was addressed.

answer

B. control

question

Alicia has been asked to approve a marketing campaign that, although it is not illegal, promotes food products to children. She is concerned that the food products are not particularly nutritious, although they are not as bad for children as some others sold by competitors. She reviews the tests in the Ethical Decision-Making Metric, and she decides her best course of action is to:

answer

D. put the campaign on hold while she explores with the staff how they approached the ethical issues

question

The Henry Ford Health System (a health care provider) has set strict limits for pharmaceutical representatives, and will no longer allow doctors in its system to accept free lunches, gifts, or other perks from the pharmaceutical representatives. The Henry Ford Health System probably established this policy because:

answer

A. it reduces the possibility that the Henry Ford Health System might make unethical purchasing decisions

question

When Toyota owners began to report problems with sticking accelerator pedals and non-functioning brakes, Toyota at first ignored or rejected the claims. Eventually, the company evaluated the issue and did a recall. Which of the four steps of the Ethical Decision-Making Framework was Toyota performing when it recalled several of its 2007-2010 models?

answer

E. choose a course of action

question

For every consumer who purchases a pair of TOMS shoes for $55.00, the company promises that a needy child will receive a pair of shoes. TOMS shoes is actively engaging in:

answer

A. corporate social responsibility

question

If Melissa decides to sell the best ice cream on earth, and intends to establish a strong ethical climate in her organization, during which phase of the strategic marketing planning process should she introduce ethical considerations?

answer

A. planning

question

Anupam's company manufactures industrial ladders. He is concerned that consumers who do not understand ladder safety will purchase these extra-tall ladders and injure themselves. During which phase of the strategic marketing planning process should this issue be addressed?

answer

C. implementation

question

Elena is the CEO of a small manufacturing firm. She is concerned with meeting the investment objectives of the firm's shareholders, and sees no value in corporate social responsibility. Elena's attitude is:

answer

B. consistent with the views of other critics of CSR

question

How might a technology company like Apple ensure that it behaves in a socially responsible way toward its employees?

answer

C. by ensuring that pay practices are fair at all levels of the company

question

How might a technology company like Apple ensure that it behaves in a socially responsible way toward its customers?

answer

A. by protecting the privacy of personal information collected on its website

question

How might Starbucks ensure that it behaves in a socially responsible way toward members of its supply chain?

answer

D. by purchasing coffee beans from suppliers who pay coffee growers at fair price

question

All of the following terms are generally associated with the definition of corporate social responsibility EXCEPT:

answer

E. profit

question

A recent poll conducted by Time magazine found that 38 percent of U.S. consumers:

answer

A. actively tried to purchase from companies they considered responsible

question

The chapter opening case on the fishing industry focused on what ethical dilemma?

answer

B. Fisheries and restaurants are substituting a less popular fish for a more popular one without the consumer's knowledge.

question

________ refers to the moral or ethical dilemmas that might arise in a business setting.

answer

B. business ethics

question

How did Johnson and Johnson recently respond to new limits on acetaminophen dosages?

answer

C. it reminded people not to take more than the recommended dosage

question

Policing potential violations of human rights and child labor laws is an important component of:

answer

C. the mission statement

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