BUS 346 Ch. 4 – Flashcards

Compared to the average company, firms with strong ethical climates tend to Select one: a. employ more business development consultants. b. be more socially responsible. c. offer more goods and services. d. have higher turnover. e. invest more in sales training software.

The Ethical Decision-Making Framework includes all of the following steps EXCEPT Select one: a. brainstorm and evaluate alternatives. b. identify issues. c. gather information and identify stakeholders. d. promote the firm's corporate social responsibility efforts. e. choose a course of action.

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? Select one: a. Experience b. Ethics c. Planning d. Implementation e. Control

Being socially responsible is generally considered Select one: a. a good thing to do only if a company is profitable. b. beyond the norms of corporate ethical behavior. c. the responsibility of corporate-sponsored foundations that can effectively concentrate a firm's good deeds. d. inappropriate for most firms in today's challenging markets. e. a necessary part of every firm's strategy.

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 Select one: a. corporate social responsibility. b. business ethics. c. marketing ethics. d. environmental marketing. e. overpricing its products.

How might a technology company like Apple ensure that it behaves in a socially responsible way toward its customers? Select one: a. Social responsibility isn't relevant where customers are concerned; it has to do with serving society as a whole. b. By adhering to government-mandated safety standards in its stores. c. By ensuring that its packaging materials are recyclable. d. By protecting the privacy of personal information collected on its website. e. By ensuring that it pays its employees fairly.

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 Select one: a. choose a course of action. b. promote the firm's corporate social responsibility efforts. c. identify issues. d. brainstorm and evaluate alternatives. e. analyze the needs of the industry.

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. Select one: a. all parties relevant to the decision b. any individuals with competing interests c. elected officials d. key customers e. the senior managers most involved

The Johnson and Johnson Credo acknowledges the company's responsibility to Select one: a. domestic markets, other countries in the developed world, and finally countries in the developing world. b. users of its products, its employees, the community, and its stockholders. c. users of its products, the researchers who develop the products, regulators, and its stockholders. d. its stockholders first, its managers, its employees, and its suppliers and vendors. e. doctors, nurses, insurance companies, and users of its products.

In a recent Gallup survey, which of the following professions was rated lowest in ethical standards? Select one: a. car salespeople b. real estate agents c. medical doctors d. lawyers e. senators

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 Select one: a. choosing a course of action. b. brainstorming and evaluation of alternatives. c. reidentification of issues. d. a vote, with the majority deciding the best course of action. e. legal discourse.

When Johnson and Johnson removed all Tylenol from the shelves after some containers were tampered with, poisoning and killing seven people, the company Select one: a. sacrificed short-term profits for long-term credibility. b. developed plans to sell the returned Tylenol bottles in less developed countries. c. was forced to do so following extensive consumer outcry. d. was ordered to do so by the Food and Drug Administration. e. felt that nothing could stop Tylenol from losing most of its customers.

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? Select one: a. design Incorrect b. control c. planning d. ethics e. implementation

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? Select one: a. gather information and identify stakeholders b. choose a course of action c. brainstorm and evaluate alternatives d. assess risk e. identify issues

Many corporations are shifting from defined benefit to defined contribution retirement programs. When considering changes to retirement programs, the primary stakeholders are the Select one: a. employees. b. shareholders. c. customers. d. marketing managers. e. competition.

A recent poll conducted by Time magazine found that 38 percent of U.S. consumers Select one: a. didn't care if a company acted responsibly. b. were concerned with social responsibility, but not the ethical behavior of a company. c. actively tried to purchase from companies they considered responsible. d. purchased from companies they perceived to be ethical or not ethical equally. e. had no idea if the companies they purchased from were responsible.

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 Select one: a. a basic requirement of any business. b. the key to operational effectiveness. c. a component of basic business ethics. d. beyond the norms of corporate ethical behavior. e. the equivalent of the AMA ethical value, "Do no harm."

Charges that firms are using sweatshop labor to produce their products are likely to occur during the __________ phase of the strategic marketing planning process. Select one: a. control b. marketing mix c. evolution d. planning e. implementation

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 Select one: a. that the impact of unethical actions can affect the organization in unanticipated ways. b. the lack of information needed to make ethical decisions. c. that universities are more corrupt than companies. d. the need to identify issues. e. that the extravagant spending should have been kept quiet to minimize damage to the university.

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. Select one: a. marketing mix b. implementation c. evolution d. control e. planning

Unlike other business functions like accounting or finance, people in marketing are often singled out as the root cause of ethical concerns because Select one: a. they are not considered to be as quantitatively skilled as accounting and finance people. b. doing a good job of marketing requires some degree of unethical behavior. c. they interact directly with consumers. d. the problems that occurred at Enron, Tyco, and WorldCom were caused by marketers. e. they are trained in the art of effective persuasive communication.

How did Johnson and Johnson recently respond to new limits on acetaminophen dosages? Select one: a. It pulled all Tylenol products off the shelf until it could be sure it wasn't causing problems for consumers. b. It didn't do anything and waited to see if there would be a problem with its products. c. It reminded people not to take more than the recommended dosage. d. It changed the dosages to significantly lower levels. e. It changed its packaging to reflect the new standards.

Janice was disturbed to find that the real estate company she had just started working for did not have aNo __________, the starting point for creating a strong ethical climate. Select one: a. ethical activity bonus b. social responsibility program c. employment contract d. set of ethical values e. ethical behavior seminar

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 Select one: a. consider the profit potential first; then explore the vague tests in the metric. b. consult the firm's code of ethics for guidance and leave personal ethical considerations out of the decision-making process. c. ignore the metric as unworkable, since the campaign might pass some of the tests and fail others. d. not worry about the children; their parents are likely to make the buying decision, and they should be able to decide for themselves. e. put the campaign on hold while she explores with the staff how they approached the ethical issues.

The Johnson and Johnson Credo Select one: a. proved ineffective when the company needed to act in the Tylenol crisis, which was a clear lesson to other companies to update similar documents. b. was a response to the Tylenol incident. c. offers an extremely detailed description of potential problems for the company. d. was copied by all other pharmaceutical companies. e. has guided the firm since it was written in the 1940s.

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. Select one: a. control b. planning c. assessment d. implementation e. social responsibility

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 Select one: a. evaluate the legal ramifications. b. engage in brainstorming and evaluate alternatives. c. choose a course of action. d. assess impact of its actions beyond the classroom. e. identify issues of concern to lawmakers.

Multinational corporations are recognizing their responsibility to the people who make their products Select one: a. when public attention might embarrass the corporation. b. when it suits them financially. c. even if they aren't their employees. d. if the local government suggests that the company pay bribes to officials. e. unless another firm actually employs the workers.

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 Select one: a. brainstorm and evaluate alternatives. b. choose a course of action. c. gather information and identify stakeholders. d. identify issues that need to be addressed. e. promote the firm's corporate social responsibility efforts.

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 Select one: a. manipulating the public sentiment for its own benefit. b. creating a local ethical business climate. c. practicing marketing ethics. d. demonstrating corporate social responsibility. e. falsifying the company's finances through charitable donations.

The chapter opening case on the fishing industry focused on what ethical dilemma? Select one: a. Fisheries are overcharging distributors for fish, which is being passed on to consumers. b. The U.S. fishing industry is selling more fish overseas in spite of increased U.S. demand. c. Restaurants are selling more fish than ever in spite of overfishing. d. Fisheries and restaurants are substituting a less popular fish for a more popular one without the consumer's knowledge. e. Restaurants are selling fish that are legally banned in the U.S. Incorrect