question

Which of the following statements about social responsibility is correct?

answer

Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society.

question

If Hefty Bags expresses concern that its products are having too great an impact on the pollution of ground water under landfills, this concern is directly related to the firm's

answer

social responsibility

question

Avon's Breast Cancer Awareness Crusade, which has raised nearly $400 million for community-based breast cancer education and early detection services, illustrates the positive consequences of

answer

social responisibility

question

After news reports that pharmaceutical giant Merck was aware that its arthritis-fighting drug Vioxx may cause heart problems, the firm's stock plummeted and hundreds of lawsuits were filed against the company. This demonstrates what can occur if firms ignore

answer

social responsibility.

question

Socially responsible business practices have provided all of the following benefits except

answer

reducing marketing costs.

question

The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders is called

answer

marketing citizenship.

question

Employees, customers, communities, and investors are all considered ______ in relation to marketing.

answer

stakeholders

question

Any constituent who has a claim in some aspect of a company's products, operations, markets, industry, or outcomes is known as a(n)

answer

stakeholder.

question

Companies that are considered to be good corporate citizens and consider the diverse perspectives of different groups affected by their operations are said to have a ___________ orientation.

answer

stakeholder

question

When operating on a daily basis, employees and managers at Bank of America consider the perspectives of all individuals and groups that might be affected by their decisions. This is known as

answer

a stakeholder orientation

question

Which of the following is not a dimension of social responsibility and marketing citizenship?

answer

technological

question

Which of the following is not one of the four dimensions of social responsibility presented in your text?

answer

consumerism

question

Kaitlyn understands that her local catering business has certain responsibilities to society. She knows that she must abide by the laws that apply to her business and try to make a profit. What are the other obligations Kaitlyn should know?

answer

Ethical and philanthropic

question

Sometimes business must find a balance between society's demand for social responsibility and investors' desires for profits. This is an example of a(n) ___________ responsibility.

answer

economic

question

All companies have a responsibility to ______ so they can provide a return on investment to their owners and investors, create jobs for the community, and contribute goods and services to the economy.

answer

be profitable

question

As a firm fulfills its basic economic responsibilities, it must simultaneously

answer

obey laws and regulations

question

Cameron Inc. is a very profitable automobile repair shop. The company is well known for its great service and involvement in the community, but it fails to properly dispose of its used oil as outlined in environmental regulations. Cameron is failing in its ______ responsibilities.

answer

legal

question

According to the text, marketing ethics refers to principles and standards that define

answer

acceptable conduct in marketing

question

Marketing ethics

answer

refers to principles and standards that define acceptable conduct in marketing.

question

The most basic principles of marketing ethics are

answer

written as laws and regulations.

question

A business that contributes resources to the community to improve the quality of life is taking on a(n) ___________ responsibility.

answer

philanthropic

question

McDonald's supports and funds Ronald McDonald houses for the families of terminally-ill children to stay in to be near their loved ones. McDonald's action demonstrates the fulfillment of ______ responsibility.

answer

philanthropic

question

At the top of the pyramid of social responsibility for business are ___________ responsibilities

answer

philanthropic

question

Actions that promote human health and welfare address the _______ dimension of the pyramid of social responsibility.

answer

philanthropic

question

The practice of linking a firm's product marketing to a particular social cause on an ongoing or short-term basis is known as

answer

cause-related marketing.

question

If Ben and Jerry's were to donate 5 percent of every ice cream purchase to shelters for victims of domestic abuse for one month, this would be an example of

answer

cause-related marketing

question

Which of the following is the best definition of cause-related marketing?

answer

Linking a firm's products to a particular social cause—either short term or long term

question

The close relationship of Home Depot's philanthropic initiatives and its business goals is an example of

answer

strategic philanthropy.

question

Who are the primary recipients of the benefits of strategic philanthropy?

answer

Companies and society

question

Which of the following is a primary difference between cause-related marketing and strategic philanthropy?

answer

Strategic philanthropy can take on both a financial and nonfinancial format while cause-related marketing only involves financial contributions.

question

Which of the following is the best example of strategic philanthropy for Staples, the large office supply chain?

answer

Providing low-income families with school supplies and computer training

question

Which of the following refers to a firm's specific development, pricing, promotion, and distribution of products that do not harm the environment?

answer

Green marketing

question

Products that may do harm to the natural environment are inconsistent with

answer

Green marketing

question

Which of the following is the best definition of green marketing?

answer

Developing, pricing, promoting, and distributing products that do not harm the natural environment

question

Merck develops a better way to package and distribute its pharmaceutical products that requires less materials and waste. What major social responsibility issue is Merck addressing?

answer

The natural environment

question

StarKist Tuna has frequently extolled its dolphin-safe methods of catching tuna. This is an example of

answer

green marketing.

question

In Europe, companies can voluntarily apply for a designation to indicate that their product is less harmful to the environment than competing products. This label is known as the

answer

Eco-label.

question

Which of the following is not one of the four objectives that environmentalists believe companies should implement in order to sustain the natural environment?

answer

Force consumers to recycle products

question

All of the following are goals of green marketing except

answer

making the work force match the population in terms of diversity

question

Instead of addressing the question_______, many environmentalists and marketers believe the question should be ______.

answer

"What should we do with our waste?"; "How can we produce products without waste?"

question

According to some environmentalists, what are the three types of products that all products should be reduced to?

answer

Consumables, durable goods, and unsalables

question

Honda produces a variety of automobiles, which makes the company a producer of

answer

durable goods.

question

As far as prices are concerned, environmentalists believe prices should

answer

reflect the direct cost as well as the cost of air, water, and soil used

question

What do environmentalists set as an objective for profitability?

answer

Environmentalism should be made profitable, and companies attempting to protect the environment should not have to compete with those harming it in the marketplace.

question

Synergy Tech has a program that offers consumers money back for their old Synergy computers so that the materials used to make the computer can be retained within a closed system. Which of the primary environmental goals does Synergy's program address?

answer

Reinvent the concept of a product.

question

Consumerism is

answer

the efforts of independent individuals, groups, and organizations to protect the rights of consumers

question

Angela organized a boycott of a local restaurant because of the owner's obvious prejudicial treatment of Hispanics. Angela's action would most likely be called

answer

consumerism.

question

The Browardton Quilters' Guild has contacted all the major networks to try to warn people about the poor performance of miniature, hand-held sewing machines. These quilters are engaging in

answer

consumerism.

question

Who of the following is a famous consumer activist?

answer

Ralph Nader

question

Who drafted the Consumer Bill of Rights?

answer

John F. Kennedy

question

The four basic rights outlined in the Consumer Bill of Rights include the right to safety, the right to be heard, the right to

answer

choose, and the right to be informed.

question

Product testing for reliability and quality helps to ensure a consumer's right to

answer

safety.

question

Warnings on television commercials for prescription drugs include a list of sometimes grotesque side effects that are possible when taking that particular drug. The consumer right to _____ most applies to these commercials.

answer

be informed

question

According to President Kennedy's consumer bill of rights, the right to choose means that

answer

consumers should have access to a variety of products and services at competitive prices

question

Sharese wants to buy a new couch, but there is only one place in her town that sells them, and she lives in an isolated area. Sharese most likely feels her consumer right to ______ has been violated.

answer

choose

question

According to the consumer bill of rights, the idea that consumers' interests should receive full and sympathetic consideration in the formulation of government policy is known as the right to

answer

be heard

question

How would marketers most likely benefit from the consumer's right to be heard?

answer

The company can use the information to make its products better.

question

According to the consumer bill of rights, the right to be informed means that

answer

consumers should have access to and the opportunity to review all relevant information about a product before buying it.

question

Target's Take Charge of Education program donates 1 percent of a customer's total purchase to the school of his or her choice. What social responsibility issue does this program address?

answer

Community relations

question

Various stakeholders and _______ determine the acceptable standards of conduct involving ethics

answer

the organizations' ethical climate

question

Ethical standards for acceptable conduct for a company should

answer

be based on company, industry, government, customer, and society viewpoints

question

When is the best time to deal with marketing exchange problems concerning ethics?

answer

During the strategic planning process

question

The boundary between legal and ethical issues is

answer

blurred

question

A marketing ethics issue likely exists when

answer

an individual or organization must choose from among several actions that must be evaluated as right or wrong.

question

Reese is facing an ethical issue at work and has determined four possible courses of action he could take. He knows he should evaluate each possible action as _____ in order to choose the most appropriate action.

answer

right or wrong

question

An ethical issue is

answer

an identifiable problem, situation, or opportunity requiring an individual to choose from among several actions that must be evaluated as right or wrong.

question

_____ ethical issues generally surface when companies fail to disclose risks associated with a product or information regarding its function, value, or use.

answer

Product-related

question

Product-related ethical issues arise when marketers

answer

fail to disclose information to consumers about the risks associated with using a product

question

If Firestone failed to inform consumers of design problems associated with its Wilderness AT tires, it would have been engaging in unethical behavior in regard to which of the following marketing issue areas?

answer

Product

question

If a potato chip manufacturer introduces a new, bigger size bag of chips according to the label, when in actuality, the new bag is slightly smaller in contents, a _____ ethical issue exists.

answer

product-related

question

In testing her firm's new TV ads for Transformer action figures, Beth discovers the ads make children think many of the action figures can actually fly. Beth now faces an ethical decision regarding which element of the marketing mix?

answer

promotion

question

A cereal company advertises that its newly launched product can lower cholesterol although the company cannot provide evidence to substantiate this claim. This situation involves an ethical issue related to which element of the marketing mix?

answer

promotion

question

When a purchasing agent for Intel is offered a bribe by a silicon manufacturer salesperson

answer

a promotion-related ethical issue has been created.

question

What are some of the common price-related ethical issues?

answer

Predatory pricing and price fixing

question

Pharmaceutical companies have at times been accused of acting unethically by taking advantage of customers in the area of

answer

pricing.

question

After a hurricane strikes the U.S. Gulf Coast, a tremendous demand for gas-powered generators occurs. Ace's Hardware, which stocks a large inventory of these items, faces major ethical decisions with regard to the ___________ issue

answer

pricing

question

Distribution-related ethical issues arise when marketers

answer

force channel intermediaries to behave in a specific manner.

question

At times, large retailers such as Walmart may be accused of coercion in dealing with intermediaries because of the amount of power and control these large companies have over many of their suppliers. This is most potentially a ______ related ethical issue.

answer

distribution

question

According to the text, which of the following is not one of the factors that influence the ethical decision-making processes in a marketing organization?

answer

Attitudes toward religion

question

All of the following are factors that influence the ethical decision-making process except

answer

salary or wages.

question

Three factors that influence the ethical decision-making process in marketing include

answer

individual factors, organizational factors, and opportunity

question

Since most ethical choices pertaining to marketing decisions are jointly made, an organization must ensure the _____________ reflects the organization's values, beliefs and norms.

answer

organizational or corporate culture

question

Ethical choices in business situations are most often made

answer

jointly in work groups and committees.

question

At his new job, Chris notices that everyone places high values on their families and each others' families, birthdays are always celebrated, and flexible schedules are permitted to facilitate family involvement as long as the work is still getting done. Everyone is very relaxed and friendly. Chris has made several observations about the

answer

corporate culture.

question

Tasha recently changed employers within the same industry. At her old company, employees routinely took home company pens, pencils, paperclips, and note pads, and they frequently made personal long-distance calls on company phones. Tasha observes that employees do not engage in such practices at her new company. What Tasha sees is best described as a difference in

answer

corporate culture

question

Amanda believes that the corporate culture at her company is best conveyed in informal ways. What are some informal ways that corporate culture is most likely to be expressed?

answer

Extracurricular activities and work habits

question

Which of the following employees is most responsible for setting the ethical tone for the entire marketing organization?

answer

Chief executive officer

question

A set of values, beliefs, goals, norms, and rituals shared by members of an organization is called

answer

corporate culture

question

The effect that coworkers have on the ethical decision-making process depends on a person's exposure to ethical and unethical behavior. Which of the following statements about ethical decision making is true?

answer

The more a person is exposed to unethical activity in the organization, the more likely he or she will behave unethically.

question

Opportunity provides a pressure that may determine ethical decisions in marketing. Opportunity is best thought of as

answer

a favorable set of conditions that limit barriers or provide rewards.

question

Justin believes that certain conditions at his company are very conducive to engaging in unethical behavior because these conditions provide rewards such as faster promotions and better salaries for those who bend the rules. Justin's company seems to allow ______ for unethical behavior.

answer

opportunity

question

In response to organizational pressure to perform, Barry used a deceptive sales tactic to obtain a major sales contract. He was surprised that he wasn't punished for his behavior and even received a substantial bonus for securing the contract. Given the same opportunity in the future, Barry will most likely

answer

use similar sales tactic again.

question

Karrie, a new salesperson for Brenham Foods, calls in an order for twice the amount of merchandise that Corner Market requested because she knows that it will increase her sales and will not be noticed by Corner Market. This is an example of how ___________ influences ethical decision making.

answer

opportunity

question

As a media buyer for the Angelo Agency, Chloe knows that no one ever checks to see if her phone calls are business related or personal. With regard to ethical behavior, this situation relates most closely to

answer

opportunity.

question

Which of the following statements best summarizes the perspective that most marketing managers have on unethical behavior?

answer

Most do not believe that unethical conduct will lead to success and refrain from taking unethical opportunities

question

___________ is (are) most likely to improve ethical behavior in a marketing organization.

answer

Eliminating unethical individuals and improving the organization's ethical standards

question

Which of the following would be consistent with Johnson Chemicals' understanding of the "bad apple" concept of improving the ethical conduct of salespeople?

answer

Firing unethical salespeople

question

It is possible to improve ethical behavior in an organization by

answer

improving the organization's ethical standards and eliminating unethical persons

question

___________ are formalized rules and standards that describe what a company expects of its employees in terms of ethical behavior.

answer

Codes of conduct

question

Codes of conduct are also frequently known as

answer

codes of ethics

question

Which of the following statements about codes of conduct is true?

answer

Most large corporations have formal codes of conduct

question

Which one of the following statements about codes of conduct (ethics) is false?

answer

They must be detailed enough to take into account many possible situations.

question

Who is typically responsible for creating, distributing, and enforcing a formal code of conduct?

answer

Ethics officer

question

Within the scope of her job, Sue Hanson gives ethics advice, disseminates a code of ethics, reviews the code of ethics, and takes action on ethics violations. Sue is the ____________ in her company

answer

ethics officer

question

Beth knows that her company has a formal code of conduct, but she does not see this code being equally and consistently applied to all employees. Beth believes that this sporadic enforcement of the formal code only enhances the _____ for committing unethical acts.

answer

opportunity

question

Which of the following is not usually a responsibility of an ethics officer?

answer

Drafting, disseminating, and updating a mission statement

question

Because laws are often difficult to interpret and understand, company codes of conduct and compliance programs should

answer

incorporate both legal and ethical concerns that the company deems most appropriate.

question

Which of the following statements about implementing an ethics and legal compliance program is false?

answer

It rarely needs to be revised.

question

What is the major difference between social responsibility and marketing ethics?

answer

Social responsibility deals with the total effect of marketing decisions on society, whereas marketing ethics relates to individual and group evaluations in marketing situations.

question

Which of the following statements is false?

answer

Social responsibility and marketing ethics are the same thing and can be used interchangeably

question

In a meeting with key personnel, Watson Corporation's president speaks to the firm's managers about social responsibility in business today. He suggests that the key to being socially responsible is to

answer

monitor changes and trends in society's values

question

In a classroom discussion, Jacob agrees with Marcie that consumers generally want biodegradable beverage cups. However, he says that businesses in that industry must evaluate whether

answer

consumers are willing to pay higher prices for them

question

Companies that incorporate ethics and social responsibility into their strategic plans are likely to experience

answer

improved marketing performance

question

Milton Hershey contributed resources to the community to improve the overall quality of life for consumers, employees, and the community in general. This reflected his ____________ responsibility.

answer

philanthropic

question

The fact that the Hershey company has recently reduced its waste by 360,000 pounds through a packaging redesign is evidence of its focus on

answer

social responsibility.

question

Emily, Hershey's ethics officer, is responsible for creating and distributing a(n) ___________, enforcing the code, and meeting with organizational members to discuss or provide advice about ethical issues.

answer

code of conduct

question

Hershey and its employees benefit in many ways from its strong ethics compliance program. Which of the following is not one of the benefits of such a program?

answer

Costly programs to develop and maintain

question

Silk Soymilk's sponsorship of the FarmAid concert is best thought of as an example of its

answer

philanthropic activities.

question

Silk Soymilk's use of organic, non-genetically modified soybeans in its product is an example of

answer

green marketing

question

The use of wind power to offset energy consumption by Silk Soymilk's parent company demonstrates its commitment to

answer

social responsibility

question

Silk Soymilk's parent company, WhiteWave Foods, is currently operating at the _____ level of the social responsibility pyramid

answer

philanthropic

question

An organization's obligation to maximize its positive impact and minimize its negative impact on society is known as social accountability

answer

F

question

Social responsibility is an organization's obligation to maximize its positive impact and minimize its negative impact on society.

answer

T

question

Marketing citizenship refers to an organization's obligation to maximize its positive impact and minimize its negative impact on society

answer

F

question

Four dimensions of social responsibility are economic, legal, ethical, and philanthropic.

answer

T

question

At the most basic level of marketing citizenship, marketers have an obligation to contribute funds to philanthropic causes.

answer

F

question

Marketing ethics refers to principles and standards that define acceptable conduct in marketing

answer

T

question

Cause-related marketing refers to the specific development, pricing, promotion, and distribution of products that do not harm the natural environment

answer

F

question

Strategic philanthropy involves linking a firm's products to a particular social cause on a sort-term basis.

answer

F

question

Green marketing refers to the packaging of products in green containers that blend in with the environment.

answer

F

question

Under President Kennedy's consumer bill of rights, consumers must have access and opportunity to review all relevant information about a product before buying it.

answer

T

question

The right to be informed means that consumers should be treated fairly when they complain to marketers about their products

answer

F

question

Marketers' contributions of resources to community causes such as education, recreation, and others illustrate social responsibility on a community-relations level

answer

T

question

When marketing activities deviate from accepted standards, the exchange process can break down, resulting in customer dissatisfaction, lack of trust, and lawsuits

answer

T

question

According to research, only a small percentage of consumers have a more positive opinion of an organization when it supports causes they care about.

answer

F

question

It is easy to distinguish between legal and ethical issues

answer

F

question

Marketing ethics goes beyond legal issues, although ethical disputes must sometimes be resolved in court.

answer

T

question

An ethical issue is an identifiable problem, situation, or opportunity requiring an individual to choose from among several actions that must be evaluated as right or wrong.

answer

T

question

Any time an activity causes managers or consumers to feel manipulated or cheated, a marketing ethics issue exists, regardless of the legality of that activity

answer

T

question

A marketer's failure to inform customers about changes in the quality of its products does not constitute an ethical issue.

answer

F

question

Pressures to substitute inferior materials to reduce costs may result in product-related issues.

answer

T

question

A bribe offered to benefit an organization is generally considered acceptable

answer

F

question

Bribery is a pricing-related ethical issue

answer

F

question

Price fixing, predatory pricing, and failure to disclose the full price associated with a purchase are pricing activities that do not result in ethical issues

answer

F

question

Manipulating a product's availability for purposes of exploitation and forcing intermediaries to behave in a specific manner are ethical issues in distribution

answer

T

question

Three important factors that influence ethical decisions in marketing are individual factors, organizational factors, and opportunity

answer

T

question

People learn values and principles through socialization by family members, social groups, religion, and formal education.

answer

T

question

Employees, coworkers, or superiors do not influence the ethical decision-making process.

answer

F

question

Top management sets the ethical tone for the entire organization

answer

T

question

The more a person is exposed to unethical activity in the organizational environment, the more likely it is that he or she will behave unethically.

answer

T

question

Opportunity is a favorable set of conditions that limit barriers or provide rewards

answer

T

question

If a person is rewarded for developing a deceptive advertisement, he or she probably will not engage in such behavior in the future

answer

F

question

It is possible to improve ethical behavior in an organization by eliminating unethical persons and improving the organization's ethical standards

answer

T

question

An organization can rid itself of "bad apples" through screening techniques and enforcement of its code of conduct.

answer

T

question

Codes of conduct (ethics) are formalized rules and standards that describe what the company expects of its employees in terms of ethical behavior

answer

T

question

Codes of conduct (ethics) must be detailed enough to take every situation into account.

answer

F

question

A marketing compliance program must have oversight by a high-ranking person who is known to respect legal and ethical standards.

answer

T

question

Employees can easily determine what behavior is acceptable even in organizations that do not have ethics compliance programs and policies on conduct

answer

F

question

Companies should promote individuals prone to misconduct to management positions.

answer

F

question

Open communication and coaching on ethical issues are essential to nurturing ethical conduct in marketing.

answer

T

question

It is not important to consistently enforce standards and impose penalties or punishment on those who violate codes of conduct.

answer

F

question

Marketing ethics and social responsibility mean the same thing.

answer

F

question

Marketing ethics concerns the impact of an organization's decisions on society, whereas social responsibility relates to individual decisions.

answer

F

question

Marketing ethics relates to individual and group evaluations about what is right or wrong in a particular marketing decision-making situation; social responsibility deals with the total impact of marketing decisions on society.

answer

T

question

If other persons within an organization approve of an activity and the activity is legal but not customary in the industry, the activity is probably both ethical and socially responsible

answer

F

question

To resolve a social responsibility issue, it is helpful to check with concerned consumer groups and industry or specific company policy regarding the activity

answer

T

question

Although openness is not the solution to ethics issues, it does create trust and facilitates learning relationships.

answer

T

question

If an ethical (or social responsibility) issue can withstand open discussion and result in agreements or limited debate, it is not really an ethical (or social responsibility) issue.

answer

F

question

Being socially responsible and ethical is easy

answer

F

question

There are few costs associated with being socially responsible and satisfying society's demands

answer

F

question

There is no evidence that being socially responsible and ethical is worthwhile

answer

F

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