Mktg 351- Cousley (Ch 4) – Flashcards

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question
Which of the following statements about social responsibility is correct?
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Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society.
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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
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social responsibility
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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
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social responisibility
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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
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social responsibility.
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Socially responsible business practices have provided all of the following benefits except
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reducing marketing costs.
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The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders is called
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marketing citizenship.
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Employees, customers, communities, and investors are all considered ______ in relation to marketing.
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stakeholders
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Any constituent who has a claim in some aspect of a company's products, operations, markets, industry, or outcomes is known as a(n)
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stakeholder.
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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.
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stakeholder
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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
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a stakeholder orientation
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Which of the following is not a dimension of social responsibility and marketing citizenship?
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technological
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Which of the following is not one of the four dimensions of social responsibility presented in your text?
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consumerism
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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?
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Ethical and philanthropic
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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.
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economic
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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.
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be profitable
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As a firm fulfills its basic economic responsibilities, it must simultaneously
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obey laws and regulations
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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.
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legal
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According to the text, marketing ethics refers to principles and standards that define
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acceptable conduct in marketing
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Marketing ethics
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refers to principles and standards that define acceptable conduct in marketing.
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The most basic principles of marketing ethics are
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written as laws and regulations.
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A business that contributes resources to the community to improve the quality of life is taking on a(n) ___________ responsibility.
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philanthropic
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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.
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philanthropic
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At the top of the pyramid of social responsibility for business are ___________ responsibilities
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philanthropic
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Actions that promote human health and welfare address the _______ dimension of the pyramid of social responsibility.
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philanthropic
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The practice of linking a firm's product marketing to a particular social cause on an ongoing or short-term basis is known as
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cause-related marketing.
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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
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cause-related marketing
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Which of the following is the best definition of cause-related marketing?
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Linking a firm's products to a particular social cause—either short term or long term
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The close relationship of Home Depot's philanthropic initiatives and its business goals is an example of
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strategic philanthropy.
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Who are the primary recipients of the benefits of strategic philanthropy?
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Companies and society
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Which of the following is a primary difference between cause-related marketing and strategic philanthropy?
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Strategic philanthropy can take on both a financial and nonfinancial format while cause-related marketing only involves financial contributions.
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Which of the following is the best example of strategic philanthropy for Staples, the large office supply chain?
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Providing low-income families with school supplies and computer training
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Which of the following refers to a firm's specific development, pricing, promotion, and distribution of products that do not harm the environment?
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Green marketing
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Products that may do harm to the natural environment are inconsistent with
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Green marketing
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Which of the following is the best definition of green marketing?
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Developing, pricing, promoting, and distributing products that do not harm the natural environment
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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?
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The natural environment
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StarKist Tuna has frequently extolled its dolphin-safe methods of catching tuna. This is an example of
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green marketing.
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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
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Eco-label.
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Which of the following is not one of the four objectives that environmentalists believe companies should implement in order to sustain the natural environment?
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Force consumers to recycle products
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All of the following are goals of green marketing except
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making the work force match the population in terms of diversity
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Instead of addressing the question_______, many environmentalists and marketers believe the question should be ______.
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"What should we do with our waste?"; "How can we produce products without waste?"
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According to some environmentalists, what are the three types of products that all products should be reduced to?
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Consumables, durable goods, and unsalables
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Honda produces a variety of automobiles, which makes the company a producer of
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durable goods.
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As far as prices are concerned, environmentalists believe prices should
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reflect the direct cost as well as the cost of air, water, and soil used
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What do environmentalists set as an objective for profitability?
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Environmentalism should be made profitable, and companies attempting to protect the environment should not have to compete with those harming it in the marketplace.
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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?
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Reinvent the concept of a product.
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Consumerism is
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the efforts of independent individuals, groups, and organizations to protect the rights of consumers
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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
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consumerism.
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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
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consumerism.
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Who of the following is a famous consumer activist?
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Ralph Nader
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Who drafted the Consumer Bill of Rights?
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John F. Kennedy
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The four basic rights outlined in the Consumer Bill of Rights include the right to safety, the right to be heard, the right to
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choose, and the right to be informed.
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Product testing for reliability and quality helps to ensure a consumer's right to
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safety.
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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.
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be informed
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According to President Kennedy's consumer bill of rights, the right to choose means that
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consumers should have access to a variety of products and services at competitive prices
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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.
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choose
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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
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be heard
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How would marketers most likely benefit from the consumer's right to be heard?
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The company can use the information to make its products better.
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According to the consumer bill of rights, the right to be informed means that
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consumers should have access to and the opportunity to review all relevant information about a product before buying it.
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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?
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Community relations
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Various stakeholders and _______ determine the acceptable standards of conduct involving ethics
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the organizations' ethical climate
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Ethical standards for acceptable conduct for a company should
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be based on company, industry, government, customer, and society viewpoints
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When is the best time to deal with marketing exchange problems concerning ethics?
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During the strategic planning process
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The boundary between legal and ethical issues is
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blurred
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A marketing ethics issue likely exists when
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an individual or organization must choose from among several actions that must be evaluated as right or wrong.
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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.
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right or wrong
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An ethical issue is
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an identifiable problem, situation, or opportunity requiring an individual to choose from among several actions that must be evaluated as right or wrong.
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_____ ethical issues generally surface when companies fail to disclose risks associated with a product or information regarding its function, value, or use.
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Product-related
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Product-related ethical issues arise when marketers
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fail to disclose information to consumers about the risks associated with using a product
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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?
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Product
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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.
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product-related
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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?
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promotion
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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?
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promotion
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When a purchasing agent for Intel is offered a bribe by a silicon manufacturer salesperson
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a promotion-related ethical issue has been created.
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What are some of the common price-related ethical issues?
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Predatory pricing and price fixing
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Pharmaceutical companies have at times been accused of acting unethically by taking advantage of customers in the area of
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pricing.
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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
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pricing
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Distribution-related ethical issues arise when marketers
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force channel intermediaries to behave in a specific manner.
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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.
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distribution
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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?
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Attitudes toward religion
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All of the following are factors that influence the ethical decision-making process except
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salary or wages.
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Three factors that influence the ethical decision-making process in marketing include
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individual factors, organizational factors, and opportunity
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Since most ethical choices pertaining to marketing decisions are jointly made, an organization must ensure the _____________ reflects the organization's values, beliefs and norms.
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organizational or corporate culture
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Ethical choices in business situations are most often made
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jointly in work groups and committees.
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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
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corporate culture.
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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
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corporate culture
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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?
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Extracurricular activities and work habits
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Which of the following employees is most responsible for setting the ethical tone for the entire marketing organization?
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Chief executive officer
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A set of values, beliefs, goals, norms, and rituals shared by members of an organization is called
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corporate culture
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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?
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The more a person is exposed to unethical activity in the organization, the more likely he or she will behave unethically.
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Opportunity provides a pressure that may determine ethical decisions in marketing. Opportunity is best thought of as
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a favorable set of conditions that limit barriers or provide rewards.
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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.
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opportunity
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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
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use similar sales tactic again.
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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.
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opportunity
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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
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opportunity.
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Which of the following statements best summarizes the perspective that most marketing managers have on unethical behavior?
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Most do not believe that unethical conduct will lead to success and refrain from taking unethical opportunities
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___________ is (are) most likely to improve ethical behavior in a marketing organization.
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Eliminating unethical individuals and improving the organization's ethical standards
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Which of the following would be consistent with Johnson Chemicals' understanding of the "bad apple" concept of improving the ethical conduct of salespeople?
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Firing unethical salespeople
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It is possible to improve ethical behavior in an organization by
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improving the organization's ethical standards and eliminating unethical persons
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___________ are formalized rules and standards that describe what a company expects of its employees in terms of ethical behavior.
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Codes of conduct
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Codes of conduct are also frequently known as
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codes of ethics
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Which of the following statements about codes of conduct is true?
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Most large corporations have formal codes of conduct
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Which one of the following statements about codes of conduct (ethics) is false?
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They must be detailed enough to take into account many possible situations.
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Who is typically responsible for creating, distributing, and enforcing a formal code of conduct?
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Ethics officer
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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
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ethics officer
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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.
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opportunity
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Which of the following is not usually a responsibility of an ethics officer?
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Drafting, disseminating, and updating a mission statement
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Because laws are often difficult to interpret and understand, company codes of conduct and compliance programs should
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incorporate both legal and ethical concerns that the company deems most appropriate.
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Which of the following statements about implementing an ethics and legal compliance program is false?
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It rarely needs to be revised.
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What is the major difference between social responsibility and marketing ethics?
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Social responsibility deals with the total effect of marketing decisions on society, whereas marketing ethics relates to individual and group evaluations in marketing situations.
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Which of the following statements is false?
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Social responsibility and marketing ethics are the same thing and can be used interchangeably
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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
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monitor changes and trends in society's values
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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
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consumers are willing to pay higher prices for them
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Companies that incorporate ethics and social responsibility into their strategic plans are likely to experience
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improved marketing performance
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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.
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philanthropic
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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
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social responsibility.
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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.
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code of conduct
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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?
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Costly programs to develop and maintain
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Silk Soymilk's sponsorship of the FarmAid concert is best thought of as an example of its
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philanthropic activities.
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Silk Soymilk's use of organic, non-genetically modified soybeans in its product is an example of
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green marketing
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The use of wind power to offset energy consumption by Silk Soymilk's parent company demonstrates its commitment to
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social responsibility
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Silk Soymilk's parent company, WhiteWave Foods, is currently operating at the _____ level of the social responsibility pyramid
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philanthropic
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An organization's obligation to maximize its positive impact and minimize its negative impact on society is known as social accountability
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F
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Social responsibility is an organization's obligation to maximize its positive impact and minimize its negative impact on society.
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T
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Marketing citizenship refers to an organization's obligation to maximize its positive impact and minimize its negative impact on society
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F
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Four dimensions of social responsibility are economic, legal, ethical, and philanthropic.
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T
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At the most basic level of marketing citizenship, marketers have an obligation to contribute funds to philanthropic causes.
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F
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Marketing ethics refers to principles and standards that define acceptable conduct in marketing
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T
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Cause-related marketing refers to the specific development, pricing, promotion, and distribution of products that do not harm the natural environment
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F
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Strategic philanthropy involves linking a firm's products to a particular social cause on a sort-term basis.
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F
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Green marketing refers to the packaging of products in green containers that blend in with the environment.
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F
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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
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The right to be informed means that consumers should be treated fairly when they complain to marketers about their products
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F
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Marketers' contributions of resources to community causes such as education, recreation, and others illustrate social responsibility on a community-relations level
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T
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When marketing activities deviate from accepted standards, the exchange process can break down, resulting in customer dissatisfaction, lack of trust, and lawsuits
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T
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According to research, only a small percentage of consumers have a more positive opinion of an organization when it supports causes they care about.
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F
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It is easy to distinguish between legal and ethical issues
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F
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Marketing ethics goes beyond legal issues, although ethical disputes must sometimes be resolved in court.
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T
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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.
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T
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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
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T
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A marketer's failure to inform customers about changes in the quality of its products does not constitute an ethical issue.
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F
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Pressures to substitute inferior materials to reduce costs may result in product-related issues.
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T
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A bribe offered to benefit an organization is generally considered acceptable
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F
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Bribery is a pricing-related ethical issue
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F
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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
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F
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Manipulating a product's availability for purposes of exploitation and forcing intermediaries to behave in a specific manner are ethical issues in distribution
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T
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Three important factors that influence ethical decisions in marketing are individual factors, organizational factors, and opportunity
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T
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People learn values and principles through socialization by family members, social groups, religion, and formal education.
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T
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Employees, coworkers, or superiors do not influence the ethical decision-making process.
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F
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Top management sets the ethical tone for the entire organization
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T
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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.
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T
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Opportunity is a favorable set of conditions that limit barriers or provide rewards
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T
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If a person is rewarded for developing a deceptive advertisement, he or she probably will not engage in such behavior in the future
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F
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It is possible to improve ethical behavior in an organization by eliminating unethical persons and improving the organization's ethical standards
answer
T
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An organization can rid itself of "bad apples" through screening techniques and enforcement of its code of conduct.
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T
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Codes of conduct (ethics) are formalized rules and standards that describe what the company expects of its employees in terms of ethical behavior
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T
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Codes of conduct (ethics) must be detailed enough to take every situation into account.
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F
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A marketing compliance program must have oversight by a high-ranking person who is known to respect legal and ethical standards.
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T
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Employees can easily determine what behavior is acceptable even in organizations that do not have ethics compliance programs and policies on conduct
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F
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Companies should promote individuals prone to misconduct to management positions.
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F
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Open communication and coaching on ethical issues are essential to nurturing ethical conduct in marketing.
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T
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It is not important to consistently enforce standards and impose penalties or punishment on those who violate codes of conduct.
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F
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Marketing ethics and social responsibility mean the same thing.
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F
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Marketing ethics concerns the impact of an organization's decisions on society, whereas social responsibility relates to individual decisions.
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F
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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
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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
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F
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To resolve a social responsibility issue, it is helpful to check with concerned consumer groups and industry or specific company policy regarding the activity
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T
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Although openness is not the solution to ethics issues, it does create trust and facilitates learning relationships.
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T
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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.
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F
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Being socially responsible and ethical is easy
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F
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There are few costs associated with being socially responsible and satisfying society's demands
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F
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There is no evidence that being socially responsible and ethical is worthwhile
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F
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