Chapter 04
Ethical and Social Responsibility for Sustainable Marketing
Multiple Choice Questions
1. | Anheuser-Busch established its Corporate Social Responsibility (CSR) Department to
A. | promote the positive aspects of moderate beer consumption. |
B. | promote responsible drinking and curb underage drinking before it starts. |
C. | encourage recycling of both aluminum cans and glass bottles by ultimate consumers and suppliers. |
D. | educate employees about the importance of serving as role models by drinking responsibly themselves. |
E. | promote Anheuser-Busch as more socially responsible than its competitors. |
|
2. | The Family Talk About Drinking guidebook developed by Anheuser-Busch to help parents and other adults talk with children about underage drinking is an example of
C. | ethical behavior in marketing. |
D. | the social marketing concept. |
|
3. | Anheuser-Busch acts on what it views as an ethical obligation to its customers and the general public with its
A. | development of a low-carb beer. |
B. | annual sponsorship of the Super Bowl. |
C. | exclusive use of ingredients from American manufacturers and suppliers. |
D. | alcohol awareness and education programs. |
E. | commitment to maintaining the lowest prices possible without sacrificing taste. |
|
4. | In 2013, Budweiser launched its first responsible drinking blimp. The airship, which carried the "Designate a Driver" message, embarked on a 17-week tour across much of the country. Which of the following was the firm exhibiting?
A. | stockholder responsibility |
|
5. | Anheuser-Busch's commitment to preserving the natural environment by using renewable fuels such as biogas and landfill gas is an example of
B. | environmental preservation. |
D. | profit responsibility. |
|
6. | When Anheuser-Busch reaches out to its customers and the general public with its alcohol awareness and education programs and community support, and seeks to protect the natural environment and improve societal well-being, this is a reflection of
A. | its outreach to all its stakeholders. |
B. | its broader social responsibility. |
C. | its environmental preservation strategy. |
D. | its belief in ethical marketing. |
E. | its need to appeal to potential consumers. |
|
7. | Ethics refers to the
A. | religious tenets of a country or ethnic region that shape its culture. |
B. | social norms of a nation, community, or family. |
C. | values and standards of society that are enforceable in the courts. |
D. | moral principles and values that govern the actions and decisions of an individual or group. |
E. | universal laws of man that go beyond an individual or a group's beliefs of nations or religions. |
|
8. | The moral principles and values that govern the actions and decisions of an individual or group are referred to as
|
9. | Laws refer to
A. | a specific set of behaviors a given society considers to be ethical. |
B. | society's values and standards that are enforceable in the courts. |
C. | the agreed upon codes of behavior for a given nation, community, religious group, or family. |
D. | written documentation of a prescribed set of attitudes, beliefs, and values. |
E. | a code of ethics that defines what may be done in specific business circumstances. |
|
10. | Society's values and standards that are enforceable in the courts are referred to as
E. | the Consumer Bill of Rights. |
|
11. | Which one of the following statements most accurately distinguishes between laws and ethics?
A. | Laws reflect the beliefs of the majority of society while ethics reflect the beliefs of the minority of society. |
B. | Ethics deal with religious and moral beliefs while laws deal with social, economic, and environmental behaviors. |
C. | Ethics deal with internal (personal) issues while laws deal with external (social) issues. |
D. | There is no significant difference between laws and ethics; these terms can be used interchangeably. |
E. | Ethics deal with personal moral principles and values whereas laws are society's values and standards that are enforceable in the courts. |
|
12. | More than 70 percent of the physicians in the Maricopa County (Arizona) Medical Society agreed to establish a maximum fee schedule for health services to curb rising medical costs. All physicians were required to adhere to this schedule as a condition for membership in the society. The U.S. Supreme Court ruled that this agreement violated the Sherman Act and represented price fixing. This example illustrates that the physician's actions were
C. | unethical and illegal. |
|
13. | China is the world's largest tobacco-producing country and has 300 million smokers. Approximately 1 million Chinese die annually from smoking-related illnesses. This figure is expected to rise to more than 3 million by 2050. China restricts tobacco imports. U.S. trade negotiators advocate free trade, thus allowing U.S. tobacco companies to market their products in China. The U.S. trade negotiators are acting
A. | ethically but illegally. |
B. | ethically and legally. |
C. | unethically and illegally. |
D. | unethically but legally. |
E. | in ways that cannot be determined by the information provided. |
|
14. | An owner of a small publishing company allowed a friend who was starting a machine embroidery business to load the publishing company's copy of Microsoft Word onto the friend's computer. This activity is
A. | both legal and ethical. |
D. | both illegal and unethical. |
E. | sanctioned by the Business Software Alliance since only one copy was transferred. |
|
15. | There has been a public outcry about the ethical practices of businesspeople. Public opinion polls show that only 17 percent of U.S. adults rate the ethical standards of business executives as high or very high. If most business are thought to be acting within all relevant laws, this suggests that the businesspeople are perceived to be acting
A. | ethically but illegally. |
B. | ethically and legally. |
C. | unethically and illegally. |
D. | unethically but legally. |
E. | in a socially responsible manner. |
|
16. | If a representative of a hotel group offered an existing customer a free night in a hotel property, and when the customer checked into the hotel, the concierge invites the guest to attend a presentation about the hotel group's time share opportunities, this business practice would probably fall into which of the following categories?
E. | In today's media age, this practice has become universal; any bias is implied and need not be directly stated under the caveat emptor doctrine. |
|
17. | A poll by a public-opinion research firm found that 67 percent of North Americans are willing to boycott products on ethical grounds. This survey did not ask if the person who was acting on ethical grounds would first see if the boycott was based on facts. Which of the following statements describes a conclusion that should be drawn from this information?
A. | If you are an ethical person, you should act according to your instincts. |
B. | Realistically speaking, in order to stay in business, all businesses must occasionally behave unethically. |
C. | All businesses will act unethically unless forced by consumers to act morally. |
D. | There is nothing consumers can do to stop unethical business activities. |
E. | Boycotting a product without knowing the facts can be viewed as unethical. |
|
18. | There has been a public outcry about the ethical practices of businesspeople. Public opinion surveys show that only 17 percent of U.S. adults rate the ethical standards of business executives as
C. | similar to other professions. |
D. | typical of businesspeople around the world. |
|
19. | According to public opinion surveys, __________ are considered to be among the least ethical occupations in the United States.
A. | insurance company professionals |
C. | advertising practitioners |
D. | members of U.S. Congress |
|
20. | All of the following are reasons for the state of perceived ethical business conduct except
A. | a growing tendency for business decisions to be judged publicly by groups with different values and interests. |
B. | the increased pressure on businesspeople to make decisions in a society with diverse value systems. |
C. | an increase in the public's expectations of ethical business behavior. |
D. | ethical business conduct may have declined. |
E. | businesses are behaving more ethically during these difficult economic times. |
|
21. | Factors influencing personal moral philosophy and ethical behavior include __________, business culture and industry practices, and corporate culture and expectations.
A. | religious beliefs and practices |
B. | societal culture and norms |
C. | national and regional legislation |
E. | the universal concept of good versus evil |
|
22. | Which of the following is considered one of the major factors that influences an individual's personal moral philosophy and ethical behavior?
A. | organizational structures |
B. | societal culture and norms |
C. | national and local legislation |
D. | the U.S. Supreme Court |
E. | a nation's moral philosophy |
|
23. | Which of the following is considered one of the major factors that influences an individual's personal moral philosophy and ethical behavior?
A. | organizational structures |
C. | federal regulatory agencies |
D. | a nation's moral philosophy |
E. | business culture and industry practices |
|
24. | Factors influencing personal moral philosophy and ethical behavior include societal culture and norms, business culture and industry practices, and
A. | religious beliefs and practices. |
B. | corporate culture and expectations. |
C. | national and regional legislation. |
D. | universal core values. |
E. | the universal concept of good versus evil. |
|
25. | Culture refers to
A. | the set of values, ideas, and attitudes that are learned and shared among members of a group. |
B. | the music, art, theater, etc., that reflects the values of an entire nation. |
C. | the learned behaviors of a specific racial, ethnic, or religious group based on commonly shared ethical principles and protected by laws. |
D. | the combination of beliefs and behaviors accepted as correct regardless of a person's age, sex, race, or religion. |
E. | the set of values, ideas, attitudes, and norms of behavior that is learned and shared among the members of an organization. |
|
26. | In marketing, the set of values, ideas, and attitudes that are learned and shared among members of a group is referred to as
|
27. | Culture refers to the set of values, ideas, and attitudes that are learned and shared among members of a group. It also serves as a socializing force that
A. | reflects the will of the largest or most powerful minority. |
B. | is determined by the largest generational group at a given point in time. |
C. | becomes the basis of all legislation—federal, state, and local—in societies around the world. |
D. | expresses the diverse backgrounds of a nation's subcultures. |
E. | dictates what is morally right and just. |
|
28. | Which of the following is a socializing force that dictates what is morally right and just?
A. | federal regulatory agencies such as the FTC |
B. | federal, state, and local legislation |
C. | the U.S. Supreme Court |
E. | organizational core values |
|
29. | Culture refers to the set of values, ideas, and attitudes that are learned and shared among members of a group. Culture also serves as a socializing force that dictates what is morally right and just. This means that moral standards
A. | are relative to particular societies. |
B. | must be universal in order for cross-cultural marketing to be effective. |
C. | are fluid and very easy to change. |
D. | are cyclical so it is important to change with the times. |
E. | are concrete; something is either right or wrong. |
|
30. | Copyrights, trademarks, and patents are
B. | intellectual property. |
C. | rights granted to individuals or organizations by the WTO for a period of five years. |
D. | limited to books, music, and software. |
E. | subject to ISO 14000 requirements. |
|
31. | The unauthorized use of intellectual property can severely affect the owners of that property. This practice also
A. | levels the playing ground for less developing nations by eliminating years of research time. |
B. | accelerates innovation in that industry, as new and improved offerings enter the marketplace. |
C. | has a negative impact on the economy through the loss of jobs, royalties, wages, and tax revenue. |
D. | has a positive impact on an entire nation's cultural value system. |
E. | ensures that the prices to consumers are minimized as a result of increased competition. |
|
32. | In most countries, copyrights, trademarks, and patents are viewed as intellectual property, and unauthorized use, reproduction, or distribution of intellectual property is illegal. In a few countries, however, copying enjoys a long tradition, does not carry a stigma, and is legal. For example, copying a masterpiece may be historically considered an art form in its own right. The difference between these two groups of countries shows that __________ affect(s) the view of ethical behavior held in each country.
D. | corporate expectations |
E. | societal culture and norms |
|
33. | As the use of the Internet grows around the world, there must be as easy an exchange of ideas and information as possible between countries. One important issue is opt-in versus opt-out. In general, European websites have opt-in policies while U.S. websites have opt-out policies. Opt-in means customers must ask to be involved in data collection and marketing while opt-out companies automatically include customers in data collection unless the customer specifically asks not to be included. Europeans believe it is unethical to invade someone's privacy. Americans are not nearly as protective of their right to privacy. What ethical factor is illustrated by this example?
C. | societal culture and norms |
D. | changes in international law |
E. | organizational culture and expectations |
|
34. | Making counterfeit copies of Gucci purses, Tommy Hilfiger sportswear, and other international brands is pervasive in some countries because laws protecting intellectual property are unclear and sporadically enforced. A business introducing a product into such a country needs to know that its __________ may lead to trademark infringements.
D. | societal culture and norms |
|
35. | In marketing, the effective rules of the game, the boundaries between competitive and unethical behavior, and the codes of conduct in business dealings are referred to as
|
36. | Business culture affects ethical conduct both in the exchange relationship between sellers and buyers and in the
A. | competitive behavior among sellers. |
B. | purchase behavior among buyers. |
C. | price, service, and product responsibility to the ultimate consumer. |
D. | accountability of buyers and sellers to federal and state regulators. |
E. | perception of ethical behavior as viewed by employers of business firms, not nonprofit organizations. |
|
37. | Ethical exchanges between sellers and buyers should result in
A. | the seller making a profit at the expense of the buyer. |
B. | the buyer getting the product for the best price at the expense of the seller. |
C. | both parties to the exchange being better off after a transaction. |
D. | the seller offering buyers its products and services at cost, especially during a period of recession. |
E. | the buyer forming a strategic alliance with the seller. |
|
38. | The Latin phrase caveat emptor is a legal concept that means
B. | "Let the buyer beware." |
|
39. | The legal concept of "let the buyer beware," which was pervasive in the American business culture before the 1960s, is referred to as
|
40. | Caveat emptor refers to
A. | the legal concept of "let the buyer beware," which was pervasive in the American business culture before the 1960s. |
B. | the marketing concept of "be first or be last," implying that the first company to the marketplace wins. |
C. | the Latin term meaning that "all is fair in love and war," an attitude that was held by most marketers prior to the 1990s. |
D. | the legal concept of "such is life," which created many illegal as well as legal but unethical business practices during the 1980s. |
E. | the Latin phrase meaning "empty promises," which was a charge placed upon many firms during the period after WWII when products failed to meet their marketing claims. |
|
41. | Investors should understand that when purchasing stock, the principle of __________ is in effect. It is in the best interests of investors to do research on the company, so they will make a wise purchase.
|
42. | The Securities and Exchange Commission (SEC) works hard to prevent unscrupulous companies from "cooking" their books to paint investors and regulators a better financial picture than they really have. Yet, in the end, it is up to investors to research the companies in which they want to invest because __________ is the norm when investing in the stock market.
|
43. | In the private purchase of a used or "pre-owned" car, __________ places the burden on the buyer to make sure the car is worth the purchase price, so it is advisable to take the car first to a mechanic. This is because once the transaction is complete the buyer will not receive a warranty or return option from the seller.
|
44. | A statement that the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard, is referred to as the
D. | Consumer Bill of Rights. |
E. | Customer Consent Decree. |
|
45. | The Consumer Bill of Rights refers to a statement that
A. | codified the ethics of exchange between manufacturers, distributors, and suppliers, including the right to be paid. |
B. | codified the ethics of exchange between manufacturers, distributors, and suppliers, including the rights to safe working conditions, fair pay, and collaborative decision making. |
C. | codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard. |
D. | guaranteed consumers the right to be compensated through replacement, repair, or reimbursement for products that fail to perform as promised by the manufacturer. |
E. | guaranteed consumers the rights that are enumerated in the First Amendment to the U.S. Constitution. |
|
46. | The Consumer Bill of Rights codified the ethics of exchange between buyers and sellers. It was outlined by __________ in __________.
A. | President John F. Kennedy; 1962 |
B. | President Ronald Reagan; 1983 |
C. | President Bill Clinton; 1996 |
D. | President George W. Bush; 2003 |
E. | President Barack Obama; 2009 |
|
47. | In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. These were the right: (1) __________; (2) to be informed; (3) to choose; and (4) to be heard.
B. | to be compensated for product defects |
C. | to be treated with respect |
D. | be treated without prejudice |
|
48. | In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. These were the right: (1) to safety; (2) __________; (3) to choose; and (4) to be heard.
C. | to be treated with respect |
D. | to be treated without prejudice |
E. | to receive fair prices for both products and services |
|
49. | In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. These were the right: (1) to safety; (2) to be informed; (3) __________; and (4) to be heard.
A. | to have legal representation in a court of law |
B. | to exchange or return products within a reasonable period of time |
D. | to demand "rain checks" if advertised goods are out of stock |
E. | to be compensated for product defects |
|
50. | In 1962, President John F. Kennedy outlined a Consumer Bill of Rights that codified the ethics of exchange between buyers and sellers. These were the right: (1) to safety; (2) to be informed; (3) to choose; and (4) __________.
A. | to have legal representation in a court of law |
B. | to exchange or return products and services within a reasonable period of time |
C. | to receive fair prices for both products and services |
E. | to be compensated for product defects |
|
51. | The right to safety manifests itself in industry and federal safety standards for most products sold in the United States. The U.S. __________ routinely monitors the safety of 15,000 consumer products.
B. | Better Business Bureau |
C. | Consumer Product Safety Commission |
D. | Department of Commerce |
E. | Consumer Protection Agency |
|
52. | Companies need to be vigilant in product quality testing not simply from an ethical perspective but from a financial one as well. Personal claims and property damage from consumer product safety incidents cost companies more than __________ annually.
|
53. | Dell Inc. learned that the lithium-ion batteries in its notebook computers posed a fire hazard to consumers. The company recalled 2.7 million batteries and gave consumers a replacement before any personal injuries resulted. Dell was most likely concerned with consumers' right to
|
54. | Mattel's Cabbage Patch Snacktime Kids doll was designed to eat plastic toys that were drawn into the doll's motorized mouth. However, despite extensive testing, the doll was found to "eat" the child's hair and was subsequently recalled and discontinued. Mattel discontinued the item because of consumers' right to
C. | be treated courteously. |
|
55. | Recently, Chillafish recalled some of its Chillafish brand of children's balance bikes. The Consumer Product Safety Commission website stated that overinflated tires could cause the wheel rims to crack and send pieces of the plastic rim flying, posing a laceration hazard to consumers. Chillafish was responding to consumers' right to
C. | be treated courteously. |
|
56. | If a brand of imported toys was found to have very high levels of lead in the paint and was recalled, the action would be to protect consumers' right to
E. | be treated courteously. |
|
57. | A Pressure-Assist Flushing System for toilets, which uses air and water pressure to ensure a powerful flush, can burst inside toilet tanks, "releasing stored pressure," according to the Consumer Product Safety Commission. It was recalled following 14 reports of injuries. This action protected consumers' right to
E. | be treated courteously. |
|
58. | The FTC is concerned about the amount of personal information that is collected through websites because the consumer may not be made aware of how this information is being used. Over 92 percent of websites collect personal information, yet only about __________ percent make their customers aware of how that information is being used.
|
59. | The Children's Online Privacy Protection Act (1998) is a law designed to protect consumers' right to
C. | be treated courteously. |
|
60. | When shopping on the Internet, most consumers assume their personal information is confidential. If a web retailer proposed sharing its customer information with its partners without telling users, this is related most directly to consumers' right to
B. | be treated courteously. |
|
61. | When Toysmart.com filed for bankruptcy in June 2000, it listed its customer database as one of its assets even though it had assured its customers it would never disclose their information to any third party. People who had purchased products from Toysmart and were a part of its database were upset when they learned their private information was being treated as property that was for sale. These customers believed that according to the Consumer Bill of Rights, they should know how their private information would be used. In other words, Toysmart's former customers had a right to
|
62. | A current practice whereby retailers may demand cash or free goods in exchange for shelf space to stock new products is referred to as
|
63. | The right to be heard means that
A. | the U.S. Department of Commerce has the right to hear consumer complaints. |
B. | the American Marketing Association has the right to discipline marketers based on customer complaints. |
C. | consumers should have access to public policy makers regarding complaints about products and services. |
D. | companies should have access to public policy makers regarding complaints about fraudulent consumer practices. |
E. | consumers should have access to public policy makers regarding new product ideas. |
|
64. | The FTC established the Do Not Call Registry in 2003 for consumers who do not want to receive unsolicited telemarketing calls. Today, a telemarketer can be fined up to __________ for each call made to a telephone number posted on the registry.
|
65. | Business culture affects ethical behavior in competition. Two kinds of unethical behavior are most common:
A. | economic espionage and bribery. |
B. | price fixing and copyright infringement. |
C. | bribery and extortion. |
D. | price fixing and economic espionage. |
E. | economic espionage and antitrust infractions. |
|
66. | Economic espionage refers to
A. | the destruction of a competitor's products or services through physical damage of property or damage to their reputation. |
B. | persuading someone to act in one's favor, typically illegally or dishonestly, by a gift of money or other inducement. |
C. | an illicit payment made to someone who has facilitated a transaction or appointment. |
D. | the collection of trade secrets or other intellectual property from foreign countries or governments. |
E. | the clandestine collection of trade secrets or proprietary information about a company's competitors. |
|
67. | The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as
C. | marketplace espionage. |
D. | industrial surveillance. |
|
68. | All of the following are examples of economic espionage except
D. | searching a competitor's trash. |
E. | noncompete clause employment contract violations. |
|
69. | Economic espionage includes such activities as
A. | two firms hiring the same musician to write their company jingle. |
B. | hiring people who worked in an executive capacity at a competitor's firm, especially if they didn't have a non compete clause. |
C. | offering to accept all competitors' coupons, making their effectiveness as a promotional tool negligible. |
D. | searching through a competitor's trash. |
E. | marrying someone who works for a competitor in an executive position. |
|
70. | Economic espionage is most likely to occur in which type of industries?
D. | consumer packaged goods |
|
71. | A rival of a branded food product manufacturer was known to have asked a supplier of the food product manufacturer for certain ingredients, using secret codes, known only to the manufacturer and the supplier. The rival had picked the codes out of the manufacturer's refuse. This is an example of
A. | corporate intelligence. |
C. | clandestine trade secrets. |
E. | competitive surveillance. |
|
72. | A national pet health care provider recently took advantage of a rival's naïveté. The rival had "preannounced" a new pet coverage product in the pet wellness component of a tiny community newspaper six months prior to launching it. The national pet health care provider's marketing manager was notified immediately through a news monitoring service. The firm quickly added the same benefits to its own products, and got the offering to the market before its rival. The marketing manager relied on __________ to keep abreast of competitors' activities.
A. | legitimate environmental scanning |
E. | primary market research |
|
73. | Suppose you are a senior executive at PepsiCo and a Coca-Cola employee offers to sell you the marketing plan and sample for a new Coke product at a modest price. When asked this question in an online survey, __________ percent of marketing and advertising executives said they would buy the plan and product sample if there were no repercussions.
|
74. | An employee of Coca-Cola attempted to share its marketing plan with an employee of PepsiCo for a modest price. What should the PepsiCo employee do?
A. | Buy the marketing plan if assured there would be no legal or ethical repercussions. |
B. | Ignore the offer to buy the marketing plan and hope the ethical dilemma will go away. |
C. | Immediately contact Coca-Cola to advise it of the plot to sell the marketing plan. |
D. | Immediately report the offer to the Better Business Bureau. |
E. | Advise the Coca-Cola employee that it would be ethical to accept the plan if it was offered for free. |
|
75. | Thirty-three percent of PepsiCo's marketing and advertising executives say they would decline an offer to buy one of Coke's marketing plans and samples. Most of those said that they
A. | thought they might go to work for Coca-Cola one day and didn't want to spoil their employment chances. |
B. | would prefer competing ethically so they could sleep at night. |
C. | were afraid the media would find out. |
D. | knew they would get fired. |
E. | didn't want to disappoint their co-workers. |
|
76. | Why did 33 percent of PepsiCo's marketing and advertising executives say they would decline an offer to buy one of Coke's marketing plans and samples?
A. | They would prefer competing ethically so they could sleep at night. |
B. | They thought they might go to work for Coca-Cola one day and didn't want to spoil their employment chances. |
C. | They were afraid the media would find out. |
D. | They knew they would get fired. |
E. | They didn't want to disappoint their co-workers. |
|
77. | What was the consequence to the Coca-Cola employee who tried to sell classified information to PepsiCo?
A. | The employee was fired and no other legal action was taken since the practice is unfortunately too common. |
B. | The employee was given the choice of quitting or being demoted to a minimum wage job. |
C. | The employee was arrested for bribery and sentenced to five years house arrest. |
D. | The employee was sentenced to eight years in prison and ordered to pay $40,000 in restitution. |
E. | The employee was permitted to keep her original job (minus any bonuses), but had to attend a seminar on ethical behavior. |
|
78. | __________ is often disguised as gifts, consultant fees, and favors, but is used to gain an unethical advantage over competitors.
|
79. | Bribery is most likely to occur when
A. | industries experience little competition. |
B. | the country has reached a high level of economic development. |
C. | industries are high-tech in nature. |
D. | industries operate in an oligarchic competitive environment. |
E. | industries experience intense competition. |
|
80. | Bribery is most likely to occur when
A. | a monopoly exists in the industry. |
B. | industries experience intense competition. |
C. | the country has reached a high level of economic development. |
D. | industries are high-tech in nature. |
E. | industries operate in an oligarchic competitive environment. |
|
81. | Transparency International is an organization that
A. | monitors how developed nations deal with developing nations. |
B. | establishes procedures for ethical international business based on the ISO 7000 Code of Conduct. |
C. | monitors and ranks countries on the basis of their perceived level of bribery. |
D. | creates an acceptable international code of ethics. |
E. | makes sure federal, state, and local governments in the United States abide by the Consumer Bill of Rights. |
|
82. | Two laws specifically intended to curb economic espionage and bribery in international marketing are
A. | Economic Espionage Act and Foreign Corrupt Practices Act. |
B. | Transparency International Act and Dumpster Diving Act. |
C. | Global Rights Protection Act and Foreign Corrupt Practices Act. |
D. | Consumer Bill of Rights Act and Economic Espionage Act. |
E. | Fair Trade Practices Act and Bribery Protection Act. |
|
83. | Corporate culture refers to
A. | a formalized method for controlling the marketing environment. |
B. | the set of accepted standards and practices within a given industry. |
C. | the fundamental, passionate, and enduring principles of an organization that guide its conduct over time. |
D. | the set of values, ideas, and attitudes that is learned and shared among the members of an organization. |
E. | the formal statement of ethical principles and rules of conduct adopted by an organization. |
|
84. | The set of values, ideas, and attitudes that is learned and shared among the members of an organization is referred to as
C. | the socialization process. |
D. | a code of ethics and conduct. |
|
85. | Corporate culture manifests itself in many different ways: the ethical behavior of top management, expectations for ethical behavior present in formal codes of ethics, and
A. | contracts and agreements between members of the same industry. |
B. | state and local laws regarding ethical business behavior. |
C. | the dress codes, manner of work, and sayings of its employees. |
D. | the socially responsible behaviors of its customers. |
E. | the involvement of shareholders with an organization's day-to-day marketing decisions. |
|
86. | An Internet consulting company that develops complex marketing strategies for its customers has a manner of dress expressed as "We don't wear ties." This practice helps describe the Internet company's
C. | socialization process. |
|
87. | A code of ethics is a formal statement of ethical principles and
|
88. | A code of ethics is a formal statement of rules of conduct and
|
89. | A formal statement of ethical principles and rules of conduct is referred to as
C. | a core value pronouncement. |
|
90. | A code of ethics refers to
A. | a formal statement of moral and ethical business attitudes. |
B. | a formal statement of ethical principles and rules of conduct. |
C. | an informal guide of ethical principles and moral conduct. |
D. | the written document stating the beliefs and values of each employee in a firm. |
E. | a firm's itemized list of business activities that are and are not consistent with the company's mission statement. |
|
91. | All of the following are addressed by an organization's code of ethics except
A. | the dress, sayings, and manner of work of employees. |
B. | contributions to political parties and government officials. |
C. | customer and supplier relationships. |
D. | accurate recordkeeping. |
E. | conflicts of interest. |
|
92. | Which of the following statements describes one of the major reasons codes of ethics are violated?
A. | Most companies do not have a formal code of ethics. |
B. | Most companies overlook infractions if the action is unethical but legal. |
C. | Many codes of ethics lack specificity. |
D. | There is often a discrepancy between the written code of ethics of a firm and the personal and moral beliefs of individual employees. |
E. | There are very few violations in firms with written codes of ethics. |
|
93. | Which of the following is a major reason for the violation of ethics codes?
C. | lack of religious beliefs |
D. | fear of disciplinary action |
E. | perceived behavior of top management |
|
94. | A home repair referral network profiles home service companies for homeowners looking for a contractor or handyman. To ensure that recommended companies are reliable, the network checks the business licenses, insurance coverages, Better Business Bureau records, and three trade references. The recommended home service company also has to agree to __________, which includes maintaining professionalism and guaranteeing the quality of its work.
A. | a statement of cultural values |
B. | a statement of values and beliefs |
C. | an industry endorsement |
E. | a contract due diligence |
|
95. | Six executives of Tyson Foods, one of the world's largest poultry, beef, and pork processors, were arrested for the illegal smuggling of undocumented foreign workers into the United States to work at Tyson plants. Based on this information, one could conclude that Tyson's violations were the result of __________, one of the major reasons some company employees engage in unethical behavior.
A. | a mission statement that is too broad |
B. | the absence of a written core values statement |
C. | the absence of whistle-blowers |
D. | top management's behavior |
E. | the absence of a stakeholder code of ethics |
|
96. | The American Marketing Association Statement of Ethics is centered on three general norms. Marketers must do no harm, foster trust in the marketing system, and
A. | initiate fair and honest dialogues in developing markets. |
B. | embrace, communicate, and practice the fundamental ethical values that will improve consumer confidence in the integrity of the marketing exchange system. |
C. | champion new legislation that protects ethical business firms and punish those who abuse consumer trust. |
D. | support governmental agencies in their quest to identify and prosecute those who break the laws of ethical marketing. |
E. | contribute to society's well-being through charitable contributions and cause-related marketing efforts. |
|
97. | The American Marketing Association Statement of Ethics identifies six key aspirational ethical values. These include _________, responsibility, fairness, respect, openness, and citizenship.
|
98. | A health club wishes to follow the American Marketing Association Statement of Ethics and decides to offer a modified workout class at a very low price for senior citizens who otherwise might not be able to afford their services. This action exhibits which key AMA ethical value?
|
99. | Even though his business is very small, the owner of a local restaurant wants to follow the American Marketing Association Statement of Ethics. Every month there is a "company cookout." At the end of the meal, the employee (from owner to members of the cleaning staff) who had the best idea for improving the restaurant is honored and given a $25 gift certificate plus a T-shirt that reads, "Great Minds Think Like Me." This action exhibits which key AMA ethical value?
|
100. | A recent study of business executives reported that __________ percent had witnessed ethically troubling behavior.
|
101. | Employees who report unethical or illegal actions of their employers are referred to as
|
102. | Whistle-blowers refer to
A. | employees who are simultaneously employed by competing firms and who trade company secrets. |
B. | employees who blackmail or extort money from their employers. |
C. | employees who are coerced by their employers to participate in illegal or unethical activities. |
D. | customers who report unethical or illegal actions of the firms that market the offerings they purchased. |
E. | employees who report unethical or illegal actions of their employers. |
|
103. | An employee who contacts the SEC to report her company's use of illegal accounting procedures is an example of
|
104. | Which of the following statements best describes the activities of a whistle-blower?
A. | An employee is unhappy because his company is downsizing. |
B. | An employee tells the Consumer Product Safety Commission his company falsified safety reports on a child's car seat. |
C. | A salesperson for a company finds out that a member of his softball team, who works for another firm, "borrowed" some paper clips from that firm to use for his personal use and wants to "tell on him." |
D. | An employee criticizes his employer's finance personnel to his fellow co-workers for picking the wrong stocks in his retirement fund; they lost value last year due to a downturn in the stock market. |
E. | An employee spends the afternoon at work studying for her test rather than counting inventory as she was supposed to be doing. |
|
105. | Which of the following statements best describes the activities of a whistle-blower?
A. | A motorbike company's employees were sorry that 150 of the 10 million bikes the company sold had caught on fire. |
B. | A motorbike company's research engineers proved that the spate of fires in the company's bikes was the result of consumers' tinkering with the engine. |
C. | A former motorbike company's employee owned one of the company's bikes that caught on fire and slightly burned its rider. |
D. | The Consumer Product Safety Commission investigated fires of a motorbike company's products and ordered a recall to repair all of the 10 million units that had been sold. |
E. | A motorbike company's employee reported to the Consumer Product Safety Commission that the company knowingly manufactured an electrical system for the bikes that would catch on fire after prolonged use. |
|
106. | Two former sales representatives of a biotech company alleged the company strongly encouraged its sales force to search confidential medical records in dermatologist's offices in an attempt to find names of patients that would benefit from the use of one of the company's drugs to treat a skin disorder. After reporting this practice to the president of the company, one of the reps was fired and the other resigned after receiving a poor performance review. Both these two people sued the company, claiming they did not go along with the scheme because they objected to it as being unethical. These two sales representatives are
|
107. | Ultimately, ethical choices are based on
A. | the personal moral philosophy of the decision maker. |
B. | societal culture and norms. |
C. | business culture and industry practices. |
D. | laws enacted by Congress and regulations by federal and state governments. |
E. | chance and opportunity. |
|
108. | All of the following statements about a person's moral philosophy are true except
A. | moral philosophy cannot be learned through formal education. |
B. | moral philosophy is learned through the process of socialization with family. |
C. | moral philosophy is influenced by the corporate culture he/she is in. |
D. | moral philosophy is learned through the process of socialization with friends. |
E. | moral philosophy is influenced by the societal culture he/she is in. |
|
109. | Two prominent personal moral philosophies that have direct bearing on marketing practice are
A. | existentialism and pragmatism. |
B. | pragmatism and idealism. |
C. | moral idealism and utilitarianism. |
D. | social responsibility and personal ethics. |
E. | moral relativism and situational ethics. |
|
110. | A personal moral philosophy that considers individual rights or duties as universal, regardless of the outcome, is referred to as
A. | social responsibility. |
|
111. | Moral idealism refers to a personal moral philosophy that
A. | believes that good will always triumph over evil. |
B. | follows the Golden Rule, "You should treat others as you would like others to treat you." |
C. | all human beings are basically good. |
D. | considers individual rights or duties as universal, regardless of the outcome. |
E. | believes in "the greatest good for the greatest number." |
|
112. | Moral idealism refers to
A. | a personal moral philosophy that focuses on the greatest good for the greatest number by assessing the costs and benefits of the consequences of ethical behavior. |
B. | a democratic consensus of moral principles and laws that govern the behavior of individuals based on legislation adopted at the federal, state, and local levels. |
C. | a societal moral philosophy based on the Golden Rule of the Judeo-Christian ethic embodied in the U.S. Constitution's Bill of Rights. |
D. | a formal statement of ethical principles and rules of conduct. |
E. | a personal moral philosophy that considers individual rights or duties as universal, regardless of the outcome. |
|
113. | A moral philosophy that exists in the Consumer Bill of Rights and is favored by moral philosophers and consumer interest groups is referred to as
A. | social responsibility. |
|
114. | Why did 3M phase out the production of a chemical used as an ingredient in its Scotchgard fabric protector?
A. | New advances in fabric manufacturing, such as dirt repellant fibers, made the need for the product obsolete. |
B. | The product accidentally violated the patent rights of a competitor. |
C. | Traces of the potentially harmful chemical were found in humans, so the product was voluntarily halted. |
D. | New governmental legislation banned the production of one of the product's key component chemicals. |
E. | The company developed a new product that didn't contain this chemical and was less costly to produce, resulting in a significantly higher profit margin. |
|
115. | The 3M company stopped production of a chemical it had made for more than 40 years when tests showed the chemical could be accumulated in human tissue, even though the products in which it was used had no known harmful health or environmental effect. The voluntary action by 3M is an example of
|
116. | The 3M Co. voluntarily stopped the production of a chemical used as an ingredient in its Scotchgard fabric protector because minute amounts were found in the tissues of both animals and humans and the company feared there could be health effects at high levels. The moral philosophy that guided 3M in making this decision was
|
117. | Western Digital, the Irvine, California-based maker of disk drives, recalled about 400,000 of its hard drives because of a faulty internal chip. The chip would not affect the disk drive motor until after six to 12 months of use. This delay in the problem's appearance meant that many consumers would not think to blame the disk drive manufacturer. But, instead of taking the less expensive route of remaining quiet about the problem, Western Digital chose to offer replacement disk drives for all those that had the faulty chip. This action is an example of
|
118. | The owners of Ben & Jerry's Homemade Inc. adhere to the belief that the company should not harm the environment in any way but actually improve it. This is an example of
|
119. | A personal moral philosophy that focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior is referred to as
|
120. | According to the personal moral philosophy of __________, if the benefits exceed the costs, the behavior is ethical.
|
121. | The personal moral philosophy of utilitarianism underlies the economic tenets of
|
122. | Nestlé's marketing of Good Start infant formula, sold by Nestlé's Carnation Co., promoted the product as hypoallergenic. However, some severely milk-allergic infants experienced serious side effects after using Good Start, including convulsive vomiting. A Nestlé vice president defended the claim and product, saying, "I don't understand why our product should work in 100 percent of cases. If we wanted to say it was foolproof, we would have called it allergy-free. We call it hypo-, or less, allergenic." Nestlé's actions exemplify which of the following philosophies?
|
123. | The idea that organizations are part of a larger society and are accountable to that society for their actions is referred to as
A. | stakeholder responsibility. |
B. | social responsibility. |
C. | profit responsibility. |
|
124. | Social responsibility refers to
A. | a personal moral philosophy that focuses on the greatest good for the greatest number by assessing the costs and benefits of the consequences of ethical behavior. |
B. | a democratic consensus of moral principles and laws that govern the behavior of individuals based on legislation adopted at the federal, state, and local levels. |
C. | a societal moral philosophy based on the Golden Rule of the Judeo-Christian ethic found in the U.S. Constitution's Bill of Rights. |
D. | the view that organizations are part of a larger society and are accountable to that society for their actions. |
E. | a personal moral philosophy that considers individual rights or duties as universal, regardless of the outcome. |
|
125. | Which of the following statements about social responsibility is most accurate?
A. | The three concepts of social responsibility are economic responsibility, internal social responsibility, and external social responsibility. |
B. | Organizations are part of a larger society and are accountable to that society for their actions. |
C. | Societal responsibility focuses on the obligations an organization has to its customers, employees, suppliers, and distributors. |
D. | The duty of an organization is most easily understood at the societal responsibility level. |
E. | Social responsibility cannot be taught; it is an innate outgrowth of a person's moral and ethical belief system. |
|
126. | Gap Inc. ended its relationship with 23 foreign production facilities due to code violations. Several closings occurred because of the use of child labor. In response to these events, the Gap created a large team whose purpose is to travel worldwide to ensure compliance with its Code of Vendor Conduct. This is an example of
B. | profit responsibility. |
E. | social responsibility. |
|
127. | The residents of Alaska and people throughout the world were outraged when the Exxon Valdez crashed into a shoal and dumped millions of gallons of crude oil into the pristine waters of Prince William Sound. People were upset with Exxon's response to the disaster. The company was slow to admit its mistake and even slower to implement cleanup activities. Exxon was criticized for acting in a manner that would benefit the organization but not society. In short, Exxon did not demonstrate
A. | social responsibility. |
D. | profit responsibility. |
|
128. | Profit responsibility, societal responsibility, and stakeholder responsibility are three concepts of
C. | social responsibility. |
|
129. | There are three concepts of social responsibility, each relating to particular constituencies. Societal responsibility is characterized by
A. | the triple-bottom line, to achieve sustainable, long-term growth. |
B. | a focus on the obligations an organization has to those who can affect achievement of its objectives. |
C. | an engagement in open and free competition without deception or fraud. |
D. | an unrelenting customer focus. |
E. | a focus on seller-oriented outcomes. |
|
130. | There are three concepts of social responsibility, each relating to particular constituencies. Stakeholder responsibility is characterized by
A. | the triple-bottom line, to achieve sustainable, long-term growth. |
B. | a focus on the obligations an organization has to those who can affect achievement of its objectives. |
C. | an engagement in open and free competition without deception or fraud. |
D. | an unrelenting customer focus. |
E. | a focus on seller-oriented outcomes. |
|
131. | There are three concepts of social responsibility, each relating to particular constituencies. Profit responsibility is characterized by
A. | the triple-bottom line, to achieve sustainable, long-term growth. |
B. | a focus on the obligations an organization has to those who can affect achievement of its objectives. |
C. | an engagement in open and free competition without deception or fraud. |
D. | an unrelenting customer focus. |
E. | a focus on seller-oriented outcomes. |
|
132. | Profit responsibility refers to
A. | the obligation of a firm to price its products or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit. |
B. | the view that an organization has an obligation to those who can affect the achievement of its objectives. |
C. | the concept that no expansion or additional research and development will occur until a company is making a profit. |
D. | the idea that organizations are part of a larger society and are accountable to that society for their actions. |
E. | the duty of a firm to maximize profits for its owners or stockholders. |
|
133. | The duty of a firm to maximize profits for its owners or stockholders is referred to as
A. | social responsibility. |
D. | profit responsibility. |
E. | stakeholder responsibility. |
|
134. | The groups primarily served by a firm exhibiting profit responsibility include
A. | the general public, public interest groups, and the environment. |
B. | consumers, employees, and supplier/distributors. |
C. | owners and stockholders. |
D. | the general public and competitors. |
E. | state and federal government. |
|
135. | Who said the following quote: "There is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud"?
A. | Federal Reserve Chairman Ben Bernanke |
B. | Nobel Laureate Paul Krugman |
C. | President Barack Obama |
D. | Nobel Laureate Milton Friedman |
E. | President Ronald Reagan |
|
136. | Genzyme, the maker of Cerdelga, a drug that treats a genetic illness called Gaucher's disease that affects 10,000 people worldwide, has been criticized for charging up to $300,000 for a year's worth of Cerdelga. This is an example of the manufacturer adhering to its
A. | utopian responsibility. |
C. | social responsibility. |
D. | cause marketing strategy. |
E. | profit responsibility. |
|
137. | Stakeholder responsibility refers to
A. | the view that an organization has an obligation to those who can affect the achievement of its objectives. |
B. | the obligation of a firm to price its products or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit. |
C. | the duty of a firm to maximize profits for its owners or stockholders. |
D. | the concept that no expansion or additional research and development will occur until a company is making a profit. |
E. | the idea that organizations are part of a larger society and are accountable to that society for their actions. |
|
138. | The view that an organization has an obligation to those who can affect the achievement of its objectives is referred to as
A. | social responsibility. |
D. | stakeholder responsibility. |
E. | profit responsibility. |
|
139. | The groups primarily served by a firm exhibiting stakeholder responsibility include
A. | the general public, public interest groups, and the environment. |
B. | consumers, employees, and supplier/distributors. |
C. | owners and stockholders. |
D. | the general public, owners, and stockholders. |
E. | government, owners, and stockholders. |
|
140. | Source Perrier S.A., the supplier of Perrier bottled water, exercised __________ when it recalled 160 million bottles of water in 120 countries after traces of a toxic chemical were found in 13 bottles. The recall cost the company $35 million and the profit from $40 million in lost sales. Even though the chemical was not harmful to humans, the president of the company believed it was his duty to remove "the least doubt, as minimal as it might be, to weigh on the image of the quality and purity of our product."
E. | stakeholder responsibility |
|
141. | Toyota Motor Corp. executives were widely criticized for their failure to practice __________ when selected Toyota brands had been linked to sticky gas pedals, which can lead to sudden acceleration problems. The company recalled over 9 million cars worldwide under pressure from the National Highway Traffic Safety Administration and thousands of consumer complaints. After the recall, Toyota sales fell, which affected Toyota consumers, employees, suppliers, and dealers.
B. | stakeholder responsibility |
|
142. | Societal responsibility refers to
A. | the obligation that organizations have to (1) the preservation of the ecological environment and (2) the general public. |
B. | the obligation of a firm to price its products or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit. |
C. | the view that an organization has an obligation to those who can affect the achievement of its objectives. |
D. | the duty of a firm to maximize profits for its owners or stockholders. |
E. | the idea that organizations are part of a larger society and are accountable to that society for their actions. |
|
143. | The obligation organizations have to the preservation of ecological environment and to the general public is referred to as
A. | social responsibility. |
B. | stakeholder responsibility. |
D. | societal responsibility. |
E. | profit responsibility. |
|
144. | Most paint is neither biodegradable nor friendly to the environment because it is made with petroleum solvents. A builder who decided to build a subdivision with 500 homes and paint each with an environmentally friendly, soy-based paint (even though it costs more) would be practicing
A. | profit responsibility. |
C. | stakeholder responsibility. |
E. | societal responsibility. |
|
145. | The maker of Wrigley chewing gum funded a $10 million ad campaign aimed at getting African Americans to use doctors for regular health care maintenance instead of only when they are sick. This is an example of
A. | profit responsibility. |
C. | stakeholder responsibility. |
D. | societal responsibility. |
|
146. | The recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth is referred to as
A. | social responsibility. |
B. | the triple-bottom line. |
C. | the marketing concept. |
E. | social entrepreneurship. |
|
147. | Triple-bottom line refers to
A. | the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth. |
B. | the obligations an organization has to those who can affect achievement of its sales, profit, and market share objectives simultaneously. |
C. | the recognition of the need for organizations to be responsible simultaneously to shareholders, employees, and customers. |
D. | the obligations an organization has to practice profit, stakeholder, and societal responsibility simultaneously. |
E. | three different financial statements prepared in three different formats: one for governmental regulators, one for shareholders, and one for internal use. |
|
148. | All of the following are the result of an interest in the triple-bottom line except
A. | sustainable development. |
|
149. | The effort to meet today's (global) economic, environmental, and social needs without compromising the opportunity for future generations to meet theirs is referred to as
A. | sustainable marketing. |
D. | environmental marketing. |
|
150. | Green marketing refers to
A. | the purchasing of products from producers whose farming practices are Fair Trade certified. |
B. | the marketing efforts taken by new and smaller companies that lack both the experience and resources of their major competitors. |
C. | the marketing efforts to produce, promote, and reclaim environmentally sensitive products. |
D. | the marketing of products that have in no way been altered or reprocessed by artificial means. |
E. | the marketing of those products made exclusively from recycled materials. |
|
151. | At 3M, the "Pollution Prevention Pays" (3P) program has generated over 11,000 3P projects that eliminated more than 4 billion pounds of air, water, and solid-waste pollutants from the environment. This is an example of
D. | an ecological code of ethics. |
|
152. | Levi Strauss & Co. uses eight recycled plastic bottles, which make up at least 20 percent of the content, in fabricating each pair of its Waste < Less jeans. This is an example of
C. | an ecological code of ethics. |
|
153. | Which of the following is an example of green marketing?
A. | McDonald's added apple snacks to its Happy Meals targeted at children. |
B. | Lowe's and Home Depot discontinued the sale of lumber and other wood products. |
C. | Levi-Strauss marketed prewashed jeans. |
D. | Joe's Lawn Service offered a special spring cleanup promotion. |
E. | Walmart implemented buying practices that encourage its suppliers to use containers and packing made from corn, not oil-based resins. |
|
154. | Chrysler recycles thousands of tons of wood pallets, cardboard, and paper annually. Chrysler cars are 75 percent recyclable. Chrysler's recycling programs are examples of
D. | environmental marketing. |
E. | triple-top line marketing. |
|
155. | Many fast-food restaurants, including Burger King, McDonald's, and Wendy's, no longer use polystyrene containers (which do not degrade as quickly as paper in a landfill) for packaging their products. Rather, these firms wrap their burgers in recycled paper wrappers, containers, and bags. These fast-food restaurants are practicing
A. | triple-top line marketing. |
D. | an ecological code of ethics. |
|
156. | FedEx and UPS are converting their delivery trucks with standard diesel engines to more fuel-efficient and cleaner hybrid-electric vehicles, which can cut fuel costs by half and lower fuel emissions by 90 percent. This is an example of
B. | triple-top line marketing. |
C. | preemptive compliance. |
|
157. | ISO stands for
A. | International Service Organizations. |
B. | Integrated Standards Organization. |
C. | International Standards Organization. |
D. | International Sustainable Offerings. |
E. | Integrated Solutions Organization. |
|
158. | ISO 14000 refers to
A. | a plan to encourage the purchase of "Made in America" products. |
B. | an international plan to further green marketing practices. |
C. | an initiative for organizations to support the International Special Olympics Committee and its athletes without endangering its nonprofit status. |
D. | the name of the agreement that created the North American Free Trade Association. |
E. | a set of standards for registration and certification of a manufacturer's quality management and assurance system based on an on-site audit of practices and procedures developed by the International Standards Organization (ISO). |
|
159. | A global undertaking to further environmental quality and green marketing efforts is the
C. | Green World (GW) initiative. |
E. | Madrid Protocol initiative. |
|
160. | When the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products, this marketing practice is referred to as
A. | marketing philanthropy. |
C. | relationship marketing. |
D. | transactional marketing. |
|
161. | Cause marketing refers to
A. | when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products. |
B. | the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth. |
C. | marketing services provided at little or no cost for the purpose of promoting or supporting a worthy cause. |
D. | marketing efforts to produce, promote, and reclaim environmentally sensitive products. |
E. | when marketing actions that took place actually caused more harm than good. |
|
162. | A key difference between cause marketing and a charitable contribution is
A. | a charitable contribution provides an organization with a lower tax deduction. |
B. | there is no limit to the amount of charitable deductions a firm can make, but a firm is limited to the number of cause marketing efforts it can make during a fiscal year. |
C. | charitable donations are contributed at the sole discretion of the firm; cause marketing is the amount directly affected by consumers' purchases. |
D. | cause marketing is generally linked to public causes and concerns while straight charitable contributions are generally given to private institutions. |
E. | there is essentially no difference between a charitable contribution and cause marketing. |
|
163. | Cause marketing programs incorporate all three concepts of social responsibility by addressing public concerns, satisfying customer needs, and
A. | protecting the environment. |
B. | enhancing corporate sales and profits. |
C. | following industry-specific codes of ethics. |
D. | fulfilling societal objectives. |
E. | demonstrating ethical behavior. |
|
164. | Procter & Gamble supports disadvantaged youth and provides relief after disasters strike when its customers purchase selected company products. This is an example of
B. | philanthropic marketing. |
|
165. | Since 2006, Procter & Gamble has developed a successful brand campaign in partnership with UNICEF that includes the Pampers 1 Pack = 1 Vaccine initiative, which has protected 300 million women and their babies against maternal and neonatal tetanus. This is an example of
A. | philanthropic marketing. |
C. | the marketing concept. |
|
166. | MasterCard International links usage of its card with fund-raising for institutions that combat cancer, heart disease, child abuse, drug abuse, and muscular dystrophy. This is an example of
A. | philanthropic marketing. |
C. | the marketing concept. |
|
167. | Avon Products, Inc., focuses on different issues in different countries, including breast cancer, domestic violence, and disaster relief, among many others. For example, when a customer buys Avon's Pink Power Pro Nail Enamel, 100 percent of the profits go to Avon Breast Cancer Crusade. This is an example of
A. | philanthropic marketing. |
D. | the marketing concept. |
|
168. | A Toyota dealership in British Columbia, Canada, donated $50 to the Make-A-Wish Foundation of Canada for each Toyota purchased during a particular month. This is an example of how a small business can engage in
A. | philanthropic marketing. |
D. | public relations marketing. |
|
169. | American Express Co. pioneered cause marketing when it sponsored the renovation of the Statue of Liberty. This effort raised $1.7 million for the renovation, increased card usage among cardholders, and attracted new cardholders. This is an example of
B. | philanthropic marketing. |
D. | public relations marketing. |
|
170. | Eighty percent of consumers say they will switch to a brand or retailer that supports a good cause if the price and quality of brands or retailers are equal. In short, cause marketing may be a valued _______________ for brands and companies, all other things being equal.
B. | societal marketing trend |
C. | public relations exercise |
D. | transactional marketing practice |
|
171. | During its Drive to End Hunger campaign to help fight hunger among nearly 9 million older Americans, Quaker State donated 25 cents per five-quart bottle sold of specially marked oil products to the AARP Foundation that works on this issue. This is an example of
A. | philanthropic marketing. |
D. | public relations marketing. |
E. | transactional marketing. |
|
172. | American Express Co. pioneered cause marketing when it sponsored the renovation of
B. | Madison Square Garden. |
D. | the Statue of Liberty. |
E. | Radio City Music Hall. |
|
173. | When American Express pioneered cause marketing, it raised $1.7 million to renovate a national icon, increased usage among cardholders, and
A. | became the only credit card accepted for admission to the sight. |
B. | decreased outstanding debt on previously unpaid credit cards. |
C. | was able to raise interest rates without facing customer complaints. |
D. | received a tax credit that more than paid for the original campaign. |
E. | attracted new cardholders. |
|
174. | Which of the following statements concerning cause marketing is most accurate?
A. | The vast majority of consumers say they will switch to a brand that supports a good cause, provided the price and quality of the brands are equal. |
B. | The profits generated by cause marketing are usually based in "goodwill" rather than actual revenue. |
C. | The positive effects of cause marketing are significant during the promotion, but they lose their benefit almost immediately after the promotion runs its course. |
D. | Cause marketing rarely creates a point of difference for the firm that engages in this marketing practice. |
E. | Women are much more suspicious about the sincerity of cause marketing programs than men; therefore, their contributions are significantly less. |
|
175. | A systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility is referred to as
C. | the strategic marketing process. |
E. | an accountability analysis. |
|
176. | A social audit refers to
A. | a systematic assessment of a firm's compliance to fair hiring practices and commitment to diversity. |
B. | a companywide assessment of employees at all levels to determine the compliance to the organization's code of ethics. |
C. | conducting business in a way that protects the natural environment while making economic progress. |
D. | a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility. |
E. | the ability to understand one's own emotions and the emotions of people with whom one interacts on a daily basis. |
|
177. | Converting socially responsible ideas into actions involves careful planning and monitoring of programs. Many companies develop, implement, and evaluate their social responsibility efforts by means of
|
178. | The first step in any social audit is to
A. | evaluate current social responsibility programs. |
B. | determine the amount of money that can be allocated for societal marketing programs. |
C. | recognize a firm's social expectations and the rationale for engaging in social responsibility endeavors. |
D. | identify social responsibility causes consistent with the company's mission. |
E. | determine the types of resources needed to achieve social responsibility objectives. |
|
179. | A social audit is a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility. The five steps of the audit are: (1) recognition of a firm's social expectations and the rationale for engaging in social responsibility endeavors; (2) __________; (3) determination of organizational objectives and priorities for programs and activities it will undertake; (4) specification of the type and amount of resources necessary to achieve social responsibility objectives; and (5) evaluation of social responsibility programs and activities undertaken and assessment of future involvement.
A. | identification of environmental forces that could interfere with the firm's plans |
B. | evaluation of possible benefits both tangible and intangible to the firm's triple-bottom line |
C. | identification of social responsibility causes or programs consistent with the company's mission |
D. | selection of a team leader and assignment of tasks and task deadlines for team members |
E. | creation or selection of a theme, slogan, spokesperson, etc., for marketing cohesiveness |
|
180. | What is the fifth and last step of a social audit?
A. | evaluation of social responsibility programs and activities undertaken and assessment of future involvement |
B. | determination of organizational objectives and priorities for programs and activities it will undertake |
C. | specification of the type and amount of resources necessary to achieve social responsibility objectives |
D. | recognition of a firm's social expectations and the rationale for engaging in social responsibility endeavors |
E. | identification of social responsibility causes or programs consistent with the company's mission |
|
181. | Conducting business in a way that protects the natural environment while making economic progress is referred to as
B. | sustainable development. |
C. | stakeholder responsibility. |
D. | the marketing concept. |
E. | environmental marketing. |
|
182. | Sustainable development refers to
A. | placing restraints on a company's growth until all ancillary support services are in place to ensure a new venture's success. |
B. | global economies that are slowly moving from an agrarian-base to an industrial base. |
C. | adhering to worldwide standards for environmental quality and green marketing practices. |
D. | marketing efforts to produce, promote, and reclaim environmentally sensitive products. |
E. | conducting business in a way that protects the natural environment while making economic progress. |
|
183. | Which of the following statements about sustainable development is most accurate?
A. | A company that always makes its furniture from rare tropical woods is practicing sustainable development. |
B. | Currently, sustainable development is a luxury that only large multinational companies can engage in. |
C. | Sustainable development is achieved when a firm's sales growth rate increases an average of 1 to 2 percent a year for a period of at least five years. |
D. | A mining company that replants native vegetation after mining ceases practices sustainable development. |
E. | Unfortunately, only a small number of consumers care whether a company practices sustainable development. |
|
184. | Arrowhead brand Mountain Spring Water recently changed its bottle by reducing the size of its label by one-third, using 30 percent less plastic, and making the bottle more flexible for easier recycling. These efforts are part of the company's goal to engage in
A. | sustainable development. |
E. | environmental downsizing. |
|
185. | Consumers have an obligation to __________ in the exchange process and in the use and disposition of products.
A. | get as much as they can for their money |
B. | support cause marketing efforts |
C. | reveal any and all pertinent personal information |
D. | act ethically and responsibly |
E. | seek products with ISO 14000 certification |
|
186. | Practices that include filing warranty claims after the claim period, misredeeming coupons, and making fraudulent returns of merchandise are examples of
A. | normal and reasonable consumer behavior. |
B. | unethical practices by consumers. |
C. | acceptable consumer code of ethics. |
D. | costs to be passed along to shareholders as a part of doing business. |
E. | violations of the Consumer Bill of Rights. |
|
187. | Practices such as misredeeming coupons, making fraudulent returns of merchandise, filing warranty claims after the claim period, and so on are
A. | acceptable provided the merchant providing the service has not violated the Consumer Bill of Rights. |
B. | acceptable provided the salesperson doesn't mind. |
C. | occasionally permitted when two different firms are competing for a customer's business and both are using equally less than ethical practices. |
D. | not acceptable because consumers also have an obligation to act ethically and responsibly. |
E. | not acceptable unless the participants are nonprofit organizations or charities. |
|
188. | Which of the following statements about consumer ethics is most accurate?
A. | Consumer complaints about online auction fraud outnumber all reports of online crime. |
B. | The cost to marketers of unethical consumer behavior is negligible in terms of lost sales. |
C. | The potential cost to marketers of unethical consumer behavior is dramatically reduced by investing in loss prevention training. |
D. | Retailers lose about $1 million a day from shoplifting. |
E. | At some point, every person shoplifts or participates in an unethical exchange; to retailers, it is simply the cost of doing business. |
|
189. | Which of the following statements about consumer ethics is most accurate?
A. | Most consumers' unethical acts are motivated by economic need. |
B. | Some consumers believe that if they can get away with unethical behavior, it is worth doing. |
C. | If "everyone else does it," then that becomes the norm—so, ultimately, there is no such thing as unethical consumer behavior. |
D. | Most consumers who shoplift do so because a salesperson has been insulting or rude. |
E. | Few customers behave unethically toward smaller, independently owned businesses. Most unethical consumer behavior is against "big business." |
|
190. | Although research shows consumers are sensitive to ecological issues, they may not be willing to purchase a given product or service solely on the basis of its environmental claims. They may (1) be unwilling to sacrifice convenience, and pay higher prices to protect the environment, and (2)
A. | be unable to make an ecologically sound purchase because eco-friendly products are significantly less expensive, indicating that they are of lesser quality. |
B. | lack the knowledge to make informed decisions dealing with the purchase, use, and disposition of products. |
C. | believe that protecting the environment in one area actually can create disruptions in another area. |
D. | believe that ecological issues are still a matter of opinion even within the scientific community itself. |
E. | believe that public sentiment toward ecological issues has now reached a consensus—in today's economic downturn, jobs are more important than environmental protection issues. |
|
191. | Making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice is referred to as
|
192. | Greenwashing refers to
A. | marketing efforts to produce, promote, and reclaim environmentally sensitive products. |
B. | conducting business in a way that protects the natural environment while making economic progress. |
C. | the practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice. |
D. | the practice of deliberately concealing the mistakes that polluters make regarding the environmental disasters they perpetrated. |
E. | the recognition of the need for organizations to improve the state of people, the planet, and profit simultaneously if they are to achieve sustainable, long-term growth. |
|
193. | Toyota employs all of the following principles and practices as part of "The Toyota Way" except
A. | continuously improve business processes and products. |
B. | empower individuals and teams. |
E. | provide personalized and customized products. |
|
194. | One of Toyota's top goals has been to develop advanced vehicle technologies to complement existing ones. The G21 vision arose out of this goal, which eventually led to the production of which of the following vehicles?
A. | Lexus 450 all-electric car |
B. | Toyota Tundra gas-electric hybrid truck |
C. | Scion iQ micro-subcompact compressed natural gas car |
D. | Toyota Prius gas-electric hybrid car |
E. | Toyota Camry hydrogen fuel cell hybrid car |
|
195. | In a recent survey, consumers were asked the following question: "Who should take the lead in addressing environmental issues?" Results suggest that consumers expect that __________ should.
A. | the federal government |
|
Short Answer Questions
196. | Explain how Anheuser-Busch practices societal responsibility.
|
197. | Describe the difference between ethics and laws.
|
198. | Explain the four ways to classify marketing decisions according to ethical and legal relationships.
|
199. | Provide concrete examples for the four classifications marketing decisions according to ethical and legal relationships.
|
200. | Describe each of the three factors included in the framework for understanding ethical behavior that influence one's personal moral philosophy and ethical behavior.
|
201. | Explain the difference between societal culture and business culture.
|
202. | How did President John F. Kennedy change the concept of American business culture away from caveat emptor in the 1960s?
|
203. | Business culture affects ethical behavior in competition. Briefly discuss the two most common kinds of unethical competitive behavior. In answering, provide concrete examples for both.
|
204. | Identify and describe the two types of personal moral philosophy.
|
205. | Define the moral philosophy of utilitarianism and explain its relationship to capitalism.
|
206. | Body Bazaar: The Market for Human Tissue in the Biotechnology Age is a book by Lori Andrews and Dorothy Nelkin. According to the book, "Body parts are bought and sold for medical research, diagnostics, and therapies. They are marketed to museums and personal collectors. And pieces of people are increasingly being used as raw materials for products—from placenta-enriched shampoos to experimental DNA-run computers. Blood has become one of the most valuable commodities on Earth. While petroleum sells for $100 a barrel, an equivalent quantity of blood products is worth $67,000." Use this quote to explain why ethics is such a difficult concept to understand.
|
207. | Describe the three major concepts of social responsibility.
|
208. | An increasing percentage of turkeys are now being marketed as "free range." Consumers typically pay $1 more per pound for free-range turkeys, which are thought to have lived more "humane" or "avian" lives—and as a result, to taste better than conventionally raised turkeys. The USDA defines a free-range bird as one that has been allowed "access to the out-of-doors." Are turkey growers who allow their birds to access the out-of-doors only moments before they are killed acting in a socially responsible manner?
|
209. | A recent survey found that 79 percent of Internet and e-commerce companies take absolutely no social responsibility. Even more worrying is the finding that 75 percent of these Internet companies justify this omission on the grounds that they don't have any environmental or social impacts, while 55 percent said they didn't have time to think about these issues, and 50 percent said they didn't have the expertise to address them. Would these Internet-based companies benefit from acting more socially responsible? Explain your answer.
|
210. | Define green marketing and provide an example.
|
211. | What is the difference between standard charitable contributions and cause marketing?
|
212. | MasterCard International links usage of its card with fund-raising for institutions that combat cancer, heart disease, child abuse, and muscular dystrophy. MasterCard gives a modest percentage of charges from its credit card charges to the institutions. What is this called and how does it affect cardholders' behavior?
|
213. | What are the five steps in a social audit?
|
214. | Research on unethical consumer behavior, such as fraudulent automobile insurance claims or unauthorized downloading of music, movies, and software, indicates that these acts are rarely motivated by economic need. What influences these behaviors?
|