Chapter 4
The legal concept of caveat emptor closely translates to ______. "let the seller beware" "the buyer has the advantage" "let the buyer beware" "the seller has the advantage"
"let the buyer beware"
least ethical occupations
Advertising practitioners insurance agents Telemarketers Car salespeople
Societal responsibility extends the concept of social responsibility to which of the following? (Select all that apply) Cultural preservation Government institutions The general public Preservation of the ecological environment
The general public Preservation of the ecological environment
Which personal moral philosophy focuses on "the greatest good for the greatest number"? Structuralism Moral idealism Perfectionism Utilitarianism
Utilitarianism
code of ethics
a formal statement of ethical principles and rules of conduct
Public opinion surveys indicate that most people feel the ethical standards of business executives ______. are "non-existent" are "extremely high" are not "very high"
are not "very high"
Which two are the most common unethical behaviors when it comes to competition in business? corruption privacy violations sale of faulty products economic espionage
corruption economic espionage
A company's ______ can be described as the set of values, ideas, and attributes that is learned and shared among its members. bill of rights moral standards culture ethics
culture
The moral values that govern the actions and decisions of an individual or group and serve as guidelines on how to act rightly and justly when faced with a moral dilemma are referred to as ______. ideals rules principles ethics
ethics
While ________ deal with personal moral principles and values, ________ are society's values and standards that are enforceable in the courts. moral duties; ethics laws; moral duties ethics; laws moral duties; laws
ethics; laws
Select the two ethical values that are addressed by the American Marketing Association Statement of Ethics. diversity fairness honesty individualism
fairness honesty
stakeholder responsibility
focuses on the obligations an organization has to those who can affect the achievement of its objectives -Suppliers/distributors -Employees/customers
Marketing efforts to produce, promote, and reclaim environmentally sensitive products are known as ______ marketing. societal cause green sustainable
green
corruption
involves unethical conduct by a person entrusted with a position of authority, often to acquire a personal benefit giving and receiving of bribes, kickbacks, and graft
caveat emptor
let the buyer beware
The first and most central concept of social responsibility is ______ responsibility. altruistic stakeholder profit societal
profit
The first and most central concept of social responsibility is ______ responsibility. stakeholder altruistic profit societal
profit
______________ responsibility holds that companies have a simple duty: to maximize profits for their owners or stockholders.
profit
Sustainable development involves conducting business in a way that ______. allows businesses to meet their growth targets in a regular and predictable fashion ties a firm's profits to its charitable contributions protects the natural environment while making economic progress allows employees to continue to grow and learn over the course of their careers
protects the natural environment while making economic progress
triple bottom line
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
societal responsibility
refers to obligations that organizations have (1) to the preservation of the ecological environment and (2) to the general public. public interest groups, ecological environment, general public
Because culture is a socializing force that dictates what is morally right, moral standards are ______. completely fluid over time uniform across both time and place nearly uniform among all societies relative to particular societies
relative to particular societies
Because culture is a socializing force that dictates what is morally right, moral standards are ______. relative to particular societies completely fluid over time uniform across both time and place nearly uniform among all societies
relative to particular societies
When an organization focuses on the obligations it has to consumers, employees, suppliers, and distributors it is accepting its ________ responsibility. profit channel stakeholder societal
stakeholder
When an organization focuses on the obligations it has to consumers, employees, suppliers, and distributors it is accepting its ________ responsibility. stakeholder channel societal profit
stakeholder
When organizations recognize that there is a need to improve the state of people, the planet, and profits simultaneously if they are to achieve sustainable, long-term growth, they are focusing on ______. utilitarianism the triple bottom line sustainable marketing green marketing
the triple bottom line
Stakeholder responsibility focuses on the obligation an organization has to ______. those who can affect achievement of its objectives the general public maximize profits for its owners or stockholders preserve the ecological environment
those who can affect achievement of its objectives
moral philosophy is learned
through the process of socialization with friends and family and by formal education societal, business and corporate culture
5 steps of a social audit
1. Recognition of a firm's social expectations and the rationale for engaging in social responsibility endeavors. 2. Identification of social responsibility causes or programs consistent with the company's mission. 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. 5. Evaluation of social responsibility programs and activities undertaken and assessment of future involvement.
Three concepts of social responsibility
1. profit responsibility 2. stakeholder responsibility 3. societal responsibility
________ is considered unethical in the United States because of its negative impacts on competition, but its practice can be more common in countries in earlier stages of economic development. Whistle-blowing Bribery Deceptive advertising Identity theft
Bribery
What two statements are TRUE of bribery? Bribes are a form of corruption that provide personal benefit to an authority figure. It is more common in countries in the earlier stages of economic development. It is more common in consumer marketing than in government marketing. It is more common in industries experiencing low levels of competition.
Bribes are a form of corruption that provide personal benefit to an authority figure. It is more common in countries in the earlier stages of economic development.
Select two reasons for the state of perceived ethical business conduct being at its present level. There is decreased diversity of value systems in society. Ethical business conduct may have declined. The publics' expectations of ethical business behavior have increased. There has been a rapid proliferation of business regulation.
Ethical business conduct may have declined. The publics' expectations of ethical business behavior have increased.
What are steps in conducting a social audit? (Select all that apply) Develop an organization's core values. Evaluate social responsibility programs. Specify the resources necessary to achieve social responsibility objectives. Identify causes consistent with the company's mission.
Evaluate social responsibility programs. Specify the resources necessary to achieve social responsibility objectives. Identify causes consistent with the company's mission.
What statements are TRUE regarding a code of ethics? (Select all that apply) It can be improved by providing greater specificity, taking the burden of judgment off employees. Since it is in writing, a code of ethics ensures ethical behavior. It is a formal statement of ethical principles and rules of conduct. It often covers problems like contributions to government officials and conflicts of interest.
It can be improved by providing greater specificity, taking the burden of judgment off employees. It is a formal statement of ethical principles and rules of conduct. It often covers problems like contributions to government officials and conflicts of interest.
Which two of the following are personal moral philosophies that have the most direct bearing on marketing practice? Moral idealism Utilitarianism Normative ethics Hedonism
Moral idealism Utilitarianism
Which is the best example of cause marketing? Procter & Gamble raises funds for the Special Olympics when customers purchase select company products. Nestle promotes its Good Start formula as hypoallergenic despite severe reactions in some children. 3M voluntarily stops production of Scotchguard due to unproven health concerns. Home Depot discontinues the sale of wood products from the world's endangered forests.
Procter & Gamble raises funds for the Special Olympics when customers purchase select company products.
moral idealism
a personal moral philosophy that considers certain individual rights or duties as universal, regardless of the outcome
Utilitariaism
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
A systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility is known as ______. a social audit sustainable development a moral metrics system an ethics examination
a social audit
social audit
a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility
Green marketing is ______. any effort to produce, promote, or reclaim environmentally sensitive products avoiding paper products in one's promotions, such as through the use of online advertising improving efficiencies in the exchange process, especially in distribution sharing environmentally friendly techniques with competitors
any effort to produce, promote, or reclaim environmentally sensitive products
If the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products, it is practicing ______. sustainable development social auditing social marketing cause marketing
cause marketing
In Yoplait's "Think Before You Pink" campaign, the company donated money to breast cancer research for each cup of pink-lidded yogurt that was sold. This is an example of ______. cause marketing social auditing sustainability green marketing
cause marketing
The concept "let the buyer beware" that was prevalent in the United States before the 1960s is known by what legal term? quid pro quo caveat emptor habeas corpus modus operandi
caveat emptor
Moral idealism considers ______. "the greatest good for the greatest number" to be the most desirable outcome all stakeholder perspectives in a decision, including society certain individual rights or duties as universal, regardless of outcome companies to have a simple duty to maximize profits for owners
certain individual rights or duties as universal, regardless of outcome
If a grocery store imposes slotting allowances from manufacturers, this interferes with customers' right to ______. be informed safety be heard choose
choose
Consumer Bill of Rights
codified the ethics of exchange between buyers and sellers, including rights to safety, to be informed, to choose, and to be heard
In which situation should a marketer be especially careful in order to be sensitive to the Consumer Bill of Rights? determining the size of an organization's sales force marketing products globally utilizing supply chain networks collecting personal information from online consumers
collecting personal information from online consumers
Economic espionage and corruption are unethical behaviors that negatively affect _______. government institutions suppliers competitors consumers
competitors
Which two of the following are the most common motivations for unethical consumer behavior? consumer's economic need consumer believes he or she can get away with it consumer's psychological instability consumer's rationalization that the act is justified
consumer believes he or she can get away with it consumer's rationalization that the act is justified
A social audit is used by organizations to ______. measure the ethical behavior of accounting professionals report social responsibility through government channels develop, implement, and evaluate social responsibility efforts develop tools for applying personal moral philosophies to business dilemmas
develop, implement, and evaluate social responsibility efforts
Pepsi-Cola received an offer from a Coca-Cola employee to purchase a confidential marketing plan for a new Coke product. Had this transaction been carried out, it would have been an example of ______. bribery economic espionage competitive rivalry benchmarking
economic espionage
Which two are the most common unethical behaviors when it comes to competition in business? economic espionage corruption sale of faulty products privacy violations
economic espionage corruption
Two kinds of unethical behavior are most common:
economic espionage and corruption
whistle-blowers
employees who report unethical or illegal actions of their employers
Ikea invests in alternative solutions such as using solar panels and wind turbines to to supply energy to its buildings, and the company is committed to decreasing the amount of raw materials it uses in making its products and avoiding the depletion of natural resources. These actions by Ikea are an example of ______. moral idealism utilitarianism green marketing cause marketing
green marketing
When a company like 3M has a formal program to reduce pollution and recycle material, it is pursuing ______. green marketing cause marketing a social audit utilitarianism
green marketing
The practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice is termed ______. cause marketing greenwashing social auditing green marketing
greenwashing
In what industry is economic espionage most prevalent? professional sports food service high-technology entertainment
high-technology
American Marketing Association Ethical Values
honesty, responsibility, fairness, respect, transparency, citizenship
Select the three items that are economic espionage activities. illegal trespassing corruption bribery electronic hacking fraud
illegal trespassing electronic hacking fraud
four reasons the state for the present state of ethical conduct in the U.S.
increased pressure on businesspeople to make decisions in society characterized by diverse value systems growing tendency for business decisions to be judged publicly by groups with different values and interests public's expectations of ethical business behavior has increased ethical business conduct may have declined
sustainable development
involves conducting business in a way that protects the natural environment while making economic progress
American Marketing Association General Norms
marketers must do no harm marketers must foster trust in the marketing system marketers must embrace, communicate and practice the fundamental ethical values that will improve consumer confidence in the integrity of the marketing exchange system
green marketing
marketing efforts to produce, promote, and reclaim environmentally sensitive products
social responsibility
means that organizations are part of a larger society and are accountable to that society for their actions
Which personal moral philosophy considers certain individual rights or duties as universal, regardless of the outcome? structuralism utilitarianism perfectionism moral idealism
moral idealism
two prominent personal moral philosophies have direct bearing on marketing practice
moral idealism utilitarianism
Two personal moral philosophies are ________, which considers certain rights and duties as universal, and ________, which focuses on the greatest good for the greatest number. utilitarianism; social responsibility moral idealism; utilitarianism social responsibility; sustainability moral idealism; sustainability
moral idealism; utilitarianism
ethics
moral principles that govern the actions and decisions of an individual or group guidelines on how to act rightly and justly when faced with moral dilemmas
What is considered a human rights abuse by an American company may be viewed as an acceptable business practice in China, which illustrates that ______. the United States is often overly critical of foreign business practices better ethics comes with increased standard of living the United States has more highly evolved ethical practice moral standards are relative to particular societies
moral standards are relative to particular societies
cause marketing
occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products
profit responsibility
owners and stockholders holds that companies have a simply duty: to maximize profits for their owners or stockholders
Social responsibility means that organizations are ______. responsible for affecting positive and permanent cultural change capable of developing and implementing social interaction strategies and should make this a priority part of a society and accountable to it for their actions required to put customers and their needs ahead of profitability concerns
part of a society and accountable to it for their actions
Organizations that place an emphasis on the triple-bottom line recognize the need to improve the state of what three items? people profit the company the planet policies
people profit the planet
Ethics deal with ________ moral principles and values, while laws are ________ values and standards that are enforceable in the courts. unconscious; formalized permanent; flexible global; local personal; society's
personal; society's
Social responsibility includes the concepts of ________ responsibility, stakeholder responsibility, and societal responsibility.
profit
A whistle-blower is an employee who ______. willingly rejects a company's formal statement of ethical principles or rules of conduct reports unethical or illegal actions of his or her employer takes money from his or her employer in exchange for telling the employer about misconduct in the firm collects trade secrets about a company's competitors
reports unethical or illegal actions of his or her employer
sustainable marketing
seeks to meet today's (global) economic, environmental, and social needs without compromising the opportunity for future generations to meet theirs
Select three elements that reflect a company's commitment to sustainable marketing. codes of ethics moral idealism social audits green marketing cause marketing
social audits green marketing cause marketing
Profit responsibility, stakeholder responsibility, and societal responsibility are the three concepts of ______. personal moral philosophy social responsibility a social audit business ethics
social responsibility
The fact that organizations are part of a larger society and are accountable to that society for their actions is the essence of ______. profit responsibility social responsibility moral idealism utilitarianism
social responsibility
four factors that affect ethical marketing behavior
societal culture and norms business culture and industry practices personal moral philosophy and ethical behavior corporate culture and expectations
The broadest concept of social responsibility is ______. stakeholder responsibility global responsibility universal ethics societal responsibility
societal responsibility
laws
society's values and standards that are enforceable in the courts
Companies that engage in ________ marketing typically benefit from favorable word of mouth, and outperform other companies financially. comprehensive progressive sustainable focused
sustainable
_ development involves conducting business in a way that protects the natural environment while making economic progress. Social Green Sustainable Environmental
sustainable
The effort to meet today's (global) economic, environmental, and social needs without compromising the opportunity for future generations to meet theirs is called ______. sustainable marketing business ethics moral idealism preservation marketing
sustainable marketing
The right to be informed and the right to choose, as both pertain to the exchange process in marketing, are part of ______. the AMA Code of Ethics the Telephone Consumer Protection Act the Foreign Corrupt Practices Act the Consumer Bill of Rights
the Consumer Bill of Rights
economic espionage
the clandestine collection of trade secrets or proprietary information about a company's competitors illegal trespassing, theft, fraud, misrepresentation, electronic hacking, the search of a competitor's trash, and violations of written and implicit employment agreements with noncompete clauses
Economic espionage is ______. giving or receiving kickbacks in the exchange process observing coworkers in the workplace without their knowledge to gain an advantage in one's own work the clandestine collection of trade secrets or proprietary information about competitors the intentional misrepresentation of company financial documents to support current practices and potential growth
the clandestine collection of trade secrets or proprietary information about competitors
Ethics refers to ______. moral problems specifically in the business domain a broad description of a firm's objectives and the scope of activities it plans to undertake the process of defining the marketing mix variables so that target customers have a clear understanding of what the product does the moral principles and values that govern the actions and decisions of an individual or group
the moral principles and values that govern the actions and decisions of an individual or group
greenwashing
the practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice
Which two are rights codified by the 1962 Consumer Bill of Rights? the right to safety the right to be heard the right to privacy the right to refund for defective products
the right to safety the right to be heard
Corporate culture can be defined as ______. the systematic assessment of a firm's objectives, strategies, and performance the moral principles and values that govern the actions and decisions of an individual or group the rights of employees to be informed, to choose, to be heard, and to be safe the set of values, ideas, and attitudes that are learned and shared among the members of an organization
the set of values, ideas, and attitudes that are learned and shared among the members of an organization
corporate culture
the set of values, ideas, and attitudes that is learned and shared among the members of an organization
In cause marketing, charitable contributions are not outright contributions but rather are ______. tied to customer revenues produced through the promotion of one of its products earned in trade for other goods and services refundable if cause-related goals are not met by both organizations given only when the receiving organization makes desirable social changes
tied to customer revenues produced through the promotion of one of its products
When a businesswoman is considering the consequences of her possible choices, both in terms of their costs and their benefits, she is using which personal moral philosophy? structuralism utilitarianism moral idealism relativism
utilitarianism
Employees who report unethical or illegal actions of their employers are engaged in ______. corruption social auditing whistle-blowing espionage
whistle-blowing