Chapter 4 Cengage

______________occur(s) when companies ask customers to return products found to be defective.

Product recalls

Evaluate the truthfulness of this statement: Strong ethical standards are necessary to completely eliminate misconduct from the organization. a. True b. False

b. False

Individual values are more likely to influence organizational ethical decision making than organizational culture. a. True b. False

b. False

A(n) ________________ is an identifiable problem, situation, or opportunity that requires an individual or organization to choose from among several actions that must be evaluated as right or wrong, ethical or unethical.

ethical issue

How does social responsibility differ from ethics? a. It deals with the total effect of marketing decisions on society. b. It can have a positive impact on society. c. It deals with philanthropy rather than ethics. d. It can be profitable for the firm. e. It relates to individual and group decisions.

a. It deals with the total effect of marketing decisions on society.

A rule of thumb for resolving ethical and social responsibility issues is that if an issue can withstand open discussion that results in agreement or limited debate, an acceptable solution may exist. a. True b. False

a. True

Scenario 4.1. Janelle manages a small pharmacy in Dallas, Texas. Recently, she started an initiative to help give low-income individuals steep discounts on expensive drugs. The company is losing some revenue by charging these discounts, but it has helped the pharmacy gain a reputation for corporate citizenship. Consumers can also donate money to help fund this initiative. Refer to Scenario 4.1. Which responsibility is the pharmacy fulfilling with this initiative for low-income consumers? a. economic b. ethical c. legal d. financial e. philanthropic

e. philanthropic

Every year Yoplait hosts events to raise money Susan G. Komen, the largest breast cancer organization in the United States. Susan G. Komen works to provide breast cancer education, social services, research, and more. These events that Yoplait funds every year is most likely which of the following? a. stakeholder orientation b. strategic philanthropy c. sustainability d. marketing ethics e. cause-related marketing

e. cause-related marketing

Chantel works at Coca-Cola. To make the required sales number, Chantel sent more Coca-Cola products to their distributors than what they asked for. She did this right before the accounting period. She knew that even if they sent back the extra product, it would be after the numbers were reported. This is an example of what type of distribution issue? a. product availability b. greenwashing c. channel stuffing d. counterfeiting e. product recall

c. channel stuffing

A lawsuit was filed against Naked Juice because of its claims that it is "natural." The lawsuit claimed that because it contained synthetic ingredients, it did not fit the definition of "natural" and was therefore misleading. Naked Juice agreed to drop the "natural" claim. According to critics, Naked Juice was violating consumers' right to _______________. a. choose b. redress c. safety d. be heard e. be informed

e. be informed

Frito-Lay developed a bag for its chips that was biodegradable. While praised by environmentalists, soon it received many complaints that the bags were too loud when they crinkled. Frito-Lay ended up abandoning the packaging. What does this situation demonstrate about socially responsible behavior? a. Social responsibility requires a lot more investment. b. It cannot be socially responsible if it inconveniences consumers. c. It can be difficult to balance all of society's demands. d. Sustainability should be performed separately from social responsibility. e. Socially responsible programs usually do not work.

c. It can be difficult to balance all of society's demands.

Which of the following is true about social responsibility? a. Social responsibility automatically reduces costs. b. Social responsibility will always be profitable. c. Social responsibility improves marketing performance. d. Social responsibility will eliminate ethical issues in marketing. e. Social responsibility results in fewer marketing problems.

c. Social responsibility improves marketing performance.

Scenario 4.2 Shirley is a salesperson at a pharmaceutical firm. She has been tasked with selling a new drug. One doctor looks like a great prospect. He is highly interested in trying out the drug and has requested some samples. However, he has asked Shirley to list any side effects of the product. Shirley knows that there is a very small chance that it could cause extreme muscle spasms in certain individuals. The chance for this is low, and even those that suffer from side effects will most likely not experience such severe reactions. Yet Shirley knows from her past experience with this doctor that he is incredibly picky and is not likely to agree to try out the medicine if he knows about this extreme side effect—no matter how unlikely it is to occur. Shirley therefore decides not to tell him. She describes other potential side effects, but she leaves this out. Refer to Scenario 4.2 Assume that the Food and Drug Administration just discovered that this new drug is a lot more risky than first thought. Anyone who takes over a certain amount can suffer from potential heart problems. This has become a product issue. a. True b. False

a. True

Joseph works in accounting. He was told by his supervisor that it was necessary to change some of the accounting to make company performance look better. Joseph objected, so the CEO got involved and told Joseph that it was necessary to keep the firm afloat. If the firm went under, then many people would lose their jobs. Joseph also faced pressure from colleagues. In the end, Joseph decided not to do what he was told and quit his job. Which factor most likely impacted his ethical decision the most? a. individual values b. intensity of the ethical issue c. organizational ethics d. opportunity e. organizational pressure

a. individual values

Scenario 4.1. Janelle manages a small pharmacy in Dallas, Texas. Recently, she started an initiative to help give low-income individuals steep discounts on expensive drugs. The company is losing some revenue by charging these discounts, but it has helped the pharmacy gain a reputation for corporate citizenship. Consumers can also donate money to help fund this initiative. Refer to Scenario 4.1. Assume the government passes a new law that it will work with pharmacies to provide drug discounts to low-income consumers. In this case, the pharmacy's social responsibility initiative will go from fulfilling its _______________ responsibility to fulfilling its _______________ responsibility. a. philanthropic; legal b. ethical; economic c. philanthropic; ethical d. ethical; philanthropic e. philanthropic; economic

a. philanthropic; legal

Scenario 4.2 Shirley is a salesperson at a pharmaceutical firm. She has been tasked with selling a new drug. One doctor looks like a great prospect. He is highly interested in trying out the drug and has requested some samples. However, he has asked Shirley to list any side effects of the product. Shirley knows that there is a very small chance that it could cause extreme muscle spasms in certain individuals. The chance for this is low, and even those that suffer from side effects will most likely not experience such severe reactions. Yet Shirley knows from her past experience with this doctor that he is incredibly picky and is not likely to agree to try out the medicine if he knows about this extreme side effect—no matter how unlikely it is to occur. Shirley therefore decides not to tell him. She describes other potential side effects, but she leaves this out. Refer to Scenario 4.2. This is an example of what type of ethical issue? a. promotion b. distribution c. product d. price e. consumer

a. promotion

Which of the following is an informal way of expressing organizational culture? a. stories b. manuals c. codes of conduct d. ceremonies e. dress code

a. stories

At Shania's job, promptness is heavily stressed. However, Shania's supervisor never punishes anyone for being tardy, no matter how late they come in. Shania therefore takes advantage of this to sleep in an extra hour each day. This failure on the part of Shania's supervisor is an example of how _____________ factors can influence employee conduct. a. individual values b. opportunity c. organizational pressure d. intensity of the ethical issue e. organizational culture

b. opportunity

Which of the following is true about codes of ethics? a. They should always be written by the CEO. b. They should be generic enough to apply to different industries. c. They should be updated periodically. d. They should take into account every ethical situation. e. They are not as important as codes of conduct.

c. They should be updated periodically.

Which of the following is one of the three factors that influence the ethical decision-making process? a. social responsibility b. ethical issue intensity c. organizational culture d. codes of ethics e. philanthropy

c. organizational culture

The government has provided tax credits toward individuals who purchase electric vehicles. This is an attempt to do which of the following? a. eliminate the concept of waste b. reduce the production of unsaleables c. reinvent the concept of a product d. make prices reflect the cost e. make environmentalism profitable

d. make prices reflect the cost

Principles and standards that define acceptable conduct in marketing as determined by various stakeholders are known as ___________________. a. social responsibility b. cause-related marketing c. marketing citizenship d. marketing ethics e. strategic philanthropy

d. marketing ethics

What is the greatest determinant of ethical conduct in the organization? a. the "bad apples" in the firm b. the firm's legal responsibilities c. employees' individual ethical values d. the company's ethical culture e. the comprehensiveness of the code of conduct

d. the company's ethical culture

Scenario 4.1. Janelle manages a small pharmacy in Dallas, Texas. Recently, she started an initiative to help give low-income individuals steep discounts on expensive drugs. The company is losing some revenue by charging these discounts, but it has helped the pharmacy gain a reputation for corporate citizenship. Consumers can also donate money to help fund this initiative. Refer to Scenario 4.1. Suppose that Janelle went on a business trip. When she comes back, she files an expense report and sends it to the pharmacy's headquarters. Although a few meals were provided on her trip, Janelle does not tell them this but puts down that she needs to be reimbursed for all meals. The initiative providing discounts to low-income consumers fulfills the company's __________________ responsibilities, and Janelle's practice of filling out expense reports violates the company's _____________ responsibilities. a. ethical; philanthropic b. philanthropic; philanthropic c. philanthropic; legal d. ethical; ethical e. philanthropic; ethical

e. philanthropic; ethical

Conditions that limit barriers or provide rewards are known as __________.

opportunities