Chapter Four

If other organizational members approve of the activity and it is legal and customary within the industry, chances are that the activity is ________ from both an ethical and a social responsibility perspective. a. moral b. acceptable c. unacceptable d. improper e. inappropriate

Acceptable

All companies have a responsibility to ____ so they can provide a return on investment to their owners and investors, create jobs for the community, and contribute goods and services to the economy. A. pay employees more than minimum wage B. be profitable C. offer the lowest price D. provide the largest selection possible

Be profitable

If Starbucks were to donate 5 percent of every coffee purchase to shelters for victims of domestic abuse for one month, this would be an example of A. cause-related marketing. B. strategic philanthropy. C. economic responsibility. D. green marketing.

Cause-related marketing

Which of the following employees is most responsible for setting the ethical tone for the entire marketing organization? A. Marketing Employee B. Product Manager C. Marketing Manager D. Chief Executive Officer

Chief Executive Officer

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

According to your text, a well-implemented _______ and a strong ________ result in the greatest decrease in ethical risks for an organization. a. ethics program; corporate culture b. corporate culture; opportunity c. regulatory system; corporate culture d. ethics program; regulatory system e. ethics program; opportunity

Ethics program; corporate culture

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

False

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

False

Research into marketing ethics suggests that the ________ associated with an issue, the more likely it will be recognized as an ethics issue and the more important it will be in making an ethical decision. a. greater the value b. greater the publicity c. less the consequences d. greater the consequences e. greater the price

Greater the consequences

The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders is called A. marketing citizenship. B. social responsibility. C. stakeholders. D. strategic philanthropy.

Marketing citizenship

In the absence of ethics and compliance programs, employees will generally make decisions based primarily on their __________________. a. observations of how coworkers and superiors behave b. observations of how society behaves c. assessment of the law d. personal values e. financial situation

Observations of how coworkers and superiors behave

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. organizational pressure b. intensity of the ethical issue c. organizational culture d. opportunity e. individual values

Opportunity

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

Product recalls

If Hefty Bags expresses concern that its products are having too great an impact on the pollution of ground water under landfills, this concern is directly related to the firm's A. corporate benevolence. B. ethical responsibility. C. marketing concept. D. social responsibility.

Social responsibility

Any constituent who has a claim in some aspect of a company's products, operations, markets, industry, or outcomes is known as a(n) A. employee. B. customer. C. shareholder. D. stakeholder.

Stakeholder

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

Stories

Which of the following is the potential for the long-term well-being of the natural environment, including all biological, as well as the interaction among nature and individuals, organizations, and business strategies? a. sustainability b. ethics c. cause-related marketing d. consumerism e. marketing citizenship

Sustaibability

Which of the following is not a dimension of social responsibility and marketing citizenship? A. Philanthropic B. Economic C. Technological D. Legal

Technological

Which of the following promises consumers fair treatment when they complain to marketers about products? a. the right to choose b. the right to be informed c. the right to lower prices d. the right to be heard e. the right to safety

The right to be heard

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

They should be updated periodically.

Which of the following do codes of ethics NOT do? a. They help marketers deal with ethical issues or dilemmas that develop in daily operations by prescribing or limiting specific activities. b. They promote ethical behavior by reducing opportunities for unethical behavior. c. They let employees know both what is expected of them and what kind of punishment they face if they violate the rules. d. They take every situation into account. e. They specify formalized rules and standards that describe what the company expects of its employees.

They take every situation into account.

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

True

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. safety b. choose c. redress d. be informed e. be heard

Be informed

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. cause-related marketing b. marketing ethics c. stakeholder orientation d. sustainability e. strategic philanthropy

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. counterfeiting b. greenwashing c. product availability d. channel stuffing e. product recall

Channel stuffing

Which of the following is not one of the four dimensions of social responsibility presented in your text? A. Consumerism B. Philanthropic C. Ethical D. Economic

Consumerism

Ethics relates to individual and group decisions whereas social responsibility ________________. a. links products to a particular social cause on an ongoing or short-term basis b. considers the diverse perspectives of stakeholders in their daily operations and strategic planning c. deals with the total effect of marketing decisions on society d. is the synergistic use of organizational core competencies and resources to address key stake-holders' interests and achieve both organizational and social benefits e. deals with the total effect of marketing decisions on the environment

Deals with the total effect of marketing decisions on society

An ethical issue in the area of promotion is _______, which occurs when products are promoted as being more environmentally friendly than they really are. a. greenwashing b. cause-related marketing c. sustainability d. green marketing e. product recalls

Greenwashing

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. Socially responsible programs usually do not work. b. Sustainability should be performed separately from social responsibility. c. It cannot be socially responsible if it inconveniences consumers. d. It can be difficult to balance all of society's demands. e. Social responsibility requires a lot more investment.

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

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

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

Ethical choices in marketing are most often made _______________. a. at church b. in a vacuum c. at home d. jointly e. individually

Jointly

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

Make prices reflect the cost

Conditions that limit barriers or provide rewards are known as

Opportunity

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. 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. ethical; ethical c. philanthropic; legal d. philanthropic; ethical e. philanthropic; philanthropic

Philanthropic; ethical

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. 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; economic b. philanthropic; ethical c. ethical; economic d. ethical; philanthropic e. philanthropic; legal

Philanthropic; legal

Socially responsible business practices have provided all of the following benefits except A. creating goodwill toward the organization. B. attracting employees. C. reducing marketing costs. D. positively impacting local communities.

Reducing marketing costs

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

Social responsibility improves marketing performance.

Which of the following statements about social responsibility is correct? A. Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society. B. Social responsibility dimensions do not include economic concerns. C. Social responsibility refers to principles and standards that define acceptable conduct in marketing as determined by various stakeholders. D. Social responsibility dimensions do not include philanthropic concerns.

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

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. 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. True or Flase?

True

According to the text, marketing ethics refers to principles and standards that define A. acceptable conduct in general. B. acceptable conduct in marketing. C. improper behavior in business. D. improper behavior in marketing.

Acceptable conduct in marketing

One way in which marketers can demonstrate social responsibility is through programs in sustainability. Which of the following is not included as a goal of sustainability? A. adopting more eco-friendly business practices B. long-term well-being of the natural environment C. focus primarily on the external environment of the company D. consider individuals as part of the natural environment

Focus primarily on the external environment of the company

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. intensity of the ethical issue b. organizational pressure c. individual values d. organizational ethics e. opportunity

Individual values

Acme Corp. is adopting a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities that its stakeholders expect of it. This best describes ________________. a. social responsibility b. cause-related marketing c. marketing citizenship d. stakeholder orientation e. ethics

Marketing citizenship

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

Marketing ethics

Which of the following is often a better predictor of unethical activities than are personal values? a. organizational relationships b. opportunity c. the CEO d. organizational pressure e. individual factors

Opportunity

Acme Corp. is striving to foster a set of ethical values, beliefs, goals, norms, and rituals that members of an organization share. This is best described as _______________. a. organizational culture b. code of conduct c. opportunity d. marketing citizenship e. social responsibility

Organizational culture

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

Organizational culture

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. Which responsibility is the pharmacy fulfilling with this initiative for low-income consumers? a. financial b. legal c. philanthropic d. ethical e. economic

Philanthropic

McDonald's supports and funds Ronald McDonald houses for the families of terminally-ill children to stay in to be near their loved ones. McDonald's action demonstrates the fulfillment of ____ responsibility. A. legal B. ethical C. philanthropic D. society

Philanthropic

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. This is an example of what type of ethical issue? a. consumer b. product c. price d. promotion e. distribution

Promotion

When an ethical issue arises in the supply chain, which of the following is most likely to be held accountable for misconduct? a. the channel member managing the product b. the channel member selling the product c. the channel member making the product d. the channel member wholesaling the product e. the channel member shipping the product

The channel member managing the product

How would marketers most likely benefit from the consumer's right to be heard? A. Consumers are more loyal to companies who have wronged them. B. The company can use the information to make its products better. C. Consumers will also tell others about their bad experience with the company. D. They gain valuable information about their competitors.

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

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

The company's ethical culture

Consumerism is A. the efforts of independent individuals, groups, and organizations to protect the rights of consumers. B. President John F. Kennedy's consumer bill of rights. C. marketers' efforts to contribute to the satisfaction and growth of the communities in which they operate. D. the right to be informed.

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