Marketing Chapter 4

____ are formalized rules and standards that describe what a company expects of its employees in terms of ethical behavior. Select one: a. Job descriptions b. Codes of conduct c. Ethics contracts d. Behavior contracts e. Ethics clauses

b. Codes of conduct

Who drafted the Consumer Bill of Rights? a. Ronald Reagan b. George W. Bush c. John F. Kennedy d. Ralph Nader e. Bill Clinton

Got wrong Not a. Ronald Reagan

Which of the following statements about implementing an ethics and legal compliance program is false? a. It requires open communication. b. It requires consistent enforcement of standards from the code of conduct. c. It helps create a buffet zone on issues that could trigger serious legal complications for the company. d. It rarely needs to be revised. e. It requires taking reasonable steps in response to violations of standards.

Got wrong. not b.

According to the consumer bill of rights, the right to be informed means that Select one: a. consumers should have access to and the opportunity to review all relevant information about a product before buying it. b. consumers should be told when the quality of a product has changed. c. consumers should have access to a variety of goods and services at competitive prices. d. marketers have an obligation not to knowingly market a product that could harm consumers. e. consumers' interests will receive full and sympathetic consideration in the formulation of government policy.

a. consumers should have access to and the opportunity to review all relevant information about a product before buying it.

________________ promote ethical behavior by reducing opportunities for unethical behavior; employees know what is expected of them and what kind of punishment waits if rules are violated. Select one: a. ​Codes of conduct b. ​Human resources policies c. ​Compensation plans d. ​Mission statements e. ​Corporate objectives

a. ​Codes of conduct

Which of the following employees is most responsible for setting the ethical tone for the entire marketing organization? a. Chief executive officer b. Marketing employee c. Product manager d. Vice president of marketing research e. Marketing manager

a. Chief executive officer

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. stakeholder. b. employee. c. shareholder. d. manager. e. customer

a. stakeholder

The effect that coworkers have on the ethical decision-making process depends on a person's exposure to ethical and unethical behavior. Which of the following statements about ethical decision making is true? a. The more a person is exposed to ethical activity in the organization, the less likely he or she will pay attention to that activity. b. The more a person is exposed to unethical activity in the organization, the more likely he or she will behave unethically. c. Exposure to ethical and unethical activity has no effect on a person's decision-making process. d. The more a person is exposed to unethical activity in the organization, the less likely he or she will pay attention to that activity. e. The more a person is exposed to ethical activity in the organization, the more likely he or she will behave unethically.

b. The more a person is exposed to unethical activity in the organization, the more likely he or she will behave unethically.

Distribution-related ethical issues arise when marketers Select one: a. bribe salespeople to push one product over another. b. distribute a product that is very similar to a competing product. c. force channel intermediaries to behave in a specific manner. d. do not provide intermediaries with enough information about how a product is priced. e. fail to disclose information to consumers about the risks associated with using a product.

c. force channel intermediaries to behave in a specific manner.

A business that contributes resources to the community to improve the quality of life is taking on a(n) ____ responsibility. Select one: a. economic b. legal c. philanthropic d. ethical code of conduct e. cost

c. philanthropic

The Transportation Division of the GE Corporation is located in a small city which has limited economic growth at this time. Due to the condition of the local school system, GE contributed $2 million to repair and revive it, stating that GE believed in education for the community. This action would imply that GE is in which level of the pyramid of social responsibility? Select one: a. ethical b. cost c. philanthropic d. legal e. economic

c. philanthropic

In Europe, companies can voluntarily apply for a designation to indicate that their product is less harmful to the environment than competing products. This label is known as the Select one: a. Better Product Project. b. Good Housekeeping Seal. c. Forest Stewardship Seal. d. Eco-label. e. Green Marketing Stamp

d. Eco-label.

Sharese wants to buy a new couch, but there is only one place in her town that sells them, and she lives in an isolated area. Sharese most likely feels her consumer right to ____ has been violated. Select one: a. be informed b. safety c. be heard d. choose e. recourse

d. choose

Product-related ethical issues arise when marketers Select one: a. force channel intermediaries to behave in a specific manner. b. bribe salespeople to push one product over another. c. manufacture a product that is very similar to a competing product. d. fail to disclose information to consumers about the risks associated with using a product. e. provide consumers with inadequate information about how a product is priced.

d. fail to disclose information to consumers about the risks associated with using a product.

___________ ethical issues generally surface when companies fail to disclose risks associated with a product or information regarding its function, value, or use. a. Safety b. Corporate c. Distribution. d. Product-related e. Promotion-related

d. Product-related

A set of values, beliefs, goals, norms, and rituals shared by members of an organization is called a. company ethos. b. ethical environment. c. organizational factors. d. corporate culture. e. codes of conduct.

d. corporate culture.

The Reputation Institute rates the social responsibility of the largest global corporations in the world. They assign a proprietary CSR rating to each company based surveys of 47,000 consumers worldwide. ​ In a recent annual ranking, Microsoft Corporation was ranked #1 for social responsibility. Regarding the ranking, the following is a quote from Microsoft's Senior Director of Citizenship and Public Affairs: ​ "I think this is really a testament to our employees worldwide and the difference they make in their local communities. While we have a small Citizenship team here at the corporate level, we have Citizenship Leads across the globe and they work daily in collaboration with a wide range of stakeholders on a range of issues important to local communities." ​ Which of the following terms best describes Microsoft's approach to corporate social responsibility? Select one: a. ​Cause-related marketing b. ​Stakeholder orientation c. ​Consumerism d. ​Strategic philanthropy e. ​Marketing citizenship

Got Wrong Not d. ​Strategic philanthropy

The RedCap Corporation is committed to social responsibility. It is looking for a new shipping partner and has found LogiSpec, one that seems to be perfect since it employs individuals with disabilities, contributes a portion of profit to the local school system, and allows its employees to work on flex-time. RedCap is very interested in LogiSpec's attention to social responsibility. However, its pricing is almost 12% higher than other shippers RedCap is considering. The fact that RedCaps' decision has to balance the company's desire for social responsibility and investors' desires for profits is an example of a(n) ____ responsibility. a. ethical b. philanthropic c. economic d. cost e. legal

Got wrong Not a. ethical

When a purchasing agent for Intel is offered a bribe by a silicon manufacturer salesperson, a. the purchasing agent is free to accept the bribe without consequences. b. a promotion-related ethical issue has been created. c. there is an ethical dilemma for the purchasing agent that is product related. d. an ethical issue primarily related to the pricing of products exists. e. no ethical issue exists under these circumstances.

b. a promotion-related ethical issue has been created.

Which of the following is a primary difference between cause-related marketing and strategic philanthropy? a. Customers are likely to feel good about themselves when supporting a cause-related marketing campaign but are unlikely to notice strategic philanthropy. b. Cause-related marketing is unlikely to have a positive effect on society while strategic philanthropy always benefits society. c. Strategic philanthropy can take on both a financial and non-financial format while cause-related marketing only involves financial contributions. d. Cause-related marketing is short term only while strategic philanthropy is an ongoing approach that lasts for years or even decades. e. Strategic philanthropy fulfills a firm's primary social responsibilities while cause-related marketing does not.

c. Strategic philanthropy can take on both a financial and non-financial format while cause-related marketing only involves financial contributions.

Scenario 4.1 Use the following to answer the questions. ​ Hershey Foods was founded in the nineteenth century by Milton Hershey, who had a strong ethical value system⎯always show integrity, be honest, and respect others. Hershey felt it was important to provide high-quality goods and services of real value at competitive prices that provide an adequate return on investment. He also founded the Milton Hershey School, operating today as a cost-free, private home and school dedicated to helping children with social needs and limited resources. The company also focuses on environmental issues, such as reducing waste by 360,000 pounds annually by redesigning Hershey's Syrup caps. Hershey Foods has an ethics compliance program that includes a code of ethics and training, guidelines for handling legal and ethical issues, an 800 number for assistance with ethical issues, and support from supervisors and human resource managers in dealing with ethical issues. However, in the last few years, Hershey has been criticized by several advocacy groups concerning the sourcing of its chocolate from West Africa where many of the companies use child labor. While Hershey is the largest chocolate candy producer in America, it lags behind other major chocolate producers with regard to certifying its chocolate as child labor-free. ​ Refer to Scenario 4.1. Hershey and its employees benefit in many ways from its strong ethics compliance program. Which of the following is not one of the benefits of such a program? a. Free-flowing communication within the firm regarding ethical issues b. High level of organizational guidance for employees c. Better employee understanding of ethical issues d. Costly programs to develop and maintain e. Enforcement and discipline of ethical infractions

d. Costly programs to develop and maintain

Socially responsible business practices have provided all of the following benefits except a. positively impacting local communities. b. attracting employees. c. generating publicity for the firm. d. reducing marketing costs. e. creating goodwill toward the organization.

d. reducing marketing costs.

Opportunity provides a pressure that may determine ethical decisions in marketing. Opportunity is best thought of as Select one: a. a person's relationship with others in the organization. b. the principles or rules that individuals use to determine the way to behave. c. a problem or situation requiring an individual to choose a course of action. d. unethical behavior found in top management. e. a favorable set of conditions that limit barriers or provide rewards.

e. a favorable set of conditions that limit barriers or provide rewards.

Companies that incorporate ethics and social responsibility into their strategic plans are likely to experience Select one: a. negative publicity. b. reduced costs. c. increased lawsuits. d. disappointed shareholders. e. improved marketing performance.

e. improved marketing performance.