MKT 3013 Sample Quiz & Test, Ch 4 (Exam 2)

How might a technology company like Apple ensure that it behaves in a socially responsible way toward its employees?

It can ensure that pay practices are fair at all levels of the company.

What is true regarding corporate social responsibility?

It is often grafted onto a traditional business model, usually as a separate department or part of PR.

Which viewpoint is most desirable?

To align personal and corporate goals, firms need to have a strong ethical climate exemplified by the actions of corporate leaders and filtered through an ethically based corporate culture

Charges that firms are using "sweatshop" labor to produce their products are likely to occur during the ________ phase of the strategic marketing planning process.

implementation

After weighing various alternatives and choosing the most appropriate action to take, what action should be taken if the marketer is not confident about that decision?

reexamine other alternatives

Of all the stakeholders, a company's most basic responsibility is to

its employees

What is the best example of corporate social responsibility affecting the marketplace?

An industry leader adopts environmentally friendly production practices and other companies in the industry follow suit

Employees at Southwest Airlines donate volunteer hours to Ronald McDonald Houses throughout the United States. This is an example of a (an) ________ program.

CSR

With regard to the ethical decision-making metric, which question best represents the transparency test?

Could I give a clear explanation for the action I'm contemplating that would satisfy a fair moral judge?

Andrea feels pressure to increase sales, so she decides to intentionally mark up the price on a new shipment of leggings. Even though she is deceiving the customer, Andrea justifies her decision by believing management will be pleased with the increase in revenue. However, 'Andrea's decision may have serious consequences for the company in the long term. What is one way to avoid the consequences that can result from such behavior?

Make sure the short-term goals of each employee are aligned with the long-term goals of the firm

A meat-packing company discovers that six months ago it unknowingly distributed meat from a cloned cow. The firm is unaware of any specific risks to humans consuming the meat; however, some scientists have raised questions, and some consumers are afraid of possible future problems. The meat company must decide whether or not to make this matter public. How should it begin the process of making an ethical decision?

The company should identify the issues raised by the situation.

Which scenario represents the best approach for a firm to take regarding ethics and social responsibility?

The firm should implement programs that are socially responsible and employees should act in an ethically responsible manner

As a marketing executive, Shahana wants to ensure that she has applied all relevant decision-making criteria to be confident she has come to a decision that respects the rights and dignity of all stakeholders? What tool would Shahana use to do this?

an ethical decision-making metric

When making decisions, managers often must decide between doing what is beneficial for the firm in the short term, and what is beneficial for both the firm and society in the long term. To address this conflict, a firm must

align the short-term goals of each employee with the long-term, overriding goals of the firm.

Courses of action such as halting the market research project, making responses anonymous, and instituting training on the AMA Code of Ethics for all researchers would be identified during which step of the ethical decision-making process?

brainstorm alternatives

In which step of the ethical decision-making framework might a company halt its marketing research project?

brainstorm and evaluate alternatives

________ is concerned with distinguishing between right and wrong actions and decisions that arise in a business setting,

business ethics

After a firm has carefully considered all relevant alternatives to address an ethically difficult situation, the next step would be to ________ bring about the best solution.

choose a course of action

Recognizing marketing's greater purpose is one of the four overriding principles of

conscious marketing

During the ________ phase of the strategic marketing planning process, marketers utilize systems to check whether each conscious marketing issue raised in earlier phases was addressed.

control

During which phase of the strategic marketing planning process are managers evaluated on their actions from a conscious marketing perspective?

control

In light of recent trends of credit card data theft, Martinson Credit Corp. banned the use of the technology found in old credit cards and developed a more secure card similar to those used in Europe. In which stage of the marketing plan would this decision take place?

control

When integrating conscious marketing into a marketing strategy, a key task is to ensure that all managers are evaluated on their actions from a conscious marketing perspective. This action would take place during which stage of the strategic marketing planning process?

control phase

The Giant Cookie Company decided to reduce the amount of sugar in its chocolate chip cookie recipe. Which stakeholder category did this effort target?

customers

To ensure that conscious marketing is infused into all levels of the firm, it can be integrated into

each stage of the marketing plan

A firm whose employees embrace conscious marketing and which is concerned with only its closest stakeholders is considered to be

ethical but socially irresponsible

Mattel decided to recall millions of Chinese-made toys due to lead paint and small magnets that could harm children. For Mattel, this was an issue related to

ethics

T/F: Business ethics and marketing ethics are synonymous terms.

false

T/F: Conscious marketing is governed by four overriding principles that guide a firm's economic value creation.

false

T/F: Crystal Water donates 2 percent of its profits to children in need of clean water. This action demonstrates that Crystal Water is a firm with a strong ethical climate.

false

T/F: Plateau Computer Company decides to market its tablet computers to preschoolers, even though the tablets are better suited for much older children. This potentially unethical decision would take place during the control phase of the strategic marketing planning process.

false

T/F: The first step in ethical decision making is to gather information and identify stakeholders.

false

T/F: The most basic corporate social responsibility of a company is to its customers to ensure that a product is produced at the lowest cost.

false

Dimetrius's company is facing a difficult ethical issue. The firm has identified the various stakeholders and their issues and gathered the available data. Everyone with an interest in the issue has engaged in brainstorming and evaluating alternatives. Management reviewed and refined the alternatives. It should now choose the course of action that

generates the best solution for the stakeholders

When firms apply an ethical framework for making decisions in a questionable situation, the first step is to

identify issues

Vineet, a manager at a marketing research firm, is trying to determine if his firm acted ethically when it conducted its latest study. In doing so, he is evaluating whether or not the research respondents were told the real purpose of the study before proceeding. Which step of the ethical decision-making framework is Vineet participating in?

identifying issues

What is true of business ethics?

it examines ethical rules and principles within a commercial context

Which statement differentiates conscious marketing from CSR?

it recognizes that business is a subset of society

Patagonia's mission statement, "Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis," was prepared during which phase of the strategic marketing planning process?

planning

When a firm decides what level of commitment to its ethical policies and standards it is willing to declare publicly, it is in which phase of the strategic marketing planning process?

planning

Although there are many and varied definitions of corporate social responsibility (CSR), firms generally acknowledge that, in addition to economic and legal duties, they have responsibilities to

society

Firms that look for safer and healthier alternatives to their products, are mostly attending to which stakeholder group?

society

In using the ethical decision-making framework, a firm should consider the impact of its actions on its employees, suppliers, and customers—otherwise known as the firm's

stakeholders

What is the objective of the last step in the ethical decision-making framework?

to weigh the various alternatives and choose a course of action

Economic, social, and environmental performance refer to the

triple bottom line

T/F: Marketing ethics can involve societal issues such as the sale of products or services that may damage the environment or global issues such as the use of child labor.

true

T/F: The Golden Rule test asks the question, "Would I like to be on the receiving end of this action and all its potential consequences?"

true

A firm makes generous donations to charities, but its employees are always being scrutinized for engaging in questionable sales practices. This firm would be considered

unethical but socially responsible