Chapter 4: Marketing Ethics LS

What two benefits are associated with companies' effort to increase social responsibility?

Favorable word of mouth Better financial performance than less responsible companies

Which is the best example of cause marketing?

Procter & Gamble raises funds for the Special Olympics when customers purchase select company products.

Societal responsibility extends the concept of social responsibility to which of the following? (Select all that apply)

The general public Preservation of the ecological environment

Select two reasons for the state of perceived ethical business conduct being at its present level.

The publics' expectations of ethical business behavior have increased. Ethical business conduct may have declined.

Public opinion surveys indicate that most people feel the ethical standards of business executives ______.

are not "very high"

A company's ______ can be described as the set of values, ideas, and attributes that is learned and shared among its members.

culture

While ________ deal with personal moral principles and values, ________ are society's values and standards that are enforceable in the courts.

ethics; laws

Select the three concepts of social responsibility.

profit responsibility stakeholder responsibility societal responsibility

Sustainable development involves conducting business in a way that ______.

protects the natural environment while making economic progress

Because culture is a socializing force that dictates what is morally right, moral standards are ______.

relative to particular societies

A whistle-blower is an employee who ______.

reports unethical or illegal actions of his or her employer

When an organization focuses on the obligations it has to consumers, employees, suppliers, and distributors it is accepting its ________ responsibility.

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 ______.

the triple bottom line

Stakeholder responsibility focuses on the obligation an organization has to ______.

those who can affect achievement of its objectives

________ 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.

Bribery

What statements are TRUE regarding a code of ethics? (Select all that apply)

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.

_______ responsibility holds that companies have a simple duty: to maximize profits for their owners or stockholders.

Profit

What are steps in conducting a social audit? (Select all that apply)

Specify the resources necessary to achieve social responsibility objectives. Identify causes consistent with the company's mission. Evaluate social responsibility programs.

Green marketing is ______.

any effort to produce, promote, or reclaim environmentally sensitive products

The fact that consumers should have access to public-policy makers regarding complaints about products and services relates to consumers' right to ______.

be heard

A company representative who gives a gift to the government official considering a contract for the representative's firm may be accused of ______.

bribery

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 ______.

cause marketing

The concept "let the buyer beware" that was prevalent in the United States before the 1960s is known by what legal term?

caveat emptor

Moral idealism considers ______.

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 ______.

choose

Economic espionage and corruption are unethical behaviors that negatively affect ______.

competitors

Which two of the following are the most common motivations for unethical consumer behavior?

consumer believes he or she can get away with it consumer's rationalization that the act is justified

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 ______.

economic espionage

Which two are the most common unethical behaviors when it comes to competition in business?

economic espionage corruption

Select the three items that are economic espionage activities.

electronic hacking illegal trespassing fraud

The moral principles and values that govern the actions and decisions of an individual or group are referred to as . (one word)

ethics

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 ______.

ethics

Select three elements that reflect a company's commitment to sustainable marketing.

green marketing social audits cause marketing

A company misleads consumers when it promotes its new cleaning product as being safe for the environment since that claim has never been proven. This is an example of ______.

greenwashing

In what industry is economic espionage most prevalent?

high-technology

Select the two ethical values that are addressed by the American Marketing Association Statement of Ethics.

honesty fairness

Which personal moral philosophy considers certain individual rights or duties as universal, regardless of the outcome?

moral idealism

Which two of the following are personal moral philosophies that have the most direct bearing on marketing practice?

moral idealism; ultirianism

Two personal moral philosophies are ________, which considers certain rights and duties as universal, and ________, which focuses on the greatest good for the greatest number.

moral idealism; utilitarianism

What is considered a human rights abuse by an American company may be viewed as an acceptable business practice in China, which illustrates that ______.

moral standards are relative to particular societies

Social responsibility means that organizations are ______.

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 the planet profit

Ethics deal with ________ moral principles and values, while laws are ________ values and standards that are enforceable in the courts.

personal; society's

What are common ways in which consumers fail to act ethically or responsibly? (Select all that apply)

pirating music submitting phony insurance claims putting inaccurate information on credit applications

The first and most central concept of social responsibility is ______ responsibility.

profit

The broadest concept of social responsibility is ______.

societal responsibility

Companies that engage in ________ marketing typically benefit from favorable word of mouth, and outperform other companies financially.

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

The right to be informed and the right to choose, as both pertain to the exchange process in marketing, are part of ______.

the Consumer Bill of Rights

Economic espionage is ______.

the clandestine collection of trade secrets or proprietary information about competitors

Which two are rights codified by the 1962 Consumer Bill of Rights?

the right to safety the right to be heard

Corporate culture can be defined as ______.

the set of values, ideas, and attitudes that are learned and shared among the members of an organization

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?

utilitarianism