CHP 4: Marketing Ethics

________ 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 two statements are TRUE of bribery?

Bribes are a form of corruption that provide personal benefit to an authority figure. It is more common in countries in the earlier stages of economic development.

________ development involves conducting business in a way that protects the natural environment while making economic progress.

Sustainable

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

are not "very high"

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

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

those who can affect achievement of its objectives

In cause marketing, charitable contributions are not outright contributions but rather are ______.

tied to customer revenues produced through the promotion of one of its products

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

sustainable

In which situation should a marketer be especially careful in order to be sensitive to the Consumer Bill of Rights?

collecting personal information from online consumers

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

competitors

Place the 5 steps of a social audit in the correct order with the first step listed at the top.

sustainable marketing

Green marketing is ______.

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

The legal concept of caveat emptor closely translates to ______.

"let the buyer beware"

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

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

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

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

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 can be improved by providing greater specificity, taking the burden of judgment off employees. It often covers problems like contributions to government officials and conflicts of interest.

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

Preservation of the ecological environment The general public

Which is the best example of cause marketing?

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

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

Which personal moral philosophy focuses on "the greatest good for the greatest number"?

Utilitarianism

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

Utilitarianism Moral idealism

A systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility is known as ______.

a social audit

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

In Yoplait's "Think Before You Pink" campaign, the company donated money to breast cancer research for each cup of pink-lidded yogurt that was sold. This is an example of ______.

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

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

culture

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

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

ethics

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

ethics; laws

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

fairness honesty

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

favorable word of mouth financially outperform less responsible companies

Marketing efforts to produce, promote, and reclaim environmentally sensitive products are known as ______ marketing.

green

Ikea invests in alternative solutions such as using solar panels and wind turbines to to supply energy to its buildings, and the company is committed to decreasing the amount of raw materials it uses in making its products and avoiding the depletion of natural resources. These actions by Ikea are an example of ______.

green marketing

When a company like 3M has a formal program to reduce pollution and recycle material, it is pursuing ______.

green marketing

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

green marketing cause marketing social audits

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

The practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice is termed ______.

greenwashing

In what industry is economic espionage most prevalent?

high-technology

Select the three items that are economic espionage activities.

illegal trespassing electronic hacking fraud

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

moral idealism

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

Moral idealism and utilitarianism are two prominent personal ________ that are important in marketing.

moral philosophies

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

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

personal; society's

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

profit

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

profit

Select the three concepts of social responsibility.

profit responsibility societal responsibility stakeholder 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

Profit responsibility, stakeholder responsibility, and societal responsibility are the three concepts of ______.

social responsibility

The fact that organizations are part of a larger society and are accountable to that society for their actions is the essence of

social responsibility

The broadest concept of social responsibility is ______.

societal responsibility

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

stakeholder

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

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

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

Ethics refers to ______.

the moral principles and values that govern the actions and decisions of an individual or group

Organizations that place an emphasis on the triple-bottom line recognize the need to improve the state of what three items?

the planet people profit

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 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

Employees who report unethical or illegal actions of their employers are engaged in ______.

whistle-blowing