Chapter 16: Social Responsibility and Sustainability

In a world-wide survey conducted by the management consulting firm, McKinsey, it was found that ______ of the nearly 2,000 executives surveyed considered sustainability very or extremely important in new product development, reputation building, and overall corporate strategy.

50%

Approximately what percentage of firms in Japan use social media and digital technology tools to engage with customers on the sustainability of their goods and services?

80%

As the result of globalization, it is imperative for marketers to develop strategies that fit within both domestic and ______ markets.

global, international, or foreign

Another name for environmental marketing is ______ marketing.

green

The ______ ______ is represented by sustainability-oriented customers and the businesses that serve them.

green market

Ethics can best be described as ______.

moral standards

When a company develops a focus on fulfilling the economic, legal, ethical, and philanthropic dimensions, it can express this focus by ______.

preparing a formal corporate social responsibility statement

Which of the following accurately describes the green market?

A group of sustainability-oriented customers and the businesses that serve them

GE developed the Ecomagination Challenge as a part of its CSR efforts. The premise of this social media effort is that ______.

businesses, innovators and students can develop clean energy ideas and submit them for funding

The laws designed to protect the natural environment against undue harm by individuals and organizations are known as ______ ______.

environmental regulations or regulation

The Clean Water Act and the Energy Policy Act are both examples of ______.

environmental regulations

Sanjay knew that his company would make a bigger profit if it used zippers imported from Thailand, but he didn't feel right using the product because he knew it was inferior and customers expected high-quality clothing. Which dimension of corporate social responsibility is Sanjay demonstrating?

ethical

______ refers to the moral standards expected by a society.

ethics

Substantive changes in marketing actions and a broad-based coordination of all non-marketing activities takes place in ______ greening.

quasi-strategic

The United Nations report entitled, Our Common Future, laid the groundwork for the modern understanding of ______.

sustainability

Which corporate philosophy focuses on meeting the needs of the present without affecting the ability of future generations to meet their own needs?

sustainability

The notion of building products and services in a way that eliminates negative environmental impacts is referred to as ______.

sustainable design

Isabella's company has decided to stop advertising in the local news magazine because it learned that the magazine burns all of its waste and sends toxic fumes into the environment. Isabella's company is using ______ greening as a strategy.

tactical

Which product is a good example of sustainable design?

LED light bulb

In which decade did sustainability gain international attention as the result of the United Nations report entitled Our Common Future?

1980s

Companies owned by members of the European Union would be more likely to rationalize sustainability strategies based on which of the following concepts? (Check all that apply.)

Citizenship Corporate accountability Moral commitment

The law which places limits on greenhouse emissions is known as the ______.

Clean Air Act

Which of the following is cited in the text as being the basis for corporate social responsibility, sustainability and environmentalism whether they are domestic or global efforts?

Communication

______ refers to a movement made up of citizens and government entities that focuses on protecting consumers and promoting their interests.

Consumerism

______ ______ ______ is an organization's obligation to maximize its positive impact and minimize its negative impact on society.

Corporate or C Social or S Responsibility or R

Mallory bought shares of Target stock in hopes that she would make a profit she could put toward her children's college funds. Which dimension of corporate social responsibility is Mallory relying on from Target?

Economic

In what ways does corporate social responsibility benefit a company? (Check all that apply.)

Enhances company's brand image Improves employee retention

True or false: Since Gina Gomez works for a nonprofit organization, corporate social responsibility does not impact her job.

False

Which questions would be logical for a company to address when developing a sustainability vision? (Check all that apply.)

How does our business strategy reflect our impact on society? What is our major impact on society? How is the world enriched by our goods or services?

What factors should be considered when conducting an audit? (Check all that apply.)

Measurements should be qualitative Inclusion of all significant stakeholders Measurements should be quantitative

As the owner of the company, Trisha wanted to be able to give back to society. She decided to forego her salary for the first three months of the year and give that money out as grants to local non-profit groups. Which dimension of corporate social responsibility is Trisha demonstrating?

Philanthropic

When trying to implement sustainability efforts on a global scale, what is most likely to limit the availability of sustainable goods or increase their prices to consumers?

Political barriers

Which scenario demonstrates corporate volunteerism?

Roger's bank sponsors the Step Up program and his employees will climb the steps of a skyscraper to benefit the local children's hospital.

Which environmental marketing activity involves implementing limited change within a single area of the organization?

Tactical greening

What are the three levels of environmental marketing activities? (Check all that apply.)

Tactical greening Quasi-strategic greening Strategic greening

As an example of how social media can be used to enhance a company's CSR efforts, which retailer implemented a program called "Turn Summer Play into Summer Learning" in an effort to demonstrate its commitment to education and connect with current and future customers?

Target

Which definition accurately describes corporate philanthropy?

The act of an organization voluntarily donating some of its profits or resources to charitable causes

Which statement is true for companies that make a commitment to environmental concerns?

The company often earns favorable public opinion and loyal customers.

A U.S.-based company would be more likely to point to how sustainability efforts affect the company's ______ when rationalizing these efforts.

bottom line

True or false: The benefits of an environmental marketing strategy extend to virtually all of a firm's stakeholders when the strategy is effectively integrated within a firm's general marketing plan.

True

The Global Sustainable Tourism Council was formed by the ______ in an effort to promote best practices in sustainable tourism around the world.

United Nations

Which business tool should be used to determine the success of a corporate social responsibility program?

an audit

Once a company has established a corporate social responsibility program, it is essential for the company to ______.

assess how well it is working

Consumerism activities are typically initiated by which two groups?

citizens government entities

Sloane has decided to stop buying her favorite brand of sweaters because she learned that the manufacturer no longer buys wool from producers in the United States. Sloane is demonstrating ______.

consumerism

When a consumer protection group implements a plan to encourage people to stop drinking diet soft drinks, it is an example of ______.

consumerism

An explosion at a nuclear facility was contained and no contaminants were released into the air. However, many of the local residents were concerned and as a result, the nuclear facility held town meetings to explain what had happened and installed new alarm systems that would warn the community if anything dangerous was ever released in the air in the future. The facility is demonstrating ______.

corporate social responsibility

As the Executive Director of HCSI, Gina Gomez leads the organization's efforts to develop relationships with socially responsible firms interested in supporting the local community and its citizens. These efforts maximize the positive impact and minimize the negative impact of businesses on society and as such are an example of ______.

corporate social responsibility

The policy or practice of employees volunteering their time or talents for charitable, educational, or other worthwhile activities is known as ______.

corporate volunteerism

Even though it had not been approved by the state authorities, the gas company went ahead and began drilling for additional sources. The gas company was in defiance of the ______ dimension of corporate social responsibility.

legal

The ______ dimension of corporate social responsibility is concerned with whether a company obeys the law.

legal

As the text states, in order to get stakeholders to agree to sustainability initiatives, it is the job of ______ to communicate a sustainability vision.

marketers

An organization's corporate social responsibility program is typically developed by the ______ department.

marketing

Which department in a company would be primarily responsible for developing the ideas and strategies behind a CSR program?

marketing

Enron and Arthur Andersen are two well-known cases of companies that met their demise when they failed to ______.

obey the law

The importance of the economic dimension of CSR is evidenced by the fact that ______ of Americans invest in the stock market in the United States.

over 50%

Which of the following words best describes the effect of social media on a company's CSR activities?

proactive

When a company redesigns its packaging to reflect ecological views, it is an example of ______-______ greening.

quasi strategic

Publicly-traded firms have a unique responsibility involving the economic dimension of corporate social responsibility because ______.

they must respond to shareholders that have invested in the firm hoping to make a profit

There are ______ levels of environmental marketing strategies.

three or 3

As the text relates, the global environmentalism efforts of the U.K. retailer, Marks & Spencer, demonstrate how such efforts can be profitable for a company. While Marks & Spencer spent $323 million over five years to implement a sustainability strategy, in ______ years the investment had paid for itself.

two