MKTG 321 Mindtap Chapter 4
Which of the following is a primary difference between cause-related marketing and strategic philanthropy?
Cause-related marketing is short term, while strategic philanthropy is a long-term approach that uses its strengths to achieve organizational and social benefits.
Which of the following statements best reflects environmentalists' concerns regarding pricing?
Companies implementing sustainability practices must do so profitably and price products so that production costs as well as use of natural resources are recaptured.
The European Union (EU) has been more proactive in adopting sustainability practices and encouraging organizations to be better corporate citizens. Organizations in Europe may apply for the ________ designation to indicate their products are less harmful to the environment than competing products based upon scientifically determined criteria.
Ecolabel
Codes of conduct (ethics) must be detailed enough to take every situation into account.
False
If other persons within an organization approve of an activity and the activity is legal but not customary in the industry, the activity is probably both ethical and socially responsible.
False
Strategic philanthropy involves linking a firm's products to a particular social cause on a short-term basis.
False
The Federal Trade Commission (FTC) is an organization that plays a significant role in defining the principles and standards that define acceptable conduct in the marketing, promotion and advertising of products and services in the United States. Which one of the following statements is true about the organization?
Its primary mission is to protect consumers and promote competition.
Four basic rights are included in the consumer "bill of rights," which was included in a speech to Congress by President ____________ in a special message about protecting the consumer interest.
John F. Kennedy
Businesses that promote human welfare or goodwill and engage in efforts to improve the quality of life are fulfilling the _________ responsibility related to corporate social responsibility.
Philanthropic
Individuals and interest groups may take action against companies by lobbying government officials and engaging in letter-writing campaigns, petitions, and boycotts. One individual is considered the best-known consumer activist in the United States and is associated with legislation that requires safety features to make automobiles safer, such as seat belts, air bags, and head restraints. Who is considered to be the best-known consumer activist?
Ralph Nader
Which of the following best defines marketing citizenship?
The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities that their stakeholders expect of them.
The purchasing manager of a large fast-food chain is considering making changes to the packaging utilized for the sandwiches and burgers. The company has utilized light cardboard containers, which are made from paper pulp milled from trees and are considering switching to a product that's more expensive since it's made with 100% renewable sugarcane paperboard. The fast-food chain has embraced the practice of sustainability and is encouraging all managers to make decisions that result in reducing waste and enhancing the environment. Which of the following considerations would be most important for the purchasing manager in making a decision about switching products?
The purchasing manager should determine whether consumers are willing to pay more for sustainable packaging.
Although openness is not the solution to ethics issues, it does create trust and facilitates learning relationships.
True
An organization can rid itself of "bad apples" through screening techniques and enforcement of its code of conduct.
True
Opportunity is a set of conditions that limit barriers or provide rewards.
True
A sales representative for a chemical company is meeting with a soap manufacturer in Mexico and hoping to establish a business-to-business relationship to supply surfactants, which helps to keep the ingredients mixed together. The soap manufacturer is using a competitor firm currently and the purchasing agent indicates that she would consider switching firms if the sales representative could provide airline tickets to the United States for the purchasing agent and her family at an estimated cost of $2000. Which of the following is true regarding this interaction and request from the purchasing agent?
a distribution-related ethical issue is present
Which of the following statements about implementing an ethics and compliance program is true?
a strong corporate culture emphasizing ethical behavior can decrease unethical behavior within organizations
Which of the following best describes the concept of an ethical issue?
an identifiable problem, situation, or opportunity that requires an individual or organization to choose from among several actions that must be evaluated as right or wrong, ethical or unethical
Which of the following is an example of a price-related ethical issue?
bait and switch practices
Businesses that desire to implement strong ethics and social responsibility programs may face difficulties since it is impossible to satisfy all members of society and their decisions may alienate or dissatisfy some customers. Therefore, it's important that businesses
carefully monitor changes and trends in society's values.
Bank of America Merrill Lynch demonstrates __________ marketing through its partnership with Water.org that develops clean water solutions for communities around the globe.
cause-related
If Starbucks were to donate 5 percent of every coffee purchase to shelters for victims of domestic abuse for one month, this would be an example of
cause-related marketing
Macy's partners with the Goodwill organization by encouraging shoppers to bring used clothing and shoes for donations to Goodwill in exchange for discount coupons. Macy's "Shop for a Cause" campaign and partnership with Goodwill is an example of
cause-related marketing
The month of October is increasingly associated with breast cancer awareness month where adult women are encouraged to practice self-examination and undergo screenings in an attempt to be proactive in staying healthy and living a long life. The pink ribbon is associated with breast cancer awareness and during the month of October a wide range of businesses partner with breast cancer organizations and feature a pink ribbon on their product packaging. For example, Campbell's Soup releases limited edition cans of its popular chicken noodle soup featuring a pink label and support of breast cancer awareness initiatives. Campbell's Soup pink cans illustrate a practice known as
cause-related marketing.
Most experts agree that the ____________ sets the ethical tone for the entire marketing organization.
chief executive officer
Over the last several years, merger and acquisition activity has increased and in some industries, the big companies have become even bigger. For example, in the airline industry, four major mergers have occurred—Delta-Northwest, United-Continental, Southwest-AirTran, and American-U.S. Airways—since 2005, which has drastically reduced competition. This phenomenon could violate a consumer's right to
choose
Formalized rules and standards that describe what the company expects of its employees are known as
codes of conduct.
What is another term for codes of conduct?
codes of ethics
Organizations that adopt socially responsible business practices and engage in marketing citizenship must satisfy the expectations of their stakeholders across a variety of dimensions. Which of the following is not one of the dimensions of marketing citizenship?
competitive
Individual factors, organizational relationships, and opportunity interact to determine ethical decisions in marketing. Which of the following best describes opportunity?
conditions that limit barriers or provide rewards
Ethical standards for a company should ____
conform to industry and societal norms of ethical conduct
Marketing citizenship requires the adoption of a strategic focus to fulfill a variety of responsibilities to stakeholder groups. Which of the following is not one of the dimensions or responsibilities of firms implementing a marketing citizenship approach?
consumerism
Sarah Kavanagh, a teenager from Hattiesburg, Mississippi, began an online petition on Change.org to petition Coca-Cola and Pepsi to remove a potentially harmful ingredient, brominated vegetable oil or BVO from its products. BVO has been patented by many chemical companies as a flame retardant and is used in many fruit-flavored drinks to keep the fruit flavor mixed with other ingredients. Over 150,000 people from across the United States signed the petition and resulted in both Pepsi and Coca-Cola electing to remove BVO from its products. What type of activity was Sarah engaged in?
consumerism
The efforts of independent individuals, groups, and organizations to protect the rights of consumers is called
consumerism
In a classroom discussion, Jacob agrees with Marcie that consumers generally want biodegradable beverage cups. However, he says that to balance society demands, businesses in that industry must evaluate whether _____.
consumers are willing to pay higher prices for them
Marketing employees resolve ethical issues not only on what they have learned from their personal backgrounds but also on what they learn from coworkers, supervisors, and leaders within their organization. Therefore, _________ is very important since it gives its members meaning and suggests rules for how to behave and deal with problems within the organization.
corporate culture
Newsweek was acquired by International Business Times (IBT) that has a detailed employee handbook that specifies the appropriate attire expected of all employees. Journalists employed by organizations such as Newsweek are stereotypically associated with poor dress and grooming but IBT specifies that jeans, sneakers, sandals, flip-flops, t-shirts, tank tops, baseball caps, shorts or anything else that is deemed unprofessional or excessively distracting is prohibited. Further the manual states "shaggy, messy and neglected hair is not permissible and all tresses must be of natural color." The handbook stresses that disciplinary action such as suspension or discharge may be taken to those employees who repeatedly violate the dress code standards. The IBT dress code is an example of the importance of ______ in influencing ethical decision-making.
corporate culture
Ruben was recently hired as a sales representative for a buildings material company. He has been going through training and meeting his colleagues at the office. He has noticed that everyone is very friendly and welcoming and the office has a relaxed style. People are professional but show warmth and caring and keep telling Ruben that they're happy to provide assistance if he has any questions or needs help. Ruben has also noticed that most workers value a balanced approach between work and their personal life and his supervisor has stressed that Ruben should work an 8 a.m. to 5 p.m. schedule with a 1-hour break for lunch. Ruben's observations relate to the
corporate culture
Scenario 4.1. Buffalo Wild Wings began approximately 30 years ago by two friends—Jim Disbrow and Scott Lowery who enjoyed New York-style wings and decided to open a restaurant in Columbus, Ohio. Today, the company—known as B-Dubs has grown to over 840 locations around the world with at least one restaurant in every state. The company provides Wings. Beer. Sports.™ and promotes the restaurant as the "ultimate place to get together with friends, watch sports, drink beer and eat wings." Buffalo Wild Wings has partnered with the Boys and Girls Club of America through their Team Up for Kids program to help more kids play team sports. The company knows that children can gain many benefits from participation in team sports such as developing a passion, feeling of belonging, teamwork, enhanced self-esteem, commitment, and time management. Buffalo Wild Wings is also committed to helping to make their communities a better place to live, work, and grow. The company's commitment to support the Boys and Girls Club of America serves millions of youth and provides a safe and productive place for kids to go in their communities. Buffalo Wild Wings projects they will contribute $6 million and support 100,000 kids to participate in team sports by 2017. One source of funding for the Team Up for Kids program is through sales of Buffalo Wild Wings sauce and seasoning bottles. The company donates 50 cents from every bottle sold to the Boys and Girls Program and provides up to $40,000 in Team Up for Kids ALL STARS grants in local communities. In addition, Buffalo Wild Wings hosts Community Days and donates 10% of total sales to the Boys and Girls organization. Refer to Scenario 4.1. Which of the following represents a benefit of Buffalo Wild Wings' social responsibility program?
creates goodwill for the organization
Companies are typically evaluated or judged based upon their market share, position in the marketplace, profitability and growth and businesses have been criticized for taking a short-term view of their company's impact. Which level of the corporate social responsibility pyramid does this short-term, outcomes-based perspective reflect?
economic
Meredith Downs, a marketing consultant to organizations regarding corporate social responsibility always emphasizes that firms must first recognize their _______ responsibility to be profitable and provide a return on investment to their owners and investors as well as create jobs and contribute goods and services to the economy.
economic
The Garlic Press is a locally owned retailer who specializes in products for the home chef and a variety of gift items. They pride themselves on offering products that are not available in the big box stores and like to partner with suppliers who are committed to social responsibility. At the recent wholesale market in Atlanta, Georgia, the buyer for linens, Tabitha Ringenberger was interested in purchasing table cloths, napkins, and placemats from a firm who produces the products from recycled materials. The suggested retail prices for placemats were $9.99 each and the wholesale price was $7.99—providing a small markup of only $2 on each placemat. Although Tabitha liked the products, she didn't feel the investment would be appropriate since she typically likes to achieve a 100% markup on wholesale prices. Which dimension of social responsibility is illustrated by Tabitha's decision?
economic
As discussed in the text, the most basic levels of social responsibility are _____ and _____.
economic; legal
Which of the following statements best characterizes the difference between social responsibility and marketing ethics?
ethics relates to individual and group decisions while social responsibility deals with the total effect of marketing decisions on society
Amanda believes that the corporate culture at her company is best conveyed in informal ways. What are some informal ways that corporate culture is most likely to be expressed?
extracurricular activities and work habits
Bribery is a pricing-related ethical issue.
false
Which of the following tactics can improve ethical conduct within an organization?
fire employees who engage in unethical behaviors
A product-related ethical issue
generally occurs when marketers fail to disclose risks associated with a product or information regarding the function, value, or use.
Which of the following is not a benefit of socially responsible business practices?
generates greater employee turnover
Jennifer Beggs is the owner of Creative Solutions, an independent marketing communications firm. Jennifer started her company 10 years ago with just herself and her husband but quickly grew the company due to their creativity, ability to embrace new technology and platforms such as social media. The company now has 5 locations across the United States and over 150 employees. Jennifer has grown concerned about the company culture as she has noticed that each office has a slightly different "vibe" or style of work. One office is very relaxed and allows employees to work a flexible schedule and dress in very casual attire while another office might have strict rules and regulations regarding employees' work schedules as well as dress code. Jennifer also worries about employees' behavior in dealing with customers or suppliers—do different offices have different standards or practices? Jennifer is wondering what actions she could take to control these activities across all locations and employees of her company. Which of the following could best help Jennifer ensure consistency in actions and provide uniform standards and policies regarding acceptable behavior?
implement a code of conduct
Mattress Select is a regional, family-owned retailer of high-quality mattresses, and each location employs approximately 15 individuals—mostly sales representatives who interact with customers and generate revenue for the firm. Danika Jones, District Sales Manager, has been reviewing the past performance history of the 20 sales representatives who report to her, and she notices quite a difference in productivity between certain employees. In addition, Danika observes that some employees are more effective in closing sales for the most expensive mattresses while other employees sell a wide range of mattresses. Danika decides to observe the sales representatives and spends several hours each week shadowing different members of her team. Danika notices that the sales representatives who routinely sell the highest priced mattresses often steer customers to those brands and are very persuasive in presenting why a customer should buy the more expensive product. Danika also observes that some customers are put off by this practice. Even after telling the sales representative that the mattresses are out of their price range, the sales representative continues to try and sell the higher priced brand. Danika believes that this practice is harmful as the sales representatives are not listening to the customers and are not attempting to provide a product which best meets their needs. Danika is also concerned because the chain will often promote a particular mattress brand as an "on sale" or "promotionally priced" item, but the sales representative steers the customer to the higher priced models. She's concerned that this could be bad for their business. Danika is wondering what actions she could take to control these activities across all locations and employees of her company. Which of the following could best help Danika ensure consistency in actions and provide consistent standards and policies for sales representatives to follow when assisting customers with their mattress selection?
implement a code of conduct
Which of the following outcomes are most likely for companies that incorporate ethics and social responsibility programs?
improved profitability
Zach Turek accepted a sales internship with a global enterprise that provides business solutions and information management services. As part of his summer internship, Zach will be engaged in prospecting activities focusing on the small business customer such as attorneys, architects, accountants, and insurance companies who may need office equipment such as photocopiers, printers, and digital solutions. Zach's territory includes several office buildings in downtown Chicago where visitors must register with security and have an appointment with someone in the building. During training, Zach was shadowing a full-time sales representative who told him that he typically tells a little white lie in order to get past security. He'll use the name of a current customer and indicate that his appointment will be with that customer but he'll actually be prospecting for other customers instead. After spending the day shadowing this sales representative, Zach is feeling concerned about whether or not he made a good choice for his summer job. He hates to lie and although it seems like everyone is doing it, it really bothers him. He doesn't believe he'll be able to use this method of gaining entry past security. Zach doesn't want to compromise his own personal values to be successful with the internship. Zach's dilemma represents the ________ factor that influences the ethical decision-making process.
individual
Jared Williams was raised in a family that put others first and from a young age, Jared witnessed his family participate in a variety of community oriented events through their service on the school board, dedication to help raise funds for the American Cancer Society through its Relay for Life event, and care and concern they showed all people. Jared learned that humility and generosity were desired qualities since his parents were well-liked and respected members of the community. Jared is a sales manager and often partners with local nonprofit organizations as a way to involve his sales staff and other members of the company in community service activities, which build cohesiveness and camaraderie among staff members. The influence of Jared's family illustrates the role of _______ in determining ethical decisions in marketing while his leadership in organizing community service activities illustrates the role of _________ in ethical decision-making.
individual factors; organizational relationships
The most basic principles related to marketing ethics, which encourage marketers to conform to society's expectations for conduct are
laws and regulations.
Principles and standards that define acceptable marketing conduct as determined by various stakeholders is referred to as
marketing ethics.
As a firm fulfills its basic economic responsibilities, it must simultaneously _____.
obey laws and regulations
Linda Singley is a marketing ethics consultant who conducts seminars and assists organizations to improve their organizational culture. Linda often tells companies that one bad apple can spoil the barrel. Which of the following best exemplifies the apple analogy?
one unethical employee can lead to an organization of unethical employees
April works as a sales representative for a regional snack foods company that specializes in various flavors of potato chips cooked in peanut oil. The snacks are preferred over the major brands in grocery and convenience stores in the regional market. April has been hoping to qualify for a special incentive contest and is very close to reaching her sales goal to qualify for an all-expense paid cruise to the Caribbean. April decides to slightly adjust the amount of product ordered by each of her customers since she knows that the chips will sell and it's likely the customers won't notice the slight increase in quantity ordered. This is an example of how _______ influences ethical decision-making.
opportunity
Justin believes that certain conditions at his company are very conducive to engaging in unethical behavior because these conditions provide rewards such as faster promotions and better salaries for those who bend the rules. Justin's company seems to allow ____ for unethical behavior.
opportunity
Paul is the owner of an alcoholic beverage distribution company. His industry is guided by a variety of local, state, and federal laws and Paul must ensure that all employees follow the rules, procedures, and laws. He recently fired an individual who was altering the "sell by" date on beer since the law requires that expired product must be disposed of and any product that's not sellable would be deducted from the sales representative's sales, thus affecting his commissions. Paul's strict enforcement of the procedures and laws as well as firing the employee who violated these laws relates to the _____ factor, which determines ethical decisions in marketing.
opportunity
Recently a sales representative faced an ethics examination for overreporting the number of miles he had driven as part of his job in traveling to meet with customers and prospective customers in his territory. The overstatement of mileage is important since the sales representative was reimbursed for the costs based upon the number of miles he had driven. The oversight of the sales representative's accounting office that caught the error in reporting is an important element to influence the _____ factor of ethical decision-making.
opportunity
Roberta is the social media manager for a regional hospital and has participated in several training sessions focused on ethics and ethical behavior. The hospital prominently displays its mission and vision statement and has a formalized code of ethics, which is communicated to employees. One of the ethical principles that's part of the hospital's code of ethics is to be honest and truthful and to tell the truth in all circumstances. Roberta has heard that sometimes medication errors occur and that patients may not be informed if no adverse or negative outcomes result from the administration of the incorrect medication. Roberta is concerned about the application and enforcement of the code of ethics and believes that the ______ factor could impact employees' ethical decisions.
opportunity
Sabrina is a sales representative for a rental car company and frequently takes treats, such as muffins, cupcakes, donuts, or cookies to her customers. She works closely with body shop owners and businesses who assist customers with their car repairs after an accident. Sabrina is able to expense these items as part of her business entertainment expense. Occasionally, Sabrina will purchase sweets for herself or her friends using the company credit card and will include these expenses in her monthly expense account report. Sabrina doesn't worry about being caught because no one double-checks the receipts or expense statements. With regard to ethical behavior, this situation relates most closely to
opportunity
Citibank was recently fined $35 million by the Consumer Financial Protection Bureau and ordered to refund $700 million to customers who were affected by the organization's use of deceptive marketing practices which resulted in overcharging customers. Between 2003 and 2012, the bank's telemarketing sales representatives misrepresented fees, used leading questions and provided ambiguous answers to customers' questions. Citibank is reevaluating the compensation and incentive-based bonus system that's used to motivate and reward employees who serve as account representatives in telemarketing positions. The behavior of Citibank employees to act unethically was most likely a result of
opportunity factors that influence ethical decision-making.
Carmella Rodriguez is employed as an inside sales representative at a company that provides information technology products, expertise, and services to small, medium, and large businesses. Carmella works in the education sector and is working hard to qualify for a sales contest sponsored by Apple to promote its iPad to the K-12 education market. Carmella was speaking with Nicole, another sales representative at the firm who is close to reaching the contest goal. Nicole tells Carmella that she's going to have one of her friends place an order for the iPads and then cancel the order after the contest date ends. Carmella asks Nicole whether this is really OK but Nicole says that people do it all the time! The interaction between Carmella and Nicole illustrates the important role of __________ in influencing ethical decisions in marketing.
organizational relationship factors
Brewers Distributing is a regional beverage distributor and has developed a solid reputation as a partner to the community through their sponsorship of charitable events, such as the American Cancer Society's Relay for Life event. Brewers Distributing is a title sponsor of the event and also provides water and soft drinks for participants as well as several employees who volunteer at the event. Brewers Distributing's partnership with the American Cancer Society demonstrate the company is in the ______ level of corporate social responsibility pyramid.
philanthropic
Microsoft has been recognized as one of the World's Most Ethical Companies and the Bill and Melinda Gates Foundation's mission states: "At the Gates Foundation, we believe every person deserves the chance to live a healthy, productive life." The foundation supports organizations that serve causes related to poverty, health, and education. The Microsoft organization is operating at the ______ level of the pyramid of corporate social responsibility.
philanthropic
Scenario 4.1. Buffalo Wild Wings began approximately 30 years ago by two friends—Jim Disbrow and Scott Lowery who enjoyed New York-style wings and decided to open a restaurant in Columbus, Ohio. Today, the company,—known as B-Dubs, has grown to over 840 locations around the world with at least one restaurant in every state. The company provides Wings. Beer. Sports.™ and promotes the restaurant as the "ultimate place to get together with friends, watch sports, drink beer and eat wings." Buffalo Wild Wings has partnered with the Boys and Girls Club of America through their Team Up for Kids program to help more kids play team sports. The company knows that children can gain many benefits from participation in team sports such as developing a passion, feeling of belonging, teamwork, enhanced self-esteem, commitment, and time management. Buffalo Wild Wings is also committed to helping to make their communities a better place to live, work, and grow. The company's commitment to support the Boys and Girls Club of America serves millions of youth and provides a safe and productive place for kids to go in their communities. Buffalo Wild Wings projects they will contribute $6 million and support 100,000 kids to participate in team sports by 2017. One source of funding for the Team Up for Kids program is through sales of Buffalo Wild Wings sauce and seasoning bottles. The company donates 50 cents from every bottle sold to the Boys and Girls Program and provides up to $40,000 in Team Up for Kids ALL STARS grants in local communities. In addition, Buffalo Wild Wings hosts Community Days and donates 10% of total sales to the Boys and Girls organization. Refer to Scenario 4.1. Buffalo Wild Wings' partnership with the Boys and Girls Club reflects a(n) ____ responsibility that their stakeholders expect of them.
philanthropic
Steve Jobs who was the founder of Apple believed the mission of the company was "To make a contribution to the world by making tools for the mind that advance humankind." Which level of the corporate social responsibility pyramid does Steve Jobs' mission statement reflect?
philanthropic
The ______ dimension is at the top of the corporate social responsibility pyramid and includes a company's commitment to be a good corporate citizen and promote human welfare or goodwill.
philanthropic
Danny Livingston runs a successful moving business and focuses his business on the local market of people moving from one home to another or senior citizens relocating from their homes to smaller apartments or assisted living. He is concerned about being a good corporate citizen and donates a portion of his profits to the Alzheimer's Association. He also complies with all the local, state, and federal laws, which apply to his business. According to the pyramid of corporate social responsibility, which dimensions are currently included in Danny's business model?
philanthropic and legal
Citibank is committed to education programs serving children from K-12 and typically funds between $10 and $15 million annually through grants. The firm is dedicated to being a socially responsible firm through these initiatives as well as others. However, Citibank was recently fined $358 million dollars by the Commodity Futures Trading Commission for the "attempted manipulation of, and for aiding and abetting other banks' attempts to manipulate, global foreign exchange benchmark rates to benefit the positions of certain traders." Therefore, Citibank has shown a fulfillment of its _____ responsibility but has violated the _______ dimension of corporate social responsibility.
philanthropic; legal
What are some of the common price-related ethical issues?
predatory pricing and price fixing
Jennifer was diagnosed with a lymphoma and must have chemotherapy treatments every three weeks. Jennifer is concerned that the pharmaceutical company might engage in _________, which is common in the industry especially when customers have a high need for the medicine and very few substitutes exist.
price gouging
Automobile manufacturers may sometimes issue recalls due to quality problems. BMW, which produces Mini Coopers, issued a product recall in 2012 after the National Highway and Traffic Safety Administration (NHTSA) had an alarming number of reports related to electrical fires. BMW-Mini Cooper first learned of engine fires in 2009 and suspected water pump failures might be the source of the problem. BMW-Mini Cooper's failure to act more quickly in response to the water pump issue causing electrical fires is an example of a ______-related ethical issue.
product
Many consumer product manufacturers include information on their labels that the products are cholesterol free and low fat. These claims, which are prominently displayed on products such as cookies and crackers, provides an inference that the product is "healthy" or "good" for the consumer. This practice involves an ethical dilemma related to which marketing mix element?
product
The Consumer Products and Safety Commission posted a notice on its website that Olympus model VG-170 Digital Point-and-Shoot Cameras sold exclusively at HHGregg Appliance Inc. stores could have a manufacturing defect. Olympus utilized a manufacturer in China and determined that some of the circuit boards within the camera had not been assembled correctly. If an improperly installed part touches the circuit board it could result in an electric shock to the user. Olympus is taking proactive steps to remove the cameras from distribution as well as assist customers who purchased the product. Olympus is offering a replacement camera to customers who return the defective camera to the company. This is an example of a ____________-related ethical issue.
product
Bridgewater, Inc. produces its industrial components in several developing countries outside the United States. The majority of Bridgewater's customers are in the U.S. and Canada. One of Bridgewater's customers is Craft Care, who uses Bridgewater components in the production of child car seats. Recently, there was a recall of Craft Care's car seats due to serious injuries, which the company has traced back to Bridgewater's components. If Bridgewater knew about the faulty components, but failed to notify Craft Care, it would have been engaging in unethical behavior with regard to which of the following marketing issue areas?
product-related
Patagonia is a clothing manufacturer based in California and encourages consumers who purchase their products to donate the items to local charitable organizations or to return the used products back to Patagonia. According to Patagonia's website, they state "If you own a Patagonia product that's well beyond repair, please return it to us so we can recycle it into something new, or repurpose what can't yet be recycled. We'll pay for the postage or you can drop it off at your nearest Patagonia retail store. Since 2005, we've taken back over 82 tons of clothing for recycling." This initiative supports Patagonia's efforts to implement the ________ goal of sustainability.
reinvent the concept of a product
Marketers can demonstrate their commitment to social responsibility by creating programs to protect and preserve the natural environment through sustainability initiatives to conserve natural resources and reduce pollution. Sustainability programs should meet specific goals as part of the program to protect and preserve the natural environment. Which of the following is not one of the goals of sustainability?
require consumers to engage in recycling efforts
The consumer "bill of rights" included four basic rights:
right to be heard, right to safety, right to be informed, and the right to choose
Scenario 4.1. Buffalo Wild Wings began approximately 30 years ago by two friends—Jim Disbrow and Scott Lowery who enjoyed New York-style wings and decided to open a restaurant in Columbus, Ohio. Today, the company—known as B-Dubs has grown to over 840 locations around the world with at least one restaurant in every state. The company provides Wings. Beer. Sports.™ and promotes the restaurant as the "ultimate place to get together with friends, watch sports, drink beer and eat wings." Buffalo Wild Wings has partnered with the Boys and Girls Club of America through their Team Up for Kids program to help more kids play team sports. The company knows that children can gain many benefits from participation in team sports such as developing a passion, feeling of belonging, teamwork, enhanced self-esteem, commitment, and time management. Buffalo Wild Wings is also committed to helping to make their communities a better place to live, work, and grow. The company's commitment to support the Boys and Girls Club of America serves millions of youth and provides a safe and productive place for kids to go in their communities. Buffalo Wild Wings projects they will contribute $6 million and support 100,000 kids to participate in team sports by 2017. One source of funding for the Team Up for Kids program is through sales of Buffalo Wild Wings sauce and seasoning bottles. The company donates 50 cents from every bottle sold to the Boys and Girls Program and provides up to $40,000 in Team Up for Kids ALL STARS grants in local communities. In addition, Buffalo Wild Wings hosts Community Days and donates 10% of total sales to the Boys and Girls organization. Refer to Scenario 4.1. Buffalo Wild Wings announced a corporate edict to prohibit patrons from bringing guns into the restaurant. Many states in which Buffalo Wild Wings operates have passed concealed carry legislation making it legal for citizens to carry a concealed weapon. Some states prohibit guns in establishments that serve alcohol but Buffalo Wild Wings wanted to ensure the safety of all guests by formally prohibiting all concealed weapons. Buffalo Wild Wings received complaints by gun advocates who say they'll stop patronizing the restaurant chain. Which "right" is Buffalo Wild Wings securing through this new policy?
right to safety
Marketers of products must provide thorough and complete instructions regarding a product's use as well as testing the product for reliability and quality. These activities relate to the consumer's right to
safety.
Which of the following is not one of the factors that influences the ethical decision-making process?
salary or wages
Panera Bread advertises that they bake bread before sunrise and donate after sunset. The company is committed to "live consciously" and makes donations of leftover product to food banks and shelters in the local community. Panera's action of donating leftover product demonstrates they are concerned about the _______ dimension of corporate social responsibility.
social philanthropic
Engineers at Caterpillar, Inc. have been working to design their products so that they are more fuel efficient and have lower emissions to enable their customers to reduce their carbon footprint and improve air quality. Caterpillar's concern about air quality, fuel economy, and the carbon footprint of their customers is related to the firm's
social responsibility
Target recognizes the importance of education to the future of the United States and how schools are underfunded. Target is committed to making a difference and donates 5% of its profits to charitable organizations including schools and allows shoppers to designate a school that would receive funds related to the shopper's purchases. Target is a generous contributor and 5% of its profit represents approximately $4 million each week in donations. In the area of education alone, Target has donated more than $875 million since 2010. Target's contribution to education and other community-based nonprofits is an example of the firm's
social responsibility
Scenario 4.1. Buffalo Wild Wings began approximately 30 years ago by two friends—Jim Disbrow and Scott Lowery who enjoyed New York-style wings and decided to open a restaurant in Columbus, Ohio. Today, the company—known as B-Dubs has grown to over 840 locations around the world with at least one restaurant in every state. The company provides Wings. Beer. Sports.™ and promotes the restaurant as the "ultimate place to get together with friends, watch sports, drink beer and eat wings." Buffalo Wild Wings has partnered with the Boys and Girls Club of America through their Team Up for Kids program to help more kids play team sports. The company knows that children can gain many benefits from participation in team sports such as developing a passion, feeling of belonging, teamwork, enhanced self-esteem, commitment, and time management. Buffalo Wild Wings is also committed to helping to make their communities a better place to live, work, and grow. The company's commitment to support the Boys and Girls Club of America serves millions of youth and provides a safe and productive place for kids to go in their communities. Buffalo Wild Wings projects they will contribute $6 million and support 100,000 kids to participate in team sports by 2017. One source of funding for the Team Up for Kids program is through sales of Buffalo Wild Wings sauce and seasoning bottles. The company donates 50 cents from every bottle sold to the Boys and Girls Program and provides up to $40,000 in Team Up for Kids ALL STARS grants in local communities. In addition, Buffalo Wild Wings hosts Community Days and donates 10% of total sales to the Boys and Girls organization. Refer to Scenario 4.1. Buffalo Wild Wings' commitment to support 100,000 kids to participate in team sports by 2017 and donate $6 million in funds to the Boys and Girls Club is evidence of its focus on
social responsibility.
A ______ orientation is one where organizations consider the diverse perspectives of different groups in their daily operations and strategic planning.
stakeholder
A _____________ approach involves the synergistic use of organizational core competencies and resources to address key stakeholders' interests and to achieve both organizational and social benefits.
strategic philanthropy
Sabastian Richer was excited about joining a major insurance brokerage company as an account executive since the company partnered with one of his favorite charities—an organization that raises funds to support research related to pediatric cancer as well as provide services to patients and their families. Sabastian knows the importance of research and support to children with cancer since he lost his younger sister to a rare form of brain cancer. In addition, the company encourages employees to give their time to charitable causes and employees can volunteer up to three days each month. The company also matches employee contributions to charitable organizations and provides payroll deduction to participate in the annual United Way campaign. The insurance brokerage company has adopted a __________ approach to social responsibility.
strategic philanthropy
Coca-Cola recently released the following information as part of its annual report, "We are working to balance the water we use by 2020, returning to our communities and nature an amount of water equivalent to that used in our beverages and their production. We are currently on track to achieve this water goal. In 2013, we replenished an estimated 68% (a calculated estimate of 108.5 billion liters) of the water used in our finished beverages through 509 community water partnership projects in more than 100 countries, and we improved our water use efficiency for the 11th consecutive year with an 8% improvement over 2010." This example indicates Coca-Cola is concerned with the _______ issue of social responsibility.
sustainability
Consumer goods manufacturers are focusing their attention on developing products that use organic ingredients and contain products that are safe for humans as well as the environment. Which social responsibility issue is most associated with the natural environment?
sustainability
Mona Weiss and Scott Shields are founders of the company Eco Nuts and were contestants on the popular show, Shark Tank. The Eco Nuts company provides natural products which are environmentally friendly and organic. The company utilizes soap nuts that are berries that grow on a tree in the Himalayas and naturally contain soap called saponin. Consumers simply place several Eco Nuts in a cloth bag and place in their washing machine. The soap nuts can be reused up to 10 times and are naturally biodegradable and reduce the waste associated with plastic bottles of laundry detergent. The founders of Eco Nuts are emphasizing the _________ issue of social responsibility as a strategy to connect with customers and generate sales.
sustainability
You are a member of the North American region's sales team at a major technology company in New Haven, Connecticut. It is year-end, and there is a mad rush going on to make sure sales targets are met. One of your team members suggests to you that he can quickly boost his sales numbers by calling a friend and asking him to put through an order today, then cancel the order the next week before it ships. You question whether this is ethical, but you need to hit your numbers for the month, so you go along with the tactic anyway. This is an example of ___.
the organizational relationship factors that influence ethical decision making
Marketing ethics relates to individual and group evaluations about what is right or wrong in a particular marketing decision-making situation; social responsibility deals with the total impact of marketing decisions on society.
true
Many environmentalists and marketers believe that companies should attempt to reinvent the concept of a product as part of their sustainability goals. Which of the following includes the specification or classification of products that companies should have?
unsalables, consumables, and durable goods
Masood is a sales representative for a payroll services company and is responsible for developing new business accounts. He is expected to obtain new business and has generous bonuses if he achieves his quotas and makes even more money if he exceeds his quota. Once a new account is signed, the customer is partnered with an inside sales representative who assists the customer with their payroll services needs and Masood has little to no interaction with the customer again. At the end of each quarter when bonuses are calculated, Masood sometimes uses manipulative tactics and exaggerates the capabilities of the payroll services the company provides. Masood has never been reprimanded and as far as he knows, no customers have ever complained about his actions. Which of the following is most likely regarding Masood's behavior in the future?
use similar tactics in the future
Marketers may face ethical dilemmas in all marketing mix elements—product, pricing, promotion, and distribution. In order to resolve an ethical dilemma or determine the right course of action, marketing managers may reflect upon their _________ of right and wrong, consider the corporate ethical culture within the organization, and the degree of opportunity for unethical behavior.
values
