Marketing Chapter 4

Marketing ethics

is a dimension of social responsibility that involves principles and standards that define acceptable conduct in marketing

Consumerism

is the efforts of independent individuals, groups, and organizations to protect the rights of consumer

Organizational (corporate) culture

A set of values, beliefs, goals, norms, and rituals that members of an organization share

Ethical issue

An identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical

Social responsibility

An organization's obligation to maximize its positive impact and minimize its negative impact on society

Community Relations

Being a good community citizen means avoiding harmful actions that could damage the community

Codes of conduct (codes of ethics)

Formalized rules and standards that describe what the company expects of its employees

Marketing citizenship

The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders

Sustainability

The potential for the long-term well-being of the natural environment, including all biological entities, as well as the interaction among nature and individuals, organizations, and business strategies

Cause-related marketing

The practice of linking products to a particular social cause on an ongoing or short-term basis

Strategic philanthropy

The synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits

Honeybees are disappearing at an alarming rate and since they pollinate about a third of all foods we eat, it is an important concern. That's why Haagen-Dazs launched a microsite to increase the awareness of the issue. In addition, it launched a "Twitcause" campaign on Twitter, raising $7,000 in 2 days. This example illistrates the positive consequences of Select one: a. social responsibility. b. economic responsibility. c. ethical responsibility. d. corporate benevolence. e. green marketing.

a. social responsibility.

____ is most likely to improve ethical behavior in a marketing organization. Select one: a. Hiring goal-directed employees b. Eliminating unethical individuals and improving the organization's ethical standards c. Obeying the law and accepting all other behavior d. Allowing employees to follow their own ethical standards

b. Eliminating unethical individuals and improving the organization's ethical standards

At times, large retailers such as Walmart may be accused of coercion in dealing with intermediaries because of the amount of power and control these large companies have over many of their suppliers. This is most potentially a _____________ related ethical issue. Select one: a. pricing b. distribution c. promotion d. product e. culture

b. distribution

Companies that incorporate ethics and social responsibility into their strategic plans are likely to experience Select one: a. increased lawsuits. b. improved marketing performance. c. disappointed shareholders. d. reduced costs. e. negative publicity.

b. improved marketing performance.

StarKist Tuna has frequently extolled its dolphin-safe methods of catching tuna. This is an example of Select one: a. consumerism. b. sustainability marketing. c. community relations. d. cause-related marketing. e. strategic philanthropy.

b. sustainability marketing.

McDonald's supports and funds Ronald McDonald houses for the families of terminally-ill children to stay in to be near their loved ones. McDonald's action demonstrates the fulfillment of _______ responsibility. Select one: a. ethical b. legal c. philanthropic d. society e. economic

c. philanthropic

Socially responsible business practices have provided all of the following benefits except Select one: a. attracting employees. b. creating goodwill toward the organization. c. reducing marketing costs. d. positively impacting local communities. e. generating publicity for the firm.

c. reducing marketing costs.

A marketing ethics issue likely exists when Select one: a. a consumer is dissatisfied with a marketing decision. b. an activity results in increased prices for the consumer. c. an activity does not benefit the organization but benefits the environment. d. company members disagree about a marketing decision. e. an individual or organization must choose from among several actions that must be evaluated as right or wrong.

e. an individual or organization must choose from among several actions that must be evaluated as right or wrong.

Marketing ethics Select one: a. is most important for advertising agencies. b. refers to laws and regulations that govern marketing. c. maximizes an organization's positive impact and minimizes its negative impact on society. d. applies well-defined rules for appropriate marketing behavior. e. refers to principles and standards that define acceptable conduct in marketing.

e. refers to principles and standards that define acceptable conduct in marketing.

In response to organizational pressure to perform, Barry used a deceptive sales tactic to obtain a major sales contract. He was surprised that he wasn't punished for his behavior and even received a substantial bonus for securing the contract. Given the same opportunity in the future, Barry will most likely Select one: a. blow the whistle on his employer to a government agency. b. report his employer to the industry's trade association. c. express his discomfort with the situation to his supervisor. d. not use similar sales tactic again. e. use similar sales tactic again.

e. use similar sales tactic again.

Responsibility

to accept the consequences of our marketing decisions and strategies

Respect

to acknowledge the basic human dignity of all stakeholders.

Fairness

to balance justly the needs of the buyer with the interests of the seller.

Transparency

to create a spirit of openness in marketing operations.

Citizenship

to fulfill the economic, legal, philanthropic, and societal responsibilities that serve stakeholders