MGMT 3133- SmartBook ch 9

Humans came to appreciate the self-interested reasons for protecting the natural environment by the late 19th century. The _____, the first phase of modern environmentalism, advocated a more restrained and judicious approach to the natural world.

conservation movement

Introduced at the Rio Earth Summit in 1992, the concept of _____ is a way business can contribute to sustainability by reducing resource usage in its production cycle.

eco-efficiency

The ultimate goal of biomimicry is to _____.

eliminate waste altogether

Defenders of the market-based approach to resolving environmental challenges contend that _____.

environmental issues are economic issues that deserve economic solutions

Cradle-to-cradle responsibility would create incentives for businesses to _____.

redesign products so that they could be recycled efficiently and easily

True or false: An aspect of contemporary environmental realities that emphasizes the importance of humans' self-interested reasoning for protecting the natural environment is that life-supporting systems require a delicate environmental balance for their maintenance.

true

True or false: Sustainable marketing can play a role in creating the social meanings and consumer expectations that support sustainable goals.

true

_____, or "closed-loop" production, seeks to integrate what is presently waste back into production in much the way that biological processes turn waste into food.

Biomimicry

Business Households

Business: Goods and services, wages, salaries, rents, profits, and interests Households: Resources and payments

Which of the following is an aspect of contemporary environmental realities that emphasizes the importance of humans' self-interested reasoning for protecting the natural environment?

Contemporary environmental issues can potentially harm the entire globe and change human life forever.

Efficient markets Government regulation

EM: In this case, responsible business managers should simply seek profits and allow the market to allocate resources efficiently. GR: In this case, business should develop a compliance structure to ensure that it conforms to requirements.

True or false: According to the sustainable model of the economy, the biosphere can produce resources and absorb wastes indefinitely regardless of the rate and type of economic activity.

False

"_____" is the practice of promoting a product by misleading consumers about the environmentally beneficial aspects of the product.

Greenwashing

_____ _____ _____ _____ (CAFE) is the sales-weighted average fuel economy, expressed in miles per gallon (mpg), of a manufacturer's fleet of passenger cars or light trucks.

1. corporate 2. average 3. fuel 4. economy

_____-_____-____ responsibility holds that a business should be responsible for incorporating the end results of its products back into the productive cycle.

1. cradle 2. to 3. cradle

The principle of "doing more with less" is sometimes called _____-_____.

1. eco 2. efficiency

According to the suggestions of professor Patrick Murphy for marketing to develop sustainable distribution channels for products, _____ _____ refers to the growing marketing practice of taking back one's products after their useful life.

1. reverse 2. channels

A(n) _____-_____ _____ interprets consumer demand as a demand for services.

1. service 2. based 3. economy

According to the Brundtland Commission, _____ _____ is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

1. sustainable 2. development

In the context of the three pillars of sustainability, identify a true statement about sustainable development.

It should be environmentally, ethically, and economically satisfactory.

The regulatory and compliance model The sustainability mode

RCM: It tends to view environmental responsibilities as constraints upon business. SM: It is more forward looking and may present greater opportunities than burdens to business.

Identify an aspect of pricing that seems to be a perfect fit for sustainable marketing goals.

Short-term losses are often justified in setting prices by appeal to long-term benefits.

In the context of the market-based approach to resolving environmental challenges, identify the market failures that can lead to serious environmental harm. (Check all that apply.)

The difference between individual decisions and group consequences

In the context of the market-based approach to resolving environmental challenges, which of the following is a market failure that can lead to serious environmental harm?

The difference between individual decisions and group consequences

According to the suggestions of professor Patrick Murphy, which of the following will be emphasized by new sustainability options in marketing distribution channels that involve transportation, distribution, and inventory? (Check all that apply.)

- Alternative fuel technologies and fuel efficiency - More efficient and localized distribution channels - Increased reliance on electronic rather than physical distribution

Identify the possible and appropriate means for meeting business's environmental responsibilities. (Check all that apply.)

- Efficient markets - Government regulation

Identify the general principles that will guide firms in their move toward sustainability. (Check all that apply.)

- Firms and industries must use natural resources more efficiently. - Firms and industries should model their whole production process on biological processes.

In the context of the animal rights movement, identify the true statements about the view that animals and all other living things deserve to be respected and treated with dignity. (Check all that apply.)

- It considers inflicting unnecessary pain as an ethical wrong. - It is reminiscent of the utilitarian tradition and asserts an ethical responsibility to minimize pain.

In the context of the animal rights movement, which of the following statements are true of the view that animals and all other living things deserve to be respected and treated with dignity? (Check all that apply.)

- It creates a large variety of distinctive ethical responsibilities regarding how animals should be treated. - It is defended by the argument that many animals have the capacity to feel pain.

Identify the true statements about the circular flow model. (Check all that apply.)

- It does not differentiate between natural resources and other factors of production. - It treats economic growth as the solution to all social ills.

In the context of the self-interested reasons humans have for protecting the natural environment, identify the true statements about the conservation movement. (Check all that apply.)

- It holds that the natural world is still appreciated as a resource, providing humans with direct and indirect benefits. - It argues that natural resources should not be used as if they could provide an inexhaustible supply of material.

Identify the features of the sustainable model of the economy. (Check all that apply.)

- It recognizes that each stage of economic activity produces wastes that are dumped back into the biosphere. - It understands that the economy exists within a finite biosphere that encompasses a band around the earth that is just over a few miles wide.

In the context of developing sustainable products, identify the aspects of marketing that come together within the context of extended producer responsibility toward sustainability and take-back legislation. (Check all that apply.)

- Marketing departments should help businesses develop long-term relationships with consumers that will ensure financial and ecological sustainability. - Marketing departments should be involved in finding ways to build sustainability into the very design of each product - Marketing professionals should influence the packaging of products by encouraging the use of biodegradable and recyclable packing materials.

Identify the true statements about businesses moving in the direction of sustainability through pricing. (Check all that apply.)

- Marketing professionals should be involved in setting prices that reflect a product's true ecological cost. - A useful strategy for sustainable marketing involves pricing more sustainable products competitively with other products.

Identify the four Ps of marketing that are a useful way to structure an understanding of sustainable marketing. (Check all that apply.)

- Price - Placement - Product - Promotion

Identify the guidelines that firms should follow if they are to evolve toward a sustainable business model. (Check all that apply.)

- Resources should not move into the economic cycle from the biosphere at rates greater than they are replenished. - Waste should be eliminated or, at least, not produced at a rate greater than the biosphere can absorb it. - The energy used to power the economic system should be renewable.

Identify the environmental laws enacted in the United States during the 1970s. (Check all that apply.)

- The Endangered Species Act - The Federal Water Pollution Act - The Clean Air Act

Identify the problems that suggest that the regulatory approach to environmental policies will prove to be inadequate over the long term. (Check all that apply.)

- The approach underestimates the influence that business can exert on establishing the law. - The approach underestimates business's ability to influence consumer choice.

What are the arguments that support businesses moving toward a sustainable future? (Check all that apply.)

- The huge unmet market potential among the world's developing economies can only be met using sustainable methods. - Sustainability is a judicious long-term strategy and also a good risk management strategy. - Competitive advantages are available for sustainable businesses.

In the context of the market-based approach to resolving environmental challenges, identify the market failures that can lead to serious environmental harm. (Check all that apply.)

- The lack of markets for creating a price for important social goods - The presence of externalities

In the context of the market-based approach to resolving environmental challenges, identify the market failures that can lead to serious environmental harm. (Check all that apply.)

- The presence of externalities - The lack of markets for creating a price for important social goods

Identify the shortcomings associated with the regulatory approach to environmental policies. (Check all that apply.)

- The regulatory approach assumes that economic growth is ethically and environmentally benign. - Relying on the law to protect the environment means that environmental protection will extend only as far as the law extends.

Which of the following are true of the environmental laws enacted in the United States during the 1970s? (Check all that apply.)

- They established standards that shifted the burden from those threatened with harm to those who would cause the harm. - They established regulatory standards to try to prevent the occurrence of species extinction or pollution.

Identify the true statements about the corporate average fuel economy (CAFE) standards. (Check all that apply.)

- They were established by the Energy Policy Conservation Act of 1975. - They were established as a means of increasing fuel efficiency of automobiles.

Which of the following are examples of consumer demands in a service-based economy? (Check all that apply.)

- demand for plumbing - demand for laundry

The marketing of products on the basis of their environmentally friendly nature is known as _____ _____.

1. sustainable/green 2. marketing

Sustainable business and sustainable economic development try to create new ways of doing business in which business success is measured in terms of economic, ethical, and environmental sustainability. This is often called the _____ _____ _____ approach.

1. triple 2. bottom 3. line

In his popular book People or Penguins: The Case for Optimal Pollution, William Baxter put forth the argument that there is an optimal level of pollution that would best serve society's interests and that this optimal level is best attained by leaving it to _____.

a competitive market

The given image represents the Natural Step's funnel that depicts the relationship between business and sustainability. While A represents the resources necessary to sustain life, B represents _____.

aggregate worldwide demand

The Natural Step challenges businesses to imagine what a sustainable future must hold. From that vision, creative businesses then look backward to the present and determine what must be done to arrive at that future. This is known as _____.

backcasting

A second phase of the evolution of business strategy toward biomimicry envisions _____.

business being accountable for its products from "cradle to grave"

In the context of sustainability, an important future aspect of product promotion will be "_____."

green labeling

The first phase of the evolution of business strategy toward biomimicry has been described as "_____."

take-make-waste

In the context of sustainable marketing, the most important advancement toward sustainability will depend on _____.

the sustainability of products

True or false: Throughout the history of industrial economies, business has most often considered environmental concerns to be unwanted burdens and barriers to economic growth.

true