Principles of Marketing Chapter 4
The legal concept of caveat emptor closely translates to
"let the buyer beware"
The moral values that govern the actions and decisions of an individual or group and serve as guidelines on how to act rightly and justly when faced with a moral dilemma are referred to as
ethics
While ______ deal with personal moral principles and values,______ are society's values and standards that are enforceable in the courts.
ethics; laws
Because culture is a socializing force that dictates what is morally right, moral standards are
relative to particular societies
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
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
Stakeholder responsibility focuses on the obligation an organization has to _____
those who can affect achievement of its objectives
True or false: When it comes to ethics and legality, businesspeople should understand that if they make a decision that is unethical, that decision will always be illegal as well.
Reason: This is false. The distinction between the legality and ethicality of business decisions is not always clear, and while some decisions may be unethical, they are not necessarily illegal.
_______ responsibility holds that companies have a simple duty: to maximize profits for their owners or stockholders.
Profit
A social audit is used by organizations to
develop, implement, and evaluate social responsibility efforts
Sustainable development involves conducting business in a way that Blank
protects the natural environment while making economic progress
development involves conducting business in a way that protects the natural environment while making economic progress.
Sustainable
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
Societal responsibility extends the concept of social responsibility to which of the following? (Select all that apply)
The general public Preservation of the ecological environment
5 Steps of a Social Audit
1. Recognize a firm's social expectations and why it should engage in social responsibility 2. Identify social responsibility causes consistent with the firm's mission 3. Determine the organizational objectives and priorities for activities the firm will undertake. 4. Specify the type and amount of resources necessary to achieve social responsibility objectives. 5. Evaluate the social responsibility programs and activities taken by the firm.
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.
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 two benefits are associated with companies' effort to increase social responsibility?
Favorable word of mouth Better financial performance than less responsible companies
Which of the following are examples of societal responsibility?
Green marketing Cause marketing Use of the triple-bottom line
A systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility is known as
a social audit
Green marketing is
any effort to produce, promote, or reclaim environmentally sensitive products
Public opinion surveys indicate that most people feel the ethical standards of business executives
are not "very high"
The fact that consumers should have access to public-policy makers regarding complaints about products and services relates to consumers' right to
be heard
In an ethical exchange, both buyer and seller should be Blank______ afterward.
better off
A company representative who gives a gift to the government official considering a contract for the representative's firm may be accused of
bribery
Even when society has strong ethical standards, a questionable Blank______ can lead to harmful practices like insider trading, deceptive sales practices, and bribery.
business culture
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
Select three elements that reflect a company's commitment to sustainable marketing.
cause marketing green marketing social audits
The concept "let the buyer beware" that was prevalent in the United States before the 1960s is known by what legal term?
caveat emptor
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
Which two of the following are the most common motivations for unethical consumer behavior?
consumer's rationalization that the act is justified consumer believes he or she can get away with it
Which two are the most common unethical behaviors when it comes to competition in business?
corruption economic espionage
Select the three items that are economic espionage activities.
electronic hacking illegal trespassing fraud
In order to be Blank______, an exchange should result in both parties being better off after a transaction.
ethical
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 Blank
green marketing
When a company like 3M has a formal program to reduce pollution and recycle material, it is pursuing
green marketing
The practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice is termed
greenwashing
Business culture affects ethical conduct in what two ways?
in the competitive behavior among sellers in the exchange relationship between sellers and buyers
Which personal moral philosophy considers certain individual rights or duties as universal, regardless of the outcome?
moral idealism
Two personal moral philosophies are Blank______, which considers certain rights and duties as universal, and Blank______, which focuses on the greatest good for the greatest number.
moral idealism; utilitarianism
Moral idealism and utilitarianism are two prominent personal Blank______ 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
Social responsibility includes the concepts of ______ responsibility, stakeholder responsibility, and societal responsibility.
profit
The first and most central concept of social responsibility is Blank______ responsibility.
profit
Organizations that place an emphasis on the triple-bottom line recognize the need to improve the state of what three items?
profit people the planet
Select the three concepts of social responsibility.
profit responsibility societal responsibility stakeholder responsibility
A whistle-blower is an employee who
reports unethical or illegal actions of his or her employer
The fact that organizations are part of a larger society and are accountable to that society for their actions is the essence of Blank
social responsibility
The broadest concept of social responsibility is Blank
societal responsibility
When an organization focuses on the obligations it has to consumers, employees, suppliers, and distributors it is accepting its Blank______ responsibility.
stakeholder
Companies that engage in Blank______ marketing typically benefit from favorable word of mouth, and outperform other companies financially.
sustainable
Marketers have embraced societal responsibility through Blank______, which seeks to meet today's economic, environmental, and social needs without compromising the opportunity for future generations to meet theirs.
sustainable marketing
The effort to meet today's (global) economic, environmental, and social needs without compromising the opportunity for future generations to meet theirs is called
sustainable marketing
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
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
bribery
when someone voluntarily offers payment to get an illegal advantage
Employees who report unethical or illegal actions of their employers are engaged in
whistle-blowing