Chapter 16 Study Guide

According to the text, companies earn their rankings on the Civic 50 list, in part, because they lead the way in promoting corporate ________.

volunteerism

After a tornado devastated more than 1,000 homes in the area, the Target corporation delivered cases of drinking water and basic clothing supplies to the site. Target employees remained on the site to make sure the products were delivered to the families affected by the tornado. This demonstrates corporate ________.

volunteerism

________ refers to the moral standards expected by a society.

Ethics

True or false: Companies that rely on the environmental marketing strategy known as sustainable value innovation seek a price premium for environmentally-friendly products.

False Reason: The sustainable value innovation strategy focuses on re-shaping the industry and creating a new market space rather than trying to outperform the competition.

As the text notes, ________ was the first company to initiate a project focused on lifestyle and environmental improvements which included educating employees on the importance of embracing environmental sustainability.

Walmart

Studies show that 96% of European consumers say that protecting the environment is important to them while in the United States, approximately _______ of consumers claim to act on environmental concerns. Multiple choice question. a. 10% b. 80% c. 60% d. 30%

b. 80%

Which of the following are examples of environmental marketing activities? (Check all that apply.) Multiple select question. a. Strategic greening b. Consumer greening c. Tactical greening d. Sustainable greening e. Quasi-strategic greening

a. Strategic greening c. Tactical greening e. Quasi-strategic greening

Corporate volunteerism involves having _______ volunteer their time or talents for charitable, educational, or other worthwhile activities in the community. Multiple choice question. a. employees b. investors c. students d. customers

a. employees

Historically, customers bought products on which of the following factors? (Check all that apply.) Multiple select question. a. Packaging b. Convenience c. Price d. Manufacturing e. Disposal methods f. Performance

b. Convenience c. Price f. Performance

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? Multiple choice question. a. Social b. Economic c. Legal d. Philanthropic e. Ethical

b. Economic

Stakeholder responsibility is said to be the driving consideration across the four dimensions of corporate social responsibility. Which of the following are included in those four dimensions? (Check all that apply.) Multiple select question. a. Dynamic b. Economic c. Philanthropic d. Legal e. Social f. Ethical

b. Economic c. Philanthropic d. Legal f. Ethical

Return on investment (ROI) is an example of a(n) ________ measurement used in an audit. (Quantitative/Qualitative)

quantitative

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

Consumerism activities are typically initiated by _______. (Check all that apply.) Multiple select question. a. employees b. management c. government entities d. competitors e. citizens

c. government entities e. citizens

Which business tool should be used to determine the success of a corporate social responsibility program? Multiple choice question. a. A press conference b. A policy statement c. A situation analysis d. An audit e. The BCG Matrix

d. An audit

When trying to implement sustainability efforts on a global scale, which of the following is most likely to limit the availability of sustainable goods or increase their prices to consumers? Multiple choice question. a. Promotion mixes b. Language deficiencies c. Cultural trends d. Political barriers e. Consumer price index

d. Political barriers

Many organizations that engage in sustainable marketing focus a disproportionate amount of their efforts on ________ economies where they tend to find more supportive consumer and political environments.

emerging

Since green products sometimes cost more to produce than traditional products, it is logical for a company to employ the ________ ________ ________ marketing strategy in order to recoup these costs.

environmental cost leadership

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

legal

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

marketing

The ________ dimension of CSR is associated with a company donating to charitable causes.

philanthropic

The ________ element of the marketing mix plays a key role in overcoming the low availability barrier to encouraging sustainable consumer behavior.

place

________ responsibility is the obligation an organization has to those who can affect the achievement of its objectives.

Stakeholder

DuPont has made a commitment to "creating shareholder and societal value, while reducing our footprint throughout the value chain." This is an example of a corporate sustainability ________ statement.

vision

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

False Reason: HCSI is a nonprofit organization and like all nonprofit organizations, corporate social responsibility plays a role in everyday decisions. HCSI's corporate social responsibility focus is to support the local community and its citizens.

True or false: Baby boomers are not concerned with environmentally-friendly shopping.

False Reason: In reality, over half of all baby boomers consider themselves environmentally conscious shoppers. That's 40 million customers who choose to buy resource-conserving products.

________ ________ is the process of creating, communicating, and delivering value to customers in a way that recognizes the concept of sustainability.

Sustainable marketing

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

True or false: Jack's company has been in business for 20 years. Recently the company adopted an initiative to reduce landfill waste and as a result, 40% of the company's products are now made using less packaging. This demonstrates a benefit of a sustainability vision.

True Reason: As this example demonstrates, a sustainability vision can drive innovation within an organization. Even though Jack's company had always packaged products one way, when asked to reduce landfill waste, the packaging was redesigned.

Environmental regulations are a fairly recent addition to laws in the United States. For example, the Clean Water Act was not enacted until _______. Multiple choice question. a. 1972 b. 2005 c. 1989 d. 1955 e. 1997

a. 1972

The importance of the economic dimension of CSR is evidenced by the fact that approximately _______ of Americans invest in the stock market in the United States. Multiple choice question. a. 50% b. 20% c. 10% d. 80% e. 5%

a. 50%

Which of the following are the central tenets of social media as it relates to CSR initiatives? (Check all that apply.) Multiple select question. a. Community engagement b. Authenticity c. Immediacy d. Regionalism e. Transparency

a. Community engagement b. Authenticity e. Transparency

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.) Multiple select question. a. Corporate accountability b. Bottom-line terms c. Moral commitment d. Citizenship e. Economics

a. Corporate accountability c. Moral commitment d. Citizenship

The three levels of environmental marketing (tactical greening, quasi-strategic greening, and strategic greening) are governed by the overall environmental strategy a company chooses to implement. Which of the following are environmental marketing strategies? (Check all that apply.) Multiple select question. a. Eco-efficiency b. Beyond compliance leadership c. Quasi-strategic d. Eco-branding e. Sustainable value innovation f. Environmental cost leadership g. Green market

a. Eco-efficiency b. Beyond compliance leadership d. Eco-branding e. Sustainable value innovation f. Environmental cost leadership

In what ways does corporate social responsibility benefit a company? (Check all that apply.) Multiple select question. a. Enhances company's brand image b. Discounts competitor's stance c. Provides product longevity d. Improves employee retention

a. Enhances company's brand image d. Improves employee retention

Marketers find it beneficial to market to emerging economies because these economies are more supportive of sustainability efforts. If you were asked to select the emerging economy from the following list, which would you select? Multiple choice question. a. India b. Germany c. France d. United Kingdom e. China

a. India

Trina has been asked to develop an advertising campaign that educates consumers about the products her company produces and why these products produce less environmental waste than the competitor's products. Which barrier to encouraging sustainable consumer behavior will this advertising campaign help overcome? Multiple choice question. a. Lack of knowledge b. High prices c. Distrust d. Negative perceptions e. Low availability

a. Lack of knowledge

Which of the following is considered to be the biggest mistake marketers make when evaluating the success of a CSR program? Multiple choice question. a. Not including all significant stakeholder groups in the auditing process b. Describing the customer as a supplier of goods c. Ignoring the financial impact the CSR program brings to the firm d. Using both quantitative and qualitative measures e. Questioning the motivation for engaging in a CSR policy

a. Not including all significant stakeholder groups in the auditing process

When a citizens' group forms to advocate the preservation of a community park that is scheduled to be replaced by a shopping mall, it is an example of _______. Multiple choice question. a. environmentalism b. corporate social responsibility c. consumerism d. green marketing

a. environmentalism

Strategic greening is an environmental marketing activity that _______. Multiple choice question. a. integrates and coordinates all of a firm's activities on environmental issues across every functional area b. involves implementing limited change within a single area of an organization c. centralizes the activities of marketing and warehouse production sources d. involves substantive changes in marketing actions as well as broad-based coordination of non-marketing activities

a. integrates and coordinates all of a firm's activities on environmental issues across every functional area

Companies should rely on three key elements when creating a formal corporate social responsibility statement. Which of the following are included in these elements? (Check all that apply.) Multiple select question. a. Implementation of CSR into customer base b. Good corporate leadership c. Development of marketing mix d. Good stakeholder management e. Integration of CSR into corporate policy at all levels

b. Good corporate leadership d. Good stakeholder management e. Integration of CSR into corporate policy at all levels

Which of the following are barriers firms need to be aware of when trying to encourage sustainable consumer behavior? (Check all that apply.) Multiple select question. a. Poor promotion b. Low availability c. Negative perceptions d. Lack of awareness and knowledge e. High prices f. Distrust

b. Low availability c. Negative perceptions d. Lack of awareness and knowledge e. High prices f. Distrust

Which of the following would a customer consider when purchasing a product today that he or she would most likely not have thought about when purchasing a product sixty years ago? (Check all that apply.) Multiple select question. a. Performance b. Packaging c. Convenience d. Price e. Product origins f. Manufacturing

b. Packaging e. Product origins f. Manufacturing

Which of the following definitions can be used to describe corporate philanthropy? Multiple choice question. a. The responsibility of a company to earn a profit which in turn benefits stakeholders b. The act of an organization voluntarily donating some of its profits or resources to charitable causes c. The relationship between an organization and its employees d. The moral standards expected by a society e. The process of an organization following the rules and regulations established by law

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

The Global Sustainable Tourism Council was formed by the _______ in an effort to promote best practices in sustainable tourism around the world. Multiple choice question. a. European Union b. United Nations c. Food and Drug Administration d. British Parliament e. U.S. Congress

b. United Nations

As the text notes, _______ is a critical component to overcoming all of the barriers companies face when encouraging sustainable consumer behavior. Multiple choice question. a. delivery b. communication c. promotion d. price e. context

b. communication

The concept of _______ stems from the idea that it is no longer acceptable for a business to experience economic prosperity in isolation from those stakeholders who are impacted by a company's decisions. Multiple choice question. a. beyond compliance leadership b. corporate social responsibility c. nonprofit status d. sustainable value innovation e. B2B marketing

b. corporate social responsibility

The local bank recently redesigned its logo to reflect the environmentally-friendly initiatives the bank has implemented. Each department within the bank will need to incorporate the logo into the materials it uses and the marketing department is responsible for placing the logo in all advertising and promotional materials. This is an example of _______ greening. Multiple choice question. a. tactical b. quasi-strategic c. sustainable d. consumer e. strategic

b. quasi-strategic

Which of the following companies involved in the denim fashion industry was the first to teach farmers how to grow cotton using less water; thereby, making a concerted effort to reduce water usage? Multiple choice question. a. Calvin Klein b. Lee c. Levi-Strauss d. Wrangler e. Tommy Hilfiger

c. Levi-Strauss

Which type of marketing involves the processes of creating, communicating, and delivering value to customers in a way that recognizes and incorporates current needs without compromising the ability of future generations to meet their own needs? Multiple choice question. a. Relationship b. Environmental c. Sustainable d. Civic e. B2B

c. Sustainable

Which of the following statements is true for companies that make a commitment to environmental concerns? Multiple choice question. a. The company automatically loses money in the first few years as it establishes "green" products. b. The company is viewed by competitors as a "nonthreat." c. The company often earns favorable public opinion and loyal customers. d. The company is controlled by the government in order to enforce the regulations. e. The company saves in shipping and production costs.

c. The company often earns favorable public opinion and loyal customers.

Which of the following are examples of corporate volunteerism? (Check all that apply.) Multiple select question. a. A corporation donates to a school fundraiser. b. A company decides to bring all of its manufacturing efforts back to the United States from Asia. c. The employees of a major hardware firm help to repair houses for those in need in the local community. d. A firm's employees step in to help clean up when a local daycare facility is destroyed by a flood.

c. The employees of a major hardware firm help to repair houses for those in need in the local community. d. A firm's employees step in to help clean up when a local daycare facility is destroyed by a flood.

A U.S.-based company would be more likely to point to how sustainability efforts affect the company's _______ when rationalizing these efforts. Multiple choice question. a. worldview b. corporate accountability c. bottom line d. social media e. moral commitment

c. bottom line

Ethics can best be described as _______. Multiple choice question. a. rules and regulations b. cultural beliefs c. moral standards d. personal rules e. religious philosophies

c. moral standards

One barrier companies must overcome when encouraging sustainable consumer behavior is the consumer's negative perceptions of a product. According to the text, these negative perceptions tend to revolve around the product's _______. Multiple choice question. a. tax b. distribution c. quality d. price e. advertising

c. quality

Publicly-traded firms have a unique responsibility involving the economic dimension of corporate social responsibility because _______. Multiple choice question. a. it is required of them to give back to the community b. they must follow local, state, and federal laws c. they must respond to shareholders that have invested in the firm hoping to make a profit d. they are in the public spotlight and as such generate more publicity for the firm

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

Which of the following accurately describes the green market? Multiple choice question. a. A company's focus to design sustainable products of the highest quality b. Consumers who lack knowledge regarding the availability of sustainable goods c. An aspect of the marketing mix which focuses on promotion and price d. A group of sustainability-oriented customers and the businesses that serve them e. The lack of available goods dedicated to sustainability

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

If the Kleenex corporation decided to start an advertising campaign that focused on showing consumers how Kleenex is incorporating environmentally-friendly practices into its manufacturing and distribution processes while implying that its competitors don't use these practices, then Kleenex would be using which environmental marketing strategy? Multiple choice question. a. Eco-efficiency b. Environmental cost leadership c. Eco-branding d. Beyond compliance leadership e. Sustainable value innovation

d. Beyond compliance leadership

Prior to building the new manufacturing facility, the company held town meetings to understand concerns the community might have about water run-off and refuse removal once the new building was in place. What key element of developing a successful corporate social responsibility program did the company exhibit? Multiple choice question. a. Good corporate leadership b. Sustainable marketing practices c. Integration of CSR into all divisions of the firm d. Good stakeholder management e. Integration of CSR into corporate policy at all levels

d. Good stakeholder management

Which of the following efforts demonstrates environmentalism? Multiple choice question. a. Holly shops at the grocery store having the best sale and doesn't mind traveling a little further to get a good deal. b. Thomas is known for comparing the ingredients in store brands with those in the manufacturer's brand. c. The company decided to eliminate all sales overseas and focus on local sales. d. In order to minimize the chance of an oil spill, the corporation installed rubber liners in each of its oil tanks.

d. In order to minimize the chance of an oil spill, the corporation installed rubber liners in each of its oil tanks.

Which of the following scenarios demonstrates corporate volunteerism? Multiple choice question. a. After the long winter, Sara's Travel Corp. released a statement that entitled customers to 25% off their next purchase to a warmer location. b. Jeremy refuses to purchase lower-quality metal from distributors because he knows his customers expect high-end products. c. Meredith told her manager that she would be willing to attend the conference in San Antonio since no one else wanted to go. d. 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.

d. 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 of the following words best describes the effect of social media on a company's CSR activities? Multiple choice question. a. Reactive b. Immune c. Complacent d. Hesitant e. Proactive

e. Proactive

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 _______. Multiple choice question. a. philanthropy b. sustainability c. humanitarianism d. volunteerism e. consumerism

e. consumerism

If a company wants to reduce costs and the environmental impact of its activities, the marketing department should suggest the environmental marketing strategy known as _______. Multiple choice question. a. eco-efficiency b. eco-branding c. beyond compliance leadership d .sustainable value innovation e. environmental cost leadership

e. environmental cost leadership

At the pediatrician's office, the plastic from used medication bottles is returned to the manufacturer for recycling. The doctor's office is an example of how the green market affects _______. Multiple choice question. a. placement b. B2C c. cost d. context e. services

e. services

Sherees purchased a Chevy Volt because it was advertised as the car to buy to improve gas mileage and lower gas costs. Chevy used the ________ - ________ environmental marketing strategy to promote this car.

eco-branding

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

environmental regulations

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

green market

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

The Nestle company has not only reformulated certain products to decrease its environmental impact, but it has also taken steps to train farmers on good environmental stewardship and funded scientific research into producing sustainable cocoa. This is an example of ________ greening.

strategic

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

sustainability

In order to reduce energy costs, Rene's company has installed solar panels. In comparison to last year, the company has already reduced energy costs by 27%. The company started a public relations campaign to share this information with customers. Rene's company is engaged in ________ marketing.

sustainable