Chapter 4

If Hefty Bags expresses concern that its products are having too great an impact on the pollution of ground water under landfills, this concern is directly related to the firm's a) social responsibility. b) marketing concept. c) profitability. d) ethics. e) distribution system.

a

Sometimes business must find a balance between society's demand for social responsibility and investors' desires for profits. This is an example of a(n) ___________ responsibility. a) Economic b) Ethical c) Legal d) Cost e) Philanthropic

a

The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders is called a) marketing citizenship. b) social responsibility. c) stakeholders. d) cause-related marketing. e) strategic philanthropy.

a

Any constituent who has a claim in some aspect of a company's products, operations, markets, industry, or outcomes is known as a(n) a) shareholder. b) customer. c) employee. d) manager. e) stakeholder.

e

At the top of the pyramid of social responsibility for business are ___________ responsibilities. a) Economic b) Ethical c) Legal d) Cost e) Philanthropic

e

Consumerism is a) the efforts of independent individuals, groups, and organizations to protect the rights of consumers. b) President John F. Kennedy's consumer bill of rights. c) marketers' efforts to contribute to the satisfaction and growth of the communities in which they operate. d) the right to be informed. e) the specific development, pricing, promotion, and distribution of products that do not harm the environment.

A

An ethical issue is a) likely to arise when an employee's moral philosophy is consistent with the organization's expectations of the employee's behavior. b) an identifiable problem, situation, or opportunity requiring an individual to choose from among several actions that must be evaluated as right or wrong. c) most often found in personal selling situations. d) easily resolved by consulting written laws and regulations. e) characterized by a blatant disregard for human rights and equality.

B

Which of the following is not one of the four objectives that environmentalists believe companies should implement in order to sustain the natural environment? a) Eliminate the concept of waste. b) Reinvent the concept of a product. c) Educate consumers on ways to recycle products. d) Make prices reflect the true cost of a product. e) Make environmentalism profitable.

C

Which of the following is a primary difference between cause-related marketing and strategic philanthropy? a) Cause-related marketing is short term only while strategic philanthropy is an ongoing approach that lasts for years or even decades. b) Strategic philanthropy fulfills a firm's primary social responsibilities while cause- related marketing does not. c) Cause-related marketing is unlikely to have a positive effect on society while strategic philanthropy always benefits society. d) Strategic philanthropy can take on both a financial and nonfinancial format while cause-related marketing only involves financial contributions. e) Customers are likely to feel good about themselves when supporting a cause- related marketing campaign but are unlikely to notice strategic philanthropy.

D

Which of the following refers to a firm's specific development, pricing, promotion, and distribution of products that do not harm the environment? a) Marketing ethics b) Social responsibility c) Environmental marketing d) Green marketing e) Conservation marketing

D

Avon's Breast Cancer Awareness Crusade, which has raised nearly $400 million for community-based breast cancer education and early detection services, illustrates the positive consequences of a) social responsibility. b) corporate benevolence. c) green marketing. d) legal responsibility. e) economic responsibility.

a

Various stakeholders and _______ determine the acceptable standards of conduct involving ethics. a) the organizations' ethical climate b) the federal government c) various self-regulating bodies d) governmental agencies e) the industry leaders' ethics

a

When a purchasing agent for Intel is offered a bribe by a silicon manufacturer salesperson, a) a promotion-related ethical issue has been created. b) the purchasing agent is free to accept the bribe without consequences. c) an ethical issue primarily related to the pricing of products exists. d) there is an ethical dilemma for the purchasing agent that is product related. e) no ethical issue exists under these circumstances.

a

After a hurricane strikes the U.S. Gulf Coast, a tremendous demand for gas-powered generators occurs. Ace's Hardware, which stocks a large inventory of these items, faces major ethical decisions with regard to the ___________ issue. a) advertising. b) pricing. c) publicity. d) product. e) personal selling.

b

Distribution-related ethical issues arise when marketers a) do not provide intermediaries with enough information about how a product is priced. b) force channel intermediaries to behave in a specific manner. c) bribe salespeople to push one product over another. d) fail to disclose information to consumers about the risks associated with using a product. e) distribute a product that is very similar to a competing product.

b

Employees, customers, communities, and investors are all considered ______ in relation to marketing. a) responsibilities b) stakeholders c) shareholders d) constituents d) owners

b

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

b

Pharmaceutical companies have at times been accused of acting unethically by taking advantage of customers in the area of a) promotion. b) pricing. c) distribution. d) product. e) manufacturing.

b

A synergistic use of businesses' core competencies to address stakeholders' interests and achieve both organizational and social benefits is known as a) cause-related marketing. b) marketing ethics. c) economic responsibility. d) strategic philanthropy. e) financial assistance.

d

According to the text, marketing ethics refers to principles and standards that define a) improper behavior in marketing. b) acceptable conduct in society. c) improper behavior in business. d) acceptable conduct in marketing. e) acceptable conduct in general.

d

If Ben and Jerry's were to donate 5 percent of every ice cream purchase to shelters for victims of domestic abuse for one month, this would be an example of a) economic responsibility. b) social responsibility. c) ethical marketing. d) cause-related marketing. e) corporate benevolence.

d

The most basic principles of marketing ethics are a) philanthropic responsibilities. b) economic responsibilities. c) universally accepted behaviors. d) written as laws and regulations. e) included in the marketing code of ethics.

d

The practice of linking a firm's product marketing to a particular social cause on an ongoing or short-term basis is known as a) economic responsibility. b) social responsibility. c) ethical marketing. d) cause-related marketing. e) corporate benevolence.

d

What are some of the common price-related ethical issues? a) Misleading advertising and predatory pricing b) Additional discounts and price fixing c) Not disclosing the full price and value-pricing d) Predatory pricing and price fixing e) Loss leaders and deceptive pricing

d

Which of the following is not a dimension of social responsibility and marketing citizenship? a) Economic b) Ethical c) Legal d) Environmental e) Philanthropic

d

Which of the following is not one of the four dimensions of social responsibility presented in your text? a) Economic b) Ethical c) Legal d) Consumerism e) Philanthropic

d

_____ ethical issues generally surface when companies fail to disclose risks associated with a product or information regarding its function, value, or use. a) Promotion-related B) Distribution c) Corporate d) Product-related e)Safety

d

A business that contributes resources to the community to improve the quality of life is taking on a(n) ___________ responsibility. a) Economic b) Ethical c) Legal d) Cost e) Philanthropic

e

All of the following are factors that influence the ethical decision-making process except a) opportunity. b) individual factors. c) organizational culture. d) organizational pressure. e) salary or wages.

e

Angela organized a boycott of a local restaurant because of the owner's obvious prejudicial treatment of Hispanics. Angela's action would most likely be called a) lobbying. b) a public service announcement. c) the right to be informed. d) a social demonstration. e) consumerism.

e

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. a) Economic b) Ethical c) Legal d) Society e) Philanthropic

e

What is the major difference between social responsibility and marketing ethics? a) Marketing ethics varies by industry whereas social responsibility involves universal rules of conduct. b) There is legislation that deals with marketing ethics, but none for socially responsible practices. c) Marketing ethics is concerned with organizational practices, and social responsibility is concerned with individual behavior. d) There is no difference; they are synonymous terms. e) Social responsibility deals with the total effect of marketing decisions on society, whereas marketing ethics relates to individual and group evaluations in marketing situations.

e

When is the best time to deal with marketing exchange problems concerning ethics? a) Right before the problem is made public b) After the problem has received extensive media attention c) Immediately after the problem is discovered d) When lawsuits are brought against the company e) During the strategic planning process

e

Which of the following statements about social responsibility is not correct a) Social responsibility dimensions include economic, legal, ethical, and philanthropic concerns. b) Social responsibility deals with the total effect of all marketing decisions on society. c) Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society. d) Social responsibility is a vital factor in major marketing strategy decisions. e) Social responsibility refers to principles and standards that define acceptable conduct in marketing as determined by various stakeholders.

e

Instead of addressing the question_______, many environmentalists and marketers believe the question should be ______. a) "How can we reduce costs?"; "How can we keep prices low?" b) "Where should we dispose of waste?"; "How can we protect society?" c) "How can we make products better?"; "How can we reduce waste?" d) "How can environmentalism be profitable?"; "Where is the benefit of environmental efforts?" e) "What should we do with our waste?"; "How can we produce products without waste?"

E

The effect that coworkers have on the ethical decision-making process depends on a person's exposure to ethical and unethical behavior. Which of the following statements about ethical decision making is true? a)The more a person is exposed to ethical activity in the organization, the more likely he or she will behave unethically. b) The more a person is exposed to unethical activity in the organization, the more likely he or she will behave unethically. c) The more a person is exposed to unethical activity in the organization, the less likely he or she will pay attention to that activity. d) The more a person is exposed to ethical activity in the organization, the less likely he or she will pay attention to that activity. e) Exposure to ethical and unethical activity has no effect on a person's decision-making process.

b

What is the base level on which social responsibility is built? a) Customers b) Being profitable c) Obeying the law d) Being ethical e) Paying employees

b

Who are the primary recipients of the benefits of strategic philanthropy? a) Employees and investors b) Companies and society c) Primary stakeholders d) Managers and companies e) Society and communities

b

Cameron Inc. is a very profitable automobile repair shop. The company is well known for its great service and involvement in the community, but it fails to properly dispose of its used oil as outlined in environmental regulations. Cameron is failing in its ______ responsibilities. a) Economic b) Ethical c) Legal d) Strategic e) Philanthropic

c

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

c

three factors that influence the ethical decision-making process in marketing include a) individual factors, organizational culture, and peer influence. b) opportunity, personal moral philosophies, and situational variables. c) individual factors, organizational factors, and opportunity. d) social forces, laws, and organizational factors.

c