Chapter 4: Concept Quiz, Practice, Video Quiz: New Belgium Brewing

Every year Walgreens sells red noses and other merchandise for Red Nose Day, which is a national fundraising campaign run by Comic Relief USA, a non-profit devoted to raising money and awareness to end child poverty. This event that Walgreens hosts each year is most likely which of the following? a. Cause-related marketing b. Stakeholder orientation c. Marketing ethics d. Sustainability e. Strategic philanthropy

a. Cause-related marketing

Which of the following is one of the three factors that influence the ethical decision-making process? a. Organizational culture b. Ethical issue intensity c. Philanthropy d. Social responsibility e. Codes of ethics

a. Organizational culture

Scenario 4.2 Shirley is a salesperson at a pharmaceutical firm. She has been tasked with selling a new drug. One doctor looks like a great prospect. He is highly interested in trying out the drug and has requested some samples. However, he has asked Shirley to list any side effects of the product. Shirley knows that there is a very small chance that it could cause extreme muscle spasms in certain individuals. The chance for this is low, and even those that suffer from side effects will most likely not experience such severe reactions. Yet Shirley knows from her past experience with this doctor that he is incredibly picky and is not likely to agree to try out the medicine if he knows about this extreme side effect—no matter how unlikely it is to occur. Shirley therefore decides not to tell him. She describes other potential side effects, but she leaves this out. Refer to Scenario 4.2. This is an example of what type of ethical issue? a. Promotion b. Product c. Price d. Distribution e. Consumer

a. Promotion

Which of the following promises consumers fair treatment when they complain to marketers about products? a. The right to be heard b. The right to safety c. The right to be informed d. The right to choose e. The right to lower prices

a. The right to be heard

Which of the following is true about codes of ethics? a. They should be updated periodically. b. They should take into account every ethical situation. c. They should always be written by the CEO. d. They should be generic enough to apply to different industries. e. They are not as important as codes of conduct

a. They should be updated periodically.

A rule of thumb for resolving ethical and social responsibility issues is that if an issue can withstand open discussion that results in agreement or limited debate, an acceptable solution may exist. a. True b. False

a. True

Scenario 4.2 Shirley is a salesperson at a pharmaceutical firm. She has been tasked with selling a new drug. One doctor looks like a great prospect. He is highly interested in trying out the drug and has requested some samples. However, he has asked Shirley to list any side effects of the product. Shirley knows that there is a very small chance that it could cause extreme muscle spasms in certain individuals. The chance for this is low, and even those that suffer from side effects will most likely not experience such severe reactions. Yet Shirley knows from her past experience with this doctor that he is incredibly picky and is not likely to agree to try out the medicine if he knows about this extreme side effect—no matter how unlikely it is to occur. Shirley therefore decides not to tell him. She describes other potential side effects, but she leaves this out. Refer to Scenario 4.2. Assume that the Food and Drug Administration just discovered that this new drug is a lot riskier than first thought. Anyone who takes over a certain amount can suffer from potential heart problems. This has become a product issue. a. True b. False

a. True

If other organizational members approve of the activity and it is legal and customary within the industry, chances are that the activity is _______ from both an ethical and a social responsibility perspective. a. acceptable b. moral c. improper d. unacceptable e. inappropriate

a. acceptable

Ethical choices in marketing are most often made _______. a. jointly b. in a vacuum c. at home d. at church e. individually

a. jointly

ACME Corp. is adopting a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities that its stakeholders expect of it. This best describes _______. a. marketing citizenship b. cause-related marketing c. social responsibility d. ethics e. stakeholder orientation

a. marketing citizenship

Principles and standards that define acceptable conduct in marketing as determined by various stakeholders are known as _______. a. marketing ethics b. strategic philanthropy c. marketing citizenship d. cause-related marketing e. social responsibility

a. marketing ethics

Individual values are more likely to influence organizational ethical decision making than organizational culture. a. True b. False

b. False

Evaluate the truthfulness of this statement: Strong ethical standards are necessary to completely eliminate misconduct from the organization. a. True b. False

b. False Some people always do things in their own self-interest, regardless of organizational goals or accepted moral standards.

Which of the following is the potential for the long-term well-being of the natural environment, including all biological, as well as the interaction among nature and individuals, organizations, and business strategies? a. Consumerism b. Sustainability c. Cause-related marketing d. Marketing citizenship e. Ethics

b. Sustainability

Which of the following do codes of ethics NOT do? a. They let employees know both what is expected of them and what kind of punishment they face if they violate the rules. b. They take every situation into account. c. They promote ethical behavior by reducing opportunities for unethical behavior. d. They specify formalized rules and standards that describe what the company expects of its employees. e. They help marketers deal with ethical issues or dilemmas that develop in daily operations by prescribing or limiting specific activities.

b. They take every situation into account.

According to your text, a well-implemented _______ and a strong _______ result in the greatest decrease in ethical risks for an organization. a. regulatory system; corporate culture b. ethics program; corporate culture c. ethics program; regulatory system d. ethics program; opportunity e. corporate culture; opportunity

b. ethics program; corporate culture

ACME Corp. is striving to foster a set of ethical values, beliefs, goals, norms, and rituals that members of an organization share. This is best described as _______. a. social responsibility b. organizational culture c. marketing citizenship d. opportunity e. code of conduct

b. organizational culture

Frito-Lay developed a bag for its chips that was biodegradable. While praised by environmentalists, soon it received many complaints that the bags were too loud when they crinkled. Frito-Lay ended up abandoning the packaging. What does this situation demonstrate about socially responsible behavior? a. Social responsibility requires a lot more investment. b. It cannot be socially responsible if it inconveniences consumers. c. It can be difficult to balance all of society's demands. d. Socially responsible programs usually do not work. e. Sustainability should be performed separately from social responsibility.

c. It can be difficult to balance all of society's demands.

The government has provided tax credits toward individuals who purchase electric vehicles. This is an attempt to do which of the following? a. Reduce the production of unsaleables b. Eliminate the concept of waste c. Make prices reflect the cost d. Make environmentalism profitable e. Reinvent the concept of a product

c. Make prices reflect the cost

A lawsuit was filed against Naked Juice because of its claims that it is "natural." The lawsuit claimed that because it contained synthetic ingredients, it did not fit the definition of "natural" and was therefore misleading. Naked Juice agreed to drop the "natural" claim. According to critics, Naked Juice was violating consumers' right to _______. a. safety b. be heard c. be informed d. redress e. choose

c. be informed

Ethics relates to individual and group decisions whereas social responsibility _______. a. is the synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both organizational and social benefits b. links products to a particular social cause on an ongoing or short-term basis c. deals with the total effect of marketing decisions on society d. considers the diverse perspectives of stakeholders in their daily operations and strategic planning e. deals with the total effect of marketing decisions on the environment

c. deals with the total effect of marketing decisions on society

Research into marketing ethics suggests that the _______ associated with an issue, the more likely it will be recognized as an ethics issue and the more important it will be in making an ethical decision. a. lesser the consequences b. greater the price c. greater the consequences d. greater the value e. greater the publicity

c. greater the consequences

At Shania's job, promptness is heavily stressed. However, Shania's supervisor never punishes anyone for being tardy, no matter how late they come in. Shania therefore takes advantage of this to sleep in an extra hour each day. This failure on the part of Shania's supervisor is an example of how _______ factors can influence employee conduct. a. organizational pressure b. intensity of the ethical issue c. opportunity d. individual values' e. organizational culture

c. opportunity

Scenario 4.1 Janelle manages a small pharmacy in Dallas, Texas. Recently, she started an initiative to help give low-income individuals steep discounts on expensive drugs. The company is losing some revenue by charging these discounts, but it has helped the pharmacy gain a reputation for corporate citizenship. Consumers can also donate money to help fund this initiative. Refer to Scenario 4.1. Suppose that Janelle went on a business trip. When she comes back, she files an expense report and sends it to the pharmacy's headquarters. Although a few meals were provided on her trip, Janelle does not tell them this but puts down that she needs to be reimbursed for all meals. The initiative providing discounts to low-income consumers fulfills the company's _______ responsibilities, and Janelle's practice of filling out expense reports violates the company's _______ responsibilities. a. ethical; philanthropic b. ethical; ethical c. philanthropic; ethical d. philanthropic; legal e. philanthropic; philanthropic

c. philanthropic; ethical

New Belgium Brewing's strong set of values, beliefs, goals, norms, and the rituals shared by its employees represent its _______. a.marketing ethics b.strategic philanthropy c.organizational culture d.marketing citizenship e.social responsibility

c.organizational culture

Chantel works at Coca-Cola. To make the required sales number, Chantel sent more Coca-Cola products to their distributors than what they asked for. She did this right before the accounting period. She knew that even if they sent back the extra product, it would be after the numbers were reported. This is an example of what type of distribution issue? a. Greenwashing b. Counterfeiting c. Product availability d. Channel stuffing e. Product recall

d. Channel stuffing

Scenario 4.1 Janelle manages a small pharmacy in Dallas, Texas. Recently, she started an initiative to help give low-income individuals steep discounts on expensive drugs. The company is losing some revenue by charging these discounts, but it has helped the pharmacy gain a reputation for corporate citizenship. Consumers can also donate money to help fund this initiative. Refer to Scenario 4.1. Which responsibility is the pharmacy fulfilling with this initiative for low-income consumers? a. Financial b. Ethical c. Legal d. Philanthropic e. Economic

d. Philanthropic

Which of the following is true about social responsibility? a. Social responsibility results in fewer marketing problems. b. Social responsibility will eliminate ethical issues in marketing. c. Social responsibility will always be profitable. d. Social responsibility improves marketing performance. e. Social responsibility automatically reduces costs.

d. Social responsibility improves marketing performance.

Which of the following is an informal way of expressing organizational culture? a. Ceremonies b. Manuals c. Codes of conduct d. Stories e. Dress code

d. Stories

When an ethical issue arises in the supply chain, which of the following is most likely to be held accountable for misconduct? a. The channel member selling the product b. The channel member making the product c. The channel member wholesaling the product d. The channel member managing the product e. The channel member shipping the product

d. The channel member managing the product

In the absence of ethics and compliance programs, employees will generally make decisions based primarily on their _______. a. personal values b. assessment of the law c. observations of how society behaves d. observations of how coworkers and superiors behave e. financial situation

d. observations of how coworkers and superiors behave

Kim Jordan, New Belgium Brewing's former CEO and co-founder, emphasizes the importance of New Belgium's people, particularly its employees, as well as its customers. Customers and employees are among New Belgium's _______. a.target public b.target market c.supply chain d.stakeholders e.shareholders

d.stakeholders

New Belgium Brewing deliberately pays a little extra to use wind, solar, and biogas to power its facilities. It also gives employees who have been with the company for more than a year a bicycle to encourage them to use human power for their commute instead of cars. These efforts indicate that _______ is a major priority for New Belgium's social responsibility efforts. a.community relations b.ethics c.consumerism d.sustainability e.cause-related marketing

d.sustainability

Jose works in accounting. He was told by his supervisor that it was necessary to change some of the accounting to make company performance look better. Jose objected, so the CEO got involved and told Jose that it was necessary to keep the firm afloat. If the firm went under, then many people would lose their jobs. Jose also faced pressure from colleagues. In the end, Jose decided not to do what he was told and quit his job. Which factor most likely impacted his ethical decision the most? a. Organizational ethics b. Organizational pressure c. Opportunity d. Intensity of the ethical issue e. Individual values

e. Individual values

How does social responsibility differ from ethics? a. It can be profitable for the firm. b. It relates to individual and group decisions. c. It deals with philanthropy rather than ethics. d. It can have a positive impact on society. e. It deals with the total effect of marketing decisions on society.

e. It deals with the total effect of marketing decisions on society.

Which of the following is often a better predictor of unethical activities than are personal values? a. The CEO b. Organizational relationships c. Individual factors d. Organizational pressure e. Opportunity

e. Opportunity

What is the greatest determinant of ethical conduct in the organization? a. The firm's legal responsibilities b. The "bad apples" in the firm c. Employees' individual ethical values d. The comprehensiveness of the code of conduct e. The company's ethical culture

e. The company's ethical culture

An ethical issue in the area of promotion is _______, which occurs when products are promoted as being more environmentally friendly than they really are. a. product recalls b. cause-related marketing c. green marketing d. sustainability e. greenwashing

e. greenwashing

Scenario 4.1 Janelle manages a small pharmacy in Dallas, Texas. Recently, she started an initiative to help give low-income individuals steep discounts on expensive drugs. The company is losing some revenue by charging these discounts, but it has helped the pharmacy gain a reputation for corporate citizenship. Consumers can also donate money to help fund this initiative. Refer to Scenario 4.1. Assume the government passes a new law that it will work with pharmacies to provide drug discounts to low-income consumers. In this case, the pharmacy's social responsibility initiative will go from fulfilling its _______ responsibility to fulfilling its _______ responsibility. a. philanthropic; ethical b. philanthropic; economic c. ethical; philanthropic d. ethical; economic e. philanthropic; legal

e. philanthropic; legal

New Belgium Brewing has from the beginning embraced a strategic focus for trying to satisfy its economic, legal, ethical, and philanthropic social responsibilities expected of it by its stakeholders, particularly with regard to sustainability and community relations. This indicates that the company is striving _______. a.for ethical conduct b.for social responsibility c.to be a power brand d.to have a stakeholder orientation e.for marketing citizenship

e.for marketing citizenship

A(n) ________ is an identifiable problem, situation, or opportunity that requires an individual or organization to choose from among several actions that must be evaluated as right or wrong, ethical or unethical.

ethical issue

Conditions that limit barriers or provide rewards are known as __________

opportunity

__________ occur(s) when companies ask customers to return products found to be defective.

product recalls