marketing test 4

All of the following terms are generally associated with the definition of corporate social responsibility except

profit.

When Walmart pressured its vendors to supply it with environmentally friendly merchandise with labels to prove it, this most relates to the concept of sustainability.

True

Corporate social responsibility refers to the coordinated actions of government organizations to address the ethical, social, and environmental impacts of business operations.

False

Ethos Water donates 2 percent of its profits to children in need of clean water. This action demonstrates that Ethos Water is a firm with a strong ethical climate.

False

Marketing ethics is concerned with distinguishing between right and wrong actions and decisions that arise in a business setting, according to broad and well-established moral and ethical principles that might arise in a business setting, and any special duties or obligations that apply to persons engaged in commerce.

False

How might a technology company like Appleensure that it behaves in a socially responsible way toward its employees?

It can ensure that pay practices are fair at all levels of the company.

How might a technology company like Appleensure that it behaves in a socially responsible way toward its customers?

It can protect the privacy of personal information collected on its website.

How might Starbucks ensure that it behaves in a socially responsible way toward members of its supply chain?

It can purchase coffee beans from suppliers who pay coffee growers a fair price.

Which of the following statements regarding conscious marketing is correct?

It recognizes that business is a subset of society, and that society is a subset of the planet.

Which of the following statements regarding corporate social responsibility is true?

It sees limited overlap between the business and society, and between business and the planet.

The XYZ firm is in Step 4 of its ethical decision-making process. Executives were asked to take the Publicity test using an ethical-decision making metric. All scores were in the "No" column. What does this mean?

The situation is ethically troubling to the executives.

A roofing company agreed to complete a job in one week and collected a 50 percent deposit, but never showed up to do the job. The same roofing company then donated $6,000 to a local children's hospital. The roofing company could be considered socially responsible.

True

An example in the text describes a campaign by Grey Poupon that involved a Facebook campaign targeted toward people who had "good taste." The campaign was criticized for privacy issues that made it unethical. This occurred during the implementation phase of the strategic marketing planning process.

True

Badger Hardware was planning on raising the pay of its managers, but not its frontline employees. To determine the potential ethical issues, it should first identify the issues involved so that it can gather facts related to those issues.

True

BlendMate, a firm that manufactures high-end blenders, donates $10 per blender sold to a local food bank. This is a form of corporate social responsibility.

True

Coca-Cola spent $102 million through The Coca-Cola Campaign focusing on water stewardship, healthy and active lifestyles, community recycling, and education. This is an illustration of a CSR program.

True

From a conscious marketing perspective, social responsibility is at the core of the business through the higher purpose and viewing the community and the environment as stakeholders.

True

Key corporate social responsibility (CSR) stakeholders include employees, customers, the marketplace, and society.

True

Charges that firms are using "sweatshop" labor to produce their products are likely to occur during the __________ phase of the strategic marketing planning process.

implementation

Conscious marketing encompasses all of the following overriding principles except

recognition of the company's bottom line

Rock-Bend Company is considering buying out a competing firm and closing most of the competitor's factories. The firm has identified the various stakeholders and their issues and gathered the available data. Everyone with an interest in the issue has engaged in brainstorming and evaluating alternatives. Management reviewed and refined the alternatives, and then chose a course of action. If the managers are not confident about the decision, they should

reexamine their alternatives.

Darwin's company is facing a difficult ethical issue. The firm has identified the various stakeholders and their issues and gathered the available data. Everyone with an interest in the issue has engaged in brainstorming and evaluating alternatives. Management reviewed and refined the alternatives. It should now choose the course of action that

seems best after weighing the concerns of all stakeholders.

New real estate disclosure regulations require sellers and their agents to tell prospective buyers about any existing problems with the property. Previously, they were expected only to answer buyers' questions. The new regulation addressed the marketing ethics problem of

withholding information.

After a firm has identified the various stakeholders and their issues and gathered the available data, all parties relevant to the decision should engage in brainstorming and evaluating alternatives. __________ then review and refine these alternatives, and choose a course of action.

Company leaders and managers

A common view in today's business climate is that the only responsibility of a business is to its shareholders, so its only purpose is to make a profit.

False

Among the key differences between conscious marketing and CSR is the unique view on shareholders that is absolutely critical to CSR.

False

Brainstorming in the ethical decision-making framework occurs immediately following the identification of issues.

False

Business ethics and marketing ethics are synonymous terms.

False

One way in which conscious marketing differs from corporate social responsibility (CSR) is that CSR takes a holistic, ecosystem view of business as a complex, adaptive system.

False

Pepsi has cooperated with America on the Move to improve many of its products and their labels, such as reducing the saturated fat in its Frito-Lay Ruffles. This form of social responsibility most directly impacts shareholders.

False

The first step in ethical decision making is to gather information and identify stakeholders.

False

The most basic corporate social responsibility to employees is to ensure the highest pay for the work performed.

False

The purpose of conscious marketing is to make a product by selling products and services.

False

Tipco Computer Company decided to market its tablet computers to preschoolers, even though the tablets were better suited for much older children. This potentially unethical activity takes place during the control phase of the strategic marketing planning process.

False

A meat-packing company discovers that six months ago it unknowingly distributed meat from a cloned cow. The firm is unaware of any specific risks to humans consuming the meat; however, some scientists have raised questions, and some consumers are afraid of possible future problems. The meat company has to decide whether or not to make this matter public. How should it begin the process of making an ethical decision?

Identify the issues raised by the situation.

Imagine the use (or misuse) of data collected from consumers by a marketing research firm. One of the issues that might arise is the way the data are collected. At what step in the framework for ethical decision making would this issue be identified by tthe marketing research firm?

Step 1

____________ provides a detailed, multipronged "Statement of Ethics" that can serve as a foundation for marketers.

The American Marketing Association

Marketing ethics can involve societal issues such as the sale of products or services that may damage the environment or global issues such as the use of child labor.

True

Once the marketing strategy is implemented, controls must be in place to be certain that the firm has actually done what it has set out to do.

True

Stakeholders typically include the firm's employees and their families, customer groups, members of the community, the environment, and the firm's partners and competitors.

True

The Golden Rule test asks the question, "Would I like to be on the receiving end of this action and all its potential consequences?"

True

The consideration of stakeholders and their interdependence is one of the four overriding principles of conscious marketing.

True

All of the following are questions posed in the ethical decision-making metric except

Will this action help advance my career?

All of the following statements regarding corporate social responsibility are true except

a firm's responsibilities to society are not associated with the demands, expectations, requirements, and desires of various stakeholders.

In the ethical decision-making metric, the question that asks "Would I want the person I admire most to see me doing this?" applies to the

admired observer test.

After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision-making situation, __________ should engage in brainstorming and evaluating alternatives.

all parties relevant to the decision

For corporate leaders, their firm's ability to ___________ must be of paramount importance.

balance shareholder interests with the needs of society.

To avoid having ethical situations become problematic for a firm, the short-term goals of each employee must

be aligned with the long-term goals of the firm.

Compared to the average company, firms with strong ethical climates tend to

be more socially responsible.

Which of the following descriptions embodies conscious marketing principles?

both ethically and socially responsible

After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision-making situation, all parties relevant to the decision should

brainstorm for alternatives.

Courses of action such as halting the market research project, making responses anonymous, and instituting training on the AMA Code of Ethics for all researchers would be identified during the __________ stage.

brainstorming

When companies embrace __________, they appeal not only to their shareholders but also to all of their key stakeholders.

conscious marketing

When Toyota owners began to report problems with sticking accelerator pedals and nonfunctioning brakes, Toyota at first ignored or rejected the claims. Eventually, the company evaluated the issue and issued a recall. Which of the four steps of the ethical decision-making framework was Toyota performing when it recalled several of its 2007-2010 models?

choose a course of action

When marketers work in controversial or polluting industries such as tobacco or fossil fuels, their central activities largely bar them from becoming

conscious marketers.

Elena is the CEO of a small manufacturing firm. She is concerned with meeting the investment objectives of the firm's shareholders, and sees no value in corporate social responsibility. Elena's attitude is

consistent with the views of other critics of corporate social responsibility.

Denny is considering the question, "Did our actions have a negative impact on any stakeholder group?" Denny is addressing marketing ethical issues in the __________ phase of the strategic marketing planning process.

control

During the __________ phase of the strategic marketing planning process, marketers utilize systems to check whether each conscious marketing issue raised in earlier phases was addressed.

control

Every year, General Mills issues a report discussing how the firm has performed against its own standards of conscious marketing. This report is part of General Mills's __________ phase of its strategic marketing planning process.

control

When integrating conscious marketing into a marketing strategy, a key task is to ensure that all managers are evaluated on their actions from a conscious marketing perspective.This action would take place during which stage of the strategic marketing planning process?

control phase

For every consumer who purchases a pair of TOMS shoes for $55, the company promises that a needy child will receive a pair of shoes. TOMS shoes is actively engaging in

corporate social responsibility.

Ironically, while the leaders of Enron Corporation were manipulating the company's finances for their personal benefit, the company was a major donor to Houston area charities. Enron had unethical business practices, but was also

demonstrating corporate social responsibility.

CSR can be described as context-specific actions and policies, taking stakeholders' expectations into account, to achieve what is referred to as the triple bottom line. The triple bottom line includes ________ performance.

economic, social, and environmental

Many corporations are shifting from defined benefit to defined contribution retirement programs. When considering changes to retirement programs, the primary stakeholders are the

employees.

The Harvest County School Board is concerned about deteriorating school facilities, combined with a shrinking budget. The board began by studying the issue, and then identified parents, children, teachers, staff, and taxpayers as groups who have a vested interest in the problem. The school board has listened to each group's concerns. In the ethical decision-making framework, its next action should be to

engage in brainstorming alternatives.

Alicia has been asked to approve a marketing campaign that, although it is not illegal, promotes food products to children. She is concerned that the food products are not particularly nutritious, although they are not as bad for children as some others sold by competitors. By using the ethical decision-making metric, Alicia will

evaluate the alternative using a series of questions.

Garrett has just purchased a beer distributorship. He wants to increase the visibility of his firm in local markets, but he knows there are a number of regulations and socially accepted practices associated with promoting alcoholic beverages. The first thing Garrett should do is to

identify issues that need to be addressed.

Hisaoki picks up the local newspaper and reads a stinging letter to the editor criticizing his beverage company for supporting a sporting event for children with disabilities. The letter writer is critical of a banner displayed at the event with the logos of alcoholic beverages and Hisaoki's company name. Hisaoki never considered that this problem might arise. Hisaoki's company failed to

identify issues.

Anupam's company manufactures industrial ladders. He is concerned that consumers who do not understand ladder safety will purchase these extra-tall ladders and injure themselves. During which phase of the strategic marketing planning process should this issue be addressed?

implementation

The sale of products that may damage the environment, the use of sweatshop labor, and the marketing of dangerous products are examples of

marketing ethical issues.

The _________ for natural skin care company Burt's Bees is to "create natural, Earth-friendly personal care products formulated to help you maximize your well-being and that of the world around you."

mission statement.

When making decisions, managers often have to decide between doing what is beneficial for them (and possibly the firm) in the short run, and doing what is right and beneficial for the firm and for society in the long run. To address this conflict, a firm

must align the short-term goals of each employee with the long-term, overriding goals of the firm.

If Melissa decides to sell the best ice cream on earth, and intends to establish a strong ethical climate in her organization, during which phase of the strategic marketing planning process should she introduce ethical considerations?

planning

In the ___________ stage, a firm will decide what level of commitment to its ethical policies and standards it is willing to declare publicly and how the firm plans to balance the needs of its various stakeholders.

planning

Marketers that include ethical policies and standards in the firm's mission or vision statements are introducing these concepts at which stage of the strategic marketing planning process?

planning phase

The ethical decision-making framework includes all of the following steps except

promote the firm's corporate social responsibility efforts.

Business ethics is concerned with all of the following except

societal issues such as the sale of products or services that may damage the environment

When Walmart issued new standards for livestock products that were raised on food without antibiotics or artificial growth hormones, it considered multiple ______, including the ranchers that supply the food, its customers, and animal welfare groups.

stakeholders

When Bernie Ebbers, WorldCom's CEO, was convicted of financial crimes, WorldCom was forced to merge with MCI. One of the ramifications of this merger was the loss of WorldCom's sponsorship of the Sea Pines Heritage PGA golf tournament. The tournament funds the Heritage Foundation, a major community charity. This example illustrates

that the impact of unethical actions can reach far beyond the corporation.

All of the following are included in the decision-making metric except

the likability test