Chapter 8 MC

Why is the connection between marketing ethics and leadership so important in nurturing a strong ethical culture?

Employees look to the leader as a model of acceptable behavior

Being economically responsible is the most basic social responsibility of any business. This responsibility has the most immediate effect on

shareholders

Essentially, having a climate of ethics and social responsibility is all about creating trust among a firm's stakeholders. To gain trust, the firm and its employees must continuously uphold

their standards of integrity

The role of ethics in marketing strategy can be distilled into one word. Without __________, marketers run the risk of alienating stakeholders and inviting financial ruin

trust

Many large firms, such as Walmart, Home Depot, Lowe's, and Barnes & Noble, have been accused of predatory pricing because their business practices have put many local, mom-and-pop firms out of business. In reality, these large firms are not necessarily guilty of predatory pricing. Why?

Because the large firms have efficient cost structures and lower variable costs

Each of the following is a potential product-related ethical issue EXCEPT

Invasion of privacy

Which of the following IS NOT a challenge associated with being ethical and socially responsible?

Most employees perceive that the values of honesty, respect, and trust are infrequently applied in the workplace

__________, which occurs when a firm charges different prices to different customers, occurs in both consumer and business markets. However, it is very common among different members of the supply chain

Price discrimination

___________ is a broad concept that relates to an organization's obligation to maximize its positive impact on society while minimizing its negative impact

Social responsibility

Most firms that experience ethical or legal problems actually have a code of conduct or an ethical compliance program in place. Why is it that these firms can still have ethical problems despite having a code of ethics or compliance program?

Their codes are typically not integrated into daily decision making

Colgate promotes its toothpaste using a claim that states "helps fight plaque and gingivitis." What potential ethical issue does Colgate have with respect to its promotional strategy?

ambiguous statements

Ben & Jerry's is well known for its use of __________ in that it ties its products and marketing strategy to social causes such as environmental stewardship

cause-related marketing

Socially responsible firms tend to enjoy higher __________ because customers perceive that the firm is dedicated to doing the right thing and treating customers fairly

customer loyalty

The link between marketing ethics/social responsibility and firm performance has been documented repeatedly over time. This link is most evident in firms that have a strong __________

ethical climate

Some companies choose to engage in a deceptive marketing practice called __________, which involves misleading consumers into thinking that a product is more environmentally friendly than it actually is

greenwashing

Research indicates that being ethical and socially responsible has a number of benefits for the organization. Which of the following IS NOT one of these benefits?

increased competitive orientation

Research has found that corporate codes of ethics should contain six highly desirable core values or principles. Which of the following IS NOT one of these core values?

legality

With respect to regulating marketing ethics, a key advantage of of self-regulatory programs like the Better Business Bureau is the fact that they are

less costly and more practical to implement

The principles and standards that define acceptable marketing conduct as determined by the public, government regulators, private-interest groups, competitors, and the firm itself are termed

marketing ethics

To ensure that ethics and social responsibility are thoroughly incorporated into the firm's strategic planning process, the firm's __________ should never be silent about ethical requirements and social responsibility

marketing plan