MKTG Ch 4

Research suggests that a relationship exists between ______ and an organizational climate that supports marketing ethics and social responsibility. a. a stakeholder orientation b. reduced costs. c. profits d. satisfied shareholders. e. a cost tradeoff

a. a stakeholder orientation

___ are formalized rules and standards that describe what a company expects of its employees in terms of ethical behavior. a. Ethics clauses b. Codes of conduct c. Behavior contracts d. Ethics contracts e. Job descriptions

b. Codes of conduct

Which of the following statements about implementing an ethics and legal compliance program is false? a. It requires consistent enforcement of standards from the code of conduct. b. It rarely needs to be revised. c. It helps create a buffer zone on issues that could trigger serious legal complications for the company. d. It requires open communication. e. It requires taking reasonable steps in response to violations of standards.

b. It rarely needs to be revised.

An ethical issue is a. most often found in personal selling situations. b. a right or wrong decision that could have serious consequences on a firm's profitability. c. a problem where there is no clear solution and no positive outcomes. d. likely to arise when an employee's moral philosophy is consistent with the organization's expectations of the employee's behavior. e. an identifiable problem, situation, or opportunity requiring an individual to choose from among several actions that must be evaluated as right or wrong.

e. an identifiable problem, situation, or opportunity requiring an individual to choose from among several actions that must be evaluated as right or wrong.

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

a. force channel intermediaries to behave in a specific manner.

In response to organizational pressure to perform, Bao used a deceptive sales tactic to obtain a major sales contract. He was surprised that he wasn't punished for his behavior and even received a substantial bonus for securing the contract. Given the same opportunity in the future, Bao will most likely a. use the similar sales tactic again. b. express his discomfort with the situation to his supervisor. c. report his employer to the industry's trade association. d. blow the whistle on his employer to a government agency. e. not use the similar sales tactic again.

a. use the similar sales tactic again.

Ecover, a manufacturer of personal care and beauty products, has a focus on sustainability. It has developed eco-packaging, eliminated many potentially harmful chemicals from its products, and has improved its production systems to reduce waste. What major social responsibility issue is Ecover addressing? a. The natural environment b. Community relations c. Marketing ethics d. Legal obligations e. Consumerism

a. The natural environment

All companies have a responsibility to ____ so they can provide a return on investment to their owners and investors, create jobs for the community, and contribute goods and services to the economy. a. be profitable b. obey their customers c. pay employees more than minimum wage d. provide the largest selection possible e. offer the lowest price

a. be profitable

Companies that incorporate ethics and social responsibility into their strategic plans are likely to experience a. reduced costs. b. improved marketing performance. c. negative publicity. d. increased lawsuits. e. disappointed shareholders.

b. improved marketing performance.

Scenario 4.2 Use the following to answer the question. ​ WhiteWave Foods, producer of brands such as Silk Soymilk, specializes in manufacturing innovative and nutritious food products. Silk Soymilk was first launched in 1996 and is committed to the health of its customers, as well as the health of the planet. At Silk, they have offset all of their energy consumption with wind power, preventing over 16,000 tons of greenhouse gases from entering the atmosphere each year. Silk Soymilk is made from a mixture of organic and natural, non-genetically-modified soybeans, reducing the amount of pesticides in the air, soil, and water. Since 2002 they have been sponsoring the FarmAid concert, whose mission is to keep family farmers on their land and ensure a safe, healthy food supply for all Americans. ​ Refer to Scenario 4.2. The use of wind power to offset energy consumption by Silk Soymilk's parent company demonstrates its commitment to a. ethical marketing. b. social responsibility. c. philanthropic strategy. d. environmental marketing. e. consumerism.

b. social responsibility.

The Federal Drug Administration (FDA) has established the following requirements relating to the ingredients labeling on food products: Labels must be placed on the product in a location most likely to be seen by the consumer. Labels must include quantity of and type of ingredients included in the food product. Labels must be printed in a specific font size ​ Regarding these requirements, which one of the following statements is correct? a. ​ The primary objective of these requirements is to make food packaging educational. b. ​ This is an example of marketing ethics as determined by a government regulator. c. ​ The primary objective of these requirements is to assist consumers with their recipes. d. ​ The primary objective of these requirements is to enhance competition in the marketplace. e. ​ This is an example of marketing ethics as determined by a private-interest group.

b. ​ This is an example of marketing ethics as determined by a government regulator.

Betty Vinson worked in accounting at WorldCom. When her bosses first approached her and asked her to make questionable accounting transactions, she balked. She knew from her training that these questionable transactions could be construed as misleading. At first, Betty Vinson held firm. But after being told by her bosses that it was the only way to save the firm's finances, she decided to comply. This is an example of a. ​how individual values affect a person's decisions. b. ​how organizational variables influence ethical decision making. c. ​opportunity factors that influence ethical decision making. d. ​environmental factors that impact ethical decision making. e. ​why individual values should be trusted above all else.

b. ​how organizational variables influence ethical decision making.

One way in which marketers can demonstrate social responsibility is through programs in sustainability. Which of the following is not included as a goal of sustainability? a. Considering individuals as part of the natural environment b. Focusing primarily on the external environment of the company c. Adopting more eco-friendly business practices d. Improving technologies that protect the natural environment e. Long-term well-being of the natural environment

b. Focusing primarily on the external environment of the company

A business that contributes resources to the community to improve the quality of life is taking on a(n) ____ responsibility. a. legal b. economic c. cost d. ethical e. philanthropic

e. philanthropic

That marketers have an obligation to engage in fair competition and build proper customer relationships best relates to which of the following? a. Citizenship b. Ethical c. Economic d. Legal e. Philanthropic

c. Economic

Nick Clark is managing director for Southern Mutual Company, a financial services firm. Nick firmly believes that dress and grooming are important elements in creating a positive first impression and provides training to his account managers regarding the dress code and grooming policy. Southern Mutual does not allow any facial hair for men and stresses that women should pull their hair back away from their face because research suggests they will be perceived negatively. The Southern Mutual Company dress and grooming policies are an example of the importance of ______ in influencing ethical decision making. a. organizational relationships b. personal values c. corporate culture d. strong leadership e. opportunity

c. corporate culture

At his new job, Kunal notices that everyone places high values on their families and each others' families, birthdays are always celebrated, and flexible schedules are permitted to facilitate family involvement as long as the work is still getting done. Everyone is very relaxed and friendly. Kunal has made several observations about the a. codes of conduct. b. ethical climate. c. corporate culture. d. organizational structure. e. morale and performance programs.

c. corporate culture.

If Glad expresses concern that its plastic bags and storage products are having too great an impact on the pollution of groundwater under landfills, this concern is directly related to the firm's a. marketing concept. b. corporate benevolence. c. social responsibility. d. ethical responsibility. e. legal responsibility

c. social responsibility.

_______________ promote ethical behavior by reducing opportunities for unethical behavior; employees know what is expected of them and what kind of punishment follows if rules are violated. a. ​Compensation plans b. ​Mission statements c. ​Codes of conduct d. ​Corporate objectives e. ​Human resources policies

c. ​Codes of conduct

What are two common distribution-related ethical issues? a. counterfeiting and bait and switch b. manipulating a product's availability and withholding information c. manipulating a product's availability and price gouging d. counterfeiting and channel stuffing e. coercing retailers and greenwashing

d. counterfeiting and channel stuffing

Emily Ross is an administrative assistant for Erik Boseman, who is brand manager for a consumer products company. Erik works with a variety of suppliers and customers and is very busy. Erik has asked Emily to screen his calls to make sure that only those people with whom he is working are able to speak with him, advising her to say things like "I'm sorry, he's in a meeting" or "He just stepped out of the office and won't return until tomorrow." Emily is growing increasingly concerned about these practices and dislikes lying to people who call. She feels that Erik is being dishonest, and she'd rather be more transparent and honest with people when they call rather than making up a story that isn't true. Emily doesn't want to compromise her own personal values to be an effective administrative assistant. Emily's dilemma represents the ________ factor that influences the ethical decision-making process. a. organizational relationships b. competitive c. social responsibility d. individual e. opportunity

d. individual

Product testing for reliability and quality helps to ensure a consumer's right to a. performance. b. choose. c. be informed. d. safety. e. be heard.

d. safety.

There will be significant ethical diversity in any one organization because of a. organizational factors. b. opportunity. c. relationship pressures. d. organizational culture. e. different levels of personal ethics.

e. different levels of personal ethics.

According to the consumer bill of rights, the right to be informed means that a. marketers have an obligation not to knowingly market a product that could harm consumers. b. consumers should be told when the quality of a product has changed only if it causes harm. c. consumers should have access to a variety of goods and services at competitive prices. d. consumers' interests will receive full and sympathetic consideration in the formulation of government policy. e. consumers should have access to and the opportunity to review all relevant information about a product before buying it.

e. consumers should have access to and the opportunity to review all relevant information about a product before buying it.

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

e. the efforts of independent individuals, groups, and organizations to protect the rights of consumers.