Principles of Marketing Chapter 4

The legal concept of caveat emptor closely translates to

"let the buyer beware"

The moral values that govern the actions and decisions of an individual or group and serve as guidelines on how to act rightly and justly when faced with a moral dilemma are referred to as

ethics

While ______ deal with personal moral principles and values,______ are society's values and standards that are enforceable in the courts.

ethics; laws

Because culture is a socializing force that dictates what is morally right, moral standards are

relative to particular societies

What are common ways in which consumers fail to act ethically or responsibly? (Select all that apply)

submitting phony insurance claims putting inaccurate information on credit applications pirating music

When organizations recognize that there is a need to improve the state of people, the planet, and profits simultaneously if they are to achieve sustainable, long-term growth, they are focusing on

the triple bottom line

Stakeholder responsibility focuses on the obligation an organization has to _____

those who can affect achievement of its objectives

True or false: When it comes to ethics and legality, businesspeople should understand that if they make a decision that is unethical, that decision will always be illegal as well.

Reason: This is false. The distinction between the legality and ethicality of business decisions is not always clear, and while some decisions may be unethical, they are not necessarily illegal.

_______ responsibility holds that companies have a simple duty: to maximize profits for their owners or stockholders.

Profit

A social audit is used by organizations to

develop, implement, and evaluate social responsibility efforts

Sustainable development involves conducting business in a way that Blank

protects the natural environment while making economic progress

development involves conducting business in a way that protects the natural environment while making economic progress.

Sustainable

In cause marketing, charitable contributions are not outright contributions but rather are

tied to customer revenues produced through the promotion of one of its products

Societal responsibility extends the concept of social responsibility to which of the following? (Select all that apply)

The general public Preservation of the ecological environment

5 Steps of a Social Audit

1. Recognize a firm's social expectations and why it should engage in social responsibility 2. Identify social responsibility causes consistent with the firm's mission 3. Determine the organizational objectives and priorities for activities the firm will undertake. 4. Specify the type and amount of resources necessary to achieve social responsibility objectives. 5. Evaluate the social responsibility programs and activities taken by the firm.

is considered unethical in the United States because of its negative impacts on competition, but its practice can be more common in countries in earlier stages of economic development.

Bribery

What two statements are TRUE of bribery?

Bribes are a form of corruption that provide personal benefit to an authority figure. It is more common in countries in the earlier stages of economic development.

Select two reasons for the state of perceived ethical business conduct being at its present level.

Ethical business conduct may have declined. The publics' expectations of ethical business behavior have increased.

What are steps in conducting a social audit? (Select all that apply)

Evaluate social responsibility programs. Identify causes consistent with the company's mission. Specify the resources necessary to achieve social responsibility objectives.

What two benefits are associated with companies' effort to increase social responsibility?

Favorable word of mouth Better financial performance than less responsible companies

Which of the following are examples of societal responsibility?

Green marketing Cause marketing Use of the triple-bottom line

A systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility is known as

a social audit

Green marketing is

any effort to produce, promote, or reclaim environmentally sensitive products

Public opinion surveys indicate that most people feel the ethical standards of business executives

are not "very high"

The fact that consumers should have access to public-policy makers regarding complaints about products and services relates to consumers' right to

be heard

In an ethical exchange, both buyer and seller should be Blank______ afterward.

better off

A company representative who gives a gift to the government official considering a contract for the representative's firm may be accused of

bribery

Even when society has strong ethical standards, a questionable Blank______ can lead to harmful practices like insider trading, deceptive sales practices, and bribery.

business culture

If the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products, it is practicing

cause marketing

Select three elements that reflect a company's commitment to sustainable marketing.

cause marketing green marketing social audits

The concept "let the buyer beware" that was prevalent in the United States before the 1960s is known by what legal term?

caveat emptor

In which situation should a marketer be especially careful in order to be sensitive to the Consumer Bill of Rights?

collecting personal information from online consumers

Economic espionage and corruption are unethical behaviors that negatively affect

competitors

Which two of the following are the most common motivations for unethical consumer behavior?

consumer's rationalization that the act is justified consumer believes he or she can get away with it

Which two are the most common unethical behaviors when it comes to competition in business?

corruption economic espionage

Select the three items that are economic espionage activities.

electronic hacking illegal trespassing fraud

In order to be Blank______, an exchange should result in both parties being better off after a transaction.

ethical

Ikea invests in alternative solutions such as using solar panels and wind turbines to to supply energy to its buildings, and the company is committed to decreasing the amount of raw materials it uses in making its products and avoiding the depletion of natural resources. These actions by Ikea are an example of Blank

green marketing

When a company like 3M has a formal program to reduce pollution and recycle material, it is pursuing

green marketing

The practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology, or company practice is termed

greenwashing

Business culture affects ethical conduct in what two ways?

in the competitive behavior among sellers in the exchange relationship between sellers and buyers

Which personal moral philosophy considers certain individual rights or duties as universal, regardless of the outcome?

moral idealism

Two personal moral philosophies are Blank______, which considers certain rights and duties as universal, and Blank______, which focuses on the greatest good for the greatest number.

moral idealism; utilitarianism

Moral idealism and utilitarianism are two prominent personal Blank______ that are important in marketing.

moral philosophies

What is considered a human rights abuse by an American company may be viewed as an acceptable business practice in China, which illustrates that

moral standards are relative to particular societies

Social responsibility means that organizations are

part of a society and accountable to it for their actions

Social responsibility includes the concepts of ______ responsibility, stakeholder responsibility, and societal responsibility.

profit

The first and most central concept of social responsibility is Blank______ responsibility.

profit

Organizations that place an emphasis on the triple-bottom line recognize the need to improve the state of what three items?

profit people the planet

Select the three concepts of social responsibility.

profit responsibility societal responsibility stakeholder responsibility

A whistle-blower is an employee who

reports unethical or illegal actions of his or her employer

The fact that organizations are part of a larger society and are accountable to that society for their actions is the essence of Blank

social responsibility

The broadest concept of social responsibility is Blank

societal responsibility

When an organization focuses on the obligations it has to consumers, employees, suppliers, and distributors it is accepting its Blank______ responsibility.

stakeholder

Companies that engage in Blank______ marketing typically benefit from favorable word of mouth, and outperform other companies financially.

sustainable

Marketers have embraced societal responsibility through Blank______, which seeks to meet today's economic, environmental, and social needs without compromising the opportunity for future generations to meet theirs.

sustainable marketing

The effort to meet today's (global) economic, environmental, and social needs without compromising the opportunity for future generations to meet theirs is called

sustainable marketing

The right to be informed and the right to choose, as both pertain to the exchange process in marketing, are part of

the Consumer Bill of Rights

Economic espionage is

the clandestine collection of trade secrets or proprietary information about competitors

Ethics refers to

the moral principles and values that govern the actions and decisions of an individual or group

Which two are rights codified by the 1962 Consumer Bill of Rights?

the right to safety the right to be heard

Corporate culture can be defined as

the set of values, ideas, and attitudes that are learned and shared among the members of an organization

bribery

when someone voluntarily offers payment to get an illegal advantage

Employees who report unethical or illegal actions of their employers are engaged in

whistle-blowing