Exam 4: Social Responsibility and Ethics in Marketing

The right to be informed means that consumers should be treated fairly when they complain to marketers about their products.

Stacey Schmidgall is an administrative assistant for Marcellus Williams, who is brand manager for a consumer products company. Marcellus works with a variety of suppliers and customers and is very busy. Part of Stacey's job is to help Marcellus manage his time, and he has asked her to screen his calls to make sure that only those people with whom he is working are able to speak with him. Marcellus has been coaching Stacey on how to handle these calls and has told 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." Stacey is growing increasingly concerned about these practices and dislikes lying to people who call. She feels that Marcellus 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. Stacey doesn't want to compromise her own personal values to be an effective administrative assistant. Stacey's dilemma represents the ________ factor that influences the ethical decision-making process.

One of the most significant principles of business is that the primary objective of the executive management of a corporate entity is to engage in strategic actions that increase shareholder value. If we think of this objective in terms of the four dimensions of social responsibility, it would be part of the

L'Oreal, 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 L'Oreal addressing?

Comcast Cares is an event in which Comcast employees and their families get together to volunteer for different causes. The volunteers have donated more than 4 million hours of service that range from picking up trash to volunteering at senior centers. What type of social responsibility issue does Comcast Cares fall under?

According to the consumer bill of rights, the idea that consumers' interests should receive full and sympathetic consideration in the formulation of government policy is known as the right to

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.

During the 1990s, Nike was sharply criticized after it was discovered that some of its global suppliers and contractors were using child labor in their factories. Nike itself did not use child labor and had ethical policies that forbade the use of child labor. Why did consumers still hold Nike accountable?

It is nearly impossible to balance the needs of all stakeholders so as to satisfy all of society's demands.

Discuss some of the important ethical issues in marketing.

The four basic rights outlined in the Consumer Bill of Rights include the right to safety, the right to be heard, the right to

Under President Kennedy's consumer bill of rights, consumers must have access and opportunity to review all relevant information about a product before buying it.

Carrie, a new salesperson for Brenham Foods, calls in an order for twice the amount of merchandise that Corner Market requested because she knows that it will increase her sales and will not be noticed by Corner Market. This is an example of how ____ influences ethical decision making.

The Board of Directors of a company is responsible for determining, articulating, and communicating the values and standards of the business, and for ensuring that the policies, procedures, and controls in place act to support, rather than hinder, ethical values throughout the business. Which one of the following corporate elements and characteristics can the Board of Directors influence the most to ensure that the organization has an ethical culture?

Priya knows that her company has a formal code of conduct, but she does not see this code being equally and consistently applied to all employees. Priya believes that this sporadic enforcement of the formal code only enhances the ____ for committing unethical acts.

According to some environmentalists, what are the three types of products that all products should be reduced to?

Actions that promote human health and welfare address the ____ dimension of the pyramid of social responsibility.

Honeybees are disappearing at an alarming rate, and since they pollinate about a third of all foods we eat, it is an important concern. That's why Haagen-Dazs launched a microsite to increase the awareness of the issue. In addition, it launched a "Twitcause" campaign on Twitter, raising $7,000 in two days. This example illustrates the positive consequences of

A solution cannot be ethical if there are different viewpoints on the issue within the organization.

In 2000, two childhood friends began working together to create a line of cleaning products that were beautifully designed, didn't smell like chemicals, and could be a design element rather than hidden in someone's kitchen cabinet. The company, Method, was established in 2001 and made its first sale of cleaning sprays to a local grocery store. The company founders, Adam Lowry and Eric Ryan, are committed to sourcing products that come from plants-not chemical plants. They never test their products on humans or animals and ensure that they make products that are safe for every surface, especially Earth's surface. In 2004, Method was the first company to mass market a concentrated laundry detergent in the United States that provided consumers with the opportunity to reduce the amount of packaging and waste associated with the packaging. Method emphasizes the _________ issue of social responsibility as a strategy to connect with customers and generate sales.