Exam 3: Ethics & Social Responsibility

All of the following statements about the creation of a code of ethics are true EXCEPT:

Whenever faced with a difficult customer,the owner of the shoe store remembered what the original store founder,his grandfather,had done in similar situations and did the same.In other words,the grandson based his decision on the deontological ethical theory.

Corporate social responsibility is defined as the:

At the most basic level,a firm must be profitable.What level of the pyramid of corporate social responsibility is this?

One drawback of the _____ is that there may not be a set of similar examples for a given ethical dilemma.

Drug Marketing Pharmaceutical companies spent $4.4 billion on prescription drug advertising in 2008,mostly on television and in magazines.While the Internet is becoming a more prominent medium to reach consumers and is the primary source used to seek health information,these companies spent less than $130 million on Web marketing.One reason is that there are no guidelines,which makes these heavily-regulated marketers uneasy.For example,television commercials for prescription drugs must include disclosures regarding the major side effects if the brand name is mentioned in the ad.The Food and Drug Administration (FDA)claims that existing regulations address many of the Internet advertising issues,but other aspects of Web marketing,such as social networking and search marketing,must be reviewed.That's why the FDA hearings on this issue were attended by pharmaceutical giants and Web companies like Google,Yahoo,and WebMD Health. -Refer Drug Marketing.Drug manufacturers are hesitant to make full use of the Internet as an advertising medium because they are comparing the regulations imposed on their advertising in other media,such as television.Which ethical theory does this illustrate?

In the _____ stage of ethical development,loyalty and obedience to the organization or to society become paramount.

One key to success of a cause-related marketing campaign is transparency.That is,the company should clearly state how the money is raised and how much will be going to the charity or other cause.

Which of the following statements describes ethics?

Studies suggest that ethical beliefs vary only a little from culture to culture.

Florida Hospitals A group of hospital administrators in Florida were discussing the amount of resources used to care for patients that were illegal immigrants and had no medical insurance.One man discussed how his hospital had spent over $2 million on one illegal immigrant who had no family or friends and who was not getting better.Another administrator stated that his hospital was losing $20 million annually in order to provide care for the influx of illegal immigrants into the state.After a great deal of discussion,it was determined that there was probably nothing anyone of them could do about the situation,and that each of them had very definite ideas about how to deal with the problems. -Refer to Florida Hospitals.One administrator said,"If we were not forced to care for the illegal immigrants who have no resources and could empty our hospital beds of them,we could provide much better care for those law-abiding patients who have insurance." Because she believes in benefiting as many people as possible,she more than likely adheres to the _____ ethical theory.

Describe the pyramid of corporate social responsibility and include a description of its components.

Which theory holds that social responsibility is paying attention to the interest of every affected stakeholder in every aspect of a firm's operation?

List three ways an organization will benefit from the development and use of a code of ethics.

After the Civil War,the U.S.military was ordered to the American West to remove the Indians from large tracts of land and confine them to small reservations on land that was deemed worthless.Indian children were removed from their parents and sent to schools that tried to turn the Indian children into models of good U.S.citizens.While this practice may seem ethically wrong to us today,politicians knew that the demand of the U.S.population for more land could only be achieved if the smaller Indian population was made to accede to the wishes of the majority.This is an example of the application of:

_____ is the cooperative effort of a for-profit firm and a nonprofit organization.

The _____ prohibits U.S.corporations from making illegal payments to public officials of foreign governments to obtain business rights or to enhance their business dealings in those countries.

_____ refers to the moral principles or values that generally govern the conduct of an individual or a group.

You are an ethics consultant,and a group of managers has asked you for some guidelines to determine the ethicality of a decision.You tell the managers that one cannot guarantee the rightness of a decision,but a checklist can improve the chances of a decision being ethical.What are six questions you would tell the managers to put on this checklist?

Which of the following is an unethical practice marketing managers may have to deal with?