Deck 3: Ethics and Social Responsibility

Question 1

Quasio Foods Inc. is a large food manufacturing corporation that earns more profits than its competitors. The company uses only organically grown grains and fruits. It also promotes organic farming and helps nonprofit agencies who focus on food and nutrition causes. The company has now decided to use a third-party recycling logo. In this scenario, Quasio Foods is most likely to have adopted the concept of _____.

A)relationship marketing
B)event marketing
C)green marketing
D)affinity marketing

Answer 1

C

Question 2

Cause-related marketing is a marketing relationship based on a straight donation.

Answer 2

False

Question 3

A person who follows the deontological theory will produce very inconsistent decisions because they will be based on the individual's choices.

Answer 3

False

Question 4

A virtue is a character trait valued as being good.

Question 5

Business gift giving is considered the most unacceptable business practice in China.

Question 6

Anything that is legal is ethical.

Question 7

Postconventional morality represents the morality of the mature adult.

Question 8

Social responsibility can produce only an indirect profit.

Question 9

The local community is not a stakeholder of an organization.

Question 10

Which of the following is one of the four major components of the pyramid of corporate social responsibility?

A)Opportunism
B)Self-dealing
C)Creativity
D)Philanthropy

Question 11

An ethical decision is solely based on the number of people who are benefitted by the decision.

Question 12

Ethical beliefs vary widely from culture to culture.

Question 13

Morals are rules people develop as a result of cultural values and norms.

Question 14

Preconventional morality moves from an egocentric viewpoint toward the expectations of society.

Question 15

The utilitarian theory is a belief in time-and-place ethics, that is, ethical truths depend on the individuals and groups holding them.

Question 16

In the context of rule utilitarianism, which of the following statements is true?

A)Ethical truths depend on the individuals and groups holding them.
B)Decisions must benefit the most people but through the fairest and most just means available.
C)A current ethical dilemma should be compared with similar examples and outcomes before deciding on a course of action.
D)Intuition and personal feelings should guide decision making in case of dilemmas.

Question 17

In the context of ethical decision making, the greater the degree of agreement among managerial peers that an action is harmful:

A)the more likely that marketers will recognize a problem as unethical.
B)the lesser the likelihood that the action will result in a harmful outcome.
C)the fewer the individuals in the organization that are likely to get affected by the action.
D)the fewer the number of people affected by the negative outcome.

Question 18

Conventional morality is the most basic level of ethical development.

Question 19

Which of the following is a disadvantage of cause-related marketing?

A)It does not increase the sale of products.
B)It can lead to consumer cause fatigue.
C)It results in immediate losses for a company because of its focus on a cause.
D)It requires corporations to use anticompetitive measures.

Question 20

The pyramid of corporate social responsibility portrays philanthropic performance as the foundation for the other responsibilities.

Question 21

Hallie has a tendency to be egocentric. She follows the rules of her company mainly to avoid punishment and to gain respect. When making decisions, she always focuses on what immediate benefits she will gain from an alternative. Which of the following levels of ethical development is illustrated by Hallie?

A)Preconventional morality
B)Postconventional morality
C)Conventional morality
D)Ethnocentric morality

Question 22

Mark is a friend of Ryan, who has been accused of attempt to murder. Even after knowing that Ryan is guilty, Mark lies when the police interrogates him. Mark believes that his behavior will benefit his family and him, and hence he is not concerned about the legality of his behavior. In the context of ethical theories, Mark displays _____.

A)act utilitarianism
B)rule utilitarianism
C)casuist relativism
D)moral absolutism

Question 23

Jordon is a sales manager. He operates at the postconventional level of morality while making ethical decisions. In this case, which of the following statements is true?

A)He will be concerned about how he sees and judges himself over the long run.
B)He will be concerned about how people will view his decisions.
C)He will be calculating and self-centered while making decisions and will look for immediate benefits.
D)He will make decisions that are not beneficial for most people.

Question 24

In the context of ethics in other countries, which of the following statements is true?

A)Corruption seldom occurs in international business dealings.
B)Usage of illegal payments is accepted and expected in various countries.
C)Ethical beliefs vary widely from culture to culture.
D)Prosecutions under the Foreign Corrupt Practices Act have significantly declined.

Question 25

Which of the following is a similarity between the deontological theory and moral relativism?

A)Both theories are concerned with the welfare of others.
B)Both theories may lead to actions that are not ethically correct.
C)Both theories are free from flaws.
D)Both theories compare a current ethical dilemma with similar examples and outcomes.

Question 26

Ronald Systems Inc. has developed a line of appliances that run on solar energy and cause no harm to the environment. Which of the following concepts is illustrated in this scenario?

A)Divestment
B)Opportunism
C)Green marketing
D)Cause-related marketing

Question 27

Which of the following statements is true of cause-related marketing?

A)It is the cooperative efforts of a for-profit firm and a nonprofit organization for mutual benefit.
B)It is a marketing relationship based on a straight donation.
C)It occurs when government agencies and nonprofit agencies launch social campaigns.
D)It seldom helps companies increase the sale of their products.

Question 28

In the context of the utilitarian ethical theory, uncertainty in predicting the future can lead to:

A)indulging the utilitarian in illegal behaviors.
B)boosting the public image of an organization.
C)protecting the welfare of people.
D)making the utilitarian look unethical as time passes.

Question 29

Which of the following statements is true of morals?

A)They are universal and seldom vary.
B)They are independent of factors such as culture and religion.
C)They reflect the laws and regulations that affect social and economic behavior.
D)They set absolute standards for good and bad that are enforced by the law.

Question 30

Which of the following statements is true of a utilitarian?

A)A utilitarian believes that arson is sometimes ethical and not always wrong.
B)A utilitarian will always keep his promises to a friend and follows the law.
C)A utilitarian is not necessarily concerned with the welfare of others.
D)A utilitarian compares similar predicted solutions and uses a point system.

Question 31

_____ is a business's concern for the long-range welfare of both the company and its relationship to the society within which it operates.

A)Preconventional morality
B)Moral relativism
C)Corporate self-dealing
D)Corporate social responsibility

Question 32

A person who follows the deontological theory:

A)chooses an alternative that adheres to laws and standards set by government without considering his or her obligations toward society.
B)adopts an approach that is concerned with the welfare of others.
C)chooses an alternative based on a comparison of his or her current ethical dilemma with examples of similar ethical dilemmas.
D)follows his or her obligations to another individual or society because upholding one's duty is what is considered ethically correct.

Question 33

Which of the following companies is an advocate of green marketing?

A)Poldoid Inc., a manufacturer of plastic products, uses biodegradable plastics to reduce the generation of hazardous wastes.
B)Harlose Brothers, an ice cream manufacturer, offers discounts on its ice creams during summer.
C)Magnira Inc., a textile company, uses cost-effective strategies to generate higher profits.
D)Laelle Corp.'s management believes that its employees are the most important and valuable resource of the company.

Question 34

In which of the following situations are marketers most likely to recognize a practice as unethical?

A)If the practice has very few benefits
B)If the practice is widely used throughout an organization
C)If the practice does not have any immediate consequences
D)If the practice is very likely to result in a harmful outcome

Question 35

Who among the following is most likely to disapprove of unethical practices more strongly than others?

A)Rebecca, who has noticed that most of her colleagues often use office supplies for personal use
B)Jason, an editor, who has noticed that all his managers agree that it is okay to plagiarize content to a small extent
C)Sarah, a manager, whose organization does not provide guidelines on ethical behavior
D)David, who noticed for the first time a colleague misrepresenting data in a report

Question 36

Which of the following is a similarity between act utilitarianism and rule utilitarianism?

A)Both theories advocate benefit for people through the fairest and most just means available.
B)Both theories compare a current ethical dilemma with similar examples.
C)Both theories have flaws associated with predicting the future.
D)Both theories are beliefs based on time-and-place ethics.

Question 37

A code of ethics:

A)should include operations schedule of day-to-day activities.
B)should be limited to a list of dos and don'ts.
C)should be in written form to avoid confusion.
D)should be kept confidential from a firm's employees.

Question 38

Which of the following statements is a feature of the Foreign Corrupt Practices Act (FCPA)?

A)It prohibits U.S.corporations from involving in international business dealings.
B)It prohibits U.S.corporations from making illegal payments to foreign governments.
C)It declines prosecutions against bribery.
D)It offers significant advantages to several U.S. businesses abroad.

Question 39

In the context of ethical theories, which of the following statements is true of moral relativism?

A)Moral activists believe that an act that is legally wrong is always ethically wrong.
B)It does not believe in absolute rules.
C)Moral relativists believe that the most beneficial choice for the most people is ethically correct.
D)It is a belief based on rules and individual obligations.

Question 40

Which of the following statements is true of the deontological theory and the utilitarian ethical theory?

A)The deontological theory considers the welfare of the people, while the utilitarian ethical theory does not consider the welfare of the people.
B)The deontological theory compares a current ethical dilemma, while the utilitarian ethical theory is a belief in time-and-place ethics.
C)The deontological theory states that people should adhere to their duties when analyzing an ethical dilemma, while the utilitarian ethical theory is founded on the ability to predict the consequences of an action.
D)The deontological theory states that the truth of a moral judgment is relative to the judging person or group, while the utilitarian ethical theory is a character trait valued as being good.

Question 41

Robin, a police sergeant, believes that bribing is illegal. He does not accept bribes irrespective of the amount of money. Robin displays _____.

A)act utilitarianism
B)rule utilitarianism
C)ethical relativism
D)moral relativism

Question 42

Which of the following statements is true of a code of ethics?

A)It is most effective when it is in the form of a long list of dos and don'ts.
B)It is an effective internal control of behavior.
C)It is typically drafted by government agencies.
D)It applies to top managers of an organization rather than its employees.

Question 43

The _____ states that people should adhere to their obligations and duties when analyzing an ethical dilemma.

A)deontological theory
B)moral relativism theory
C)casuist ethical theory
D)utilitarian ethical theory

Question 44

Mark is the sales manager of a reputed firm. Over his tenure, he has witnessed numerous ethical misconducts. In this case, he will observe less ethical misconduct when:

A)his coworkers have a strong ethical culture.
B)a code of ethics is absent in his firm.
C)organizational rules are absent in his firm.
D)the top managers of his firm have little control over organizational culture.

Question 45

According to the three levels of ethical development, which of the following statements is true of conventional morality?

A)It is the most basic level of ethical development.
B)A person at this level performs unethical and manipulative actions.
C)It is predominantly characterized by an egocentric viewpoint of an individual.
D)A person at this level is concerned how an action will be viewed by others.

Question 46

Differentiate between the casuist ethical theory and moral relativism.

Question 47

Briefly explain the factors that tend to influence ethical decision making and judgments.

Question 48

Define the pyramid of corporate social responsibility and list its components.

Question 49

A business firm is collaborating with a nonprofit organization in an initiative to provide public relations training to working professionals throughout a country. Twenty percent of the fee that the working professionals would pay is given to the nonprofit organization. The money is then used by the nonprofit organization to fund the training program. This scenario illustrates _____.

A)relationship marketing
B)effect-related marketing
C)cause-related marketing
D)green marketing

Question 50

Which of the following statements is true about the pyramid of corporate social responsibility?

A)It states that philanthropy should be the most important function of a corporation.
B)It states that ethical responsibilities of a corporation provide the basis for other responsibilities.
C)It states that if a company does not make a profit, then the other responsibilities are moot.
D)It states that social responsibility efforts should be focused on the external and not the internal stakeholders of a corporation.

Question 51

Explain cause-related marketing.

Question 52

Allan voices against those who litter on roads because he believes that society expects cleanliness from people. This illustrates _____.

A)preconventional morality
B)utilitarianism
C)moral relativism
D)conventional morality

Question 53

According to the levels of ethical development, at the preconventional morality level, people:

A)focus on the long-term results of their actions.
B)tend to have an egocentric orientation.
C)tend to focus on adhering to social norms and laws.
D)focus on being loyal to an organization.

Question 54

The _____ compares a current ethical dilemma with examples of similar ethical dilemmas and their outcomes.

A)deontological theory
B)moral relativism theory
C)casuist ethical theory
D)utilitarian ethical theory

Question 55

In the context of the determinants of a civil society, _____ involves the voluntary acceptance of standards established by nongovernmental entities.

A)self-regulation
B)media
C)cause marketing
D)green marketing

Question 56

List and describe the three levels of ethical development.

Question 57

In the context of corporate social responsibility, which of the following statements is true of stakeholder theory?

A)It states that companies should only focus on increasing shareholder wealth.
B)It states that social responsibility is best carried out by government agencies.
C)It states that a company is expected to be a good citizen in its community.
D)It states that the top management should not be involved in corporate social responsibility.

Question 58

Explain green marketing and outline its impact.

Question 59

Stakeholder theory of corporate social responsibility:

A)considers the management of an organization as one of the stakeholders.
B)excludes customers and government agencies from the list of stakeholders.
C)does not consider the owners of an organization as the stakeholders.
D)pays attention to the unaffected stakeholder in every aspect of a firm's operation.

Question 60

Which of the following statements is an argument for corporate social responsibility?

A)The primary responsibility of social welfare rests with governments and not business firms.
B)The free market should decide what is best for the world.
C)Businesses have resources, so businesses should be given the chance to solve social problems.
D)Businesses never aid to social problems as the primary objective of businesses is making profits.