Deck 4: Social Responsibility and Ethics in Marketing

Question 1

Companies that are considered to be good corporate citizens and consider the diverse perspectives of different groups affected by their operations are said to have a ____ orientation.

A)marketing
B)sales
C)production
D)stakeholder
E)citizen

Answer 1

D

Question 2

Any constituent who has a claim in some aspect of a company's products, operations, markets, industry, or outcomes is known as a(n)

A)shareholder.
B)customer.
C)employee.
D)manager.
E)stakeholder.

Answer 2

E

Question 3

The RedCap Corporation is committed to social responsibility. It is looking for a new shipping partner and has found LogiSpec, one that seems to be perfect since it employs individuals with disabilities, contributes a portion of profit to the local school system, and allows its employees to work on flex-time. RedCap is very interested in LogiSpec's attention to social responsibility. However, its pricing is almost 12% higher than other shippers RedCap is considering. The fact that RedCaps' decision has to balance the company's desire for social responsibility and investors' desires for profits is an example of a(n) ____ responsibility.

A)ethical
B)legal
C)cost
D)philanthropic
E)economic

Answer 3

E

Question 4

The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders is called

A)marketing citizenship.
B)social responsibility.
C)stakeholders.
D)cause-related marketing.
E)strategic philanthropy.

Question 5

Kaitlyn understands that even small businesses like her local catering business have certain responsibilities to society. She knows that she must abide by the laws that apply to her business and try to make a profit. What are the other obligations Kaitlyn should know?

A)Ethical and moral
B)Economic and ethical
C)Philanthropic and legal
D)Environmental and ethical
E)Ethical and philanthropic

Question 6

Define and describe the importance of social responsibility in marketing.

Question 7

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 2 days. This example illustrates the positive consequences of

A)social responsibility.
B)corporate benevolence.
C)green marketing.
D)ethical responsibility.
E)economic responsibility.

Question 8

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)long-term well-being of the natural environment
B)focus primarily on the external environment of the company
C)consider individuals as part of the natural environment
D)adopting more eco-friendly business practices
E)improving technologies that protect the natural environment

Question 9

Which of the following is not a dimension of social responsibility and marketing citizenship?

A)Economic
B)Ethical
C)Legal
D)Technological
E)Philanthropic

Question 10

Socially responsible business practices have provided all of the following benefits except

A)creating goodwill toward the organization.
B)attracting employees.
C)reducing marketing costs.
D)generating publicity for the firm.
E)positively impacting local communities.

Question 11

Describe the factors that influence the ethical decision-making process and identify ways to improve ethical decisions in marketing.

Question 12

How can a code of conduct encourage ethical behavior in an organization?

Question 13

Which of the following statements about social responsibility is correct?

A)Social responsibility dimensions do not include philanthropic concerns.
B)Social responsibility does not deal with the total effect of all marketing decisions on society.
C)Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society.
D)Social responsibility dimensions do not include economic concerns.
E)Social responsibility refers to principles and standards that define acceptable conduct in marketing as determined by various stakeholders.

Question 14

Which of the following is not one of the four dimensions of social responsibility presented in your text?

A)Consumerism
B)Philanthropic
C)Ethical
D)Economic
E)Legal

Question 15

What are some ways to determine if an activity is ethical or socially responsible?

Question 16

If Hefty Bags expresses concern that its products are having too great an impact on the pollution of ground water under landfills, this concern is directly related to the firm's

A)social responsibility.
B)marketing concept.
C)legal responsibility.
D)ethical responsibility.
E)corporate benevolence.

Question 17

Define marketing citizenship and describe the impact of its dimensions on organizations.

Question 18

Discuss some of the important ethical issues in marketing.

Question 19

Discuss the difference between social responsibility, ethics, and sustainability in marketing.

Question 20

Provide an overview of important social responsibility issues in marketing, and indicate their impact on marketing decisions.

Question 21

McDonald's supports and funds Ronald McDonald houses for the families of terminally-ill children to stay in to be near their loved ones. McDonald's action demonstrates the fulfillment of ____ responsibility.

A)legal
B)society
C)philanthropic
D)economic
E)ethical

Question 22

According to the text, marketing ethics refers to principles and standards that define

A)improper behavior in marketing.
B)acceptable conduct in society.
C)improper behavior in business.
D)acceptable conduct in marketing.
E)acceptable conduct in general.

Question 23

If Starbucks were to donate 5 percent of every coffee purchase to shelters for victims of domestic abuse for one month, this would be an example of

A)strategic philanthropy.
B)ethical responsibility.
C)economic responsibility.
D)green marketing.
E)cause-related marketing.

Question 24

Which of the following is a primary difference between cause-related marketing and strategic philanthropy?

A)Cause-related marketing is short term only while strategic philanthropy is an ongoing approach that lasts for years or even decades.
B)Strategic philanthropy fulfills a firm's primary social responsibilities while cause-related marketing does not.
C)Cause-related marketing is unlikely to have a positive effect on society while strategic philanthropy always benefits society.
D)Strategic philanthropy can take on both a financial and nonfinancial format while cause-related marketing only involves financial contributions.
E)Customers are likely to feel good about themselves when supporting a cause-related marketing campaign but are unlikely to notice strategic philanthropy.

Question 25

The Transportation Division of the GE Corporation is located in a small city which has limited economic growth at this time. Due to the condition of the local school system, GE contributed $2 million to repair and revive it, stating that GE believed in education for the community. This action would imply that GE is in which level of the pyramid of social responsibility?

A)ethical
B)legal
C)cost
D)philanthropic
E)economic

Question 26

Marketing ethics

A)refers to laws and regulations that govern marketing.
B)refers to principles and standards that define acceptable conduct in marketing.
C)maximizes an organization's positive impact and minimizes its negative impact on society.
D)is most important for advertising agencies.
E)applies well-defined rules for appropriate marketing behavior.

Question 27

The practice of linking a firm's product marketing to a particular social cause on an ongoing or short-term basis is known as

A)economic responsibility.
B)social responsibility.
C)ethical marketing.
D)cause-related marketing.
E)corporate benevolence.

Question 28

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

A)philanthropic
B)legal
C)ethical
D)economic
E)social

Question 29

Instead of addressing the question ____, many environmentalists and marketers believe the question should be ____.

A)"How can we reduce costs?"; "How can we keep prices low?"
B)"Where should we dispose of waste?"; "How can we protect society?"
C)"How can we make products better?"; "How can we reduce waste?"
D)"How can environmentalism be profitable?"; "Where is the benefit of environmental efforts?"
E)"What should we do with our waste?"; "How can we produce products without waste?"

Question 30

Which of the following is the best example of strategic philanthropy for Staples, the large office supply chain?

A)Donating money to help fight illiteracy of both adults and children
B)Having employees volunteer at a charity of their choice two hours a week
C)Giving a portion of its profits in August to support charter schools
D)Offering discounts to large corporations on their office supplies
E)Providing low-income families with school supplies and computer training

Question 31

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)offer the lowest price
B)be profitable
C)obey their customers
D)provide the largest selection possible
E)pay employees more than minimum wage

Question 32

A business that contributes resources to the community to improve the quality of life is taking on a(n) ____ responsibility.

A)ethical
B)legal
C)cost
D)philanthropic
E)economic

Question 33

The most basic principles of marketing ethics are

A)philanthropic responsibilities.
B)economic responsibilities.
C)universally accepted behaviors.
D)written as laws and regulations.
E)included in the marketing code of ethics.

Question 34

As a firm fulfills its basic economic responsibilities, it must simultaneously

A)treat its employees equitably.
B)follow a code of business ethics.
C)utilize green marketing techniques.
D)have a philanthropic focus.
E)obey laws and regulations.

Question 35

StarKist Tuna has frequently extolled its dolphin-safe methods of catching tuna. This is an example of

A)community relations.
B)cause-related marketing
C)sustainability marketing.
D)strategic philanthropy.
E)consumerism.

Question 36

Which of the following is not one of the four objectives that environmentalists believe companies should implement in order to sustain the natural environment?

A)Eliminate the concept of waste.
B)Reinvent the concept of a product.
C)Force consumers to recycle products.
D)Make prices reflect the true cost of a product.
E)Make environmentalism profitable.

Question 37

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?

A)The natural environment
B)Consumerism
C)Marketing ethics
D)Legal obligations
E)Community relations

Question 38

Home Depot's synergistic use of organizational core competencies and resources to address key stakeholders' interests and achieve both social initiatives and its business goals is an example of

A)strategic philanthropy.
B)strategic ethics.
C)cause-related marketing.
D)strategic marketing.
E)environmental philanthropy.

Question 39

In Europe, companies can voluntarily apply for a designation to indicate that their product is less harmful to the environment than competing products. This label is known as the

A)Green Marketing Stamp.
B)Eco-label.
C)Forest Stewardship Seal.
D)Better Product Project.
E)Good Housekeeping Seal.

Question 40

DoneRight Inc. is a very profitable automobile repair shop. The company is well known for its great service and involvement in the community, but it fails to properly dispose of its used oil as outlined in environmental regulations. DoneRight is failing in its ____ responsibilities.

A)legal
B)ethical
C)economic
D)philanthropic
E)strategic

Question 41

Raleigh Wood Products produces hardwood flooring, paneling, and other furniture-grade components. Raleigh Wood traditionally has ground up its wood waste to make mulch, however, it has been brought to Raleigh's attention that there are chemicals from the paint and coloring process that may be harmful to the water table. Raleigh has now been looking for ways to use its wood waste other than in mulch. Environmentalists would likely

A)appreciate that Raleigh Wood uses its leftover product, but rather they find a way to reduce waste altogether.
B)encourage Raleigh Wood to find another process for coloring and painting.
C)encourage the local government to levy a tax on Raleigh Wood for its contamination of the water system.
D)lobby against Raleigh Wood for its wasteful practices.
E)encourage Raleigh Wood to find materials other than wood for its products.

Question 42

What do environmentalists set as an objective for profitability?

A)Companies should surpass the strictest environmental standards even if it negatively affects profitability.
B)Companies will never be profitable if they comply with environmental standards so taxpayers must subsidize all production.
C)Profitability should not be a concern when addressing issues of environmental importance.
D)Environmentalism should be made profitable, and companies attempting to protect the environment should not have to compete with those harming it in the marketplace.
E)Companies will be more profitable if they work hard to protect the environment because consumers will reward their efforts through loyalty.

Question 43

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

A)Durable goods, natural resources, and unsalables
B)Nondurable goods, durable goods, and consumables
C)Consumables, durable goods, and unsalables
D)Environmental goods, recyclables, and salables
E)Permanents, temporaries, and renewable resources

Question 44

According to the consumer bill of rights, the right to be informed means that

A)consumers' interests will receive full and sympathetic consideration in the formulation of government policy.
B)consumers should have access to a variety of goods and services at competitive prices.
C)consumers should have access to and the opportunity to review all relevant information about a product before buying it.
D)marketers have an obligation not to knowingly market a product that could harm consumers.
E)consumers should be told when the quality of a product has changed.

Question 45

Sharese wants to buy a new couch, but there is only one place in her town that sells them, and she lives in an isolated area. Sharese most likely feels her consumer right to ____ has been violated.

A)choose
B)be heard
C)safety
D)recourse
E)be informed

Question 46

Who of the following is a famous consumer activist?

A)Ralph Nader
B)Upton Sinclair
C)Benjamin Franklin
D)Abraham Maslow
E)Adam Smith

Question 47

Angela organized a boycott of a local restaurant because of the owner's obvious prejudicial treatment of Hispanics. Angela's action would most likely be called

A)lobbying.
B)a public service announcement.
C)the right to be informed.
D)a social demonstration.
E)consumerism.

Question 48

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

A)be heard.
B)choose.
C)be informed.
D)safety.
E)listen.

Question 49

Product testing for reliability and quality helps to ensure a consumer's right to

A)be heard.
B)be informed.
C)choose.
D)performance.
E)safety.

Question 50

How would marketers most likely benefit from the consumer's right to be heard?

A)Consumers will also tell others about their bad experience with the company.
B)The company can use the information to make its products better.
C)They gain valuable information about their competitors.
D)Consumers are more loyal to companies who have wronged them.
E)More information about the products can be posted online.

Question 51

Various stakeholders and ____ determine the acceptable standards of conduct involving ethics.

A)the organizations' ethical climate
B)the federal government
C)various self-regulating bodies
D)governmental agencies
E)the industry leaders' ethics

Question 52

As far as prices are concerned, environmentalists believe prices should

A)be based on the cost of materials used to manufacture the product.
B)reflect the direct cost as well as the cost of air, water, and soil used.
C)be determined by the supply and demand of products in the marketplace.
D)include a large tax to defray the costs of environmental compliance.
E)be based on the renewability of the resources used to make the product.

Question 53

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

A)inform, and the right be chosen.
B)consumer education, and the right to honesty.
C)choose, and the right to be informed.
D)redress, and the right to choose.
E)honesty, and the right to redress.

Question 54

Synergy Tech has a program that offers consumers money back for their old Synergy computers so that the materials used to make the computer can be retained within a closed system. Which of the primary environmental goals does Synergy's program address?

A)Eliminate the concept of waste.
B)Reinvent the concept of a product.
C)Make environmentalism profitable.
D)Make prices reflect the cost.
E)Create fewer durable goods.

Question 55

Consumerism is

A)the efforts of independent individuals, groups, and organizations to protect the rights of consumers.
B)President John F. Kennedy's consumer bill of rights.
C)marketers' efforts to contribute to the satisfaction and growth of the communities in which they operate.
D)the right to be informed.
E)the specific development, pricing, promotion, and distribution of products that do not harm the environment.

Question 56

According to President Kennedy's consumer bill of rights, the right to choose means that

A)consumers' interests will receive full and sympathetic consideration in the formulation of government policy.
B)consumers should have access to a variety of products and services at competitive prices.
C)consumers should have access to and the opportunity to review all relevant information about a product before buying it.
D)marketers have an obligation not to knowingly market a product that could harm consumers.
E)consumers should be able to buy products at prices they are willing to pay.

Question 57

Target's Take Charge of Education program donates 1 percent of a customer's total purchase to the school of his or her choice. What social responsibility issue does this program address?

A)Consumerism
B)Marketing ethics
C)Community relations
D)The natural environment
E)Promotion

Question 58

Several mothers in Atlanta wanted to get the message to their city government that they were not happy with the nutritional quality of the food the city's school system served their children, especially at the current cost for a lunch. One of the mothers suggested they organize a protest at City Hall to get the lawmakers' attention. Another mother in the group suggested they all use their smart phones to go on Twitter and let others know the time and date of the protest. This small group was surprised at the number of other parents who were equally concerned about the food program, and so this small group decided to organize a flash mob. Over two hundred people showed up in a flash mob in front of City Hall - many of them with signs and banners. These mothers and other individuals are engaging in

A)a publicity stunt.
B)their right to know.
C)consumerism.
D)lobbying.
E)political action.

Question 59

Who drafted the Consumer Bill of Rights?

A)Bill Clinton
B)John F. Kennedy
C)Ralph Nader
D)Ronald Reagan
E)George W. Bush

Question 60

Warnings on television commercials for prescription drugs include a list of sometimes grotesque side effects that are possible when taking that particular drug. The consumer right to ____ most applies to these commercials.

A)know
B)safety
C)be heard
D)choose
E)be informed

Question 61

Since most ethical choices pertaining to marketing decisions are jointly made, an organization must ensure the ____ reflects the organization's values, beliefs and norms.

A)code of ethics
B)code of conduct
C)enforcement of ethical standards and screening techniques
D)employee self-regulation and screening procedures
E)organizational or corporate culture

Question 62

At times, large retailers such as Walmart may be accused of coercion in dealing with intermediaries because of the amount of power and control these large companies have over many of their suppliers. This is most potentially a ____ related ethical issue.

A)promotion
B)pricing
C)culture
D)product
E)distribution

Question 63

All of the following are factors that influence the ethical decision-making process except

A)opportunity.
B)individual factors.
C)organizational culture.
D)organizational pressure.
E)salary or wages.

Question 64

Reese has recently joined PharmaTec, a large pharmaceutical firm, as a sales representative. During his interview, he was surprised that no one wanted to talk about why the previous sales rep suddenly left the company. However, today he has just been "briefed" on the recent lawsuit one of the physician's has filed against PharmaTec concerning the lack of information he received from the company about the negative effects of one of its cholesterol drugs. Reese's sales manager has demanded that if he comes across any documentation in the former sales representative's office about visits with the physician, that Reece is to not say anything to anyone and notify the manager immediately. Reese certainly doesn't want to jeopardize his new, and potentially profitable, job. He has identified four possible courses of action he could take. He knows he should evaluate each possible action with which of the following criteria in order to choose the one most appropriate?

A)its level of positive or negative impact on PharmaTec's reputation
B)its potential to increase (or decrease) PharmaTec's profit
C)whether the action is inherently right or wrong
D)whether he will be appreciated or unappreciated by his coworkers afterward
E)whether it will be courageous or cowardly on his part

Question 65

____ ethical issues generally surface when companies fail to disclose risks associated with a product or information regarding its function, value, or use.

A)Promotion-related
B)Distribution
C)Corporate
D)Product-related
E)Safety

Question 66

Pharmaceutical companies have at times been accused of acting unethically by taking advantage of customers in the area of

A)promotion.
B)pricing.
C)distribution.
D)product.
E)manufacturing.

Question 67

Distribution-related ethical issues arise when marketers

A)do not provide intermediaries with enough information about how a product is priced.
B)force channel intermediaries to behave in a specific manner.
C)bribe salespeople to push one product over another.
D)fail to disclose information to consumers about the risks associated with using a product.
E)distribute a product that is very similar to a competing product.

Question 68

According to the text, which of the following is not one of the factors that influence the ethical decision-making processes in a marketing organization?

A)Organizational culture
B)Attitudes toward religion
C)Opportunity
D)Individual factors
E)Organizational pressure

Question 69

Ethical standards for acceptable conduct for a company should

A)be clearly dictated by top management and enforced by all management staff.
B)consider only the point of view of the customers and the employees.
C)reflect the desires of the company's employees for a quality working environment.
D)be based on company, industry, government, customer, and society viewpoints.
E)be derived from federal, state, and local laws and regulatory agencies.

Question 70

Product-related ethical issues arise when marketers

A)provide consumers with inadequate information about how a product is priced.
B)force channel intermediaries to behave in a specific manner.
C)bribe salespeople to push one product over another.
D)fail to disclose information to consumers about the risks associated with using a product.
E)manufacture a product that is very similar to a competing product.

Question 71

Three factors that influence the ethical decision-making process in marketing include

A)individual factors, organizational culture, and peer influence.
B)opportunity, personal moral philosophies, and situational variables.
C)individual factors, organizational factors, and opportunity.
D)social forces, laws, and organizational factors.
E)peer influences, personal moral philosophies, and opportunity.

Question 72

Bridgewater, Inc. produces its industrial components in several developing countries outside the United States. The majority of Bridgewater's customers are in the U.S. and Canada. One of Bridgewater's customers is Craft Care, who uses Bridgewater components in the production of child car seats. Recently, there was a recall of Craft Care's car seats due to serious injuries, which the company has traced back to Bridgewater's components. If Bridgewater knew about the faulty components, but failed to notify Craft Care, it would have been engaging in unethical behavior with regard to which of the following marketing issue areas?

A)planning and strategy
B)distribution-related
C)promotion-related
D)product-related
E)quality-related

Question 73

A cereal company advertises that its newly launched product can lower cholesterol although the company cannot provide evidence to substantiate this claim. This situation involves an ethical issue related to which element of the marketing mix?

A)Product
B)Pricing
C)Promotion
D)Distribution
E)Production

Question 74

​The way to deal with ethical issues is proactively

A)right before the problem is made public
B)after the problem has received extensive media attention
C)immediately after the problem is discovered
D)when lawsuits are brought against the company
E)during the strategic planning process

Question 75

A marketing ethics issue likely exists when

A)company members disagree about a marketing decision.
B)an activity does not benefit the organization but benefits the environment.
C)an activity results in increased prices for the consumer.
D)a consumer is dissatisfied with a marketing decision.
E)an individual or organization must choose from among several actions that must be evaluated as right or wrong.

Question 76

What are some of the common price-related ethical issues?

A)Misleading advertising and predatory pricing
B)Additional discounts and price fixing
C)Not disclosing the full price and value-pricing
D)Predatory pricing and price fixing
E)Loss leaders and deceptive pricing

Question 77

Ethical choices in business situations are most often made

A)by top managers.
B)by front-line employees.
C)jointly in work groups and committees.
D)in consultation with family, friends, and coworkers.
E)individually.

Question 78

At his new job, Carlos 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. Carlos has made several observations about the

A)organizational structure.
B)ethical climate.
C)morale and performance programs.
D)codes of conduct.
E)corporate culture.

Question 79

When a purchasing agent for Intel is offered a bribe by a silicon manufacturer salesperson,

A)a promotion-related ethical issue has been created.
B)the purchasing agent is free to accept the bribe without consequences.
C)an ethical issue primarily related to the pricing of products exists.
D)there is an ethical dilemma for the purchasing agent that is product related.
E)no ethical issue exists under these circumstances.

Question 80

An ethical issue is

A)likely to arise when an employee's moral philosophy is consistent with the organization's expectations of the employee's behavior.
B)an identifiable problem, situation, or opportunity requiring an individual to choose from among several actions that must be evaluated as right or wrong.
C)most often found in personal selling situations.
D)easily resolved by consulting written laws and regulations.
E)characterized by a blatant disregard for human rights and equality.