Question 1

Most firms that experience ethical or legal problems actually have a code of conduct or an ethical compliance program in place. Why is it that these firms can still have ethical problems despite having a code of ethics or compliance program?

Accepted Answer

A)  Their codes typically don't cover high risk issues. 
B)  Their codes are typically written by consultants outside the firm. 
C)  Their codes are typically not integrated into daily decision making. 
D)  Their codes are written with no input from employees or customers. 
E)  Their codes are mandated by regulation rather than originating from within the firm.

Question 2

Greenwashing is a promotion-related ethical issue.

Accepted Answer

A) True 
 B)False

Question 3

Why is the connection between marketing ethics and leadership so important in nurturing a strong ethical culture?

Accepted Answer

A)  Employees look to the leader to enforce the ethical code of conduct. 
B)  Employees expect the leader to punish unethical behaviors. 
C)  Employees look to the leader to ensure that the firm is in legal compliance. 
D)  Employees look to the leader as a model of acceptable behavior. 
E)  Employees expect the leader to clearly specify in writing the high-risk activities in the firm's daily operations.

Question 4

The role of ethics in marketing strategy can be distilled into one word. Without __________, marketers run the risk of alienating stakeholders and inviting financial ruin.

Accepted Answer

A)  reputation 
B)  trust 
C)  responsibility 
D)  sustainability 
E)  verification

Question 5

Codes of conduct try to address every ethical issue the company is likely to face.

Accepted Answer

A) True 
 B)False

Question 6

Perhaps the best known self-regulatory association is the Better Business Bureau.

Accepted Answer

A) True 
 B)False

Question 7

Which activity is part of a stakeholder orientation? ​

Accepted Answer

A)  ​The assessment and improvement of business strategies, economic sectors, work practices, technologies, and lifestyles--all while maintaining the natural environment. 
B)  ​The organization-wide generation of data about stakeholder groups and assessment of the firm's effects on these groups 
C)  ​The incorporation of secondary stakeholders into a firm's marketing strategy 
D)  ​The development of a program that takes social issues into account 
E)  ​The marketing of the organization to a wide variety of stakeholders

Question 8

Identify and discuss the many challenges of being ethical and socially responsible. Focus on challenges at both the individual (employee) level and the managerial level.

Accepted Answer

The answer of Identify and discuss the many challenges of...

Question 9

Patagonia has adopted a ________ approach to environmental issues, a synergistic use of resources to address key stakeholders' interests and achieve both organizational and societal benefits.

Accepted Answer

A)  ​social entrepreneurship 
B)  ​cause-related marketing 
C)  ​strategic philanthropy 
D)  ​social enterprise 
E)  ​market orientation

Question 10

With respect to regulating marketing ethics, a key advantage of self-regulatory programs like the Better Business Bureau is the fact that they are:

Accepted Answer

A)  less costly and more practical to implement. 
B)  typically stricter than government regulations. 
C)  easier to enforce. 
D)  tied to state and local regulatory agencies. 
E)  All of the above.

Question 11

Being economically responsible is the most basic social responsibility of any business. This responsibility has the most immediate effect on:

Accepted Answer

A)  customers. 
B)  shareholders. 
C)  the government. 
D)  the community. 
E)  all stakeholders.

Question 12

The principles and standards that define acceptable marketing conduct as determined by the public, government regulators, private-interest groups, competitors, and the firm itself are termed:

Accepted Answer

A)  marketing standards 
B)  societal standards 
C)  codes of conduct 
D)  marketing ethics 
E)  social responsibility

Question 13

Many large firms, such as Walmart, Home Depot, Lowe's, and Barnes & Noble, have been accused of predatory pricing because their business practices have put many local, mom-and-pop firms out of business. In reality, these large firms are not necessarily guilty of predatory pricing. Why?

Accepted Answer

A)  Because the courts have found little evidence that predatory pricing has occurred. 
B)  Because the weak marketing activities of the local firms are to blame. 
C)  Because the large firms have efficient cost structures and lower variable costs. 
D)  Because the large firms are more guilty of superficial discounting than predatory pricing. 
E)  Because the large firms simply have stronger brand equity than local firms.

Question 14

__________ is a broad concept that relates to an organization's obligation to maximize its positive impact on society while minimizing its negative impact.

Accepted Answer

A)  Marketing ethics 
B)  Corporate philanthropy 
C)  Social responsibility 
D)  Strategic philanthropy 
E)  Social engineering

Question 15

Some companies choose to engage in a deceptive marketing practice called __________, which involves misleading consumers into thinking that a product is more environmentally friendly than it actually is.

Accepted Answer

A)  environmentalism 
B)  green marketing 
C)  LEED 
D)  eco-lableling 
E)  greenwashing

Question 16

Social entrepreneurship is similar to strategic philanthropy, but a major difference is that companies' social entrepreneurship programs are not the primary purpose of the organizations or reason for their existence.​

Accepted Answer

A) True 
 B)False

Question 17

Why have ethics and social responsibility become so important in recent years? Why is it important that marketing ethics be incorporated into the firm's strategic plan?

Accepted Answer

The answer of Why have ethics and social responsibility become...

Question 18

_________ occurs when a firm advertises a sale price as a reduction below the normal price when it is not the case.

Accepted Answer

A)  ​Predatory pricing 
B)  ​Price fixing 
C)  ​Bait and switch pricing 
D)  ​Superficial discounting 
E)  ​Price discrimination

Question 19

Each of the following is a potential product-related ethical issue EXCEPT:

Accepted Answer

A)  Failure to disclose potential hazards or defects 
B)  Misleading warranties 
C)  Invasion of privacy 
D)  Counterfeit goods 
E)  Quality/Design issues

Question 20

Channel stuffing is an ethical issue related to the supply chain.

Accepted Answer

A) True 
 B)False

Exam 8: Ethics and Social Responsibility in Marketing Strategy

Most firms that experience ethical or legal problems actually have a code of conduct or an ethical compliance program in place. Why is it that these firms can still have ethical problems despite having a code of ethics or compliance program?

Greenwashing is a promotion-related ethical issue.

Why is the connection between marketing ethics and leadership so important in nurturing a strong ethical culture?

The role of ethics in marketing strategy can be distilled into one word. Without __________, marketers run the risk of alienating stakeholders and inviting financial ruin.

Codes of conduct try to address every ethical issue the company is likely to face.

Perhaps the best known self-regulatory association is the Better Business Bureau.

Which activity is part of a stakeholder orientation? ​

Identify and discuss the many challenges of being ethical and socially responsible. Focus on challenges at both the individual (employee) level and the managerial level.

Patagonia has adopted a ________ approach to environmental issues, a synergistic use of resources to address key stakeholders' interests and achieve both organizational and societal benefits.

With respect to regulating marketing ethics, a key advantage of self-regulatory programs like the Better Business Bureau is the fact that they are:

Being economically responsible is the most basic social responsibility of any business. This responsibility has the most immediate effect on:

The principles and standards that define acceptable marketing conduct as determined by the public, government regulators, private-interest groups, competitors, and the firm itself are termed:

Many large firms, such as Walmart, Home Depot, Lowe's, and Barnes & Noble, have been accused of predatory pricing because their business practices have put many local, mom-and-pop firms out of business. In reality, these large firms are not necessarily guilty of predatory pricing. Why?

__________ is a broad concept that relates to an organization's obligation to maximize its positive impact on society while minimizing its negative impact.

Some companies choose to engage in a deceptive marketing practice called __________, which involves misleading consumers into thinking that a product is more environmentally friendly than it actually is.

Social entrepreneurship is similar to strategic philanthropy, but a major difference is that companies' social entrepreneurship programs are not the primary purpose of the organizations or reason for their existence.​

Why have ethics and social responsibility become so important in recent years? Why is it important that marketing ethics be incorporated into the firm's strategic plan?

_________ occurs when a firm advertises a sale price as a reduction below the normal price when it is not the case.

Each of the following is a potential product-related ethical issue EXCEPT:

Channel stuffing is an ethical issue related to the supply chain.

Which activity is part of a stakeholder orientation?

Social entrepreneurship is similar to strategic philanthropy, but a major difference is that companies' social entrepreneurship programs are not the primary purpose of the organizations or reason for their existence.