Chapter Four

Acme Corp. is adopting a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities that its stakeholders expect of it. This best describes ________________.
a. social responsibility
b. cause-related marketing
c

Marketing citizenship

Which of the following promises consumers fair treatment when they complain to marketers about products?
a. the right to choose
b. the right to be informed
c. the right to lower prices
d. the right to be heard
e. the right to safety

The right to be heard

Which of the following is the potential for the long-term well-being of the natural environment, including all biological, as well as the interaction among nature and individuals, organizations, and business strategies?
a. sustainability
b. ethics
c. caus

Sustaibability

Research into marketing ethics suggests that the ________ associated with an issue, the more likely it will be recognized as an ethics issue and the more important it will be in making an ethical decision.
a. greater the value
b. greater the publicity
c.

Greater the consequences

An ethical issue in the area of promotion is _______, which occurs when products are promoted as being more environmentally friendly than they really are.
a. greenwashing
b. cause-related marketing
c. sustainability
d. green marketing
e. product recalls

Greenwashing

When an ethical issue arises in the supply chain, which of the following is most likely to be held accountable for misconduct?
a. the channel member managing the product
b. the channel member selling the product
c. the channel member making the product
d.

The channel member managing the product

Acme Corp. is striving to foster a set of ethical values, beliefs, goals, norms, and rituals that members of an organization share. This is best described as _______________.
a. organizational culture
b. code of conduct
c. opportunity
d. marketing citizen

Organizational culture

Ethical choices in marketing are most often made _______________.
a. at church
b. in a vacuum
c. at home
d. jointly
e. individually

Jointly

Which of the following is often a better predictor of unethical activities than are personal values?
a. organizational relationships
b. opportunity
c. the CEO
d. organizational pressure
e. individual factors

Opportunity

In the absence of ethics and compliance programs, employees will generally make decisions based primarily on their __________________.
a. observations of how coworkers and superiors behave
b. observations of how society behaves
c. assessment of the law
d.

Observations of how coworkers and superiors behave

Which of the following do codes of ethics NOT do?
a. They help marketers deal with ethical issues or dilemmas that develop in daily operations by prescribing or limiting specific activities.
b. They promote ethical behavior by reducing opportunities for u

They take every situation into account.

According to your text, a well-implemented _______ and a strong ________ result in the greatest decrease in ethical risks for an organization.
a. ethics program; corporate culture
b. corporate culture; opportunity
c. regulatory system; corporate culture
d

Ethics program; corporate culture

Ethics relates to individual and group decisions whereas social responsibility ________________.
a. links products to a particular social cause on an ongoing or short-term basis
b. considers the diverse perspectives of stakeholders in their daily operatio

Deals with the total effect of marketing decisions on society

If other organizational members approve of the activity and it is legal and customary within the industry, chances are that the activity is ________ from both an ethical and a social responsibility perspective.
a. moral
b. acceptable
c. unacceptable
d. im

Acceptable

A(n) _______ is an identifiable problem, situation, or opportunity that requires an individual or organization to choose from among several actions that must be evaluated as right or wrong, ethical or unethical.

Ethical issue

Conditions that limit barriers or provide rewards are known as

Opportunity

______ occur(s) when companies ask customers to return products found to be defective.

Product recalls

Janelle manages a small pharmacy in Dallas, Texas. Recently, she started an initiative to help give low-income individuals steep discounts on expensive drugs. The company is losing some revenue by charging these discounts, but it has helped the pharmacy g

Philanthropic

Janelle manages a small pharmacy in Dallas, Texas. Recently, she started an initiative to help give low-income individuals steep discounts on expensive drugs. The company is losing some revenue by charging these discounts, but it has helped the pharmacy g

Philanthropic; ethical

Janelle manages a small pharmacy in Dallas, Texas. Recently, she started an initiative to help give low-income individuals steep discounts on expensive drugs. The company is losing some revenue by charging these discounts, but it has helped the pharmacy g

Philanthropic; legal

Principles and standards that define acceptable conduct in marketing as determined by various stakeholders are known as ___________________.
a. cause-related marketing
b. marketing ethics
c. marketing citizenship
d. social responsibility
e. strategic phil

Marketing ethics

Every year Yoplait hosts events to raise money Susan G. Komen, the largest breast cancer organization in the United States. Susan G. Komen works to provide breast cancer education, social services, research, and more. These events that Yoplait funds every

Cause-related marketing

The government has provided tax credits toward individuals who purchase electric vehicles. This is an attempt to do which of the following?
a. make prices reflect the cost
b. eliminate the concept of waste
c. reduce the production of unsaleables
d. reinve

Make prices reflect the cost

A lawsuit was filed against Naked Juice because of its claims that it is "natural." The lawsuit claimed that because it contained synthetic ingredients, it did not fit the definition of "natural" and was therefore misleading. Naked Juice agreed to drop th

Be informed

Shirley is a salesperson at a pharmaceutical firm. She has been tasked with selling a new drug. One doctor looks like a great prospect. He is highly interested in trying out the drug and has requested some samples. However, he has asked Shirley to list an

Promotion

Joseph works in accounting. He was told by his supervisor that it was necessary to change some of the accounting to make company performance look better. Joseph objected, so the CEO got involved and told Joseph that it was necessary to keep the firm afloa

Individual values

At Shania's job, promptness is heavily stressed. However, Shania's supervisor never punishes anyone for being tardy, no matter how late they come in. Shania therefore takes advantage of this to sleep in an extra hour each day. This failure on the part of

Opportunity

Which of the following is an informal way of expressing organizational culture?
a. codes of conduct
b. ceremonies
c. stories
d. manuals
e. dress code

Stories

Which of the following is true about codes of ethics?
a. They should be generic enough to apply to different industries.
b. They should always be written by the CEO.
c. They are not as important as codes of conduct.
d. They should be updated periodically.

They should be updated periodically.

What is the greatest determinant of ethical conduct in the organization?
a. the comprehensiveness of the code of conduct
b. employees' individual ethical values
c. the company's ethical culture
d. the "bad apples" in the firm
e. the firm's legal responsib

The company's ethical culture

Chantel works at Coca-Cola. To make the required sales number, Chantel sent more Coca-Cola products to their distributors than what they asked for. She did this right before the accounting period. She knew that even if they sent back the extra product, it

Channel stuffing

How does social responsibility differ from ethics?
a. It can be profitable for the firm.
b. It can have a positive impact on society.
c. It deals with the total effect of marketing decisions on society.
d. It relates to individual and group decisions.
e.

It deals with the total effect of marketing decisions on society.

Which of the following is true about social responsibility?
a. Social responsibility automatically reduces costs.
b. Social responsibility improves marketing performance.
c. Social responsibility will eliminate ethical issues in marketing.
d. Social respo

Social responsibility improves marketing performance.

Frito-Lay developed a bag for its chips that was biodegradable. While praised by environmentalists, soon it received many complaints that the bags were too loud when they crinkled. Frito-Lay ended up abandoning the packaging. What does this situation demo

It can be difficult to balance all of society's demands.

Which of the following is one of the three factors that influence the ethical decision-making process?
a. codes of ethics
b. ethical issue intensity
c. organizational culture
d. philanthropy
e. social responsibility

Organizational culture

Shirley is a salesperson at a pharmaceutical firm. She has been tasked with selling a new drug. One doctor looks like a great prospect. He is highly interested in trying out the drug and has requested some samples. However, he has asked Shirley to list an

True

Individual values are more likely to influence organizational ethical decision making than organizational culture.
a. True
b. False

False

Evaluate the truthfulness of this statement: Strong ethical standards are necessary to completely eliminate misconduct from the organization.
a. True
b. False

False

A rule of thumb for resolving ethical and social responsibility issues is that if an issue can withstand open discussion that results in agreement or limited debate, an acceptable solution may exist.
a. True
b. False

True

Which of the following statements about social responsibility is correct?
A. Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society.
B. Social responsibility dimensions do not inc

Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society.

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. corporate benevolence.
B. ethical responsibility.
C. marketing concept.
D.

Social responsibility

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. positively impacting local communities.

Reducing marketing costs

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. strategic philanthropy.

Marketing citizenship

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. adopting more eco-friendly business practices
B. long-term well-being of the nat

Focus primarily on the external environment of the company

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. employee.
B. customer.
C. shareholder.
D. stakeholder.

Stakeholder

Which of the following is not a dimension of social responsibility and marketing citizenship?
A. Philanthropic
B. Economic
C. Technological
D. Legal

Technological

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

Consumerism

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. pay employees more than minimum wage
B. be profitable

Be profitable

According to the text, marketing ethics refers to principles and standards that define
A. acceptable conduct in general.
B. acceptable conduct in marketing.
C. improper behavior in business.
D. improper behavior in marketing.

Acceptable conduct in marketing

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. ethical
C. philanthropic
D. society

Philanthropic

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. cause-related marketing.
B. strategic philanthropy.
C. economic responsibility.
D. green marketing.

Cause-related marketing

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 commu

The efforts of independent individuals, groups, and organizations to protect the rights of consumers.

How would marketers most likely benefit from the consumer's right to be heard?
A. Consumers are more loyal to companies who have wronged them.
B. The company can use the information to make its products better.
C. Consumers will also tell others about the

The company can use the information to make its products better.

Which of the following employees is most responsible for setting the ethical tone for the entire marketing organization?
A. Marketing Employee
B. Product Manager
C. Marketing Manager
D. Chief Executive Officer

Chief Executive Officer