Deck 8: Ethics and Social Responsibility in Marketing Strategy

Question 1

__________, which occurs when a firm charges different prices to different customers, occurs in both consumer and business markets. However, it is very common among different members of the supply chain.

A) Price discrimination
B) Price fixing
C) Predatory pricing
D) Differential pricing
E) Superficial discounting

Answer 1

A

Question 2

The exchange process tends to break down when marketing activities deviate from accepted standards.

Answer 2

True

Question 3

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

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

Answer 3

C

Question 4

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

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 5

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

Question 6

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?

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 7

Which activity is part of a stakeholder orientation? ​

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

According to the pyramid of social responsibility, legal responsibilities are the foundation upon which all other responsibilities rest.​

Question 9

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

Question 10

Essentially, having a climate of ethics and social responsibility is all about creating trust among a firm's stakeholders. To gain trust, the firm and its employees must continuously uphold:

A) their commitment to strategic philanthropy.
B) their standards of integrity.
C) the firm's right and responsibility to be profitable.
D) their standards of fair competition in the marketplace.
E) their legal responsibilities.

Question 11

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.​

Question 12

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

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

Question 13

The current view of marketing held by most practitioners is that ethics and social responsibility are good supplements to business activities but are not essential.

Question 14

The link between marketing ethics/social responsibility and firm performance has been documented repeatedly over time. This link is most evident in firms that have a strong __________.

A) market orientation
B) cause-related marketing program
C) sense of customer loyalty
D) ethical climate
E) employee satisfaction program

Question 15

Which of the following IS NOT a challenge associated with being ethical and socially responsible?

A) Business decisions involve complex and detailed discussions in which correctness may not be so apparent.
B) Individuals who have limited business experience often find themselves required to make sudden decisions concerning marketing's gray areas.
C) A person's experiences and decisions at home, in school, and in the community may be quite different from the experiences and the decisions he or she has to make at work.
D) When personal values are inconsistent with the configuration of values held by the work group, ethical misconduct may increase.
E) Most employees perceive that the values of honesty, respect, and trust do not apply to the workplace.

Question 16

A stakeholder orientation can be viewed as a continuum in that firms are likely to adopt the concept to varying degrees.

Question 17

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

Question 18

Greenwashing is a promotion-related ethical issue.

Question 19

This type of activity strives to create social value rather than simply earn profits.

A) ​Cause-related marketing
B) ​Strategic philanthropy
C) ​Marketing ethics
D) ​Social entrepreneurship
E) ​Social responsibility

Question 20

An action is considered ethical if it adheres to all legal and regulatory requirements.

Question 21

This is a strategic process involving stakeholder assessment to create meaningful, long-term relationships with customers, while maintaining, supporting, and enhancing the natural environment.

A) ​Green marketing
B) ​Greenwashing
C) ​Social responsibility
D) ​Sustainability
E) ​Social entrepreneurship

Question 22

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:

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

Question 23

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.

Question 24

Research has found that corporate codes of ethics should contain six highly desirable core values or principles. Which of the following IS NOT one of these core values?

A) trustworthiness
B) respect
C) legality
D) fairness
E) citizenship

Question 25

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?

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 26

Describe the role that a code of conduct plays in ensuring ethical compliance within a firm. How should a code of conduct be developed, what should it contain, and what are the keys to ensuring that the code is successfully implemented?

Question 27

Draw, label, and explain the pyramid of social responsibility. What are the requirements for a firm if it truly wants to be ethical and socially responsible?

Question 28

Ben & Jerry's is well known for its use of __________ in that it ties its products and marketing strategy to social causes such as environmental stewardship.

A) cause-related marketing
B) ethical branding
C) sustainability
D) environmentalism
E) welfare-related marketing

Question 29

Colgate promotes its toothpaste using a claim that states "helps fight plaque and gingivitis." What potential ethical issue does Colgate have with respect to its promotional strategy?

A) bribery
B) ambiguous statements
C) fraud
D) superficial claims
E) false advertising

Question 30

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.

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

Question 31

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

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

Question 32

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

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

Question 33

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

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 34

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.

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

Question 35

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.

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

Question 36

What is the relationship among marketing ethics, strategic planning, and organizational performance? How is this related to having a stakeholder orientation?

Question 37

Research indicates that being ethical and socially responsible has a number of benefits for the organization. Which of the following IS NOT one of these benefits?

A) increased customer goodwill
B) increased stakeholder orientation of the organization
C) increased employee commitment
D) increased marketing financial performance
E) increased competitive orientation

Question 38

To ensure that ethics and social responsibility are thoroughly incorporated into the firm's strategic planning process, the firm's __________ should never be silent about ethical requirements and social responsibility.

A) marketing plan
B) sustainability program
C) leadership team
D) promotion activities
E) training materials

Question 39

Socially responsible firms tend to enjoy higher __________ when customers perceive that the firm is dedicated to doing the right thing and treating customers fairly.

A) profit margins
B) sales volume
C) customer loyalty
D) ethical conduct
E) values

Question 40

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?