Deck 2: Responsible Business

Question 1

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

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

Answer 1

D

Question 2

Define green marketing, and explain why it is difficult to implement.

Answer 2

Green marketing is the specific development, pricing, promotion and distribution of products that do not harm the natural environment.Although demand for economic, legal and ethical solutions to environmental problems is widespread, the environmental movement in marketing includes many different groups, whose values and goals often conflict.Some environmentalists and marketers believe companies should work to protect and preserve the natural environment.

Question 3

List and describe philanthropic responsibilities and give example of philanthropic giving.

Answer 3

At the top of corporate responsibility issues are philanthropic responsibilities.These responsibilities, which go beyond marketing ethics, are not required of a company, but they promote human welfare or goodwill, as do the economic, legal and ethical dimensions of social responsibility.Small companies participate in philanthropy through donations and volunteer support of local good causes and national charities.
More companies than ever are adopting a strategic approach to corporate philanthropy.Many businesses link their products to a particular social cause on an ongoing or medium-term basis, a practice known as cause-related marketing.
Some companies are beginning to extend the concept of corporate philanthropy beyond financial contributions by adopting a strategic philanthropy approach, the synergistic use of organisational core competencies and resources to address key stakeholders' interests, and achieve both organisational and social benefits.

Question 4

What are the differences between individual and organisational ethical choices?

Question 5

The campaign "supportchange4life" faces a number of challenges.Discuss these challenges.

Question 6

What are socially responsible organisations?

Question 7

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 8

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 9

What is the link between opportunity and unethical behaviour?

Question 10

Give company specific examples of an ethical issue and explore how they impacts on the marketing mix of an organisation.

Question 11

Sometimes business must find a balance between society's demand for social responsibility and investors' desires for profits.This is an example of a(n) ____ responsibility.

A) Ethical
B) Legal
C) Cost
D) philanthropic
E) economic

Question 12

Who should be responsible for promoting ethical standards within an organisation?

Question 13

How useful are codes of conduct in encouraging ethical behaviour in an organisation?

Question 14

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 15

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

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

Question 16

Discuss the relationship between social responsibility and economic responsibility.

Question 17

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.

Question 18

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 19

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 maximise its positive impact and minimise 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 20

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 21

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

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

Question 22

Consumerism is:

A) the efforts of independent individuals, groups, and organisations to protect the rights of consumers.
B) A European convention.
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 23

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 24

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

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

Question 25

Marketing citizenship refers to an organisation's obligation to maximise its positive impact and minimise its negative impact on society.

Question 26

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 27

At the top of the pyramid of social responsibility for business are ____ responsibilities.

A) ethical
B) legal
C) Cost
D) philanthropic
E) Economic

Question 28

Green marketing refers to the packaging of products in green containers that blend in with the environment.

Question 29

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 30

Who are the primary recipients of the benefits of strategic philanthropy?

A) Employees and investors
B) Companies and society
C) Primary stakeholders
D) Managers and companies
E) Society and communities

Question 31

Marketing ethics refers to principles and standards that define acceptable conduct in marketing.

Question 32

Products that may do harm to the natural environment are inconsistent with:

A) green marketing.
B) the marketing concept.
C) consumerism.
D) strategic philanthropy.
E) the marketing mix.

Question 33

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 34

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 35

An organisation's obligation to maximise its positive impact and minimise its negative impact on society is known as social accountability.

Question 36

Marketers' contributions of resources to community causes such as education, recreation, and others illustrate social responsibility on a community-relations level.

Question 37

Cause-related marketing refers to the specific development, pricing, promotion, and distribution of products that do not harm the natural environment.

Question 38

A marketing ethics issue likely exists when:

A) company members disagree about a marketing decision.
B) an activity does not benefit the organisation 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 organisation must choose from among several actions that must be evaluated as right or wrong.

Question 39

Strategic philanthropy involves linking a firm's products to a particular social cause on a sort-term basis.

Question 40

An ethical issue is:

A) likely to arise when an employee's moral philosophy is consistent with the organisation's expectations of the employee's behaviour.
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) characterised by a blatant disregard for human rights and equality.

Question 41

It is possible to improve ethical behaviour in an organisation by eliminating unethical persons and improving the organisation's ethical standards.

Question 42

Top management sets the ethical tone for the entire organisation.

Question 43

Marketing ethics concerns the impact of an organisation's decisions on society, whereas social responsibility relates to individual decisions.

Question 44

Three important factors that influence ethical decisions in marketing are individual factors, organisational factors, and opportunity.

Question 45

Marketing ethics and social responsibility mean the same thing.

Question 46

If an ethical (or social responsibility) issue can withstand open discussion and result in agreements or limited debate, it is not really an ethical (or social responsibility) issue.

Question 47

It is easy to distinguish between legal and ethical issues.

Question 48

Codes of conduct (ethics) are formalised rules and standards that describe what the company expects of its employees in terms of ethical behaviour.

Question 49

Expecting ethical business behaviour reflects our culture.

Question 50

An ethical issue is an identifiable problem, situation, or opportunity requiring an individual to choose from among several actions that must be evaluated as right or wrong.

Question 51

The more a person is exposed to unethical activity in the organisational environment, the more likely it is that he or she will behave unethically.

Question 52

If other persons within an organisation approve of an activity and the activity is legal but not customary in the industry, the activity is probably both ethical and socially responsible.

Question 53

People learn values and principles through socialisation by family members, social groups, religion, and formal education.

Question 54

Any time an activity causes managers or consumers to feel manipulated or cheated, a marketing ethics issue exists, regardless of the legality of that activity.

Question 55

A marketer's failure to inform customers about changes in the quality of its products does not constitute an ethical issue.

Question 56

Marketing ethics relates to individual and group evaluations about what is right or wrong in a particular marketing decision-making situation; social responsibility deals with the total impact of marketing decisions on society.

Question 57

There is no evidence that being socially responsible and ethical is worthwhile.

Question 58

Codes of conduct (ethics) must be detailed enough to take every situation into account.