Deck 4: Social Responsibility and Ethics in Marketing

Question 1

Marketing ethics goes beyond legal issues, although ethical disputes must sometimes be resolved in court.

Answer 1

True

Question 2

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

Answer 2

False

Question 3

Pressures to substitute inferior materials to reduce costs may result in product-related issues.

Answer 3

True

Question 4

The right to be informed means that consumers should be treated fairly when they complain to marketers about their products.

Question 5

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 6

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

Question 7

When marketing activities deviate from accepted standards, the exchange process can break down, resulting in customer dissatisfaction, lack of trust, and lawsuits.

Question 8

Under President Kennedy's consumer bill of rights, consumers must have access and opportunity to review all relevant information about a product before buying it.

Question 9

A bribe offered to benefit an organization is generally considered acceptable.

Question 10

Four dimensions of social responsibility are economic, legal, ethical, and philanthropic.

Question 11

Social responsibility is an organization's obligation to maximize its positive impact and minimize its negative impact on society.

Question 12

An organization's obligation to maximize its positive impact and minimize its negative impact on society is known as social accountability.

Question 13

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 14

At the most basic level of marketing citizenship, marketers have an obligation to contribute funds to philanthropic causes.

Question 15

Price fixing, predatory pricing, and failure to disclose the full price associated with a purchase are pricing activities that do not result in ethical issues.

Question 16

It is easy to distinguish between legal and ethical issues.

Question 17

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

Question 18

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

Question 19

According to research, only a small percentage of consumers have a more positive opinion of an organization when it supports causes they care about.

Question 20

Marketing citizenship refers to an organization's obligation to maximize its positive impact and minimize its negative impact on society.

Question 21

Manipulating a product's availability for purposes of exploitation and forcing intermediaries to behave in a specific manner are ethical issues in distribution.

Question 22

Top management sets the ethical tone for the entire organization.

Question 23

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

Question 24

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

Question 25

To resolve a social responsibility issue, it is helpful to check with concerned consumer groups and industry or specific company policy regarding the activity.

Question 26

Employees who always do things in their own self-interest in spite of organizational policies or culture are often called "bad apples."

Question 27

There are few costs associated with being socially responsible and satisfying society's demands.

Question 28

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 29

Marketing ethics and social responsibility mean the same thing.

Question 30

Employees, coworkers, or superiors do not influence the ethical decision-making process.

Question 31

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

Question 32

If a person is rewarded for developing a deceptive advertisement, he or she probably will not engage in such behavior in the future.

Question 33

Employees can easily determine what behavior is acceptable even in organizations that do not have ethics compliance programs and policies on conduct.

Question 34

It is not important to consistently enforce standards and impose penalties or punishment on those who violate codes of conduct.

Question 35

Companies should promote individuals prone to misconduct to management positions.

Question 36

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

Question 37

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

Question 38

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

Question 39

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

Question 40

Open communication and coaching on ethical issues are essential to nurturing ethical conduct in marketing.

Question 41

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 42

It is nearly impossible to balance the needs of all stakeholders so as to satisfy all of society's demands.

Question 43

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 44

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) Focusing primarily on the external environment of the company
C) Considering individuals as part of the natural environment
D) Adopting more eco-friendly business practices
E) Improving technologies that protect the natural environment

Question 45

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 46

A common reason for channel stuffing is to conceal declining demand or inflate financial statement earnings.

Question 47

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

Question 48

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 49

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 50

A solution cannot be ethical if there are different viewpoints on the issue within the organization.

Question 51

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 52

Matilda sees her coworkers take long lunch breaks. Despite this fact, her parents had always told her that it was important not to take advantage of others. As a result, she refuses to go past an hour lunch. In this case, the organizational culture is influencing Matilda's behavior.

Question 53

If Hefty Bags expresses concern that its products are having too great an impact on the pollution of groundwater 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 54

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 two days. This example illustrates the positive consequences of

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

Question 55

From its inception, Toms wanted to help those in developing countries. When Toms was developed, it adopted a one-for-one model in which it would donate one pair of shoes to a child in need for every pair of shoes it sold. This is an example of cause-related marketing.

Question 56

A strong code of conduct that is carefully thought out and detailed will not require many revisions in the history of the firm.

Question 57

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 about?

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

Question 58

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 flextime. 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 RedCap's 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

Question 59

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 60

Analyzing stakeholder relationships is important for maximizing value for specific target markets.

Question 61

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 62

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 63

The most basic principles of marketing ethics are _____________ to encourage marketers to conform to society's expectations for conduct.

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 64

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 65

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 66

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 67

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 68

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 69

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 70

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 71

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 72

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 73

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 it 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 74

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 75

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 76

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 77

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 78

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 79

The Transportation Division of the GE Corporation is located in a small city that 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 80

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