Deck 3: Ethics and Social Responsibility

Question 1

Most people have not applied ethical standards in their everyday lives.

Answer 1

False
If you have experienced resentment at a line-cutter,then you have applied ethical standards.

Question 2

Which of the following statements describes ethics?

A)Ethics are the moral principles or values that generally govern the conduct of an individual.
B)Ethics is the standard of behavior by which conduct is judged.
C)Morals are a foundation for ethical behavior.
D)Ethical values are situation specific and time oriented.
E)All of the statements describe ethics.

Answer 2

E
Ethics refers to the moral principles or values that generally govern the conduct of an individual or a group.Ethics also can be viewed as the standard of behavior by which conduct is judged.

Question 3

Today's business ethics are difficult to learn because they are different from those used outside the business world.

Answer 3

False
Today's business ethics actually consist of a subset of major life values learned since birth.

Question 4

Unfortunately,most businesspeople have not progressed beyond the self-centered and manipulative actions of preconventional morality.

Question 5

Morals are rules people develop as a result of cultural values and norms.

Question 6

Sustainability refers to a business's concern for society's welfare.

Question 7

The greater the number of persons affected by a negative outcome,the more likely it is that marketers will recognize a problem as unethical.

Question 8

Top managers who behave ethically can influence others in an organization to behave ethically.

Question 9

While there are plenty of benefits for a socially responsible company,there is no clear-cut determination that ignoring social responsibility will have an adverse impact.

Question 10

Ethical questions range from narrowly defined issues to broader philosophical,social questions.

Question 11

Large companies have become more interested in ethical issues and appoint ethics officers to oversee the company's ethical decision making.

Question 12

Because social responsibility has proven to have a limited return on investment,the number of businesses opting to act socially responsible is declining.

Question 13

When writing codes of ethics,businesses must ensure their codes deal with every possible situation.

Question 14

Sustainability is the development and marketing of products designed to minimize negative effects on the physical environment or to improve the environment.

Question 15

Some "green" products have an easily recognizable benefit to consumers and the environment.

Question 16

Laws refers to the moral principles or values that generally govern the conduct of an individual or group.

Question 17

You are writing copy for a fruit drink advertisement.You know you could sell more product if you claimed that the drink contained 100% juice,but in fact the drink contains only 50% juice.You decide not to make the "100% juice" claim because you know it would be illegal to do so.You are likely at the postconventional stage of morality.

Question 18

The foundation for the pyramid of corporate social responsibility is philanthropic responsibility.

Question 19

Most business ethicists agree that multinational firms that expand into developing countries are acting ethically when they provide low-income work to the people in those countries,arguing that low-income work is better than no work.

Question 20

A code of ethics can be an effective internal control on behavior,which is more desirable than external controls such as government regulation.

Question 21

Texas Instruments (TI)has developed a detailed Values and Ethics Statement and Code of Business Conduct.Why did they choose to create these?

A)They make TI look good.
B)TI's suppliers will only buy from them if they have these statements.
C)U.S.law requires a code of ethics.
D)Consumers demand ethical practices.
E)A code of ethics helps guide buyers and sellers and overall helps the company to follow ethical practices.

Question 22

Hallie is a calculating,self-centered salesperson.She never engages in relationship marketing.She looks on any sales situation as a "win-lose" situation,and she believes any legal method she can use is justified when she wins.Hallie is most likely at the _____ stage of ethical development.

A)preconventional morality
B)transformationalism
C)conventional morality
D)egocentrism
E)basic morality

Question 23

For every home built by Habitat for Humanity,Whirlpool Corporation has given and continues to give free kitchen appliances to the deserving family.This donation of appliances is an example of how companies assume their:

A)corporate social responsibility
B)ethical conveyance
C)duty to engage in cause marketing
D)right to engage in social marketing
E)multiculturalism

Question 24

_____ refers to the moral principles or values that generally govern the conduct of an individual or a group.

A)Righteousness
B)Social consensus
C)Sustainability
D)Virtue
E)Ethics

Question 25

Like many other professional organizations and businesses,the American Marketing Association has developed a formal,written guideline to help its members make better ethical decisions.This document is called a:

A)behavioral practice
B)moral ruling
C)code of ethics
D)direction of value
E)principled regulation

Question 26

One approach to developing a personal set of ethics is to:

A)rely solely on one's personal character to determine what action to take.
B)stress the importance of rules.
C)ignore problems associated with the magnitude of consequences.
D)avoid examining the consequences of particular acts.
E)never trust your own behavioral instincts.

Question 27

Tyson Foods launched a campaign in Austin,Texas,in which it agreed to donate 100 pounds of chicken to the Capital Area food Bank of Texas for every comment posted on its blog..This campaign is an example of:

A)corporate social responsibility
B)ethical conveyance
C)a duty to engage in cause marketing
D)a right to engage in social marketing
E)multiculturalism

Question 28

Which level of ethical development moves from an egocentric viewpoint toward the expectations of society?

A)Postconventional morality
B)Conventional morality
C)Preconventional morality
D)Secondary morality
E)Primary morality

Question 29

Novartis created the Novartis Research Institute for Tropical Diseases in Singapore.The institute is unique because it is a not-for-profit organization that focuses on the discovery of new drugs for the treatment of neglected diseases,such as dengue fever and tuberculosis.Not only is this good business,it is also:

A)mandated by Supreme Court rulings.
B)socially responsible.
C)not ethically motivated.
D)demonstrating a lack of concern for diversity.
E)using environmental marketing.

Question 30

Many American businesses are expanding their operations into developing countries.These businesses are often finding that:

A)environmental standards are usually much higher in developing countries than in the U.S.
B)labor unions are much more powerful in most other countries than they are in the U.S.
C)ethical standards are often overlooked by governments hungry for jobs or tax revenues.
D)host countries generally expect U.S.businesses to be good corporate citizens
E)labor costs are much higher abroad than they expected

Question 31

The _____ stage of ethical development represents the morality of the mature adult.

A)preconventional morality
B)transformationalism
C)conventional morality
D)postconventional morality
E)actualized morality

Question 32

Corporate social responsibility is defined as the:

A)belief that the legal system defines ethical behavior
B)development of inclusive codes of ethics
C)rules by which social rewards are attained
D)business's concern for society's welfare
E)coordination of social programs for publicity purposes

Question 33

All of the following statements about the creation of a code of ethics are true EXCEPT:

A)A written code helps employees avoid confusion when determining whether their decisions are ethical.
B)A code can be an effective internal control on behavior.
C)The process of formulating the code facilitates discussions that ultimately create better decisions.
D)A code helps employees identify what their firm recognizes to be acceptable business practices.
E)A code guarantees ethical behavior among a firm's employees.

Question 34

All of the following are factors influencing ethical decision making and judgments EXCEPT:

A)rate of prosecution
B)top management actions on ethics
C)probability of a harmful outcome
D)number of people to be affected
E)social consensus

Question 35

In the _____ stage of ethical development,loyalty and obedience to the organization or to society become paramount.

A)preconventional morality
B)transformationalism
C)conventional morality
D)postconventional morality
E)actualized morality

Question 36

_____ is the concern of business for the long-range welfare of both the company and its relationships to the society within which it operates.

A)Consumerism
B)Corporate social responsibility
C)Cultural sensitivity
D)Conventional morality
E)Environmental consideration

Question 37

Which of the following factors will influence ethical decision making and judgments?

A)Likelihood of stakeholder responsibility
B)Proactive nature of organizational sustainability
C)Potential magnitude of the consequences
D)Probability of ethical consensus
E)Consequence of adjacencies

Question 38

During World War II,German industrialist Oskar Schindler paid money out of his own pocket in order to hire and save the lives of almost 1200 Jews during the Holocaust by employing them in his enamelware and ammunition factories.Some evidence indicates that his ammunition factories deliberately produced faulty product and did not manufacture a single usable shell for the Nazis.Schindler was most likely at the _____ stage of ethical development.

A)preconventional morality
B)transformationalism
C)conventional morality
D)postconventional morality
E)actualized morality

Question 39

Ethical development can be thought as having three levels.The most basic,childlike level is the _____ stage.

A)preconventional morality
B)transformationalism
C)conventional morality
D)postconventional morality
E)actualized morality

Question 40

_____ are the rules people develop as a result of cultural values and norms.

A)Virtues
B)Ethics
C)Socialization
D)Conscience
E)Morals

Question 41

The pyramid of corporate social responsibilities contains all of the following components EXCEPT:

A)economic responsibilities
B)ethical responsibilities
C)cultural responsibilities
D)legal responsibilities
E)philanthropic responsibilities

Question 42

Which of the following statements about the theory of sustainability is true?

A)Sustainability is an internal process in which companies match resources and objectives.
B)Sustainability is the idea that socially responsible companies will outperform their peers when they focus on the world's problems as marketing opportunities.
C)According to the theory of sustainability,a company cannot be socially responsible without a code of ethics and managerial support of that code.
D)According to the theory of sustainability,ethical behavior should never be viewed as the means of obtaining a competitive advantage.
E)Sustainability is the same as "green marketing".

Question 43

Girls between the ages of 8 and 15 years are one of the growing markets for high-end shoe manufacturers,and podiatrists say the trend is leading to many stylish young girls with grown-up foot problems.Shoe manufacturers who develop and market adult-styled shoes to this group are not operating at a(n)_____ responsibility level of the pyramid of corporate social responsibility.

A)legal
B)philanthropic
C)ethical
D)economic
E)cultural

Question 44

At what level of the pyramid of corporate social responsibility will a company be a good corporate citizen?

A)Economic
B)Philanthropic
C)Social
D)Legal
E)Ethical

Question 45

One of the favorite foods in Thailand is shark fin soup.A San Francisco-based organization claimed the soup made by its leading producer contained mercury poison,yet the leading producer of shark fin soup wanted to continue selling the soup because it believes it has a responsibility to its investors to be profitable.In terms of the pyramid of corporate social responsibility,this indicates that the soup manufacturer was operating at a(n)_____ responsibility level.

A)Legal
B)philanthropic
C)ethical
D)economic
E)cultural

Question 46

One potential drawback of cause-related marketing is that:

A)consumers do not purchase products that support causes they themselves do not support
B)businesses that participate in such programs generally experience a loss in market share
C)customers suspect that firms usually raise their prices to "offset" the donations they provide to charity
D)using a cause simply to sell more of a product can hurt both the cause and the company
E)None of the above;there are no drawbacks to cause-related marketing.

Question 47

_____ is the idea that socially responsible companies will outperform their peers by focusing on the world's social problems and viewing them as opportunities to build profit and help the world at the same time.

A)Sustainability
B)Philanthropy
C)Cause marketing
D)Creative ethics
E)International ethics

Question 48

At what level of the pyramid of corporate social responsibility will firms do what is right,just,and fair?

A)Economic
B)Philanthropic
C)Legal
D)Ethical
E)Moral

Question 49

The fact that many people believe that businesses should focus on making a profit and leave social and environmental issues to nonprofit organizations is:

A)one of the arguments in support of social responsibility
B)one of the reasons so many organizations have a sustainability plan
C)creating a competitive disadvantage for larger corporations
D)forcing organizations to choose between stakeholders and the environments in which the stakeholders live
E)one of the arguments against social responsibility

Question 50

The four components of the pyramid of corporate social responsibility are:

A)sustainability,creativity,profit,and culture
B)organizational culture,creativity imagery,economic performance,and objectivity
C)organizational,financial,social,and cultural responsibilities
D)sustainability,legality,creativity,and competition
E)economic,legal,ethical,and philanthropic responsibilities

Question 51

The movement to develop and market products designed to minimize negative effects on the physical environment or to improve the environment is known as:

A)enviromarketing
B)green marketing
C)cause marketing
D)social marketing
E)minimalist marketing

Question 52

Many airlines offer passengers the option to purchase carbon offsets as an environmentally friendly compensation for their carbon footprint.For example,Delta customers can pay $10 to a fund that plants trees as a way to offset the carbon emissions from the airplane.Some would say Delta is:

A)acting in accordance with recent rulings by the U.S.Supreme Court.
B)socially responsible.
C)not ethically motivated.
D)demonstrating a lack of concern for diversity.
E)using issue-oriented marketing.

Question 53

Japanese law prohibits the storage of more than 50 pounds of explosive at any single site in the nation.Every night,Universal Studios Japan hosts a fireworks display.The theme park recently came under government investigation when allegations were made that the park was detonating more than 50 pounds of explosives in its nightly fireworks displays.If the allegations are true,in terms of the pyramid of corporate social responsibility,then Universal Studios Japan is not operating at a(n)_____ responsibility level.

A)Legal
B)philanthropic
C)ethical
D)economic
E)cultural

Question 54

In the future,electrical power may come from quantum nucleonics,a form of nuclear power that produces no residual radiation.The ability to use this form of power will require equipment adaptations,but it will solve the world's need for clean and efficient power.Companies that replace inefficient sources of power with quantum nucleonics only after they are required to by the Environmental Protection Agency are operating at a(n)_____ responsibility level.

A)Legal
B)philanthropic
C)ethical
D)economic
E)cultural

Question 55

Drug Marketing
Pharmaceutical companies spent $4.4 billion on prescription drug advertising in 2008,mostly on television and in magazines.While the Internet is becoming a more prominent medium to reach consumers and is the primary source used to seek health information,these companies spent less than $130 million on Web marketing.One reason is that there are no guidelines,which makes these heavily regulated marketers uneasy.For example,television commercials for prescription drugs must include disclosures regarding the major side effects if the brand name is mentioned in the ad.The Food and Drug Administration (FDA)claims that existing regulations address many of the Internet advertising issues,but other aspects of Web marketing,such as social networking and search marketing,must be reviewed.That's why the FDA hearings on this issue were attended by pharmaceutical giants and Web companies like Google,Yahoo,and WebMD Health.
Refer to Drug Marketing.Which level of the pyramid of social responsibility is most relevant to this situation in which the drug companies want to ensure that they are "playing by the rules"?

A)legal responsibilities
B)ethical responsibilities
C)philanthropic responsibilities
D)economic responsibilities
E)standard responsibilities

Question 56

Florida Hospitals
A group of hospital administrators in Florida were discussing the amount of resources used to care for patients who were illegal immigrants and had no medical insurance.One man discussed how his hospital had spent over $2 million on one illegal immigrant who had no family or friends and who was not getting better.Another administrator stated that his hospital was losing $20 million annually in order to provide care for the influx of illegal immigrants into the state.After a great deal of discussion,it was determined that there was probably nothing any one could do about the situation,and that each of them had definite ideas about how to deal with the problems.
Refer to Florida Hospitals.In order to make an ethical decision on how to handle uninsured illegal immigrants,the Florida hospital administrators must consider all of the following EXCEPT:

A)social consensus
B)number of people affected by the decision
C)probability of harmful outcome to the hospital and to the individuals
D)magnitude of morality
E)length of time between the decision and the onset of consequences

Question 57

Which level of the pyramid of corporate social responsibility is the foundation on which all other responsibilities rest?

A)Economic
B)Philanthropic
C)Legal
D)Ethical
E)Conformist

Question 58

Which of the following is an argument used to support corporate social responsibility (CSR)?

A)The free market,not companies,should decide what is best for the world.
B)CSR can be a profitable undertaking.
C)Businesses are not responsible for social or environmental problems.
D)Businesses don't have the expertise to make social decisions.
E)All of the above are arguments used in support of CSR.

Question 59

Pacific Gas and Electric (PG&E)Company has donated almost $300,000 to 58 local governments and community-based organizations for local economic development projects.Recipients of these grants include the San Benito County Economic Development Corporation's Business Outreach Program,the San Jose Conservation Corps' Hennessy Place Affordable Single-Family Housing Project,and Mariposa County's Business Development Training Program.This sort of donation indicates PG&E was operating at a(n)_____ responsibility level of the pyramid of corporate social responsibility.

A)legal
B)philanthropic
C)ethical
D)economic
E)cultural

Question 60

Every firm is expected to obey the law and play by the rules of the game..What level of the pyramid of corporate social responsibility is this?

A)Social
B)Economic
C)Ethical
D)Legal
E)Accountability

Question 61

Perhaps more than any other product or service,antivirus software is subject to the following-almost on a daily basis.

A)quality assurance
B)planned obsolescence
C)product modification
D)functional modification
E)perishability

Question 62

The 36-hour delay in responding to the defective security upload on the part of McAfee's executive vice president is __________.

A)the gap between the service that customers receive and the service they want
B)doing "whatever it takes" to stay in business
C)an external communication gap
D)the inability of management and employees to do what needs to be done
E)all of the above

Question 63

The newest theory in social responsibility is called sustainability.Explain what this means.

Question 64

Drug Marketing
Pharmaceutical companies spent $4.4 billion on prescription drug advertising in 2008,mostly on television and in magazines.While the Internet is becoming a more prominent medium to reach consumers and is the primary source used to seek health information,these companies spent less than $130 million on Web marketing.One reason is that there are no guidelines,which makes these heavily regulated marketers uneasy.For example,television commercials for prescription drugs must include disclosures regarding the major side effects if the brand name is mentioned in the ad.The Food and Drug Administration (FDA)claims that existing regulations address many of the Internet advertising issues,but other aspects of Web marketing,such as social networking and search marketing,must be reviewed.That's why the FDA hearings on this issue were attended by pharmaceutical giants and Web companies like Google,Yahoo,and WebMD Health.
Refer to Drug Marketing.If a drug manufacturer claims that its manufacturing processes are environmentally friendly in its advertising,this is an example of:

A)sustenance marketing
B)green marketing
C)philanthropy
D)deontological marketing
E)clean marketing

Question 65

Antivirus software is a membership service.

Question 66

McAfee's problem was exacerbated because it was a global brand.

Question 67

Looking at its list of OTC healthcare products,Prestige Brands,did not improve its positioning in eye care products.

Question 68

For every home built by Habitat for Humanity,Whirlpool Corporation has given and continues to give free kitchen appliances to the deserving family.At first Whirlpool gave the appliances with no promotion,then Whirlpool began talking about its philanthropy in its advertising campaigns.Is this unethical behavior according to the pyramid of social responsibility?

Question 69

What kind of protection best describes McAfee's response to those customers inconvenienced by its software update?

A)express warranty
B)implied warranty
C)free repairs of computers
D)subscription extensions
E)limited warranty

Question 70

The McAfee antivirus program illustrates what aspect of the classic definition of a product?

A)A product need not be delivered in a package.
B)A product includes both its favorable and unfavorable characteristics.
C)A product is an item in a product line.
D)A product consists of the equity it produces.
E)A product is anything that satisfies an individual's personal wants.

Question 71

McAfee has antivirus products designed for its consumer and enterprise segments.However,the corrupted data and quality assurance problem affected all market segments.Which of the following seems a likely reason?

A)standardized components
B)research & development
C)Windows XP
D)package uniformity
E)mass customization

Question 72

For home users,McAfee's antivirus program would be called a specialty product.

Question 73

List three ways an organization will benefit from the development and use of a code of ethics.

Question 74

The acquisition of Blacksmith left Prestige's depth in household brands unchanged.

Question 75

A recent study of marketing professionals found that their ethical judgments were influenced by several factors.List four of these factors.How do these factors contribute to the ethical environment of a marketing organization?

Question 76

List and describe the three levels of ethical development.

Question 77

Research has found three ethics-related actions by managers have the greatest impact on employee ethics.What are they?

Question 78

Although relatively few customers experienced the blue screen of death that afflicts a stricken Windows computer,the real harm done was to McAfee's brand equity.

Question 79

The remedies that McAfee took to placate subscribes impacted by its failure in quality control were intended to __________.

A)reposition its virus program as reliable
B)improve an existing product
C)investing in brand loyalty
D)ultimately protect its brand equity
E)address each gap in the gap model

Question 80

Describe the pyramid of corporate social responsibility,and include a description of its components.