Question 1

Kingston Inc., a garment manufacturing company, has manufacturing units located in several economically backward countries.Its objective is to take advantage of the lower production and labour costs in these countries.In this scenario, there is a legitimate ethical concern about the company's:

Accepted Answer

The ethical concern in this scenario is related to the company's sourcing decisions. Specifically, the concern is whether the company is ensuring fair wages and working conditions for its employees in the economically backward countries where its manufacturing units are located. Lower production and labor costs should not come at the expense of exploiting workers in such countries.

Question 2

Research has shown that the firms that respond in the first few hours of a crisis with an organized plan and with compassion for those affected are more likely to:

Accepted Answer

Research suggests that companies that respond quickly, with a well-thought-out plan and empathy towards those affected, are likely to suffer fewer long-term negative effects on their reputation and levels of trust among their consumers. This is because a prompt, considered response can help to restore customer confidence and minimize the impact of negative publicity.

Question 3

In the context of strategic planning process, charges that firms use sweatshop labour to produce their products arise due to lapses during the phase of:

Accepted Answer

The implementation phase involves the actual execution of the plans and strategies that have been formulated during the earlier stages of strategic planning. If a firm is found to be using sweatshop labour to produce their products, it suggests that there has been a failure in the implementation of ethical standards and corporate social responsibility policies. This can be due to a lack of oversight, inadequate monitoring procedures, or insufficient emphasis on labour rights and fair working conditions. Therefore, the charges of sweatshop labour are most likely to arise during the implementation phase.

Question 4

During which phase of the strategic marketing plan would a firm address whether its employees have acted ethically in accordance with the firm's ethical values?

Accepted Answer

The phase of the strategic marketing plan during which a firm would address whether its employees have acted ethically in accordance with the firm's ethical values is the control phase, which involves monitoring and evaluating the results of the marketing plan and making adjustments as necessary. This includes assessing whether the employees have acted in adherence with the ethical guidelines set by the firm.

Question 5

In a meeting with the development team, the brand manager of TalkEasy Mobiles Inc. discovers a major design flaw in the company's latest offering, a solar cellphone. The manager weighs the cost of recalling thousands of phones against the cost of potential lawsuits against the firm.
-When the manager weighs the cost of recalling the phones against the cost of potential lawsuits, he is:

Accepted Answer

The manager is faced with a dilemma where they have to choose between two conflicting outcomes. On one hand, recalling the phones will come at a cost to the company, while on the other hand, potential lawsuits may be costly as well. Therefore, the manager has to make a decision that balances these conflicting outcomes. This is not an indication of being corrupt, but rather a responsible decision-making process.

Question 6

Celebrities stopped endorsing BodyShine Inc.'s products because the products were being manufactured using child labour in poor working conditions.The management at BodyShine needs to address whether it:

Accepted Answer

The answer of Celebrities stopped endorsing BodyShine Inc.'s products because...

Question 7

Ensuring that all potential ethical issues raised in the planning phase of a firm have been addressed and that all employees of the firm have acted ethically is the key task in the phase of:

Accepted Answer

The phase of control involves monitoring and ensuring that ethical standards and best practices are being followed by all employees of the firm. This includes verifying that all ethical issues raised in the planning phase have been addressed and implementing systems to prevent unethical behavior. Therefore, option C is the correct answer.

Question 8

During which phase of the strategic marketing plan would a firm address the issue of location of its production in another country?

Accepted Answer

The implementation phase involves putting the strategic marketing plan into action, which includes decisions about where to locate production facilities.

Question 9

Voiceover Inc., a cellphone service provider, recognizes the importance of sustainable development and believes that it makes good business sense to adopt its principles. The company feels that helping to preserve the environment will provide its shareholders with short- and long-term returns.
-As part of its sustainable development drive, Voiceover Inc.purchases more than 10,000 megawatt hours of green power, which reduces its greenhouse gas emissions by 21 percent annually.The company is demonstrating:

Accepted Answer

Voiceover Inc. is demonstrating corporate social responsibility by taking measures to reduce its environmental impact through the purchase of green power. This aligns with the principles of sustainable development and benefits both stakeholders and the environment in the short and long term.

Question 10

In the context of strategic planning, the ethical impacts of resource allocations need to be carefully evaluated during the phase of:

Accepted Answer

The answer of In the context of strategic planning, the...

Question 11

The manager of a marketing research firm, which has collected data from consumers, has discovered that the data is being used in a way that might mislead the public.In the context of ethical decision making, the manager is in the stage of:

Accepted Answer

The manager is currently identifying the issue, as they have discovered that the data is being used in a potentially misleading way. This is the first step in ethical decision making, as it is necessary to recognize that there is an ethical issue at hand before moving on to gather information, evaluate alternatives, and choose a course of action.

Question 12

Denny is evaluating whether his company's actions have a negative impact on any of its stakeholder groups.This evaluation of the ethical implications occurs during the phase of:

Accepted Answer

The answer of Denny is evaluating whether his company's actions...

Question 13

As part of its emergency response plan to a crisis situation related to the safety of employees, Frazer Inc.closed down several of its steel-cutting factories.Although the media reported that Frazer's decision had a ripple effect throughout the steel industry, the company's reputation, credibility, and trustworthiness did not suffer.In the context of strategic planning, Frazer considered whether the firm:

Accepted Answer

By considering whether the firm had systems in place to respond to emergency requirements, Frazer was engaging in strategic planning that would help it better handle crises in the future. This shows that the company was thinking ahead and preparing for potential challenges, which is an important aspect of strategic planning. The other options, such as changing sourcing strategy or relocating production, would not necessarily address the specific issue of employee safety in emergency situations.

Question 14

The manager is faced with the dilemma of doing what is beneficial for the firm in the short run and doing what is right and beneficial for the firm and society in the long run.To address this conflict, the firm's:

Accepted Answer

This choice addresses the conflict between short-term and long-term objectives by aligning the two goals. It allows the company to make decisions that benefit both the short-term financial performance and the long-term growth and sustainability of the firm. By doing so, the manager can ensure that the company is not sacrificing long-term benefits for short-term gains, while also considering the needs of society. Thus, D is the best choice.

Question 15

In the context of strategic marketing planning process, the evaluation of how each potentially ethical issue raised in the planning process has been addressed by the firm occurs in the phase of:

Accepted Answer

The phase of control in the strategic marketing planning process involves monitoring the implementation of the plan and evaluating its effectiveness. In this phase, the firm would evaluate whether ethical issues raised during the planning process were addressed appropriately. The other options (grouping, implementation, design, and initiation) do not specifically involve the evaluation of ethical issues raised during the planning process.

Question 16

Locating production facilities in foreign countries to take advantage of low-cost labour is most likely to raise the ethical question of whether a firm:

Accepted Answer

Locating production facilities in foreign countries to take advantage of low-cost labor raises ethical concerns about the fair treatment and payment of workers. Companies must consider their responsibility to ensure that their workers are treated fairly and paid living wages, as part of their ethical obligations.

Question 17

By hiring a team to investigate and report working and environmental conditions at its offshore contract manufacturing facility, SharpCut Knives Inc.has addressed the ethical question concerning whether the firm:

Accepted Answer

The investigation and report on working and environmental conditions at the offshore contract manufacturing facility shows that SharpCut Knives Inc. is concerned about ensuring fair treatment and a living wage for workers. This addresses an ethical question related to the company's responsibility towards its employees and their working conditions. The other options presented do not relate to this specific ethical concern.

Question 18

Helten Inc., an automobile company, has emergency response plans in place just in case it ever encounters an industrial accident.Helten also ensures that its emergency systems are adaptive to the changing external conditions.In the context of strategic planning, Helten's activity occurs in the phase of:

Accepted Answer

The answer of Helten Inc., an automobile company, has emergency...

Question 19

Voiceover Inc., a cellphone service provider, recognizes the importance of sustainable development and believes that it makes good business sense to adopt its principles. The company feels that helping to preserve the environment will provide its shareholders with short- and long-term returns.
-As part of its sustainable development drive, Voiceover has begun to provide its customers with electronically generated bills, thus reducing its paper consumption by more than 37 tonnes.The company is demonstrating:

Accepted Answer

Voiceover Inc.'s action of reducing paper consumption and promoting environmental sustainability demonstrates corporate social responsibility, which refers to a business's efforts to act in a socially responsible way by considering the interests of all stakeholders and addressing environmental, social, and ethical issues.

Question 20

In which stage of strategic planning are managers evaluated on their actions from an ethical perspective?

Accepted Answer

During the Control stage of strategic planning, managers' actions and decisions are evaluated to ensure they align with the company's ethical standards and strategic goals. This stage involves monitoring and assessing the effectiveness and appropriateness of the strategies implemented.

Quiz 18: Ethics and Socially Responsible Marketing