Question 1

When auditing expenses claimed by the university president, the auditors found extravagant spending on $1,000 per night hotels, banquets, and gourmet restaurants. The president was fired, alumni donations declined, and staff members-who were disturbed by the extravagance while staff salaries were frozen-quit their jobs. This example illustrates

Accepted Answer

This example shows how unethical actions can have ripple effects that go beyond the immediate consequences, such as the firing of the president. The university experienced a decline in alumni donations and a loss of staff due to the president's extravagant spending, which was seen as particularly egregious given that staff salaries were frozen. This illustrates the potential for unintended consequences when individuals act unethically, even in isolated incidents.

Question 2

After a firm has identified the various stakeholders and their issues and gathered the available data, all parties relevant to the decision should engage in brainstorming and evaluation of alternatives. __________ then review and refine these alternatives, and choose a course of action.

Accepted Answer

Managers are typically responsible for reviewing, refining, and choosing a course of action after alternatives have been brainstormed and evaluated.

Question 3

The Ethical Decision-Making Framework includes all of the following steps EXCEPT

Accepted Answer

The Ethical Decision-Making Framework does not include promoting the firm's corporate social responsibility efforts as one of its steps. The other steps, which are to identify issues, gather information and identify stakeholders, brainstorm and evaluate alternatives, and choose a course of action, are all part of the framework.

Question 4

During the __________ phase of the strategic marketing planning process, marketers use systems to check whether each potential ethical issue raised in earlier phases was addressed.

Accepted Answer

The control phase is where marketers use systems to monitor and check whether the marketing plan is being implemented as intended and whether ethical issues have been addressed. This ensures that the company is behaving ethically and in line with its social responsibility.

Question 5

Alicia has been asked to approve a marketing campaign that, although it is not illegal, promotes food products to children. She is concerned that the food products are not particularly nutritious, although they are not as bad for children as some others sold by competitors. She reviews the tests in the Ethical Decision-Making Metric, and she decides her best course of action is to

Accepted Answer

By putting the campaign on hold, Alicia is exercising caution and avoiding making a potentially unethical decision. Exploring with the staff how they approached the ethical issues will help her gain insight and make an informed decision about how to proceed. This also shows a commitment to ethical decision-making and a willingness to take the time necessary to ensure the campaign is aligned with the company's values.

Question 6

Every year, General Mills issues a report discussing how the firm has performed against its own standards of ethical conduct. This report is part of General Mills' __________ phase of its strategic marketing planning process.

Accepted Answer

The control phase of the strategic marketing planning process involves monitoring and evaluating the performance of the plan and making necessary adjustments. General Mills issuing a report discussing their ethical conduct performance aligns with this phase as they are evaluating their performance against their own standards.

Question 7

Hisaoki picks up the local newspaper and reads a stinging letter to the editor criticizing his beverage company for supporting a sporting event for handicapped children. The letter writer is critical of a banner displayed at the event, with the logos of alcoholic beverages and Hisaoki's company name. Hisaoki never considered that this problem might arise. In the Framework for Ethical Decision Making, Hisaoki's company failed to

Accepted Answer

Hisaoki's company failed to identify the issue of potential negative publicity or backlash from associating their brand with alcoholic beverages at an event for handicapped children. This failure to identify the potential problem ultimately led to the negative letter to the editor.

Question 8

When Bernie Ebbers, WorldCom's CEO, was convicted of financial crimes, WorldCom was forced to merge with MCI. One of the ramifications of this merger was the loss of WorldCom's sponsorship of the Sea Pines Heritage PGA golf tournament. The tournament funds the Heritage Foundation, a major community charity. This example illustrates

Accepted Answer

The example illustrates how the impact of unethical actions can reach beyond the corporation, causing harm to the community and charities that depend on the corporation's support. This highlights the importance of ethical decision-making and corporate social responsibility.

Question 9

Charges that firms are using sweatshop labor to produce their products are likely to occur during the __________ phase of the strategic marketing planning process.

Accepted Answer

Sweatshop labor is a concern related to the production phase of the marketing plan, which falls under the implementation stage. Therefore, charges of sweatshop labor are likely to occur during the implementation phase.

Question 10

The Harvest County School Board is concerned about deteriorating school facilities, combined with a shrinking budget. The board began by studying the issue, and then identified parents, children, teachers, staff, and taxpayers as groups who have a vested interest in the problem. The school board has listened to each group's concerns. In the Ethical Decision-Making Framework, its next action should be to

Accepted Answer

The next action in the Ethical Decision-Making Framework should be to engage in brainstorming and evaluate alternatives. This step involves generating different options to address the problem and evaluating the potential benefits, drawbacks, and consequences of each alternative before choosing a course of action. This step is crucial to ensure that the school board analyzes the problem thoroughly and explores all possible solutions before making a decision. Identifying issues of concern to lawmakers or evaluating the legal ramifications may be relevant but should come later in the decision-making process. Assessing the impact of its actions beyond the classroom is also necessary but should be done as part of the evaluation of alternatives.

Question 11

Denny is considering the question, "Did our actions have a negative impact on any stakeholder group?" Denny is addressing marketing ethical issues in the __________ phase of the strategic marketing planning process.

Accepted Answer

The answer of Denny is considering the question, "Did our...

Question 12

Multinational corporations are recognizing their responsibility to the people who make their products

Accepted Answer

Multinational corporations have a responsibility towards the people who are impacted by their operations, regardless of whether or not the workers are direct employees of the firm. This includes those who are involved in making their products in outsourced factories or through supply chains. Companies recognize this responsibility as a moral obligation towards these individuals and often take steps to ensure their welfare and safety, even if it means incurring additional costs.

Question 13

When looking at ethical issues associated with the strategic marketing planning process, questions

Accepted Answer

Ethical issues can arise throughout the entire strategic marketing planning process, so questions should vary at each stage to ensure ethical considerations are addressed appropriately.

Question 14

Garrett has just purchased a beer distributorship. He wants to increase the visibility of his firm in local markets, but he knows there are a number of regulations and socially accepted practices associated with promoting alcoholic beverages. According to the Framework for Ethical Decision Making, the first thing Garrett should do is to

Accepted Answer

The first step in the Framework for Ethical Decision Making is to identify the issues that need to be addressed. This helps in understanding the ethical concerns and regulations involved in promoting alcoholic beverages.

Question 15

The Henry Ford Health System (a health care provider) has set strict limits for pharmaceutical representatives, and will no longer allow doctors in its system to accept free lunches, gifts, or other perks from the pharmaceutical representatives. The Henry Ford Health System probably established this policy because

Accepted Answer

By setting limits for pharmaceutical representatives and disallowing acceptance of perks, the Henry Ford Health System reduces the possibility that doctors in its system might make unethical purchasing decisions to favor one particular pharmaceutical company over another. This policy promotes ethical behavior and prevents any potential conflicts of interest.

Question 16

After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision-making situation, all parties relevant to the decision should engage in

Accepted Answer

Brainstorming and evaluation of alternatives allows for all stakeholders to contribute ideas and perspectives on the situation, leading to a more comprehensive understanding of the issue and potential solutions. This approach also emphasizes collaboration and open communication, fostering a more ethical decision-making process. Legal discourse and a majority vote may not take into account the diverse perspectives of all stakeholders and may not necessarily result in the most ethical decision. Reidentification of issues and choosing a course of action are important steps, but should only be taken after the brainstorming and evaluation of alternatives have occurred.

Question 17

Rock-Bend Company is considering buying out a competing firm and closing most of the competitor's factories. The firm has identified the various stakeholders and their issues and gathered the available data. Everyone with an interest in the issue has engaged in brainstorming and evaluation of alternatives. Management reviewed and refined the alternatives, and then chose a course of action. If the managers are not confident about the decision, they should

Accepted Answer

If the managers are not confident about the decision, they should reexamine their alternatives. This will ensure that they have considered all possible options and can make an informed and well-thought-out decision. Lowering the offering price or choosing the least risky option may not necessarily address the lack of confidence and could lead to further issues down the line. Consulting customers may also be helpful, but it should not be the only solution.

Question 18

Darwin's company is facing a difficult ethical issue. The firm has identified the various stakeholders and their issues and gathered the available data. Everyone with an interest in the issue has engaged in brainstorming and evaluation of alternatives. Management reviewed and refined the alternatives. It should now choose the course of action that

Accepted Answer

Choosing the course of action that seems best after weighing the concerns of all stakeholders is the most ethical and responsible approach. It ensures that the decision takes into account the impact on all parties involved, not just the financial implications for the company. This approach also promotes long-term sustainability and enhances the relationship between the company and its stakeholders.

Question 19

After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision-making situation, __________ should engage in brainstorming and evaluation of alternatives.

Accepted Answer

In order to make an ethical decision that takes into account the perspectives and interests of all relevant stakeholders, it is important to engage all parties in the brainstorming and evaluation of alternatives. This can help ensure that the decision is both ethical and inclusive, and that potential trade-offs between different stakeholder interests are identified and addressed. While senior managers, key customers, elected officials, and individuals with competing interests may all have valuable input, it is important to involve all relevant parties in order to make the most informed and ethical decision possible.

Question 20

Many corporations are shifting from defined benefit to defined contribution retirement programs. When considering changes to retirement programs, the primary stakeholders are the

Accepted Answer

When considering changes to retirement programs, the primary stakeholders are the employees as they are the ones directly impacted by the changes. However, shareholders may also have a vested interest in the financial health and stability of the company's retirement program. Customers, marketing managers, and competition are not directly impacted by these types of program changes.

Quiz 4: Marketing Ethics