Question 1

Two former sales representatives of Amgen, a biotech company, alleged the company strongly encouraged its salesforce to search confidential medical records in dermatologist's offices to find names of patients that would benefit Amgen's drug Enbrel, a psoriasis treatment. After reporting this practice to the president, one rep was fired and the other resigned after receiving a poor performance review. Both sued Amgen, claiming they did not go along with the scheme because they objected to it as being unethical. The two sales representatives are

Accepted Answer

The two sales representatives are whistle-blowers, as they reported the unethical practice to the president and then faced negative consequences for their actions.

Question 2

The idea that organizations are part of a larger society and are accountable to that society for their actions is referred to as

Accepted Answer

Social responsibility refers to the idea that organizations have a responsibility to consider and address the impact of their actions on society and the environment. This includes being accountable for ethical and responsible behavior, beyond just generating profits for shareholders. Stakeholder responsibility is a related concept, but specifically refers to an organization's responsibility to consider and address the interests of all its stakeholders (e.g. employees, customers, suppliers, communities) and not just its shareholders. Profit responsibility refers to the idea that an organization's primary responsibility is to maximize profits for its shareholders. Utilitarianism and moral idealism are ethical theories that guide decision-making, but they are not specific to organizational responsibility.

Question 3

A personal moral philosophy that focuses on the greatest good for the greatest number by assessing the costs and benefits of the consequences of ethical behavior is referred to as __________.

Accepted Answer

Utilitarianism is a moral philosophy that prioritizes the greatest good for the greatest number of people. This is done by carefully assessing the costs and benefits of consequential ethical behavior. It takes into account the potential outcomes of an action and weighs them against the needs and preferences of the majority. Utilitarianism encourages individuals to take actions that will produce the maximum amount of happiness or well-being for the largest number of people.

Question 4

All of the following statements about a person's moral philosophy are true EXCEPT:

Accepted Answer

This statement is false. Moral philosophy can be learned through formal education, such as studying ethics or philosophy in college or university.

Question 5

According to the personal moral philosophy of __________, if the benefits exceed the costs, the behavior is ethical.

Accepted Answer

The personal moral philosophy described in the statement is utilitarianism, which focuses on maximizing overall happiness and minimizing overall suffering. Utilitarianism considers the costs and benefits of a behavior, and if the benefits outweigh the costs, the behavior is considered ethical.

Question 6

Western Digital, the Irvine, California-based maker of disk drives, recalled about 400,000 of its hard drives because of a faulty internal chip. The chip will not affect the disk drive motor until after six to twelve months of use. This delay in the problem's appearance means that many consumers would not think to blame the disk drive manufacturer. But, instead of taking the less expensive route of remaining quiet about the problem, Western Digital chose to offer replacement disk drives for all those that had the faulty chip. This action is an example of __________.

Accepted Answer

The answer of Western Digital, the Irvine, California-based maker of...

Question 7

Ultimately, ethical choices are based on

Accepted Answer

Ethical choices are ultimately based on the personal moral philosophy of the decision maker. While societal culture and norms, business culture and industry practices, and laws/regulations may influence decision making, ultimately it is up to the individual to determine what is ethical based on their own values and beliefs. Chance and opportunity are not typically considered factors in ethical decision making.

Question 8

Recently, Gap Inc. ended its relationship with 23 foreign production facilities due to code violations. Several closings occurred because of the use of child labor. In response to these events, the Gap created a large team whose purpose is to travel worldwide to ensure compliance with its Code of Vendor Conduct. This is an example of

Accepted Answer

The Gap's actions to create a team to ensure compliance with their Code of Vendor Conduct demonstrates social responsibility. Social responsibility refers to a business's obligation to act in a way that benefits society as a whole, beyond just maximizing profits. The Gap's decision to end relationships with production facilities violating its code, and its efforts to ensure compliance with the code, reflect a commitment to social responsibility.

Question 9

Moral idealism refers to a personal moral philosophy that

Accepted Answer

Moral idealism considers individual rights or duties as universal, regardless of the outcome. This means that an action is seen as morally right or wrong based on whether it conforms to a universal moral principle, and not necessarily based on the outcome or consequences of that action. This contrasts with utilitarianism, which is based on the idea of "the greatest good for the greatest number."

Question 10

Moral idealism refers to

Accepted Answer

Moral idealism refers to a personal moral philosophy that considers individual rights or duties as universal, regardless of the outcome. This means that individuals should do what is right and ethical, regardless of the consequences. Moral idealism is often contrasted with utilitarianism, which focuses on the greatest good for the greatest number by analyzing the costs and benefits of ethical behavior.

Question 11

Why did 3M phase out the production of a chemical used as an ingredient in its Scotchgard fabric protector?

Accepted Answer

Traces of the potentially harmful chemical called perfluorooctanoic acid (PFOA) were found in both the environment and humans, leading 3M to voluntarily phase out the production of Scotchgard that contained the chemical.

Question 12

3M Scotchgard Photo -Consider the 3M Scotchgard photo above. 3M voluntarily stopped the production of a chemical used as an ingredient in its Scotchgard fabric protector because minute amounts were found in the tissues of both animals and humans and the company feared there could be health affects at high levels. The moral philosophy that guided 3M in making this decision was __________.

Accepted Answer

Moral idealism is a philosophy that focuses on preserving moral rights in all situations, even if there are negative consequences. In this case, 3M's decision to stop production of the chemical in Scotchgard is an example of moral idealism because they chose to prioritize potential health risks over profitability.

Question 13

The owners of Ben & Jerry's Homemade, Inc. adhere to the belief that the company should not harm the environment in any way but actually improve it. This is an example of __________.

Accepted Answer

Moral idealism is a philosophical theory that emphasizes moral principles and ideals over practical considerations, and prioritizes ethical behavior and responsibility towards society and the environment. This aligns with the belief of Ben & Jerry's owners that the company's operations should not harm the environment but rather have a positive impact on it.

Question 14

A personal moral philosophy that considers individual rights or duties as universal, regardless of the outcome, is referred to as __________.

Accepted Answer

Moral idealism is a personal moral philosophy that places emphasis on individual rights and duties as being universal, regardless of the outcomes of certain actions or decisions. This philosophy is sometimes referred to as deontological ethics, which is based on the moral principles of duty and obligation.

Question 15

Cosco, the world's largest children's products company, recently developed a high chair that could be used as an infant feeding seat, a youth chair, a play chair, a booster chair, and when reclined, an infant bed. It sold for $49. Cosco rushed the chair into production before it was properly safety-tested. When some children were injured using this chair, Cosco denied culpability. The firm said that only a few consumers had trouble with the chair and these probably didn't assemble them correctly. Most consumers were very satisfied with the chair and had no problems. Cosco's actions exemplify which of the following philosophies?

Accepted Answer

Cosco's actions exemplify the utilitarian philosophy where they prioritized the satisfaction of the majority of consumers over the safety concerns of a few. They rushed the chair into production without proper safety-testing and when some children were injured, they denied culpability by blaming consumers for not assembling it correctly.

Question 16

Social responsibility refers to

Accepted Answer

Social responsibility refers to the idea that organizations are accountable to society as a whole for their actions, and should strive to act in ways that benefit society as well as themselves. This can include things like ethical business practices, environmental sustainability, and support for community initiatives. It is a way of thinking about business that goes beyond profit maximization and recognizes the broader impact that companies can have on society.

Question 17

The personal moral philosophy of utilitarianism underlies the economic tenets of

Accepted Answer

Utilitarianism emphasizes the greatest good for the greatest number, which aligns with the pursuit of maximum utility and profit in a capitalist economic system.

Question 18

Which of the following statements about social responsibility is most accurate?

Accepted Answer

Social responsibility refers to an organization's obligation to act in ways that support society's interests and values, and as such, organizations are accountable to society for their actions. Option A is incorrect because there are multiple ways to categorize social responsibility, and not all sources agree on the specific concepts. Option C is incorrect because it only addresses one aspect of social responsibility, and Option D is incorrect because understanding an organization's duty can be complex and depend on the context. Option E is incorrect because social responsibility can be learned and developed, and is not solely dependent on an individual's innate beliefs.

Question 19

A moral philosophy that exists in the Consumer Bill of Rights and is favored by moral philosophers and consumer interest groups is referred to as __________.

Accepted Answer

The moral philosophy referred to in the question is moral idealism, which emphasizes basic rights and privileges of individuals as consumers. This philosophy is reflected in the Consumer Bill of Rights and is supported by moral philosophers and consumer interest groups. Social responsibility, utilitarianism, hedonism, and the Golden Rule are other moral philosophies that are not specifically mentioned in the context of the Consumer Bill of Rights.

Question 20

Two prominent personal moral philosophies that have direct bearing on marketing practice are

Accepted Answer

Moral idealism emphasizes ethical principles and values, and holds that certain actions are inherently right or wrong, regardless of their consequences. Utilitarianism, on the other hand, evaluates the moral worth of an action based on its ability to produce the greatest happiness for the greatest number of people. Both of these philosophies have direct implications for marketing practice, as companies must weigh the ethical ramifications of their actions and balance the interests of various stakeholders.

Quiz 3: Understanding the Marketing Environment, Ethical Behavior, and Social Responsibility