Deck 4: Conscious Marketing, Corporate Social Responsibility, and Ethics

Question 1

Ethos Water donates 2 percent of its profits to children in need of clean water. This action demonstrates that Ethos Water is a firm with a strong ethical climate.

Answer 1

False

Question 2

Brainstorming in the ethical decision-making framework occurs immediately following the identification of issues.

Answer 2

False

Question 3

Conscious marketing is governed by four overriding principles that guide a firm's economic value creation.

Answer 3

False

Question 4

The first step in ethical decision making is to gather information and identify stakeholders.

Question 5

The Golden Rule test asks the question, "Would I like to be on the receiving end of this action and all its potential consequences?"

Question 6

Key corporate social responsibility (CSR) stakeholders include employees, customers, society, and the marketplace.

Question 7

The consideration of stakeholders and their interdependence is one of the four overriding principles of conscious marketing.

Question 8

Marketing ethics refers to the moral or ethical dilemmas that might arise in a business setting, according to various moral and ethical principles that might arise in a business setting, and any special duties or obligations that apply to persons engaged in commerce.

Question 9

When companies embrace conscious marketing, they appeal only to their shareholders. This unique view on shareholders is absolutely critical to conscious marketing.

Question 10

Marketing ethics can involve societal issues such as the sale of products or services that may damage the environment or global issues such as the use of child labor.

Question 11

Badger Hardware was planning on raising the pay of its managers, but not its frontline employees. To determine the potential ethical issues, it should first identify the issues involved so that it can gather facts related to those issues.

Question 12

One way in which corporate social responsibility (CSR) differs from conscious marketing is that CSR takes a holistic, ecosystem view of business as a complex, adaptive system.

Question 13

From a conscious marketing perspective, social responsibility is at the core of the business because it advocates a higher purpose that goes beyond making a profit; it also views the community and the environment as key stakeholders.

Question 14

Walmart engages in CSR programs across its triple bottom line: by committing to reduce its carbon footprint, donating more than $1 billion in cash and in-kind items to charitable causes per year, and maintaining strong profits.

Question 15

Genetically modified organisms, or GMOs, appear in many of the foods that U.S. consumers eat daily. Many consumers, concerned about the negative health effects of GMOs, wish to know which foods contain them. Although GMO labeling is a federal requirement, some firms, such as Whole Foods, have been able to bypass this law in most cases.

Question 16

A roofing company agreed to complete a job in one week and collected a 50 percent deposit, but never showed up to do the job. The same roofing company then donated $6,000 to a local children's hospital. The roofing company could be considered socially responsible.

Question 17

A common view in today's business climate is that the only responsibility of a business is to its shareholders, so its only purpose is to make a profit.

Question 18

Corporate social responsibility refers to the coordinated actions of government organizations to address the ethical, social, and environmental impacts of business operations.

Question 19

BlendMate, a firm that manufactures high-end blenders, donates $10 per blender sold to a local food bank. This is a form of corporate social responsibility.

Question 20

Stakeholders typically include corporate shareholders and customers; past, current, and prospective employees and their families; supply chain partners; government agencies; the physical environment; and members of the communities in which the firm operates.

Question 21

When a firm embraces conscious marketing

A) its employees act socially responsibly, even if the firm does not.
B) it donates a lot to the community but does not always act ethically.
C) it focuses on selling products and services that make a profit.
D) it maintains its independence from the larger community.
E) its programs are socially responsible, and its employees act ethically responsibly.

Question 22

In the ________ stage, a firm will decide what level of commitment to its ethical policies and standards it is willing to declare publicly and how the firm plans to balance the needs of its various stakeholders.

A) brainstorming
B) implementation
C) planning
D) control
E) evaluation

Question 23

Which of the following statements differentiates conscious marketing from CSR?

A) It recognizes that business is a subset of society.
B) It sees limited overlap between business and the planet.
C) It is often grafted on to traditional business model.
D) It reflects a mechanistic view of business.
E) It is independent of corporate purpose or culture.

Question 24

An example in the text describes a campaign by Grey Poupon that involved a Facebook campaign targeted toward people who had "good taste." The campaign was criticized for privacy issues that made it unethical. This occurred during the implementation phase of the strategic marketing planning process.

Question 25

New real estate disclosure regulations require sellers and their agents to tell prospective buyers about any existing problems with the property. Previously, they were expected only to answer buyers' questions. The new regulation addressed the marketing ethics problem of

A) high-pressure sales techniques.
B) deceptive pricing tactics.
C) misrepresentation of company data.
D) misleading advertising.
E) withholding information.

Question 26

Tipco Computer Company decided to market its tablet computers to preschoolers, even though the tablets were better suited for much older children. This potentially unethical activity takes place during the control phase of the strategic marketing planning process.

Question 27

The most basic corporate social responsibility to employees is to ensure the highest pay for the work performed.

Question 28

All of the following tests are included in the ethical decision-making metric except

A) the publicity test.
B) the legality test.
C) the moral mentor test.
D) the transparency test.
E) the admired observer test.

Question 29

When marketers work in controversial or polluting industries such as tobacco or fossil fuels, their central activities largely bar them from becoming

A) ethical professionals.
B) conscious marketers.
C) profitable.
D) successful.
E) recognized.

Question 30

Once the marketing strategy is implemented, controls must be in place to be certain that the firm has actually done what it has set out to do.

Question 31

In the ethical decision-making metric, the question that asks "Would I want the person I admire most to see me doing this?" applies to the

A) publicity test.
B) admired observer test.
C) moral mentor test.
D) transparency test.
E) person in the mirror test.

Question 32

When Walmart issued new standards for livestock products that were raised on food without antibiotics or artificial growth hormones, it considered multiple ________, including the ranchers that supply the food, its customers, and animal welfare groups.

A) stakeholders
B) investors
C) marketing executives
D) bankers
E) corporate shareholders

Question 33

________ provides a detailed, multipronged "Statement of Ethics" that can serve as a foundation for marketers.

A) Sales and Marketing Executives International
B) The American Marketing Association
C) The Better Business Bureau
D) The eMarketing Association
E) The Advertising Association of America

Question 34

The ________ for natural skin care company Burt's Bees is to "create natural, Earth-friendly personal care products formulated to help you maximize your well-being and that of the world around you."

A) mission statement.
B) market analysis
C) company description
D) financial plan
E) executive summary

Question 35

Pepsi has cooperated with America on the Move to improve many of its products and their labels, such as reducing the saturated fat in its Frito-Lay Ruffles. This form of social responsibility most directly impacts shareholders.

Question 36

Business ethics and marketing ethics are synonymous terms.

Question 37

The sale of environmentally damaging products made by child labor evokes which conscious marketing principle?

A) recognition of marketing's greater purpose
B) consideration of stakeholders and their interdependence
C) the presence of conscious leadership
D) the understanding that decisions are ethically based
E) focus on creating a corporate culture

Question 38

Which of the following statements differentiates CSR from conscious marketing?

A) It incorporates higher purpose and a caring culture.
B) It takes a holistic, ecosystem view of business as a complex adaptive system.
C) It understands that decisions are ethically based.
D) Social responsibility is at the core of the business.
E) It sees limited overlap between the business and society.

Question 39

Business ethics is concerned with all of the following except

A) distinguishing between moral decisions in a business setting.
B) distinguishing between ethical decisions that arise in a business setting.
C) any special duties or obligations that apply to persons engaged in commerce.
D) moral and ethical principles that might arise in a business setting.
E) societal issues such as the sale of products or services that may damage the environment.

Question 40

Conscious marketing encompasses all of the following overriding principles except

A) recognition of marketing's greater purpose.
B) recognition of the company's bottom line.
C) consideration of stakeholders and their interdependence.
D) the presence of corporate leadership, creating a corporate culture.
E) the understanding that decisions are ethically based.

Question 41

Compared to the average company, firms with strong ethical climates tend to

A) employ more business development consultants.
B) offer more goods and services.
C) be more socially responsible.
D) invest more in sales training software.
E) have higher turnover.

Question 42

The XYZ firm is in Step 4 of its ethical decision-making process. Executives were asked to take the publicity test using an ethical-decision making metric. All scores were in the "No" column. What does this mean?

A) The situation is not ethically troubling to the executives.
B) The executives need to step back and reflect on how they wish to proceed.
C) The situation is ethically troubling to the executives.
D) The executives need to retake the test or take the moral mentor test instead.
E) The results are invalid and the executives need to take the transparency test.

Question 43

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

A) engage in legal discourse.
B) vote, with the majority deciding the best course of action.
C) reidentify the issues.
D) choose a course of action.
E) brainstorm for alternatives.

Question 44

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 evaluating alternatives. Management reviewed and refined the alternatives. It should now choose the course of action that

A) maximizes profits.
B) creates the least possible publicity.
C) involves the fewest employees.
D) minimizes costs.
E) generates the best solution for the stakeholders.

Question 45

Courses of action such as halting the market research project, making responses anonymous, and instituting training on the AMA Code of Ethics for all researchers would be identified during which step of the ethical decision-making process?

A) identify issues
B) gather information and identify stakeholders
C) choose a course of action
D) brainstorm alternatives
E) evaluate the decision

Question 46

When making decisions, managers often have to decide between doing what is beneficial for the firm in the short term, and what is beneficial for both the firm and society in the long term. To address this conflict, a firm must

A) evaluate its quarterly profit statement from an ethics standpoint.
B) cut back on staff and staff benefits to meet the firm's immediate, short-term goals.
C) develop a short-terms solution to meet the long-term needs of society.
D) align the short-term goals of each employee with the long-term, overriding goals of the firm.
E) continue to adhere to all the legal standards set forth by the industry.

Question 47

Hisaoki picks up the local newspaper and reads a stinging letter to the editor criticizing his beverage company for supporting a sporting event for children with disabilities. 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. Hisaoki's company failed to

A) identify issues.
B) promote the firm's corporate social responsibility efforts.
C) analyze the needs of the industry.
D) brainstorm and evaluate alternatives.
E) choose a course of action.

Question 48

Imagine the use (or misuse) of data collected from consumers by a marketing research firm. One of the issues that might arise is the way the data are collected. At what step in the framework for ethical decision making would this issue be identified by the marketing research firm?

A) Step 1
B) Step 2
C) Step 3
D) Step 4
E) Step 5

Question 49

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.

A) planning
B) control
C) implementation
D) brainstorming
E) situation analysis

Question 50

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

A) shareholders.
B) employees.
C) customers.
D) marketing managers.
E) competition.

Question 51

Although the leaders of Enron Corporation were manipulating the company's finances for their personal benefit, the company continued to be a major donor to Houston area charities. Enron had unethical business practices,

A) but practiced marketing ethics.
B) and falsified the company's finances through charitable donations.
C) but created a local ethical business climate.
D) but demonstrated corporate social responsibility.
E) and manipulated the public sentiment for its own benefit.

Question 52

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

A) identify issues of concern to lawmakers.
B) assess impact of its actions beyond the classroom.
C) engage in brainstorming alternatives.
D) choose a course of action.
E) evaluate the legal ramifications.

Question 53

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 evaluating alternatives.

A) the senior managers most involved
B) key customers
C) elected officials
D) all parties relevant to the decision
E) any individuals with competing interests

Question 54

The ethical decision-making framework includes all of the following steps except

A) identify issues.
B) promote the firm's corporate social responsibility efforts.
C) gather information and identify stakeholders.
D) brainstorm alternatives.
E) choose a course of action.

Question 55

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

A) the need to identify possible ethical issues.
B) that unethical actions can impact stakeholders beyond the corporation.
C) that unethical firms cannot be socially responsible.
D) the lack of information needed to make ethical decisions.
E) the questionable advantage of social responsibility.

Question 56

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 evaluating 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

A) lower their offering price for the competing firm.
B) reexamine their alternatives.
C) consult customers.
D) trust their instincts and move forward.
E) choose the least risky option.

Question 57

A manager feels confident that earnings will increase in the next few months and therefore believes it will benefit himself, his branch, his employees, and his shareholders to exaggerate current earnings just a little. This decision

A) has serious long-term consequences for the firm and does not align with a conscious marketing approach.
B) carefully considers the overall goals of the firm and reflects a conscious marketing approach.
C) places the needs of its shareholders ahead of the needs of the firm, reflecting a conscious marketing approach.
D) reflects a careful implementation of the ethical decision-making framework and aligns with a conscious marketing approach.
E) demonstrates both socially and ethically responsible behavior on the manager's part.

Question 58

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. The first thing Garrett should do is to

A) identify issues that need to be addressed.
B) promote the firm's corporate social responsibility efforts.
C) gather information and identify stakeholders.
D) brainstorm alternatives.
E) choose a course of action.

Question 59

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 evaluating alternatives. ________ then review and refine these alternatives, and choose a course of action.

A) Company leaders and managers
B) The firm's lawyers
C) Key customers
D) Community leaders
E) All stakeholders

Question 60

All of the following statements regarding corporate social responsibility are true except

A) firms believe that they have legal and economic duties in addition to responsibilities to society.
B) a firm's responsibilities to society are not associated with the demands, expectations, requirements, and desires of various stakeholders.
C) CSR can be defined as context-specific actions and policies, taking stakeholders' expectations into account, to achieve what is referred to as the triple bottom line.
D) today, virtually all large and well-known companies engage in some form of CSR.
E) CSR actions are voluntary.

Question 61

How might a technology company like Apple ensure that it behaves in a socially responsible way toward its employees?

A) It can pay at least minimum wage when the law requires it.
B) It can adhere to government-mandated safety standards in the workplace.
C) It can ensure that pay practices are fair at all levels of the company.
D) It can ensure that its packaging materials are recyclable.
E) Social responsibility isn't relevant where employees are concerned; they are paid for their work and that's enough.

Question 62

All of the following are questions posed in the ethical decision-making metric except

A) Would I want to see this action described on the front page of the local paper?
B) Will this action help advance my career?
C) Would the person I admire most engage in this activity?
D) Can I give a clear explanation for my action?
E) Will I be able to look at myself in the mirror and respect what I see?

Question 63

For corporate leaders, their firm's ability to ________ must be of paramount importance.

A) balance profits and expenses
B) balance employees' needs with the needs of the environment
C) balance shareholder interests with the needs of society
D) benefit shareholders only
E) make a profit

Question 64

If Melissa decides to sell the best ice cream on earth, and intends to establish a strong ethical climate in her organization, during which phase of the strategic marketing planning process should she introduce ethical considerations?

A) planning
B) implementation
C) control
D) experience
E) ethics

Question 65

When integrating conscious marketing into a marketing strategy, a key task is to ensure that all managers are evaluated on their actions from a conscious marketing perspective. This action would take place during which stage of the strategic marketing planning process?

A) brainstorming phase
B) planning phase
C) implementation phase
D) control phase
E) revision phase

Question 66

When Toyota owners began to report problems with sticking accelerator pedals and nonfunctioning brakes, Toyota at first ignored or rejected the claims. Eventually, the company evaluated the issue and issued a recall. Which of the four steps of the ethical decision-making framework was Toyota performing when it recalled several of its 2007-2010 models?

A) assess risk
B) identify issues
C) gather information and identify stakeholders
D) brainstorm and evaluate alternatives
E) choose a course of action

Question 67

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

A) planning
B) implementation
C) control
D) evolution
E) marketing mix

Question 68

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

A) planning
B) implementation
C) control
D) evolution
E) marketing mix

Question 69

Elena is the CEO of a small manufacturing firm. She is concerned with meeting the investment objectives of the firm's shareholders, which are at odds with the firm's CSR programs. Deep down, Elena's main concern is making sure the firm achieves a profit, which reflects an attitude that

A) a firm's responsibilities go beyond its economic and legal duties.
B) resists the idea that firms need to acknowledge the impact of their actions on others.
C) typical of nearly all small manufacturing firms.
D) a reaction to regulatory directives of the U.S. government.
E) fails to respect the ethical standards of business.

Question 70

How might a technology company like Apple ensure that it behaves in a socially responsible way toward its customers?

A) It can protect the privacy of personal information collected on its website.
B) It can adhere to government-mandated safety standards in its stores.
C) It can ensure that it pays its employees fairly.
D) It can ensure that its packaging materials are recyclable.
E) Social responsibility isn't relevant where customers are concerned; it has to do with serving society as a whole.

Question 71

When companies embrace ________, they appeal not only to their shareholders but also to all of their key stakeholders.

A) social media
B) conscious marketing
C) CSR
D) profit sharing
E) conscious advertising

Question 72

How might Starbucks ensure that it behaves in a socially responsible way toward members of its supply chain?

A) It can pay its employees minimum wage as required by law.
B) It can use cups made from recycled paper.
C) It can offer healthy drinks and snacks in its stores.
D) It can purchase coffee beans from suppliers who pay coffee growers a fair price.
E) Social responsibility isn't relevant where channel partners are concerned; it has to do with serving society as a whole.

Question 73

Alicia has been asked to approve a marketing campaign that promotes food products to children. She is concerned that the food products are not particularly nutritious, although they are not as bad as the products sold by competitors. The ethical decision-making metric will allow Alicia to

A) brainstorm alternative food products to promote in the campaign.
B) consider the profit potential of approving the campaign.
C) assess the likelihood that parents will purchase the products for their children.
D) use a series of tests to evaluate alternative courses of action.
E) disregard personal ethical considerations in the decision-making process.

Question 74

All of the following terms are generally associated with the definition of corporate social responsibility except

A) voluntary.
B) stakeholders.
C) social impact.
D) environmental impact.
E) profit.

Question 75

Marketers that include ethical policies and standards in the firm's mission or vision statements are introducing these concepts at which stage of the strategic marketing planning process?

A) implementation phase
B) control phase
C) planning phase
D) evaluation phase
E) idea generation phase

Question 76

Anupam's company manufactures industrial ladders. He is concerned that consumers who do not understand ladder safety will purchase these extra-tall ladders and injure themselves. During which phase of the strategic marketing planning process should this issue be addressed?

A) control
B) planning
C) implementation
D) design
E) ethics

Question 77

For every consumer who purchases a pair of TOMS shoes for $55, the company promises that a needy child will receive a pair of shoes. TOMS shoes is actively engaging in

A) corporate social responsibility.
B) business ethics.
C) marketing ethics.
D) environmental marketing.
E) overpricing of its products.

Question 78

During the ________ phase of the strategic marketing planning process, marketers utilize systems to check whether each conscious marketing issue raised in earlier phases was addressed.

A) implementation
B) control
C) planning
D) assessment
E) social responsibility

Question 79

A meat-packing company discovers that six months ago it unknowingly distributed meat from a cloned cow. The firm is unaware of any specific risks to humans consuming the meat; however, some scientists have raised questions, and some consumers are afraid of possible future problems. The meat company has to decide whether or not to make this matter public. How should it begin the process of making an ethical decision?

A) The company should brainstorm the available alternatives.
B) The company should ask its managers to vote for or against public disclosure.
C) The company should let the board of directors decide what to do.
D) The company should identify the issues raised by the situation.
E) The company should find out who purchased the meat and offer them refunds in return for their silence.

Question 80

CSR can be described as context-specific actions and policies, taking stakeholders' expectations into account, to achieve what is referred to as the triple bottom line. The triple bottom line includes ________ performance.

A) economic, social, and environmental
B) economic, social, and political
C) financial, economic, and social
D) social, environmental, and political
E) financial, social, and environmental