Deck 18: Ethics and Socially Responsible Marketing
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Deck 18: Ethics and Socially Responsible Marketing
1
Which of the following is true about creating an ethical climate in a workplace?
A)It presumes employees to be exclusively responsible for their ethical conduct.
B)It requires a set of explicit rules and implicit understandings that govern all the transactions of a firm.
C)It involves enforcing the ethical values of the top management on unwilling employees.
D)It involves developing different interpretations of the company's stated ethical values.
E)It requires training employees to forgo their personal goals and prioritize the firm's goals.
A)It presumes employees to be exclusively responsible for their ethical conduct.
B)It requires a set of explicit rules and implicit understandings that govern all the transactions of a firm.
C)It involves enforcing the ethical values of the top management on unwilling employees.
D)It involves developing different interpretations of the company's stated ethical values.
E)It requires training employees to forgo their personal goals and prioritize the firm's goals.
B
2
Which of the following statement is NOT true about ethical issues associated with marketing decisions?
A)Marketers and sales professional tanks poorly in rating of the most trusted professions.
B)Customers pay attention to issues related to corporate ethics and social responsibility
C)Many executives believe that creating an ethical climate should be firm's number one priority
D)Generally speaking, customers do not trust professionals.
E)Customers are skeptical of marketing.
A)Marketers and sales professional tanks poorly in rating of the most trusted professions.
B)Customers pay attention to issues related to corporate ethics and social responsibility
C)Many executives believe that creating an ethical climate should be firm's number one priority
D)Generally speaking, customers do not trust professionals.
E)Customers are skeptical of marketing.
D
3
Which of the following professions is often singled out as the root cause of a host of ethical concerns?
A)Management
B)Finance
C)Marketing
D)Administration
E)Research and development
A)Management
B)Finance
C)Marketing
D)Administration
E)Research and development
C
4
Which of the following refers to a branch of ethical study that examines ethical rules and principles within a commercial context?
A)Business ethics
B)Ethical climate
C)Corporate social responsibility
D)Consumerism
E)Moral mentor metric
A)Business ethics
B)Ethical climate
C)Corporate social responsibility
D)Consumerism
E)Moral mentor metric
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5
Which of the following is an example of individual consumer issue?
A)Child labour
B)Environmental pollution
C)Violation of a foreign exchange act
D)Sweatshop labour
E)Deceptive advertising
A)Child labour
B)Environmental pollution
C)Violation of a foreign exchange act
D)Sweatshop labour
E)Deceptive advertising
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6
Howard, the sales manager of a real estate company, is not able to meet the sales target for the current quarter.However, he is confident that the sales for the next quarter will improve.Which of the following actions indicates Howard's lack of personal ethics?
A)He calls a team meeting and asks the team to double its efforts to meet the sales target in the next quarter.
B)He devises an incentive scheme to increase sales and to encourage his team.
C)He inflates the sales figures for the current quarter so that it looks better for his branch and himself.
D)He sends an email to the regional manager apologizing and explaining the reason he was unable to meet the sales target.
E)He calls a team meeting to brainstorm and figure out why sales targets were not met for the current quarter.
A)He calls a team meeting and asks the team to double its efforts to meet the sales target in the next quarter.
B)He devises an incentive scheme to increase sales and to encourage his team.
C)He inflates the sales figures for the current quarter so that it looks better for his branch and himself.
D)He sends an email to the regional manager apologizing and explaining the reason he was unable to meet the sales target.
E)He calls a team meeting to brainstorm and figure out why sales targets were not met for the current quarter.
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7
Lawrence has recently joined a publishing company.As part of his initial training, he attends a session on marketing ethics.Through the session he learns that the basic starting point for creating a strong ethical climate within a marketing firm is having a(n):
A)ethical retreat seminar.
B)set of values that guides behaviour.
C)contractual system.
D)firm social commitment strategy.
E)set of explicit rules to guide its corporate social responsibility programs
A)ethical retreat seminar.
B)set of values that guides behaviour.
C)contractual system.
D)firm social commitment strategy.
E)set of explicit rules to guide its corporate social responsibility programs
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8
Establishing an ethical business climate requires all employees to be dedicated to that goal because:
A)their career prospects solely depend upon their ethical decisions.
B)managers rarely enforce values unless employees ask them to do so.
C)customers are only vaguely interested in a firm's ethical standards.
D)employees lack the visionary scope to understand the ramifications of unethical behaviour.
E)the roots of ethical conflict often are the competing values of individuals.
A)their career prospects solely depend upon their ethical decisions.
B)managers rarely enforce values unless employees ask them to do so.
C)customers are only vaguely interested in a firm's ethical standards.
D)employees lack the visionary scope to understand the ramifications of unethical behaviour.
E)the roots of ethical conflict often are the competing values of individuals.
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9
Special duties or obligations that apply to persons engaged in commerce fall under:
A)business ethics.
B)ethical climate.
C)corporate social responsibility.
D)consumerism.
E)moral mentor metric.
A)business ethics.
B)ethical climate.
C)corporate social responsibility.
D)consumerism.
E)moral mentor metric.
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10
Deceptive advertising and promotion of inferior products are examples of unethical practices related to:
A)environment.
B)marketing.
C)marketplace.
D)finance.
E)labour.
A)environment.
B)marketing.
C)marketplace.
D)finance.
E)labour.
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11
The Canadian Marketing Association's Code of Ethics is designed mainly to:
A)promote marketing in Canada and overseas.
B)establish and maintain standards for the conduct of marketing.
C)catch deceptive marketers and inform the public of them.
D)establish legal procedures relating to deceptive marketing.
E)establish an association for marketers to share their experiences.
A)promote marketing in Canada and overseas.
B)establish and maintain standards for the conduct of marketing.
C)catch deceptive marketers and inform the public of them.
D)establish legal procedures relating to deceptive marketing.
E)establish an association for marketers to share their experiences.
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12
One of the reasons that people act unethically is because:
A)people are innately corrupt.
B)they must choose between conflicting outcomes.
C)everyone acts unethically.
D)they believe that their actions will not lead to negative consequences.
E)people rarely understand the consequences of unethical actions.
A)people are innately corrupt.
B)they must choose between conflicting outcomes.
C)everyone acts unethically.
D)they believe that their actions will not lead to negative consequences.
E)people rarely understand the consequences of unethical actions.
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13
Using profit as the sole guide for corporate action can lead to:
A)increased short-run and long-run profitability.
B)short-term profits but long-term loss of customers.
C)long-term profitability but short-term losses.
D)increased corporate social responsibility.
E)an increased customer base in the long run.
A)increased short-run and long-run profitability.
B)short-term profits but long-term loss of customers.
C)long-term profitability but short-term losses.
D)increased corporate social responsibility.
E)an increased customer base in the long run.
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14
Which of the following should be of paramount importance to marketers?
A)Profitability in the long run
B)Maintaining consumer trust
C)Profitability in the short run
D)Meeting targets of unit sales
E)Interaction with the development team
A)Profitability in the long run
B)Maintaining consumer trust
C)Profitability in the short run
D)Meeting targets of unit sales
E)Interaction with the development team
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15
The set of values within a marketing firm or in the marketing division of any firm that guides decision making and behaviour is referred to as:
A)corporate social responsibility.
B)accuracy of representation.
C)ethical climate.
D)explicit rules.
E)legal provision.
A)corporate social responsibility.
B)accuracy of representation.
C)ethical climate.
D)explicit rules.
E)legal provision.
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16
Almost every organization includes values and ethics in its mission statement, but the establishment of an ethical business climate primarily requires:
A)clearly stated regulatory requirements.
B)legal training for labourers.
C)weekly reminder seminars.
D)commitment from senior management.
E)cooperation from competitor management.
A)clearly stated regulatory requirements.
B)legal training for labourers.
C)weekly reminder seminars.
D)commitment from senior management.
E)cooperation from competitor management.
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17
To create an ethical climate in a workplace, what must occur after employees understand the company's values?
A)Conducting an ethical retreat seminar
B)Establishing a contractual system
C)Identifying the issues
D)Developing explicit rules for transactions
E)Establishing a system of control
A)Conducting an ethical retreat seminar
B)Establishing a contractual system
C)Identifying the issues
D)Developing explicit rules for transactions
E)Establishing a system of control
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18
Once the explicit rules and implicit understandings that govern all the transactions of a firm are in place, there must be:
A)a system of controls that rewards appropriate behaviour and punishes inappropriate behaviour.
B)a discussion on the necessity of following ethical practices in business.
C)weekly reminder seminars to enforce guidelines.
D)commitment from customers to accept these rules.
E)cooperation from competitors to avoid conflicting outcomes.
A)a system of controls that rewards appropriate behaviour and punishes inappropriate behaviour.
B)a discussion on the necessity of following ethical practices in business.
C)weekly reminder seminars to enforce guidelines.
D)commitment from customers to accept these rules.
E)cooperation from competitors to avoid conflicting outcomes.
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19
Which of the following is the first step in the process of creating a strong ethical climate within a marketing firm?
A)Conducting an ethical retreat seminar
B)Establishing a contractual system
C)Having a set of values that guides decision making
D)Developing explicit rules for transactions
E)Establishing a system of control
A)Conducting an ethical retreat seminar
B)Establishing a contractual system
C)Having a set of values that guides decision making
D)Developing explicit rules for transactions
E)Establishing a system of control
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20
The use of sweatshop labour is an issue most closely associated with:
A)global marketing.
B)internal and controllable marketing.
C)individual consumers.
D)locational privacy.
E)media.
A)global marketing.
B)internal and controllable marketing.
C)individual consumers.
D)locational privacy.
E)media.
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21
Molloy Inc.has an exclusive internal research department that supports its ethical commitment to offer healthy food products.The company also encourages its employees to donate to various charities.Given this information, which of the following is being best exemplified by Molloy's activities?
A)Zone of tolerance
B)The golden rule test
C)Procedural fairness
D)Corporate social responsibility
E)Locational privacy
A)Zone of tolerance
B)The golden rule test
C)Procedural fairness
D)Corporate social responsibility
E)Locational privacy
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22
According to the Conference Board of Canada, which of the following is regarded as the business issue of the 21stcentury?
A)Sustainable supply chain
B)Personal ethics
C)Consumerism
D)Corporate social responsibility
E)Locational privacy
A)Sustainable supply chain
B)Personal ethics
C)Consumerism
D)Corporate social responsibility
E)Locational privacy
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23
Corporate social responsibility means firms are committing time and resources to projects in the community that:
A)add cost-based value to customers.
B)prove critics wrong.
C)will increase its short-term profits.
D)may not directly relate to generating profit.
E)display the firm's productivity mission.
A)add cost-based value to customers.
B)prove critics wrong.
C)will increase its short-term profits.
D)may not directly relate to generating profit.
E)display the firm's productivity mission.
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24
Coinage Inc., an international financial services company, supports many social causes by donating a share of its net profit to the community in which it operates.However, Coinage lacks transparency in many of its transactions and failed to provide fair wages to its employees.Given this information, which of the following best describes the activities of Coinage?
A)Socially responsible firm involved in unethical practices
B)Neither ethical nor socially responsible
C)A firm with a strong focus on the triple bottom line
D)Both ethical and socially responsible
E)Ethical firm not involved with the larger community
A)Socially responsible firm involved in unethical practices
B)Neither ethical nor socially responsible
C)A firm with a strong focus on the triple bottom line
D)Both ethical and socially responsible
E)Ethical firm not involved with the larger community
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25
Kosher Aqua Inc., a manufacturer of bottled water, claims that its bottles are manufactured with 60 percent less plastic content compared to its competitors' bottles.It further advises consumers to crush the bottles and recycle them after use.Given this information, Kosher Aqua is trying to focus consumer attention on:
A)the competitor's deceptive marketing strategy.
B)its cost-consciousness and desire to give more value for money.
C)its socially responsible business practices.
D)its organizational culture and ethical standards.
E)the quality of its packaging and efficiency of its distribution networks.
A)the competitor's deceptive marketing strategy.
B)its cost-consciousness and desire to give more value for money.
C)its socially responsible business practices.
D)its organizational culture and ethical standards.
E)the quality of its packaging and efficiency of its distribution networks.
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26
Which of the following is addressed by a company that undertakes corporate social responsibility?
A)Its customer service responsibility
B)The ethics of its business operations
C)Its competitive advantage
D)The creation of business opportunities
E)The profitability of its business
A)Its customer service responsibility
B)The ethics of its business operations
C)Its competitive advantage
D)The creation of business opportunities
E)The profitability of its business
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27
Consumerism is a(n):
A)movement created by industry intended to increase its ethical image.
B)movement created by marketers aimed at encouraging consumers to practice ethical purchase behaviour.
C)policy that supports the use of patents, copyrights, and trademarks to protect intellectual property.
D)social movement aimed at protecting consumers from business practices that infringe upon their rights.
E)idea which promotes ethnocentric views that make another country's products "out-group" products.
A)movement created by industry intended to increase its ethical image.
B)movement created by marketers aimed at encouraging consumers to practice ethical purchase behaviour.
C)policy that supports the use of patents, copyrights, and trademarks to protect intellectual property.
D)social movement aimed at protecting consumers from business practices that infringe upon their rights.
E)idea which promotes ethnocentric views that make another country's products "out-group" products.
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28
Which of the following terms best describes the voluntary actions taken by a company to address the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders?
A)Marketing ethics
B)Consumerism
C)Accuracy of representation
D)Corporate social responsibility
E)Locational privacy
A)Marketing ethics
B)Consumerism
C)Accuracy of representation
D)Corporate social responsibility
E)Locational privacy
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29
Presto Clockworks Inc.has received a customer complaint regarding the inappropriate sales tactics of one of its sales representatives.The company's code of ethics distinctly states that sales personnel are to refrain from such selling practices.In this scenario, the manager of Presto Clockworks should:
A)assess whether the organization has a strong ethical climate.
B)determine what explicit rules for governing the firm's transactions exist.
C)review the current code of ethics to remove ambiguous interpretations.
D)determine what punishment is appropriate.
E)make changes in the current code of ethics to match the employee's behaviour.
A)assess whether the organization has a strong ethical climate.
B)determine what explicit rules for governing the firm's transactions exist.
C)review the current code of ethics to remove ambiguous interpretations.
D)determine what punishment is appropriate.
E)make changes in the current code of ethics to match the employee's behaviour.
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30
Keith Inc., a multinational firm, has extensive business operations in less developed countries.In one such country, Keith recently introduced a policy wherein it will donate 2 percent of its net profit to educational institutions with poor infrastructure.However, Keith was imposed a fine of $60,000 for violating the fair wage standards in the same country.Which of the following best exemplifies Keith's activity?
A)A firm with a strong focus on the triple bottom line
B)Socially responsible firm involved in unethical practices
C)Ethical firm not involved with the larger community
D)Both ethical and socially responsible
E)Neither ethical nor socially responsible
A)A firm with a strong focus on the triple bottom line
B)Socially responsible firm involved in unethical practices
C)Ethical firm not involved with the larger community
D)Both ethical and socially responsible
E)Neither ethical nor socially responsible
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31
As a part of its initiative to reduce deforestation, Silicon Inc., a trading company, limits the usage of paper by computerizing its operations.It also invests money in media campaigns against deforestation.In this scenario, the company's initiative is an example of:
A)effective branding.
B)marketing ethics.
C)corporate social responsibility.
D)shifting return on investment.
E)personal ethics.
A)effective branding.
B)marketing ethics.
C)corporate social responsibility.
D)shifting return on investment.
E)personal ethics.
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32
Firms with strong ethical climates tend to:
A)make greater utilization of business development consultants than their competitors.
B)offer more goods and services than firms without strong ethical climates.
C)be more socially responsible than firms without strong ethical climates.
D)invest more in sales training software.
E)make changes to their codes of ethics regularly.
A)make greater utilization of business development consultants than their competitors.
B)offer more goods and services than firms without strong ethical climates.
C)be more socially responsible than firms without strong ethical climates.
D)invest more in sales training software.
E)make changes to their codes of ethics regularly.
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33
Apart from implementing socially responsible programs, which of the following is the primary requirement for a firm to fulfill corporate social responsibility?
A)The location of the firm must be approved for environmental safety.
B)The firm's products must bear a "safe for use" seal.
C)The employees of the firm must act in an ethically responsible manner.
D)A control system must exist for punishing inappropriate behaviour.
E)Explicit rules must be defined for various firm transactions.
A)The location of the firm must be approved for environmental safety.
B)The firm's products must bear a "safe for use" seal.
C)The employees of the firm must act in an ethically responsible manner.
D)A control system must exist for punishing inappropriate behaviour.
E)Explicit rules must be defined for various firm transactions.
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34
Max, the branch manager of Money Tree Bank, has received an email from a customer stating that a huge fee has been charged for his account and that he was not aware of such a charge when he opened the account.Max sends a reply expressing the bank's commitment to ethical practices and assures the customer that such events would not be repeated.Which of the following is most likely to be Max's next step to sort the issue?
A)Assessing whether the organization has a strong ethical climate
B)Examining the existing explicit rules governing the firm's transactions
C)Creating a new code of ethics to match similar customer complaints in the future
D)Determining what reward is appropriate for the staff member who generated the fees
E)Making changes in the current code of ethics to match the overcharging behaviour
A)Assessing whether the organization has a strong ethical climate
B)Examining the existing explicit rules governing the firm's transactions
C)Creating a new code of ethics to match similar customer complaints in the future
D)Determining what reward is appropriate for the staff member who generated the fees
E)Making changes in the current code of ethics to match the overcharging behaviour
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35
Which of the following best exemplifies a clothing retailer that supports many local charities but occasionally engages in questionable pricing practices?
A)Socially responsible firm involved in unethical practices
B)Neither ethical nor socially responsible
C)A firm with a strong focus on the triple bottom line
D)Both ethical and socially responsible
E)Ethical firm not involved with the larger community
A)Socially responsible firm involved in unethical practices
B)Neither ethical nor socially responsible
C)A firm with a strong focus on the triple bottom line
D)Both ethical and socially responsible
E)Ethical firm not involved with the larger community
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36
Which of the following is true about CSR programs?
A)Employees ethical behaviour precede corporate social responsibility
B)Companies should be socially responsible so that their employees act ethically
C)Employees will always act unethically regardless of companies corporate social responsibility programs.
D)Corporate social responsibility and business ethics are two different concepts.A company can be socially responsible and makes unethical practices at the same time.
E)Corporate social responsibility and ethics are the same concept.A CSR company is ethical as well.
A)Employees ethical behaviour precede corporate social responsibility
B)Companies should be socially responsible so that their employees act ethically
C)Employees will always act unethically regardless of companies corporate social responsibility programs.
D)Corporate social responsibility and business ethics are two different concepts.A company can be socially responsible and makes unethical practices at the same time.
E)Corporate social responsibility and ethics are the same concept.A CSR company is ethical as well.
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37
Lori exaggerates her firm's current earnings in the belief that revenue will increase in the next few months.Her exaggeration benefits herself, the company, and the employees in the short term but may have serious ethical and legal consequences for the company in the long term.In this scenario, Lori should:
A)ethically evaluate the company's quarterly profit statements.
B)state the long-term goals in general terms so as to not interfere with her short-term goals.
C)get the management and the employees to put society's needs ahead of the needs of the company.
D)align the company's long-term goals with her short-term goals.
E)pass on the firm's competitive advantage to a competing firm.
A)ethically evaluate the company's quarterly profit statements.
B)state the long-term goals in general terms so as to not interfere with her short-term goals.
C)get the management and the employees to put society's needs ahead of the needs of the company.
D)align the company's long-term goals with her short-term goals.
E)pass on the firm's competitive advantage to a competing firm.
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38
Which of the following is true of Nielsen's Global Survey on Corporate Social Responsibility?
A)The consumers' willingness to spend on products from socially responsible firms showed a declining trend in 43 of 58 countries from 2011 to 2013.
B)According to the survey, a majority of Canadians have punished companies for being socially irresponsible.
C)The survey concluded that corporate social responsibility is the business issue of the 21stcentury.
D)Consumers were more willing to buy products and services from companies with programs that give back to society.
E)It found that being a socially responsible corporation ensures that all members of the firm or all subunits within it will act ethically.
A)The consumers' willingness to spend on products from socially responsible firms showed a declining trend in 43 of 58 countries from 2011 to 2013.
B)According to the survey, a majority of Canadians have punished companies for being socially irresponsible.
C)The survey concluded that corporate social responsibility is the business issue of the 21stcentury.
D)Consumers were more willing to buy products and services from companies with programs that give back to society.
E)It found that being a socially responsible corporation ensures that all members of the firm or all subunits within it will act ethically.
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39
Safe Health is an association that approves food products as being safe for consumption.Quick Breakfast Inc., a manufacturer of cereals, insists on quality standards and has a Safe Health seal on all its products.In this scenario, Quick Breakfast is demonstrating:
A)smart environmental marketing.
B)ways to benefit from a new social trend.
C)cost-effective ways of marketing.
D)socially responsible marketing.
E)ways to address consumerism.
A)smart environmental marketing.
B)ways to benefit from a new social trend.
C)cost-effective ways of marketing.
D)socially responsible marketing.
E)ways to address consumerism.
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40
Which of the following is true about companies being socially responsible?
A)Firms with a large number of employees tend to be more socially responsible.
B)Being socially responsible is generally considered to be a stated rule of corporate ethical behaviour.
C)Actions undertaken by firms that are perceived as socially responsible are always viewed as ethical.
D)The number of consumers wanting to purchase products from socially responsible companies is decreasing.
E)Companies earn both tangible and intangible benefits for acting in a socially desirable manner.
A)Firms with a large number of employees tend to be more socially responsible.
B)Being socially responsible is generally considered to be a stated rule of corporate ethical behaviour.
C)Actions undertaken by firms that are perceived as socially responsible are always viewed as ethical.
D)The number of consumers wanting to purchase products from socially responsible companies is decreasing.
E)Companies earn both tangible and intangible benefits for acting in a socially desirable manner.
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41
When a firm decides to integrate ethical decision making into its strategic planning process, which of the following questions would most likely be asked at the implementation phase?
A)Did any of the firm's actions have a negative impact on any stakeholder group?
B)Does the firm want to include a commitment to ethics in its mission statement?
C)Is the product priced fairly?
D)Is the firm prepared in the event of an ethical lapse?
E)Are there any new circumstances that require a change in strategy to avoid ethical issues?
A)Did any of the firm's actions have a negative impact on any stakeholder group?
B)Does the firm want to include a commitment to ethics in its mission statement?
C)Is the product priced fairly?
D)Is the firm prepared in the event of an ethical lapse?
E)Are there any new circumstances that require a change in strategy to avoid ethical issues?
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42
While segmenting a market, the marketer of a tobacco and alcoholic beverages company should always ask the ethical question of whether the firm:
A)wants to include a commitment to ethics in its mission statement.
B)should relocate its production to another country.
C)has fixed the appropriate marketing mix for the products.
D)has instituted the necessary systems to address ethical lapses.
E)is prepared to support the development of an ethical climate.
A)wants to include a commitment to ethics in its mission statement.
B)should relocate its production to another country.
C)has fixed the appropriate marketing mix for the products.
D)has instituted the necessary systems to address ethical lapses.
E)is prepared to support the development of an ethical climate.
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43
By including ethical statements in a firm's mission statement, marketers have the opportunity to introduce ethics during the stage of:
A)planning.
B)implementation.
C)control.
D)design.
E)processing.
A)planning.
B)implementation.
C)control.
D)design.
E)processing.
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44
An audit conducted at Jason University revealed wasteful spending of $8,590 on hotel rents, banquets, and dining at luxury hotels.Following this, the university president was fired and fewer government contributions were made to many of the school's funds.Staff members who were disturbed by this crisis chose to leave the university.This example illustrates:
A)how universities are as corrupt as corporate companies.
B)the lack of cooperation among the board of trustees.
C)the interdependence of responsibilities for ethical decision making.
D)how the parties involved failed to identify issues.
E)the lack of information needed to make ethical decisions.
A)how universities are as corrupt as corporate companies.
B)the lack of cooperation among the board of trustees.
C)the interdependence of responsibilities for ethical decision making.
D)how the parties involved failed to identify issues.
E)the lack of information needed to make ethical decisions.
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45
Leonard, who has just purchased a high-end cigar distributorship, wishes to increase his firm's visibility in the local markets.Leonard, however, is aware of the existing regulations and socially acceptable practices with regard to the promotion of tobacco products.Following the framework for ethical decision making, Leonard's first step will be:
A)identifying issues.
B)promoting the firm's corporate social responsibility efforts.
C)gathering information and identifying stakeholders.
D)brainstorming and evaluating alternatives.
E)choosing a course of action.
A)identifying issues.
B)promoting the firm's corporate social responsibility efforts.
C)gathering information and identifying stakeholders.
D)brainstorming and evaluating alternatives.
E)choosing a course of action.
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46
In which of the following scenarios is a company fulfilling its corporate social responsibility toward its employees?
A)NuPower Inc., a producer of nuclear power, securing its workplace from radiation accidents
B)KidZone Inc., a manufacturer of toys, ensuring that its toys do not pose a safety risk to children
C)RMed Corp., a producer of medicines, conducting regular quality checks for its medicines
D)StylePlus Inc., an automobile manufacturer, following its competitors' lead in making its vehicles environmentally friendly
E)BestTaste, a restaurant, using organic vegetables to make food items
A)NuPower Inc., a producer of nuclear power, securing its workplace from radiation accidents
B)KidZone Inc., a manufacturer of toys, ensuring that its toys do not pose a safety risk to children
C)RMed Corp., a producer of medicines, conducting regular quality checks for its medicines
D)StylePlus Inc., an automobile manufacturer, following its competitors' lead in making its vehicles environmentally friendly
E)BestTaste, a restaurant, using organic vegetables to make food items
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47
Trends, a marketing research firm, conducts a survey without telling the respondents about the real purpose of the survey.Trends has failed in:
A)identifying the ethical concerns in its action.
B)locating the appropriate target segment.
C)gathering information and identifying stakeholders.
D)brainstorming and evaluating alternatives.
E)choosing a course of action.
A)identifying the ethical concerns in its action.
B)locating the appropriate target segment.
C)gathering information and identifying stakeholders.
D)brainstorming and evaluating alternatives.
E)choosing a course of action.
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48
DrinkUp Beverages Inc.was forced to withdraw the promotion of its alcoholic beverages after it was criticized for advertising the products to children younger than 18 years old.In this scenario, DrinkUp's ethical error was the failure to consider whether it:
A)wanted to include its commitment to ethics in its mission statement.
B)should relocate its production to another country.
C)targeted the appropriate market segment.
D)priced the product at affordable rates.
E)was prepared to support the development of an ethical climate.
A)wanted to include its commitment to ethics in its mission statement.
B)should relocate its production to another country.
C)targeted the appropriate market segment.
D)priced the product at affordable rates.
E)was prepared to support the development of an ethical climate.
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49
A firm addresses the issue of being prepared to support the development of an ethical climate during the phase of:
A)planning.
B)implementation.
C)control.
D)design.
E)processing.
A)planning.
B)implementation.
C)control.
D)design.
E)processing.
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50
Companies adoption of CSR programs appeal to ________.
A)customers and government
B)shareholders and employees
C)stakeholders and competitors
D)shareholders and stakeholders
E)stakeholders and government
A)customers and government
B)shareholders and employees
C)stakeholders and competitors
D)shareholders and stakeholders
E)stakeholders and government
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51
Crystal Inc., a manufacturer of cosmetics, ensures that all its products are free of any sort of allergens.The company is fulfilling its corporate social responsibility toward:
A)its marketplace.
B)its customers.
C)its government.
D)its competitors.
E)its investors.
A)its marketplace.
B)its customers.
C)its government.
D)its competitors.
E)its investors.
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52
When competitors prompt a company to undertake corporate social responsibility initiatives, the company is subjected to the influence of:
A)marketplace.
B)society.
C)consumers.
D)employees.
E)media.
A)marketplace.
B)society.
C)consumers.
D)employees.
E)media.
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53
Golden Rings High School is facing a crisis as students are leaving the school due to a lack of qualified and experienced teachers.The management of the school has realized that there have been lapses while recruiting teachers.The school identifies students, teachers, and parents as the stakeholders in the issue and wants to take them into confidence for solving the issue.Which of the following is most likely to be the management's next step to solve the issue?
A)Identifying issues of concern to law makers
B)Assessing the impact of the board's actions beyond the classroom
C)Brainstorming and evaluating alternatives
D)Choosing a course of action
E)Promoting its corporate social responsibility efforts
A)Identifying issues of concern to law makers
B)Assessing the impact of the board's actions beyond the classroom
C)Brainstorming and evaluating alternatives
D)Choosing a course of action
E)Promoting its corporate social responsibility efforts
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54
What are the two key factors that have been driving the trend toward greater CSR in Canada?
A)Government regulations and consumer attitudes
B)Consumerism and enhanced environmental awareness
C)Government incentives and consumerism
D)Environmental awareness and economic pressure
E)Nonprofit organizations growth and consumers positive attitudes toward the socially responsible companies
A)Government regulations and consumer attitudes
B)Consumerism and enhanced environmental awareness
C)Government incentives and consumerism
D)Environmental awareness and economic pressure
E)Nonprofit organizations growth and consumers positive attitudes toward the socially responsible companies
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55
PureIn Inc., a manufacturer of bottled water, depends extensively on groundwater sources for its operations.The management of the company decides to take up groundwater replenishment programs and to assist communities in developing efficient ways to recycle water.Following PureIn's initiative, several firms take up similar programs leading to an increased awareness about the subject.This scenario is an example of how corporate social responsibility is subjected to the influence of:
A)investors.
B)media.
C)society.
D)employees.
E)marketplace.
A)investors.
B)media.
C)society.
D)employees.
E)marketplace.
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56
Which of the following is true of corporate social responsibility?
A)Investors' decision to invest in a company is unrelated to the company's corporate social responsibility program.
B)The corporate social responsibility program of a firm is independent of the influences of marketplace.
C)Being socially responsible is generally considered to be an explicitly stated rule of corporate ethical behaviour.
D)Some firms that are perceived as socially responsible can still take actions that are viewed as unethical.
E)Firms with strong ethical climates tend to be less socially responsible.
A)Investors' decision to invest in a company is unrelated to the company's corporate social responsibility program.
B)The corporate social responsibility program of a firm is independent of the influences of marketplace.
C)Being socially responsible is generally considered to be an explicitly stated rule of corporate ethical behaviour.
D)Some firms that are perceived as socially responsible can still take actions that are viewed as unethical.
E)Firms with strong ethical climates tend to be less socially responsible.
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57
In relation to strategic planning process, the question whether a firm can serve a market ethically switches to whether the firm should indulge in particular marketing practices during the phase of:
A)planning.
B)implementation.
C)control.
D)evaluation.
E)design.
A)planning.
B)implementation.
C)control.
D)evaluation.
E)design.
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58
When a firm decides to integrate ethical decision making into its strategic planning process, which of the following questions would most likely be asked at the planning phase?
A)Did any of the firm's actions have a negative impact on any stakeholder group?
B)Does the firm want to include a commitment to ethics in its mission statement?
C)Is the product priced fairly?
D)Is the firm prepared in the event of an ethical lapse?
E)Should the firm be targeting this market segment with its product?
A)Did any of the firm's actions have a negative impact on any stakeholder group?
B)Does the firm want to include a commitment to ethics in its mission statement?
C)Is the product priced fairly?
D)Is the firm prepared in the event of an ethical lapse?
E)Should the firm be targeting this market segment with its product?
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59
SwiftWheels Inc., a manufacturer of automobiles, is facing an ethical dilemma.It must decide between buying out a competing firm and maintaining one of its factories.The stakeholders have raised their concerns and all parties relevant to the decision-making process have engaged in a brainstorming session.After considering the various alternatives, the management has decided to buy out the competing firm.If the management is unsure about the action, it will most likely consider:
A)lowering the product's price.
B)reviewing and refining the alternatives.
C)consulting customers for their opinions.
D)identifying the most important stakeholders.
E)avoiding risk by putting off decision making.
A)lowering the product's price.
B)reviewing and refining the alternatives.
C)consulting customers for their opinions.
D)identifying the most important stakeholders.
E)avoiding risk by putting off decision making.
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60
Charles's company, which is facing an ethical issue, has identified the stakeholders, listened to their concerns, and gathered available data to deal with the issue.Which of the following is the next step to be undertaken by the company?
A)Pursuing legal discourse
B)Hiring new employees to speed up the decision-making process
C)Identifying the issues
D)Choosing a course of action
E)Brainstorming and evaluating alternatives
A)Pursuing legal discourse
B)Hiring new employees to speed up the decision-making process
C)Identifying the issues
D)Choosing a course of action
E)Brainstorming and evaluating alternatives
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61
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:
A)mission statement.
B)primary target market.
C)pricing strategy.
D)marketing campaign.
E)sourcing decisions.
A)mission statement.
B)primary target market.
C)pricing strategy.
D)marketing campaign.
E)sourcing decisions.
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62
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:
A)display consistency in deciding the suitable marketing mix for their products.
B)have a higher level of productivity than firms without emergency response systems.
C)have better marketing ethics than business ethics.
D)suffer fewer long-term negative effects on their reputations and the level of trust among consumers.
E)be creative marketers than those firms that did not respond quickly.
A)display consistency in deciding the suitable marketing mix for their products.
B)have a higher level of productivity than firms without emergency response systems.
C)have better marketing ethics than business ethics.
D)suffer fewer long-term negative effects on their reputations and the level of trust among consumers.
E)be creative marketers than those firms that did not respond quickly.
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63
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:
A)planning
B)implementation
C)control
D)initiation
E)design
A)planning
B)implementation
C)control
D)initiation
E)design
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64
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?
A)Planning
B)Implementation
C)Control
D)Initiation
E)Design
A)Planning
B)Implementation
C)Control
D)Initiation
E)Design
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65
When the manager weighs the cost of recalling the phones against the cost of potential lawsuits, he is:
A)being innately corrupt.
B)taking voluntary actions to address the ethical, social, and environmental impacts of its business operations.
C)choosing between conflicting outcomes.
D)passing competitor advantage to a competing firm.
E)proving he barely understands the consequences of unethical actions.
A)being innately corrupt.
B)taking voluntary actions to address the ethical, social, and environmental impacts of its business operations.
C)choosing between conflicting outcomes.
D)passing competitor advantage to a competing firm.
E)proving he barely understands the consequences of unethical actions.
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66
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:
A)should modify its systems used in the control phase according to changes in the external environment.
B)needs to adopt suitable marketing strategies for its target segment.
C)is willing to treat its employees with dignity and respect.
D)must allocate resources to the existing market or to more important social needs.
E)needs to include ethical precepts for shaping the organization in its mission statement.
A)should modify its systems used in the control phase according to changes in the external environment.
B)needs to adopt suitable marketing strategies for its target segment.
C)is willing to treat its employees with dignity and respect.
D)must allocate resources to the existing market or to more important social needs.
E)needs to include ethical precepts for shaping the organization in its mission statement.
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67
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:
A)processing.
B)implementation.
C)control.
D)design.
E)initiation.
A)processing.
B)implementation.
C)control.
D)design.
E)initiation.
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68
During which phase of the strategic marketing plan would a firm address the issue of location of its production in another country?
A)Planning
B)Implementation
C)Control
D)Evaluation
E)Processing
A)Planning
B)Implementation
C)Control
D)Evaluation
E)Processing
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69
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:
A)cost-effective marketing.
B)procedural fairness.
C)efficient branding.
D)corporate social responsibility.
E)locational privacy.
A)cost-effective marketing.
B)procedural fairness.
C)efficient branding.
D)corporate social responsibility.
E)locational privacy.
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70
In the context of strategic planning, the ethical impacts of resource allocations need to be carefully evaluated during the phase of:
A)planning.
B)implementation.
C)control.
D)initiation.
E)design.
A)planning.
B)implementation.
C)control.
D)initiation.
E)design.
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71
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:
A)identifying the issue.
B)promoting the firm's social responsibility.
C)gathering relevant information.
D)evaluating the alternatives.
E)choosing a course of action.
A)identifying the issue.
B)promoting the firm's social responsibility.
C)gathering relevant information.
D)evaluating the alternatives.
E)choosing a course of action.
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72
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:
A)planning.
B)control.
C)implementation.
D)design.
E)initiation.
A)planning.
B)control.
C)implementation.
D)design.
E)initiation.
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73
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:
A)should change its sourcing strategy.
B)should relocate its production to an underdeveloped country.
C)should change its target market.
D)had systems in place to respond to emergency requirements.
E)had the standing to impact other firms in the same industry.
A)should change its sourcing strategy.
B)should relocate its production to an underdeveloped country.
C)should change its target market.
D)had systems in place to respond to emergency requirements.
E)had the standing to impact other firms in the same industry.
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74
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:
A)quarterly profit statement needs to be ethically evaluated.
B)long-term goals must be stated in general terms so that they do not interfere with its short-term goals.
C)management and employees must think about the needs of society ahead of the needs of the company.
D)long-term goals must be aligned with its short-term goals.
E)competitive advantage must be passed on to the competing firm.
A)quarterly profit statement needs to be ethically evaluated.
B)long-term goals must be stated in general terms so that they do not interfere with its short-term goals.
C)management and employees must think about the needs of society ahead of the needs of the company.
D)long-term goals must be aligned with its short-term goals.
E)competitive advantage must be passed on to the competing firm.
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75
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:
A)grouping.
B)control.
C)implementation.
D)design.
E)initiation.
A)grouping.
B)control.
C)implementation.
D)design.
E)initiation.
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76
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:
A)should modify its systems used in the control phase according to changes in the external environment.
B)is responsible for ensuring that its workers are treated fairly and paid a living wage.
C)is choosing the suitable marketing strategy for its target segment.
D)must allocate resources to the target market or to more important social needs.
E)needs to include ethical precepts for shaping the organization in its mission statement.
A)should modify its systems used in the control phase according to changes in the external environment.
B)is responsible for ensuring that its workers are treated fairly and paid a living wage.
C)is choosing the suitable marketing strategy for its target segment.
D)must allocate resources to the target market or to more important social needs.
E)needs to include ethical precepts for shaping the organization in its mission statement.
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77
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:
A)should modify its systems used in the control phase according to changes in the external environment.
B)is responsible for ensuring workers are treated fairly and paid a living wage.
C)is choosing the suitable marketing strategy for its target market.
D)must allocate more resources to the existing market or to more important social needs.
E)needs to include ethical precepts for shaping the organization in its mission statement.
A)should modify its systems used in the control phase according to changes in the external environment.
B)is responsible for ensuring workers are treated fairly and paid a living wage.
C)is choosing the suitable marketing strategy for its target market.
D)must allocate more resources to the existing market or to more important social needs.
E)needs to include ethical precepts for shaping the organization in its mission statement.
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78
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:
A)planning.
B)implementation.
C)control.
D)design.
E)grouping.
A)planning.
B)implementation.
C)control.
D)design.
E)grouping.
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79
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:
A)accuracy of representation.
B)procedural fairness.
C)effective targeting.
D)corporate social responsibility.
E)locational privacy.
A)accuracy of representation.
B)procedural fairness.
C)effective targeting.
D)corporate social responsibility.
E)locational privacy.
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80
In which stage of strategic planning are managers evaluated on their actions from an ethical perspective?
A)Planning
B)Implementation
C)Control
D)Design
E)Initiation
A)Planning
B)Implementation
C)Control
D)Design
E)Initiation
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