Deck 4: Marketing Ethics

Question 1

Marketers are frequently singled out for criticism related to ethics,in part because they interact directly with people.

Answer 1

True

Question 2

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.

Answer 2

True

Question 3

The idea that corporate social responsibility is unnecessary because the goal of any corporation is simply to make a profit has been thoroughly discredited and is no longer supported by economists or business people.

Answer 3

False

Question 4

If a U.S.clothing brand buys from overseas suppliers who manufacture clothing using child labor,this is the supplier's problem,and the U.S.company has no reason to be concerned.

Question 5

Advertising executives are rated as having higher ethical standards than lawyers.

Question 6

The process of creating a strong ethical business climate begins with the front-line employees who interact directly with customers.

Question 7

Firms with strong ethical climates tend to be more socially responsible.

Question 8

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

Question 9

A survey of marketing officers reported that the most frequently observed type of unethical behavior was false or misleading advertising.

Question 10

Deceptive advertising and promotion of inferior products are examples of __________ ethical issues.

A) accounting
B) marketing
C) social
D) finance
E) economic

Question 11

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.

Question 12

Marketing has been singled out as the root cause of a host of ethical problems in business.

Question 13

Merck & Co.,having learned from the Johnson & Johnson Tylenol incident,was quick to respond when the first reports of problems with Vioxx arose.

Question 14

In a recent Gallup survey,which of the following professions was rated lowest in ethical standards?

A) Car salespeople
B) Lawyers
C) Senators
D) Real estate agents
E) Medical doctors

Question 15

Short-term profitable decisions can cause firms to lose customers in the long run.

Question 16

Unlike other business functions like accounting or finance,people in marketing are often singled out as the root cause of ethical concerns because

A) they are trained in the art of effective persuasive communication.
B) they are not considered to be as quantitatively skilled as accounting and finance people.
C) they interact directly with consumers.
D) the problems that occurred at Enron,Tyco,and WorldCom were caused by marketers.
E) doing a good job of marketing requires some degree of unethical behavior.

Question 17

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 18

Ethical issues are likely to arise at each stage of the strategic marketing planning process.

Question 19

Each individual's ethical standards are a product of culture and upbringing.

Question 20

Products that may damage the environment,the use of sweatshop labor,and the marketing of dangerous products are examples of

A) internal,controllable marketing issues.
B) issues that don't even need to be discussed in ethical firms.
C) marketing issues but not ethical issues.
D) marketing ethical issues.
E) ethical issues but not marketing issues.

Question 21

Being socially responsible is generally considered

A) a good thing to do only if a company is profitable.
B) inappropriate for most firms in today's challenging markets.
C) beyond the norms of corporate ethical behavior.
D) a necessary part of every firm's strategy.
E) the responsibility of corporate-sponsored foundations who can effectively concentrate a firm's good deeds.

Question 22

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 issues.
B) that the impact of unethical actions can reach far 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 23

When Johnson & Johnson removed all Tylenol from the shelves after some containers were tampered with,poisoning and killing seven people,the company

A) sacrificed short-term profits for long-term credibility.
B) was forced to do so following extensive consumer outcry.
C) was ordered to do so by the Food and Drug Administration.
D) felt that nothing could stop Tylenol from losing most of its customers.
E) developed plans to sell the returned Tylenol bottles in less developed countries.

Question 24

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 25

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

A) that universities are more corrupt than companies.
B) that the extravagant spending should have been kept quiet to minimize damage to the university.
C) that the impact of unethical actions can affect the organization in unanticipated ways.
D) the need to identify issues.
E) the lack of information needed to make ethical decisions.

Question 26

The Johnson & Johnson Credo acknowledges the company's responsibility to

A) users of its products,its employees,the community,and its stockholders.
B) its stockholders first,its managers,its employees,and its suppliers and vendors.
C) domestic markets,other countries in the developed world,and finally countries in the developing world.
D) users of its products,the researchers who develop the products,regulators,and its stockholders.
E) doctors,nurses,insurance companies,and users of its products.

Question 27

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

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

Question 28

The Johnson & Johnson Credo

A) was a response to the Tylenol incident.
B) proved ineffective when the company needed to act in the Tylenol crisis,which was a clear lesson to other companies to update similar documents.
C) was copied by all other pharmaceutical companies.
D) offers an extremely detailed description of potential problems for the company.
E) has guided the firm since it was written in the 1940s.

Question 29

Many executives and corporate boards of directors do not perceive social responsibility as part of their mission or responsibility.These business leaders consider corporate social responsibility to be

A) a basic requirement of any business.
B) the equivalent of the AMA ethical value,"Do no harm."
C) the key to operational effectiveness.
D) a component of basic business ethics.
E) beyond the norms of corporate ethical behavior.

Question 30

Janice was disturbed to find that the real estate company she had just started working for did not have a(n)__________,the starting point for creating a strong ethical climate.

A) ethical behavior seminar
B) set of ethical values
C) employment contract
D) social responsibility program
E) ethical activity bonus

Question 31

When making decisions,managers often have to decide between doing what is beneficial for them (and possibly the firm)in the short run,and doing what is right and beneficial for the firm and for society in the long run.To address this conflict,a firm

A) must evaluate its quarterly profit statement from an ethics standpoint.
B) must state its long-term goals in general terms,so as to not interfere with managers' short-term goals.
C) must always put society's needs ahead of the firm's needs.
D) must ensure that long-term goals are aligned with the short-term goals of each individual within the firm.
E) do all of these.

Question 32

Ironically,while the leaders of Enron Corporation were manipulating the company's finances for their personal benefit,the company was a major donor to Houston area charities.Enron had unethical business practices,but was also

A) practicing marketing ethics.
B) falsifying the company's finances through charitable donations.
C) creating a local ethical business climate.
D) demonstrating corporate social responsibility.
E) manipulating the public sentiment for its own benefit.

Question 33

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 and evaluate alternatives.
E) choose a course of action.

Question 34

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

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

Question 35

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 36

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

A) legal discourse.
B) a vote,with the majority deciding the best course of action.
C) reidentification of issues.
D) choosing a course of action.
E) brainstorming and evaluation of alternatives.

Question 37

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

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 38

Jacqueline was pleased to read a paraphrasing of the Golden Rule,"Do unto our customers as you would have them do unto you," as part of her new employer's mission statement.Next,Jacqueline expects to find in the firm's employee handbook

A) a summary of recent Supreme Court business ethics cases.
B) a statement that she needs to decide how the Golden Rule applies to her job on her own,without any influence from her employer.
C) explicit rules governing the firm's transactions.
D) a list of employee concerns.
E) a list of benefits offered to employees.

Question 39

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 and evaluate alternatives.
D) choose a course of action.
E) evaluate the legal ramifications.

Question 40

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

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

Question 41

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 42

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

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

Question 43

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

A) maximizes profits.
B) creates the least possible publicity.
C) involves the fewest employees.
D) minimizes costs.
E) seems best after weighing the concerns of all stakeholders.

Question 44

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

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 45

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

A) when public attention might embarrass the corporation.
B) if the local government suggests that the company pay bribes to officials.
C) even if they aren't their employees.
D) unless another firm actually employs the workers.
E) when it suits them financially.

Question 46

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

A) ignore the metric as unworkable,since the campaign might pass some of the tests and fail others.
B) consider the profit potential first; then explore the vague tests in the metric.
C) not worry about the children; their parents are likely to make the buying decision,and they should be able to decide for themselves.
D) put the campaign on hold while she explores with the staff how they approached the ethical issues.
E) consult the firm's code of ethics for guidance and leave personal ethical considerations out of the decision-making process.

Question 47

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) Brainstorm the available alternatives.
B) Ask its managers to vote for or against public disclosure.
C) Let the board of directors decide what to do.
D) Identify the issues raised by the situation.
E) Find out who purchased the meat,and offer them refunds in return for their silence.

Question 48

For every consumer who purchases a pair of TOMS shoes for $55.00,the company promises that a 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 its products.

Question 49

When Toyota owners began to report problems with sticking accelerator pedals and non-functioning brakes,Toyota at first ignored or rejected the claims.Eventually,the company evaluated the issue.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 50

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

A) should only be addressed during the evaluation stage.
B) should never be asked; only managers should deliberate marketing ethical issues.
C) vary at each stage of the process.
D) are never asked during the implementation stage.
E) always follow a standard format.

Question 51

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 52

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

A) By paying at least minimum wage when the law requires it.
B) By adhering to government-mandated safety standards in the workplace.
C) By ensuring that pay practices are fair at all levels of the company.
D) By ensuring 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 53

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

A) By protecting the privacy of personal information collected on its website.
B) By adhering to government-mandated safety standards in its stores.
C) By ensuring that it pays its employees fairly.
D) By ensuring 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 54

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 55

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 56

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

A) it reduces the possibility that the Henry Ford Health System might make unethical purchasing decisions.
B) it ensures that Henry Ford Health System is both ethical and socially responsible.
C) it ensures that Henry Ford Health System is ethical,but not necessarily socially responsible.
D) it ensures that Henry Ford Health System is socially responsible,but not necessarily ethical.
E) it was trying to save money.

Question 57

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

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

Question 58

Elena is the CEO of a small manufacturing firm.She is concerned with meeting the investment objectives of the firm's shareholders,and sees no value in corporate social responsibility.Elena's attitude is

A) insupportable in the 21^stcentury.
B) consistent with the views of other critics of corporate social responsibility.
C) typical of nearly all manufacturers.
D) a reaction to regulatory directives of the U.S.government.
E) unethical.

Question 59

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

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

Question 60

Frank found himself in the midst of an ethical dilemma at work,and was using an ethical decision-making metric like the one shown in the text to clarify his professional and personal values.Frank was most likely in which phase of the Ethical Decision Making Framework?

A) Identifying the issues
B) Separating personal from business ethics
C) Gathering information and identifying stakeholders
D) Brainstorming and evaluating alternatives
E) Choosing a course of action

Question 61

Respond to the question,"Which is a more important corporate objective: making a profit,or obtaining and keeping customers?"

Question 62

After a series of embarrassing and unprofessional actions by her marketing team,Ming wants to ethically align personal and corporate goals within her firm.What general and specific actions will she need to take?

Question 63

Paul wants to work for a firm that demonstrates corporate social responsibility.Draw up a list of questions Paul could use in an interview to determine the level of commitment of potential employers.

Question 64

Why are marketers often singled out among business disciplines as the "root cause" of consumers' ethical concerns?

Question 65

Funeral home businesses were recently criticized for accepting payments from medical parts companies,for assisting medical parts companies in finding families who would allow materials to be harvested from deceased family members.Though not illegal,the payments raised ethical questions.How should the funeral industry go about addressing these questions?

Question 66

If there are no correct answers to ethically troubling situations you might face in your career,how can you be expected to perform ethically?

Question 67

Identify how a company might evaluate whether or not to support the United Way,a program that collects donations and distributes them to a wide range of charities.

Question 68

The CEO of your firm,a distributor for a domestic beer manufacturer,has asked you to take on a special project.She has been hearing about a growing trend toward corporate social responsibility,but wonders if this is a reasonable investment for the firm.Outline the costs and benefits in general terms and draw your own conclusion for her consideration.

Question 69

How does corporate social responsibility relate to ethics?

Question 70

What types of unethical behavior are most frequently encountered in marketing?

Question 71

Paulo,owner of a local plumbing repair company,wants to improve his company's reputation for corporate social responsibility.What could Paulo do?

Question 72

What is the difference between government regulation of business and corporate social responsibility?

Question 73

Martin,a sales rep for a wholesale food supply firm,knows that the new head chef at one of the restaurants he calls on is inexperienced.Martin knows that he can talk the chef into a large order and make a significant monthly bonus from his company,but suspects that the chef will soon realize that she did not need the quantities she was talked into buying.What frequent marketing ethical dilemma does Martin face?

Question 74

Jacinta has just learned that a brand of clothing she has been selling for years in her store is being made by workers in sweatshops,under inhumane working conditions,by workers paid subsistence wages.Which of the questions in the Ethical Decision-Making Metric will most likely affect her decision to discontinue the brand?

Question 75

Burt's Bees mission is an "Earth Friendly,Natural Personal Care Company." As part of that mission,Burt's Bees has a "Zero Waste to Landfill" initiative.During what phase of the strategic marketing planning process would this initiative be pursued?

Question 76

What short-run versus long-run ethical dilemma do marketers often face?

Question 77

How would you distinguish a firm that practices corporate social responsibility from one that behaves ethically?

Question 78

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

A) By paying its employees minimum wage as required by law.
B) By using cups made from recycled paper.
C) By offering healthy drinks and snacks in its stores.
D) By purchasing 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 79

Why are marketers more likely to be singled out for criticism about unethical behavior than other business professionals?

Question 80

Why do the authors state that "using profit as the sole guiding light for corporate action" can harm the company?