Deck 17: Ethics and Socially Responsible Marketing

Question 1

Special duties or obligations that apply to persons engaged in commerce fall under ethics.

A)business
B)marketing
C)pragmatic
D)evolutionary
E)normative

Answer 1

A

Question 2

The generally accepted code in marketing is developed by the:

A)CBA.
B)CMA.
C)CRTC.
D)CFC.
E)CGM.

Answer 2

B

Question 3

The set of values within a marketing firm, or in the marketing division of any firm, that guides decision making and behaviour is called:

A)an ethical retreat.
B)a moral code.
C)the ethical climate.
D)an explicit rule.
E)a system of control.

Answer 3

C

Question 4

The Canadian Marketing Association Code of Ethics is designed mainly to:

A)promote marketing in Canada and overseas.
B)establish and maintain standards for the conduct of marketing in Canada.
C)catch deceptive marketers and inform the public of them.
D)promote marketing and consumerism in Canada.
E)establish an association for marketers to share their experiences.

Question 5

One of the reasons why people act unethically is because:

A)people are innately corrupt.
B)they must choose between conflicting outcomes.
C)everyone follows the bandwagon of acting unethically.
D)someone else will take advantage of a situation even if an ethical person does not.
E)people rarely understand the consequences of unethical actions.

Question 6

Once the explicit rules and implicit understandings that govern all the firm's transactions are in place, there must be:

A)a system of controls that rewards appropriate behaviour and punishes inappropriate behaviour.
B)a forum through which employees can appeal lapses in ethical behaviour.
C)weekly reminder seminars to enforce guidelines.
D)commitment from customers to accept these rules.
E)cooperation from competitors to avoid conflicting outcomes.

Question 7

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)marketing ethics
C)pragmatic ethics
D)evolutionary ethics
E)normative ethics

Question 8

After employees understand the values of their company, what must occur to create an ethical climate in the workplace?

A)conduct an ethical retreat seminar
B)establish a contractual system
C)identify the issues
D)develop explicit rules for transactions
E)establish a system of control

Question 9

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)consumers recognize marketers are not as quantitatively skilled as accounting and finance people.
C)they interact directly with consumers.
D)accounting scandals are often caused by marketers.
E)marketers, by definition, are less ethical than other company employees.

Question 10

Almost every organization includes values and ethics in its mission statement, but establishment of an ethical business climate 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.

Question 11

Lawrence was shocked to learn that the publication company he had just joined did not have a(n) , the basic starting point for creating a strong ethical climate.

A)ethical retreat seminar
B)set of values that guides behaviour
C)contractual system
D)social commitment strategy
E)business ethics bonus

Question 12

Which of the following is the first step in the process of creating a strong ethical climate?

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

Question 13

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

A)business
B)marketing
C)production
D)financial
E)normative

Question 14

Use of sweatshop labour is an example of issues.

A)global marketing
B)internal and controllable marketing
C)individual consumer
D)societal marketing
E)normative ethical

Question 15

Establishing an ethical business climate requires all employees to be dedicated to that goal because:

A)employees have to be taught ethical standards.
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 do not have sufficient visionary scope to understand the ramifications of unethical behaviour.
E)the roots of ethical conflict often are the competing values of individuals.

Question 16

Sale of products that may damage the environment are issues.

A)global marketing
B)internal and controllable marketing
C)individual consumer
D)societal marketing
E)normative ethical

Question 17

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

Question 18

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 count in the long run.

Question 19

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 indicate Howard's lack of personal ethics?

A)Howard calls a team meeting and asks the team to double its efforts to meet the sales target in the next quarter.
B)Howard devises an incentive scheme to increase sales and to encourage his team.
C)Howard inflates the sales figures for the current quarter so that it looks better for his branch and himself.
D)Howard sends an email to the regional manager apologizing and explaining the reason why he was not able to meet the sales target.
E)Howard calls a team meeting to brainstorm and figure out why sales targets were not met
For the current quarter.

Question 20

Which of the following is an individual consumer issue?

A)moral irregularities in the course of business
B)duties of persons engaged in commerce
C)sale of environmentally dangerous products
D)use of sweatshop labour
E)deceptive advertising

Question 21

Which of the following is addressed by a company that undertakes corporate social responsibility?

A)the primary focus of the organization
B)the ethics of its business operations
C)its competitive advantage
D)its stakeholder responsibility toward stakeholders
E)the building of its community skills

Question 22

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.She must:

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 its short-term goals.
E)pass on the firm's competitive advantage to the competing firm.

Question 23

As members of the CMA, are responsible for the practices of suppliers and advertising agencies.

A)accountants
B)managers
C)shareholders
D)marketers
E)competitors

Question 24

One of the criticisms of corporate social responsibility is the difficulty of:

A)generating revenue savings for the company.
B)getting consumers to act ethically.
C)demonstrating the benefits to a company's employees.
D)disclosing the benefits of corporate social responsibility activities to the government.
E)encouraging consumers to demand that companies carry out corporate social responsibility activities.

Question 25

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 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 26

To fulfill corporate social responsibility, which of the following best describes what is required of a firm apart from implementing programs that are socially responsible?

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 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.

Question 27

Firms with strong ethical climates tend to:

A)make greater utilization of business development consultants.
B)offer more goods and services than firms without strong ethical climates.
C)be more socially responsible.
D)invest more in sales training software.
E)make changes to their codes of ethics regularly.

Question 28

As a part of its company policy to reduce global warming, Hagger Inc., a Canadian trading firm, purchased a hundred acres of land and contributed them to a nature conservancy.This is an example of:

A)business ethics.
B)marketing ethics.
C)corporate social responsibility.
D)shifting return on investment.
E)creating an ethical climate.

Question 29

Kosher Aqua, 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.Kosher Aqua is trying to focus consumer attention on:

A)the poor quality of its competitors' water bottles.
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 and purity of its water.

Question 30

Presto Clockworks Inc.has received a customer complaint regarding the inappropriate sales tactics one of its sales representatives.The company's code of ethics distinctly states that sales personnel are to refrain from such selling practices.The manager of Presto Clockworks must:

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 for ambiguity.
D)determine what punishment is appropriate.
E)make changes in the current code of ethics to match the employee's behaviour.

Question 31

When a company addresses the ethical, social, and environmental impacts of its business operations and the concerns of its stakeholders with actions, it is showing corporate social responsibility.

A)regulatory
B)expensive
C)barely visible
D)voluntary
E)socially acceptable

Question 32

Which of the following 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)corporate social entrepreneurship
B)corporate benefit
C)corporate behaviour
D)corporate social responsibility
E)corporate personhood

Question 33

MustEat Inc.has an exclusive internal research department that supports its ethical commitment of offering healthful foods.The company also encourages its employees to donate food to various charity programs.What is being fulfilled by MustEat?

A)corporate public relations
B)corporate benefit
C)corporate behaviour
D)corporate social responsibility
E)corporate personhood

Question 34

Max, the branch manager of Money Tree Bank, has received an email from a customer stating that a huge fee has been charged to his account and that he was not aware of such a charge when he opened the account.Max must:

A)assess whether the organization has a strong ethical climate.
B)determine the existing explicit rules governing the firm's transactions.
C)create a new code of ethics to match similar customer complaints in the future.
D)determine what reward is appropriate for the staff member who generated the fees.
E)make changes in the current code of ethics to match the overcharging behaviour.

Question 35

A Canadian clothing retailer that supports many local charities but on occasion engages in questionable pricing practices can be characterized as:

A)socially responsible but unethical.
B)socially responsible and ethical.
C)consumer-centred.
D)employee-centred.
E)profiting from being ethically responsible.

Question 36

Safe Health is an association that approves food products as being safe for consumption.Quick Breakfast, a manufacturer of cereals, has a Safe Health seal on all its products.Quick Breakfast is demonstrating:

A)smart environmental marketing.
B)ways to benefit from a new social trend.
C)the principles of consumer satisfaction and profit responsibility.
D)socially responsible marketing.
E)ways to address consumerism.

Question 37

Which of the following is true about companies being socially responsible?

A)Firms with a high employee count tend to be more socially responsible.
B)Being socially responsible is considered to be within the norms 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.

Question 38

Coinage, a Canadian bank, supports many social causes by donating a lot to the community.But the bank employees feel that the efforts they put into the donation drive have not been recognized by the company.The employees question the firm's practices of donation.Coinage is:

A)socially responsible but unethical.
B)socially responsible and ethical.
C)consumer-centred.
D)employee-centred.
E)profiting from being ethically responsible.

Question 39

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 profits but only in the long run.
D)may not directly relate to generating profit.
E)display the firm's productivity mission.

Question 40

Many executives and directors do not perceive being socially responsible as part of their personal responsibilities.They consider social responsibility to be:

A)just a basic requirement of any business.
B)the equivalent of the AMA standard of "Do no harm."
C)the sum of customer and operational effectiveness.
D)business ethics meant for lower-level management.
E)beyond the norms of corporate ethical behaviour.

Question 41

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)should target this market with this product.
D)and its actions are having a negative impact on any stakeholder group.
E)is prepared to support the development of an ethical climate.

Question 42

In which stage of strategic planning are managers evaluated on their actions from an ethical perspective?

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

Question 43

SwiftWheels Inc.is in a dilemma.It must decide between buying out a competing firm and closing 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 reviewing the various alternatives, management has decided on a course of action.If management is not confident about the action, it should:

A)lower the product's price.
B)evaluate the other alternatives.
C)consult customers for their opinions.
D)revisit the ethical concerns.
E)avoid risk by putting off decision making.

Question 44

When Golden Rings High School realized that parents, children, teachers, staff, and taxpayers had a vested interest in its deteriorating school facilities, the school board would most likely take the next step of:

A)identifying issues of concern to law makers.
B)assessing the impact of the board's actions beyond the classroom.
C)engaging in brainstorming and evaluating alternatives.
D)choosing a course of action.
E)promoting its corporate social responsibility efforts.

Question 45

During which of the following stages can a firm's ethical mission statement become a means to guide a firm's SWOT analysis?

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

Question 46

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?

Question 47

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

Question 48

When considering changes to retirement programs, companies should consider the ethical issues primarily affecting:

A)shareholders.
B)employees.
C)customers.
D)marketers.
E)competitors.

Question 49

Poster-it Inc.is known for its continued commitment to its mission statement by having the values stated in its mission statement remain the values of the company's primary target market.

A)distinct from
B)consistent with
C)in an ethical climate removed from
D)a corporate secret withheld from
E)flexible and different from

Question 50

In which of the following stages can resource allocation become an ethical minefield?

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

Question 51

Trends, a marketing research firm, conducts research without telling the respondents about the real purpose of the study.Trends has 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 52

Kingston, a garment manufacturing company, has manufacturing units located in Bangladesh and Afghanistan to take advantage of lower production and labour costs.Which ethical area could be in question here?

A)the company's mission statement
B)the company's primary target market
C)the company's resource allocation
D)the company's marketing campaign
E)the company's sourcing decisions

Question 53

Ensuring that all potential ethical issues raised in the planning process have been addressed and that all employees of the firm have acted ethically is the key task in the phase.

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

Question 54

An audit conducted at Trigger University revealed wasteful spending of $8590 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)universities are as corrupt as corporate companies.
B)the carelessness of the board of trustees in guarding the university's funds.
C)the interdependence of responsibilities for ethical decision making.
D)a failure to identify issues.
E)a lack of information needed to make ethical decisions.

Question 55

DrinkUp Beverages 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.DrinkUp's ethical error was the failure to consider whether the firm:

A)wanted to include a commitment to ethics in its mission statement.
B)should relocate its production to another country.
C)should target this market with this product.
D)had a negative impact on any stakeholder group.
E)was prepared to support the development of an ethical climate.

Question 56

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?

Question 57

During which stage of strategic planning can a marketer introduce ethics by simply including ethical statements in the firm's mission statement?

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

Question 58

Denny is considering whether his company's actions have a negative impact on any of its stakeholder groups.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 59

During which phase of the strategic marketing plan would the firm address the issue of being prepared to support the development of an ethical climate?

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

Question 60

The firm's ethical question shifts from "can we" to "should we" serve the market in an ethically responsible manner during the phase of the strategic marketing process.

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

Question 61

Marketers use systems to check whether each potentially ethical issue raised in the planning process is being addressed during the phase of the strategic marketing planning process.

A)payout
B)control
C)implementation
D)situational analysis briefing
E)social responsibility

Question 62

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)wants to include a commitment to ethics in its mission statement.
B)is responsible for ensuring workers are treated fairly and paid a living wage.
C)should target its primary market with its product.
D)must allocate resources to this market or to more important social needs.
E)is prepared to support the development of an ethical climate.

Question 63

The concept of consumerism, which began in the 1960s:

A)is a movement created by industry intended to increase its ethical image.
B)is a movement created by marketers aimed at encouraging consumers to practise ethical purchase behaviour.
C)supports the use of patents, copyrights, and trademarks to protect intellectual property.
D)is a social movement aimed at protecting consumers from business practices that infringes upon their rights.
E)refers to consumers who hold ethnocentric views that make another country's products
"out-group" products.

Question 64

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)smart environmental marketing.
B)ways to benefit from a new social trend.
C)the principles of consumer satisfaction and profit responsibility.
D)corporate responsibility.
E)ways to address consumerism.

Question 65

When the manager weighs the cost of recalling the phones against the cost of potential lawsuits, he is:

A)being innately corrupt.
B)showing his and his development team's immorality.
C)choosing between conflicting outcomes.
D)passing competitor advantage to a competing firm.
E)proving he barely understands the consequences of unethical actions.

Question 66

As part of its emergency response plan to a crisis situation, 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.During strategic planning, Frazer considered whether the firm:

A)should change its sourcing strategy.
B)should relocate its production to an underdeveloped country.
C)should target this market with this product.
D)and its actions had a negative impact on any stakeholder group.
E)had recognized that profits and social responsibility do not go hand in hand.

Question 67

Which of the following parties are relevant to the decision making process in the Wine & Cheese Diners' issue?

A)the firm's legal advisor
B)the firm's flour supplier
C)other branches of the restaurant
D)customers
E)competitors

Question 68

During which phase of the strategic marketing plan would the firm address whether its actions have had a negative impact on any stakeholder group?

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

Question 69

Celebrities stopped endorsing BodyShine Inc.'s products because the products were being manufactured using child labour and poor working conditions.The management at BodyShine needs to address whether it:

A)wants to include a commitment to ethics in its mission statement.
B)is responsible for ensuring workers are treated fairly and paid a living wage.
C)should target its primary market with its product.
D)must allocate resources to this market or to more important social needs.
E)is prepared to support the development of an ethical climate.

Question 70

During which phase of the strategic marketing plan would the firm address relocation of its production to another country?

A)planning
B)implementation
C)control
D)evaluation
E)marketing performance

Question 71

As a final step to ethical decision making at Wine & Cheese Diners, review and refine the various options available and choose a course of action.

A)top managers
B)salespeople
C)customers
D)community leaders
E)government officials

Question 72

As part of its sustainable development drive, Voiceover Inc.purchases more than 10000 megawatt hours of green power, which reduces its greenhouse gas emissions by 21 percent annually.The company is demonstrating:

A)smart environmental marketing.
B)ways to benefit from a new social trend.
C)the principles of consumer satisfaction and profit responsibility.
D)corporate responsibility.
E)ways to address consumerism.

Question 73

Research has shown that the firms which respond in the first few hours of a crisis with an organized plan and with compassion for those affected:

A)are more likely to be sued but pay smaller judgments than those firms which did not respond quickly.
B)are implementing their corporate social responsibility plans effectively.
C)have better business ethics than marketing ethics.
D)suffer fewer long-term effects on their reputations and the level of trust among consumers.
E)are more likely to be creative marketers than those firms which did not respond quickly.

Question 74

Locating production facilities in foreign countries to take advantage of lower-cost labour creates the ethical question of whether the firm:

A)wants to include a commitment to ethics in its mission statement.
B)is responsible for ensuring workers are treated fairly and paid a living wage.
C)should target this market with this product.
D)must allocate resources to the target market or to more important social needs.
E)is prepared to support the development of an ethical climate.

Question 75

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

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

Question 76

It is policy for Helten Inc.to issue an annual report that discusses how the organization has performed against its own standards of ethical conduct.In strategic planning, Helten's report is part of the phase.

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

Question 77

In the planning phase, Platonic Inc.must consider whether:

A)any of the firm's actions have a negative impact on any stakeholder group.
B)the firm is prepared to support the development of an ethical climate that would maintain a strong ethical position.
C)the firm's products are priced fairly.
D)the firm is prepared in the event of an ethical lapse.
E)the firm should target this market segment with its product.

Question 78

Which of the following is true about the ethical and social criticisms of marketing?

A)Marketers are criticized only when they deliberately breach the trust of their customers or the general public by engaging in unethical practices.
B)There is no question of unethical company conduct if the firm's promotional activities are legal.
C)Deceptive advertising regarding the features of a product has become so common that it often escapes criticism.
D)Penalizing companies for deceptive advertising boosts customers' confidence and trust in marketers.
E)Marketers are criticized for making people feel more valued for using the products than for
Who they are as individuals.

Question 79

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 as not to interfere with individual's 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 the short-term goals of each individual within the firm.
E)competitive advantage must be passed on to the competing firm.

Question 80

Which of the following should be Wine & Cheese Diners' next step?

A)pursue legal discourse
B)reduce its number of employees and shift the location of the restaurant
C)identify the issues
D)choose a course of action
E)brainstorm and evaluate alternatives