Question 1

After a rash of embarrassing and potentially illegal activities in her organization,Jane decides to evaluate the organization's ethical standards and practices.Jane will assess:

Accepted Answer

Jane should assess all of these factors in order to get a comprehensive understanding of the organization's ethical standards and practices. The strength of the ethical climate, the explicit rules in place, the current code of ethics, and the system for rewarding and punishing behavior all contribute to shaping the ethical culture of the organization. By evaluating all of these factors, Jane will be better equipped to identify areas for improvement and establish a plan for addressing ethical issues.

Question 2

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

Accepted Answer

Firms with strong ethical climates tend to prioritize social responsibility and ethical behavior in their business operations. This may include offering fair working conditions, reducing their environmental impact, and engaging in philanthropic activities. While they may still employ business development consultants and invest in sales training software, these actions alone do not differentiate them significantly from other companies.

Question 3

Which of the following types of unethical behavior are likely to be observed in marketing environments?

Accepted Answer

All of the above types of unethical behavior are commonly observed in marketing environments. High pressure sales techniques, deceptive sales tactics, misrepresentation of company data, and misleading advertising are all examples of unethical behavior that marketing professionals should avoid.

Question 4

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

Accepted Answer

The Johnson & Johnson Credo clearly states its responsibility to users of its products, employees, the community, and its stockholders. This order of priority reflects the company's commitment to putting people first before profits.

Question 5

The AMA Code of Ethics is silent with regard to:

Accepted Answer

The AMA Code of Ethics addresses issues related to regulators, customers, economically vulnerable segments, and consultants, so it is not silent on any of these topics.

Question 6

Edward is seriously considering developing his entry-level marketing position into a full-fledged career.His mentor suggested he learn and demonstrate the Ethical Values in the AMA Code of Ethics.Which of the following is not one of those Ethical Values?

Accepted Answer

Dedication to increasing the return on investment for shareholders is not one of the Ethical Values in the AMA Code of Ethics. The other choices are all ethical values that are emphasized in the code.

Question 7

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:

Accepted Answer

The new real estate disclosure regulations require sellers and their agents to disclose any existing problems to potential buyers, regardless of whether or not they are asked. This addresses the marketing ethical problem of withholding information, as sellers and agents are now required to provide full disclosure to buyers.

Question 8

The Johnson & Johnson Credo:

Accepted Answer

The Johnson & Johnson Credo has guided the firm's actions and decisions since it was written in the 1940s. It is not specifically a response to the Tylenol incident and it is not a detailed description of potential problems for the company. It is also not necessarily copied by all other pharmaceutical companies, although it has been widely respected as a model for corporate responsibility. While the effectiveness of the Credo during the Tylenol crisis has been debated, it remains a foundational document for the company's values and principles.

Question 9

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

Accepted Answer

The answer of In a recent Gallup survey,which of the...

Question 10

Almost every organization includes values and ethics as part of their mission statement and includes a set of explicit rules in the company's employee handbook.Once the rules are in place there must be:

Accepted Answer

Once the rules are in place, a system of controls that rewards appropriate behavior and punishes inappropriate behavior should be established. This helps ensure that employees are incentivized to follow ethical guidelines and that there are consequences for violating them. Option B is not appropriate as it does not encourage appropriate behavior, and can lead to a negative workplace culture. Option C can be useful, but weekly seminars may not be necessary, and it may encourage a "check the box" mentality rather than true commitment to ethics. Option D is not feasible as customers cannot be expected to adhere to the company's internal rules.

Question 11

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:

Accepted Answer

By ensuring that long-term goals are aligned with the short-term goals of each individual within the firm, managers are more likely to make decisions that benefit the firm and society in the long run, while also satisfying their own short-term goals. A and C are not feasible solutions, as firms cannot solely base decisions on ethics or society's needs. B is also not a good option, as long-term goals should be clearly defined and communicated to all employees in order to ensure they are working towards the same objectives. Therefore, the best option is D.

Question 12

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:

Accepted Answer

The paragraph mentions that Jacqueline expects to find explicit rules governing the firm's transactions in the employee handbook, which is option C. Options A, B, and D are not mentioned or implied in the paragraph. Therefore, option E is also not relevant.

Question 13

Elizabeth has developed a promotional campaign for a client that promises a hefty return for her cash-poor business.While the campaign does not violate any laws,it might be considered manipulative and misleading,especially when targeted toward senior citizens.If Elizabeth were to consult the AMA Code of Ethics she would discover that:

Accepted Answer

The AMA Code of Ethics emphasizes the importance of ethical behavior in advertising, and encourages communication professionals to be truthful and accurate in their representations. Even if a campaign does not violate any laws, it may still be unethical if it is manipulative or misleading. In this case, Elizabeth should carefully consider the ethical implications of her campaign and be prepared to justify its ethical soundness. The AMA Code of Ethics provides guidance on ethical decision-making in advertising and can be a useful resource for Elizabeth in this situation.

Question 14

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

Accepted Answer

By removing all Tylenol from the shelves, Johnson & Johnson made a difficult but ultimately wise decision to prioritize the safety and well-being of their customers. This action demonstrated their commitment to credibility and integrity, even if it meant a short-term loss in profits.

Question 15

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

Accepted Answer

The use of sweatshop labor, marketing of dangerous products, and products that may damage the environment are all examples of ethical issues in marketing. These issues are not just marketing problems but also have ethical implications that firms need to consider. Therefore, the best choice is D - marketing ethical issues.

Question 16

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:

Accepted Answer

The statement suggests that some executives and corporate boards do not perceive social responsibility as part of their mission or responsibility, implying that they consider it to be beyond the norms of corporate ethical behavior. Therefore, option E is the best choice. Options A, B, and D suggest that social responsibility is a basic requirement or a component of basic business ethics, which contradicts the statement. Option C suggests that social responsibility is the key to operational effectiveness, which could be true, but it is not mentioned in the statement.

Question 17

One of All Army Credit Union's customers complained to the home office about huge fees assessed to his account that were not mentioned when he opened the account.The manager of All Army Credit Union should begin handling the situation by:

Accepted Answer

The best choice would be for the manager to determine what explicit rules exist for governing the firm's transactions, as this will allow them to determine if there were any fees that were not disclosed to the customer. This will also help to identify any issues with the credit union's account opening process or fee disclosure policies. Assessing the ethical climate, reviewing the code of ethics, and determining punishment for the staff member who generated the fees may be necessary steps in addressing the issue, but they should come after a thorough review of the explicit rules governing the credit union's transactions.

Question 18

Janice was shocked to learn that the real estate company she had just gone to work for did not have a(n)__________,the starting point for creating a strong ethical climate.

Accepted Answer

A set of ethical values is the starting point for creating a strong ethical climate in any organization. Without a clear definition of what is considered ethical behavior, employees may be unclear about what is expected of them and may engage in unethical practices. While ethical behavior seminars, employment contracts, social responsibility programs, and ethical activity bonuses are all important components of an ethical climate, they are not the starting point.

Question 19

Being socially responsible is generally considered:

Accepted Answer

The answer of Being socially responsible is generally considered:
...

Question 20

One of Big Ben Clock Company's customers has complained to the home office about high-pressure sales tactics used by one of Big Ben's sales representatives.The company's code of ethics explicitly directs sales personnel not to engage in such practices.The manager of Big Ben will likely:

Accepted Answer

The manager will likely determine an appropriate punishment for the sales representative as the code of ethics already explicitly prohibits high-pressure sales tactics.

Quiz 3: Marketing Ethics