MKTG Chapter 4

Which of the following statements about social responsibility is correct? a) Social responsibility dimensions do not include philanthropic concerns. b) Social responsibility does not deal with the total effect of all marketing decisions on society. c) Social responsibility refers to a company's obligation to maximize its positive impact and minimize its negative impact on society. d) Social responsibility dimensions do not include economic concerns. e) Social responsibility refers to principles and standards that define acceptable conduct in marketing as determined by various stakeholders.

If Hefty Bags expresses concern that its products are having too great an impact on the pollution of ground water under landfills, this concern is directly related to the firm's a) social responsibility. b) marketing concept. c) profitability. d) ethics. e) distribution system.

Avon's Breast Cancer Awareness Crusade, which has raised nearly $400 million for community-based breast cancer education and early detection services, illustrates the positive consequences of a) social responsibility. b) corporate benevolence. c) green marketing. d) legal responsibility. e) economic responsibility.

After news reports that pharmaceutical giant Merck was aware that its arthritis-fighting drug Vioxx may cause heart problems, the firm's stock plummeted and hundreds of lawsuits were filed against the company. This demonstrates what can occur if firms ignore a) marketing citizenship. b) sociocultural forces. c) environmental causes. d) social responsibility. e) laws regulating car design.

Socially responsible business practices have provided all of the following benefits except a) creating goodwill toward the organization. b) attracting employees. c) reducing marketing costs. d) generating publicity for the firm. e) positively impacting local communities.

The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities expected by stakeholders is called a) marketing citizenship. b) social responsibility. c) stakeholders. d) cause-related marketing. e) strategic philanthropy.

Employees, customers, communities, and investors are all considered ______ in relation to marketing. a) responsibilities b) stakeholders c) shareholders d) constituents e) owners

Any constituent who has a claim in some aspect of a company's products, operations, markets, industry, or outcomes is known as a(n) a) shareholder. b) customer. c) employee. d) manager. e) stakeholder.

Companies that are considered to be good corporate citizens and consider the diverse perspectives of different groups affected by their operations are said to have a ___________ orientation. a) marketing b) sales c) production d) stakeholder e) citizen

When operating on a daily basis, employees and managers at Bank of America consider the perspectives of all individuals and groups that might be affected by their decisions. This is known as a) a philanthropic position. b) marketing citizenship. c) a stakeholder orientation. d) community relations. e) social responsibility.

Which of the following is not a dimension of social responsibility and marketing citizenship? a) Economic b) Ethical c) Legal d) Technological e) Philanthropic

Which of the following is not one of the four dimensions of social responsibility presented in your text? a) Consumerism b) Philanthropic c) Ethical d) Economic e) Legal

Kaitlyn understands that her local catering business has certain responsibilities to society. She knows that she must abide by the laws that apply to her business and try to make a profit. What are the other obligations Kaitlyn should know? a) Ethical and moral b) Economic and ethical c) Philanthropic and legal d) Environmental and ethical e) Ethical and philanthropic

Sometimes business must find a balance between society's demand for social responsibility and investors' desires for profits. This is an example of a(n) ___________ responsibility. a) ethical b) legal c) cost d) philanthropic e) economic

All companies have a responsibility to ______ so they can provide a return on investment to their owners and investors, create jobs for the community, and contribute goods and services to the economy. a) offer the lowest price b) be profitable c) obey their customers d) provide the largest selection possible e) pay employees more than minimum wage

As a firm fulfills its basic economic responsibilities, it must simultaneously a) treat its employees equitably. b) follow a code of business ethics. c) utilize green marketing techniques. d) have a philanthropic focus. e) obey laws and regulations.

Cameron Inc. is a very profitable automobile repair shop. The company is well known for its great service and involvement in the community, but it fails to properly dispose of its used oil as outlined in environmental regulations. Cameron is failing in its ______ responsibilities. a) legal b) ethical c) economic d) philanthropic e) strategic

According to the text, marketing ethics refers to principles and standards that define a) improper behavior in marketing. b) acceptable conduct in society. c) improper behavior in business. d) acceptable conduct in marketing. e) acceptable conduct in general.

Marketing ethics a) refers to laws and regulations that govern marketing. b) refers to principles and standards that define acceptable conduct in marketing. c) maximizes an organization's positive impact and minimizes its negative impact on society. d) is most important for advertising agencies. e) applies well-defined rules for appropriate marketing behavior.

The most basic principles of marketing ethics are a) philanthropic responsibilities. b) economic responsibilities. c) universally accepted behaviors. d) written as laws and regulations. e) included in the marketing code of ethics.

A business that contributes resources to the community to improve the quality of life is taking on a(n) ___________ responsibility. a) ethical b) legal c) cost d) philanthropic e) economic

McDonald's supports and funds Ronald McDonald houses for the families of terminally-ill children to stay in to be near their loved ones. McDonald's action demonstrates the fulfillment of ______ responsibility. a) legal b) society c) philanthropic d) economic e) ethical

At the top of the pyramid of social responsibility for business are ___________ responsibilities. a) ethical b) legal c) cost d) philanthropic e) economic

Actions that promote human health and welfare address the _______ dimension of the pyramid of social responsibility. a) philanthropic b) legal c) ethical d) economic e) social

The practice of linking a firm's product marketing to a particular social cause on an ongoing or short-term basis is known as a) economic responsibility. b) social responsibility. c) ethical marketing. d) cause-related marketing. e) corporate benevolence.

If Ben and Jerry's were to donate 5 percent of every ice cream purchase to shelters for victims of domestic abuse for one month, this would be an example of a) strategic philanthropy. b) ethical responsibility. c) economic responsibility. d) green marketing. e) cause-related marketing.

Which of the following is the best definition of cause-related marketing? a) Linking a firm's products to a particular social cause—either short term or long term b) Using organizational core competencies and resources to address stakeholders' interests and achieve organizational and social benefits c) Donating money to a social cause based on sales of a particular product over a defined period of time d) Developing, promoting, and distributing products that are environmentally safe e) Contributing resources to the community in order to improve the overall quality of life

The close relationship of Home Depot's philanthropic initiatives and its business goals is an example of a) strategic philanthropy. b) strategic ethics. c) cause-related marketing. d) strategic marketing. e) environmental philanthropy.

Who are the primary recipients of the benefits of strategic philanthropy? a) Employees and investors b) Companies and society c) Primary stakeholders d) Managers and companies e) Society and communities

Which of the following is a primary difference between cause-related marketing and strategic philanthropy? a) Cause-related marketing is short term only while strategic philanthropy is an ongoing approach that lasts for years or even decades. b) Strategic philanthropy fulfills a firm's primary social responsibilities while cause-related marketing does not. c) Cause-related marketing is unlikely to have a positive effect on society while strategic philanthropy always benefits society. d) Strategic philanthropy can take on both a financial and nonfinancial format while cause-related marketing only involves financial contributions. e) Customers are likely to feel good about themselves when supporting a cause-related marketing campaign but are unlikely to notice strategic philanthropy.

Which of the following is the best example of strategic philanthropy for Staples, the large office supply chain? a) Donating money to help fight illiteracy of both adults and children b) Having employees volunteer at a charity of their choice two hours a week c) Giving a portion of its profits in August to support charter schools d) Offering discounts to large corporations on their office supplies e) Providing low-income families with school supplies and computer training

Which of the following refers to a firm's specific development, pricing, promotion, and distribution of products that do not harm the environment? a) Marketing ethics b) Social responsibility c) Environmental marketing d) Green marketing e) Conservation marketing

Products that may do harm to the natural environment are inconsistent with a) green marketing. b) the marketing concept. c) consumerism. d) strategic philanthropy. e) the marketing mix.

Which of the following is the best definition of green marketing? a) Using technology and human resources for marketing efforts designed to reduce waste b) Developing, pricing, promoting, and distributing products that do not harm the natural environment c) Protecting the natural environment through the implementation of programs for environmental cleanup d) Using only recycled materials in the production, distribution, and disposal of a company's products e) Meeting the criteria necessary to receive the European Eco-label through efforts designed to protect the natural environment

Merck develops a better way to package and distribute its pharmaceutical products that requires less materials and waste. What major social responsibility issue is Merck addressing? a) The natural environment b) Consumerism c) Marketing ethics d) Legal obligations e) Community relations

StarKist Tuna has frequently extolled its dolphin-safe methods of catching tuna. This is an example of a) community relations. b) waste reduction. c) green marketing. d) strategic philanthropy. e) consumerism.

In Europe, companies can voluntarily apply for a designation to indicate that their product is less harmful to the environment than competing products. This label is known as the a) Green Marketing Stamp. b) Eco-label. c) Forest Stewardship Seal. d) Better Product Project. e) Good Housekeeping Seal.

Which of the following is not one of the four objectives that environmentalists believe companies should implement in order to sustain the natural environment? a) Eliminate the concept of waste. b) Reinvent the concept of a product. c) Force consumers to recycle products. d) Make prices reflect the true cost of a product. e) Make environmentalism profitable.

All of the following are goals of green marketing except a) making the work force match the population in terms of diversity. b) eliminating the concept of waste. c) reinventing the concept of a product. d) making prices reflect the cost. e) making environmentalism profitable

Instead of addressing the question_______, many environmentalists and marketers believe the question should be ______. a) "How can we reduce costs?"; "How can we keep prices low?" b) "Where should we dispose of waste?"; "How can we protect society?" c) "How can we make products better?"; "How can we reduce waste?" d) "How can environmentalism be profitable?"; "Where is the benefit of environmental efforts?" e) "What should we do with our waste?"; "How can we produce products without waste?"

According to some environmentalists, what are the three types of products that all products should be reduced to? a) Durable goods, natural resources, and unsalables b) Nondurable goods, durable goods, and consumables c) Consumables, durable goods, and unsalables d) Environmental goods, recyclables, and salables e) Permanents, temporaries, and renewable resources

Honda produces a variety of automobiles, which makes the company a producer of a) durable goods. b) consumables. c) permanents. d) unsalables. e) salables.

As far as prices are concerned, environmentalists believe prices should a) be based on the cost of materials used to manufacture the product. b) reflect the direct cost as well as the cost of air, water, and soil used. c) be determined by the supply and demand of products in the marketplace. d) include a large tax to defray the costs of environmental compliance. e) be based on the renewability of the resources used to make the product.

What do environmentalists set as an objective for profitability? a) Companies should surpass the strictest environmental standards even if it negatively affects profitability. b) Companies will never be profitable if they comply with environmental standards so taxpayers must subsidize all production. c) Profitability should not be a concern when addressing issues of environmental importance. d) Environmentalism should be made profitable, and companies attempting to protect the environment should not have to compete with those harming it in the marketplace. e) Companies will be more profitable if they work hard to protect the environment because consumers will reward their efforts through loyalty.

Synergy Tech has a program that offers consumers money back for their old Synergy computers so that the materials used to make the computer can be retained within a closed system. Which of the primary environmental goals does Synergy's program address? a) Eliminate the concept of waste. b) Reinvent the concept of a product. c) Make environmentalism profitable. d) Make prices reflect the cost. e) Create fewer durable goods.

Consumerism is a) the efforts of independent individuals, groups, and organizations to protect the rights of consumers. b) President John F. Kennedy's consumer bill of rights. c) marketers' efforts to contribute to the satisfaction and growth of the communities in which they operate. d) the right to be informed. e) the specific development, pricing, promotion, and distribution of products that do not harm the environment.

Angela organized a boycott of a local restaurant because of the owner's obvious prejudicial treatment of Hispanics. Angela's action would most likely be called a) lobbying. b) a public service announcement. c) the right to be informed. d) a social demonstration. e) consumerism.

The Browardton Quilters' Guild has contacted all the major networks to try to warn people about the poor performance of miniature, hand-held sewing machines. These quilters are engaging in a) publicity stunts. b) the right to safety. c) consumerism. d) lobbying. e) political action.

Who of the following is a famous consumer activist? a) Ralph Nader b) Jack Williams c) Ross Perot d) Abraham Maslow e) Adam Smith

Who drafted the Consumer Bill of Rights? a) Bill Clinton b) John F. Kennedy c) Ralph Nader d) Ronald Reagan e) George W. Bush

The four basic rights outlined in the Consumer Bill of Rights include the right to safety, the right to be heard, the right to a) inform, and the right be chosen. b) consumer education, and the right to honesty. c) choose, and the right to be informed. d) redress, and the right to choose. e) honesty, and the right to redress.

Product testing for reliability and quality helps to ensure a consumer's right to a) be heard. b) be informed. c) choose. d) performance. e) safety.

Warnings on television commercials for prescription drugs include a list of sometimes grotesque side effects that are possible when taking that particular drug. The consumer right to _____ most applies to these commercials. a) know b) safety c) be heard d) choose e) be informed

According to President Kennedy's consumer bill of rights, the right to choose means that a) consumers' interests will receive full and sympathetic consideration in the formulation of government policy. b) consumers should have access to a variety of products and services at competitive prices. c) consumers should have access to and the opportunity to review all relevant information about a product before buying it. d) marketers have an obligation not to knowingly market a product that could harm consumers. e) consumers should be able to buy products at prices they are willing to pay.

Sharese wants to buy a new couch, but there is only one place in her town that sells them, and she lives in an isolated area. Sharese most likely feels her consumer right to ______ has been violated. a) choose b) be heard c) safety d) recourse e) be informed

According to the consumer bill of rights, the idea that consumers' interests should receive full and sympathetic consideration in the formulation of government policy is known as the right to a) be heard. b) choose. c) be informed. d) safety. e) listen.

How would marketers most likely benefit from the consumer's right to be heard? a) Consumers will also tell others about their bad experience with the company. b) The company can use the information to make its products better. c) They gain valuable information about their competitors. d) Consumers are more loyal to companies who have wronged them. e) More information about the products can be posted online.

According to the consumer bill of rights, the right to be informed means that a) consumers' interests will receive full and sympathetic consideration in the formulation of government policy. b) consumers should have access to a variety of goods and services at competitive prices. c) consumers should have access to and the opportunity to review all relevant information about a product before buying it. d) marketers have an obligation not to knowingly market a product that could harm consumers. e) consumers should be told when the quality of a product has changed.

Target's Take Charge of Education program donates 1 percent of a customer's total purchase to the school of his or her choice. What social responsibility issue does this program address? a) Consumerism b) Marketing ethics c) Community relations d) The natural environment e) Promotion

Various stakeholders and _______ determine the acceptable standards of conduct involving ethics. a) the organizations' ethical climate b) the federal government c) various self-regulating bodies d) governmental agencies e) the industry leaders' ethics

Ethical standards for acceptable conduct for a company should a) be clearly dictated by top management and enforced by all management staff. b) consider only the point of view of the customers and the employees. c) reflect the desires of the company's employees for a quality working environment. d) be based on company, industry, government, customer, and society viewpoints. e) be derived from federal, state, and local laws and regulatory agencies.

When is the best time to deal with marketing exchange problems concerning ethics? a) Right before the problem is made public b) After the problem has received extensive media attention c) Immediately after the problem is discovered d) When lawsuits are brought against the company e) During the strategic planning process

The boundary between legal and ethical issues is a) clearly distinguished. b) blurred. c) nonexistent. d) determined by the courts. e) determined by marketing managers.

A marketing ethics issue likely exists when a) company members disagree about a marketing decision. b) an activity does not benefit the organization but benefits the environment. c) an activity results in increased prices for the consumer. d) a consumer is dissatisfied with a marketing decision. e) an individual or organization must choose from among several actions that must be evaluated as right or wrong.

Reese is facing an ethical issue at work and has determined four possible courses of action he could take. He knows he should evaluate each possible action as _____ in order to choose the most appropriate action. a) positive or negative b) profit increasing or decreasing c) right or wrong d) appreciated or unappreciated by his coworkers e) courageous or cowardly

An ethical issue is a) likely to arise when an employee's moral philosophy is consistent with the organization's expectations of the employee's behavior. b) an identifiable problem, situation, or opportunity requiring an individual to choose from among several actions that must be evaluated as right or wrong. c) most often found in personal selling situations. d) easily resolved by consulting written laws and regulations. e) characterized by a blatant disregard for human rights and equality.

_____ ethical issues generally surface when companies fail to disclose risks associated with a product or information regarding its function, value, or use. a) Promotion-related b) Distribution c) Corporate d) Product-related e) Safety

Product-related ethical issues arise when marketers a) provide consumers with inadequate information about how a product is priced. b) force channel intermediaries to behave in a specific manner. c) bribe salespeople to push one product over another. d) fail to disclose information to consumers about the risks associated with using a product. e) manufacture a product that is very similar to a competing product.

If Firestone failed to inform consumers of design problems associated with its Wilderness AT tires, it would have been engaging in unethical behavior in regard to which of the following marketing issue areas? a) Planning b) Distribution c) Promotion d) Product e) Pricing

If a potato chip manufacturer introduces a new, bigger size bag of chips according to the label, when in actuality, the new bag is slightly smaller in contents, a _____ ethical issue exists. a) decision-making b) promotion-related c) product-related d) pricing-related e) distribution-related

In testing her firm's new TV ads for Transformer action figures, Beth discovers the ads make children think many of the action figures can actually fly. Beth now faces an ethical decision regarding which element of the marketing mix? a) Product b) Price c) Distribution d) Promotion e) Strategy

A cereal company advertises that its newly launched product can lower cholesterol although the company cannot provide evidence to substantiate this claim. This situation involves an ethical issue related to which element of the marketing mix? a) Product b) Pricing c) Promotion d) Distribution e) Production

When a purchasing agent for Intel is offered a bribe by a silicon manufacturer salesperson, a) a promotion-related ethical issue has been created. b) the purchasing agent is free to accept the bribe without consequences. c) an ethical issue primarily related to the pricing of products exists. d) there is an ethical dilemma for the purchasing agent that is product related. e) no ethical issue exists under these circumstances.

What are some of the common price-related ethical issues? a) Misleading advertising and predatory pricing b) Additional discounts and price fixing c) Not disclosing the full price and value-pricing d) Predatory pricing and price fixing e) Loss leaders and deceptive pricing

Pharmaceutical companies have at times been accused of acting unethically by taking advantage of customers in the area of a) promotion. b) pricing. c) distribution. d) product. e) manufacturing.

After a hurricane strikes the U.S. Gulf Coast, a tremendous demand for gas-powered generators occurs. Ace's Hardware, which stocks a large inventory of these items, faces major ethical decisions with regard to the ___________ issue. a) product b) advertising c) personal selling d) publicity e) pricing

Distribution-related ethical issues arise when marketers a) do not provide intermediaries with enough information about how a product is priced. b) force channel intermediaries to behave in a specific manner. c) bribe salespeople to push one product over another. d) fail to disclose information to consumers about the risks associated with using a product. e) distribute a product that is very similar to a competing product.

At times, large retailers such as Walmart may be accused of coercion in dealing with intermediaries because of the amount of power and control these large companies have over many of their suppliers. This is most potentially a ______ related ethical issue.` a) promotion b) pricing c) culture d) product e) distribution

According to the text, which of the following is not one of the factors that influence the ethical decision-making processes in a marketing organization? a) Organizational culture b) Attitudes toward religion c) Opportunity d) Individual factors e) Organizational pressure

All of the following are factors that influence the ethical decision-making process except a) opportunity. b) individual factors. c) organizational culture. d) organizational pressure. e) salary or wages.

Three factors that influence the ethical decision-making process in marketing include a) individual factors, organizational culture, and peer influence. b) opportunity, personal moral philosophies, and situational variables. c) individual factors, organizational factors, and opportunity. d) social forces, laws, and organizational factors. e) peer influences, personal moral philosophies, and opportunity.

Since most ethical choices pertaining to marketing decisions are jointly made, an organization must ensure the _____________ reflects the organization's values, beliefs and norms. a) code of ethics b) code of conduct c) enforcement of ethical standards and screening techniques d) employee self-regulation and screening procedures e) organizational or corporate culture

Ethical choices in business situations are most often made a) by top managers. b) by front-line employees. c) jointly in work groups and committees. d) in consultation with family, friends, and coworkers. e) individually.

At his new job, Chris notices that everyone places high values on their families and each others' families, birthdays are always celebrated, and flexible schedules are permitted to facilitate family involvement as long as the work is still getting done. Everyone is very relaxed and friendly. Chris has made several observations about the a) organizational plan. b) ethics program. c) morale and welfare program. d) codes of conduct. e) corporate culture.

Tasha recently changed employers within the same industry. At her old company, employees routinely took home company pens, pencils, paperclips, and note pads, and they frequently made personal long-distance calls on company phones. Tasha observes that employees do not engage in such practices at her new company. What Tasha sees is best described as a difference in a) significant others. b) profit objectives. c) corporate culture. d) legal climate. e) corporate goals.

Amanda believes that the corporate culture at her company is best conveyed in informal ways. What are some informal ways that corporate culture is most likely to be expressed? a) Codes of conduct and ethics officers b) Memos and cultural manuals c) Work habits and dress codes d) Extracurricular activities and work habits e) Ceremonies and anecdotes

Which of the following employees is most responsible for setting the ethical tone for the entire marketing organization? a) Marketing manager b) Marketing employee c) Product manager d) Chief executive officer e) Vice president of marketing research

A set of values, beliefs, goals, norms, and rituals shared by members of an organization is called a) organizational factors. b) corporate culture. c) codes of conduct. d) ethical environment. e) company ethos.

The effect that coworkers have on the ethical decision-making process depends on a person's exposure to ethical and unethical behavior. Which of the following statements about ethical decision making is true? a) The more a person is exposed to ethical activity in the organization, the more likely he or she will behave unethically. b) The more a person is exposed to unethical activity in the organization, the more likely he or she will behave unethically. c) The more a person is exposed to unethical activity in the organization, the less likely he or she will pay attention to that activity. d) The more a person is exposed to ethical activity in the organization, the less likely he or she will pay attention to that activity. e) Exposure to ethical and unethical activity has no effect on a person's decision-making process.

Opportunity provides a pressure that may determine ethical decisions in marketing. Opportunity is best thought of as a) unethical behavior found in top management. b) a favorable set of conditions that limit barriers or provide rewards. c) the principles or rules that individuals use to determine the way to behave. d) a person's relationship with others in the organization. e) a problem or situation requiring an individual to choose a course of action.

Justin believes that certain conditions at his company are very conducive to engaging in unethical behavior because these conditions provide rewards such as faster promotions and better salaries for those who bend the rules. Justin's company seems to allow ______ for unethical behavior. a) peer pressure b) individuality c) corporate culture d) exposure e) opportunity

In response to organizational pressure to perform, Barry used a deceptive sales tactic to obtain a major sales contract. He was surprised that he wasn't punished for his behavior and even received a substantial bonus for securing the contract. Given the same opportunity in the future, Barry will most likely a) blow the whistle on his employer to a government agency. b) report his employer to the industry's trade association. c) express his discomfort with the situation to his supervisor. d) not use similar sales tactic again. e) use similar sales tactic again.

Karrie, a new salesperson for Brenham Foods, calls in an order for twice the amount of merchandise that Corner Market requested because she knows that it will increase her sales and will not be noticed by Corner Market. This is an example of how ___________ influences ethical decision making. a) opportunity b) exposure c) a significant other d) a peer e) an external reward

As a media buyer for the Angelo Agency, Chloe knows that no one ever checks to see if her phone calls are business related or personal. With regard to ethical behavior, this situation relates most closely to a) exposure. b) individual factors. c) desire. d) opportunity. e) organizational factors.

Which of the following statements best summarizes the perspective that most marketing managers have on unethical behavior? a) Most do not believe that unethical conduct will lead to success and refrain from taking unethical opportunities. b) They believe that unethical behavior is useful in the short run but detrimental in the long run. c) They feel that codes of conduct will eliminate any unethical behavior from occurring in their organizations. d) They believe that unethical behavior will be harmful in the short run but have little impact in the long run. e) Most do not see ethical or unethical behavior as a concern to their organization because the opportunities do not exist.

___________ is (are) most likely to improve ethical behavior in a marketing organization. a) Hiring goal-directed employees b) Allowing employees to follow their own ethical standards c) Encouraging employees to identify ethical issues and to decide what is right d) Obeying the law and accepting all other behavior e) Eliminating unethical individuals and improving the organization's ethical standards

Which of the following would be consistent with Johnson Chemicals' understanding of the "bad apple" concept of improving the ethical conduct of salespeople? a) Publishing ethical guidelines for salespeople b) Firing unethical salespeople c) Retraining unethical salespeople d) Using customers to review ethical guidelines e) Scrutinizing top management's conduct

It is possible to improve ethical behavior in an organization by a) changing the employees' individual moral philosophies. b) increasing legislation aimed at unethical practices. c) decentralizing authority and responsibilities in the firm. d) offering ethics awareness training for managers and professionals in the organization. e) improving the organization's ethical standards and eliminating unethical persons.

___________ are formalized rules and standards that describe what a company expects of its employees in terms of ethical behavior. a) Job descriptions b) Ethics clauses c) Behavior contracts d) Codes of conduct e) Ethics contracts

Codes of conduct are also frequently known as a) ethics mandates. b) codes of ethics. c) corporate culture. d) ethics compliance programs. e) moral codes.

Which of the following statements about codes of conduct is true? a) All publicly-traded companies have formal codes of conduct. b) Most large corporations have formal codes of conduct. c) Codes of conduct are unnecessary for small- and medium-sized companies. d) Approximately half of large companies have formal codes of conduct. e) Very few companies have formal codes of conduct, but most have informal codes.

Which one of the following statements about codes of conduct (ethics) is false? a) They are formalized rules and standards that describe what a company expects of its employees. b) They must be detailed enough to take into account many possible situations. c) They encourage ethical behavior by eliminating opportunities for unethical behavior because employees know what is expected of them. d) They help marketers deal with marketing issues by prescribing and limiting certain activities. e) Top management must provide leadership in implementing codes of ethics.

Who is typically responsible for creating, distributing, and enforcing a formal code of conduct? a) Chief executive officer b) Vice president of marketing c) Morale manager d) Ethics officer e) Managers and supervisors

Within the scope of her job, Sue Hanson gives ethics advice, disseminates a code of ethics, reviews the code of ethics, and takes action on ethics violations. Sue is the ____________ in her company. a) attorney b) marketing manager c) ethics officer d) owner e) consumer activist

Beth knows that her company has a formal code of conduct, but she does not see this code being equally and consistently applied to all employees. Beth believes that this sporadic enforcement of the formal code only enhances the _____ for committing unethical acts. a) opportunity b) culture c) individual factors d) compliance e) punishment

Which of the following is not usually a responsibility of an ethics officer? a) Drafting, disseminating, and updating a mission statement b) Drafting, disseminating, and updating a code of conduct c) Training employees to deal with ethical issues d) Creating and maintaining a confidential system to answer questions about ethical issues e) Taking action on possible violations of the code of conduct

Because laws are often difficult to interpret and understand, company codes of conduct and compliance programs should a) avoid involving any issues deemed to be of a legal nature. b) focus on those issues most likely to be of legal, rather than strictly ethical, consequence. c) incorporate both legal and ethical concerns that the company deems most appropriate. d) try to fully cover the laws guiding ethical decision making that is most applicable. e) offer very general ethical principles without providing any level of specificity.

Which of the following statements about implementing an ethics and legal compliance program is false? a) It requires open communication. b) It requires consistent enforcement of standards from the code of conduct. c) It rarely needs to be revised. d) It requires taking reasonable steps in response to violations of standards. e) It helps create a buffer zone on issues that could trigger serious legal complications for the company.

What is the major difference between social responsibility and marketing ethics? a) Marketing ethics varies by industry whereas social responsibility involves universal rules of conduct. b) There is legislation that deals with marketing ethics, but none for socially responsible practices. c) Marketing ethics is concerned with organizational practices, and social responsibility is concerned with individual behavior. d) There is no difference; they are synonymous terms. e) Social responsibility deals with the total effect of marketing decisions on society, whereas marketing ethics relates to individual and group evaluations in marketing situations.

Which of the following statements is false? a) If an ethical or social responsibility issue can withstand open discussion that results in agreement or limited debate, an acceptable solution may exist. b) A company that supports both socially responsible decisions and adheres to a code of conduct is likely to have a positive impact on society. c) If other persons in the organization approve of an activity and it is legal and customary within the industry, chances are that the activity is acceptable from both an ethical and social responsibility perspective. d) Social responsibility and marketing ethics are interrelated. e) Social responsibility and marketing ethics are the same thing and can be used interchangeably.

In a meeting with key personnel, Watson Corporation's president speaks to the firm's managers about social responsibility in business today. He suggests that the key to being socially responsible is to a) watch profit impacts very carefully. b) maintain an updated code of ethics. c) monitor changes and trends in society's values. d) carefully interpret all new legislation. e) stay with present programs over the long run.

In a classroom discussion, Jacob agrees with Marcie that consumers generally want biodegradable beverage cups. However, he says that businesses in that industry must evaluate whether a) they can be produced. b) consumers are willing to pay higher prices for them. c) the competition will ever make them. d) stores will stock them. e) they can be effectively promoted.

Companies that incorporate ethics and social responsibility into their strategic plans are likely to experience a) improved marketing performance. b) increased lawsuits. c) negative publicity. d) reduced costs. e) disappointed shareholders.

Milton Hershey contributed resources to the community to improve the overall quality of life for consumers, employees, and the community in general. This reflected his ____________ responsibility. a) philanthropic b) ethical c) legal d) economic e) shareholder

The fact that the Hershey company has recently reduced its waste by 360,000 pounds through a packaging redesign is evidence of its focus on a) a philanthropic culture. b) an ethical culture. c) social responsibility. d) the legal climate. e) the economic environment.

Emily, Hershey's ethics officer, is responsible for creating and distributing a(n) ___________, enforcing the code, and meeting with organizational members to discuss or provide advice about ethical issues. a) organizational culture b) ethics handbook c) decision-making process d) sales representation e) code of conduct

Hershey and its employees benefit in many ways from its strong ethics compliance program. Which of the following is not one of the benefits of such a program? a) Enforcement and discipline of ethical infractions b) Better employee understanding of ethical issues c) Free-flowing communication within the firm regarding ethical issues d) Costly programs to develop and maintain e) High level of organizational guidance for employees

Silk Soymilk's sponsorship of the FarmAid concert is best thought of as an example of its a) cause-related marketing effort. b) ethical responsibility. c) green marketing strategy. d) philanthropic activities. e) environmental strategy.

Silk Soymilk's use of organic, non-genetically modified soybeans in its product is an example of a) green marketing. b) social consciousness. c) ethical responsibility. d) cause-related marketing. e) corporate benevolence

The use of wind power to offset energy consumption by Silk Soymilk's parent company demonstrates its commitment to a) consumerism. b) ethical marketing. c) social responsibility. d) philanthropic strategy. e) environmental marketing.

Silk Soymilk's parent company, WhiteWave Foods, is currently operating at the _____ level of the social responsibility pyramid. a) economic b) philanthropic c) ethical d) legal e) cause-related