48) 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. The first thing Garrett should do is to
A) identify issues that need to be addressed.
B) promote the firm’s corporate social responsibility efforts.
C) gather information and identify stakeholders.
D) brainstorm alternatives.
E) choose a course of action.
49) Hisaoki picks up the local newspaper and reads a stinging letter to the editor criticizing his
beverage company for supporting a sporting event for children with disabilities. 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. Hisaoki’s company
failed to
A) identify issues.
B) promote the firm’s corporate social responsibility efforts.
C) analyze the needs of the industry.
D) brainstorm and evaluate alternatives.
E) choose a course of action.
50) 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.
51) 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 possible ethical issues.
B) that unethical actions can impact stakeholders 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.
52) All of the following statements regarding corporate social responsibility are true except
A) firms believe that they have legal and economic duties in addition to responsibilities to
society.
B) a firm’s responsibilities to society are not associated with the demands, expectations,
requirements, and desires of various stakeholders.
C) CSR can be defined as context-specific actions and policies, taking stakeholders’ expectations
into account, to achieve what is referred to as the triple bottom line.
D) today, virtually all large and well-known companies engage in some form of CSR.
E) CSR actions are voluntary.
53) 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 alternatives.
D) choose a course of action.
E) evaluate the legal ramifications.
54) 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 evaluating 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
55) 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
A) engage in legal discourse.
B) vote, with the majority deciding the best course of action.
C) reidentify the issues.
D) choose a course of action.
E) brainstorm for alternatives.
56) 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 evaluating
alternatives. ________ then review and refine these alternatives, and choose a course of action.
A) Company leaders and managers
B) The firm’s lawyers
C) Key customers
D) Community leaders
E) All stakeholders
57) 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 evaluating 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) generates the best solution for the stakeholders.
58) 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 evaluating 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.
59) Imagine the use (or misuse) of data collected from consumers by a marketing research firm.
One of the issues that might arise is the way the data are collected. At what step in the
framework for ethical decision making would this issue be identified by the marketing research
firm?
A) Step 1
B) Step 2
C) Step 3
D) Step 4
E) Step 5
60) 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
61) Every year, General Mills issues a report discussing how the firm has performed against its
own standards of conscious marketing. This report is part of General Mills’ ________ phase of
its strategic marketing planning process.
A) planning
B) implementation
C) control
D) evolution
E) marketing mix
62) 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
63) Marketers that include ethical policies and standards in the firm’s mission or vision
statements are introducing these concepts at which stage of the strategic marketing planning
process?
A) implementation phase
B) control phase
C) planning phase
D) evaluation phase
E) idea generation phase
64) During the ________ phase of the strategic marketing planning process, marketers utilize
systems to check whether each conscious marketing issue raised in earlier phases was addressed.
A) implementation
B) control
C) planning
D) assessment
E) social responsibility
65) Alicia has been asked to approve a marketing campaign that promotes food products to
children. She is concerned that the food products are not particularly nutritious, although they are
not as bad as the products sold by competitors. The ethical decision-making metric will allow
Alicia to
A) brainstorm alternative food products to promote in the campaign.
B) consider the profit potential of approving the campaign.
C) assess the likelihood that parents will purchase the products for their children.
D) use a series of tests to evaluate alternative courses of action.
E) disregard personal ethical considerations in the decision-making process.
66) CSR can be described as context-specific actions and policies, taking stakeholders’
expectations into account, to achieve what is referred to as the triple bottom line. The triple
bottom line includes ________ performance.
A) economic, social, and environmental
B) economic, social, and political
C) financial, economic, and social
D) social, environmental, and political
E) financial, social, and environmental
67) When Toyota owners began to report problems with sticking accelerator pedals and
nonfunctioning brakes, Toyota at first ignored or rejected the claims. Eventually, the company
evaluated the issue and issued a recall. 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
68) For every consumer who purchases a pair of TOMS shoes for $55, the company promises
that a needy 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 of its products.
69) 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
70) 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
71) 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) The company should brainstorm the available alternatives.
B) The company should ask its managers to vote for or against public disclosure.
C) The company should let the board of directors decide what to do.
D) The company should identify the issues raised by the situation.
E) The company should find out who purchased the meat and offer them refunds in return for
their silence.
72) Elena is the CEO of a small manufacturing firm. She is concerned with meeting the
investment objectives of the firm’s shareholders, which are at odds with the firm’s CSR
programs. Deep down, Elena’s main concern is making sure the firm achieves a profit, which
reflects an attitude that
A) a firm’s responsibilities go beyond its economic and legal duties.
B) resists the idea that firms need to acknowledge the impact of their actions on others.
C) typical of nearly all small manufacturing firms.
D) a reaction to regulatory directives of the U.S. government.
E) fails to respect the ethical standards of business.
73) How might a technology company like Apple ensure that it behaves in a socially responsible
way toward its employees?
A) It can pay at least minimum wage when the law requires it.
B) It can adhere to government-mandated safety standards in the workplace.
C) It can ensure that pay practices are fair at all levels of the company.
D) It can ensure 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.