77) Which of the following is a major reason for the violation of ethics codes?
A) government regulation
B) family influence
C) lack of religious beliefs
D) fear of disciplinary action
E) perceived behavior of top management
78) Six executives of Tyson Foods, one of the world’s largest poultry, beef, and pork processors,
were arrested for the illegal smuggling of undocumented foreign workers into the United States
to work at Tyson plants. Based on this information, Tyson’s violations may have been the result
of ________, one of the major reasons some company employees engage in unethical behavior.
A) a mission statement that is too broad
B) the absence of a written core values statement
C) the absence of whistle-blowers
D) top management’s behavior
E) the absence of a stakeholder code of ethics
79) A home repair referral network profiles home service companies for homeowners looking for
a contractor or handyman. To ensure that recommended companies are reliable, the network
checks the business licenses, insurance coverages, Better Business Bureau records, and trade
references. The recommended home service company also has to agree to a(n) ________, which
includes maintaining professionalism and guaranteeing the quality of its work.
A) statement of cultural values
B) statement of values and beliefs
C) industry endorsement
D) code of ethics
E) contract due diligence
80) The American Marketing Association Statement of Ethics is centered on three general
norms, one of which is to
A) initiate fair and honest dialogues in developing markets.
B) foster trust in the marketing system.
C) champion new legislation that protects ethical business firms and punishes those who abuse
consumer trust.
D) support governmental agencies in their quest to identify and prosecute those who break the
laws of ethical marketing.
E) contribute to society’s well-being through charitable contributions and cause-related
marketing efforts.
81) The American Marketing Association Statement of Ethics identifies six key aspirational
ethical values, one of which is
A) diversity.
B) integrity.
C) openness.
D) perseverance.
E) charity.
82) A health club wishes to follow the American Marketing Association Statement of Ethics and
decides to offer a modified workout class at a very low price for senior citizens who otherwise
might not be able to afford their services. This action exhibits which key AMA ethical value?
A) honesty
B) fairness
C) respect
D) openness
E) responsibility
83) Even though his business is very small, the owner of a local restaurant wants to follow the
American Marketing Association Statement of Ethics. Every month there is a “company
cookout.” At the end of the meal, the employee (from owner to members of the cleaning staff)
who had the best idea for improving the restaurant is honored and given a $25 gift certificate
plus a T-shirt that reads, “Great Minds Think Like Me.” This action exhibits which key AMA
ethical value?
A) honesty
B) responsibility
C) fairness
D) respect
E) openness
84) Employees who report unethical or illegal actions of their employers are referred to as
A) whistle-blowers.
B) scabs.
C) cronies.
D) corporate snitches.
E) ombudsman.
85) Whistle-blowers refer to
A) employees who are simultaneously employed by competing firms and who trade company
secrets.
B) employees who blackmail or extort money from their employers.
C) employees who are coerced by their employers to participate in illegal or unethical activities.
D) customers who report unethical or illegal actions of the firms that market the offerings they
purchased.
E) employees who report unethical or illegal actions of their employers.
86) An employee who contacts the SEC to report her company’s use of illegal accounting
procedures is an example of a(n)
A) crony.
B) scab.
C) whistle-blower.
D) corporate snitch.
E) ombudsman.
87) Which of the following statements best describes the activities of a whistle-blower?
A) An employee is unhappy because his company is downsizing.
B) An employee tells the Consumer Product Safety Commission his company falsified safety
reports on a child’s car seat.
C) A salesperson for a company finds out that a member of his softball team, who works for
another firm, “borrowed” some paper clips from that firm to use for his personal use and wants to
“tell on him.”
D) An employee criticizes his employer’s finance personnel to his fellow co-workers for picking
the wrong stocks in his retirement fund; they lost value last year due to a downturn in the stock
market.
E) An employee spends the afternoon at work studying for her test rather than counting
inventory as she was supposed to be doing.
88) Which of the following statements best describes the activities of a whistle-blower?
A) Mattel issued a statement apologizing for the 150 of the 10 million Power Wheels cars and
trucks the company sold that had caught on fire.
B) Mattel research engineers proved that the spate of fires in the company’s Power Wheels cars
and trucks was the result of consumers’ tinkering with the engine.
C) A former Mattel employee owned one of the Mattel Power Wheel cars that caught on fire and
slightly burned its rider.
D) The Consumer Product Safety Commission investigated the fires and ordered a recall to
repair all of the 10 million units that had been sold.
E) A Mattel employee reported to the Consumer Product Safety Commission that Mattel
knowingly sold Power Wheels with an electrical system that could catch on fire after prolonged
use.
89) Two former sales representatives of Amgen, a biotech company, alleged the company
strongly encouraged its salesforce to search confidential medical records in dermatologists’
offices to find names of patients that would benefit from Amgen’s drug Enbrel, a psoriasis
treatment. After reporting this practice to the president, one rep was fired and the other resigned
after receiving a poor performance review. Both sued Amgen, claiming they did not go along
with the scheme because they objected to it as being unethical. The two sales representatives are
A) scabs.
B) cronies.
C) whistle-blowers.
D) contrarians.
E) ombudsmen.
90) Ultimately, ethical choices are based on
A) the personal moral philosophy of the decision maker.
B) societal culture and norms.
C) business culture and industry practices.
D) laws enacted by Congress and regulations by federal and state governments.
E) chance and opportunity.
91) All of the following statements about a person’s moral philosophy are true except which?
A) Moral philosophy is usually in written form in the workplace.
B) Moral philosophy can be learned through formal education.
C) Moral philosophy is influenced by the corporate culture an individual is in.
D) Moral philosophy is learned through the process of socialization with others.
E) Moral philosophy is influenced by the societal culture an individual is in.
92) Two prominent personal moral philosophies that have direct bearing on marketing practice
are
A) existentialism and pragmatism.
B) pragmatism and idealism.
C) moral idealism and utilitarianism.
D) social responsibility and personal ethics.
E) moral relativism and situational ethics.
93) A personal moral philosophy that considers individual rights or duties as universal,
regardless of the outcome, is referred to as
A) social responsibility.
B) moral idealism.
C) utilitarianism.
D) hedonism.
E) religion.
94) Moral idealism refers to a personal moral philosophy that
A) believes that good will always triumph over evil.
B) follows the Golden Rule, “You should treat others as you would like others to treat you.”
C) believes all human beings are basically good.
D) considers individual rights or duties as universal, regardless of the outcome.
E) believes in “the greatest good for the greatest number.”
95) Moral idealism refers to
A) a personal moral philosophy that focuses on the greatest good for the greatest number by
assessing the costs and benefits of the consequences of ethical behavior.
B) a democratic consensus of moral principles and laws that govern the behavior of individuals
based on legislation adopted at the federal, state, and local levels.
C) a societal moral philosophy based on the Golden Rule of the Judeo-Christian ethic embodied
in the U.S. Constitution’s Bill of Rights.
D) a formal statement of ethical principles and rules of conduct.
E) a personal moral philosophy that considers individual rights or duties as universal, regardless
of the outcome.
96) A moral philosophy that exists in the Consumer Bill of Rights and is favored by moral
philosophers and consumer interest groups is referred to as
A) social responsibility.
B) moral idealism.
C) utilitarianism.
D) hedonism.
E) the Golden Rule.
97) Why did 3M phase out the production of a chemical used as an ingredient in its Scotchgard
fabric protector?
A) New advances in fabric manufacturing, such as dirt-repellant fibers, made the need for the
product obsolete.
B) The product accidentally violated the patent rights of a competitor.
C) Traces of the potentially harmful chemical were found in humans, so the product was
voluntarily halted.
D) New governmental legislation banned the production of one of the product’s key component
chemicals.
E) The company developed a new product that didn’t contain this chemical and was less costly to
produce, resulting in a significantly higher profit margin.
98) The 3M company stopped production of a chemical it had made for more than 40 years when
tests showed the chemical could be accumulated in human tissue, even though the products in
which it was used had no known harmful health or environmental effect. The voluntary action by
3M is an example of
A) individualism.
B) utilitarianism.
C) existentialism.
D) moral idealism.
E) socialism.
99) Western Digital, the Irvine, California-based maker of disk drives, recalled about 400,000 of
its hard drives because of a faulty internal chip. The chip would not affect the disk drive motor
until after 6 to 12 months of use. This delay in the problem’s appearance meant that many
consumers would not think to blame the disk drive manufacturer. But, instead of taking the less
expensive route of remaining quiet about the problem, Western Digital chose to offer
replacement disk drives for all those that had the faulty chip. This action is an example of
A) hedonism.
B) utilitarianism.
C) moral idealism.
D) existentialism.
E) socialism.
100) The owners of Ben & Jerry’s Homemade Holdings Inc. adhere to the belief that the
company should not harm the environment in any way but actually improve it. This is an
example of
A) moral capitalism.
B) utilitarianism.
C) existentialism.
D) moral idealism.
E) socialism.
101) A personal moral philosophy that focuses on “the greatest good for the greatest number” by
assessing the costs and benefits of the consequences of ethical behavior is referred to as
A) utilitarianism.
B) hedonism.
C) existentialism.
D) moral idealism.
E) socialism.
102) According to the personal moral philosophy of ________, if the benefits exceed the costs,
the behavior is ethical.
A) hedonism
B) utilitarianism
C) existentialism
D) moral idealism
E) socialism
103) The personal moral philosophy of utilitarianism underlies the economic tenets of
A) existentialism.
B) moral idealism.
C) communism.
D) socialism.
E) capitalism.
104) Nestlé’s marketing of Good Start infant formula promoted the product as hypoallergenic.
However, some severely milk-allergic infants experienced serious side effects after using Good
Start, including convulsive vomiting. A Nestlé vice president defended the claim and product,
saying, “I don’t understand why our product should work in 100 percent of cases. If we wanted to
say it was foolproof, we would have called it allergy-free. We call it hypo-, or less, allergenic.”
Nestlé’s actions exemplify which of the following philosophies?
A) existentialism
B) moral idealism
C) communism
D) socialism
E) utilitarianism
105) The idea that organizations are part of a larger society and are accountable to that society
for their actions is referred to as
A) stakeholder responsibility.
B) social responsibility.
C) profit responsibility.
D) utilitarianism.
E) moral idealism.
106) Social responsibility refers to
A) a personal moral philosophy that focuses on the greatest good for the greatest number by
assessing the costs and benefits of the consequences of ethical behavior.
B) a democratic consensus of moral principles and laws that govern the behavior of individuals
based on legislation adopted at the federal, state, and local levels.
C) a societal moral philosophy based on the Golden Rule of the Judeo-Christian ethic found in
the U.S. Constitution’s Bill of Rights.
D) the view that organizations are part of a larger society and are accountable to that society for
their actions.
E) a personal moral philosophy that considers individual rights or duties as universal, regardless
of the outcome.
107) Which of the following statements about social responsibility is most accurate?
A) The three concepts of social responsibility are economic responsibility, internal social
responsibility, and external social responsibility.
B) Organizations are part of a larger society and are accountable to that society for their actions.
C) Societal responsibility focuses on the obligations an organization has to its customers,
employees, suppliers, and distributors.
D) The duty of an organization is most easily understood at the societal responsibility level.
E) Social responsibility cannot be taught; it is an innate outgrowth of a person’s moral and ethical
belief system.
108) Gap Inc. ended its relationship with 23 foreign production facilities due to code violations.
Several closings occurred because of the use of child labor. In response to these events, Gap Inc.
created a large team whose purpose is to travel worldwide to ensure compliance with its Code of
Vendor Conduct. This is an example of
A) cause marketing.
B) profit responsibility.
C) utilitarianism.
D) moral idealism.
E) social responsibility.
109) The residents of Alaska and people throughout the world were outraged when the Exxon
Valdez crashed into a shoal and dumped millions of gallons of crude oil into the pristine waters
of Prince William Sound. People were upset with Exxon’s response to the disaster. The company
was slow to admit its mistake and even slower to implement cleanup activities. Exxon was
criticized for acting in a manner that would benefit the organization but not society. In short,
Exxon did not demonstrate
A) social responsibility.
B) value consciousness.
C) green marketing.
D) profit responsibility.
E) cause marketing.
110) Profit responsibility, societal responsibility, and stakeholder responsibility are three
concepts of
A) cause marketing.
B) moral idealism.
C) social responsibility.
D) utilitarianism.
E) green marketing.
111) There are three concepts of social responsibility, each relating to particular constituencies.
Profit responsibility is characterized by
A) the triple bottom line, to achieve sustainable, long-term growth.
B) a focus on the obligations an organization has to those who can affect achievement of its
objectives.
C) an engagement in open and free competition without deception or fraud.
D) an unrelenting customer focus.
E) a focus on seller-oriented outcomes.
112) There are three concepts of social responsibility, each relating to particular constituencies.
Stakeholder responsibility is characterized by
A) the triple bottom line, to achieve sustainable, long-term growth.
B) a focus on the obligations an organization has to those who can affect achievement of its
objectives.
C) an engagement in open and free competition without deception or fraud.
D) an unrelenting customer focus.
E) a focus on seller-oriented outcomes.
113) There are three concepts of social responsibility, each relating to particular constituencies.
Societal responsibility is characterized by
A) the triple bottom line, to achieve sustainable, long-term growth.
B) a focus on the obligations an organization has to those who can affect achievement of its
objectives.
C) an engagement in open and free competition without deception or fraud.
D) an unrelenting customer focus.
E) a focus on seller-oriented outcomes.