154) Converting socially responsible ideas into actions involves careful planning and monitoring
of programs. Many companies develop, implement, and evaluate their social responsibility
efforts by means of a(n)
A) social audit.
B) financial audit.
C) action plan.
D) tactical plan.
E) research plan.
155) The first step in any social audit is to
A) evaluate current social responsibility programs.
B) determine the amount of money that can be allocated for societal marketing programs.
C) recognize a firm’s social expectations and the rationale for engaging in social responsibility
endeavors.
D) identify social responsibility causes consistent with the company’s mission.
E) determine the types of resources needed to achieve social responsibility objectives.
156) A social audit is a systematic assessment of a firm’s objectives, strategies, and performance
in terms of social responsibility. Which of the following is one of the five steps of the audit?
A) identification of environmental forces that could interfere with the firm’s plans
B) evaluation of possible benefits both tangible and intangible to the firm’s triple bottom line
C) specification of the type and amount of resources necessary to achieve social responsibility
objectives
D) selection of a team leader and assignment of tasks and task deadlines for team members
E) creation or selection of a theme, slogan, spokesperson, etc., for marketing cohesiveness
157) What is the fifth and last step of a social audit?
A) evaluation of social responsibility programs and activities undertaken and assessment of
future involvement
B) determination of organizational objectives and priorities for programs and activities it will
undertake
C) specification of the type and amount of resources necessary to achieve social responsibility
objectives
D) recognition of a firm’s social expectations and the rationale for engaging in social
responsibility endeavors
E) identification of social responsibility causes or programs consistent with the company’s
mission
158) Conducting business in a way that protects the natural environment while making economic
progress is referred to as
A) green marketing.
B) sustainable development.
C) stakeholder responsibility.
D) the marketing concept.
E) environmental marketing.
159) Sustainable development refers to
A) placing restraints on a company’s growth until all ancillary support services are in place to
ensure a new venture’s success.
B) global economies that are slowly moving from an agrarian-base to an industrial base.
C) adhering to worldwide standards for environmental quality and green marketing practices.
D) marketing efforts to produce, promote, and reclaim environmentally sensitive products.
E) conducting business in a way that protects the natural environment while making economic
progress.
160) Which of the following statements about sustainable development is most accurate?
A) A company that makes its furniture from rare tropical woods is practicing sustainable
development.
B) Currently, sustainable development is a luxury that only large multinational companies can
engage in.
C) Sustainable development is achieved when a firm’s sales growth rate increases an average of 1
to 2 percent a year for a period of at least five years.
D) A mining company that replants native vegetation after mining operations cease practices
sustainable development.
E) Unfortunately, only a small number of consumers care whether a company practices
sustainable development.
161) Arrowhead brand Mountain Spring Water changed its bottle by reducing the size of its label
by one-third, using 30 percent less plastic, and making the bottle more flexible for easier
recycling. These efforts are part of the company’s goal to engage in
A) sustainable development.
B) market development.
C) ISO 14000 compliance.
D) cause marketing.
E) environmental downsizing.
162) Consumers have an obligation to ________ in the exchange process and in the use and
disposition of products.
A) get as much as they can for their money
B) support cause marketing efforts
C) reveal any and all pertinent personal information
D) act ethically and responsibly
E) seek products with ISO 14000 certification
163) Practices that include filing warranty claims after the claim period, misredeeming coupons,
and making fraudulent returns of merchandise are examples of
A) normal and reasonable consumer behavior.
B) unethical practices by consumers.
C) acceptable consumer code of ethics.
D) costs to be passed along to shareholders as a part of doing business.
E) violations of the Consumer Bill of Rights.
164) Practices such as misredeeming coupons, making fraudulent returns of merchandise, filing
warranty claims after the claim period, and so on are
A) acceptable provided the merchant providing the service has not violated the Consumer Bill of
Rights.
B) acceptable provided the salesperson doesn’t mind.
C) occasionally permitted when two different firms are competing for a customer’s business and
both are using equally less than ethical practices.
D) not acceptable because consumers have an obligation to act ethically and responsibly.
E) not acceptable unless the participants are nonprofit organizations or charities.
165) Which of the following statements about consumer ethics is most accurate?
A) Consumer complaints about online auction fraud outnumber all reports of online crime.
B) The cost to marketers of unethical consumer behavior is negligible in terms of lost sales.
C) The potential cost to marketers of unethical consumer behavior is dramatically reduced by
investing in loss prevention training.
D) Retailers lose about $1 million a day from shoplifting.
E) At some point, every person shoplifts or participates in an unethical exchange; to retailers, it
is simply the cost of doing business.
166) Which of the following statements about consumer ethics is most accurate?
A) Most consumers’ unethical acts are motivated by economic need.
B) Some consumers believe that if they can get away with unethical behavior, it is worth doing.
C) If “everyone else does it,” then that becomes the norm—so, ultimately, there is no such thing
as unethical consumer behavior.
D) Most consumers who shoplift do so because a salesperson has been insulting or rude.
E) Few customers behave unethically toward smaller, independently owned businesses. Most
unethical consumer behavior is against “big business.”
167) Although research shows consumers are sensitive to ecological issues, they may
A) be unable to make an ecologically sound purchase because eco-friendly products are
significantly less expensive, indicating that they are of lesser quality.
B) lack the knowledge to make informed decisions dealing with the purchase, use, and
disposition of products.
C) believe that protecting the environment in one area actually can create disruptions in another
area.
D) believe that ecological issues are still a matter of opinion even within the scientific
community itself.
E) believe that public sentiment toward ecological issues has now reached a consensus—jobs are
more important than environmental protection issues.
168) Making an unsubstantiated or misleading claim about the environmental benefits of a
product, service, technology, or company practice is referred to as
A) greenwashing.
B) faux environmentalism.
C) environmental spin.
D) graywashing.
E) anti-sustainability.
169) Greenwashing refers to
A) marketing efforts to produce, promote, and reclaim environmentally sensitive products.
B) conducting business in a way that protects the natural environment while making economic
progress.
C) the practice of making an unsubstantiated or misleading claim about the environmental
benefits of a product, service, technology, or company practice.
D) the practice of deliberately concealing the mistakes that polluters make regarding the
environmental disasters they perpetrated.
E) the recognition of the need for organizations to improve the state of people, the planet, and
profit simultaneously if they are to achieve sustainable, long-term growth.
170) Toyota employs all of the following principles and practices as part of “The Toyota Way”
except which?
A) Continuously improve business processes and products.
B) Empower individuals and teams.
C) Respect people.
D) Build trust.
E) Provide personalized and customized products.
171) One of Toyota’s top goals has been to develop advanced vehicle technologies to
complement existing ones. The G21 vision arose out of this goal, which eventually led to the
production of which of the following vehicles?
A) Lexus 450 all-electric car
B) Toyota Tundra gas-electric hybrid truck
C) Scion iQ micro-subcompact compressed natural gas car
D) Toyota Prius gas-electric hybrid car
E) Toyota Camry hydrogen fuel cell hybrid car
172) In a recent survey, consumers were asked the following question: “Who should take the
lead in addressing environmental issues?” Results suggest that consumers expect that ________
should.
A) the federal government
B) businesses
C) individuals
D) environmental groups
E) state governments
173) Explain how Anheuser-Busch practices societal responsibility.
174) Describe the difference between ethics and laws.
175) Explain the four ways to classify marketing decisions according to ethical and legal
relationships.
176) Provide concrete examples for the four classifications of marketing decisions according to
ethical and legal relationships.
177) Describe each of the three factors included in the framework for understanding ethical
behavior that influence one’s personal moral philosophy and ethical behavior.
178) Explain the difference between societal culture and business culture.
179) How did President John F. Kennedy change the concept of American business culture away
from caveat emptor in the 1960s?
180) Business culture affects ethical behavior in competition. Briefly discuss the two most
common kinds of unethical competitive behavior. In answering, provide concrete examples for
both.
181) Identify and describe the two types of personal moral philosophy.
182) Define the moral philosophy of utilitarianism and explain its relationship to capitalism.
183) Body Bazaar: The Market for Human Tissue in the Biotechnology Age is a book by Lori
Andrews and Dorothy Nelkin. According to the book, “Body parts are bought and sold for
medical research, diagnostics, and therapies. They are marketed to museums and personal
collectors. And pieces of people are increasingly being used as raw materials for products—from
placenta-enriched shampoos to experimental DNA-run computers. Blood has become one of the
most valuable commodities on Earth. While petroleum sells for $100 a barrel, an equivalent
quantity of blood products is worth $67,000.” Use this quote to explain why ethics is such a
difficult concept to understand.
184) Describe the three major concepts of social responsibility.
185) An increasing percentage of turkeys are now being marketed as “free range.” Consumers
typically pay $1 more per pound for free-range turkeys, which are thought to have lived more
“humane” or “avian” lives—and as a result, to taste better than conventionally raised turkeys.
The USDA defines a free-range bird as one that has been allowed “access to the out-of-doors.”
Are turkey growers who allow their birds to access the out-of-doors only moments before they
are killed acting in a socially responsible manner?
186) A recent survey found that 79 percent of Internet and e-commerce companies take
absolutely no social responsibility. Even more worrying is the finding that 75 percent of these
Internet companies justify this omission on the grounds that they don’t have any environmental
or social impacts, while 55 percent said they didn’t have time to think about these issues, and 50
percent said they didn’t have the expertise to address them. Would these Internet-based
companies benefit from acting more socially responsible? Explain your answer.
187) Define green marketing and provide an example.
188) What is the difference between standard charitable contributions and cause marketing?
189) MasterCard International links usage of its card with fund-raising for institutions that
combat cancer, heart disease, child abuse, and muscular dystrophy. MasterCard gives a modest
percentage of charges from its credit card charges to the institutions. What is this called and how
does it affect cardholders’ behavior?
190) What are the five steps in a social audit?
191) Research on unethical consumer behavior, such as fraudulent automobile insurance claims
or unauthorized downloading of music, movies, and software, indicates that these acts are rarely
motivated by economic need. What influences these behaviors?