Chapter 3—Ethics & Social Responsibility
TRUE/FALSE
1. The media is identified by the text as one of the six modes of social control in an open and democratic
society.
2. The six modes of social control are less important today due to the globalization of the world.
3. The deontological theory of ethics is founded on the ability to predict the consequences of an action.
4. Whenever faced with a difficult customer, the owner of the shoe store remembered what the original
store founder, his grandfather, had done in similar situations and did the same. In other words, the
grandson based his decision on the deontological ethical theory.
5. Moral relativists believe in absolute rules.
6. Morals are rules people develop as a result of cultural values and norms.
7. Unfortunately, most businesspeople have not progressed beyond the self-centered and manipulative
actions of preconventional morality.
8. Top managers who behave ethically can influence others in an organization to behave ethically.
9. A code of ethics can be an effective internal control on behavior, which is more desirable than external
controls like government regulations.
10. When writing codes of ethics, businesses must ensure their codes deal with every possible situation.
11. For most employees a simple list of “dos and don’t’s” are enough to maintain ethical behavior, and
ethical training would be redundant.
12. Studies suggest that ethical beliefs vary only a little from culture to culture.
13. Sustainability refers to a business’s concern for society’s welfare.
14. Suppliers are considered stakeholders of a firm.
15. The foundation for the pyramid of corporate social responsibility is philanthropic responsibility.
16. The most basic argument for social responsibility is that it is simply the right thing to do.
17. Because social responsibility has proven to have a limited return on investment, the number of
businesses opting to act socially responsible is declining.
18. While there are plenty of benefits for a socially responsible company, there is no clear-cut
determination that ignoring social responsibility will have an adverse impact.
19. When Laurie uses her Target Visa card at the store, Target donates 1% of her purchase to her
children’s school. This is an example of cause-related marketing.
20. Everyone agrees that cause-related marketing is beneficial.
21. One key to success of a cause-related marketing campaign is transparency. That is, the company
should clearly state how the money is raised and how much will be going to the charity or other cause.
MULTIPLE CHOICE
1. The Hippocratic Oath that all physicians take states that the physician will never deliberately harm
anyone for anyone else’s interest and to avoid attempting to do things that other specialists can do
better. This oath is an example of how _____ influences social control.
a.
an active civil society
b.
laws
c.
formal and informal organizations
d.
the media
e.
self-regulation
2. Rainforest Action Network (RAN) campaigns for the forests, their inhabitants and the natural systems
that sustain life. RAN relies on grassroots organizing, media stunts, and the occasional use of non-
violent civil disobedience to pressure corporations into publicly adopting environmental policies that
address issues ranging from deforestation to global warming. RAN uses an active civil society to
direct:
a.
cultural backstop
b.
social control
c.
ethical mediation
d.
social mentoring
e.
ethical awareness
3. All of the following are one of the six modes of social control EXCEPT:
a.
an active civil society
b.
laws
c.
the corporation
d.
the media
e.
self-regulation
4. Due to information provided by the news media, authorities in Arizona were able to close down C.P.
Direct, a Scottsdale company that sold more than $74 million worth of pills that it claimed would
enhance one’s mental abilities. This is one example of how the media serves as a mode of:
a.
cultural backstop
b.
social control
c.
ethical mediation
d.
social mentoring
e.
ethical awareness
5. Defenders of Wildlife is a United States non-profit organization founded in 1947 out of concern for
perceived cruelties of the use of steel-jawed leghold traps for trapping fur-bearing animals. They were
advocates for the Endangered Species Act in the United States through lobbying and by using the legal
system for the protection of endangered or threatened species. This organization is an example of how
_____ influence(s) social control.
a.
an active civil society
b.
laws
c.
formal and informal organizations
d.
the media
e.
self-regulation
6. How does self-regulation influence social control?
a.
It is the voluntary acceptance of standards established by nongovernmental entities.
b.
It allows everyone who wants to know to be informed about your behavior.
c.
It is the acceptance of laws as a necessary evil.
d.
It uses informed consumers to maintain ethical adherence.
e.
It does not influence social control.
7. Which of the following statements describes ethics?
a.
Ethics are the moral principles or values that generally govern the conduct of an
individual.
b.
Ethics is the standard of behavior by which conduct is judged.
c.
Morals are a foundation for ethical behavior.
d.
Ethical values are situation specific and time oriented.
e.
All of the statements describe ethics.
8. _____ refers to the moral principles or values that generally govern the conduct of an individual or a
group.
a.
Righteousness
b.
Social consensus
c.
Sustainability
d.
Virtue
e.
Ethics
9. All of the following are ethical theories relevant to marketing EXCEPT:
a.
deontology
b.
attribution theory
c.
utilitarianism
d.
casuist ethical theory
e.
moral relativism
10. The _____ states that people should adhere to their obligations and duties when analyzing ethical
dilemmas.
a.
virtue theory
b.
deontological theory of ethics
c.
utilitarian theory
d.
theory of moral relativism
e.
casuist ethical theory
11. After the Civil War, the U.S. military was ordered to the American West to remove the Indians from
large tracts of land and confine them to reservations. While this practice may seem ethically wrong to
us today, U.S. soldiers fought hard to prevent the Indians from disobeying the law as written by the
federal government. Even though some were sympathetic to the Indian’s plight, most of them adhered
to a _____ view of ethical behavior and strove to perform their duty as directed by the law.
a.
reactive
b.
deontological
c.
fundamental
d.
moral relativist
e.
casuist
12. Which ethical theory is founded on the ability to predict the consequences of an action?
a.
theory of virtue
b.
deontological theory
c.
utilitarian theory
d.
moral relativism
e.
casuist theory
13. According to _____, the choice that yields the greatest benefit to the most people is the choice that is
ethically correct.
a.
utilitarianism
b.
deontology
c.
fundamentalism
d.
moral relativism
e.
causal thinking
14. The two types of utilitarianism are _____ and _____ .
a.
primary; secondary
b.
causal; superfluous
c.
consideration; evoked
d.
proactive; reactive
e.
act; rule
15. According to _____ utilitarianism, self-defense is legally justified while murder is not.
a.
rule
b.
fundamental
c.
causal
d.
proactive
e.
deontological
16. “Politicians cannot avoid causing the death of innocent people if they try to keep public expenditure in
check or help maintain a semblance of international order.” Which ethical theory is most likely to
accept the preceding statement as true?
a.
utilitarianism
b.
deontology
c.
fundamentalism
d.
moral relativism
e.
causal thinking
17. After the Civil War, the U.S. military was ordered to the American West to remove the Indians from
large tracts of land and confine them to small reservations on land that was deemed worthless. Indian
children were removed from their parents and sent to schools that tried to turn the Indian children into
models of good U.S. citizens. While this practice may seem ethically wrong to us today, politicians
knew that the demand of the U.S. population for more land could only be achieved if the smaller
Indian population was made to accede to the wishes of the majority. This is an example of the
application of:
a.
utilitarianism
b.
deontology
c.
fundamentalism
d.
moral relativism
e.
causal thinking
18. Which ethical theory compares a current ethical dilemma with examples of similar ethical dilemmas
and their outcomes, thus allowing one to determine the severity of the situation and to create the best
possible solution according to others’ experiences?
a.
virtue theory
b.
deontological theory of ethics
c.
utilitarian theory
d.
theory of moral relativism
e.
casuist ethical theory
19. One drawback of the _____ is that there may not be a set of similar examples for a given ethical
dilemma.
a.
virtue theory
b.
deontological theory of ethics
c.
utilitarian theory
d.
theory of moral relativism
e.
casuist ethical theory
20. People who believe that ethical truths depend on the individuals or groups holding them are referred to
as:
a.
moral relativists
b.
casuists
c.
virtuists
d.
ethicalists
e.
normative utilitarians
21. People who believe in the _____ judge according to time-and-place ethics.
a.
virtue theory
b.
deontological theory of ethics
c.
utilitarian theory
d.
theory of moral relativism
e.
casuist ethical theory
22. People who believe in the _____ do not believe in absolute rules. Their beliefs center on the pressure
of the moment and whether the pressure justifies the action taken.
a.
virtue theory
b.
deontological theory of ethics
c.
utilitarian theory
d.
theory of moral relativism
e.
casuist ethical theory
23. The _____ is a moral philosophy that emphasizes character rather than rules or consequences.
a.
virtue theory
b.
deontological theory of ethics
c.
utilitarian theory
d.
theory of moral relativism
e.
casuist ethical theory
24. Proponents of the _____ hold that solving ethical dilemmas requires training and that individuals solve
ethical dilemmas when they develop and nurture a set of character traits valued as being good.
a.
virtue theory
b.
deontological theory of ethics
c.
utilitarian theory
d.
theory of moral relativism
e.
casuist ethical theory
25. _____ are the rules that people develop as a result of cultural values and norms.
a.
Virtues
b.
Ethics
c.
Socialization
d.
Conscience
e.
Morals
26. One approach to developing a personal set of ethics is to:
a.
rely solely on one’s personal character to determine what action to take
b.
stress the importance of rules
c.
ignore problems associated with the magnitude of consequences
d.
avoid examining the consequences of particular acts
e.
never trust your own behavioral instincts
27. Ethical development can be thought as having three levels. The most basic, childlike level is the _____
stage.
a.
preconventional morality
b.
transformationalism
c.
conventional morality
d.
postconventional morality
e.
actualized morality
28. Hallie is a calculating, self-centered salesperson. She never engages in relationship marketing. She
looks on any sales situation as a “win-lose” situation, and she believes any legal method she can use is
justified when she wins. Hallie is most likely at the _____ stage of ethical development.
a.
preconventional morality
b.
transformationalism
c.
conventional morality
d.
egocentrism
e.
basic morality
29. Which level of ethical development moves from an egocentric viewpoint toward the expectations of
society?
a.
postconventional morality
b.
conventional morality
c.
preconventional morality
d.
secondary morality
e.
primary morality
30. Ruthanne Ross is a sales manager for Pampered Chef, a company that sells kitchen tools and other aids
for cooking through party plans. She is very concerned about making sure her salespeople understand
the importance of treating each customer fairly and developing long-term relationships with them. She
asks that before a sale is made, the salesperson should make sure customers can afford the items and
are not buying due to social pressures. Ross is most likely at the _____ stage of ethical development.
a.
preconventional morality
b.
transformationalism
c.
conventional morality
d.
postconventional morality
e.
actualized morality
31. In the _____ stage of ethical development, loyalty and obedience to the organization or to society
become paramount.
a.
preconventional morality
b.
transformationalism
c.
conventional morality
d.
postconventional morality
e.
actualized morality
32. The _____ stage of ethical development represents the morality of the mature adult.
a.
preconventional morality
b.
transformationalism
c.
conventional morality
d.
postconventional morality
e.
actualized morality
33. Which of the following is an unethical practice marketing managers may have to deal with?
a.
entertainment and gift giving
b.
false or misleading advertising
c.
price deception
d.
unsafe products or services
e.
all of these choices
34. Which of the following factors will influence ethical decision making and judgments?
a.
likelihood of stakeholder responsibility
b.
proactive nature of organizational sustainability
c.
potential magnitude of the consequences
d.
probability of ethical consensus
e.
consequence of adjacencies
35. All of the following are factors influencing ethical decision making and judgments EXCEPT:
a.
rate of prosecution
b.
top management actions on ethics
c.
probability of a harmful outcome
d.
number of people to be affected
e.
social consensus
36. Like many other professional organizations and businesses, the American Marketing Association has
developed a formal, written guideline to help its members make better ethical decisions. This
document is a:
a.
behavioral practice
b.
moral ruling
c.
code of ethics
d.
direction of value
e.
principled regulation
37. All of the following statements about the creation of a code of ethics are true EXCEPT:
a.
A written code helps employees avoid confusion when determining whether their
decisions are ethical.
b.
A code can be an effective internal control on behavior.
c.
The process of formulating the code facilitates discussions that ultimately create better
decisions.
d.
A code helps employees identify what their firm recognizes to be acceptable business
practices.
e.
A code guarantees ethical behavior among a firm’s employees.
38. With regard to ethical decision making, an individual should ask themselves all of the following
EXCEPT:
a.
Would individuals or groups, particularly customers, be upset if they know about my
decision?
b.
Is my decision fair to all concerned?
c.
Would I prefer to avoid the consequences of my decision?
d.
How likely is it that I will be caught?
e.
Will I have to pull rank or use coercion to implement my decision?
39. Why do corporations engage in ethics training?
a.
because it reduces the potential harm of questionable acts
b.
because it is a reactive way to protect organizations from legal action
c.
because it helps employees put good ethics into practice
d.
because the federal government requires it of all businesses with more than 100 employees
e.
because it guarantees ethical behavior among employees
40. Concern about U.S. corporations’ use of illegal payments and bribes in international business dealings
led to the passage of the:
a.
Global Pact on Business
b.
International Trade Commission Act
c.
United Nations Anti-Corruption Act
d.
Foreign Corrupt Practices Act
e.
International Code of Business Practices
41. The _____ prohibits U.S. corporations from making illegal payments to public officials of foreign
governments to obtain business rights or to enhance their business dealings in those countries.
a.
Fortune 500 Pact on Business
b.
International Trade Commission Act
c.
United Nations Anti-Corruption Act
d.
Foreign Corrupt Practices Act
e.
Sherman Anti-Bribery Act
42. Critics of the Foreign Corrupt Practices Act contend that the act has:
a.
hindered the growth of developing nations
b.
created a competitive disadvantage for U.S. businesses
c.
promoted a negative image of American businesspeople
d.
given U.S. businesses an unfair advantage over companies in the host country
e.
encouraged deceptive advertising
43. _____ is the concern of business for the long-range welfare of both the company and its relationships
to the society within which it operates.
a.
Consumerism
b.
Corporate social responsibility
c.
Cultural sensitivity
d.
Conventional morality
e.
Environmental consideration
44. Corporate social responsibility is defined as the:
a.
belief that the legal system defines ethical behavior
b.
development of inclusive codes of ethics
c.
rules by which social rewards are attained
d.
concern for social welfare by businesses
e.
coordination of social programs for publicity purposes
45. For every home built by Habitat for Humanity, Whirlpool Corporation has given and continues to give
free kitchen appliances to the deserving family. This donation of appliances is an example of how
companies assume their:
a.
corporate social responsibility
b.
ethical conveyance
c.
duty to engage in cause marketing
d.
right to engage in social marketing
e.
multiculturalism
46. NSTAR Gas & Electric Company in Boston provides continuing financial support for an injury
prevention program run by the Children’s Hospital Boston. This funding is an example of:
a.
corporate social responsibility
b.
ethical conveyance
c.
a duty to engage in cause marketing
d.
a right to engage in social marketing
e.
multiculturalism
47. Novartis created the Novartis Research Institute for Tropical Diseases in Singapore. The institute is
unique because it is a not-for-profit organization that focuses on the discovery of new drugs for the
treatment of neglected diseases, such as dengue fever and tuberculosis. Not only is this good business,
it is also:
a.
mandated by Supreme Court rulings
b.
socially responsible
c.
not ethically motivated
d.
demonstrating a lack of concern for diversity
e.
using environmental marketing
48. Many airlines offer passengers the option to purchase carbon offsets as an environmentally-friendly
compensation for their carbon footprint. For example, Delta customers can pay $10 to a fund that
plants trees as a way to offset the carbon emissions from the airplane. Some would say Delta is:
a.
acting in accordance with recent rulings by the U.S. Supreme Court
b.
socially responsible
c.
not ethically motivated
d.
demonstrating a lack of concern for diversity
e.
using issue-oriented marketing