49. _____ is the idea that socially responsible companies will outperform their peers by focusing on the
world’s social problems and viewing them as opportunities to build profit and help the world at the
same time.
a.
Sustainability
b.
Philanthropy
c.
Cause marketing
d.
Creative ethics
e.
International ethics
50. Which of the following statements about the theory of sustainability is true?
a.
Sustainability is an internal process in which companies match resources and objectives.
b.
Sustainability is the idea that socially responsible companies will outperform their peers
when they focus on the world’s problems as marketing opportunities.
c.
According to the theory of sustainability, a company cannot be socially responsible
without a code of ethics and managerial support of that code.
d.
According to the theory of sustainability, ethical behavior should never be viewed as the
means of obtaining a competitive advantage.
e.
Sustainability is only successful if it focuses on organizational strengths.
51. Which theory holds that social responsibility is paying attention to the interest of every affected
stakeholder in every aspect of a firm’s operation?
a.
stockholder theory
b.
theory of reasoned action
c.
attribution theory
d.
theory of ethical enhancement
e.
stakeholder theory
52. Which of the following could be a stakeholder of a corporation?
a.
employee
b.
customer
c.
local citizen
d.
supplier
e.
all of the above
53. The pyramid of corporate social responsibilities contains all of the following components EXCEPT:
a.
economic responsibilities
b.
ethical responsibilities
c.
cultural responsibilities
d.
legal responsibilities
e.
philanthropic responsibilities
54. The four components of the pyramid of corporate social responsibility are:
a.
sustainability, creativity, profit, and culture
b.
organizational culture, creativity imagery, economic performance, and objectivity
c.
organizational, financial, social, and cultural responsibilities
d.
sustainability, legality, creativity, and competition
e.
economic, legal, ethical, and philanthropic responsibilities
55. At the most basic level, a firm must be profitable. What level of the pyramid of corporate social
responsibility is this?
a.
social
b.
economic
c.
ethical
d.
legal
e.
accountability
56. One of the favorite foods in Thailand is shark fin soup. A San Francisco-based organization claimed
the soup made by its leading producer contained mercury poison, yet the leading producer of shark fin
soup wanted to continue selling the soup because it believes it has a responsibility to its investors to be
profitable. In terms of the pyramid of corporate social responsibility, this indicates that the soup
manufacturer was operating at a(n) _____ responsibility level.
a.
legal
b.
philanthropic
c.
ethical
d.
economic
e.
cultural
57. At which level of the pyramid of corporate social responsibility must a business “play by the rules”?
a.
economic
b.
philanthropic
c.
legal
d.
ethical
e.
conformist
58. Japanese law prohibits the storage of more than 50 pounds of explosive at any single site in the nation.
Every night Universal Studios Japan hosts a fireworks display. The theme park recently came under
government investigation when allegations were made that the park was detonating more than 50
pounds of explosives in its nightly fireworks displays. If the allegations are true, in terms of the
pyramid of corporate social responsibility, then Universal Studios Japan is not operating at a(n) _____
responsibility level.
a.
legal
b.
philanthropic
c.
ethical
d.
economic
e.
cultural
59. In the future, electrical power may come from quantum nucleonics, a form of nuclear power that
produces no residual radiation. The ability to use this form of power will require equipment
adaptations, but it will solve the world’s need for clean and efficient power. Companies that replace
inefficient sources of power with quantum nucleonics only after they are required to by the
Environmental Protection Agency (EPA) are operating at a(n) _____ responsibility level.
a.
legal
b.
philanthropic
c.
ethical
d.
economic
e.
cultural
60. At what level of the pyramid of corporate social responsibility will firms do what is right, just, and fair
and avoid harm?
a.
economic
b.
philanthropic
c.
legal
d.
ethical
e.
moral
61. Girls between the ages of 8 and 15 are one of the growing markets for high-end shoe manufacturers,
and podiatrists say the trend is leading to many stylish young girls with grown-up foot problems. Shoe
manufacturers who develop and market adult-styled shoes to this group are not operating at a(n) _____
responsibility level of the pyramid of corporate social responsibility.
a.
legal
b.
philanthropic
c.
ethical
d.
economic
e.
cultural
62. At what level of the pyramid of corporate social responsibility will a company be a good corporate
citizen and contribute resources to the community and strive to improve the quality of life?
a.
economic
b.
philanthropic
c.
social
d.
legal
e.
ethical
63. Pacific Gas and Electric (PG&E) Company has donated almost $300,000 to 58 local governments and
community-based organizations for local economic development projects. Recipients of these grants
include the San Benito County Economic Development Corporation’s Business Outreach Program, the
San Jose Conservation Corps’ Hennessy Place Affordable Single-Family Housing Project, and
Mariposa County’s Business Development Training Program. This sort of donation indicates PG&E
was operating at a(n) _____ responsibility level of the pyramid of corporate social responsibility.
a.
legal
b.
philanthropic
c.
ethical
d.
economic
e.
cultural
64. The fact that many people believe that businesses should focus on making a profit and leave social and
environmental issues to nonprofit organizations is:
a.
one of the arguments in support of social responsibility
b.
one of the reasons why so many organizations have a sustainability plan
c.
creating a competitive disadvantage for larger corporations
d.
forcing organizations to choose between stakeholders and the environments in which the
stakeholders live
e.
one of the arguments against social responsibility
65. Which of the following is an argument used against corporate social responsibility (CSR)?
a.
Businesses don’t have the expertise to make social decisions.
b.
Social and environmental problems should be handled by nonprofit organizations
c.
The free market, not companies, should decide what is best for the world.
d.
Cleaning up the environment, ensuring product safety, and donating money and time for
social causes raise costs.
e.
All of the above are arguments used against CSR.
66. Which of the following is an argument used to support corporate social responsibility (CSR)?
a.
The free market, not companies, should decide what is best for the world.
b.
CSR can be a profitable undertaking.
c.
Businesses are not responsible for social or environmental problems.
d.
Businesses don’t have the expertise to make social decisions.
e.
All of the above are arguments used in support of CSR.
67. Nordic Travel Retail Group (NTRG) Chairman Erik Thomsen, speaking at the Nordic Travel Retail
Seminar said, “Travel retail is all about great brands in a great environment. Our sector is no longer an
isolated channel that consumers, as well as politicians, only become aware of when accompanying
their families on annual summer holidays or enjoying city breaks or weekend cruises. The reality is
that quite simply, if we choose to keep our distance and focus narrowly on products and customers,
others will set the agenda and leave us at the mercy of the political process.” He continued by saying,
“We should not only take climate change seriously, but also ensure that our consumers know we do.”
Thomsen is calling for his industry to engage in:
a.
enhanced philanthropy
b.
progressive sustainability
c.
proactive social responsibility
d.
protecting adjacencies
e.
increased social consensus
68. The movement to develop and market products designed to minimize negative effects on the physical
environment or to improve the environment is known as:
a.
enviromarketing
b.
green marketing
c.
cause marketing
d.
social marketing
e.
minimalist marketing
69. _____ is the cooperative effort of a for-profit firm and a nonprofit organization.
a.
Environmental sustainability
b.
Social sustainability
c.
Cause-related marketing
d.
Advocacy marketing
e.
Nonprofit marketing
70. Oliver’s Artisan Breads announced that it will donate 10 percent of net profits from its store line of
breads to the Bread for the World Institute, a “nationwide nonprofit organization that seeks justice for
the world’s hungry people by lobbying our nation’s decision–makers.” This is an example of:
a.
environmental sustainability
b.
social sustainability
c.
cause-related marketing
d.
advocacy marketing
e.
nonprofit marketing
71. Since 2002, General Mills through sales of its Cheerios brand cereal has donated over $2.0 million to
First Book, a national nonprofit organization dedicated to giving new books to children from low-
income families, through the Spoonfuls of Stories program. General Mills is engaged in:
a.
environmental sustainability
b.
social sustainability
c.
cause-related marketing
d.
advocacy marketing
e.
philanthropy
72. Every year, Hudson & Lane, a law office, donates $5,000 to a local school or charity. Is this an
example of cause-related marketing?
a.
Yes, because it occurs annually.
b.
Yes, because it is a specific donation.
c.
No, because it exemplifies a for-profit organization donating to a non-profit organization.
d.
No, because it creates publicity for the law office.
e.
No, because it is an example of philanthropy.
73. General Mills is consistently ranked among the top five contributors of food in the United States. The
company also steps forward to help support victims of natural disasters with food donations to
organizations such as the American Red Cross. These donations of food are an example of:
a.
environmental sustainability
b.
social sustainability
c.
cause-related marketing
d.
advocacy marketing
e.
philanthropy
74. Monique Penn makes stunningly expensive one-of-a-kind bracelets at luxury stores such as Bergdorf-
Goodman. Portions of the proceeds from the sales of its jewelry go to support the Alaska Native Arts
Foundation, which trains and educates indigenous people and to Charity Water, a nonprofit
organization with a mission to bring clean water to impoverished people. Imagine someone is
motivated to buy a piece of her jewelry in order to benefit one of the above nonprofits. This customer
wants to ask Penn the “Five Questions to Ask before Participating in a Cause-Related Marketing
Program. ” Which question would Monique Penn have the most trouble answering candidly?
a.
Is the company committed?
b.
How is the program structured?
c.
How will the organization that benefits use my money?
d.
Does she find the program meaningful?
e.
Who does this program benefit?
NARRBEGIN: Florida Hospitals
Florida Hospitals
A group of hospital administrators in Florida were discussing the amount of resources used to care for
patients that were illegal immigrants and had no medical insurance. One man discussed how his
hospital had spent over $2 million on one illegal immigrant who had no family or friends and who was
not getting better. Another administrator stated that his hospital was losing $20 million annually in
order to provide care for the influx of illegal immigrants into the state. After a great deal of discussion,
it was determined that there was probably nothing anyone of them could do about the situation, and
that each of them had very definite ideas about how to deal with the problems.
NARREND
75. Refer to Florida Hospitals. When one administrator said, “We got into medicine to help people and
these illegals without insurance need our help as much as anyone else does,” he was expressing his
opinion in accordance with the _____ ethical theory.
a.
act utilitarianism
b.
casuist
c.
role utilitarianism
d.
moral relativity
e.
deontological
76. Refer to Florida Hospitals. One administrator said, “If we were not forced to care for the illegal
immigrants who have no resources and could empty our hospital beds of them, we could provide much
better care for those law-abiding patients who have insurance.” Because she believes in benefiting as
many people as possible, she more than likely adheres to the _____ ethical theory.
a.
utilitarianism
b.
casuist
c.
virtue ethics
d.
moral relativity
e.
deontological
77. Refer to Florida Hospitals. One older administrator talked about an early job in Africa where the
hospital had been flooded with refugees. He said, “The hospital was short resources for awhile, but the
government stepped up and helped. We were able to get up-to-date equipment because officials saw
we had a need. I believe the rest of you administrators need to be more patient.” In suggesting
patience, this administrator was basing his thinking on the _____ ethical theory.
a.
act utilitarianism
b.
casuist
c.
role utilitarianism
d.
moral relativity
e.
deontological
78. Refer to Florida Hospitals. In another conversation, one of the administrators said, “I think the decision
to care for the illegals should be based on an individual choice. Certainly, I would want to care for a
working man who is supporting six children, but I am inclined to think that if the man has no income
and shows no desire to provide for himself, then he should not become a burden to the hospital.” This
thinking is indicative of the _____ ethical theory.
a.
act utilitarianism
b.
casuist
c.
role utilitarianism
d.
moral relativism
e.
deontological
79. Refer to Florida Hospitals. In order to make an ethical decision on how to handle uninsured illegal
immigrants, the Florida hospital administrators must consider all of the following EXCEPT:
a.
social consensus
b.
number of people affected by the decision
c.
probability of harmful outcome to the hospital and to the individuals
d.
magnitude of morality
e.
length of time between decision and the onset of consequence
NARRBEGIN: Drug Marketing
Drug Marketing
Pharmaceutical companies spent $4.4 billion on prescription drug advertising in 2008, mostly on
television and in magazines. While the Internet is becoming a more prominent medium to reach
consumers and is the primary source used to seek health information, these companies spent less than
$130 million on Web marketing. One reason is that there are no guidelines, which makes these
heavily-regulated marketers uneasy. For example, television commercials for prescription drugs must
include disclosures regarding the major side effects if the brand name is mentioned in the ad. The Food
and Drug Administration (FDA) claims that existing regulations address many of the Internet
advertising issues, but other aspects of Web marketing, such as social networking and search
marketing, must be reviewed. That’s why the FDA hearings on this issue were attended by
pharmaceutical giants and Web companies like Google, Yahoo, and WebMD Health.
NARREND
80. Refer Drug Marketing. Which mode of social control is likely causing the relatively small
expenditures on Web marketing by pharmaceutical companies?
a.
ethics
b.
laws
c.
media
d.
civil society
e.
informal groups
81. Refer Drug Marketing. Drug manufacturers are hesitant to make full use of the Internet as an
advertising medium because they are comparing the regulations imposed on their advertising in other
media, such as television. Which ethical theory does this illustrate?
a.
casuist
b.
utilitarianism
c.
moral relativism
d.
deontology
e.
social responsibility
82. Refer to Drug Marketing. Which level of the pyramid of social responsibility is most relevant to this
situation in which the drug companies want to ensure that they are “playing by the rules”?
a.
legal responsibilities
b.
ethical responsibilities
c.
philanthropic responsibilities
d.
economic responsibilities
e.
standard responsibilities
83. Refer to Drug Marketing. If a drug manufacturer claimed that its manufacturing processes were
environmentally-friendly in its advertising, this is an example of:
a.
sustenance marketing
b.
green marketing
c.
philanthropy
d.
deontological marketing
e.
clean marketing
84. Refer to Drug Marketing. If a drug manufacturer donated $5 to AIDS research for every prescription
sold in the United States, this would be an example of:
a.
utilitarianism
b.
moral relativism
c.
cause-related marketing
d.
green marketing
e.
conventional morality
ESSAY
1. List the six modes of social control.
2. Define the deontological ethical theory and describe a person that adheres to this theory of ethics.
3. Define utilitarianism and its two types. How does this theory differ from the casuist ethical theory?
4. Explain what is meant by the statement, “Moral relativists believe in time-and-place ethics.”
5. List and describe the three levels of ethical development.
6. A recent study of marketing professionals found their ethical judgments were influenced by several
factors. List four of these factors. How do these factors contribute to the ethical environment of a
marketing organization?
7. List three ways an organization will benefit from the development and use of a code of ethics.
8. You are an ethics consultant, and a group of managers has asked you for some guidelines to determine
the ethicality of a decision. You tell the managers that one cannot guarantee the rightness of a decision,
but a checklist can improve the chances of a decision being ethical. What are six questions you would
tell the managers to put on this checklist?
9. The newest theory in social responsibility is called sustainability. Explain what this means.
10. For every home built by Habitat for Humanity, Whirlpool Corporation has given and continues to give
free kitchen appliances to the deserving family. At first Whirlpool gave the appliances with no
promotion, then Whirlpool began talking about its philanthropy in its advertising campaigns. Is this
unethical behavior according to the pyramid of social responsibility?
11. Describe the pyramid of corporate social responsibility and include a description of its components.
12. How do supporters of corporate social responsibility respond to its critics?
13. Distinguish between cause-related marketing and philanthropy and give an example of each. What are
some concerns consumers may have regarding cause-related marketing?