Chapter 16 Test Bank
1. An organization’s obligation to maximize its positive impact and minimize its negative impact on society is referred to as
A. moral idealism.
B. social marketing.
2. Corporate social responsibility refers to
3. According to your text, which department is primarily responsible for the ideas and strategies that comprise a corporate social
responsibility (CSR) program in many organizations?
4. Which of the following is not true regarding corporate social responsibility (CSR) programs?
A. CSR is an organization’s obligation to maximize its positive impact and minimize its negative impact on society.
B. CSR has been shown to benefit companies by improving their brand image.
5. In 2010, an explosion on a BP oil rig in the Gulf of Mexico caused loss of life and grave environmental consequences for the
surrounding area. In response, BP worked to clean up the area, compensated people affected by the impact of the accident, and
supported the economic recovery of Gulf Coast tourism and seafood industries impacted by the oil spill. BP has also committed
funding for independent research on the Gulf of Mexico ecosystem so it can better understand and mitigate the potential impacts
of oil spills. In short, BP exhibited
A. shareholder responsibility.
6. The view that an organization has an obligation to those who can affect the achievement of its objectives is referred to as
A. corporate philanthropy.
7. What is the driving consideration across the four dimensions of corporate social responsibility?
A. profitability
B. corporate philanthropy
8. Which of the following is not one of the four dimensions of corporate social responsibility?
A. philanthropic
B. legal
9. Which two dimensions form the foundation of corporate social responsibility in that they are required of a firm?
A. philanthropic and legal
B. philanthropic and ethical
10. The duty to be profitable falls under which dimension of corporate social responsibility?
A. philanthropic
B. ethical
11. Failure to adhere to the _______ dimension of corporate social responsibility led to the demise of Enron, Arthur Andersen,
and WorldCom.
A. ethical
B. philanthropic
12. The moral standards expected by a society are called
A. cultural values.
B. religious principles.
13. Ethics can be defined as
A. laws and regulations governing business practices.
B. religious principles adopted by a society.
14. The act of organizations voluntarily donating some of their profits or resources to charitable causes is referred to as
A. philanthropic marketing.
B. stakeholder responsibility.
15. The Dannon Company supports the National Breast Cancer Foundation through its Give Hope with Every Cup initiative.
When consumers purchase specially marked Dannon products and enter the under-the-lid codes online, Dannon will make a
donation to the foundation, for a total donation of up to $1.5 million. This is an example of
16. Every year the high school hosts a faculty-staff basketball game to raise money for the American Heart Association. Along
with a cash donation, the local Subway restaurant donates sandwiches that the high school can sell at the game to earn extra
money for the charity. By doing so, Subway is engaged in
A. charitable advertising.
B. corporate volunteerism.
17. The process of developing an organization’s corporate social responsibility program begins when a firm incorporates a focus
on fulfilling the economic, legal, ethical and philanthropic dimensions into its
A. mission statement.
B. business plan.
18. What key element of developing a successful corporate social responsibility (CSR) program is exhibited when a company
meets with the community to understand the impact that water usage by its manufacturing plant will have on the surrounding
areas?
A. integration of CSR into corporate policy at all levels of the firm
B. good corporate leadership
19. According to your text, what is meant by good corporate leadership as a key element in developing a successful corporate
social responsibility (CSR) program?
A. CSR policies and procedures are most useful when they are written down, well understood, and endorsed by the company’s
leaders.
B. Leaders are most effective when they remove themselves from the process of developing a CSR program, leaving it instead
to the people who must implement the program on a daily basis.
20. An organization that wants to determine how well its corporate social responsibility program is working can do so by
21. According to your text, what is the biggest mistake marketers make when evaluating the success of their CSR programs?
A. including all significant stakeholder groups in the auditing process
B. failing to evaluate the financial impact the auditing process will have on the firm
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Topic: Corporate Social Responsibility
22. Which of the following statements is true regarding the audit of a corporate social responsibility (CSR) program?
A. Only quantitative measurements should be used in the audit.
B. The most effective audits involve only one significant stakeholder group.
23. Bloomberg LP, in partnership with the National Conference on Citizenship and Points of Light, has created a scorecard of
America’s top community-minded companies which they call the
A. Noteworthy 50.
B. Ethical 50.
24. The policy or practice of employees volunteering their time or talents for charitable, educational, or other worthwhile
activities, especially in the community, is called
A. corporate philanthropy.
25. IBM’s Corporate Service Corps was launched in 2008 to empower IBM employees to act as global citizens by performing
community-based assignments throughout the developing world. IBM has sent over 2,500 volunteers to lend their skills to
organizations in more than 30 countries. This is an example of IBM’s commitment to
A. corporate philanthropy.
B. stakeholder management.
26. The 1987 United Nations report Our Common Future laid the groundwork for a modern understanding of
A. corporate philanthropy.
B. environmentalism.
27. A commitment to adopting a lifestyle that meets the needs of the present without compromising the ability of future
generations to meet their own needs is referred to as
A. environmentalism.
28. The process of creating, communicating, and delivering value to customers in a way that recognizes and incorporates the
concept of sustainability is referred to as
29. Patagonia, a California-based clothing company, is deeply committed to the environment. The company makes fleece
jackets out of recycled bottles, uses solar panels to generate most of the electricity at its headquarters, and even tells its
customers in its advertisements to think twice before buying anything, all in an effort to reduce its carbon footprint. This is an
example of how Patagonia is engaged in
30. All of the following are ways in which a firm might be engaged in sustainable marketing except
A. using only soy-based ink in advertisements.
B. redesigning a product’s package to use less energy.
31. Which of the following firms in the apparel industry was one of the first to conduct a life cycle assessment of the firm’s major
products by looking at how cotton was used in the production cycle?
A. Wrangler
B. Tommy Hilfiger
32. Once marketers at Levi’s found out that growing the cotton needed to make its jeans used a great deal of water, it joined the
Better Cotton Initiative to teach farmers how to grow cotton with less water. This is an example of Levi’s commitment to
A. corporate philanthropy.
B. environmental marketing.
33. The concept of sustainable marketing refers to
A. a movement of citizens, government agencies, and businesses that advocates the preservation and restoration of the
environment.
B. the policy or practice of employees volunteering their time or talents to sustainability causes.
34. According to your text, in order to get stakeholders to agree to sustainability initiatives, marketers must
A. provide proof that sustainability efforts will be profitable.
B. convince upper management as well as company employees that sustainability efforts are a worthwhile endeavor.
35. Which of the following is NOT part of a sustainability vision?
36. Coca-Cola’s roadmap guides every aspect of its business. In terms of the planet, Coca-Cola strives to Be a responsible
citizen that makes a difference by helping build and support sustainable communities. This is an example of
A. a business plan.
37. A movement made up of citizens and government entities whose focus is on protecting consumers and promoting their
interests is called
A. environmentalism.
38. Which of the following is NOT a major barrier marketers face when encouraging sustainable consumer behavior?
39. Think about the various barriers marketers must overcome in order to encourage sustainable consumer behavior that were
outlined in your text. Which of the following most relates to overcoming consumers’ lack of knowledge regarding sustainable
consumer behavior?
A. marketers promoting the firm’s sustainable products in an honest and ethical way so as to not mislead the public
B. marketers finding ways to deliver products to sustainability-minded customers regardless of where they live
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Topic: Sustainable Marketing
40. When it comes to encouraging sustainable consumer behavior, marketers must overcome consumers’ negative perceptions.
According to your text, these negative perceptions revolve around the
A. product’s sustainability claims.
B. product’s misleading advertising.
41. Thinking about why distrust is a barrier to sustainable consumer behavior, how can marketers overcome this barrier? \
42. Which element of the marketing mix is critical in overcoming the low availability barrier to sustainable consumer behavior?
A. price
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Topic: Sustainable Marketing
43. A group of sustainability-oriented customers and the businesses that serve them are referred to as the
44. Franco runs a small grocery store. His customers have been complaining about the lack of organically-grown produce he
offers for sale. Franco himself believes in sustainability, so he has made the decision to only carry organically grown produce. In
addition, he is adding grass-fed beef and organic chicken products as well. Franco and his customers would be considered part
of the
45. A movement of citizens, government agencies, and the business community that advocates the preservation, restoration,
and improvement of the environment is referred to as
A. green capitalism.
46. As noted in your text, environmentalism is concerned with
A. teaching developing countries how to employ more efficient production practices.
B. eliminating industries that do not practice sustainability.
47. Environmentalism does NOT typically focus its efforts on
A. improving the environment.
B. utilizing resource-conserving products and practices.
48. As noted in your text, 96 percent of _______ consumers say that protecting the environment is important to them.
49. What global retailer initiated a $30 million project aimed at lifestyle and environmental improvements, including employee
participants who learned about the importance of embracing environmental sustainability?
A. Target
50. Tactical greening involves
A. substantive changes.
B. a holistic approach.
51. A clothing manufacturer has decided to buy its cotton only from those growers that grow it organically. This is an example of
A. quasi-strategic greening.
B. strategic greening.
52. A type of environmental marketing activity that involves substantive changes in marketing actions as well as broad-based
coordination among nonmarketing activities is referred to as
53. When a firm redesigns its logo and reduces packaging materials to reflect its ecological views, this is an example of
54. A holistic approach that integrates and coordinates all of the firm’s activities on environmental issues across every functional
area is the basis behind
A. limited greening.
B. substantial greening.
55. Clorox, manufacturer of cleaning supplies, introduced a new product line called Green Works. This line of cleaning products
is made from biodegradable, plant-based materials and is aimed at satisfying the green market. This is an example of
56. Marketers seeking to reduce costs and the environmental impact of their activities typically pursue a strategy of
57. Which environmental marketing strategy involves identifying environmentally friendly practices that also have the effect of
creating cost savings and driving efficiencies throughout the organization?
58. Which environmental marketing strategy involves showing customers that the company does more than the competition to
implement an environmental strategy?
A. environmental cost leadership
59. Marketers who focus on communicating to stakeholders the company’s attempts to adopt environmentally friendly practices,
will most likely use which environmental marketing strategy?
A. sustainable value innovation
B. eco-efficiency
60. For a(n) _______ strategy to be effective, consumers must recognize a noticeable benefit from their purchase.