Chapter 17: Leadership, Corporate Social Responsibility, and Sustainability
TRUE/FALSE
1. International marketers often wrongly interpret the cultural differences in the local market due to lack
of sufficient research.
2. In socialist societies, it is typically the individual that receives preference over the group.
3. Government intervention in international marketing activities has increased after the economic crisis in
2008.
4. When host-country regulations have been less demanding than those in home countries, some firms
sell products that may not meet home-country expectations in terms of quality or benefit.
5. A company can obtain greater public trust by ensuring that it brings good benefits to societies.
6. Consumers around the world place a great deal of trust in financial services firms compared to other
industries.
7. The trust in business is currently much stronger in developed countries than in emerging markets.
8. Rapid technological and scientific advances in international markets require high-level leadership
qualities among government, societal, and business leaders.
9. Governments are playing a new and growing role in international marketing, partly because of the
outgrowth of global crises that had not been anticipated or addressed by market forces.
10. American consumers expect businesses to treat and pay their employees well as part of their corporate
commitment.
11. Corporate philanthropy is a specific term used to highlight the charitable contributions of a firm.
12. Corporate citizenship practices are new in the international marketing environment.
13. Shared value creation focuses on identifying and expanding the connections between the societal and
economic programs.
14. The United States was one of the first nations to sign the 1997 Kyoto Protocol, an international
agreement that sets binding targets for industrialized countries to reduce the level of national
greenhouse gas emissions.
15. Consumers who are aware of the environmental issues and take some action due to their concern for
the environment are called “Greenthusiasts.”
16. In periods of good economic conditions, consumers do not have limits to the price premiums they will
pay for secondary benefits.
17. There is a universally accepted certification standard for organic labeling of products.
18. International marketers try to avoid criticism on sustainability by avoiding marketing campaigns
centered on sustainability performance.
19. Marketing must base itself on fact rather than emotion, on insights rather than speculation, and do so
within a changing context.
20. It is essential for front-line marketers to understand the working of the product in order to be truthful
to the consumers.
MULTIPLE CHOICE
1. Which of the following is true regarding the impact of economic growth in emerging and developing
markets?
a.
It has reduced the gap between the rich, the middle class, and the poor in the society.
b.
It has brought in new opportunities for the middle class to enjoy and experience a better
quality of life.
c.
It has brought about changes that have made life simple both for marketers and those to
whom they market.
d.
It has led to a reduction in greenhouse gas emissions across the world.
2. A theme park in Switzerland charges an extra fee for customers who want to use the locker facility
located inside the park, or want to use their vehicle for going from one ride to another, apart from the
highly priced entrance tickets. The customers have no choice but to pay for these facilities when they
are inside the theme park. This strategy employed by the company to make profits by charging
additional prices from its customers is known as _____.
a.
sustainable marketing
b.
buzz marketing
c.
ethical marketing
d.
vampire marketing
3. Which of the following is true of the impact of economic crisis in 2008?
a.
It enhanced people’s level of trust on businesses in developed economies.
b.
It revealed the importance of emerging markets and their influence on the global economic
system.
c.
It limited the role of governments in international markets in developed economies.
d.
It reduced the limitations on the size and activities of the banks in international markets.
4. Public trust in a business serves as a measurement that corresponds to the:
a.
extent to which the government of a country allows leeway on societal norms.
b.
willingness of the government to permit an open-market orientation subject to the needs of
the domestic policy.
c.
willingness of the society to allow international marketers greater leeway to do business.
d.
extent to which the customers in a country trust the government’s role in protecting the
consumers from international marketers.
5. Companies that align their products with societal interests and global trends that are impacting
societies:
a.
try to meet the needs of their government customers who face complex challenges.
b.
aim to create products exclusively for profit.
c.
end up in losses because of the costs involved in these activities.
d.
focus only on their home country.
6. Which of the following represents the view of Milton Friedman on the social responsibility of a
business?
a.
The responsibility of a business is to donate its private wealth to do good for the society
which provides the resources to it.
b.
The responsibility of a business is to provide low-priced products to its consumers.
c.
The responsibility of a business is to maximize the return of the shareholder’s investment
by employing any measure that increases profits.
d.
The responsibility of a business is to use its resources, and engage in activities that are
designed to increase its profits so long as it stays within the rules of the game.
7. For consumers in the United States, corporate social responsibility refers:
a.
to not just charitable and philanthropic giving, but also treating and paying the employees
well.
b.
only to supporting local and national communities through volunteer programs.
c.
to taking measures exclusively to reduce the environmental impact of the firm’s operations
and products.
d.
only to donating funds toward the social development of the society.
8. The term “corporate philanthropy” specifically refers to the:
a.
support provided by the firms to the local and national communities through volunteer
programs.
b.
support provided by the firms to nonprofit organizations by providing membership to their
board.
c.
philanthropic or charitable contributions of a firm.
d.
measures taken by firms to reduce the environmental impact of their operations and
products.
9. According to Porter and Kramer, the concept of shared value refers to:
a.
techniques or market-based solutions that are at the center of a business and help the
company to gain an advantage over its competitors.
b.
policies and practices that focus mainly on creation of goods and services for profit by
privately owned businesses.
c.
policies and operating practices that enhance the competitiveness of the company while
simultaneously advancing the economic and social conditions in the communities in which
it operates.
d.
techniques or market-based solutions that help in balancing the world’s energy needs and
environmental integrity.
10. The shared value approach:
a.
focuses on directly improving a company’s profitability and competitive position.
b.
mostly focuses on building corporate reputation.
c.
focuses exclusively on effectively marketing the company’s products.
d.
focuses mainly on developing the cultural infrastructure of communities.
11. CSR reporting is an effective means of formal communication to companies as these reports:
a.
assist in improving a company’s profitability and competitive position.
b.
mainly focus on building corporate reputation.
c.
help in fulfilling the moral obligation to the society.
d.
help in assessing the actual commitment of the company to responsibility programs.
12. Which of the following companies have the highest risk of failing to deliver on the promises they
make in their CR report?
a.
Companies that have an effective way of communicating and a good level of process
maturity.
b.
Companies that have quality communications but a low level of process maturity.
c.
Companies that have a good level of process maturity but lack quality communications.
d.
Companies that have just started to focus on improving the quality of their processes as
well as their communication abilities.
13. “Greenthusiasts” are consumers:
a.
for whom green products are attractive only if they are low-priced.
b.
who have strong environmental attitudes but do not necessarily reflect their attitudes in
actual purchases.
c.
for whom environmental issues are a passionate concern.
d.
who are aware, concerned, and taking some action.
14. Linda is concerned about environmental issues and the impact of her purchases on the environment.
But she is not keen on paying higher prices for green products due to financial constraints. Linda is an
example of “_____.”
a.
Greenspeaks
b.
Greenthusiasts
c.
Greensteps
d.
Greenwashers
15. Consumers who are aware of the environmental issues, concerned about the environmental impact of
products, and take action to bring about change are called “_____.”
a.
Greenspeaks
b.
Greensteps
c.
Greenthusiasts
d.
Greenwashers
16. Which of the following factors will mostly affect the purchase of green products by consumers who
are committed to buying green products?
a.
Shopping convenience
b.
Product availability
c.
High price
d.
Lack of good and reliable information
17. The term “greenwashing” refers to:
a.
the policies and practices employed by a firm to reduce the environmental impact of its
operations and products.
b.
the overblown environmental claims made by a firm to create a false green image.
c.
the marketing approach used by a firm to specifically promote its certified environment
friendly products.
d.
the genuine claims made by a firm regarding its charitable or philanthropic contributions
to the society.
18. Lanco foods advertised its products as eco-friendly as they were packaged using recycled material.
However, the company was still sourcing raw materials from farmers who were using environmentally
hazardous pesticides. These false claims made by Lanco foods while marketing its products is referred
to as _____.
a.
eco-marketing
b.
green trading
c.
carbon offsetting
d.
greenwashing
19. There are no perfect standards to judge the environmental issues and the impact of products on the
environment. Hence companies can avoid criticism centered on greenwashing by:
a.
reporting on sustainability performance but avoiding marketing campaigns centered on it.
b.
not reporting about their sustainability measures to the public.
c.
keeping information regarding the products confidential.
d.
ignoring the environmental impact of their operations and products.
20. Curative marketing is considered to be a necessary approach for international marketers as it:
a.
focuses on offering quality green products at the right price points.
b.
uses marketing capabilities to make up for the past errors with future action.
c.
helps to promote their environmental or sustainability behavior.
d.
aims to sell their products at competitive prices in international markets.
21. Naira’s, an international clothing brand, has set up a team to analyze the mistakes the company made
in understanding the cultural nuances of one of its international markets. The team has been asked to
conduct a survey to understand the local culture and to take measures to rectify the mistakes in order to
restore the brand image in the market. Naira’s is engaging in _____.
a.
creative marketing
b.
curative marketing
c.
vampire marketing
d.
greenwashing
ESSAY
1. What is the influence of economic growth on consumers in developing markets?
2. A higher standard of leadership is now required for international marketers. Explain.
3. What is curative marketing? Why is it important for a business?
ANS:
