Chapter 3—Ethics and Social Responsibility
TRUE/FALSE
1. An active civil society 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. Laws refers to the moral principles or values that generally govern the conduct of an individual or
group.
4. The deontological theory of ethics is founded on the ability to predict the consequences of an action.
5. 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.
6. Ichiro’s family was starving, so he stole a loaf of bread to feed them. A moral relativist would classify
Ichiro’s action as ethically incorrect.
7. Morals are rules people develop as a result of cultural values and norms.
8. Unfortunately, most businesspeople have not progressed beyond the self-centered and manipulative
actions of preconventional morality.
9. You are writing copy for a fruit drink advertisement. You know you could sell more product if you
claimed that the drink contained 100% juice, but in fact the drink contains only 50% juice. You decide
not to make the “100% juice” claim because you know it would be illegal to do so. You are likely at
the postconventional stage of morality.
10. Top managers who behave ethically can influence others in an organization to behave ethically.
11. A code of ethics can be an effective internal control on behavior, which is more desirable than external
controls like government regulations.
12. When writing codes of ethics, businesses must ensure their codes deal with every possible situation.
13. For most employees a simple list of “dos and don’ts” are enough to maintain ethical behavior, and
ethical training would be redundant.
14. Large companies such as Walmart are able to force ethical standards on its suppliers.
15. Studies suggest that ethical beliefs vary only a little from culture to culture.
16. Most business ethicists agree that multinational firms that expand into developing countries are acting
ethically when they provide low-income work to the people in those countries, arguing that
low-income work is better than no work.
17. Sustainability refers to a business’s concern for society’s welfare.
18. Suppliers are considered stakeholders of a firm.
19. The foundation for the pyramid of corporate social responsibility is philanthropic responsibility.
20. The most basic argument for social responsibility is that it is simply the right thing to do.
21. Because social responsibility has proven to have a limited return on investment, the number of
businesses opting to act socially responsible is declining.
22. When Laurie uses her Target Visa card at the store, Target donates 1 percent of her purchase to her
children’s school. This is an example of green marketing.
23. Everyone agrees that cause-related marketing is beneficial.
24. 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. 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
2. How do formal and informal groups influence social control?
a.
They prescribe acceptable and desired behaviors of their members.
b.
They allow everyone who wants to know to be informed about your behavior.
c.
They accept laws as a necessary evil.
d.
They use informed consumers to maintain ethical adherence.
e.
They do not influence social control.
3. In a series of reports, a journalist in Great Britain investigated concerns over vaccines and their alleged
causal relationship with autism, as well as a British doctor who made the claims. The investigation
ultimately resulted in the UK General Medical Council finding the doctor to be “dishonest” and
“unethical” for making such claims, and he was struck off of the UK medical register. 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
4. 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 _____ influence(s) social control.
a.
an active civil society
b.
laws
c.
formal and informal organizations
d.
the media
e.
self-regulation
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. 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
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, a person performs the acts that benefit the most people, regardless
of personal feelings or societal constraints.
a.
act
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. The _____ assumes that the results of the current ethical dilemma will be similar to results in the
examples.
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. Nick works as a cashier in a grocery store. His mother is very sick and cannot afford the medicine she
needs to stay well. He decides to shortchange customers and pocket the difference so that he can
obtain the money his mother needs to buy medicine. Nick appears to be a(n) ______.
a.
virtue theorist
b.
deontologist
c.
utilitarian
d.
moral relativist
e.
empiricist
23. The _____ is a moral philosophy that emphasizes character rather than rules or consequences.
a.
theory of virtue ethics
b.
deontological theory of ethics
c.
utilitarian theory
d.
theory of moral relativism
e.
casuist ethical theory
24. Proponents of _____ 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 ethics
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. “Don’t speed, because it’s against the law” is a tenet that would likely appeal to someone at hich
stage of ethical development?
a.
Postconventional morality
b.
Conventional morality
c.
Preconventional morality
d.
Secondary morality
e.
Primary morality
31. During World War II, German industrialist Oskar Schindler paid money out of his own pocket in order
to hire and save the lives of almost 1200 Jews during the Holocaust by employing them in his
enamelware and ammunition factories. Some evidence indicates that his ammunition factories
deliberately produced faulty product and did not manufacture a single usable shell for the Nazis.
Schindler was most likely at the _____ stage of ethical development.
a.
preconventional morality
b.
transformationalism
c.
conventional morality
d.
postconventional morality
e.
actualized morality
32. 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
33. 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
34. Which of the following is an unethical practice marketing managers may have to deal with?
a.
Misrepresentation of goods
b.
Invasion of customer privacy
c.
Price discrimination
d.
Smaller amounts of product in the same-size package
e.
All of these choices
35. 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
36. 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
37. 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
38. 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.
39. With regard to ethical decision making, an individual should ask herself all of the following EXCEPT:
a.
Does the decision benefit one person or group but hurt or not benefit other individuals or
groups?
b.
Would my decision upset qualified job applicants?
c.
Will my decision create conflict between individuals or groups within the company?
d.
Can I get away with this behavior?
e.
Will I have to pull rank or use coercion to implement my decision?
40. 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
41. One cultural difference regarding business ethics in Russia, as compared to the United States, is that:
a.
accepting illegal payments is considered a serious crime in Russia
b.
the board of directors of all Russian firms must contain an equal number of men and
women
c.
in Russia it would be considered highly unethical to fire an employee for making a
mistake on the job
d.
in Russia bribes and connections in the government are essential for doing business
e.
it is standard practice for Russian businesses to lie to customers in order to get a sale
42. 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
43. 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
44. Many American businesses are expanding their operations into developing countries. These businesses
are often finding that:
a.
environmental standards are usually much higher in developing countries than in the U.S.
b.
labor unions are much more powerful in most other countries than they are in the U.S.
c.
ethical standards are often overlooked by governments hungry for jobs or tax revenues.
d.
host countries generally expect U.S. businesses to be good corporate citizens
e.
labor costs are much higher abroad than they expected
45. _____ is the concern of business for the long-range best interests 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
46. 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 society’s welfare by businesses
e.
coordination of social programs for publicity purposes
47. 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
48. Tyson Foods launched a campaign in Austin, Texas, in which it agreed to donate 100 pounds of
chicken to the Capital Area food Bank of Texas for every comment posted on its blog. This campaign
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