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chapter 3
Indicate whether the statement is true or false.
1. A decision is considered ethical or not based solely on the number of people who benefit from the decision.
a.
True
b.
False
2. Social responsibility can produce only an indirect profit.
a.
True
b.
False
3. Anything that is legal is ethical.
a.
True
b.
False
4. The utilitarian theory of ethical behavior is a belief in time-and-place ethics, that is, ethical truths depend on the
individuals and groups holding them.
a.
True
b.
False
5. Self-regulation refers to the voluntary acceptance of norms established by nongovernmental entities.
a.
True
b.
False
6. Ethical beliefs vary widely from culture to culture.
a.
True
b.
False
7. Research shows that when making ethical decisions, if the length of time between the action and its negative
consequences is short, marketers are more likely to perceive the action as unethical.
a.
True
b.
False
8. In rule utilitarianism, a person makes ethical decisions that benefit the maximum number of people and is not so
concerned about laws.
a.
True
b.
False
9. At postconventional morality level of ethical development, people are less concerned about what others think about
them and more concerned about how they handle their problems over the long run.
a.
True
b.
False
10. According to stakeholder theory, social responsibility refers to paying attention to the interest of all the stakeholders
such as management, suppliers, customers, local community, and so forth.
a.
True
b.
False
11. Conventional morality is the most basic level of ethical development.
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a.
True
b.
False
12. Cause-related marketing is a marketing relationship based on corporate giving, such as making philanthropic
donations.
a.
True
b.
False
13. The pyramid of corporate social responsibility presents ethical responsibilities as the foundation for the other three
responsibilities.
a.
True
b.
False
14. Ethics are moral principles unrelated to the conduct of an individual or a group.
a.
True
b.
False
15. Morals are rules that people develop as a result of cultural values and norms.
a.
True
b.
False
16. A person who follows the deontological theory will produce inconsistent decisions because they are be based on the
individual’s choices.
a.
True
b.
False
17. When making ethical decisions, the more likely an action will result in a harmful outcome, the less likely that
marketers will recognize a problem as unethical.
a.
True
b.
False
18. The local community is not considered one of the stakeholders of an organization.
a.
True
b.
False
19. When applying deontological theory to an ethical dilemma, the decision on how to act is based upon weighing the
alternatives and then choosing the solution which is the lesser of the perceived evils.
a.
True
b.
False
20. The pyramid of corporate social responsibility portrays philanthropic performance as the foundation for the other
responsibilities.
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
21. According to the pyramid of corporate social responsibility, which component involves being a good corporate citizen,
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contributing resources to the community and improving the quality of life?
a.
Philanthropic responsibilities
b.
Ethical responsibilities
c.
Legal responsibilities
d.
Economic responsibilities
22. At the preconventional level of ethical development of a person’s moral character, the individual tends to:
a.
focus on the long-term results of his or her actions.
b.
have an egocentric orientation.
c.
adhere to social norms and laws.
d.
focus on societal expectations.
23. Which of the following statements is true of the deontological theory and the utilitarian ethical theory?
a.
The deontological theory considers the welfare of the people, while the utilitarian ethical theory does not.
b.
The deontological theory compares a current ethical dilemma, while the utilitarian ethical theory is a belief in
time-and-place ethics.
c.
The deontological theory states that people should adhere to their duties when analyzing an ethical dilemma,
while the utilitarian ethical theory is founded on the ability to predict the consequences of an action.
d.
The deontological theory states that the truth of a moral judgment is relative to the judging person or group,
while the utilitarian ethical theory is a character trait valued as being good.
24. Which statement is true of cause marketing?
a.
It involves the cooperative efforts of a for-profit firm and a nonprofit organization for their mutual benefit.
b.
It describes a marketing relationship based on a straight donation.
c.
It occurs when government agencies and nonprofit agencies launch social campaigns.
d.
It seldom helps companies increase the sale of their products.
25. Hallie has a tendency to be egocentric. She follows the rules of her company mainly to avoid punishment and to gain
respect. When making decisions, she always focuses on the immediate benefits she will gain from an alternative. Which
of the following levels of ethical development does Hallie’s behavior illustrate?
a.
Preconventional morality
b.
Postconventional morality
c.
Conventional morality
d.
Ethnocentric morality
26. Robin, a police sergeant, believes that bribing is illegal. He does not accept bribes irrespective of the amount of
money. Robin is demonstrating _____.
a.
act utilitarianism
b.
rule utilitarianism
c.
ethical relativism
d.
moral relativism
27. Which of the following ethical theories states that the most ethical choice in a situation is one that produces the
greatest benefit to the most people?
a.
Deontological theory
b.
Moral relativism theory
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c.
Casuist ethical theory
d.
Utilitarian ethical theory
28. The rules that people develop as a result of cultural values and norms are called _______.
a.
morals
b.
laws
c.
self-regulations
d.
social-regulations
29. A socially responsible marketing effort by a for-profit firm and a nonprofit organization that targets social or other
charitable causes is referred to as __________.
a.
cause-related marketing.
b.
moral relativism.
c.
philanthropy
d.
green marketing
30. Which of the following statements is true of a code of ethics?
a.
It is most effective when presented in a long list of dos and don’ts.
b.
It is an effective internal control of behavior.
c.
It is typically drafted by government agencies.
d.
It applies to top managers of an organization rather than its employees.
31. Which of the following are NOT stakeholders in a typical corporation?
a.
Employees
b.
Customers
c.
Local communities
d.
Competitors
32. Jordon is a sales manager. He operates at the postconventional level of morality while making ethical decisions. In this
case, which of the following statements is true?
a.
He will be concerned about how he sees and judges himself over the long run.
b.
He will be concerned about how people will view his decisions.
c.
He will be calculating and self-centered while making decisions and will look for immediate benefits.
d.
He will make decisions that are not beneficial for most people.
33. Which of the following refers to 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 profits and help the world at the same time?
a.
Philanthropy
b.
Sustainability
c.
Social regulations
d.
Opportunism
34. Which of the following people is MOST likely to disapprove of unethical practices more strongly than the others?
a.
Rebecca, who has noticed that most of her colleagues often use office supplies for personal use
b.
Jason, an editor, who has noticed that all his managers agree that it is okay to plagiarize a small amount of
content occasionally
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c.
Sarah, who is a manager at an organization that does not provide guidelines for ethical behavior
d.
David, who has noticed for the first time that a colleague misrepresented data in a report
35. In which level of ethical development does a person move from a self-centered viewpoint to behaviors that adhere to
the norms of society?
a.
Preconventional morality
b.
Postconventional morality
c.
Conventional morality
d.
Ethnocentric morality
36. Which model suggests that corporate social responsibility is composed of economic, legal, ethical, and philanthropic
responsibilities that are built upon a firm’s economic performance?
a.
Pyramid of corporate social responsibility
b.
Behavioral norms of corporate social responsibility
c.
Social control
d.
Act utilitarianism
37. Ronald Systems Inc. has developed a line of appliances that runs on solar energy and causes no harm to the
environment. Which of the following business practices is illustrated in this scenario?
a.
Divestment
b.
Opportunism
c.
Green marketing
d.
Cause-related marketing
38. Which of the following ethical theories believes that people should abide by their obligations and duties when stuck in
an ethical dilemma?
a.
Deontological theory
b.
Moral relativism theory
c.
Casuist ethical theory
d.
Utilitarian ethical theory
39. Which of the following statements is a feature of the Foreign Corrupt Practices Act (FCPA)?
a.
It prohibits U.S. corporations from involvement in international business dealings.
b.
It prohibits U.S. corporations from making illegal payments to foreign governments.
c.
It cannot prosecute cases of bribery.
d.
It offers significant advantages to U.S. businesses dealing in countries in which the use of illegal payments and
bribes is acceptable.
40. Which statement about the pyramid of corporate social responsibility is true?
a.
Philanthropy should be the most important function of a corporation.
b.
Ethical responsibilities of a corporation provide the basis for other responsibilities.
c.
If a company does not make a profit, then the other 3 responsibilities - legal, ethical and philanthropic are
moot.
d.
Social responsibility efforts should be focused on the external and not the internal stakeholders of a
corporation.
41. Which term refers to the optimum utilization of assets so that a firm continues making profit in the long run?
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a.
Social sustainability
b.
Environmental sustainability
c.
Economic sustainability
d.
Physical sustainability
42. Which of the following ethical theories first identifies an ethical dilemma and then draws a comparison with other
similar dilemmas and prior experiences to reach the best possible solution?
a.
Deontological theory
b.
Moral relativism theory
c.
Casuist ethical theory
d.
Utilitarian ethical theory
43. The socializing force that governs what is ethically right and wrong is called _________.
a.
culture
b.
morality
c.
ethics
d.
virtue ethics
44. Which ethical theory does not believe in absolute rules and states that during an ethical dilemma, a person makes the
most appropriate decision by considering all the alternatives and choosing the lesser among evils as the resolution?
a.
Casuist ethical theory
b.
Act utilitarianism
c.
Rule utilitarianism
d.
Moral relativism
45. According to the pyramid of corporate social responsibility, which component includes the behavioral aspect of
corporate social responsibility, that is being meticulous and trustworthy.
a.
Philanthropic responsibilities
b.
Ethical responsibilities
c.
Legal responsibilities
d.
Economic responsibilities
46. Foreign Corrupt Practices Act (FCPA) was enacted because congress was concerned about
a.
U.S. corporations’ use of illegal payments and bribes in international business dealings.
b.
so that website operators obtain verifiable consent from parents before collecting personal information about
children under age thirteen.
c.
to set a standard for the suite of educational apps.
d.
None of these.
47. Which of the following is a guideline to help marketing managers and other employees make better decisions?
a.
Code of ethics
b.
Morals
c.
Laws
d.
Self-regulations
48. Developing long-term sources of clean water to improve health and preserve local ecosystems while creating a
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competitive advantage is an example of:
a.
social sustainability.
b.
environmental sustainability.
c.
economic sustainability.
d.
physical sustainability.
49. Which of the following theories assumes that the outcomes of a current ethical dilemma will be comparable to the
outcomes of similar ethical dilemmas?
a.
Casuist ethical theory
b.
Act utilitarianism
c.
Rule utilitarianism
d.
Ethical relativism
50. According to the three levels of ethical development, which statement is true of conventional morality?
a.
It is the most basic level of ethical development.
b.
A person at this level performs unethical and manipulative actions.
c.
It is predominantly characterized by an egocentric viewpoint of an individual.
d.
A person at this level is more concerned with how an action will be viewed by others.
51. Which of the following statements is true of a utilitarian?
a.
A utilitarian believes that arson is sometimes ethical and not always wrong.
b.
A utilitarian will always keep his promises to a friend and follow the law.
c.
A utilitarian is not necessarily concerned with the welfare of others.
d.
A utilitarian compares similar predicted solutions and uses a point system.
52. Allan protests against individuals who litter on roads because he believes that society expects cleanliness from people.
This illustrates _____.
a.
preconventional morality
b.
utilitarianism
c.
moral relativism
d.
conventional morality
53. Which of the following is one of the four major components of the pyramid of corporate social responsibility?
a.
Opportunism
b.
Self-dealing
c.
Creativity
d.
Philanthropy
54. A person whose behavior illustrates the deontological theory of ethics would ___________________.
a.
choose an alternative that adheres to laws and standards set by the government without considering his or her
obligations toward society
b.
adopt an approach that is concerned with the welfare of others
c.
choose an alternative based on a comparison of his or her current ethical dilemma with examples of similar
ethical dilemmas
d.
stick to his or her obligations when stuck in an ethical dilemma because doing one’s duty is what is considered
ethically correct
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55. Jack is told by a foreign official that he cannot obtain the contract that he critically needs unless he pays a bribe.
Which of the following ethical theories would not allow bribing?
a.
Deontological theory
b.
Moral relativism
c.
Utilitarian ethical theory
d.
Ethnocentric morality
56. How are act utilitarianism and rule utilitarianism similar?
a.
Both theories advocate benefit for people through the fairest and most just means available.
b.
Both theories compare a current ethical dilemma with similar examples.
c.
Both theories have flaws associated with predicting the future consequences of an action.
d.
Both theories are beliefs based on time-and-place ethics.
57. _____ is a business’s concern for the long-range welfare of both the company and its relationship to the society within
which it operates.
a.
Preconventional morality
b.
Moral relativism
c.
Corporate self-dealing
d.
Corporate social responsibility
58. A business firm is collaborating on an initiative with a nonprofit organization by providing public-relations training to
working professionals throughout a country. Twenty percent of the fee that the participants would pay is given to the
nonprofit organization. The nonprofit organization in turn reaches a wider range of audience across the country for its
training program. This scenario illustrates _____.
a.
relationship marketing
b.
effect-related marketing
c.
cause-related marketing
d.
green marketing
59. Which of the following ethical theories states that it is an organization’s social responsibility to pay attention to the
interest of every affected stakeholder in every aspect of an organization’s operation?
a.
Deontological theory
b.
Moral relativism theory
c.
Casuist ethical theory
d.
Stakeholder theory
60. Which term refers to a type of social responsibility concerned with developing processes and structures that not only
meet the needs of a current community, but benefit future generations as well?
a.
Social sustainability
b.
Environmental sustainability
c.
Economic sustainability
d.
Physical sustainability
61. Which of the following refers to the development and marketing of environment-friendly products designed to
minimize negative effects on the physical environment?
a.
Green marketing
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b.
Relationship marketing
c.
Economic sustainability marketing
d.
Cause-related marketing
62. Which of the following ethical theories is defined as a belief in time-and-place ethics and holds that ethical truths
depend on the circumstances?
a.
Deontological theory
b.
Moral relativism theory
c.
Casuist ethical theory
d.
Utilitarian ethical theory
63. Jamal is a marketing manager who, when it comes to ethical decisions, is more concerned about the long-term effects
of an ethical decision he makes than what others think of his decision. Therefore, which level of ethical development does
Jamal’s behavior demonstrate?
a.
Preconventional morality
b.
Postconventional morality
c.
Conventional morality
d.
Ethnocentric morality
64. A code of ethics:
a.
should include an operations schedule of day-to-day activities.
b.
should be limited to a list of dos and don’ts.
c.
should be in written form to avoid confusion.
d.
Does not help employees to identify what is wrong and what is right.
65. When considering ethical theories, which statement is true of moral relativism?
a.
Moral relativists believe that an act is always ethically wrong if it is legally wrong.
b.
It does not believe in absolute rules.
c.
Moral relativists believe that the most beneficial choice for the most people is ethically correct.
d.
It is a belief based on rules and individual obligations.
66. Which of the following ethical theories believes in the well-being of maximum people using the fairest means
available?
a.
Deontological theory
b.
Moral relativism theory
c.
Act utilitarianism theory
d.
Rule utilitarianism theory
67. In which way are deontological theory and moral relativism similar?
a.
Both theories are concerned with the welfare of others.
b.
Both theories may lead to actions that are not ethically correct.
c.
Both theories are free from flaws.
d.
Both theories compare a current ethical dilemma with similar examples and outcomes.
68. When considering ethics in other countries, which of the following statements is true?
a.
Corruption seldom occurs in international business dealings.
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b.
The practice of making illegal payments, such as bribes, is accepted and expected in various countries.
c.
Ethical beliefs vary widely from culture to culture.
d.
Prosecutions under the Foreign Corrupt Practices Act have significantly declined.
69. Maria is a very soft spoken girl and she hardly hurts anybody. She does not raise her voice when she speaks and is
very careful about the way she speaks and the words she chooses. She gets married and finds that her husband is highly
abusive. However she controls her anger for a considerable amount of time without retaliating. One fine day, she loses
patience and abuses her husband and slaps him in public. What Maria exhibited conforms to the ethical theory of
a.
Casuist ethical theory
b.
Act utilitarianism
c.
Rule utilitarianism
d.
Moral relativism
70. Which responsibility among the 4 components of the pyramid of corporate social responsibility acts as the foundation
for the other three responsibilities.
a.
To do what is meticulous.
b.
To be a good corporate citizen.
c.
To obey the law.
d.
To make profits.
71. Quasio Foods Inc. is a large food manufacturing corporation that earns more profits than its competitors. The company
uses only organically grown grains and fruits. It also promotes organic farming and helps nonprofit agencies who focus on
food and nutrition causes. The company recently decided to use a third-party recycling logo. In this scenario, Quasio
Foods is most likely to have adopted the practice of _________________.
a.
relationship marketing
b.
event marketing
c.
green marketing
d.
affinity marketing
72. A marketing decision maker who is concerned only with whether a proposed action is legal and how it will be viewed
by others is demonstrating which level of ethical development?
a.
Preconventional morality
b.
Postconventional morality
c.
Conventional morality
d.
Ethnocentric morality
73. Which of the following represents a business’s concern for society’s welfare?
a.
Corporate social responsibility
b.
Opportunism
c.
Preconventional morality
d.
Moral relativism
74. When making an ethical decision, if there is strong consensus among coworkers that an action may bring harm to
others, which of the following is most likely to occur?
a.
It is more likely that marketers will recognize that behavior as unethical.
b.
It is more likely that the action will not result in a negative outcome.
c.
Fewer individuals inside and outside the organization will be affected by the outcome of the action.
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d.
Fewer people will be affected by the negative outcome.
75. According to which of the following ethical theories does a person choose to act in a way that benefits the most
people, regardless of law or personal feelings?
a.
Act utilitarianism
b.
Rule utilitarianism
c.
Moral relativism
d.
Virtue ethics
76. Which of the following is a disadvantage of cause-related marketing?
a.
It does not increase the sale of products.
b.
It can lead to consumer cause fatigue.
c.
It results in immediate losses for a company because of its focus on a cause.
d.
It requires corporations to use anticompetitive measures.
77. Which of the following statements is true of rule utilitarianism?
a.
Ethical truths depend on the individuals and groups holding them.
b.
Decisions must benefit the maximum number of people through the fairest and most universally just means
available.
c.
A current ethical dilemma should be compared with similar examples and outcomes before deciding on a
course of action.
d.
Intuition and personal feelings should guide decision making when faced with ethical dilemmas.
78. When considering corporate social responsibility, which is true of stakeholder theory?
a.
It states that companies should only focus on increasing shareholder wealth.
b.
It states that social responsibility is best carried out by government agencies.
c.
It states that a company is expected to be a good citizen in its community.
d.
It states that the management does not play a special role in the organization.
79. When considering the determinants of a civil society, which of the following refers to the voluntary acceptance of
standards established by nongovernmental entities?
a.
Self-regulation
b.
Ethics
c.
Social control
d.
Behavioral norms
80. Which of the following statements is true of morals?
a.
They are universal and seldom vary.
b.
They are independent of factors such as culture and religion.
c.
They reflect the laws and regulations that affect social and economic behavior.
d.
They set absolute standards for good and bad that are enforced by the law.
81. Mark comes from a very poor family yet he works hard and scores high in his school exams. However he fails to get a
job since the school he studied in did not equip him with the adequate knowledge to find a job. Mark thus starves since he
does not earn for his livelihood. Finally he gets depressed and steals food from some people who buy delicious food from
a local restaurant. What ethical theory has Mark displayed in this case.
a.
Act utilitarianism
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b.
Rule utilitarianism
c.
Casuist
d.
Moral relativism
82. Quinn is the sales manager of a firm with a questionable reputation. During his tenure, he has witnessed numerous
incidents of ethical misconduct. Research shows that he would observe less ethical misconduct if
________________________.
a.
his coworkers had a strong ethical culture among themselves
b.
a code of ethics was absent from his firm
c.
organizational rules were flouted in his firm
d.
the top managers of his firm had little control over organizational culture
83. Identify and describe the three levels of ethical development.
84. Discuss how the casuist ethical theory differs from moral relativism theory and describe their drawbacks.
85. Discuss the pyramid of corporate social responsibility and its components.
86. Discuss the factors that determine the nature of an ethical decision.
87. Explain what is meant by green marketing and provide examples of businesses following green practices.
88. Discuss what is meant by cause-related marketing and how it differs from philanthropy.
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Answer Key
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