Chapter 04
Test Bank
1. The purpose of conscious marketing is to make a product by selling products and services.
2. Marketing ethics is concerned with distinguishing between right and wrong actions and decisions that arise in a business setting, according to broad
and well-established moral and ethical principles that might arise in a business setting, and any special duties or obligations that apply to persons
engaged in commerce.
3. Marketing ethics can involve societal issues such as the sale of products or services that may damage the environment or global issues such as the use
of child labor.
4. The consideration of stakeholders and their interdependence is one of the four overriding principles of conscious marketing.
5. Key corporate social responsibility (CSR) stakeholders include employees, customers, the marketplace, and society.
Feedback: Key corporate social responsibility (CSR) stakeholders include employees, customers, the marketplace, and society.
6. When Walmart pressured its vendors to supply it with environmentally friendly merchandise with labels to prove it, this most relates to the concept of
sustainability.
7. One way in which conscious marketing differs from corporate social responsibility (CSR) is that CSR takes a holistic, ecosystem view of business as
a complex, adaptive system.
8. From a conscious marketing perspective, social responsibility is at the core of the business through the higher purpose and viewing the community
and the environment as stakeholders.
9. Coca-Cola spent $102 million through The Coca-Cola Campaign focusing on water stewardship, healthy and active lifestyles, community recycling,
and education. This is an illustration of a CSR program.
10. The first step in ethical decision making is to gather information and identify stakeholders.
11. The Golden Rule test asks the question, “Would I like to be on the receiving end of this action and all its potential consequences?”
12. A roofing company agreed to complete a job in one week and collected a 50 percent deposit, but never showed up to do the job. The same roofing
company then donated $6,000 to a local children’s hospital. The roofing company could be considered socially responsible.
13. BlendMate, a firm that manufactures high-end blenders, donates $10 per blender sold to a local food bank. This is a form of corporate social
responsibility.
14. Ethos Water donates 2 percent of its profits to children in need of clean water. This action demonstrates that Ethos Water is a firm with a strong
ethical climate.
15. Corporate social responsibility refers to the coordinated actions of government organizations to address the ethical, social, and environmental
impacts of business operations.
16. Among the key differences between conscious marketing and CSR is the unique view on shareholders that is absolutely critical to CSR.
17. Stakeholders typically include the firm’s employees and their families, customer groups, members of the community, the environment, and the
firm’s partners and competitors.
18. Brainstorming in the ethical decision-making framework occurs immediately following the identification of issues.
19. Badger Hardware was planning on raising the pay of its managers, but not its frontline employees. To determine the potential ethical issues, it
should first identify the issues involved so that it can gather facts related to those issues.
20. A common view in today’s business climate is that the only responsibility of a business is to its shareholders, so its only purpose is to make a profit.
21. Tipco Computer Company decided to market its tablet computers to preschoolers, even though the tablets were better suited for much older
children. This potentially unethical activity takes place during the control phase of the strategic marketing planning process.
22. Once the marketing strategy is implemented, controls must be in place to be certain that the firm has actually done what it has set out to do.
23. An example in the text describes a campaign by Grey Poupon that involved a Facebook campaign targeted toward people who had “good taste.” The
campaign was criticized for privacy issues that made it unethical. This occurred during the implementation phase of the strategic marketing planning
process.
24. The most basic corporate social responsibility to employees is to ensure the highest pay for the work performed.
25. Pepsi has cooperated with America on the Move to improve many of its products and their labels, such as reducing the saturated fat in its Frito-Lay
Ruffles. This form of social responsibility most directly impacts shareholders.
26. Business ethics and marketing ethics are synonymous terms.
27. Conscious marketing encompasses all of the following overriding principles except
28. Business ethics is concerned with all of the following except
29. The sale of products that may damage the environment, the use of sweatshop labor, and the marketing of dangerous products are examples of
30. When Walmart issued new standards for livestock products that were raised on food without antibiotics or artificial growth hormones, it considered
multiple ______, including the ranchers that supply the food, its customers, and animal welfare groups.
31. All of the following are included in the decision-making metric except
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32. ____________ provides a detailed, multipronged “Statement of Ethics” that can serve as a foundation for marketers.
33. In the ethical decision-making metric, the question that asks “Would I want the person I admire most to see me doing this?” applies to the
34. The _________ for natural skin care company Burt’s Bees is to “create natural, Earth-friendly personal care products formulated to help you
maximize your well-being and that of the world around you.”
35. In the ___________ stage, a firm will decide what level of commitment to its ethical policies and standards it is willing to declare publicly and how
the firm plans to balance the needs of its various stakeholders.
36. Which of the following statements regarding corporate social responsibility is true?
37. Which of the following statements regarding conscious marketing is correct?
38. When marketers work in controversial or polluting industries such as tobacco or fossil fuels, their central activities largely bar them from becoming
39. Which of the following descriptions embodies conscious marketing principles?
40. New real estate disclosure regulations require sellers and their agents to tell prospective buyers about any existing problems with the property.
Previously, they were expected only to answer buyers’ questions. The new regulation addressed the marketing ethics problem of
41. When making decisions, managers often have to decide between doing what is beneficial for them (and possibly the firm) in the short run, and doing
what is right and beneficial for the firm and for society in the long run. To address this conflict, a firm
42. To avoid having ethical situations become problematic for a firm, the short-term goals of each employee must
43. Compared to the average company, firms with strong ethical climates tend to
Feedback: A strong ethical climate and social responsibility often (though not always) go hand in hand.
44. Courses of action such as halting the market research project, making responses anonymous, and instituting training on the AMA Code of Ethics for
all researchers would be identified during the __________ stage.
45. The XYZ firm is in Step 4 of its ethical decision-making process. Executives were asked to take the Publicity test using an ethical-decision making
metric. All scores were in the “No” column. What does this mean?
46. Ironically, while the leaders of Enron Corporation were manipulating the company’s finances for their personal benefit, the company was a major
donor to Houston area charities. Enron had unethical business practices, but was also
47. The ethical decision-making framework includes all of the following steps except
48. Garrett has just purchased a beer distributorship. He wants to increase the visibility of his firm in local markets, but he knows there are a number of
regulations and socially accepted practices associated with promoting alcoholic beverages. The first thing Garrett should do is to
49. Hisaoki picks up the local newspaper and reads a stinging letter to the editor criticizing his beverage company for supporting a sporting event for
children with disabilities. The letter writer is critical of a banner displayed at the event with the logos of alcoholic beverages and Hisaoki’s company
name. Hisaoki never considered that this problem might arise. Hisaoki’s company failed to
50. Many corporations are shifting from defined benefit to defined contribution retirement programs. When considering changes to retirement
programs, the primary stakeholders are the
51. When Bernie Ebbers, WorldCom’s CEO, was convicted of financial crimes, WorldCom was forced to merge with MCI. One of the ramifications of
this merger was the loss of WorldCom’s sponsorship of the Sea Pines Heritage PGA golf tournament. The tournament funds the Heritage Foundation, a
major community charity. This example illustrates
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52. All of the following statements regarding corporate social responsibility are true except
53. The Harvest County School Board is concerned about deteriorating school facilities, combined with a shrinking budget. The board began by
studying the issue, and then identified parents, children, teachers, staff, and taxpayers as groups who have a vested interest in the problem. The school
board has listened to each group‘s concerns. In the ethical decision-making framework, its next action should be to
54. After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision-making situation,
__________ should engage in brainstorming and evaluating alternatives.
55. After a firm has identified the various stakeholders and their issues and gathered available data related to an ethical decision-making situation, all
parties relevant to the decision should
56. After a firm has identified the various stakeholders and their issues and gathered the available data, all parties relevant to the decision should engage
in brainstorming and evaluating alternatives. __________ then review and refine these alternatives, and choose a course of action.