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e.
More information about the products can be posted online.
58. According to the consumer bill of rights, the right to be informed means that
a.
consumers' interests will receive full and sympathetic consideration in the formulation of government policy.
b.
consumers should have access to a variety of goods and services at competitive prices.
c.
consumers should have access to and the opportunity to review all relevant information about a product before
buying it.
d.
marketers have an obligation not to knowingly market a product that could harm consumers.
e.
consumers should be told when the quality of a product has changed.
59. Target's Take Charge of Education program donates 1 percent of a customer's total purchase to the school of his or her
choice. What social responsibility issue does this program address?
a.
Consumerism
b.
Marketing ethics
c.
Community relations
d.
The natural environment
e.
Promotion
60. Various stakeholders and ____ determine the acceptable standards of conduct involving ethics.
a.
the organizations' ethical climate
b.
the federal government
c.
various self-regulating bodies
d.
governmental agencies
e.
the industry leaders' ethics
61. Ethical standards for acceptable conduct for a company should
a.
be clearly dictated by top management and enforced by all management staff.
b.
consider only the point of view of the customers and the employees.
c.
reflect the desires of the company's employees for a quality working environment.
d.
be based on company, industry, government, customer, and society viewpoints.
e.
be derived from federal, state, and local laws and regulatory agencies.
62. The way to deal with ethical issues is proactively
a.
right before the problem is made public
b.
after the problem has received extensive media attention
c.
immediately after the problem is discovered
d.
when lawsuits are brought against the company
e.
during the strategic planning process
63. A marketing ethics issue likely exists when
a.
company members disagree about a marketing decision.
b.
an activity does not benefit the organization but benefits the environment.
c.
an activity results in increased prices for the consumer.
d.
a consumer is dissatisfied with a marketing decision.
e.
an individual or organization must choose from among several actions that must be evaluated as right or
wrong.
64. Reese has recently joined PharmaTec, a large pharmaceutical firm, as a sales representative. During his interview, he
was surprised that no one wanted to talk about why the previous sales rep suddenly left the company. However, today he
has just been “briefed” on the recent lawsuit one of the physician’s has filed against PharmaTec concerning the lack of
information he received from the company about the negative effects of one of its cholesterol drugs. Reese’s sales
manager has demanded that if he comes across any documentation in the former sales representative’s office about visits
with the physician, that Reece is to not say anything to anyone and notify the manager immediately. Reese certainly
doesn’t want to jeopardize his new, and potentially profitable, job. He has identified four possible courses of action he
could take. He knows he should evaluate each possible action with which of the following criteria in order to choose the
one most appropriate?
a.
its level of positive or negative impact on PharmaTec’s reputation
b.
its potential to increase (or decrease) PharmaTec’s profit
c.
whether the action is inherently right or wrong
d.
whether he will be appreciated or unappreciated by his coworkers afterward
e.
whether it will be courageous or cowardly on his part
65. An ethical issue is
a.
likely to arise when an employee's moral philosophy is consistent with the organization's expectations of the
employee's behavior.
b.
an identifiable problem, situation, or opportunity requiring an individual to choose from among several actions
that must be evaluated as right or wrong.
c.
most often found in personal selling situations.
d.
easily resolved by consulting written laws and regulations.
e.
characterized by a blatant disregard for human rights and equality.
66. ____ ethical issues generally surface when companies fail to disclose risks associated with a product or information
regarding its function, value, or use.
a.
Promotion-related
b.
Distribution
c.
Corporate
d.
Product-related
e.
Safety
67. Product-related ethical issues arise when marketers
a.
provide consumers with inadequate information about how a product is priced.
b.
force channel intermediaries to behave in a specific manner.
c.
bribe salespeople to push one product over another.
d.
fail to disclose information to consumers about the risks associated with using a product.
e.
manufacture a product that is very similar to a competing product.
68. Bridgewater, Inc. produces its industrial components in several developing countries outside the United States. The
majority of Bridgewater’s customers are in the U.S. and Canada. One of Bridgewater’s customers is Craft Care, who uses
Bridgewater components in the production of child car seats. Recently, there was a recall of Craft Care’s car seats due to
serious injuries, which the company has traced back to Bridgewater’s components. If Bridgewater knew about the faulty
components, but failed to notify Craft Care, it would have been engaging in unethical behavior with regard to which of the
following marketing issue areas?
a.
planning and strategy
b.
distribution-related
c.
promotion-related
d.
product-related
e.
quality-related
69. A cereal company advertises that its newly launched product can lower cholesterol although the company cannot
provide evidence to substantiate this claim. This situation involves an ethical issue related to which element of the
marketing mix?
a.
Product
b.
Pricing
c.
Promotion
d.
Distribution
e.
Production
70. When a purchasing agent for Intel is offered a bribe by a silicon manufacturer salesperson,
a.
a promotion-related ethical issue has been created.
b.
the purchasing agent is free to accept the bribe without consequences.
c.
an ethical issue primarily related to the pricing of products exists.
d.
there is an ethical dilemma for the purchasing agent that is product related.
e.
no ethical issue exists under these circumstances.
71. What are some of the common price-related ethical issues?
a.
Misleading advertising and predatory pricing
b.
Additional discounts and price fixing
c.
Not disclosing the full price and value-pricing
d.
Predatory pricing and price fixing
e.
Loss leaders and deceptive pricing
72. Pharmaceutical companies have at times been accused of acting unethically by taking advantage of customers in the
area of
a.
promotion.
b.
pricing.
c.
distribution.
d.
product.
e.
manufacturing.
73. Distribution-related ethical issues arise when marketers
a.
do not provide intermediaries with enough information about how a product is priced.
b.
force channel intermediaries to behave in a specific manner.
c.
bribe salespeople to push one product over another.
d.
fail to disclose information to consumers about the risks associated with using a product.
e.
distribute a product that is very similar to a competing product.
74. At times, large retailers such as Walmart may be accused of coercion in dealing with intermediaries because of the
amount of power and control these large companies have over many of their suppliers. This is most potentially a ____
related ethical issue.
a.
promotion
b.
pricing
c.
culture
d.
product
e.
distribution
75. According to the text, which of the following is not one of the factors that influence the ethical decision-making
processes in a marketing organization?
a.
Organizational culture
b.
Attitudes toward religion
c.
Opportunity
d.
Individual factors
e.
Organizational pressure
76. All of the following are factors that influence the ethical decision-making process except
a.
opportunity.
b.
individual factors.
c.
organizational culture.
d.
organizational pressure.
e.
salary or wages.
77. Three factors that influence the ethical decision-making process in marketing include
a.
individual factors, organizational culture, and peer influence.
b.
opportunity, personal moral philosophies, and situational variables.
c.
individual factors, organizational factors, and opportunity.
d.
social forces, laws, and organizational factors.
e.
peer influences, personal moral philosophies, and opportunity.
78. Since most ethical choices pertaining to marketing decisions are jointly made, an organization must ensure the ____
reflects the organization's values, beliefs and norms.
a.
code of ethics
b.
code of conduct
c.
enforcement of ethical standards and screening techniques
d.
employee self-regulation and screening procedures
e.
organizational or corporate culture
79. Ethical choices in business situations are most often made
a.
by top managers.
b.
by front-line employees.
c.
jointly in work groups and committees.
d.
in consultation with family, friends, and coworkers.
e.
individually.
80. At his new job, Carlos notices that everyone places high values on their families and each others' families, birthdays
are always celebrated, and flexible schedules are permitted to facilitate family involvement as long as the work is still
getting done. Everyone is very relaxed and friendly. Carlos has made several observations about the
a.
organizational structure.
b.
ethical climate.
c.
morale and performance programs.
d.
codes of conduct.
e.
corporate culture.
81. Tasha recently changed employers within the same industry. At her old company, employees routinely took home
company pens, pencils, paperclips, and note pads, and they frequently made personal long-distance calls on company
phones. Tasha observes that employees do not engage in such practices at her new company. What Tasha sees is best
described as a difference in
a.
significant others.
b.
profit objectives.
c.
corporate culture.
d.
legal climate.
e.
corporate goals.
82. Amanda believes that the corporate culture at her company is best conveyed in informal ways. What are some
informal ways that corporate culture is most likely to be expressed?
a.
Codes of conduct and ethics officers
b.
Memos and cultural manuals
c.
Work habits and dress codes
d.
Extracurricular activities and work habits
e.
Ceremonies and anecdotes
83. Which of the following employees is most responsible for setting the ethical tone for the entire marketing
organization?
a.
Marketing manager
b.
Marketing employee
c.
Product manager
d.
Chief executive officer
e.
Vice president of marketing research
84. A set of values, beliefs, goals, norms, and rituals shared by members of an organization is called
a.
organizational factors.
b.
corporate culture.
c.
codes of conduct.
d.
ethical environment.
e.
company ethos.
85. The effect that coworkers have on the ethical decision-making process depends on a person's exposure to ethical and
unethical behavior. Which of the following statements about ethical decision making is true?
a.
The more a person is exposed to ethical activity in the organization, the more likely he or she will behave
unethically.
b.
The more a person is exposed to unethical activity in the organization, the more likely he or she will behave
unethically.
c.
The more a person is exposed to unethical activity in the organization, the less likely he or she will pay
attention to that activity.
d.
The more a person is exposed to ethical activity in the organization, the less likely he or she will pay attention
to that activity.
e.
Exposure to ethical and unethical activity has no effect on a person's decision-making process.
86. Opportunity provides a pressure that may determine ethical decisions in marketing. Opportunity is best thought of as
a.
unethical behavior found in top management.
b.
a favorable set of conditions that limit barriers or provide rewards.
c.
the principles or rules that individuals use to determine the way to behave.
d.
a person's relationship with others in the organization.
e.
a problem or situation requiring an individual to choose a course of action.
87. Justin believes that certain conditions at his company are very conducive to engaging in unethical behavior because
these conditions provide rewards such as faster promotions and better salaries for those who bend the rules. Justin's
company seems to allow ____ for unethical behavior.
a.
peer pressure
b.
individuality
c.
corporate culture
d.
exposure
e.
opportunity
88. In response to organizational pressure to perform, Barry used a deceptive sales tactic to obtain a major sales contract.
He was surprised that he wasn't punished for his behavior and even received a substantial bonus for securing the contract.
Given the same opportunity in the future, Barry will most likely
a.
blow the whistle on his employer to a government agency.
b.
report his employer to the industry's trade association.
c.
express his discomfort with the situation to his supervisor.
d.
not use similar sales tactic again.
e.
use similar sales tactic again.
89. Carrie, a new salesperson for Brenham Foods, calls in an order for twice the amount of merchandise that Corner
Market requested because she knows that it will increase her sales and will not be noticed by Corner Market. This is an
example of how ____ influences ethical decision making.
a.
opportunity
b.
exposure
c.
a significant other
d.
a peer
e.
an external reward
90. As a media buyer for the Angelo Agency, Philip knows that no one ever checks to see if his phone calls are business
related or personal. With regard to ethical behavior, this situation relates most closely to
a.
exposure.
b.
individual factors.
c.
desire.
d.
opportunity.
e.
organizational factors.
91. Which of the following statements best summarizes the perspective that most marketing managers have on unethical
behavior?
a.
Most do not believe that unethical conduct will lead to success and refrain from taking unethical opportunities.
b.
They believe that unethical behavior is useful in the short run but detrimental in the long run.
c.
They feel that codes of conduct will eliminate any unethical behavior from occurring in their organizations.
d.
They believe that unethical behavior will be harmful in the short run but have little impact in the long run.
e.
Most do not see ethical or unethical behavior as a concern to their organization because the opportunities do
not exist.
92. ____ is (are) most likely to improve ethical behavior in a marketing organization.
a.
Hiring goal-directed employees
b.
Allowing employees to follow their own ethical standards
c.
Encouraging employees to identify ethical issues and to decide what is right
d.
Obeying the law and accepting all other behavior
e.
Eliminating unethical individuals and improving the organization's ethical standards
93. Which of the following would be consistent with Johnson Chemicals' understanding of the "bad apple" concept of
improving the ethical conduct of salespeople?
a.
Publishing ethical guidelines for salespeople
b.
Firing unethical salespeople
c.
Retraining unethical salespeople
d.
Using customers to review ethical guidelines
e.
Scrutinizing top management's conduct
94. It is possible to improve ethical behavior in an organization by
a.
changing the employees' individual moral philosophies.
b.
increasing legislation aimed at unethical practices.
c.
decentralizing authority and responsibilities in the firm.
d.
offering ethics awareness training for managers and professionals in the organization.
e.
improving the organization's ethical standards and eliminating unethical persons.
95. ____ are formalized rules and standards that describe what a company expects of its employees in terms of ethical
behavior.
a.
Job descriptions
b.
Ethics clauses
c.
Behavior contracts
d.
Codes of conduct
e.
Ethics contracts
96. Codes of conduct are also frequently known as
a.
ethics mandates.
b.
codes of ethics.
c.
corporate culture.
d.
ethics compliance programs.
e.
moral codes.
97. Which of the following statements about codes of conduct is true?
a.
All publicly-traded companies have formal codes of conduct.
b.
Most large corporations have formal codes of conduct.
c.
Codes of conduct are unnecessary for small- and medium-sized companies.
d.
Approximately half of large companies have formal codes of conduct.
e.
Very few companies have formal codes of conduct, but most have informal codes.
98. Which one of the following statements about codes of conduct (ethics) is false?
a.
They are formalized rules and standards that describe what a company expects of its employees.
b.
They must be detailed enough to take into account many possible situations.
c.
They encourage ethical behavior by eliminating opportunities for unethical behavior because employees know
what is expected of them.
d.
They help marketers deal with marketing issues by prescribing and limiting certain activities.
e.
Top management must provide leadership in implementing codes of ethics.
99. Priya knows that her company has a formal code of conduct, but she does not see this code being equally and
consistently applied to all employees. Priya believes that this sporadic enforcement of the formal code only enhances the
____ for committing unethical acts.
a.
opportunity
b.
culture
c.
individual factors
d.
compliance
e.
punishment
100. Which of the following statements about implementing an ethics and legal compliance program is false?
a.
It requires open communication.
b.
It requires consistent enforcement of standards from the code of conduct.
c.
It rarely needs to be revised.
d.
It requires taking reasonable steps in response to violations of standards.
e.
It helps create a buffer zone on issues that could trigger serious legal complications for the company.
101. What is the major difference between social responsibility and marketing ethics?
a.
Marketing ethics varies by industry whereas social responsibility involves universal rules of conduct.
b.
There is legislation that deals with marketing ethics, but none for socially responsible practices.
c.
Marketing ethics is concerned with organizational practices, and social responsibility is concerned with
individual behavior.
d.
There is no difference; they are synonymous terms.
e.
Social responsibility deals with the total effect of marketing decisions on society, whereas marketing ethics
relates to individual and group evaluations in marketing situations.
102. Which of the following statements is false?
a.
If an ethical or social responsibility issue can withstand open discussion that results in agreement or limited
debate, an acceptable solution may exist.
b.
A company that supports both socially responsible decisions and adheres to a code of conduct is likely to have
a positive impact on society.
c.
If other persons in the organization approve of an activity and it is legal and customary within the industry,
chances are that the activity is acceptable from both an ethical and social responsibility perspective.
d.
Social responsibility and marketing ethics are interrelated.
e.
Social responsibility and marketing ethics are the same thing and can be used interchangeably.
103. In a meeting with key personnel, Watson Corporation's president speaks to the firm's managers about social
responsibility in business today. He suggests that the key to being socially responsible is to
a.
watch profit impacts very carefully.
b.
maintain an updated code of ethics.
c.
monitor changes and trends in society's values.
d.
carefully interpret all new legislation.
e.
stay with present programs over the long run.
104. In a classroom discussion, Jacob agrees with Marcie that consumers generally want biodegradable beverage cups.
However, he says that businesses in that industry must evaluate whether
a.
they can be produced.
b.
consumers are willing to pay higher prices for them.
c.
the competition will ever make them.
d.
stores will stock them.
e.
they can be effectively promoted.
105. Companies that incorporate ethics and social responsibility into their strategic plans are likely to experience
a.
improved marketing performance.
b.
increased lawsuits.
c.
negative publicity.
d.
reduced costs.
e.
disappointed shareholders.
106. Scenario 4.1
Use the following to answer the questions.
Hershey Foods was founded in the nineteenth century by Milton Hershey, who had a strong ethical value system⎯always
show integrity, be honest, and respect others. Hershey felt it was important to provide high-quality goods and services of
real value at competitive prices that provide an adequate return on investment. He also founded the Milton Hershey
School, operating today as a cost-free, private home and school dedicated to helping children with social needs and
limited resources. The company also focuses on environmental issues, such as reducing waste by 360,000 pounds
annually by redesigning Hershey's Syrup caps. Hershey Foods has an ethics compliance program that includes a code of
ethics and training, guidelines for handling legal and ethical issues, an 800 number for assistance with ethical issues, and
support from supervisors and human resource managers in dealing with ethical issues. However, in the last few years,
Hershey has been criticized by several advocacy groups concerning the sourcing of its chocolate from West Africa where
many of the companies use child labor. While Hershey is the largest chocolate candy producer in America, it lags behind
other major chocolate producers with regard to certifying its chocolate as child labor-free.
Refer to Scenario 4.1. Milton Hershey contributed resources to the community to improve the overall quality of life for
consumers, employees, and the community in general. This reflected his ____ responsibility.
a.
philanthropic
b.
ethical
c.
legal
d.
economic
e.
shareholder
107. Scenario 4.1
Use the following to answer the questions.
Hershey Foods was founded in the nineteenth century by Milton Hershey, who had a strong ethical value system⎯always
show integrity, be honest, and respect others. Hershey felt it was important to provide high-quality goods and services of
real value at competitive prices that provide an adequate return on investment. He also founded the Milton Hershey
School, operating today as a cost-free, private home and school dedicated to helping children with social needs and
limited resources. The company also focuses on environmental issues, such as reducing waste by 360,000 pounds
annually by redesigning Hershey's Syrup caps. Hershey Foods has an ethics compliance program that includes a code of
ethics and training, guidelines for handling legal and ethical issues, an 800 number for assistance with ethical issues, and
support from supervisors and human resource managers in dealing with ethical issues. However, in the last few years,
Hershey has been criticized by several advocacy groups concerning the sourcing of its chocolate from West Africa where
many of the companies use child labor. While Hershey is the largest chocolate candy producer in America, it lags behind
other major chocolate producers with regard to certifying its chocolate as child labor-free.
Refer to Scenario 4.1. The fact that the Hershey company has recently reduced its waste by 360,000 pounds through a
packaging redesign is evidence of its focus on
a.
a philanthropic culture.
b.
an ethical culture.
c.
social responsibility.
d.
the legal climate.
e.
the economic environment.
108. Scenario 4.1
Use the following to answer the questions.
Hershey Foods was founded in the nineteenth century by Milton Hershey, who had a strong ethical value system⎯always
show integrity, be honest, and respect others. Hershey felt it was important to provide high-quality goods and services of
real value at competitive prices that provide an adequate return on investment. He also founded the Milton Hershey
School, operating today as a cost-free, private home and school dedicated to helping children with social needs and
limited resources. The company also focuses on environmental issues, such as reducing waste by 360,000 pounds
annually by redesigning Hershey's Syrup caps. Hershey Foods has an ethics compliance program that includes a code of
ethics and training, guidelines for handling legal and ethical issues, an 800 number for assistance with ethical issues, and
support from supervisors and human resource managers in dealing with ethical issues. However, in the last few years,
Hershey has been criticized by several advocacy groups concerning the sourcing of its chocolate from West Africa where
many of the companies use child labor. While Hershey is the largest chocolate candy producer in America, it lags behind
other major chocolate producers with regard to certifying its chocolate as child labor-free.
Refer to Scenario 4.1. The criticism of Hershey’s sourcing for chocolate is an example of ____, while the potential use of
child labor to produce Hershey products impacts its level of commitment to ______.
a.
consumerism; organizational culture
b.
ethics; social responsibility
c.
shareholder orientation; social responsibility
d.
ethical climate; ethics
e.
consumerism; sustainability practices
109. Scenario 4.1
Use the following to answer the questions.
Hershey Foods was founded in the nineteenth century by Milton Hershey, who had a strong ethical value system⎯always
show integrity, be honest, and respect others. Hershey felt it was important to provide high-quality goods and services of
real value at competitive prices that provide an adequate return on investment. He also founded the Milton Hershey
School, operating today as a cost-free, private home and school dedicated to helping children with social needs and
limited resources. The company also focuses on environmental issues, such as reducing waste by 360,000 pounds
annually by redesigning Hershey's Syrup caps. Hershey Foods has an ethics compliance program that includes a code of
ethics and training, guidelines for handling legal and ethical issues, an 800 number for assistance with ethical issues, and
support from supervisors and human resource managers in dealing with ethical issues. However, in the last few years,
Hershey has been criticized by several advocacy groups concerning the sourcing of its chocolate from West Africa where
many of the companies use child labor. While Hershey is the largest chocolate candy producer in America, it lags behind
other major chocolate producers with regard to certifying its chocolate as child labor-free.
Refer to Scenario 4.1. Hershey and its employees benefit in many ways from its strong ethics compliance program. Which
of the following is not one of the benefits of such a program?
a.
Enforcement and discipline of ethical infractions
b.
Better employee understanding of ethical issues
c.
Free-flowing communication within the firm regarding ethical issues
d.
Costly programs to develop and maintain
e.
High level of organizational guidance for employees
110. Scenario 4.2
Use the following to answer the questions.
WhiteWave Foods, producer of brands such as Silk Soymilk, specializes in manufacturing innovative and nutritious food
products. Silk Soymilk was first launched in 1996, and is committed to the health of its customers, as well as the health of
the planet. At Silk, they have offset all of their energy consumption with wind power, preventing over 16,000 tons of
greenhouse gasses from entering the atmosphere each year. Silk Soymilk is made from a mixture of organic and natural,
non-genetically modified soy beans, reducing the amount of pesticides in the air, soil, and water. Since 2002 they have
been sponsoring the FarmAid concert, whose mission is to is to keep family farmers on their land and ensure a safe,
healthy food supply for all Americans.
Refer to Scenario 4.2. Silk Soymilk's sponsorship of the FarmAid concert is best thought of as an example of its
a.
cause-related marketing effort.
b.
ethical responsibility.
c.
green marketing strategy.
d.
philanthropic activities.
e.
environmental strategy.
