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1. Define and describe the importance of social responsibility in marketing.
2. Define marketing citizenship and describe the impact of its dimensions on organizations.
3. Provide an overview of important social responsibility issues in marketing, and indicate their impact on marketing
decisions.
4. Discuss the difference between social responsibility, ethics, and sustainability in marketing.
5. Describe the factors that influence the ethical decision-making process and identify ways to improve ethical decisions
in marketing.
6. Discuss some of the important ethical issues in marketing.
7. How can a code of conduct encourage ethical behavior in an organization?
8. What are some ways to determine if an activity is ethical or socially responsible?
9. Which of the following statements about social responsibility is correct?
a.
Social responsibility dimensions do not include philanthropic concerns.
b.
Social responsibility does not deal with the total effect of all marketing decisions on society.
c.
Social responsibility refers to a company's obligation to maximize its positive impact and minimize its
negative impact on society.
d.
Social responsibility dimensions do not include economic concerns.
e.
Social responsibility refers to principles and standards that define acceptable conduct in marketing as
determined by various stakeholders.
10. If Hefty Bags expresses concern that its products are having too great an impact on the pollution of ground water
under landfills, this concern is directly related to the firm's
a.
social responsibility.
b.
marketing concept.
c.
legal responsibility.
d.
ethical responsibility.
e.
corporate benevolence.
11. Honeybees are disappearing at an alarming rate and since they pollinate about a third of all foods we eat, it is an
important concern. That’s why Haagen-Dazs launched a microsite to increase the awareness of the issue. In addition, it
launched a “Twitcause” campaign on Twitter, raising $7,000 in 2 days. This example illustrates the positive consequences
of
a.
social responsibility.
b.
corporate benevolence.
c.
green marketing.
d.
ethical responsibility.
e.
economic responsibility.
12. Socially responsible business practices have provided all of the following benefits except
a.
creating goodwill toward the organization.
b.
attracting employees.
c.
reducing marketing costs.
d.
generating publicity for the firm.
e.
positively impacting local communities.
13. The adoption of a strategic focus for fulfilling the economic, legal, ethical, and philanthropic social responsibilities
expected by stakeholders is called
a.
marketing citizenship.
b.
social responsibility.
c.
stakeholders.
d.
cause-related marketing.
e.
strategic philanthropy.
14. One way in which marketers can demonstrate social responsibility is through programs in sustainability. Which of the
following is not included as a goal of sustainability?
a.
long-term well-being of the natural environment
b.
focus primarily on the external environment of the company
c.
consider individuals as part of the natural environment
d.
adopting more eco-friendly business practices
e.
improving technologies that protect the natural environment
15. Any constituent who has a claim in some aspect of a company's products, operations, markets, industry, or outcomes
is known as a(n)
a.
shareholder.
b.
customer.
c.
employee.
d.
manager.
e.
stakeholder.
16. Companies that are considered to be good corporate citizens and consider the diverse perspectives of different groups
affected by their operations are said to have a ____ orientation.
a.
marketing
b.
sales
c.
production
d.
stakeholder
e.
citizen
17. Which of the following is not a dimension of social responsibility and marketing citizenship?
a.
Economic
b.
Ethical
c.
Legal
d.
Technological
e.
Philanthropic
18. Which of the following is not one of the four dimensions of social responsibility presented in your text?
a.
Consumerism
b.
Philanthropic
c.
Ethical
d.
Economic
e.
Legal
19. Kaitlyn understands that even small businesses like her local catering business have certain responsibilities to society.
She knows that she must abide by the laws that apply to her business and try to make a profit. What are the other
obligations Kaitlyn should know?
a.
Ethical and moral
b.
Economic and ethical
c.
Philanthropic and legal
d.
Environmental and ethical
e.
Ethical and philanthropic
20. The RedCap Corporation is committed to social responsibility. It is looking for a new shipping partner and has found
LogiSpec, one that seems to be perfect since it employs individuals with disabilities, contributes a portion of profit to the
local school system, and allows its employees to work on flex-time. RedCap is very interested in LogiSpec’s attention to
social responsibility. However, its pricing is almost 12% higher than other shippers RedCap is considering. The fact that
RedCaps’ decision has to balance the company’s desire for social responsibility and investors' desires for profits is an
example of a(n) ____ responsibility.
a.
ethical
b.
legal
c.
cost
d.
philanthropic
e.
economic
21. All companies have a responsibility to ____ so they can provide a return on investment to their owners and investors,
create jobs for the community, and contribute goods and services to the economy.
a.
offer the lowest price
b.
be profitable
c.
obey their customers
d.
provide the largest selection possible
e.
pay employees more than minimum wage
22. As a firm fulfills its basic economic responsibilities, it must simultaneously
a.
treat its employees equitably.
b.
follow a code of business ethics.
c.
utilize green marketing techniques.
d.
have a philanthropic focus.
e.
obey laws and regulations.
23. DoneRight Inc. is a very profitable automobile repair shop. The company is well known for its great service and
involvement in the community, but it fails to properly dispose of its used oil as outlined in environmental regulations.
DoneRight is failing in its ____ responsibilities.
a.
legal
b.
ethical
c.
economic
d.
philanthropic
e.
strategic
24. According to the text, marketing ethics refers to principles and standards that define
a.
improper behavior in marketing.
b.
acceptable conduct in society.
c.
improper behavior in business.
d.
acceptable conduct in marketing.
e.
acceptable conduct in general.
25. Marketing ethics
a.
refers to laws and regulations that govern marketing.
b.
refers to principles and standards that define acceptable conduct in marketing.
c.
maximizes an organization's positive impact and minimizes its negative impact on society.
d.
is most important for advertising agencies.
e.
applies well-defined rules for appropriate marketing behavior.
26. The most basic principles of marketing ethics are
a.
philanthropic responsibilities.
b.
economic responsibilities.
c.
universally accepted behaviors.
d.
written as laws and regulations.
e.
included in the marketing code of ethics.
27. A business that contributes resources to the community to improve the quality of life is taking on a(n) ____
responsibility.
a.
ethical
b.
legal
c.
cost
d.
philanthropic
e.
economic
28. McDonald's supports and funds Ronald McDonald houses for the families of terminally-ill children to stay in to be
near their loved ones. McDonald's action demonstrates the fulfillment of ____ responsibility.
a.
legal
b.
society
c.
philanthropic
d.
economic
e.
ethical
29. The Transportation Division of the GE Corporation is located in a small city which has limited economic growth at
this time. Due to the condition of the local school system, GE contributed $2 million to repair and revive it, stating that
GE believed in education for the community. This action would imply that GE is in which level of the pyramid of social
responsibility?
a.
ethical
b.
legal
c.
cost
d.
philanthropic
e.
economic
30. Actions that promote human health and welfare address the ____ dimension of the pyramid of social responsibility.
a.
philanthropic
b.
legal
c.
ethical
d.
economic
e.
social
31. The practice of linking a firm's product marketing to a particular social cause on an ongoing or short-term basis is
known as
a.
economic responsibility.
b.
social responsibility.
c.
ethical marketing.
d.
cause-related marketing.
e.
corporate benevolence.
32. If Starbucks were to donate 5 percent of every coffee purchase to shelters for victims of domestic abuse for one
month, this would be an example of
a.
strategic philanthropy.
b.
ethical responsibility.
c.
economic responsibility.
d.
green marketing.
e.
cause-related marketing.
33. Home Depot’s synergistic use of organizational core competencies and resources to address key stakeholders’
interests and achieve both social initiatives and its business goals is an example of
a.
strategic philanthropy.
b.
strategic ethics.
c.
cause-related marketing.
d.
strategic marketing.
e.
environmental philanthropy.
34. Which of the following is a primary difference between cause-related marketing and strategic philanthropy?
a.
Cause-related marketing is short term only while strategic philanthropy is an ongoing approach that lasts for
years or even decades.
b.
Strategic philanthropy fulfills a firm's primary social responsibilities while cause-related marketing does not.
c.
Cause-related marketing is unlikely to have a positive effect on society while strategic philanthropy always
benefits society.
d.
Strategic philanthropy can take on both a financial and nonfinancial format while cause-related marketing only
involves financial contributions.
e.
Customers are likely to feel good about themselves when supporting a cause-related marketing campaign but
are unlikely to notice strategic philanthropy.
35. Which of the following is the best example of strategic philanthropy for Staples, the large office supply chain?
a.
Donating money to help fight illiteracy of both adults and children
b.
Having employees volunteer at a charity of their choice two hours a week
c.
Giving a portion of its profits in August to support charter schools
d.
Offering discounts to large corporations on their office supplies
e.
Providing low-income families with school supplies and computer training
36. L’Oreal, a manufacturer of personal care and beauty products has a focus on sustainability. It has developed eco-
packaging, eliminated many potentially harmful chemicals from its products, and has improved its production systems to
reduce waste. What major social responsibility issue is L’Oreal addressing?
a.
The natural environment
b.
Consumerism
c.
Marketing ethics
d.
Legal obligations
e.
Community relations
37. StarKist Tuna has frequently extolled its dolphin-safe methods of catching tuna. This is an example of
a.
community relations.
b.
cause-related marketing
c.
sustainability marketing.
d.
strategic philanthropy.
e.
consumerism.
38. In Europe, companies can voluntarily apply for a designation to indicate that their product is less harmful to the
environment than competing products. This label is known as the
a.
Green Marketing Stamp.
b.
Eco-label.
c.
Forest Stewardship Seal.
d.
Better Product Project.
e.
Good Housekeeping Seal.
39. Which of the following is not one of the four objectives that environmentalists believe companies should implement in
order to sustain the natural environment?
a.
Eliminate the concept of waste.
b.
Reinvent the concept of a product.
c.
Force consumers to recycle products.
d.
Make prices reflect the true cost of a product.
e.
Make environmentalism profitable.
40. Instead of addressing the question ____, many environmentalists and marketers believe the question should be ____.
a.
"How can we reduce costs?"; "How can we keep prices low?"
b.
"Where should we dispose of waste?"; "How can we protect society?"
c.
"How can we make products better?"; "How can we reduce waste?"
d.
"How can environmentalism be profitable?"; "Where is the benefit of environmental efforts?"
e.
"What should we do with our waste?"; "How can we produce products without waste?"
41. According to some environmentalists, what are the three types of products that all products should be reduced to?
a.
Durable goods, natural resources, and unsalables
b.
Nondurable goods, durable goods, and consumables
c.
Consumables, durable goods, and unsalables
d.
Environmental goods, recyclables, and salables
e.
Permanents, temporaries, and renewable resources
42. Raleigh Wood Products produces hardwood flooring, paneling, and other furniture-grade components. Raleigh Wood
traditionally has ground up its wood waste to make mulch, however, it has been brought to Raleigh’s attention that there
are chemicals from the paint and coloring process that may be harmful to the water table. Raleigh has now been looking
for ways to use its wood waste other than in mulch. Environmentalists would likely
a.
appreciate that Raleigh Wood uses its leftover product, but rather they find a way to reduce waste altogether.
b.
encourage Raleigh Wood to find another process for coloring and painting.
c.
encourage the local government to levy a tax on Raleigh Wood for its contamination of the water system.
d.
lobby against Raleigh Wood for its wasteful practices.
e.
encourage Raleigh Wood to find materials other than wood for its products.
43. As far as prices are concerned, environmentalists believe prices should
a.
be based on the cost of materials used to manufacture the product.
b.
reflect the direct cost as well as the cost of air, water, and soil used.
c.
be determined by the supply and demand of products in the marketplace.
d.
include a large tax to defray the costs of environmental compliance.
e.
be based on the renewability of the resources used to make the product.
44. What do environmentalists set as an objective for profitability?
a.
Companies should surpass the strictest environmental standards even if it negatively affects profitability.
b.
Companies will never be profitable if they comply with environmental standards so taxpayers must subsidize
all production.
c.
Profitability should not be a concern when addressing issues of environmental importance.
d.
Environmentalism should be made profitable, and companies attempting to protect the environment should not
have to compete with those harming it in the marketplace.
e.
Companies will be more profitable if they work hard to protect the environment because consumers will
reward their efforts through loyalty.
45. Synergy Tech has a program that offers consumers money back for their old Synergy computers so that the materials
used to make the computer can be retained within a closed system. Which of the primary environmental goals does
Synergy's program address?
a.
Eliminate the concept of waste.
b.
Reinvent the concept of a product.
c.
Make environmentalism profitable.
d.
Make prices reflect the cost.
e.
Create fewer durable goods.
46. Consumerism is
a.
the efforts of independent individuals, groups, and organizations to protect the rights of consumers.
b.
President John F. Kennedy's consumer bill of rights.
c.
marketers' efforts to contribute to the satisfaction and growth of the communities in which they operate.
d.
the right to be informed.
e.
the specific development, pricing, promotion, and distribution of products that do not harm the environment.
47. Angela organized a boycott of a local restaurant because of the owner's obvious prejudicial treatment of Hispanics.
Angela's action would most likely be called
a.
lobbying.
b.
a public service announcement.
c.
the right to be informed.
d.
a social demonstration.
e.
consumerism.
48. Several mothers in Atlanta wanted to get the message to their city government that they were not happy with the
nutritional quality of the food the city’s school system served their children, especially at the current cost for a lunch. One
of the mothers suggested they organize a protest at City Hall to get the lawmakers’ attention. Another mother in the group
suggested they all use their smart phones to go on Twitter and let others know the time and date of the protest. This small
group was surprised at the number of other parents who were equally concerned about the food program, and so this small
group decided to organize a flash mob. Over two hundred people showed up in a flash mob in front of City Hall - many of
them with signs and banners. These mothers and other individuals are engaging in
a.
a publicity stunt.
b.
their right to know.
c.
consumerism.
d.
lobbying.
e.
political action.
49. Who of the following is a famous consumer activist?
a.
Ralph Nader
b.
Upton Sinclair
c.
Benjamin Franklin
d.
Abraham Maslow
e.
Adam Smith
50. Who drafted the Consumer Bill of Rights?
a.
Bill Clinton
b.
John F. Kennedy
c.
Ralph Nader
d.
Ronald Reagan
e.
George W. Bush
51. The four basic rights outlined in the Consumer Bill of Rights include the right to safety, the right to be heard, the right
to
a.
inform, and the right be chosen.
b.
consumer education, and the right to honesty.
c.
choose, and the right to be informed.
d.
redress, and the right to choose.
e.
honesty, and the right to redress.
52. Product testing for reliability and quality helps to ensure a consumer's right to
a.
be heard.
b.
be informed.
c.
choose.
d.
performance.
e.
safety.
53. Warnings on television commercials for prescription drugs include a list of sometimes grotesque side effects that are
possible when taking that particular drug. The consumer right to ____ most applies to these commercials.
a.
know
b.
safety
c.
be heard
d.
choose
e.
be informed
54. According to President Kennedy's consumer bill of rights, the right to choose 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 products 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 able to buy products at prices they are willing to pay.
55. Sharese wants to buy a new couch, but there is only one place in her town that sells them, and she lives in an isolated
area. Sharese most likely feels her consumer right to ____ has been violated.
a.
choose
b.
be heard
c.
safety
d.
recourse
e.
be informed
56. According to the consumer bill of rights, the idea that consumers' interests should receive full and sympathetic
consideration in the formulation of government policy is known as the right to
a.
be heard.
b.
choose.
c.
be informed.
d.
safety.
e.
listen.
57. How would marketers most likely benefit from the consumer's right to be heard?
a.
Consumers will also tell others about their bad experience with the company.
b.
The company can use the information to make its products better.
c.
They gain valuable information about their competitors.
d.
Consumers are more loyal to companies who have wronged them.
