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111. 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 use of organic, non-genetically modified soybeans in its product is an example of
a.
green marketing.
b.
social consciousness.
c.
ethical responsibility.
d.
cause-related marketing.
e.
corporate benevolence.
112. 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. The use of wind power to offset energy consumption by Silk Soymilk's parent company
demonstrates its commitment to
a.
consumerism.
b.
ethical marketing.
c.
social responsibility.
d.
philanthropic strategy.
e.
environmental marketing.
113. 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 parent company, WhiteWave Foods, is currently operating at the ____ level of the
social responsibility pyramid.
a.
economic
b.
philanthropic
c.
ethical
d.
legal
e.
cause-related
114. An organization's obligation to maximize its positive impact and minimize its negative impact on society is known as
social accountability.
a.
True
b.
False
115. Social responsibility is an organization's obligation to maximize its positive impact and minimize its negative impact
on society.
a.
True
b.
False
116. Marketing citizenship refers to an organization's obligation to maximize its positive impact and minimize its negative
impact on society.
a.
True
b.
False
117. Four dimensions of social responsibility are economic, legal, ethical, and philanthropic.
a.
True
b.
False
118. At the most basic level of marketing citizenship, marketers have an obligation to contribute funds to philanthropic
causes.
a.
True
b.
False
119. Marketing ethics refers to principles and standards that define acceptable conduct in marketing.
a.
True
b.
False
120. Cause-related marketing refers to the specific development, pricing, promotion, and distribution of products that do
not harm the natural environment.
a.
True
b.
False
121. Strategic philanthropy involves linking a firm's products to a particular social cause on a sort-term basis.
a.
True
b.
False
122. Under President Kennedy's consumer bill of rights, consumers must have access and opportunity to review all
relevant information about a product before buying it.
a.
True
b.
False
123. The right to be informed means that consumers should be treated fairly when they complain to marketers about their
products.
a.
True
b.
False
124. Marketers' contributions of resources to community causes such as education, recreation, and others illustrate social
responsibility on a community-relations level.
a.
True
b.
False
125. When marketing activities deviate from accepted standards, the exchange process can break down, resulting in
customer dissatisfaction, lack of trust, and lawsuits.
a.
True
b.
False
126. According to research, only a small percentage of consumers have a more positive opinion of an organization when it
supports causes they care about.
a.
True
b.
False
127. It is easy to distinguish between legal and ethical issues.
a.
True
b.
False
128. Marketing ethics goes beyond legal issues, although ethical disputes must sometimes be resolved in court.
a.
True
b.
False
129. An ethical issue is an identifiable problem, situation, or opportunity requiring an individual to choose from among
several actions that must be evaluated as right or wrong.
a.
True
b.
False
130. Any time an activity causes managers or consumers to feel manipulated or cheated, a marketing ethics issue exists,
regardless of the legality of that activity.
a.
True
b.
False
131. A marketer's failure to inform customers about changes in the quality of its products does not constitute an ethical
issue.
a.
True
b.
False
132. Pressures to substitute inferior materials to reduce costs may result in product-related issues.
a.
True
b.
False
133. A bribe offered to benefit an organization is generally considered acceptable.
a.
True
b.
False
134. Bribery is a pricing-related ethical issue.
a.
True
b.
False
135. Price fixing, predatory pricing, and failure to disclose the full price associated with a purchase are pricing activities
that do not result in ethical issues.
a.
True
b.
False
136. Manipulating a product's availability for purposes of exploitation and forcing intermediaries to behave in a specific
manner are ethical issues in distribution.
a.
True
b.
False
137. Three important factors that influence ethical decisions in marketing are individual factors, organizational factors,
and opportunity.
a.
True
b.
False
138. People learn values and principles through socialization by family members, social groups, religion, and formal
education.
a.
True
b.
False
139. Employees, coworkers, or superiors do not influence the ethical decision-making process.
a.
True
b.
False
140. Top management sets the ethical tone for the entire organization.
a.
True
b.
False
141. The more a person is exposed to unethical activity in the organizational environment, the more likely it is that he or
she will behave unethically.
a.
True
b.
False
142. Opportunity is a favorable set of conditions that limit barriers or provide rewards.
a.
True
b.
False
143. If a person is rewarded for developing a deceptive advertisement, he or she probably will not engage in such
behavior in the future.
a.
True
b.
False
144. It is possible to improve ethical behavior in an organization by eliminating unethical persons and improving the
organization's ethical standards.
a.
True
b.
False
145. An organization can rid itself of "bad apples" through screening techniques and enforcement of its code of conduct.
a.
True
b.
False
146. Codes of conduct (ethics) are formalized rules and standards that describe what the company expects of its
employees in terms of ethical behavior.
a.
True
b.
False
147. Codes of conduct (ethics) must be detailed enough to take every situation into account.
a.
True
b.
False
148. Employees can easily determine what behavior is acceptable even in organizations that do not have ethics
compliance programs and policies on conduct.
a.
True
b.
False
149. Companies should promote individuals prone to misconduct to management positions.
a.
True
b.
False
150. Open communication and coaching on ethical issues are essential to nurturing ethical conduct in marketing.
a.
True
b.
False
151. It is not important to consistently enforce standards and impose penalties or punishment on those who violate codes
of conduct.
a.
True
b.
False
152. Marketing ethics and social responsibility mean the same thing.
a.
True
b.
False
153. Marketing ethics concerns the impact of an organization's decisions on society, whereas social responsibility relates
to individual decisions.
a.
True
b.
False
154. Marketing ethics relates to individual and group evaluations about what is right or wrong in a particular marketing
decision-making situation; social responsibility deals with the total impact of marketing decisions on society.
a.
True
b.
False
155. If other persons within an organization approve of an activity and the activity is legal but not customary in the
industry, the activity is probably both ethical and socially responsible.
a.
True
b.
False
156. To resolve a social responsibility issue, it is helpful to check with concerned consumer groups and industry or
specific company policy regarding the activity.
a.
True
b.
False
157. Although openness is not the solution to ethics issues, it does create trust and facilitates learning relationships.
a.
True
b.
False
158. If an ethical (or social responsibility) issue can withstand open discussion and result in agreements or limited debate,
it is not really an ethical (or social responsibility) issue.
a.
True
b.
False
159. There are few costs associated with being socially responsible and satisfying society's demands.
a.
True
b.
False
160. There is no evidence that being socially responsible and ethical is worthwhile.
a.
True
b.
False
161. The Ben & Jerry’s Foundation mission statement reads as follows:
“The mission of the Ben & Jerry’s Foundation is to engage Ben & Jerry’s employees to give back to our Vermont
communities; and to support grassroots activism and community organizing for social and environmental justice around
the county.”
Which one of the following statements most closely describes the social responsibility role of the Ben & Jerry’s
Foundation?
a.
It is an example of the ethical dimension of social responsibility.
b.
It is an example of the philanthropic dimension of social responsibility.
c.
It is an example of the economic dimension of social responsibility.
d.
It is an example of the legal dimension of social responsibility.
e.
It is an example of the political dimension of social responsibility.
162. The Reputation Institute rates the social responsibility of the largest global corporations in the world. They assign a
proprietary CSR rating to each company based surveys of 47,000 consumers worldwide.
In a recent annual ranking, Microsoft Corporation was ranked #1 for social responsibility. Regarding the ranking, the
following is a quote from Microsoft’s Senior Director of Citizenship and Public Affairs:
“I think this is really a testament to our employees worldwide and the difference they make in their local communities.
While we have a small Citizenship team here at the corporate level, we have Citizenship Leads across the globe and they
work daily in collaboration with a wide range of stakeholders on a range of issues important to local communities.”
Which of the following terms best describes Microsoft’s approach to corporate social responsibility?
a.
Marketing citizenship
b.
Cause-related marketing
c.
Stakeholder orientation
d.
Strategic philanthropy
e.
Consumerism
163. One of the most significant principles of business is that the primary objective of the executive management of a
corporate entity is to engage in strategic actions that increase shareholder value.
If we think of this objective in terms of the four dimensions of social responsibility, it would be part of the
a.
Philanthropic dimension
b.
Ethical dimension
c.
Legal dimension
d.
Economic dimension
e.
Marketing dimension
164. The Federal Drug Administration (FDA) has established the following requirements relating to the ingredients
labelling on food products:
• Labels must be placed on the product in a location most likely to be seen by the consumer.
• Labels must include quantity of and type of ingredients included in the food product.
• Labels must be printed in a specific font size.
Regarding these requirements, which one of the following statements is correct?
a.
This is an example of marketing ethics as determined by a government regulator.
b.
This is an example of marketing ethics as determined by a private-interest group.
c.
The primary objective of these requirements is to enhance competition in the marketplace.
d.
The primary objective of these requirements is make food packaging educational.
e.
The primary objective of these requirements is to assist consumers with their recipes.
165. The Federal Trade Commission (FTC) is an organization that plays a significant role in defining the principles and
standards that define acceptable conduct in the marketing, promotion and advertising of products and services in the
United States.
Which one of the following statements is true about the organization?
a.
It is an industry-sponsored organization.
b.
Its primary mission is to protect consumers and promote competition.
c.
It is part of the judicial branch of the federal government.
d.
It protects consumers by stopping unfair, deceptive or fraudulent practices in the job market.
e.
It has the power and authority to directly enforce its rulings.
166. Marketers resolve ethical issues based on their experiences and what they learn from others in the organization. The
outcome of this learning process depends upon _____________________, opportunity for unethical behavior, and
exposure to others who behave ethically or unethically.
This is an example of
a.
their educational training
b.
their level in the organization
c.
their incentive plan
d.
the strength of personal values
e.
the monetary factors that influence ethical decision making
167. Critics of the financial services industry, and Wall Street in particular, argue that a major cause of the financial crisis
of 2008 was the flawed compensation and incentive structure that exists in the industry. They argue that this incentive
structure encourages and often rewards unethical behavior by professionals in the industry.
This is an example of
a.
the individual factors that influence ethical decision making.
b.
the organizational relationship factors that influence ethical decision making
c.
the opportunity factors that influence ethical decision making
d.
the environmental factors that influence ethical decision making
e.
the social factors that influence ethical decision making.
168. You are a member of the North American region’s sales team at a major technology company in New Haven,
Connecticut. It is yearend, and there is a mad rush going on to make sure sales targets are met. One of your team members
suggests to you that he can quickly boost his sales numbers by calling a friend and asking him put through an order today,
then cancel the order next week before it ships.
You question whether this is ethical, but you need to hit your numbers for the month so you go along with the tactic any
way.
This is an example of
a.
the individual factors that influence ethical decision making.
b.
the organizational relationship factors that influence ethical decision making
c.
the opportunity factors that influence ethical decision making
d.
the environmental factors that influence ethical decision making
e.
the social factors that influence ethical decision making.
169. ________________ promote ethical behavior by reducing opportunities for unethical behavior; employees know
what is expected of them and what kind of punishment waits if rules are violated.
a.
Mission statements
b.
Corporate objectives
c.
Human resources policies
d.
Codes of conduct
e.
Compensation plans
170. The Board of Directors of a company is responsible for determining, articulating and communicating the values and
standards of the business, and for ensuring that the policies, procedures and controls in place act to support, rather than
hinder, ethical values throughout the business.
Which one of the following corporate elements and characteristics can the Board of Directors influence the most to ensure
that the organization has an ethical culture?
a.
Individual factors
b.
Personal values
c.
Employee integrity
d.
Individual beliefs
e.
Procedures and controls for oversight
171. A _______________ orientation helps to redefine the marketers’ focus by encouraging them to broadly considering
those entities most impacted by the marketers’ actions. Those entities include; employees, suppliers, regulators,
shareholders, customers, and the community.
a.
shareholder value
b.
profit
c.
market
d.
stakeholder
e.
compliance
172. A recent business news publication ran an article titled, “Starbucks Brews a Win-Win for Baristas, Employers”. The
article discussed recent initiatives implemented by the company that are proving to be very positive for the company and
the baristas working in its coffee shops.
This article is an example of
a.
cause-related marketing.
b.
the firm taking a stakeholder view with its initiatives.
c.
strategic philanthropy.
d.
marketing citizenship.
e.
consumerism.
