978-1259709074 Chapter 4 Solutions Manual

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Chapter 4 – Conscious Marketing, Corporate Social Responsibility, and Ethics Marketing 6th

Answers to End of Chapter Learning Aids

Marketing Digitally

1 Perhaps no subdiscipline of marketing receives more scrutiny regarding ethical compliance

than direct marketing, a form of nonstore retailing in which customers are exposed to and

purchase merchandise or services through an impersonal medium such as telephone, mail, or

the Internet. Ethical issues in direct marketing cover a broad spectrum because this means of

selling is conducted through all forms of communication. The Direct Marketing Association

(DMA) takes ethics very seriously and has numerous programs to ensure its member

organizations comply with its Code of Ethics. Go to the website for the DMA (http://www.

the-dma.org/). Click on “Advocacy.” List the different ways that the DMA is involved in

assisting consumers and the industry to create a more ethical marketplace.

Although student responses will vary, it should be clear from everyone’s search results that the DMA

1 An increasing number of firms are stating their strong commitment to corporate social

responsibility initiatives. The Corporate Social Responsibility Newswire Service keeps

track of these various initiatives and posts stories on its website about what various

corporations are doing. Go to http://www.csrwire.com/ and choose one story. Write a

description of the corporation and the initiative.

Marketing Applications

1 Distinguish among conscious marketing, CSR, and marketing ethics.

Conscious marketing is an approach to marketing that acknowledges four key principles: a higher

2 Develop an argument for why a cosmetics manufacturer should build and maintain an

ethical climate.

3 A clothing company gives generously to charities and sponsors donation drives to help

lower-income teen girls get reasonably priced prom dresses. It also locates its

manufacturing plants in countries with few labor laws, such that it does not know whether

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Chapter 4 – Conscious Marketing, Corporate Social Responsibility, and Ethics Marketing 6th

children are working in its factories, and works to prevent union activity among its

employees in the United States. Evaluate this company from an ethical and social

responsibility perspective.

4 Based on the evaluation you developed for Question 3, provide responses to the ethical

decision-making metric from Exhibit 4.6. Provide a rationale for your score for each

question.

5 A company that makes vitamin-infused drinks and other “healthy” snacks has the

following mission statement: “Our goal is to profitably sell good-tasting, healthy products

and to better society.” Although its products are organic, they also are relatively high in

sugar and calories. The company gives a small portion of its profits to the United Way.

Evaluate its mission statement in terms of the four principles of conscious marketing.

Recognition of marketing’s greater purpose: the company’s marketing function recognizes that the

purpose of business should be more than just making profits.

The understanding that decisions are ethically based: the company involves societal issues such as the

health and well-being of its customers in its mission.

6 Choose a company that you believe is particularly adept at conscious marketing that is

not discussed in this chapter. How do you justify your choice? What counterarguments

might someone make to suggest that your chosen company is not responsible? Consider

all key stakeholders in developing both sides of the argument.

Quiz Yourself

1 As noted in your text, which of the following ranks as the top unethical behavior by employees as

reported by chief marketing officers?

a. Misrepresenting company earnings.

b. Withholding information that could hurt the company’s image.

c. Participating in misleading or deceptive sales tactics.

d. Conducting false or misleading advertising.

e. Misrepresenting company sales figures.

7 A firm makes generous donations to charities, but its employees are always being scrutinized for

engaging in questionable sales practices. This firm would be considered:

a. ethical but socially irresponsible.

b. ethical and socially responsible.

c. unethical but socially responsible.

d. unethical and socially irresponsible.

e. neither ethical nor socially responsible.

Chapter Case Study: Is There an App for Good Parenting?

1 Who benefits from products designed to give children and babies more screen time? Who is

harmed?

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Chapter 4 – Conscious Marketing, Corporate Social Responsibility, and Ethics Marketing 6th

8 Who has a greater ethical responsibility in relation to children and screen time: companies

or parents? Present arguments for both sides.

Parents have the ultimate responsibility for the growth and development of their children. It is their

Additional Teaching Tips

In this chapter, the goal is to introduce students to ethics and social responsibility. The text introduces the

Stakeholder Analysis Matrix and the Ethical Decision Metrics I and II as tools to reaching good ethical

decisions. Ethics is difficult to teach because it is based on one’s beliefs and culture. Consequently,

instructors should keep in mind that much debate and excitement can occur in the classroom when

discussing topics in this chapter.

Instructors can teach the various metrics by using Application Questions 4, 5, 6 where students are

divided into groups and each group asked to participate in each of the questions by reading the scenario

and being assigned part of the matrix to complete. The class would then have one class-completed metric

for each question for class discussion. Online tip: This exercise can also be transferred to the online

setting by assigning one metric to each team then asking the other teams to critique it and/or add their

suggestions.

Most students aren’t aware of the American Marketing Association Code of Ethics. Instructors should fully

address this, which can be done by asking students to give an example of how the AMA ethical values

(honesty, responsibility, fairness, respect, openness, and citizenship) are used in marketing. Another

exercise may be for students to identify an advertisement or a marketing situation that did not adhere to

the AMA Code of Ethics and the subsequent outcome. Usually, that outcome is detrimental to the

companies, which demonstrates the effectiveness of following the AMA Code of Ethics. Online tip: Have

students make up story problems that are based on ethical marketing dilemmas. Then have other

students in the online class respond to them.

Social responsibility should be addressed. Students often think that social responsibility is a legal

requirement when it is not. Start students off with this topic by asking if social responsibility is a legal

requirement. The discussion should turn to examples of social responsibility and why it is important (from

the marketing viewpoint) for the organization to be involved in social responsibility.

Online Tip: Have students write up social responsibility problems (from the stakeholder’s viewpoint) in a

post and have their peers reply back as to what they would do in the situation.

Connect Activities

Activity Type Learning Objectives 04-

01 02 03 04 05 06 07

Newman’s Own Organics: Ethics and Social

Responsibility Video Case X

Understanding How CSR Differs from

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Newman’s Own Organics: Ethics and Corporate Social Responsibility

Activity Type: Video Case

Learning Objectives: 04-03

Difficulty: Medium

Activity Summary: The case describes the ethical climate and corporate social responsibility

program at Newman’s Own Organics. After the video ends, students are asked questions about the

video and related course concepts.

Activity

Introduction: In 1993, Newman’s Own Organics was started as a division of the already established

company Newman’s Own, a successful brand of packaged goods founded by veteran actor and

philanthropist Paul Newman. Part of its mission is to generate income for Paul Newman’s charitable

activities; another is to encourage more organic agriculture.

Concept Review: The process of creating a strong ethical climate within a marketing firm includes

Video: The video is presented to the student below the introductory information. The video plays

embedded on the page, after which questions are presented.

Follow-Up Activity

Review the Newman’s Own Organics website (http://www.newmansownorganics.com/index.php) and

Facebook page (linked to the website home page). If you had visited the site without viewing the video,

how much of the Newman’s Own Organics social responsibility message would you have been able to

understand? Should Newman’s Own change their site to make some messages “louder”?

Understanding How CSR Differs from Conscious Marketing

Activity Type: Click & Drag

Learning Objectives: 04-03

Difficulty: Hard

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Activity Summary: Students read descriptions of different firm actions and must classify them as

examples of CSR or conscious marketing.

Activity

Introduction: A firm that engages in conscious marketing is recognizing that it has a purpose higher

than making a profit. Corporate social responsibility (CSR) is an element of conscious marketing and

generally refers to a firm’s understanding that it has responsibilities to society. This exercise is

important because it will help you understand that because of the complexities of conscious

marketing, not all socially responsible firms are able to engage in conscious-marketing efforts.

Is There an App for Good Parenting?

Activity Type: Case Analysis

Learning Objectives: 04-01, 04-04, 04-06, 04-07

Difficulty: Medium

Activity Summary: This case discusses the issue of screen time for babies and toddlers, exploring

Activity

Introduction: Do the risks of “screen time” for small children outweigh the potential benefits? That is

what this case considers. This activity is important because ethical dilemmas arise every day in

business decision making, and managers (especially marketers) must consider all aspects of a

situation in order to make the best decisions.

Zipcar: Conscious Marketing

Activity Type: Video Case

Learning Objectives: 04-03, 04-04, 04-05, 04-06

Difficulty: Medium

Activity Summary: Zipcar sees its corporate mission as more than just making a profit: the company

seeks to make the world better through its core operations. The video case explores Zipcar’s

conscious marketing program. After the video ends, students are asked questions about the video

and related course concepts.

Activity

Introduction: Conscious marketing is built into the DNA at Zipcar. The company feels that it forges

deeper relationships with customers, creating a “community of Zipsters,” through these efforts. The

video case describes some of these initiatives. This activity is important because consumers

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Video: After the video ends, students are asked questions about the video and related course

concepts.

ISeeIt Video Case: Ethical Marketing and Organization Mission

Activity Type: Video Case

Learning Objectives: 04-02, 04-03

Difficulty: Easy

Activity Summary: This iSeeIt video case considers two job offers a student receives from

organizations with very different ethical climates, using these differences to explore concepts related

to ethical marketing.

Activity

Introduction: Ethics serve an increasingly important role in guiding the marketing activities of today’s

organizations. From corporate social responsibility to the internal ethics of employees, how an

organization acts and completes operating activities have become important considerations for

stakeholders at all levels. This can be seen from an employee perspective as Justin weighs two very

different job opportunities at Hope Springs and Big Box Co. On one hand, Hope Springs truly cares

about its employees, its customers, and the world in general, as it is highly focused on both employee

ethics and corporate social responsibility. On the other hand, Big Box Co. is one of the largest

employers in retail and is very active when it comes to corporate social responsibility. However, the

company takes an external approach and has a limited focus on employee ethics. In addition,

customer driven websites offer reviews that are less than flattering. While both organizations focus on

profits, how they get there and what they do with revenue is vastly different.

Video: After the video ends, students are asked questions about the video and related course

concepts.

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