Exam 4: Social Responsibility and Ethics in Marketing

For the Christmas season, a major toy retailer decided to donate to Angel Tree, an organization that provides gifts to the families of those who are incarcerated. The retailer claimed that it would donate 10 percent of the proceeds of all toys sold in the month of December to the Angel Tree organization. This is an example of ________________.

According to President Kennedy's consumer bill of rights, the right to choose means that

The way to deal with ethical issues is proactively

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?

State Farm Insurance Company is the largest insurance company in the United States and is consistently recognized for their efforts to "build safer, stronger, and better communities." They have received numerous awards including Corporate Responsibility Index, Corporation of the Year, Outstanding Corporate Partner, and Top 100 Employers. Recently, State Farm received a President's Volunteer Service Award from Junior Achievement for providing more than 5,000 volunteer hours to the organization. The State Farm-Junior Achievement program impacts students by partnering with organizations to reduce high school dropout rates and increase the number of students receiving high school diplomas. Research has shown that students who graduate from high school will be more successful and productive citizens. In order to be successful, State Farm must be able to recruit and hire talented employees who have met minimum expectations for educational achievement. Through its partnership with Junior Achievement, State Farm Insurance Company has adopted a __________ approach to social responsibility.

Employees can easily determine what behavior is acceptable even in organizations that do not have ethics compliance programs and policies on conduct.

Manipulating a product's availability for purposes of exploitation and forcing intermediaries to behave in a specific manner are ethical issues in distribution.

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.

The American Heart Association has been using the campaign Go Red for Women to raise awareness and education about heart attack symptoms in women. Several companies including Merry Maids have partnered with the American Heart Association and prominently display the logo on their product packaging. Merry Maids left each of their customers a donation box to fill with coins and dollars with the campaign slogan "Raise the Roof" to support the American Heart Association. In one month they raised over $100,000 in donations. Merry Maids' "Raise the Roof" campaign illustrates a practice known as

There are few costs associated with being socially responsible and satisfying society's demands.

All of the following are factors that influence the ethical decision-making process except

When a purchasing agent for Intel is offered a bribe by a silicon manufacturer salesperson,

The most basic principles of marketing ethics are _____________ to encourage marketers to conform to society's expectations for conduct.

A bribe offered to benefit an organization is generally considered acceptable.

Which of the following statements about codes of conduct is true?

____ are formalized rules and standards that describe what a company expects of its employees in terms of ethical behavior.

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.

Scenario 4.1 Use the following to answer the question. Hershey Foods was founded in the 19th 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 would 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.

Which of the following is the best example of strategic philanthropy for Staples, the large office supply chain?

Utility company NiSource has been recognized for its excellent code of conduct. Its four core values include fairness, honesty, integrity, and trust. It has been selected for four consecutive years as one of Ethisphere's "World's Most Ethical Companies." Its code starts off by emphasizing that every employee has the responsibility to act ethically, especially when it comes to reporting misconduct. It also includes a number of sections including creating a positive work environment, protecting corporate assets, avoiding conflicts of interest, maintaining good citizenship, and using solid judgment. However, NiSource knows that a strong code of conduct by itself does not guarantee ethical conduct. It has adopted a number of controls and organizational factors to limit opportunities for unethical behavior. According to research from the National Business Ethics Survey, the biggest determinant of ethical conduct (or misconduct) at NiSource stems from its _______________.