Exam 4: Social Responsibility and Ethics in Marketing

Four dimensions of social responsibility are economic, legal, ethical, and philanthropic.

There is no evidence that being socially responsible and ethical is worthwhile.

Marketing ethics concerns the impact of an organization's decisions on society, whereas social responsibility relates to individual decisions.

Describe the factors that influence the ethical decision-making process and identify ways to improve ethical decisions in marketing.

A _______________ orientation helps to redefine the marketers' focus by encouraging them to broadly consider those entities most impacted by the marketers' actions. Those entities include employees, suppliers, regulators, shareholders, customers, and the community.

According to the consumer bill of rights, the right to be informed means that

Three factors that influence the ethical decision-making process in marketing include

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

Provide an overview of important social responsibility issues in marketing, and indicate their impact on marketing decisions.

Instead of addressing the question ____, many environmentalists and marketers believe the question should be ____.

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 demonstrates an example of

It is easy to distinguish between legal and ethical issues.

Scott Stevens is managing director for Northeastern Mutual Company, a financial services firm specializing in retirement programs, college savings programs, and life insurance services. Scott firmly believes that dress and grooming are important elements in creating a positive first impression and provides training to his account managers regarding the dress code and grooming policy. Northeastern does not allow any facial hair for men and stresses that women should pull their hair back away from their face. Research has shown that people view men with facial hair as dishonest and believe that they might be hiding something. Facial hair is also associated with criminal activity as a higher proportion of men who are arrested for violent actions have facial hair. In addition, a woman who wears their hair in a style that covers their face also has been shown to be perceived as dishonest. Scott reminds his employees to wear white shirts because the "good guys" always wear white. The Northeastern Mutual Company dress and grooming policies are an example of the importance of ______ in influencing ethical decision making.

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. 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

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 physicians 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 Reese is not to 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?

Product-related ethical issues arise when marketers

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.

Which of the following statements best summarizes the perspective that most marketing managers have on unethical behavior?

Social responsibility is an organization's obligation to maximize its positive impact and minimize its negative impact on society.

A recent publicity announcement on national television, radio, newspaper, and websites announced that Target had issued a product recall for its Circo Night Lights, which are sold in the baby section of the store. Evidently, the battery in the night light can overheat and cause the night light to melt. This presents a safety and fire hazard, which could pose serious risks to families with small children-especially if the night light is in the child's room. Through its recall efforts, Target is taking proactive steps to remove the night lights from distribution as well as to assist customers who purchased the product. Target is offering a full refund and is also investigating the supplier who manufactured the night lights to ensure overheating will not occur with future models. This is an example of a ____________-related ethical issue.