Exam 3: Ethics and Social Responsibility

The greater the number of persons affected by a negative outcome,the more likely it is that marketers will recognize a problem as unethical.

Sustainability refers to a business's concern for society's welfare.

Most business ethicists agree that multinational firms that expand into developing countries are acting ethically when they provide low-income work to the people in those countries,arguing that low-income work is better than no work.

Many airlines offer passengers the option to purchase carbon offsets as an environmentally friendly compensation for their carbon footprint.For example,Delta customers can pay $10 to a fund that plants trees as a way to offset the carbon emissions from the airplane.Some would say Delta is:

Which of the following statements describes ethics?

McAfee's problem was exacerbated because it was a global brand.

Hallie is a calculating,self-centered salesperson.She never engages in relationship marketing.She looks on any sales situation as a "win-lose" situation,and she believes any legal method she can use is justified when she wins.Hallie is most likely at the _____ stage of ethical development.

A code of ethics can be an effective internal control on behavior,which is more desirable than external controls such as government regulation.

Which of the following is an argument used to support corporate social responsibility (CSR)?

_____ is the concern of business for the long-range welfare of both the company and its relationships to the society within which it operates.

All of the following statements about the creation of a code of ethics are true EXCEPT:

Which level of ethical development moves from an egocentric viewpoint toward the expectations of society?

Large companies have become more interested in ethical issues and appoint ethics officers to oversee the company's ethical decision making.

Drug Marketing Pharmaceutical companies spent $4.4 billion on prescription drug advertising in 2008,mostly on television and in magazines.While the Internet is becoming a more prominent medium to reach consumers and is the primary source used to seek health information,these companies spent less than $130 million on Web marketing.One reason is that there are no guidelines,which makes these heavily regulated marketers uneasy.For example,television commercials for prescription drugs must include disclosures regarding the major side effects if the brand name is mentioned in the ad.The Food and Drug Administration (FDA)claims that existing regulations address many of the Internet advertising issues,but other aspects of Web marketing,such as social networking and search marketing,must be reviewed.That's why the FDA hearings on this issue were attended by pharmaceutical giants and Web companies like Google,Yahoo,and WebMD Health. -Refer to Drug Marketing.If a drug manufacturer claims that its manufacturing processes are environmentally friendly in its advertising,this is an example of:

You are writing copy for a fruit drink advertisement.You know you could sell more product if you claimed that the drink contained 100% juice,but in fact the drink contains only 50% juice.You decide not to make the "100% juice" claim because you know it would be illegal to do so.You are likely at the postconventional stage of morality.

The newest theory in social responsibility is called sustainability.Explain what this means.

Corporate social responsibility is defined as the:

Top managers who behave ethically can influence others in an organization to behave ethically.

Although relatively few customers experienced the blue screen of death that afflicts a stricken Windows computer,the real harm done was to McAfee's brand equity.

Today's business ethics are difficult to learn because they are different from those used outside the business world.