Exam 4: Social Responsibility and Ethics in Marketing

At the most basic level of marketing citizenship, marketers have an obligation to contribute funds to philanthropic causes.

Scenario 4.1 Use the following to answer the questions. Hershey Foods was founded in the nineteenth 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 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 criticism of Hershey's sourcing for chocolate is an example of ____, while the potential use of child labor to produce Hershey products impacts its level of commitment to ______.

Ben and Jerry's has long been known for its focus on social responsibility, sustainability, and its positive relationships with its employees. Additionally, when Ben and Jerry's developed its long-term strategy, it was sure to include philanthropic initiatives and their relationship with its business goals. Which of the following would be the primary recipients of the benefits of Ben and Jerry's focus on strategic philanthropy?

Justin believes that certain conditions at his company are very conducive to engaging in unethical behavior because these conditions provide rewards such as faster promotions and better salaries for those who bend the rules. Justin's company seems to allow ____ for unethical behavior.

Bridgewater, Inc. produces its industrial components in several developing countries outside the United States. The majority of Bridgewater's customers are in the U.S. and Canada. One of Bridgewater's customers is Craft Care, who uses Bridgewater components in the production of child car seats. Recently, there was a recall of Craft Care's car seats due to serious injuries, which the company has traced back to Bridgewater's components. If Bridgewater knew about the faulty components, but failed to notify Craft Care, it would have been engaging in unethical behavior with regard to which of the following marketing issue areas?

Define green marketing, and explain why it is difficult to implement.

According to research, only a small percentage of consumers have a more positive opinion of an organization when it supports causes they care about.

Codes of conduct (ethics) must be detailed enough to take every situation into account.

Opportunity is a favorable set of conditions that limit barriers or provide rewards.

Ethical choices in business situations are most often made

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.

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

An organization can rid itself of "bad apples" through screening techniques and enforcement of its code of conduct.

Marketing ethics goes beyond legal issues, although ethical disputes must sometimes be resolved in court.

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

Which of the following statements is false?

How can a code of conduct encourage ethical behavior in an organization?

If Starbucks were to donate 5 percent of every coffee purchase to shelters for victims of domestic abuse for one month, this would be an example of

A marketer's failure to inform customers about changes in the quality of its products does not constitute an ethical issue.

After a hurricane strikes the U.S. Gulf Coast, a tremendous demand for gas-powered generators occurs. Many of the local hardware and home supply stores have limited supplies of these items. However, Ace Hardware has a large inventory of these items. Traditionally, Ace has lower prices than the other competitors. What major ethical decisions is Ace likely to face with regard to the current issue?