Exam 4: Social Responsibility and Ethics in Marketing

Several mothers in Atlanta wanted to get the message to their city government that they were not happy with the nutritional quality of the food the city's school system served their children, especially at the current cost for a lunch. One of the mothers suggested they organize a protest at City Hall to get the lawmakers' attention. Another mother in the group suggested they all use their smart phones to go on Twitter and let others know the time and date of the protest. This small group was surprised at the number of other parents who were equally concerned about the food program, and so this small group decided to organize a flash mob. Over two hundred people showed up in a flash mob in front of City Hall - many of them with signs and banners. These mothers and other individuals are engaging in

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. 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.

The Kofton Corporation produces all types of jeans that are sold to retailers throughout the world. Hank, the purchasing director at Kofton, has found a supplier who will provide new fabrics that are easier to launder and more comfortable to wear. Additionally, they are available at a lower price than the current jeans Kofton buys. Since Kofton wants to satisfy its customers and its bottom line, Hank thinks he has a winner. However, when presenting the news to his management team, one of them asks "will there be any child labor involved with this new supplier?" Hank has forgotten ____ which is important to the Kofton Corporation.

Bribery is a pricing-related ethical issue.

The most basic principles of marketing ethics are

____ is (are) most likely to improve ethical behavior in a marketing organization.

Companies that incorporate ethics and social responsibility into their strategic plans are likely to experience

It is easy to distinguish between legal and ethical issues.

L'Oreal, a manufacturer of personal care and beauty products has a focus on sustainability. It has developed eco-packaging, eliminated many potentially harmful chemicals from its products, and has improved its production systems to reduce waste. What major social responsibility issue is L'Oreal addressing?

Honeybees are disappearing at an alarming rate and since they pollinate about a third of all foods we eat, it is an important concern. That's why Haagen-Dazs launched a microsite to increase the awareness of the issue. In addition, it launched a "Twitcause" campaign on Twitter, raising $7,000 in 2 days. This example illustrates the positive consequences of

Angela organized a boycott of a local restaurant because of the owner's obvious prejudicial treatment of Hispanics. Angela's action would most likely be called

The close relationship of Home Depot's philanthropic initiatives and its business goals is an example of

What is the major difference between social responsibility and marketing ethics?

If a person is rewarded for developing a deceptive advertisement, he or she probably will not engage in such behavior in the future.

The RedCap Corporation is committed to social responsibility. It is looking for a new shipping partner and has found LogiSpec, one that seems to be perfect since it employs individuals with disabilities, contributes a portion of profit to the local school system, and allows its employees to work on flex-time. RedCap is very interested in LogiSpec's attention to social responsibility. However, its pricing is almost 12% higher than other shippers RedCap is considering. The fact that RedCaps' decision has to balance the company's desire for social responsibility and investors' desires for profits is an example of a(n) ____ responsibility.

A business that contributes resources to the community to improve the quality of life is taking on a(n) ____ responsibility.

What are some ways to determine if an activity is ethical or socially responsible?

Because laws are often difficult to interpret and understand, company codes of conduct and compliance programs should

Codes of conduct (ethics) are formalized rules and standards that describe what the company expects of its employees in terms of ethical behavior.

____ ethical issues generally surface when companies fail to disclose risks associated with a product or information regarding its function, value, or use.