Question 1

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 ________________.

Accepted Answer

A)  economic responsibility 
B)  consumerism 
C)  ethical responsibility 
D)  strategic philanthropy 
E)  cause-related marketing

Question 2

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

Accepted Answer

A)  consumers' interests will receive full and sympathetic consideration in the formulation of government policy. 
B)  consumers should have access to a variety of products and services at competitive prices. 
C)  consumers should have access to and the opportunity to review all relevant information about a product before buying it. 
D)  marketers have an obligation not to knowingly market a product that could harm consumers. 
E)  consumers should be able to buy products at prices they are willing to pay.

Question 3

The way to deal with ethical issues is proactively

Accepted Answer

A)  right before the problem is made public. 
B)  after the problem has received extensive media attention. 
C)  immediately after the problem is discovered. 
D)  when lawsuits are brought against the company. 
E)  during the strategic planning process.

Question 4

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?

Accepted Answer

A)  The more a person is exposed to ethical activity in the organization, the more likely he or she will behave unethically. 
B)  The more a person is exposed to unethical activity in the organization, the more likely he or she will behave unethically. 
C)  The more a person is exposed to unethical activity in the organization, the less likely he or she will pay attention to that activity. 
D)  The more a person is exposed to ethical activity in the organization, the less likely he or she will pay attention to that activity. 
E)  Exposure to ethical and unethical activity has no effect on a person's decision-making process.

Question 5

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.

Accepted Answer

A)  strategic philanthropy 
B)  cause-related marketing 
C)  mission-central 
D)  sustainable

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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.

Accepted Answer

A)  legal 
B)  society 
C)  philanthropic 
D)  economic 
E)  ethical

Question 9

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

Accepted Answer

A)  cause-related marketing 
B)  sustainable marketing 
C)  philanthropy marketing 
D)  strategic philanthropy

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A)  opportunity. 
B)  individual factors. 
C)  organizational culture. 
D)  organizational pressure. 
E)  salary or wages.

Question 12

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

Accepted Answer

A)  a promotion-related ethical issue has been created. 
B)  the purchasing agent is free to accept the bribe without consequences. 
C)  an ethical issue primarily related to the pricing of products exists. 
D)  there is an ethical dilemma for the purchasing agent that is product related. 
E)  no ethical issue exists under these circumstances.

Question 13

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

Accepted Answer

A)  philanthropic responsibilities 
B)  economic responsibilities 
C)  universally accepted behaviors 
D)  written as laws and regulations 
E)  included in the marketing code of ethics

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)  All publicly-traded companies have formal codes of conduct. 
B)  Most large corporations have formal codes of conduct. 
C)  Codes of conduct are unnecessary for small- and medium-sized companies. 
D)  Approximately half of large companies have formal codes of conduct. 
E)  Very few companies have formal codes of conduct, but most have informal codes.

Question 16

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

Accepted Answer

A)  Job descriptions 
B)  Ethics clauses 
C)  Behavior contracts 
D)  Codes of conduct 
E)  Ethics contracts

Question 17

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.

Accepted Answer

A) True 
 B)False

Question 18

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.

Accepted Answer

A)  philanthropic 
B)  ethical 
C)  legal 
D)  economic 
E)  shareholder

Question 19

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

Accepted Answer

A)  Donating money to help fight illiteracy of both adults and children 
B)  Having employees volunteer at a charity of their choice two hours a week 
C)  Giving a portion of its profits in August to support charter schools 
D)  Offering discounts to large corporations on their office supplies 
E)  Providing low-income families with school supplies and computer training

Question 20

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 _______________.

Accepted Answer

A)  corporate culture 
B)  disciplinary procedures 
C)  adoption of values 
D)  extent of ethics training 
E)  revision of its ethics code

Exam 4: Social Responsibility and Ethics in Marketing

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?

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.

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.

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