Question 1

In the 1960s,President Kennedy developed what is known as the Consumer Bill of Rights.This legislation represents limitations to the legal concept of ________ that was pervasive before that.

Accepted Answer

A) utilitarianism 
B) self-regulation 
C) economic espionage 
D) consumerism 
E) caveat emptor

Question 2

Which of the following is a major reason for the violation of ethics codes?

Accepted Answer

A) government regulation 
B) family influence 
C) lack of religious beliefs 
D) fear of disciplinary action 
E) perceived behavior of top management

Question 3

According to public opinion surveys,________ are considered to be among the least ethical occupations in the United States.

Accepted Answer

A) insurance company professionals 
B) legal professionals 
C) advertising practitioners 
D) members of U.S.Congress 
E) the news media

Question 4

Which of the following is a socializing force that dictates what is morally right and just?

Accepted Answer

A) federal regulatory agencies such as the FTC 
B) federal,state,and local legislation 
C) the U.S.Supreme Court 
D) culture 
E) organizational core values

Question 5

There are three concepts of social responsibility,each relating to particular constituencies.Profit responsibility is characterized by

Accepted Answer

A) the triple bottom line,to achieve sustainable,long-term growth. 
B) a focus on the obligations an organization has to those who can affect achievement of its objectives. 
C) an engagement in open and free competition without deception or fraud. 
D) an unrelenting customer focus. 
E) a focus on seller-oriented outcomes.

Question 6

Transparency International is an organization that

Accepted Answer

A) monitors how developed nations deal with developing nations. 
B) establishes procedures for ethical international business based on the ISO 7000 Code of Conduct. 
C) monitors and ranks countries on the basis of their perceived level of corruption. 
D) creates an acceptable international code of ethics. 
E) makes sure federal,state,and local governments in the United States abide by the Consumer Bill of Rights.

Question 7

Investors should understand that when purchasing stock,the principle of ________ is in effect.It is in the best interests of investors to do research on the company,so they will make a wise purchase.

Accepted Answer

A) modus operandi 
B) e pluribus unum 
C) de facto marketing 
D) c'est la vie​ 
E) caveat emptor

Question 8

Triple bottom line refers to

Accepted Answer

A) the recognition of the need for organizations to improve the state of people,the planet,and profit simultaneously if they are to achieve sustainable,long-term growth. 
B) the obligations an organization has to those who can affect achievement of its sales,profit,and market share objectives simultaneously. 
C) the recognition of the need for organizations to be responsible simultaneously to shareholders,employees,and customers. 
D) the obligations an organization has to practice profit,stakeholder,and societal responsibility simultaneously. 
E) three different financial statements prepared in three different formats: one for governmental regulators,one for shareholders,and one for internal use.

Question 9

The right to safety manifests itself in industry and federal safety standards for most products sold in the United States.The U.S.________ routinely monitors the safety of 15,000 consumer products.

Accepted Answer

A) Chamber of Commerce 
B) Better Business Bureau 
C) Consumer Product Safety Commission 
D) Department of Commerce 
E) Consumer Protection Agency

Question 10

Culture refers to the set of values,ideas,and attitudes that are learned and shared among members of a group.Culture also serves as a socializing force that dictates what is morally right and just.This means that moral standards

Accepted Answer

A) are relative to particular societies. 
B) must be universal in order for cross-cultural marketing to be effective. 
C) are fluid and very easy to change. 
D) are cyclical so it is important to change with the times. 
E) are concrete;something is either right or wrong.

Question 11

All of the following are the result of an interest in the triple bottom line except which?

Accepted Answer

A) sustainable development 
B) cause marketing 
C) environmental scans 
D) green marketing 
E) social audits

Question 12

Caveat emptor refers to

Accepted Answer

A) the legal concept of "let the buyer beware," which was pervasive in the American business culture before the 1960s. 
B) the marketing concept of "be first or be last," implying that the first company to the marketplace wins. 
C) the Latin term meaning that "all is fair in love and war," an attitude that was held by most marketers prior to the 1990s. 
D) the legal concept of "such is life," which created many illegal as well as legal but unethical business practices during the 1980s. 
E) the Latin phrase meaning "empty promises," which was a charge placed upon many firms during the period after World War II when products failed to meet their marketing claims.

Question 13

The Latin phrase caveat emptor is a legal concept that means

Accepted Answer

A) "Cash on delivery." 
B) "Let the buyer beware." 
C) "Let's make a deal." 
D) "Be informed." 
E) "Such is life."

Question 14

Gap Inc.ended its relationship with 23 foreign production facilities due to code violations.Several closings occurred because of the use of child labor.In response to these events,Gap Inc.created a large team whose purpose is to travel worldwide to ensure compliance with its Code of Vendor Conduct.This is an example of

Accepted Answer

A) cause marketing. 
B) profit responsibility. 
C) utilitarianism. 
D) moral idealism. 
E) social responsibility.

Question 15

Stakeholder responsibility refers to

Accepted Answer

A) the view that an organization has an obligation to those who can affect the achievement of its objectives. 
B) the obligation of a firm to price its products or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit. 
C) the duty of a firm to maximize profits for its owners or stockholders. 
D) the concept that no expansion or additional research and development will occur until a company is making a profit. 
E) the idea that organizations are part of a larger society and are accountable to that society for their actions.

Question 16

Most paint is neither biodegradable nor friendly to the environment because it is made with petroleum solvents.A builder who decided to build a subdivision with 500 homes and paint each with an environmentally friendly,soy-based paint (even though it costs more)would be practicing

Accepted Answer

A) profit responsibility. 
B) cause marketing. 
C) stakeholder responsibility. 
D) mass marketing. 
E) societal responsibility.

Question 17

The American Marketing Association Statement of Ethics is centered on three general norms,one of which is to

Accepted Answer

A) initiate fair and honest dialogues in developing markets. 
B) foster trust in the marketing system. 
C) champion new legislation that protects ethical business firms and punishes those who abuse consumer trust. 
D) support governmental agencies in their quest to identify and prosecute those who break the laws of ethical marketing. 
E) contribute to society's well-being through charitable contributions and cause-related marketing efforts.

Question 18

Making counterfeit copies of Gucci purses,Tommy Hilfiger sportswear,and other international brands is pervasive in some countries because laws protecting intellectual property are unclear and sporadically enforced.A business introducing a product into such a country needs to know that its ________ may lead to trademark infringements.

Accepted Answer

A) religious precepts 
B) antecedent states 
C) moral idealism 
D) societal culture and norms 
E) utilitarianism

Question 19

Laws refer to

Accepted Answer

A) a specific set of behaviors a given society considers to be ethical. 
B) society's values and standards that are enforceable in the courts. 
C) the agreed upon codes of behavior for a given nation,community,religious group,or family. 
D) written documentation of a prescribed set of attitudes,beliefs,and values. 
E) a code of ethics that defines what may be done in specific business circumstances.

Question 20

Consumers have an obligation to ________ in the exchange process and in the use and disposition of products.

Accepted Answer

A) get as much as they can for their money 
B) support cause marketing efforts 
C) reveal any and all pertinent personal information 
D) act ethically and responsibly 
E) seek products with ISO 14000 certification

Exam 4: Ethical and Social Responsibility for Sustainable Marketing