Question 1

Glock,Inc.has set up a voluntary program that "fingerprints" every gun the company assembles.The program enables police to trace the owners of guns used in crimes when only the bullets or casings are recovered.This plan received praise from law enforcement officials,and the company is pleased to support it.This plan is an example of how a company practices:

Accepted Answer

This plan is an example of how a company practices stakeholder responsibility. Glock, Inc. has voluntarily set up a program to fingerprint every gun they assemble to enable police to trace the owners of guns used in crimes, which benefits society as a whole. This action shows that the company is taking responsibility for the consequences of its product and demonstrating concern for its stakeholders' welfare, which includes law enforcement officials and the public.

Question 2

Most paint is not biodegradable and not 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

The builder would be practicing societal responsibility by choosing to use environmentally-friendly paint, even though it may cost more. This demonstrates a commitment to the well-being of society and the environment beyond just their own profits or the interests of specific stakeholders.

Question 3

Which of the following statements about social responsibility is true?

Accepted Answer

The concept of profit responsibility holds that the only duty of an organization is to earn a profit, so statement (B) is true. However, statement (A) is incorrect, as the three concepts of social responsibility are economic, legal, and ethical/social. Statement (C) is only partially true, as societal responsibility includes obligations to society as a whole, not just specific stakeholders. Statement (D) is also incorrect, as the duty of an organization is most easily understood at the economic responsibility level (i.e., making a profit).

Question 4

Green marketing is:

Accepted Answer

Green marketing refers to the promotion and selling of products or services that are environmentally-friendly or produced through sustainable practices. It involves efforts to produce, promote, and reclaim environmentally sensitive products. The focus is on minimizing the impact on the environment while meeting the needs of consumers.

Question 5

At a local farmers market,an artisan craftsperson sources supplies for his cabinetry from old wine barrels and wine crates.He communicates to prospective customers the origins of his materials prominently.He is engaged in:

Accepted Answer

The artisan craftsperson is engaged in green marketing by promoting his use of recyclable materials and their origins.

Question 6

Stakeholder responsibility is the:

Accepted Answer

Stakeholder responsibility is the view that an organization has a moral and ethical obligation to consider the interests of all its stakeholders, including customers, employees, shareholders, suppliers, communities, and the environment in which it operates, and not just focus on maximizing profits for its owners or stockholders. This approach recognizes the interdependence and mutual benefits that exist between the organization and its stakeholders, and emphasizes the long-term sustainability and success of the enterprise. Option A is only focused on the consumer and profitability of the firm, while option B and D emphasize the single-minded pursuit of profits for the owners and the board, respectively, without considering the broader implications and consequences of these actions.

Question 7

Source Perrier S.A.,the supplier of Perrier bottled water,when it recalled 160 million bottles of water after traces of a toxic chemical were found in 13 bottles.The recall cost the company $35 million and $40 million more was lost in sales.Even though the chemical was not harmful to humans,the president of the company believed it was his duty to remove "the least doubt,as minimal as it might be,to weigh on the image of the quality and purity of our product." Perrier demonstrated what?

Accepted Answer

Perrier demonstrated stakeholder responsibility by putting the safety and satisfaction of its customers first and recalling a large number of bottles even though the chemical was not harmful. The decision to do so was made to maintain the high quality and purity of the product and avoid any negative impact on the company's reputation.

Question 8

The maker of Wrigley chewing gum funded a $10 million ad campaign aimed at getting African-Americans to use doctors for regular health care maintenance instead of only when they are sick.This is an example of:

Accepted Answer

This campaign is an example of societal responsibility, as it aims to promote the well-being of a community by encouraging preventive health care practices.

Question 9

Profit responsibility,societal responsibility,and stakeholder responsibility are three forms or concepts of:

Accepted Answer

Profit responsibility emphasizes that a company's primary responsibility is to maximize profits for its shareholders. Societal responsibility emphasizes that a company should also act in the best interest of society as a whole, beyond simply making profits. Stakeholder responsibility takes into account the interests of a broader range of stakeholders beyond just shareholders, such as employees, customers, and the environment. All three concepts fall under the umbrella of social responsibility, which refers to a company's duty to act in the best interests of society as a whole.

Question 10

Which of the following is an example of green marketing?

Accepted Answer

Mercedes-Benz designing their sedans to be recyclable is an example of green marketing as it promotes their environmentally conscious practices.

Answer: B
 4-3M creating a new fertilizer for trees can be considered an example of green marketing as it appeals to consumers who prioritize environmental sustainability.

The other options do not necessarily promote environmental sustainability or eco-friendliness. Adding green colors to labels or marketing pre-washed jeans do not necessarily have any environmentally-friendly attributes, and therefore are not considered examples of green marketing.

Question 11

In the context of corporate behaviour,social responsibility is sometimes referred to as:

Accepted Answer

Social responsibility in the context of corporate behaviour is commonly referred to as corporate social responsibility (CSR). CSR refers to a company's obligations beyond its legal responsibilities to operate in a manner that benefits society, the environment, and stakeholders. It includes initiatives such as sustainable development, ethical labour practices, and philanthropy. Utilitarianism and moral idealism are ethical theories, while philanthropy is just one aspect of CSR.

Question 12

Burroughs Wellcome,the developer and maker of AZT,a drug to treat persons afflicted with AIDS,charges each patient $6,500 annually-more than many AIDS patients can afford because they are unable to work.This is an example of the manufacturer recognizing its:

Accepted Answer

Burroughs Wellcome charging $6,500 annually for AZT, a drug to treat persons with AIDS, shows their profit responsibility. Profit responsibility is the duty of an organization to maximize profits for its shareholders while also behaving within the law and ethical boundaries. In this case, the company is charging a high price for a drug that is essential for the survival of patients with AIDS, which means they are prioritizing profit over the needs of their customers. This demonstrates that the manufacturer recognizes its profit responsibility.

Question 13

Many fast food restaurants,including Burger King,McDonald's,and Wendy's,no longer use Styrofoam containers for their of their products.Rather,these firms wrap their burgers in recycled paper and place to-go orders in recycled paper bags.These fast-food restaurants use:

Accepted Answer

The fast food restaurants are using green marketing by switching to environmentally friendly packaging options.

Question 14

Richard Branson,CEO of Virgin,is spending $3 billion in profits from his transport businesses to invest in commercial ventures designed to produce renewable energy in order to fight global warming.This is an example of:

Accepted Answer

The answer of Richard Branson,CEO of Virgin,is spending $3 billion...

Question 15

RBC sponsors numerous community-building events and has a focus on the environment with their RBC Blue Water program.Together,these events and programs demonstrate societal responsibility,which is defined as:

Accepted Answer

Societal responsibility is the view that organizations have obligations to the general public and to the preservation of the ecological environment. RBC's community-building events and their RBC Blue Water program are examples of this type of responsibility.

Question 16

Chrysler recycles thousands of tons of wooden pallets,cardboard,and paper annually.The Chrysler car itself is 75 percent recyclable.Chrysler's programs to recycle waste are examples of:

Accepted Answer

Chrysler's recycling programs are examples of green marketing, which involves promoting products or services that are environmentally friendly or sustainable. Recycling waste is a common practice in green marketing and helps to reduce the negative impact on the environment. The Valdez Principle is a set of guidelines for responsible environmental behavior by corporations, while cause-related marketing involves supporting a social or environmental cause through marketing efforts. Environmental marketing encompasses all marketing efforts related to environmental issues and sustainability.

Question 17

The residents of communities along the Gulf of Mexico and people throughout the world were outraged when the BP oil leak occurred,dumping millions of gallons of crude oil into the gulf.People were upset with BP's response to the disaster.The company was slow to develop a reliable means for capping the leaking pump even though it did quickly implement cleanup activities.Through its public relations,BP was criticized for acting in a manner which would benefit the organization but would not benefit society in general.In short,BP did not demonstrate:

Accepted Answer

BP did not demonstrate social responsibility, which refers to a company's obligation to act in a manner that benefits society as a whole, beyond the interests of the company or its shareholders. Instead, BP's actions were perceived as focused on their own profit and reputation, rather than the well-being of the environment and the affected communities.

Question 18

When Facebook issued their prospectus,while going through their Initial Public Offering (IPO),Mark Zuckerberg made it known that his goal was not necessarily maximizing profit for Facebook's shareholders.Many investors were concerned that Facebook was not interested in:

Accepted Answer

Mark Zuckerberg's statement indicated that Facebook might not prioritize maximizing profits for shareholders, which relates to profit responsibility.

Question 19

B.C.Gas Service Co.has put large stickers on all of its vehicles designating them as safety watch vehicles.Employees are trained to help children,older citizens,and others in need of help.This safety watch program is demonstrating:

Accepted Answer

B.C.Gas Service Co.'s safety watch program demonstrates social responsibility by going beyond their primary business purpose of providing gas services and showing concern for the well-being of the community by providing assistance to those in need.

Question 20

The manufacturer of baby safety products has the following mission: "Products that protect our most valuable resource-our children." One of its products is a small cap that fits over sharp edges to prevent injury.The caps are made almost entirely of recycled plastic.For each package of protective caps sold,the company donates 5 percent of its profits to the Center for the Rehabilitation of Head Injuries.The company is demonstrating all of the following EXCEPT:

Accepted Answer

The company is demonstrating green marketing (using recycled plastic), cause-related marketing (donating profits to a rehabilitation center), and societal responsibility (creating products to protect children). The only thing that is not explicitly stated or demonstrated is profit objectives.

Quiz 4: Ethics and Social Responsibility in Marketing

Most paint is not biodegradable and not 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: