Question 1

The ethical decision-making framework includes all of the following steps except

Accepted Answer

Promoting the firm's CSR efforts is not part of the ethical decision-making framework. The other steps are necessary to assess the situation, gather information, and identify stakeholders before brainstorming alternatives and choosing a course of action that aligns with ethical principles.

Question 2

Business ethics and marketing ethics are synonymous terms.

Accepted Answer

While business ethics and marketing ethics have some overlap, they are not synonymous terms. Business ethics encompasses the principles and values that guide overall organizational behavior, while marketing ethics focuses specifically on ethical practices in marketing and advertising.

Question 3

A representation,omission,act,or practice in an advertisement that is likely to mislead consumers acting reasonably under the circumstances is referred to as

Accepted Answer

Deceptive advertising refers to any representation, omission, act, or practice in an advertisement that is likely to mislead consumers acting reasonably under the circumstances. This type of advertising can lead to legal consequences and harm the reputation of the company.

Question 4

In marketing,managers often face the choice of doing what is beneficial for them and possibly the firm in the short run and doing what is right and beneficial for the firm and society in the long run.

Accepted Answer

This statement is true. Sometimes, marketing decisions that benefit a firm in the short term may not be ethical or socially responsible, which can cause negative consequences for the firm in the long run. Therefore, managers need to consider the long-term implications of their decisions and make choices that benefit both the firm and society.

Question 5

Ironically,while the leaders of Enron Corporation were manipulating the company's finances for their personal benefit,the company was a major donor to Houston area charities.Enron had unethical business practices,but was also

Accepted Answer

Enron's donations to Houston area charities can be seen as an example of corporate social responsibility, which is a concept where companies take into account the social and environmental impacts of their actions, beyond just the financial bottom line. However, this does not excuse or justify their unethical business practices.

Question 6

New real estate disclosure regulations require sellers and their agents to tell prospective buyers about any existing problems with the property.Previously,they were expected only to answer buyers' questions.The new regulation addressed the marketing ethical problem of

Accepted Answer

The new regulation addresses the ethical problem of withholding information. Previously, sellers and agents were only expected to answer buyers' questions, but now they must disclose any existing problems with the property even if buyers do not ask about them. This ensures that buyers have all the necessary information to make an informed decision about whether to purchase the property, and it prevents sellers and agents from withholding information that could affect the buyer's decision.

Question 7

Deceptive advertising and promotion of inferior products are examples of ethical issues related to _______.

Accepted Answer

Deceptive advertising and promotion of inferior products are directly related to marketing, which pertains to the promotion and selling of products or services.

Question 8

In the Ethical Decision-Making Metric,the Admired Observer Test asks the question: "Will I be able to look at myself in the mirror and respect the person I see there?"

Accepted Answer

The Admired Observer Test asks, "What would someone I admire do in this situation?" The Mirror Test is the one that asks if you can respect yourself after the decision.

Question 9

Being socially responsible is generally considered

Accepted Answer

Being socially responsible involves actions that exceed the basic ethical standards and legal requirements, reflecting a commitment to contribute positively to society.

Question 10

Garrett has just purchased a beer distributorship.He wants to increase the visibility of his firm in local markets,but he knows there are a number of regulations and socially accepted practices associated with promoting alcoholic beverages.According to the framework for ethical decision making,the first thing Garrett should do is to

Accepted Answer

The first step in the ethical decision-making framework is to identify the issues that need to be addressed. This helps in understanding the ethical concerns and potential impacts of the decision.

Question 11

Which of the following does your text suggest as the reason different people have different ethical standards?

Accepted Answer

The text suggests that different people have different ethical standards because of their culture, upbringing, and other influences. It is implied that these factors shape an individual's moral compass and guide their actions in ethical situations. Option A and D are not mentioned or implied in the text. Option B may be true in certain situations, but it is not presented as a general reason for differing ethical standards. Option E is ruled out because the text explicitly suggests a reason for differing ethical standards.

Question 12

Even if society calls for a company to act responsibly,it is better if the company ignores this demand and focuses solely on making a profit.

Accepted Answer

Ignoring societal demands for responsible behavior can harm a company's reputation and potentially lead to legal consequences. Prioritizing profit over social responsibility can also have negative impacts on the environment, employees, and customers. Ultimately, a balance between profit and responsibility is necessary for long-term success.

Question 13

The sale of products that may damage the environment,the use of sweatshop labor,and the marketing of dangerous products are examples of

Accepted Answer

The sale of products that may damage the environment, the use of sweatshop labor, and the marketing of dangerous products are all examples of ethical issues within the context of marketing. It is the responsibility of ethical firms to ensure that their marketing practices do not contribute to these issues.

Question 14

When making decisions,managers often have to decide between doing what is beneficial for them (and possibly the firm)in the short run,and doing what is right and beneficial for the firm and for society in the long run.To address this conflict,a firm

Accepted Answer

To address the conflict between short-term and long-term goals, a firm must ensure that the long-term goals of the firm are aligned with the short-term goals of each individual within the firm. This ensures that individual managers prioritize actions that benefit the firm in the long run, rather than just pursuing short-term gains that may not be sustainable. By aligning the goals of individuals with the long-term goals of the firm, the firm can ensure that decisions are made in the best interest of both the firm and society in the long run.

Question 15

Compared to the average company,firms with strong ethical climates tend to

Accepted Answer

Firms with strong ethical climates tend to be more socially responsible as they prioritize doing the right thing and consider the impact of their actions on stakeholders. This can include initiatives such as promoting sustainability, supporting local communities, and advocating for ethical business practices.

Question 16

Pepsi has cooperated with America on the Move,a fitness program,to improve many of its products and their labels,such as reducing the saturated fat in its Frito-Lay Ruffles.This form of social responsibility most directly impacts shareholders.

Accepted Answer

This form of social responsibility does not have a direct impact on shareholders because it is focused on product improvement and promoting healthy lifestyles, rather than financial performance or return on investment.

Question 17

Many executives and corporate boards of directors do not perceive social responsibility as part of their mission or responsibility.These business leaders consider corporate social responsibility to be

Accepted Answer

The statement emphasizes that many executives and corporate boards do not perceive social responsibility as part of their mission or responsibility. The use of the word "beyond" implies that these leaders consider social responsibility to be outside the norms of corporate ethical behavior, which suggests that it is not a basic requirement, a key to operational effectiveness, or a component of basic business ethics. The statement does not mention the AMA ethical value of "Do no harm," so option B cannot be the correct choice. Therefore, the best choice is E.

Question 18

Which of the following is based on the principle that everything we need for our survival and well-being depends either directly or indirectly on our natural environment?

Accepted Answer

Sustainability is based on the principle that everything we need for our survival and well-being depends either directly or indirectly on our natural environment. It focuses on meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Question 19

The _______ provides a detailed,multipronged "Statement of Ethics" that can serve as a foundation for marketers by emphasizing how marketers serve not only their organizations but also act as stewards of society.

Accepted Answer

The American Marketing Association provides a detailed "Statement of Ethics" that emphasizes how marketers should act as stewards of society and not just serve their organizations. The other options listed do not provide such a statement or focus on ethical guidelines for marketers.

Question 20

To avoid having ethical situations become problematic for a firm,the short-term goals of each employee must

Accepted Answer

By aligning the short-term goals of each employee with the long-term goals of the firm, employees will be more likely to make ethical decisions that benefit the company in the long run. When employees prioritize achieving their own short-term goals over the company's long-term goals, they may be more inclined to engage in unethical behavior to reach those goals. Therefore, aligning goals is crucial for preventing ethical situations from becoming problematic for a firm.

Quiz 4: Marketing Ethics