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Darwin's company is facing a difficult ethical issue. The firm has identified the various stakeholders and their issues and gathered the available data. Everyone with an interest in the issue has engaged in brainstorming and evaluation of alternatives. Management reviewed and refined the alternatives. It should now choose the course of action that


A) maximizes profits.
B) creates the least possible publicity.
C) involves the fewest employees.
D) minimizes costs.
E) seems best after weighing the concerns of all stakeholders.

F) C) and E)
G) C) and D)

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A meat packing company discovers that six months ago it unknowingly distributed meat from a cloned cow. The firm is unaware of any specific risks to humans consuming the meat; however, some scientists have raised questions, and some consumers are afraid of possible future problems. The meat company has to decide whether to make this matter public. How should it begin the process of making an ethical decision?


A) Brainstorm the available alternatives.
B) Ask its managers to vote for or against public disclosure.
C) Let the board of directors decide what to do.
D) Identify the issues raised by the situation.
E) Find out who purchased the meat, and offer them refunds in return for their silence.

F) A) and E)
G) A) and B)

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Multinational corporations are recognizing their responsibility to the people who make their products


A) when public attention might embarrass the corporation.
B) if the local government suggests that the company pay bribes to officials.
C) even if they aren't their employees.
D) unless another firm actually employs the workers.
E) when it suits them financially.

F) All of the above
G) None of the above

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Why do the authors state that "using profit as the sole guiding light for corporate action" can harm the company?

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Decisions to maximiz...

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What short-run versus long-run ethical dilemma do marketers often face?

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Doing what is beneficial for t...

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Deceptive advertising and promotion of inferior products are examples of __________ ethical issues.


A) accounting
B) marketing
C) social
D) finance
E) economic

F) A) and E)
G) A) and D)

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Explain why people may make unethical decisions. How can a firm ensure that the people who work for it make ethical decisions?

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Every individual is a product of his or ...

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If Melissa decides to sell the best ice cream on earth, and intends to establish a strong ethical climate in her organization, during which phase of the strategic marketing planning process should she introduce ethical considerations?


A) Planning
B) Implementation
C) Control
D) Experience
E) Ethics

F) C) and D)
G) None of the above

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Denny is considering the question, "Did our actions have a negative impact on any stakeholder group?" Denny is addressing marketing ethical issues in the __________ phase of the strategic marketing planning process.


A) planning
B) control
C) implementation
D) brainstorming
E) situation analysis

F) D) and E)
G) None of the above

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How might a technology company like Apple ensure that it behaves in a socially responsible way toward its customers?


A) By protecting the privacy of personal information collected on its website.
B) By adhering to government-mandated safety standards in its stores.
C) By ensuring that it pays its employees fairly.
D) By ensuring that its packaging materials are recyclable.
E) Social responsibility isn't relevant where customers are concerned; it has to do with serving society as a whole.

F) None of the above
G) A) and D)

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What types of unethical behavior are most frequently encountered in marketing?

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Answers will vary but a survey of chief ...

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During which phase(s) of the strategic marketing planning process are ethical issues likely to arise?

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Issues can...

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When looking at ethical issues associated with the strategic marketing planning process, questions


A) should only be addressed during the evaluation stage.
B) should never be asked; only managers should deliberate marketing ethical issues.
C) vary at each stage of the process.
D) are never asked during the implementation stage.
E) always follow a standard format.

F) A) and C)
G) A) and B)

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Why are marketers often singled out among business disciplines as the cause of consumers' ethical concerns?

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Unlike people in accounting or finance, ...

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


A) internal, controllable marketing issues.
B) issues that don't even need to be discussed in ethical firms.
C) marketing issues but not ethical issues.
D) marketing ethical issues.
E) ethical issues but not marketing issues.

F) All of the above
G) A) and C)

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When auditing expenses claimed by the university president, the auditors found extravagant spending on $1,000 per night hotels, banquets, and gourmet restaurants. The president was fired, alumni donations declined, and staff members-who were disturbed by the extravagance while staff salaries were frozen-quit their jobs. This example illustrates


A) that universities are more corrupt than companies.
B) that the extravagant spending should have been kept quiet to minimize damage to the university.
C) that the impact of unethical actions can affect the organization in unanticipated ways.
D) the need to identify issues.
E) the lack of information needed to make ethical decisions.

F) C) and E)
G) A) and B)

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Advertising executives are rated as having higher ethical standards than lawyers according to recent Gallup poll data.

A) True
B) False

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Ethical issues are likely to arise at each stage of the strategic marketing planning process.

A) True
B) False

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Alicia has been asked to approve a marketing campaign that, although it is not illegal, promotes food products to children. She is concerned that the food products are not particularly nutritious, although they are not as bad for children as some others sold by competitors. She reviews the tests in the Ethical Decision-Making Metric, and she decides her best course of action is to


A) ignore the metric as unworkable, since the campaign might pass some of the tests and fail others.
B) consider the profit potential first; then explore the vague tests in the metric.
C) not worry about the children; their parents are likely to make the buying decision, and they should be able to decide for themselves.
D) put the campaign on hold while she explores with the staff how they approached the ethical issues.
E) consult the firm's code of ethics for guidance and leave personal ethical considerations out of the decision-making process.

F) All of the above
G) B) and C)

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Briefly describe the three phases of the strategic marketing planning process and give one example of an ethical dilemma that might arise during each phase.

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Answers will vary but must lis...

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