ch 3

Question 1

Top managers who behave ethically can influence others in an organization to behave ethically

Answer 1

T

Question 2

Sustainability refers a business’s concern for society’s welfare.

Answer 2

F. Sustainability refers to the idea that socially responsible companies will outperform their peers by
focusing on the world’s social problems and viewing them as opportunities to build profits and help the
world at the same time.

Question 3

Sustainability refers to the idea that socially responsible companies will outperform their peers by
focusing on the world’s social problems and viewing them as opportunities to build profits and help the
world at the same time.

Answer 3

T

Question 4

The foundation for the pyramid of corporate social responsibility is philanthropic responsibility.

Answer 4

F. The pyramid of corporate social responsibility portrays economic performance as the foundation for
the other three responsibilities (legal, ethical, and philanthropic)

Question 5

The development and marketing of products designed to minimize negative effects on the physical
environment or to improve the environment is sustainability.

Answer 5

F. Green Marketing is the development and marketing of products designed to minimize negative effects
on the physical environment or to improve the environment.

Question 6

refers to the moral principles or values that generally govern the conduct of an individual or a
group.
a.
Social consensus
b.
Sustainability
c.
Virtue
d.
Ethics

Answer 6

D

Question 7

_____ is the idea that socially responsible companies will outperform their peers by focusing on the world’s social problems and viewing them as opportunities to build profit and help the world at the same time.
a. Sustainability
b. Philanthropy
c. Cause marketing
d. Creative ethics
e. International ethics

Answer 7

A

Question 8

____is the concern of business for the long-range welfare of both the company and its relationships to the society within which it operates.
a. Consumerism
b. Corporate social responsibility
c. Cultural sensitivity
d. Conventional morality
e. Environmental consideration

Answer 8

B

Question 9

Corporate social responsibility is defined as the:
a. belief that the legal system defines ethical behavior
b. development of inclusive codes of ethics
c. rules by which social rewards are attained
d. business’s concern for society’s welfare
e. coordination of social programs for publicity purposes

Answer 9

D

Question 10

For every home built by Habitat for Humanity, Whirlpool Corporation has given and continues to give free kitchen appliances to the deserving family. This donation of appliances is an example of how companies assume their:
a. corporate social responsibility
b. ethical conveyance
c. duty to engage in cause marketing
d. right to engage in social marketing
e. multiculturalism

Answer 10

A

Question 11

NSTAR Gas & Electric Company in Boston provides continuing financial support for an injury prevention program run by the Children’s Hospital Boston. This funding is an example of:
a. corporate social responsibility
b. ethical conveyance
c. a duty to engage in cause marketing
d. a right to engage in social marketing
e. multiculturalism

Answer 11

A

Question 12

Which of the following is an argument used to support corporate social responsibility (CSR)?
a. The free market, not companies, should decide what is best for the world.
b. CSR can be a profitable undertaking.
c. Businesses are not responsible for social or environmental problems.
d. Businesses don’t have the expertise to make social decisions.
e. All of the above are arguments used in support of CSR.

Answer 12

B

Question 13

The four components of the pyramid of corporate social responsibility are:
a. sustainability, creativity, profit, and culture
b. organizational culture, creativity imagery, economic performance, and objectivity
c. organizational, financial, social, and cultural responsibilities
d. sustainability, legality, creativity, and competition
e. economic, legal, ethical, and philanthropic responsibilities

Answer 13

E

Question 14

One of the favorite foods in Thailand is shark fin soup. A San Francisco-based organization claimed
the soup made by its leading producer contained mercury poison, yet the leading producer of shark fin
soup wanted to continue selling the soup because it believes it has a responsibility to its investors to be
profitable. In terms of the pyramid of corporate social responsibility, this indicates that the soup
manufacturer was operating at a(n) _____ responsibility level.

Answer 14

economic

Question 15

At which level of the pyramid of corporate social responsibility must a business “play by the rules”?
economic a.
philanthropic b.
legal c.
ethical d.
conformis E

Answer 15

C

Question 16

Japanese law prohibits the storage of more than 50 pounds of explosive at any single site in the nation.
Every night Universal Studios Japan hosts a fireworks display. The theme park recently came under
government investigation when allegations were made that the park was detonating more than 50
pounds of explosives in its nightly fireworks displays. If the allegations are true, in terms of the
pyramid of corporate social responsibility, then Universal Studios Japan is not operating at a(n) _____
responsibility level.
legal a.
philanthropic b.
ethical c.
economic d.
cultural e.

Answer 16

A

Question 17

Japanese law prohibits the storage of more than 50 pounds of explosive at any single site in the nation.
Every night Universal Studios Japan hosts a fireworks display. The theme park recently came under
government investigation when allegations were made that the park was detonating more than 50
pounds of explosives in its nightly fireworks displays. If the allegations are true, in terms of the
pyramid of corporate social responsibility, then Universal Studios Japan is not operating at a(n) _____
responsibility level.
legal a.
philanthropic b.
ethical c.
economic d.
cultural e.

Answer 17

A

Question 18

In the future, electrical power may come from quantum nucleonics, a form of nuclear power that
produces no residual radiation. The ability to use this form of power will require equipment
adaptations, but it will solve the world’s need for clean and efficient power. Companies that replace
inefficient sources of power with quantum nucleonics only after they are required to by the
Environmental Protection Agency (EPA) are operating at a(n) _____ responsibility level.
legal a.
philanthropic b.
ethical c.
economic d.
cultural e.

Answer 18

A

Question 19

At what level of the pyramid of corporate social responsibility will firms do what is right, just, and?
economic a.
philanthropic b.
legal c.
ethical d.
moral e.

Answer 19

D

Question 20

Girls between the ages of 8 and 15 are one of the growing markets for high-end shoe manufacturers,
and podiatrists say the trend is leading to many stylish young girls with grown-up foot problems. Shoe
manufacturers who develop and market adult-styled shoes to this group are not operating at a(n) _____
responsibility level of the pyramid of corporate social responsibility.
legal a.
philanthropic b.
ethical c.
economic d.
cultural e.

Answer 20

C

Question 21

At what level of the pyramid of corporate social responsibility will a company be a good corporate
citizen?
economic a.
philanthropic b.
social c.
legal d.
ethical e.

Answer 21

B

Question 22

Which of the following statements best describes ethics?

a. Ethics are universally consistent across all individuals and groups.
b. Ethics are primarily determined by governmental regulations.
c. Ethics refer to the moral principles or values guiding individual or group behavior.
d. Ethics are solely influenced by an individual’s upbringing and family background.

Answer 22

C

Question 23

Which of the following statements best describes laws?

a. Laws are subjective and vary from person to person.
b. Laws are moral principles guiding individual behavior.
c. Laws are rules recognized by a country or community that regulate actions and are enforceable with penalties.
d. Laws only apply to specific groups within society.

Answer 23

C

Question 24

Which of the following statements best describes the relationship between legality and ethics?

a. Actions that are legal are always considered ethical.
b. Actions that are illegal are always considered unethical.
c. Actions can be legal but still seen as unethical.
d. Ethics and legality are entirely unrelated concepts.

Answer 24

C

Question 25

Which of the following statements accurately describes laws?

a. Laws only apply to specific groups within society.
b. Laws are unwritten and vary depending on personal beliefs.
c. Laws apply universally to everyone in society and are typically written down.
d. Laws are only enforceable for certain individuals based on their social

Answer 25

C

Question 26

Which of the following factors are known to reduce unethical decision making within a company?

a. A culture of high tolerance for unethical behavior within the company.
b. Top management’s indifference towards ethical behavior.
c. Low tolerance for unethical behavior within the company.
d. Lack of consensus on social norms among managers.

Answer 26

C

Question 27

A code of ethics can be an effective internal control on behavior, which is more desirable than external
controls like government regulations.

Answer 27

T

Question 28

All of the following statements about the creation of a code of ethics are true EXCEPT:
a. A written code helps employees avoid confusion when determining whether their decisions are ethical.
e. A code can be an effective internal control on behavior. b.The process of formulating the code facilitates discussions that ultimately create better decisions.
d. A code helps employees identify what their firm recognizes to be acceptable business practices.
d.A code guarantees ethical behavior among a firm’s employees.

Answer 28

D

Question 29

Unfortunately, most businesspeople have not progressed beyond the self-centered and manipulative
actions of preconventional morality.

Answer 29

F

Question 30

Ethical development can be thought as having three levels. The most basic, childlike level is the _____
stage.
preconventional morality a.
transformationalism b.
conventional morality c.
postconventional morality d.
actualized morality e.

Answer 30

A

Question 31

Hallie is a calculating, self-centered salesperson. She never engages in relationship marketing. She
looks on any sales situation as a “win-lose” situation, and she believes any legal method she can use is
justified when she wins. Hallie is most likely at the _____ stage of ethical development.
preconventional morality a.
transformationalism b.
conventional morality c.
egocentrism d.
basic morality e.

Answer 31

A

Question 32

Which level of ethical development moves from an egocentric viewpoint toward the expectations of
society?
postconventional morality a.
conventional morality b.
preconventional morality c.
secondary morality d.
primary morality e.

Answer 32

B

Question 33

Ruthanne Ross is a sales manager for Pampered Chef, a company that sells kitchen tools and other aids
for cooking through party plans. She is very concerned about making sure her salespeople understand
the importance of treating each customer fairly and developing long-term relationships with them. She
asks that before a sale is made, the salesperson should make sure customers can afford the items and
are not buying due to social pressures. Ross is most likely at the _____ stage of ethical development.
preconventional morality a.
transformationalism b.
conventional morality c.
postconventional morality d.
actualized morality e.

Answer 33

D

Question 34

In the _____ stage of ethical development, loyalty and obedience to the organization or to society
become paramount.
preconventional morality a.
transformationalism b.
conventional morality c.
postconventional morality d.
actualized morality e.

Answer 34

C

Question 35

The _____ stage of ethical development represents the morality of the mature adult.
preconventional morality a.
transformationalism b.
conventional morality c.
postconventional morality d.
actualized morality e.

Answer 35

D

Question 36

When writing codes of ethics, businesses must ensure their codes deal with every possible situation

Answer 36

F

Question 37

The greater the number of persons affected by a negative outcome, the more likely that marketers will
recognize a problem as unethical.

Answer 37

T

Question 38

All of the following are factors influencing ethical decision making and judgments EXCEPT:
rate of prosecution a.
top management actions on ethics b.
probability of a harmful outcome c.
number of people to be affected d.
social consensus e.

Answer 38

A

Question 39

Which of the following factors will influence ethical decision making and judgments?
likelihood of stakeholder responsibility a.
proactive nature of organizational sustainability b.
potential magnitude of the consequences c.
probability of ethical consensus d.
consequence of adjacencies e.

Answer 39

C

Question 40

Which of the following best defines philanthropic responsibilities?

a. Focusing solely on maximizing profits without considering societal welfare.
b. Ignoring the quality of life of employees and stakeholders.
c. Contributing to societal welfare and enhancing the quality of life.
d. Prioritizing personal gain over community well-being.

Answer 40

C

Question 41

Which of the following statements accurately describes cause-related marketing?

a. Cause-related marketing focuses solely on generating profits for corporations.
b. Cause-related marketing involves corporations partnering with nonprofits or contributing to charitable organizations to benefit society.
c. Cause-related marketing aims to exploit societal issues for corporate gain.
d. Cause-related marketing is primarily concerned with increasing shareholder value.

Answer 41

B