Chapter 4

Question 1

ethics

Answer 1

the moral principles and values that govern the actions and decisions of an individual or group

Question 2

laws

Answer 2

societal standards & values that are enforceable in a court of law

Question 3

Ethics vs. Laws

Answer 3

• Ethics: your personal principles and values
• Laws: society’s values & standards

Question 4

4 possible reasons for the present state of ethical conduct in the US

Answer 4

1. Increased pressure on business people to make decisions in a society characterized by diverse value systems
2. Growing tendency for business decisions to be judged publicly by groups w/ different values/interest
3. Public’s expectations of ethical business behavior has increased
4. Ethical business conduct may have declined

Question 5

4 Factors That Influence Ethical Marketing Behavior

Answer 5

1) societal culture and norms
2) business culture and industry practices
3) corporate culture and expectations
4) personal moral philosophy and ethical behavior

Question 6

Societal Culture

Answer 6

Understands moral behavior in business activities
-serves as a socializing force that dictates what’s morally right & just
Ex: UPS-Although languages/cultures around the world may be different, we do not change our ethical standards

Question 7

Business Culture

Answer 7

Consists of the effective rules of the game, the boundaries b/w competitive & unethical behavior, & the codes of conduct in business dealings
-Affects ethical conduct both in the exchange relationship b/w sellers & buyers and in the competitive behavior among sellers

Question 8

Ethical exchanges

Answer 8

exchanges between sellers and buyers should result in both parties being better off after a transaction

Question 9

caveat emptor

Answer 9

let the buyer beware

Question 10

Consumer Bill of Rights

Answer 10

Created by JFK & codified the ethics of exchange b/w buyers/sellers

the right to safety
the right to be informed
the right to choose
the right to be heard

Question 11

Right to Safety

Answer 11

Safety standards for products sold in the U.S

Question 12

Right to be informed

Answer 12

marketers have an obligation to give consumers complete and accurate information about products and services

Question 13

Right to choose

Answer 13

Variety of products

Question 14

Right to be heard

Answer 14

consumers should have access to public-policy makers regarding complaints about products and services

Question 15

Two kinds of unethical behavior

Answer 15

economic espionage
corruption

Question 16

1. Economic Espionage

Answer 16

Secret collection of trade secrets/proprietary information about a company’s competitors
-ILLEGAL/UNETHICAL & carries serious criminal penalties for the offending individual/business
Ex: Illegal trespassing, theft, fraud misrepresentation, electronic hacking, etc

Question 17

2. Corruption

Answer 17

Unethical conduct by a person entrusted w/ a position of authority, often to acquire a personal benefit
Ex: Bribes, kickbacks, & graft
-most common jn B2B & gov marketing

Question 18

Corporate Culture

Answer 18

the set of values, ideas, and attitudes that is learned and shared among the members of an organization

-Defined by corporate ethics code & ethical behavior of top man/co workers

Question 19

Code of Ethics

Answer 19

a formal statement of ethical principles and rules of conduct

-Ethics codes addresses contributions to gov officials/political parties, customer/supplier relations, conflicts of interest, accurate record keeping

Question 20

Whistleblowers

Answer 20

employees who report unethical or illegal actions of their employers

Question 21

Personal Moral Philosophy

Answer 21

a person’s view of how he or she should behave

Question 22

Moral Philosophy

Answer 22

principles, rules, and values people use in deciding what is right or wrong
-learned through the process of socialization w/friends, family, & formal education

Question 23

2 Types of Personal Moral Philosophies

Answer 23

1. moral idealism
2. utilitarianism

Question 24

moral idealism

Answer 24

individual rights or duties as universal, regardless of the outcome

Ex: draw the line, there are rights & that’s it

Question 25

Utilitarianism

Answer 25

Emphasis on the greatest good for the "greatest number of people" (cost/benefit trade off) Ex: doing a wrong if it benefits a lot of people

Question 26

Corporate Social Responsibility

Answer 26

organizations are part of a larger society & are accountable to that society for their actions

Question 27

3 Concepts of Corporate Social Responsibility

Answer 27

1) profit responsibility 2) stakeholder responsibility 3) societal responsibility

Question 28

profit responsibility

Answer 28

holds that companies have a simple duty: to maximize profits for their owners or stockholders (make money)

Question 29

stakeholder responsibility

Answer 29

focuses on the obligations an organization has to those who can affect achievement of its objective including consumers, emps, suppliers, distributors

Question 30

societal responsibility

Answer 30

refers to obligations that organizations have (1) to the preservation of the ecological environment and (2) to the general public

Question 31

Triple Bottom Line

Answer 31

People, planet, profit 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

Question 32

Sustainable Marketing

Answer 32

seeks to meet today's (global) economic, environmental, and social needs without compromising the opportunity for future generations to meet theirs

Question 33

green marketing

Answer 33

marketing efforts to produce, promote, and reclaim environmentally sensitive products

Question 34

cause marketing

Answer 34

occurs when the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products

Question 35

Social Audit

Answer 35

a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility

Question 36

Social Audit Steps

Answer 36

1) recognition of responsibility 2) identification of a mission 3) determination of priorities 4) specification of resources 5) evaluation of results

Question 37

sustainable development

Answer 37

involves conducting business in a way that protects the natural environment & embraces diversity, equity, & inclusion in its business practices while making economic progress

Question 38

unethical consumer behavior is influenced by

Answer 38

1) A belief that a consumer can get away with the act & it's worth doing 2) the rationalization that the act is justified/driven by forces outside the individual (people)

Question 39

Even though consumers are sensitive to ecological issues they

Answer 39

1) may be unwilling to sacrifice convenience & pay higher prices to protect the environment 2) lack the knowledge to make informed decisions dealing w/ the purchase, use, disposition of products

Question 40

Greenwashing

Answer 40

the exaggerated or false marketing of a product, good, or service as environmentally friendly