Chapter 4

Question 1

Ethics

Answer 1

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

Question 2

Laws

Answer 2

Society’s values and standrads that are enforceable in the court

Question 3

Business culture

Answer 3

comprise the effective rules of the game, he boundaries between competitive and unethical
behaviour and the
codes of conduct in business

Question 4

Caveeats emptor

Answer 4

The legal concept of let the buyer beware

Question 5

What does the right to be informed mean?

Answer 5

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

Question 6

What does it mean to be heard?

Answer 6

Consumers should have access to company or public policy makers regarding comments or
complaints about
products and services

Question 7

What are 2 most common types of unethical behaviour?

Answer 7

1. Economic espionage: the collection of trade secrets or proprietary information about a
   company’s
   competitors
2. Giving and receiving bribes

Question 8

What is a code of ethics?

Answer 8

A formal statement of ethical principles of rules and conduct

Question 9

What are the three concepts of social responsibility?

Answer 9

1. profit responsibility: Idea that companies have a simple duty- to maximise profits
   2.Societal responsibility: refers to obligations that organizations have to 91) the preservation
   of the ecological
   environment and (2) the general public
2. Stakeholder responsibility: obligations one has to achieve the organizations objectives
   What is a triple bottom line?
   Recognition of the need for organization to improve the state of the people, the plant and
   profit

Question 10

What is ISO 14001

Answer 10

Worldwide standards for green marketing practices

Question 11

What is cause marketing?

Answer 11

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

Question 12

What is a social audit?

Answer 12

A systematic assessment of a firms objective strategies and performance in the domain of
social responsibility

Question 13

What is utilitarianism?

Answer 13

A personal philosophy that focuses on the greatest good for the greatest number

Question 14

What is moral idealism?

Answer 14

A personal philosophy that concerns certain individual rights and duties as universal
regardless of the outcome

Question 15

What are whistle blowers?

Answer 15

employee who report unethical or illegal action to their employers face recrimination