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Making counterfeit copies of Gucci purses, Tommy Hilfiger sportswear, and other international brands is pervasive in some countries because laws protecting intellectual property are unclear and sporadically enforced. A business introducing a product into such a country needs to know that its ________ may lead to trademark infringements.


A) religious precepts
B) antecedent states
C) moral idealism
D) societal culture and norms
E) utilitarianism

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

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Nestlé's marketing of Good Start infant formula promoted the product as hypoallergenic. However, some severely milk-allergic infants experienced serious side effects after using Good Start, including convulsive vomiting. A Nestlé vice president defended the claim and product, saying, "I don't understand why our product should work in 100 percent of cases. If we wanted to say it was foolproof, we would have called it allergy-free. We call it hypo-, or less, allergenic." The vice president's statement exemplifies which of the following philosophies?


A) existentialism
B) moral idealism
C) communism
D) socialism
E) utilitarianism

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

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A poll by a public opinion research firm found that 67 percent of North Americans are willing to boycott products on ethical grounds. This survey did not ask if the person who was acting on ethical grounds would first see if the boycott was based on facts. Which of the following statements describes a conclusion that should be drawn from this information?


A) If you are an ethical person, you should act according to your instincts.
B) Realistically speaking, in order to stay in business, all businesses must occasionally behave unethically.
C) All businesses will act unethically unless forced by consumers to act morally.
D) There is nothing consumers can do to stop unethical business activities.
E) Boycotting a product without knowing the facts can be viewed as unethical.

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

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According to a Toyota executive, "After Superstorm Sandy, the Food Bank was having a problem fulfilling the needs of all the displaced residents, so we implemented a Toyota production system to help them package and distribute food more efficiently." This is an example of which concept of social responsibility?


A) societal responsibility
B) value responsibility
C) benefit responsibility
D) profit responsibility
E) stakeholder responsibility

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

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The 3M company stopped production of a chemical it had made for more than 40 years when tests showed the chemical could be accumulated in human tissue, even though the products in which it was used had no known harmful health or environmental effect. The voluntary action by 3M is an example of


A) individualism.
B) utilitarianism.
C) existentialism.
D) moral idealism.
E) socialism.

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

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Laws refer to


A) a specific set of behaviors a given society considers to be ethical.
B) society's values and standards that are enforceable in the courts.
C) the agreed upon codes of behavior for a given nation, community, religious group, or family.
D) written documentation of a prescribed set of attitudes, beliefs, and values.
E) a code of ethics that defines what may be done in specific business circumstances.

F) B) and E)
G) D) and E)

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Source Perrier S.A., the supplier of Perrier bottled water, exercised ________ when it recalled 160 million bottles of water in 120 countries after traces of a toxic chemical were found in 13 bottles. The recall cost the company $35 million and the profit from $40 million in lost sales. Even though the chemical level was not harmful to humans, the president of the company believed it was his duty to remove "the least doubt, as minimal as it might be, to weigh on the image of the quality and purity of our product."


A) moral idealism
B) utilitarianism
C) cause marketing
D) profit responsibility
E) stakeholder responsibility

F) C) and D)
G) A) and C)

Correct Answer

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Moral idealism refers to


A) a personal moral philosophy that focuses on the greatest good for the greatest number by assessing the costs and benefits of the consequences of ethical behavior.
B) a democratic consensus of moral principles and laws that govern the behavior of individuals based on legislation adopted at the federal, state, and local levels.
C) a societal moral philosophy based on the Golden Rule of the Judeo-Christian ethic embodied in the U.S. Constitution's Bill of Rights.
D) a formal statement of ethical principles and rules of conduct.
E) a personal moral philosophy that considers individual rights or duties as universal, regardless of the outcome.

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

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The idea that organizations are part of a larger society and are accountable to that society for their actions is referred to as


A) stakeholder responsibility.
B) social responsibility.
C) profit responsibility.
D) utilitarianism.
E) moral idealism.

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

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If a representative of a hotel group offered an existing customer a free night in a hotel property, and when the customer checked into the hotel, the concierge asks the guest to attend a presentation about the hotel group's time share opportunities, this business practice would probably fall into which of the following categories?


A) ethical but illegal
B) ethical and legal
C) unethical and illegal
D) unethical but legal
E) In today's media age, this practice has become universal; any bias is implied and need not be directly stated under the caveat emptor doctrine.

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

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According to the personal moral philosophy of ________, if the benefits of a behavior exceed the costs, that behavior is ethical.


A) hedonism
B) utilitarianism
C) existentialism
D) moral idealism
E) socialism

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

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Dell Inc. learned that the lithium-ion batteries in its notebook computers posed a fire hazard to consumers. The company recalled 2.7 million batteries and gave consumers a replacement before any personal injuries resulted. Dell was most likely concerned with which Consumer Bill of Rights principle?


A) right to choose
B) right to be informed
C) right to safety
D) right to be heard
E) right to satisfaction

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

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During its Drive to End Hunger campaign to help fight hunger among nearly nine million older Americans, Quaker State donated 25 cents per bottle sold of five-quart specially-marked oil products to the AARP Foundation that works on this issue. This is an example of


A) philanthropic marketing.
B) corporate altruism.
C) the marketing concept.
D) green marketing.
E) cause marketing.

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

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The effort to meet today's (global) economic, environmental, and social needs without compromising the opportunity for future generations to meet theirs is referred to as


A) sustainable marketing.
B) recycle marketing.
C) cause marketing.
D) environmental marketing.
E) recycling.

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

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ISO stands for


A) International Service Organizations.
B) Integrated Standards Organization.
C) International Standards Organization.
D) International Sustainable Offerings.
E) Integrated Solutions Organization.

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

Correct Answer

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Ethics refers to the


A) religious tenets of a country or ethnic region that shape its culture.
B) social norms of a nation, community, or family.
C) values and standards of society that are enforceable in the courts.
D) moral principles and values that govern the actions and decisions of an individual or group.
E) universal laws of man that go beyond an individual or a group's beliefs of nations or religions.

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

Correct Answer

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The giving and receiving of bribes, kickbacks, and graft are the most common forms of


A) economic espionage.
B) utilitarianism.
C) business intelligence.
D) oligopoly.
E) corruption.

F) B) and D)
G) B) and E)

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There are three concepts of social responsibility, each relating to particular constituencies. Societal responsibility is characterized by


A) the triple bottom line, to achieve sustainable, long-term growth.
B) a focus on the obligations an organization has to those who can affect achievement of its objectives.
C) an engagement in open and free competition without deception or fraud.
D) an unrelenting customer focus.
E) a focus on seller-oriented outcomes.

F) C) and D)
G) A) and D)

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At 3M, the "Pollution Prevention Pays" (3P) program has generated over 11,000 3P projects that eliminated more than two billion pounds of air, water, and solid-waste pollutants from the environment. This is an example of


A) proactive marketing.
B) green marketing.
C) consumerism.
D) an ecological code of ethics.
E) cause marketing.

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

Correct Answer

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China is the world's largest tobacco-producing country and has 300 million smokers. Approximately 1 million Chinese die annually from smoking-related illnesses. This figure is expected to rise to more than 3 million by 2050. China restricts tobacco imports. U.S. trade negotiators advocate free trade, thus allowing U.S. tobacco companies to market their products in China. The U.S. trade negotiators are acting


A) ethically but illegally.
B) ethically and legally.
C) unethically and illegally.
D) unethically but legally.
E) in ways that cannot be determined by the information provided.

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

Correct Answer

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