A social audit refers to

A social audit refers to



A. a systematic assessment of a firm's compliance to fair hiring practices and commitment to diversity.
B.a company-wide assessment of employees at all levels to determine the compliance to the organization's code of ethics.
C. conducting business in a way that protects the natural environment while making economic progress.
D. a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility.
E. the ability to understand one's own emotions and the emotions of people with whom one interacts on a daily basis.


Answer: D

Which of the following statements concerning cause marketing is MOST accurate?

Which of the following statements concerning cause marketing is MOST accurate?




A The vast majority of consumers say they will switch to a brand that supports a good cause provided theprice and quality of the brands are equal.
B. The profits generated by cause marketing are usually paid in "goodwill" rather than actual revenue. CThe positive effects of cause marketing are significant during the promotion, but they lose their benefitalmost immediately after the promotion runs its course.
D. Cause marketing rarely creates a point of difference for the firm that engages in this marketing practice.
E Women are much more suspicious about the sincerity of cause marketing programs than men;therefore, their contributions are significantly less.

Answer: A & C

When American Express pioneered cause marketing, it raised $1.7 million to renovate a national icon, increased usage among cardholders, and

When American Express pioneered cause marketing, it raised $1.7 million to renovate a national icon, increased usage among cardholders, and



A. became the only credit card accepted for admission to the sight.
B. decreased outstanding debt on previously unpaid credit cards.
C. was able to raise interest rates without facing customer complaints.
D. received a tax credit that more than paid for the original campaign.
E. attracted new cardholders.


Answer: E

Cadbury Canada recognized that education is crucial to lifting Ghanaian children out of poverty. Cadbury worked with its lead partner, World Vision Ghana, to identify every child in cocoa-farming villages who had to walk at least three kilometers or more each way to school. In the spring of 2009, Cadbury Canada launched a program that encouraged consumers to enter the bar codes of their candy and chocolate bars online. Each entry represented one bicycle part and 100 parts "built" one bike. The biggest-ever shipment of bicycles to Ghana—5,000 in total—is helping thousands of kids get to school and get a head start on a brighter future. The is an example of

Cadbury Canada recognized that education is crucial to lifting Ghanaian children out of poverty. Cadbury worked with its lead partner, World Vision Ghana, to identify every child in cocoa-farming villages who had to walk at least three kilometers or more each way to school. In the spring of 2009, Cadbury Canada launched a program that encouraged consumers to enter the bar codes of their candy and chocolate bars online. Each entry represented one bicycle part and 100 parts "built" one bike. The biggest-ever shipment of bicycles to Ghana—5,000 in total—is helping thousands of kids get to school and get a head start on a brighter future. The is an example of



A. philanthropic marketing.
B. cause marketing.
C. societal marketing.
D. public relations marketing.
E. transactional marketing.



Answer: B

Cadbury Canada recognized that education is crucial to lifting Ghanaian children out of poverty. Cadbury worked with its lead partner, World Vision Ghana, to identify every child in cocoa-farming villages who had to walk at least three kilometers or more each way to school. In the spring of 2009, Cadbury Canada launched a program that encouraged consumers to enter the bar codes of their candy and chocolate bars online. Each entry represented one bicycle part and 100 parts "built" one bike. The biggest-ever shipment of bicycles to Ghana—5,000 in total—is helping thousands of kids get to school and get a head start on a brighter future. The is an example of

Cadbury Canada recognized that education is crucial to lifting Ghanaian children out of poverty. Cadbury worked with its lead partner, World Vision Ghana, to identify every child in cocoa-farming villages who had to walk at least three kilometers or more each way to school. In the spring of 2009, Cadbury Canada launched a program that encouraged consumers to enter the bar codes of their candy and chocolate bars online. Each entry represented one bicycle part and 100 parts "built" one bike. The biggest-ever shipment of bicycles to Ghana—5,000 in total—is helping thousands of kids get to school and get a head start on a brighter future. The is an example of



A. philanthropic marketing.
B. cause marketing.
C. societal marketing.
D. public relations marketing.
E. transactional marketing.



Answer: B

Post supports the Boys & Girls Clubs. For every coupon found on a box of any of the Post brands redeemed, Post promises to donate $0.10 to the organization. This is an example of

Post supports the Boys & Girls Clubs. For every coupon found on a box of any of the Post brands redeemed, Post promises to donate $0.10 to the organization. This is an example of



A. cause marketing.
B. philanthropic marketing.
C. goodwill marketing.
D. public relations marketing.
E. societal marketing.



Answer: A

A ota dealership in British Columbia, Canada, donated $50 to the Make-A-Wish Foundation of Canada for each Toyota purchased during a particular month. This is an example of how a small business can engage in

A ota dealership in British Columbia, Canada, donated $50 to the Make-A-Wish Foundation of Canada for each Toyota purchased during a particular month. This is an example of how a small business can engage in




A. philanthropic marketing.
B. cause marketing.
C. marketing altruism.
D. public relations marketing.
E. societal marketing.


Answer: B

Spiegel Inc. sold Christmas cards on page two of its holiday retail catalog. Spiegel designed and printed the cards. Proceeds from the sales of the Christmas cards purchased through the catalog went to benefit the Starlight Children's Foundation and the National Center for Missing and Exploited Children. This is an example of

Spiegel Inc. sold Christmas cards on page two of its holiday retail catalog. Spiegel designed and printed the cards. Proceeds from the sales of the Christmas cards purchased through the catalog went to benefit the Starlight Children's Foundation and the National Center for Missing and Exploited Children. This is an example of




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

Cause marketing programs incorporate all three concepts of social responsibility by addressing public concerns, satisfying customer needs, and

Cause marketing programs incorporate all three concepts of social responsibility by addressing public concerns, satisfying customer needs, and




A. protecting the environment.
B. enhancing corporate sales and profits.
C. following industry-specific codes of ethics.
D. fulfilling societal objectives.
E. demonstrating ethical behavior.


Answer: b

A key difference between cause marketing and a charitable contribution is

A key difference between cause marketing and a charitable contribution is




A. a charitable contribution provides an organization with a lower tax deduction.
B. there is no limit to the amount of charitable deductions a firm can make, but a firm is limited to the number of cause marketing efforts it can make during a fiscal year.
C. charitable donations are contributed at the sole discretion of the firm; cause marketing is the amount isdirectly affected by consumers' purchases.
D. cause marketing is generally linked to public causes and concerns while straight charitablecontributions are generally given to private institutions.
E. there is essentially no difference between a charitable contribution and cause marketing.


Answer: c

Cause marketing refers to

Cause marketing refers to




A.  when the charitable contributions of a firm are tied directly to the customer revenues produced throughthe promotion of one of its products.
B. the 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.
C. marketing services provided at little or no cost for the purpose of promoting or supporting a worthy cause.
D. marketing efforts to produce, promote, and reclaim environmentally sensitive products.
E. when marketing actions that took place actually caused more harm than good.


Answer: a

When the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products, this marketing practice is referred to as

When the charitable contributions of a firm are tied directly to the customer revenues produced through the promotion of one of its products, this marketing practice is referred to as




A. marketing philanthropy.
B. marketing allegiance.
C. relationship marketing.
D. transactional marketing.
E. cause marketing.


Answer: e

ISO 14000 refers to

ISO 14000 refers to




A. a plan to encourage the purchase of "Made in America" products.
B. a global plan to further green marketing.
C an initiative for organizations to support the International Special Olympics Committee and its athleteswithout endangering its nonprofit status.
D. the name of the agreement that created the North American Free Trade Association (NAFTA).
E. a set of standards for registration and certification of a manufacturer's quality management and assurance system based on an on-site audit of practices and procedures developed by the International Standards Organization (ISO).



Answer: b

ISO stands for

ISO stands for



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


Answer: c

FedEx and UPS are converting their delivery trucks with standard diesel engines to more fuel-efficient and cleaner hybrid-electric vehicles, which can cut fuel costs by half and lower fuel emissions by 90 percent. This is an example of

FedEx and UPS are converting their delivery trucks with standard diesel engines to more fuel-efficient and cleaner hybrid-electric vehicles, which can cut fuel costs by half and lower fuel emissions by 90 percent. This is an example of



A. demarketing.
B. triple-top line marketing.
C. preemptive compliance.
D. green marketing.
E. cause marketing.



Answer: d

Many fast food restaurants, including Burger King, McDonald's, and Wendy's, no longer use STYROFOAMTM containers (which do not degrade as quickly as paper in a landfill) for packaging their products. Rather, these firms wrap their burgers in recycled paper wrappers, containers, and bags. These fast-food restaurants are practicing

Many fast food restaurants, including Burger King, McDonald's, and Wendy's, no longer use STYROFOAMTM containers (which do not degrade as quickly as paper in a landfill) for packaging their products. Rather, these firms wrap their burgers in recycled paper wrappers, containers, and bags. These fast-food restaurants are practicing




A. triple-top line marketing.
B. green marketing.
C. consumerism.
D. an ecological code of ethics.
E. cause marketing.


Answer: b

Chrysler recycles thousands of tons of wooden pallets, cardboard, and paper annually. Chrysler cars are 75 percent recyclable. Chrysler's recycling programs are examples of

Chrysler recycles thousands of tons of wooden pallets, cardboard, and paper annually. Chrysler cars are 75 percent recyclable. Chrysler's recycling programs are examples of




A. recycle marketing.
B. cause marketing.
C. green marketing.
D. environmental marketing.
E. triple-top line marketing.


Answer: c

Which of the following is an example of green marketing?

Which of the following is an example of green marketing?




A. McDonald's adding apple snacks to its Happy Meals targeted at children.
B. Lowe's and Home Depot discontinuing the sale of lumber and other wood products.
C. Levi-Strauss marketing prewashed jeans.
D. Joe's Lawn Service offering a special spring cleanup promotion.
E Walmart implementing buying practices that encourage it suppliers to use containers and packing made from corn, not oil-based resins.


Answer: e

At 3M, the "Pollution Prevention Pays" program has generated over 8,000 ideas that eliminated more than 3 billion pounds of air, water, and solid-waste pollutants from the environment. This is an example of

At 3M, the "Pollution Prevention Pays" program has generated over 8,000 ideas that eliminated more than 3 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.


Answer: b

Green marketing refers to

Green marketing refers to



A. the purchasing of products from producers whose farming practices are Fair Trade certified.
B. the marketing efforts taken by new and smaller companies that lack both the experience and resources of their major competitors.
C. the marketing efforts to produce, promote, and reclaim environmentally sensitive products.
D. the marketing of products that have in no way been altered or reprocessed by artificial means.
E. the marketing of those products made exclusively from recycled materials.


Answer: c

Triple-bottom line refers to

Triple-bottom line refers to



A. the 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.
B. the obligations an organization has to those who can affect achievement of its sales, profit, and marketshare objectives simultaneously.
C. the recognition of the need for organizations to be responsible simultaneously to shareholders, employees, and customers.
D. the obligations an organization has to practice profit, stakeholder, and societal responsibility simultaneously.
E three different financial statements prepared in three different formats: one for governmental regulators,one for shareholders, and one for internal use.


Answer: a

The 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 is referred to as

The 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 is referred to as




A. social responsibility.
B. the triple-bottom line.
C. the marketing concept.
D. sustainability.
E. social entrepreneurship.


Answer: b

The maker of Wrigley chewing gum funded a $10 million ad campaign aimed at getting African Americans to use doctors for regular health care maintenance instead of only when they are sick. This is an example of

The maker of Wrigley chewing gum funded a $10 million ad campaign aimed at getting African Americans to use doctors for regular health care maintenance instead of only when they are sick. This is an example of




A. profit responsibility.
B. cause marketing.
C. stakeholder responsibility.
D. societal responsibility.
E. mass marketing.


Answer: d

Most paint is neither biodegradable nor friendly to the environment because it is made with petroleum solvents. A builder who decided to build a subdivision with 500 homes and paint each with an environmentally friendly, soy-based paint (even though it costs more) would be practicing

Most paint is neither biodegradable nor friendly to the environment because it is made with petroleum solvents. A builder who decided to build a subdivision with 500 homes and paint each with an environmentally friendly, soy-based paint (even though it costs more) would be practicing




A. profit responsibility.
B. cause marketing.
C. stakeholder responsibility.
D. mass marketing.
E. societal responsibility.


Answer: e

Societal responsibility refers to

Societal responsibility refers to




A.the obligation that organizations have to (1) the preservation of ecological environment and (2) the general public.
B the obligation of a firm to price its products or services at a level whereby the consumer is treated fairlyand the firm is still able to make a profit.
C. the view that an organization has an obligation to those who can affect the achievement of its objectives.
D. the duty of a firm to maximize profits for its owners or stockholders.
E. the idea that organizations are part of a larger society and are accountable to that society for their actions.


Answer: a

Toyota Motor Corporation executives were widely criticized for their failure in practicing when selected Toyota brands had been linked to sticky gas pedals, which can lead to sudden acceleration problems. The company recalled over 9 million cars worldwide under pressure from the National Highway Traffic Safety Administration and thousands of consumer complaints. After the recall, Toyota sales fell, which affected Toyota employees, suppliers, shareholders, and distributors.

Toyota Motor Corporation executives were widely criticized for their failure in practicing when selected Toyota brands had been linked to sticky gas pedals, which can lead to sudden acceleration problems. The company recalled over 9 million cars worldwide under pressure from the National Highway Traffic Safety Administration and thousands of consumer complaints. After the recall, Toyota sales fell, which affected Toyota employees, suppliers, shareholders, and distributors.



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


Answer: b

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 was found in 13 bottles. The recall cost the company $35 million, and the profit from $40 million in lost sales. Even though the chemical 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."

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 was found in 13 bottles.
The recall cost the company $35 million, and the profit from $40 million in lost sales. Even though the chemical 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


Answer: e

Stakeholder responsibility refers to

Stakeholder responsibility refers to



A. the view that an organization has an obligation to those who can affect the achievement of its objectives.
B. the obligation of a firm to price its products or services at a level whereby the consumer is treated fairly and the firm is still able to make a profit.
C. the duty of a firm to maximize profits for its owners or stockholders.
D. the concept that no expansion or additional research and development will occur until a company is making a profit.
E. the idea that organizations are part of a larger society and are accountable to that society for their actions.



Answer: a

Burroughs Wellcome is the developer and maker of AZT, which is a drug to treat persons afflicted with AIDS. The firm charges each patient $6,500 annually—more than many AIDS patients can afford. This is an example of the manufacturer adhering to its

Burroughs Wellcome is the developer and maker of AZT, which is a drug to treat persons afflicted with AIDS. The firm charges each patient $6,500 annually—more than many AIDS patients can afford. This is an example of the manufacturer adhering to its




A. utopian responsibility.
B. moral idealism.
C. social responsibility.
D. cause marketing strategy.
E. profit responsibility.


Answer: e

The groups primarily served by a firm exhibiting profit responsibility include

The groups primarily served by a firm exhibiting profit responsibility include 



A. the general public, public interest groups, and the environment.
B. consumers, employees, and supplier/distributors.
C. owners and stockholders.
D. the general public, owners, and stockholders.
E. government, owners, and stockholders.


Answer: c

Profit responsibility refers to

Profit responsibility refers to




A. the obligation of a firm to price its products or services at a level whereby the consumer is treated fairlyand the firm is still able to make a profit.
B. the view that an organization has an obligation to those who can affect the achievement of its objectives.
C. the concept that no expansion or additional research and development will occur until a company is making a profit.
D. the idea that organizations are part of a larger society and are accountable to that society for their actions.
E. the duty of a firm to maximize profits for its owners or stockholders.



Answer: e

The residents of Alaska and people throughout the world were outraged when the Exxon Valdez crashed into a shoal and dumped millions of gallons of crude oil into the pristine waters of Prince William Sound. People were upset with Exxon's response to the disaster. The company was slow to admit its mistake and even slower to implement cleanup activities. Exxon was criticized for acting in a manner that would benefit the organization but not society. In short, Exxon did not demonstrate

The residents of Alaska and people throughout the world were outraged when the Exxon Valdez crashed into a shoal and dumped millions of gallons of crude oil into the pristine waters of Prince William Sound. People were upset with Exxon's response to the disaster. The company was slow to admit its mistake and even slower to implement cleanup activities. Exxon was criticized for acting in a manner that would benefit the organization but not society. In short, Exxon did not demonstrate



A. social responsibility.
B. value consciousness.
C. green marketing.
D. profit responsibility.
E. cause marketing.



Answer: a

In 2007, Gap Inc. ended its relationship with 23 foreign production facilities due to code violations. Several closings occurred because of the use of child labor. In response to these events, the Gap created a large team whose purpose is to travel worldwide to ensure compliance with its Code of Vendor Conduct. This is an example of

In 2007, Gap Inc. ended its relationship with 23 foreign production facilities due to code violations. Several closings occurred because of the use of child labor. In response to these events, the Gap created a large team whose purpose is to travel worldwide to ensure compliance with its Code of Vendor Conduct. This is an example of




A. cause marketing.
B. profit responsibility.
C. utilitarianism.
D. moral idealism.
E. social responsibility.



Answer: e

Which of the following statements about social responsibility is most accurate?

Which of the following statements about social responsibility is most accurate?




A. The three concepts of social responsibility are economic responsibility, internal social responsibility,and external social responsibility.
B. Organizations are part of a larger society and are accountable to that society for their actions.
C. Societal responsibility focuses on the obligations an organization has to its customers, employees, suppliers, and distributors.
D. The duty of an organization is most easily understood at the societal responsibility level.
E. Social responsibility cannot be taught; it is an innate outgrowth of a person's moral and ethical belief system.



Answer: b

Social responsibility refers to

Social responsibility refers to




A. a personal moral philosophy that focuses on the greatest good for the greatest number by assessing thecosts and benefits of the consequences of ethical behavior.
B. a democratic consensus of moral principles and laws that govern the behavior of individuals based onlegislation adopted at the federal, state, and local levels.
C.a societal moral philosophy based on the Golden Rule of the Judeo-Christian ethic found in the U.S. Constitution's Bill of Rights.
D. the view that organizations are part of a larger society and are accountable to that society for their actions.
E. a personal moral philosophy that considers individual rights or duties as universal, regardless of the outcome.


Answer: d

Recently, a project team for Cosco, the world's largest children's products company, developed a high chair that could be used as an infant feeding seat, a youth chair, a play chair, a booster chair, and when reclined, an infant bed. Its design could be made and sold for $49. Cosco rushed the chair into production to beat its competition before it was properly safety-tested. When some children were injured as a result of this chair, Cosco denied culpability. The firm said that only a few consumers had had any trouble with the chair—and probably didn't assemble them correctly. Most consumers, however, were very satisfied with the chair and had no problems with it. Costco's actions exemplify which of the following philosophies?

Recently, a project team for Cosco, the world's largest children's products company, developed a high chair that could be used as an infant feeding seat, a youth chair, a play chair, a booster chair, and when reclined, an infant bed. Its design could be made and sold for $49. Cosco rushed the chair into production to beat its competition before it was properly safety-tested. When some children were injured as a result of this chair, Cosco denied culpability. The firm said that only a few consumers had had any trouble with the chair—and probably didn't assemble them correctly. Most consumers, however, were very satisfied with the chair and had no problems with it. Costco's actions exemplify which of the following philosophies?




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


Answer: e

A sonal moral philosophy that focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior is referred to as .

A sonal moral philosophy that focuses on "the greatest good for the greatest number" by assessing the costs and benefits of the consequences of ethical behavior is referred to as .




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


Answer: a