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Exam 3: Marketing Ethics

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Question 31

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When Johnson & Johnson removed all Tylenol from the shelves after some containers were tampered with,poisoning and killing seven people,the company:

A) sacrificed short-term profits for long-term credibility.
B) was forced to do so following extensive consumer outcry.
C) was ordered to do so by the Food and Drug Administration.
D) felt that nothing could stop Tylenol from losing most of its customers.
E) developed plans to sell the returned Tylenol bottles in less developed countries.

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Question 32

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Chris's firm is considering marketing an HIV / AIDS treatment and home-testing kit.Which of the following represents a potential ethical issue for the firm?

A) The firm could sell this kit at a very high price,based on its potential value,but doing so would make it too expensive for many at-risk individuals to afford.
B) A positive test result--whether correct,or a "false positive"--could lead to severe depression or even suicide.
C) A customer could run the test incorrectly and get a "false negative" result,causing an infected individual to think that treatment was unnecessary.
D) The firm may have to include counseling with the kit,which could affect its marketability.
E) All of these issues have ethical dimensions.

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Question 33

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After a series of embarrassing and unprofessional actions by her marketing team,Ming wants to ethically align personal and corporate goals within her firm.What general and specific actions will she need to take?

Marketers are frequently singled out for criticism related to ethics,in part because they interact directly with people.

The Ethical Decision-Making Metric II (Exhibit 3.8) :

The CEO of your firm,a distributor for a domestic beer manufacturer,has asked you to take on a special project.She has been hearing about a growing trend toward corporate social responsibility,but wonders if this is a reasonable investment for the firm.Outline the costs and benefits in general terms and draw your own conclusion for her consideration.

If Sadaf decides to sell the best ice cream on earth,and intends to establish a strong ethical climate in her organization,during which phase of the strategic marketing planning process should she introduce ethical considerations?

What does the AMA statement "to create transparency in our marketing operations" mean?

The process of creating a strong ethical business climate begins with the front-line employees who interact directly with customers.

In the "Who Is On the Line?" scenario,Star 38's new software hides or provides a phony phone number on caller ID systems.The company intends to sell its service to collection agencies,private detectives,and law enforcement agencies.If a collection agency is considering using the system,the first ethical question it should ask itself is:

The Carteret Realty Company represents a developer who wants to purchase a piece of property owned by a city in order to develop it into an apartment complex.To make the venture profitable,the developer is asking the city to use its power of eminent domain to force owners of some run-down houses near the property to sell their land to the developer.From the perspective of Carteret Realty Company,which of the following questions from Ethical Decision-Making Metric I might be of concern?

In the "No Wonder It's So Good" scenario,the marketing manager learns her company's cola product contains a small amount of alcohol,although it is not listed on the ingredients.The company is not required to list the alcohol because it is such a small amount.The marketing manager is concerned about the impact of this omission,if it becomes widely known.This raises the __________ test of ethical action.

Which of the following types of unethical behavior are likely to be observed in marketing environments?

After a rash of embarrassing and potentially illegal activities in her organization,Jane decides to evaluate the organization's ethical standards and practices.Jane will assess:

Warren is reading his company's code of ethics and sees the statement,"We strive to fulfill economic,legal,philanthropic,and societal responsibilities that serve stakeholders in a strategic manner." What area of the AMA code of ethics does this statement refer to?

Alicia has been asked to approve a marketing campaign which,although it is not illegal,promotes food products to children.She is concerned that the food products are not particularly nutritious,although they are not as bad for children as some others sold by competitors.She reviews the tests in the Ethical Decision-Making Metric II (Exhibit 3.8) ,and she decides her best course of action is to:

In the "Money from Mailing Lists" scenario,the heart of the issue is that:

A meat packing company discovers that six months ago it unknowingly distributed meat from a cloned cow.The firm is unaware of any specific risks to humans consuming the meat; however,some scientists have raised questions,and some consumers are afraid of possible future problems.The meat company has to decide whether or not to make this matter public.How should it begin the process of making an ethical decision?

Johnson and Johnson recently realized that at least 1,000 lots of products specifically children's medication Tylenol,Motrin,Zyrtec and Benadryl contained too high a concentration of their active ingredient.In order to behave ethically,Johnson and Johnson should:

Identify how a company may use the Corporate Social Responsibility Framework and identify the different Inputs and Outputs when a corporation implements Corporate Social Responsibility.