MKTG 14e – Chapter 3: Ethics and Social Responsibility

A comprehensive set of question-and-answer flashcards covering key terms, theories, models, laws, and examples from Chapter 3, designed to help students master ethics and social responsibility concepts in marketing.

What is social control in the context of a civil society?

Any means used to maintain behavioral norms and regulate conflict.

Define behavioral norms.

Standards of proper or acceptable behavior that guide actions in society.

Name six key modes of social control that affect marketing.

Ethics, laws, formal and informal groups, self-regulation, the media, and an active civil society.

True or False: Laws address the highest common denominator of socially acceptable behavior.

False. Laws usually represent the minimum standards of behavior tolerated by society.

How are ethics different from laws?

Ethics are personal moral principles governing conduct; laws are standards enforceable by courts.

Give the basic definition of ethics offered in the chapter.

The standard of behavior by which conduct is judged.

Why can something be legal yet unethical?

Because legality sets minimum standards, whereas ethics may demand higher moral conduct.

What is the deontological theory of ethics?

The view that people should adhere to their obligations and duties when facing an ethical dilemma.

According to utilitarian ethical theory, how is the ethically correct choice determined?

By selecting the action that yields the greatest benefit to the most people.

Differentiate between act utilitarianism and rule utilitarianism.

Act utilitarianism focuses on actions that maximize overall benefit case-by-case, while rule utilitarianism seeks the most just rules that benefit the majority.

Explain the casuist ethical theory.

It compares a current dilemma with past similar dilemmas and their outcomes to arrive at the best solution.

Define moral relativism.

The idea that ethical truths depend on time, place, and the individuals holding them.

According to Aristotle and Plato, how are ethical dilemmas best solved?

By nurturing personal virtues—valued character traits seen as good.

What is a virtue in ethical terms?

A character trait valued as being good, helping individuals solve ethical dilemmas.

Define morals.

Rules people develop as a result of cultural values and norms; a foundation of ethical behavior.

List two primary sources from which businesspeople acquire ethical values.

Family and educational or religious institutions.

Name three broad approaches to developing personal ethics mentioned in the notes.

Examining consequences of an act, stressing the importance of rules, and nurturing virtues.

Identify at least four factors that influence ethical decision making in organizations.

Extent of ethical problems, top management’s actions, potential magnitude of consequences, social consensus, probability of harm, time until consequences, and number of people affected.

What is a code of ethics?

A guideline to help managers and employees make better ethical decisions.

Give two advantages of having a written code of ethics.

Clarifies acceptable practices and serves as an internal control that reduces need for external regulation.

What U.S. law forbids illegal payments to foreign officials?

The Foreign Corrupt Practices Act (FCPA).

Define corporate social responsibility (CSR).

A business’s concern for society’s welfare.

Summarize stakeholder theory.

Social responsibility means paying attention to the interests of every stakeholder in every aspect of a firm’s operations.

List the four components of the Pyramid of Corporate Social Responsibility.

Economic, legal, ethical, and philanthropic responsibilities.

Why do some analysts argue against CSR?

They believe businesses should focus solely on profit and leave social issues to governments and nonprofits.

Provide two reasons companies adopt CSR programs.

CSR raises customer trust and loyalty, and proactive responsibility can prevent stricter government regulation.

What is the United Nations Global Compact (UNGC)?

The world’s largest corporate citizenship initiative encouraging businesses to adopt socially responsible policies.

What qualifies a company as a B Corp?

Certification by B Lab that it meets rigorous standards of social and environmental performance, accountability, and transparency.

Define sustainability in the business context.

The idea that firms outperform peers by viewing social problems as opportunities to profit while helping the world.

Differentiate environmental, social, and economic sustainability.

Environmental focuses on protecting nature, social on processes that aid current and future generations, and economic on efficient asset use for long-term profitability.

What is green marketing?

Developing and promoting products designed to minimize negative environmental impact or improve the environment.

Explain greenwashing.

Marketing a conventional product as ‘green’ by adding minimal eco-friendly attributes to appeal to consumers.

Which U.S. agency issues guidelines for labeling products ‘green’?

The Federal Trade Commission (FTC).

Name two companies often cited as leaders in social responsibility and one initiative for each.

Patagonia (Worn Wear program), Unilever (installing water pumps and toilets in African villages).

Define cause-related marketing.

Cooperative marketing between a for-profit firm and a nonprofit organization for mutual benefit.

How does cause-related marketing differ from philanthropy?

Philanthropy is a direct, often tax-deductible donation; cause-related marketing ties donations to sales or marketing activities.

List the six learning objectives of Chapter 3.

1) Explain determinants of civil society, 2) Explain ethical behavior, 3) Describe ethical behavior in business, 4) Discuss corporate social responsibility, 5) Describe arguments for and against CSR, 6) Explain cause-related marketing.

What role does the media play as a mode of social control?

It highlights and critiques unethical behavior, pressuring firms and individuals to act properly.

Why can an active civil society influence marketing ethics?

Engaged citizens and NGOs can call out unethical practices, mobilize boycotts, and drive regulatory changes.

What is self-regulation in marketing?

When an industry or company sets and enforces its own ethical standards without external enforcement.

Give an example of how social consensus affects ethical decision making.

If most stakeholders agree an action is wrong, managers are less likely to proceed with it.

Why might the time between decision and consequences influence ethical choices?

Delayed consequences can make harmful outcomes seem abstract, reducing perceived urgency for ethical action.

How does the number of people affected impact ethical judgments?

The more people potentially harmed, the greater the ethical responsibility to avoid negative outcomes.

State one way ethics training benefits organizations.

It helps employees translate abstract ethical guidelines into concrete decisions and behaviors.

What is meant by ‘virtue ethics’?

An approach focusing on developing moral character traits that naturally lead to ethical decisions.

Describe the economic responsibility in the CSR pyramid.

The obligation to be profitable, as financial success supports the firm’s ability to fulfill other responsibilities.

What is the philanthropic responsibility in the CSR pyramid?

The expectation that firms contribute resources to improve the community and quality of life.

Identify one common challenge students might face in a group ethics activity.

Reconciling differing personal ethical views among group members.

How can a CSR program mitigate negative word of mouth after a customer’s bad experience?

By showcasing the company’s broader positive impact, which may soften customer criticism.

Give one reason government may impose new regulations on firms lacking CSR.

To address social or environmental harms the firms fail to correct voluntarily.

Which CSR component directly supports the entire pyramid, according to the model?

Economic performance—without profits, other responsibilities are harder to sustain.

Why is transparency critical for B Corp certification?

Stakeholders must be able to verify social and environmental claims, ensuring accountability.

What does the knowledge-check statement about laws illustrate about marketing ethics?

That ethical expectations often exceed the minimal standards codified in law.