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MKTG 25010 Study Guide - Quiz Guide: Infant Formula, Fentanyl, AnalgesicExam


Department
Marketing
Course Code
MKTG 25010
Professor
Lawrence J.Marks
Study Guide
Quiz

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58
Chapter 4: Ethical and Social Responsibility in Marketing
I) Ethics
a) The _________________ and ________________ that guide the actions
and decisions of an individual or a group
II) Business Ethics
a) involves what is right and wrong in the workplace...and doing right.
x Unethical business behavior can get you investigated, fired or _______________!
III) Business Ethics: WHO NEEDS IT?
a) “NO ONE” Because:
i) It’s religion, not business.
ii) Our people ARE ethical.
iii) It’s for philosophers.
iv) It’s Obvious--”Do Good”
v) It’s preaching
vi) It’s just a recent fad.
vii) Ethics can’t be managed.
viii)It’s the same as “social responsibility.”
ix) If a firm is not in legal trouble, it’s ethical.
x) Managing ethics has little practical relevance.
b) Well, maybe….BUT
i) Nestle’s -- Infant formula
ii) Manville -- asbestos & employees
iii) E.F. Hutton -- kiting scheme
iv) Union Carbide -- Bhopal, India
v) Enron Conflicts of Interest
vi) Worldcom/MCI Inflated Accounting Reports
vii) Martha Stewart Insider Trading
viii)Bernie Madoff -- First Jail, Then Bankruptcy for Madoff
ix) Volkswagen Cheated on emissions tests -$________ million settlement
x) The Frye Festival –Great Ads…and a complete FRAUD! [Billy
McFarland sentenced to __________ in Federal Prison]
xi) Wells Fargo Opened fraudulent customer accounts! $_________million
fine and $5 million refund to customers; thousands laid off!
--Recover commercial:
xii) The founder/ CEO John Kapoor and 4 top execs of the pharmaceutical
company Insys were found guilty in a scheme involving bribes and
kickbacks to physicians who prescribed large amounts of a fentanyl spray
to patients who didn't need the painkiller.
xiii)Nike Questionable Hiring Practices
(1) The Background
!
Moral
principles Values
jailed
14.7
6years 185

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

59
(a) Nike has been heavily criticized for NOT being
__________________________________
(b) Accusation: use of _____________ and child labor overseas,
and horrible working conditions.
(c) Accusation: targeting ___________________________ by making
shoes an expensive status symbol for poor urban street kids.
(2) Nike’s Corrective Behavior
(a) __________________________ and six-point plan ensures more
socially responsible labor practices & commissioned an
independent study of Nike factories abroad.
(b) Created a huge _____________________ department and
publishes a Corporate Responsibility Report.
(c) The Nike Foundation works to create positive social change
around the world by getting kids active.
IV) Figure 4-1 (text page 106) Four ways to classify marketing decisions
according to ethical and legal relationships
a) Unethical AND Illegal DUH!
b) Ethical AND Legal Okay to
consider
c) Ethical but Illegal?
d) Unethical but Legal?
V) Criticism of Marketing
a) High prices
b) Deceptive practices
c) High-pressure selling
d) Shoddy, harmful, or unsafe products
e) Planned obsolescence
f) Poor service to disadvantaged consumers
g) WHEN THESE OCCUR, they have impact on
i)
ii)
iii) other businesses
VI) High Prices
Sociallyresponsible
sweatshops
10Wincomefamilies
codeofconduct
socialresponsibility
ethicalbut ethical
and
illegal legal
unethical unethical
and but
illegal legal
consumers
societyasawhole

Only pages 1-3 are available for preview. Some parts have been intentionally blurred.

60
a) Causes:
i) High costs of ________________________ and ________________
x Consumers want convenience, they want lots of assortment, they
want easy return privileges, etc.
ii) High _______________________ and _____________________ Costs
x Generic vs. Branded? Why such a difference between generic and
branded product prices?
Cancer Research Example:
UNETHICAL Drug Prices Example:
b) SO, markups that result in high prices often reflect services that customers
WANT and are willing to pay for:
i) Convenience
ii) Image
iii) Safety
iv) Service
v) Return privileges, warranties
c) But, illegal price fixing has ____________________!
VII) Deceptive Practices
a) Deceptive _______________________
i) Falsely advertising “factory” or “wholesale” prices or large reductions from
phony high retail list prices; mortgage rates.
b) Deceptive ______________________
i) Overstating a product’s features or performance; running rigged contests.
c) Deceptive ________________________
i) Exaggerating package content through subtle design, using misleading
labeling (food labels), etc.
Example:
d) Deceptive Practices lead to:
i) Legislation
e) Is Puffery Deception?
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