Oxford University Press | Online Resource Centre

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Question 1

According to the followers of Milton Friedman, what is the link between companies' marketing and social responsibilities?

a) Companies are socially based organizations and should share responsibilities for the environment with customers.

b) Businesses should be left to get on with the task of making profits, while other agencies concentrate on social issues.

c) Business organizations are a primary change agent when it comes to issues of environmental guardianship.

d) Businesses should invest a proportion of their profits into socially worthwhile causes.

Question 2

In general, concern with the ecological environment is most closely associated with economies characterised by:

a) Low levels of government legislation to protect the environment

b) High levels of GDP per capita

c) Low levels of GDP per capita

d) Abundant natural resources

Question 3

Business ethics is essentially about:

a) Universal codes of business practice

b) Societally orientated behaviour by firms

c) Culturally conditioned agreement on what constitutes right and wrong

d) Honesty to a firm's customers

Question 4

Taken to an extreme, green consumerism by buyers of holidays would imply that buyers:

a) Buy from ecologically responsible tour companies

b) Visit more nature reserves

c) Choose 'eco-friendly' holidays

d) Take fewer holidays

Question 5

A soft drinks manufacturer is the first in its sector to adopt higher ecological standards in the bottles that it uses. In doing so, the manufacturer can benefit from all of the following EXCEPT:

a) it can learn faster than its competitors, ahead of compulsion.

b) it can learn from other companies' development mistakes.

c) it may gain public relations advantages.

d) it may achieve cost savings ahead of competitors.

Question 6

Which of the following is likely to be the most cost-effective method for a business based pressure group campaigning against government proposals to introduce new taxes on air travel?

a) Giving away free tickets to overcome the proposed tax

b) Creating petitions

c) Being regularly consulted by policy makers

d) Direct action, e.g. sabotaging government ministers

Question 7

Which of the following is the most all-embracing definition of a vulnerable customer?

a) Individuals who have been given a protection order by a Court.

b) Any individual over whom a company has a high level of power which leaves the individual unable to effectively apply their own judgment.

c) Individuals who have special medical or dietary requirements that may not be recognized by profit-seeking commercial companies.

d) Under-privileged individuals who do not have the income or resources of people who can afford to buy more than just basic goods and services.

Question 8

A number of shops in an area get together to agree among themselves which products they should sell and the hours that they should each open. This is:

a) Always illegal, because of the provisions of EU legislation.

b) Always illegal, because of Competition Act legislation.

c) Something that is encouraged by governments, in order to improve operational efficiency and to reduce waste of resources.

d) An issue that may have both beneficial and harmful effects for consumers and has to be decided on the merits of the case.

Question 9

Good public relations activity by a company should, above all else, be about:

a) Putting out a lot of "good news" stories about the company.

b) Trying to suppress bad news affecting the company.

c) Ensuring that the activities of the whole company at all times meet the expectations of all stakeholders.

d) Employing a public relations company to put over the company's view as forcefully as possible.

Question 10

Which of the following is a penalty for a company in breach of the UK Advertising Standard Authority's code?

a) Prosecution

b) Exposure to bad publicity

c) Imprisonment for repeated breaches

d) Investigation by the Director General of Fair Trading

Oxford University Press, Online Resource Centre, Chapter 03.

Chapter 03

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