CPM Global, Ethical, & Sustainable Marketing 2 — Questions and Answers
Question 1: A US company discovers its overseas supplier uses child labor. Under which ethical framework should it immediately terminate the relationship regardless of contract costs?
- Relativism — local norms define acceptable practice
- Deontological ethics — certain acts are inherently wrong (Correct answer)
- Utilitarianism — weigh total happiness before deciding
- Egoism — act in the firm's long-term self-interest
Correct answer: Deontological ethics — certain acts are inherently wrong
Deontological ethics holds that some actions — such as exploiting child labor — are categorically wrong regardless of outcomes or costs.
Question 2: Which global market entry mode offers the highest control over brand standards but also carries the highest financial risk?
- Licensing
- Franchising
- Direct investment (wholly owned subsidiary) (Correct answer)
- Indirect exporting
Correct answer: Direct investment (wholly owned subsidiary)
A wholly owned subsidiary gives the parent full operational control but requires the greatest capital commitment and exposes the firm to full market risk.
Question 3: A brand publishes vague claims of being 'eco-friendly' without certification or data. This practice is known as:
- Carbon offsetting
- Cause-related marketing
- Greenwashing (Correct answer)
- Life-cycle analysis
Correct answer: Greenwashing
Greenwashing is the practice of making misleading or unsubstantiated environmental claims to appear more sustainable than the company actually is.
Question 4: The UN Global Compact asks signatory companies to support human rights, labor standards, environmental responsibility, and which fourth pillar?
- Digital transparency
- Anti-corruption measures (Correct answer)
- Fair pricing practices
- Stakeholder profit sharing
Correct answer: Anti-corruption measures
The UN Global Compact's four areas are human rights, labor, environment, and anti-corruption, reflecting its ten core principles.
Question 5: Standardizing a product globally while adapting only promotion is an example of which international marketing strategy?
- Full adaptation
- Dual adaptation
- Product extension / communication adaptation (Correct answer)
- Straight extension
Correct answer: Product extension / communication adaptation
Product extension/communication adaptation keeps the physical product the same worldwide but tailors messaging to local cultural contexts.
Question 6: A company that sources raw materials locally, minimizes packaging, and offsets residual emissions throughout its supply chain is applying:
- Corporate social responsibility reporting only
- A circular economy approach
- Triple-bottom-line accounting
- A cradle-to-cradle supply chain model (Correct answer)
Correct answer: A cradle-to-cradle supply chain model
Cradle-to-cradle design eliminates waste by ensuring all materials are cycled back safely into biological or technical systems across the entire supply chain.
Question 7: Which metric best captures a campaign's social media reach across global markets with varying platform popularity?
- Click-through rate (CTR) on a single platform
- Share of voice aggregated across platform-specific local leaders (Correct answer)
- Total Facebook impressions worldwide
- Email open rate by country
Correct answer: Share of voice aggregated across platform-specific local leaders
Share of voice aggregated across locally dominant platforms accounts for the fact that platform preferences differ significantly by country.
CPM Global, Ethical, & Sustainable Marketing 2
A US company discovers its overseas supplier uses child labor.
Under which ethical framework should it immediately terminate the relationship regardless of contract costs?