Social Responsibility and Economic PerformanceThe question of whether socially responsible activities lower a company’s economic performance has been addressed in numerous studies. The majority of studies found a positive relationship between corporate social involvement and economic performance, but some caution is necessary because of methodological questions associated with trying to measure social responsibility and economic performance.Managerial EthicsEthics refers to the rules and principles that define right and wrong conduct. There are ethical dimensionsto managerial decisions and actions.Four Views of Ethics:1. The utilitarian view of ethics states that ethical decisions are made solely on the basis of their outcomes or consequences. 2. The rights view of ethics says that ethical decisions are concerned with respecting and protecting individual liberties and privileges such as the rights of privacy, freedom of conscience, free speech, life and safety, and due process. 3. The theory of justice view of ethics states that decision makers seek to impose and enforce rules fairly and impartially. 4. Finally, the integrative social contracts theory proposes that ethical decisions should be based on empirical (what is) and normative (what should be) factors. This view is based on the integration of two “contracts”—the general social contract and a more specific contract among members of a specific community that might be affected by a decision. Toward Improving Ethical BehaviorWhat can be done to improve ethical behavior? There are a number of things organizations can do to cultivate ethical behavior among members. Eight suggestions will be explored.Globalization:Management is no longer constrained by national borders. BMW, a German firm, builds cars in South Carolina. McDonald’s, a U.S. firm, sells hamburgers in China. Toyota, a Japanese firm, makes cars in Kentucky. Australia’s leading real estate company, Lend Lease Corporation, built the Blue water shopping complex in Kent, England, and has contracts with Coca-Cola to build all the soft drink maker’s bottling plants in Southeast Asia. Swiss company ABB Ltd. has constructed power generating plants in Malaysia, South Korea, China, and Indonesia. The world has definitely become a global village!Managers in organizations of all sizes and types around the world are faced with the opportunities and challenges of operating in a global market.