studies. The majority of studies found a positive relationship between corporatesocial involvement and economic performance, but some caution is necessary because of methodologicalquestions 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 theiroutcomes or consequences.2. The rights view of ethics says that ethical decisions are concerned with respecting and protectingindividual 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 rulesfairly and impartially.4. Finally, the integrative social contracts theory proposes that ethical decisions should be basedon empirical (what is) and normative (what should be) factors. This view is based on the integrationof two “contracts”—the general social contract and a more specific contract among members of aspecific 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 tocultivate ethical behavior among members. Eight suggestions will be explored.1. The selection process for bringing new employees into organizations should be viewed as anopportunity to learn about an individual’s level of moral development, personal values, egostrength, and locus of control.2. A code of ethics is a formal statement of an organization’s primary values and the ethical rules itexpects employees to follow. Also, decision rules can be developed to guide managers in handlingethical dilemmas in decision making. Top management’s leadership and commitment to ethicalbehavior is extremely important because it’s the top managers who set the cultural tone.3. Employees’ job goals should be tangible and realistic, because when goals are clear and realistic,they reduce ambiguity and motivate rather than punish. Job goals are usually a key issue inperformance appraisal.4. If an organization wants it employees to uphold high ethical standards, it must include thisdimension in its appraisal process. Performance appraisals should be comprehensive