**3. Conclusion**

objectives. Another study found that perceived ethics has a positive effect on corporate capability [29, 30]. Furthermore, there has been a substantial argument on the association between BSR and business performance measures. Ref. [24] reviewed the literature and found that there is a positive relationship between business social responsibility and corporate financial performance [13]. It was further argued that organization that put their resources in socially responsible practices has an advantage on market value of the firm despite the costs involved

Again, [24] suggest that firms should attempt to align business social responsibility activities with their performance objectives [13]. Recently, [31] arrived at a related conclusion. They thought about a coordinated example of US firms on the Dow Jones Sustainability Index with firms not on the list and discovered that firms on the file had a superior gross overall revenue

Organizational ethics is a firm's commitment to ethical principles and actions. A number of businesses encourage a social and an ethical behavior/environment by establishing a significant moral standard that guides organizational members' "ethical thinking and actions [32]. In addition, other businesses promote organizational ethics with codes that demonstrate ethical standards and behavioral necessities among members in the organization [2, 13, 33]. The overall objective of such conducts is to enhance and stimulate workers" commitment to per-

Perceived ethics which measures a firm's performance is adapted from the scale developed by [29, 31]. This scale has been used by other researchers and found to be reliable [30]. The scale has six items and directly captures organization's perceptions of how strongly they view business social responsibility. It is reported that the scale has internal reliability (i.e., Cronbach's alpha) of .93 [30]. Furthermore, this measurement scale has been used widely by different scholars [29] who endorsed its validity. The samples of items are statements like―"My organization is committed to well-defined ethical principles" and "My organization is aware of environmental issue that will not affect society." Like others, this construct also used seven-point Likert scale

as it appears to be optimal and enables respondents to show their stand comfortably.

In this section, Ref. [24] reviewed literature on the business cases for corporate social responsibility and posited that there is evidence on the link among corporate social responsibility and corporate financial performance. Referring to [25], they indicate four potential hotspots for the change in performance of corporate social responsibility exercises: cost and risk reduction, enhancing authenticity and notoriety, building the upper hand, and creating win-win circumstances through synergistic esteem creation. Ref. [24] proposed that firms must endeavor to adjust corporate social responsibility exercises to their performance goals. Ref. [26] explored the observational research in the vicinity of 1972 and 2002 on the potential relationship among corporate social responsibility and financial performance. They conclude from their meta-analysis of 127 reviews that there is adequate confirmation to bolster a positive link between the corporate social responsibility and financial performance and little evidence of a negative affiliation.

in actualizing social projects which lessen business liquidity [13, 23].

and higher profit for resources than the organizations not on the record.

form tasks in line with ethical aspirations [2, 9].

120 Social Responsibility

**2. Perceived ethics and performance**

Previous studies have established that there is a considerable link between perceived ethics and financial performances [13]. However, some studies [34, 35] found no relation or mixed results, and their methods varied and were contentious. Therefore, based on the above, this chapter uses perceived ethics to find the associations with small- and medium-sized enterprises' performances, which currently has consistent result and low empirical evidence of any negative effects.

This chapter discusses the definitions of perceived ethics and other related concepts; the chapter also looks at the previous research on the association between perceived ethics and performance. To promote ethics and social responsibility around the world, a group of businesses and political and civic leaders in Europe, Japan, and the United States created international principles related to responsible corporate citizenship. The role of business in the lives of customers, employees, owners, competitors, suppliers, and communities was communicated in clear terms. International codes allow businesses to confidently adjust their practices to accommodate cultural, social, and ethical differences in international business.
