Ethics, social responsibility and business performance in a transition economy

Abstract

PurposeThis paper seeks to explore the perceived role of ethics and social responsibility in achieving the organisational effectiveness among managers in transition economy, the impact of demographic characteristics of managers on it, and the relationship between managers' attitudes towards the role of ethics in business and the firm's performance.Design/methodology/approachThe research was been done by a survey method based on a sample of managers from the most successful Croatian firms. In order to establish the attitudes of Croatian managers on social responsibility, the PRESOR scale was used.FindingsIt has been established that among Croatian managers a positive attitude on the importance of ethics and social responsibility for the firm's success prevails. Except for the age, the connection between other individual variables and the perception of the role of ethics and social responsibility in doing business was not established. A positive correlation between the perception of the role of ethics and social responsibility in doing business, profit and work productivity has been discovered.Practical implicationsThe research results show, to managers in transition and developed market economies, that business success, ethics and social responsibility are compatible.Originality/valueThe original PRESOR scale has been tested on the sample of managers in transition economy. Except for the marketing managers the sample includes also managers in other functions and on different organisational levels.