Managers in virtually every organization face ethical dilemmas on a daily basis, which are caused by the conflict between the economic performance of a company and its social responsibility. Research indicates that a fine balance between them is not only quite possible, but it is an operational need of the day as any tilt is going to be detrimental to the very survival of the organization.The great error of all ethical systems is failure to teach the means to refrain from doing evil.

Ethical issues crop up on a daily basis in management. They extend over mundane stuff like bribes, theft or conflict. Managers practically in every industry face ethical dilemmas with unfailing regularity in their daily life. It has been estimated that the cost of unethical behavior is $5000 per employee (Bell & Poneman 1966). As India is marching towards the WTO era, with both globalization and localization co-existing and growing, ethics and a firm's performance are going to occupy the centre stage. There are two fundamental issues around which every organization revolves; economic performance and social responsibility. The conflict between these two issues present a manager with his daily dose of ethical dilemmas.

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