Part of the Business Information Systems course is related to business ethics. The current economy and labor relations status is the reason for studying the term and meaning of business ethics in work. Nowadays, when the word ethics is mentioned, only few still believe in the authenticity and fairness of society and competition. That is precisely the reason why all the advantages and disadvantages of business ethics and ethical behavior are explored in this paper. The term of business ethics, what business ethics can do for business, the principles of business ethics, the factors affecting business ethics along with the main problems of business ethics are addressed in the paper. Today, business is taking place globally and the competitive advantage and achievement of certain goals through profitability increase is the goal of each organization. To make the mentioned possible, it is necessary for organizations, as well as for every individual within the organization, to adhere to ethical principles i.e. informal rules and regulations in business conduct. By adhering to the ethical business, organizations facilitate their overall business operations in complicated market conditions. The purpose of this paper is to show how the implementation and importance of ethics in the business life of an organization can contribute to better business performance and healthier market competitiveness.