Nowadays we can often get the impression that business ethics is neglected regardless of the aspect and perspective of study and practice. The importance of business ethics is becoming increasingly important in companies.The task of every organization is to achieve and maintain employee satisfaction and customer satisfaction. Competitiveness is the basis that determines the success or failure of the organization itself. Competition in business leads to an impact on a society that has its own expectations and rules. Ethical behaviour is the way a company can differentiate itself from the competition. Each manager in the organization should strive to strike a balance between economic and socially responsible business items if he/she wants to do business successfully. It is extremely important to incorporate ethical actions and behaviors into business practice. The organization will be recognized as a good business partner if it adheres to a code of ethics that contains rules and standards of conduct that must be followed by employees and employers. The aim of this final paper is to clarify the concept of ethics, the power of ethical business and the purpose and principles of business ethics. The first part of the paper is focusing on the historical development of ethics, the division and explanation of business and managerial ethics. Furthermore, managerial ethics is described, as well as ethical decision-making and ethics management within the organization and problems and mistakes that managers encounter when making decisions. The research part of the paper includes examining the ethical dilemmas of managers in the company Konzum and a presentation of the data obtained from the research.