The aim of this paper is to analyse the concepts of ethics and ethical norms in business, as well as the legal frameworks of trade in the Republic of Croatia. The purpose is to present mentioned concepts in practice through examples as clearly as possible, while at the same time connect ethics and legislation in trade business. In the theoretical background are discussed concepts of ethics and ethical norms, which represents the determinants of human action, both in everyday life and in business. Ethics is integrated into business by means of ethical norms and principles that represent the key elements of ethical codes. Individual business subjects, recognizing the growing importance of the aforementioned concepts, have been undertaking various activities to promote ethics of their own business. In addition to ethics and ethical codes, there is also the concept of socially responsible business, which raises ethics to a higher level with the aim of having the widest possible impact on society in the context of social, environmental and economic issues. On the other hand, legal frameworks of trade represent the core basis of the complete regulation of activity, which contains numerous laws and regulations aimed at regulating trade environment. Such laws are the Law on Obligatory Relations, the Trade Law and the Protection of Workers' Rights. The results of this research indicate that the effective application of ethical norms, together with the observance of relevant laws, contributes to the market balance. All data were collected through secondary research based on secondary data, such as books and professional literature, as well as Internet sources and relevant trade laws, using descriptive and deductive method.