Business ethics is defined as a process for integrating values such as honesty, trust,
transparency and fairness into its policies, practices and decision making. Business ethics
is therefore inherently linked with corporate governance. The importance of business
ethics cannot be denied. The old English proverb “as you sow so shall you reap” is
indicative of the significance of business ethics. A firm which applies ethical practices
also expects to be dealt ethically. These expectations and consequent adoption of ethical
practices create chain effect in terms of promoting ethical practices. While the larger
firms have already developed their reputation by adopting these ethics, SMEs around the
world are increasingly becoming aware of the importance of good, trusting relationships
with customers, employees, suppliers and the community. Moreover, due to their
linkages with larger firms through supply chains SMEs are increasingly asked about their
social and environmental policies when developing their ventures with large firms.