In today’s business environment, perhaps no principle is more revered — and yet more misunderstood — than ethics. Leaders and business owners claim that they want to be more ethical, or that that conduct their businesses in an ethical fashion, yet have difficulty articulating exactly what that means to their daily operations.

Often companies will devote considerable time and resources toward becoming a more social responsible — ethical — organization, with the intent of attracting more business and a more loyal customer base. And there is some evidence that those efforts pay off; in a recent Wall Street Journal report, researchers found that consumers are more willing to support, and will pay more for products from, a company that they believe acts ethically.…