As defined by the Institute of Business Ethics (IBE), ethical business includes, but goes beyond, business ethics.
According to the IBE, whether an organisation is judged to be an ethical business 'is a matter of opinion, based on what the business does and why; for example, the nature of its products and services. In addition to how the organisation does its business - business ethics - other considerations for an ethical business are its reputation among its stakeholders, and the way it treats customers and staff.'
The IBE cites examples of activities which some consider to be unethical, including fuel extraction, tobacco and gambling. According to the IBE, organisations involved in these types of activity may still carry out their business according to a set of ethical values and business ethics.
Such organisations would illustrate the distinction between business ethics and ethical business.