The conceptual framework of business ethics in total quality management is described based on a case study in the Swedish retail industry. The study shows that business ethics is significantly important as in the long run, TQM will not succeed in business operations unless business ethics is considered in the core values to support the techniques and tools applied for TQM. TQM insists that business operations must be performed without delay, minimizing the damage and with the agreed quality. The business organizations must maintain proactive values in their business processes to ensure maximum customer satisfaction.