Purpose – The roots of the science of modern economics are originated from the ideas of Adam Smith who
is not a pure economist but a moralist-philosopher. Basic concepts in the Wealth of Nations which is
perceived as the hand book of economics depend on the arguments that Adam Smith suggests in his Theory
of Moral Sentiments. In this theory, business ethics as a part of the Law of Sympathy appears as one of
the factors that provide the invisible hand to operate properly. In light of this property, it is possible to
assume business ethics as one of the components of the market mechanism. In this context, this study aims
to analyse the link between business ethics and economic growth in the Turkish economy.
Design/methodology/approach – The study employs bounced cheques and protested bonds for
representing the degradation of business ethics and tries to show how this degradation affects economic
growth in the Turkish economy for the period 1988-2013.
Findings – Either illustrative or empirical results show that business ethics is an important determinant
of economic growth in the Turkish economy and damaging it negatively effects the growth rate of the
economy.
Research limitations/implications – One of the most restrictive things conducting the present
empirical analysis is the lack of various and longer data sets. Using different indicators in terms of
business ethics with longer time span will definitely increase the reliability of the study. However, in the
current form, results imply a policy that is capable of limiting the failures of business ethics may boost
the Turkish economy up.
Originality/value – The results tend to support the close link between business ethics and economic
growth.