Khan, Mohammad2024-01-222024-01-222024-03Rahatullah, M. K. (2024). Ethical Systems’ Dynamics in Family Business, Journal of Governance and Regulation 13(2), ISSN – 2306-6784ISSN – 2306-6784http://hdl.handle.net/20.500.14131/1377Building an ethical culture is challenging and a basic requirement of the companies to embed transparency in their systems, creating a positive image; serving the internal and external communities. Twelve family owned businesses participated in qualitative research. Interviews were conducted from employees of these businesses to explore the moral dynamics in their business. The paper significantly adds knowledge to the literature by exploring the ethics role in particular contexts. It explores how these companies build the ethical culture, identifying the ethical culture sustainability triggers, challenges and role of religion. Values, culture, community and social norms are identified as major ingredients of a sustainable principled culture development and implementation of ethical policies and procedures require institutional and structural mechanisms for effectiveness in family owned businesses. Numerous findings are in contrast to the literature, whereas, in other instances these are similar. Religion, society, family image, the entrepreneurs themselves and their family members play a vital role. Non-interference in private matters of the employees, whistle blowing, code of ethics, training and awareness creation and a number of other factors play a leading role in ethical culture development in family businesses.en-USFamily Business, Ethics, GovernanceBUS , MGT & ACCT