ETHICAL business is becoming big business. Access to the internet means that shareholders and customers can tap into information about the companies they invest in or buy from to check that they are acting ethically.

As a result, most listed companies have ethical codes of practice and run environmental and social programmes, says Simon Webley, research director of the Institute of Business Ethics. “Nine out of ten of the FTSE 100 companies have programmes to promote ethical practices, up from seven out of ten in 2001,” he says.

Cynics often claim that ethical codes such as Google’s motto “Don’t be evil” are just window dressing. Scott Adams in his popular Dilbert cartoon strip is running a story line showing the Google founders deploying a death ray to destroy potential competitors.

But ethical programmes are having a positive effect on corporate values, Webley says. “It is difficult to tell if they make a difference but our 2004 survey showed that 80 per cent of employees think the organisation they work for is ethically sound,” he says. “That leaves 20 per cent who do not feel their employer is behaving well. They can bring a company down.”

The spectacular crash of Enron and Worldcom had a deep impact. “Enron happened because greed was the predominant culture in that company. You can do that only for a short period before the company collapses,” he says.

Using the internet, activists can whip up a storm against companies of which they disapprove, such as Nestlé, which is under fire for promoting baby foods in poor countries and for advertising sweets to children.

“My experience of Nestlé is that it is a well run and responsible company and does not understand what all the fuss is about,” Webley says. Perhaps lack of understanding is the root of the problem.

One company that has had to defend its record on animal testing is L’Oreal, which recently took over the Body Shop, renowned for its ethical stand.

Webley says: “When L’Oreal took over the Body Shop people worried that Anita Roddick was selling the company down the river, but I know L’Oreal and it stopped animal testing more than ten years ago, except where required by law.” I think L’Oreal is taking Body Shop’s ethics with the company.”

The conversion of big business to ethical behaviour has been accompanied by a rise in the number of businesses based on religious values.

“A religious subculture of Christian companies is growing,” says Jonathon Bartley, of Ekklesia, the think tank. Many high-profile ethical trading companies, such as Fairtrade, came from church initiatives. “Many ethical trading companies have their roots in charities such as Tear Fund when it set up Tradecraft stalls at church fêtes.”