Ethical business is good business; period. If an organization wants to grow big and remain big, then ethical conduct is paramount. Sure, it may be not realize the possible gains which it may see in the short run. However, by sacrificing these short term gains, it ensures that there is a long run for it in the first place.
Ethical profitability simply means that the organizational focus is on conducting it's business operations by ethical means only and it strives to achieve the maximum possible profits in this mode. Ethical profitability is in fact sustainable profitability. Unethical means can earn the organization quick gains, but no organization in history has been able to sustain this unethical momentum for long. Trust and integrity in business is vital and the word-of-mouth of the customer is indeed quite powerful. Ethical profitability requires the code of ethics to be imbibed in the very DNA of the organizational culture, it's processes, products and external dealings. From HR perspective, it is extremely critical that this cultural orientation is done for all employees and it is made very clear that all acts performance and execution of daily work will have to be done ethically and also that the performance excellence has to be ethical performance excellence.