Journal of Indonesian Economy and Business Volume 32, Number 3, 2017, 178 – 189 BUSINESS ETHICS FOR BUSINESS SUSTAINABILITY IN MUHAMMADIYAH HOSPITAL: EVIDENCE FROM PONOROGO, INDONESIA Anna Marina Faculty of Economics and Business, Universitas Muhammadiyah Surabaya, Indonesia (anna.marina@fe.um-surabaya.ac.id) Sentot Imam Wahjono Faculty of Economics and Business, Universitas Muhammadiyah Surabaya, Indonesia (sentot.imamw@fe.um-surabaya.ac.id) ABSTRACT The purpose of this study is to examine how business ethics can support business sustainability in hospitals. Business ethics is associated with: Hospital professional ethics, medical professional ethics, professional accounting ethics, and Islamic business ethics. This study used a qualitative approach with phenomenological analysis techniques to process the data collected from key informants, through Focus Group Discussions (FGD) with 20 supervisors, in-depth interviews with six members of the management, 11 outside observations, and documentation over a period of six months. The business ethics theory was used to guide the research’s findings. The business sustainability theory was used to find the relationship of the research’s findings with the opinions of four expert informants for the purpose of triangulation on the reasons for conducting Islamic business ethics for a sustainable business. The finding of this study is the reason for running the hospital ethically. The finding of this study can be used to redesign the vision and mission of the hospital as a basis for achieving better performance. The implication of the finding of this research is the need for business ethics in the design of internal systems. Keywords: Islamic business ethics, Muhammadiyah hospital, professional ethics, business sustainability. INTRODUCTION Discussions of sustainable business practices need to be set within a framework of business ethics. Business ethics provides a potential analytical framework through which manage- ment practices in general, and sustainability in particular, are evaluated (Lashley, 2016). In the insurance industry, the bankruptcy of the American International Group (AIG) in 2008 was caused by the unethical behavior of its leader in running the business (Ferrell, Friedrich & Ferrell, 2013). Fisher and Lovell (2012) promoted ‘green’ practices as business ethics with sustainable businesses for the hospitality and restaurant industry. In his classic 1973 article, Davis (1973: 321) outlines "the case for and against the business assumption of social responsibilities". Arguing that changing social values impose new demands on economic organizations, Businesses’ engagement in social initiatives will become imperative for preserving social support in a "mature, global civilization" (Bronn & Cohen, 2009). The argument was based on the desire of the business community to be able to produce goods and services to make a profit in the long- term by strengthening the firms’ public images (Davies, 2003). Business continuity in a hospital is primarily affected by the implementation of ethics in the hospital’s daily operations. Furthermore, Graaf and Ven (2006) state that corporate social initiatives, as the basis of corporate long-run goals, are genuinely guided by moral values or ethics. A hospital is an integral part of the healthcare system. In the past 25 years, hospitals