Abstract: Economic activities of people are causing major threats to environment and to survival of all life on the earth. Importance of ethics in the business world is superlative and global in its nature. The fact is that some businesses operate in unethical and socially irresponsible way. The unethical action of businesses in developing countries is highly linked with economic problem. Some customers are not enjoying quality goods and services at their cost. Though there is such serious problem, yet I could not find study conducted in the area to describe the situation or to identify root causes of the problem that enable decision makers to take appropriate action. So, the study going to evaluate business ethical practice of the town along with causes and effects of unethical business practice in the town.