This research explores innovation from an ethical perspective. With increasing number of Chinese business applying Confucius teaching into business management and employee training, this research explores the influence of Confucius values of harmony, familial collectivism and reciprocity. It aims to evaluate the teach ing of these key Confucius ethical values to staff in a private owned Chinese organisation, and its impact on business movement. Taking a case-study approach, this research is conducted in Good-ark, a private-owned semi-conductor manufacturing company in Suzhou, China. Data has been collected from semi-structured interviews and company's annual reports and training records. The results demonstrate that Confuci anism teaching enhances both employees' and managers' commitment towards the organisation. Through such ethical innovation, it reduces the organisation's employee turnover and forms a strong cohesion within the organisation, and improves individuals and organisational performance. Furthermore, Confucius teaching helps extend people's understanding of Confucius ethical values, which are further applied into a wider social context. The practical implication and limitations of the current research are also discussed
