Some very ethical people are poor managers.
Sorry, but I have to run...gotta go earn my paycheck.
From what I have seen, it is largely both. If you treat your employees and your customers ethically, you stay in business. It's that simple.
And I love how you skeddadle rather than address the large question - by your own admission, poor corporate management is the norm nowadays, and that poor management is driving the free labor process you support so wholeheartedly. Maybe you need to re-examine your premises - that pursuing the cheapest labor is not smart business. And it has a highly negative long-term impact on the economy because it undercuts for the short-and-mid term companies that are trying to be run well - they loose out on price competition, and by the time they are out of business, the other company is hurting as well at that point because of poor quality. So cheap labor took out two companies, not just one.