In the context of increasingly globalized markets, intricate stakeholder relationships, and rising calls for ethical corporate conduct, establishing an adequate normative foundation for business ethics remains a pressing challenge. Traditional ethical frameworks—such as utilitarianism and Kantian deontology— often struggle to address the inherently pluralistic and dynamic nature of ethical decision-making in modern business contexts. This chapter advances Jürgen Habermas’s discourse ethics as a compelling alternative, situating moral legitimacy in the inclusive, rational dialogue of all affected parties instead of in solitary ethical reasoning or rigid codes. Focusing on Habermas’s contributions, we explore how discourse ethics, rooted in communicative action and structured for pluralistic societies, offers both a conceptual toolkit for rational consensus and a bridge between moral philosophy and organizational practice. We elaborate on the theoretical underpinnings, delineate forms of practical discourse, and trace the evolution toward deliberative democracy. Subsequently, we propose a Habermasian approach to business ethics—illuminating ways to structure participatory moral reasoning within firms and furnish practical guidelines for ethical decision-making. Ultimately, we argue that discourse ethics and deliberative democracy provide a dynamic foundation for business ethics, foregrounding communicative rationality and the institutionalization of fair, inclusive stakeholder discourse.