Because of the pervasive moral thought in traditional Chinese society, some scholars try to integrate the system with ethics in a simple way to solve the problems of ethics and system in the period of China's social transformation. The analysis of the relationship between system and ethics is too simple in the concept of institutional ethics, which will produce a negative influence on both the construction of system and the moral construction. In the development and improvement of Chinese society, it is necessary to weigh thefunctional advantages and disadvantages of ethics and system scientifically; to overcome the thought of pan-moralism; and to realize thedialectical unity of ethics and system and common progress of moral and system construction.