The centre, funded by a donation of $7.5 million from the Sauder School of Business and Dhillon, will take a comprehensive approach to studying and teaching business ethics to students.
During initial talks with the university about the idea, Dhillon said this is a field of business education that is greatly needed in today's environment.
"There wasn't anything comprehensive around business ethics," said Dhillon. "There's no real model out there today, and that really surprised me."
Former Supreme Court judge Wally Oppal, a long time friend of Dhillon, was at the announcement Thursday.
He said from his experience prosecuting white collar crime, a program like this is a very good idea.
"What we're really doing is we're getting into... crime prevention," said Oppal. "This is a proactive approach."
The centre. which will take Peter P. Dhillon's name, will research best practices across disciplines like marketing, finance, and accounting.
The Sauder School of Business said it is currently conducting an international search to find a lead faculty member for the centre.
The Peter P. Dhillon Centre for Business Ethics will go in front of the UBC Senate for approval in September.