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In the end, Michael sees how upset Holly is. He realizes he cares more about her feelings than he does about being right. He organizes a second ethics meeting—this time, much more somber—where he stands by her side. They don't fix the ethics of the office, but they fix their relationship.
It sounds like you’re looking for a recap or a "story-style" breakdown of , titled "The Lotus" (though it’s famously known as the "Business Ethics" episode involving the fallout from the "Plant" incident). Here is the story of that episode: The Story of "Business Ethics" [S5E3] The Plant
The room goes quiet until Meredith, in a moment of brutal honesty, admits she’s been sleeping with the regional representative of a collection company (Bruce Sunrise) for the past six years. Her reasoning? She gets a discount on office supplies for Dunder Mifflin and "Outback Steakhouse gift certificates" for herself. In the end, Michael sees how upset Holly is