The adoption of a uniform system for ethical standards by international companies would boost trust and lower poverty, according to a new report from the Institute of Business Ethics (IBE). The document – Towards Ethical Norms in International Business Transactions – argues for the adoption of a shared ethical vision, driven by the desire of multinational corporations to apply values in their dealings with stakeholders, wherever in the world they operate.

IBE’s report builds upon the 1995 Interfaith Declaration, an ethical code for international businesses that argued all trade and exchanges with a global dimension must be underpinned by four, key values: justice, mutual respect, honesty and stewardship. Those elements were drawn from the sacred texts of the three Abrahamic religions – Christianity, Judaism and Islam.

In light of recent developments in the conduct of international business, such as the grown of digital currency, the IBE has revisited the code with the aim of generating and sustaining confidence among co-operating companies around the world.

For example, in the clothing and textile industry, a series of disasters over the past 18 months from fires and building collapses at factories in Bangladesh and Pakistan has highlighted the fragmentary nature of that global industry’s business standards. In response, bosses at major brands and retailers have been forced to reassess the quality of their suppliers, as well as increasing their focus on staff wellbeing and corporate social responsibility. That has led them to ask questions such as whether they are paying suppliers fairly for materials compared to their value at the end of the supply chain.

Report author Simon Webley argued that having a shared moral code of practice for the global business community is the right step to help growing economies and ease their citizens out of poverty. He said: “If agreement can be reached on a universal set of core ethical values or norms for international business, based on common and long held moral principles, then economic activity in all its different aspects will have an important new facilitator of economic output. This, in turn, would enhance the prospect that more of the world’s population would be enabled to escape from poverty and benefit from expanded wealth creation.”

Those core values would have to be universally acknowledged, the report states, but cites the “Golden Rule” – treat others as you would wish to be treated – as the closest there is to a universal norm. “If it is applied in every instance of business interaction and taken seriously by the parties involved,” Webley stressed, “unethical behaviour is likely to be reduced with the potential that prosperity will increase.”

Ultimately, the study aims to assist corporate directors in maintaining trustworthy, long-term business relationships within the many global markets they work in.

IBE director Philippa Foster Back welcomed the report. “International companies need to be more resolute about applying their core ethical values throughout their worldwide operations,” she said. “A zero-tolerance policy to all forms of bribery, corruption and other forms of misconduct should be a basic commitment.”