What is the ethical issue?

‘Doing business ethically’ by definition means respecting human rights. Many organisations go further and seek to uphold a ‘positive duty’ in their operations, by taking steps to promote and fulfil human rights in the communities in which they operate.

Globalisation and the growing presence of multinational corporations and operations mean there is an increasing risk to businesses of violating national and international legislation. Organisations at particular risk include international operations with complex supply chains, sectors which extract natural resources and those operating in difficult markets, such as countries with poorly developed infrastructure or political and social unrest. 

Despite being enshrined in international law, it is widely acknowledged that more work is needed to guarantee the respect of human rights worldwide. Reports of alleged and actual human rights abuses, human trafficking, unsafe working conditions and damage to local communities by business operations continues to be reported in the global media.

Business has a role to play in advancing human rights, by insisting on higher standards than those required by local laws and by offering access to decent, safe work and reliable income. Organisations can exercise the choice to promote higher living standards and quality of life. As a bare minimum, organisations should avoid exploiting workers or depriving communities of their rights.

 

IBE Guidance

A summary of good practice

An explicit human rights policy statement and framework outlines a commitment from the organisation to combat human rights violations. Incorporating these into a broader code of ethics demonstrates how the two are interlinked and their importance to operations.

Organisations can also safeguard against human rights abuses by:

  • Training employees to help build awareness of issues, as well as embed pro-human rights practices into decision-making and corporate behaviours.
  • Collaborating with others on this, for example by joining the UN Global Compact.
  • Assessing human rights impacts which will also aid companies in knowing where potential human rights abuses may occur.
  • Examining operations, engaging stakeholders and integrating considerations of due diligence into supplier and third-party relationships which is key in identifying potential risks.

 

Further resources

Blog

Raising the Bar: How Corporate Codes of Ethics Can Strengthen Responses to Modern Slavery

22 August 2025

Blog

The EU Corporate Sustainability Due Diligence Directive

04 April 2024

IBE news

Fraud fears rise due to tightening economic conditions

19 February 2024

Blog

What are the ethical risk factors business leaders are most concerned about in 2024?

19 February 2024

Survey

IBE Survey - Ethical Risks 2024

19 February 2024

Business ethics briefing

Good Practice in a Human Rights Policy

31 January 2024

Webinar

Embedding human rights in decision-making and the supply chain recording

Catch up on our latest webinar with Dr Dorothée Baumann-Pauly and Aaron Campbell.

20 January 2023

Webinar

Ethical Culture: critical foundation for sustainable business recording

View our webinar recording.

29 April 2022

Survey

Attitudes of the British Public to Business Ethics: 2019

The 2019 results of the IBE's annual survey of the attitudes of the British public to business ethics.

17 December 2019

Business ethics briefing

Modern Slavery

This briefing looks at modern slavery in the context of business and business ethics. It considers the different terms brought together under the umbrella of ‘modern slavery’; the ways in which it is a challenge for organisations, and what companies are doing to minimise their risks in this area.

18 October 2019

Survey

Attitudes of the British Public to Business Ethics: 2018

The 2018 results of the IBE's annual survey of the attitudes of the British public to business ethics

13 December 2018

Survey

Attitudes of the British Public to Business Ethics: 2017

The 2017 results of the IBE's annual survey of the attitudes of the British public to business ethics

12 December 2017