More and more, we live in a global society. As Australian businesses move into newly emerging markets, like India, China, Indonesia and the Philippines, they are challenged to think about how concepts of ethical governance can be translated into different cultural, economic and political arenas.

What do businesses do when they find themselves in countries where there are few regulated business practices? Where corruption is rife? Where exploitation of women and children is commonplace?

Well, what do people do?

Consider Bali, the Philippines, Thailand. What do you see? All too often, Australians behaving badly … indeed, as they would never behave at home. It’s as if all the usual norms, values and social rules don’t apply in another cultural setting.

We live in a pretty highly regulated society – we know we can’t spit or urinate in the street; we know we need to pay our taxes and follow transparent business practices; we know we cannot pay below award wages or exploit child labour.

The same operating framework and boundaries do not exist in many developing countries. And these countries also have a considerable proportion of their population living in poverty. The implication for business is that you need to be very clear on what your moral and ethical boundaries are. It means you must operate with integrity.

To what, exactly, does integrity refer? Derived from the Latin term integer (i.e. a whole), integrity in the human context means adherence to consistent moral and ethical principles – no matter the setting. By extension, to act with global integrity is to conduct your business according to consistent moral and ethical principles – no matter what the setting. There are two aspects to global integrity: global business practice and corporate social responsibility.

Ethical business practice is guided by a number of global frameworks. Two key examples are:

1. The UN Global Compact, which has 10 principles that all businesses should follow with respect to human rights, labour standards, the environment and anti-corruption. In practical terms, these say: uphold human rights and don’t take part in human rights abuses; avoid forced labour and child labour; take environmental responsibility; and avoid corruption.
2. The Global Reporting Initiative, mentioned in the People.Productivity.Planet report, which is one of the world’s most widely used standards for sustainability reporting, through which organisations publicly report their economic, environmental and social performance. More than 1,500 organisations from 60 countries use these guidelines.

What about your broader social responsibility?

Corporate social responsibility is a form of corporate self-regulation that encompasses the impact of businesses on the environment and communities, and has a positive dimension of encouraging community growth and development.

When did you last think about spending a single dollar? I can’t even think of much that a dollar can buy. Yet we live in a world where 1.2 billion people live on less than a dollar a day and 2 billion people live on less than 2 dollars a day. There are no social safety nets for these people and they endure poor health, poor education and poor infrastructure.

As a business, you may be the only social safety net for your employees in developing countries. There are many ways that even small business can support employees: paying for medical insurance, creating a loan fund for school fees, distributing free condoms, providing transport to and from work, subsidising funeral expenses or providing scholarships. Many larger corporations working in developing countries support major social programs – including initiatives in health, education, micro-finance and business development. So there are various levels at which you can encourage community growth and development.

But the execution of global integrity is up to you.

There are tools and standards available to you, like the UN Global Compact and the Global Reporting Initiative. As a business, you should be clear about which of these codes you will adopt, ensure that your employees understand the implications, and make sure you follow through. Actions speak louder than words.

The great Chinese philosopher Confucius said: ‘If a man remembers what is right at the sign of profit, is ready to lay down his life in the face of danger and does not forget sentiments he has repeated all his life when he has been in straitened circumstances for a long time, he may be said to be a complete man.’

Global integrity is about all of us being that complete person – wherever we are in the world. Global integrity is about how you and I behave: every day, everywhere.

Jane Thomason is an Adjunct Associate Professor at the University of Queensland and is part of a global collaboration to develop a framework for measuring business contribution to development.

Where do you stand?

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