According to integrated social contracts theory, universal ethical principles based on the collective views of multiple societies form a "social contract" that all individuals and organizations have a duty to observe in all situations.Within the boundaries of this social contract, local cultures or groups can specify what additional actions may or may not be ethically permissible.

Having regard to the Ethical Trade Initatives indicate which sort of initiatives (ethical principles) may or may not be accepted and explain why some local cultures may seek variation from these.