Australia could establish a world-first national body dedicated to applied ethics, potentially unlocking billions in economic growth.

An open letter has been signed by 1,600 prominent people including former Treasury Secretary Ken Henry alongside a coalition of politicians, academics, and business leaders, calling for a centre to address the distrust within Australia’s institutions and confront new ethical dilemmas.

Ken Henry, an advocate for the proposed Australian Institute for Applied Ethics, says such an initiative is needed in a capitalist society. 

In a recent opinion piece, Henry said that while capitalism thrives on self-interest, its survival and moral legitimacy depend significantly on trust - a commodity seemingly in decline. 

This observation is backed by a recent Deloitte Access Economics report, commissioned by The Ethics Centre, which notes that even modest improvements in trust levels could substantially enhance economic activity.

The open letter to the treasurer seeks a $33.3 million investment to establish the independent ethics body. 

Signatories, including Independent Senator David Pocock, Business Council of Australia President Tim Reed, and Australian Council of Trade Unions Secretary Sally McManus, highlight the institute's potential to address the ethical challenges of the 21st century, from AI to biotechnology.

The Ethics Centre, alongside the University of New South Wales and University of Sydney, has outlined the institute's ambitions to offer guidance on ethically complex subjects, integrate ethical learning into education, and champion ethical practices across industries. 

Simon Longstaff, Executive Director of The Ethics Centre, says there are major economic and social benefits of strengthening ethical infrastructure, projecting a vision of a more equitable and prosperous Australia.

Deloitte’s modelling suggests a 10 per cent improvement in ethical standards could bolster GDP by $45 billion annually. This financial promise is matched by the potential for higher wages and more profitable businesses known for their ethical integrity.