Companies that ignore human rights abuses in developing countries run a commercial risk, a new report suggests.

Multinational companies are vulnerable to legal, reputational and ethical risks, according to a report from the International Business Leaders Forum and Amnesty International.

"We think that companies must start to look very seriously at the risks they face in these places," Robert Davies, chief executive of the International Business Leaders' Forum told the BBC's World Business Report.

"You risk reputation, you risk poor governance... on the ground, it is much more human than that, you go into real risks of death, injury, abuse, unless you are aware of what you are doing and manage your way around it," he added.

He stressed that investment is critical in these countries, but added that many developing countries present "human rights challenges".

He added: "Consumers, employees and also increasingly investors now, pension funds, major analysts... are having higher expectations."

Investors awareness

Evidence is growing that public perception of a company's ethical policy can influence investment decisions.

Huntingdon Life Sciences' brush with bankruptcy woke companies up to the dangers of ignoring ethical considerations.

Last year, CGNU - owners of a stake in asbestos mining group Cape - found itself targeted by investors at shareholder meetings.