Britain’s largest defence contractor, BAE Systems, will have to appoint a senior executive as well as publishing a global code of ethical business, a report recommended on Tuesday.

The report was produced by senior retired judge Lord Woolf and sets outs 23 recommendations that will ensure the company maintain “world class business practices”. The report was commissioned last summer by BAE to put an end to years of criticism that have dogged the company since the Al Yamamah arms deal with Saudi Arabia in 1989.

The Al-Yamamah contract has been controversial from the start, with allegations of bribery and slush funds being used to entertain Saudi Officials and royalty. That being said, BAE have always denied any wrongdoing.

The report has recommended that there should be a detailed assessment of all ethical and reputational risks in any business decision taken by the board, senior executives remuneration packages should include a reference to ethical behaviour and that appointments of external advisors be codified.

The report also calls for “long overdue reform” of Britain’s bribery laws and that BAE should continue to forbid facilitation payments as a matter of global policy.

Lord Woolf said the report provided “a route-map…that will ensure it becomes a leader among global companies for its standards of ethical business conduct”.

One of the main criticisms of the report was that it failed to look at BAE’s past business dealings. Lord Woolf admitted that the company’s unethical conduct has “damaged the global reputation of this country”.

“In my view it is of great importance that the chairman and chief executive have acknowledged to this committee that the company did not in the past pay sufficient attention to ethical standards and avoid activities which had the potential to give rise to reputational damage, he added”.

During the committee’s review a EuroFighter Typhoon aircraft was sold by BAE to Saudi Arabia. Lord Woolf claimed to have access to certain documents related to the contract and “on the basis of this information, it appeared to the chairman that the contract should not in itself create any risks of unethical conduct by the company”.

BAE has agreed to implement the recommendations in the report.