Global Compact Ousts Non-Communicating Companies

U.N. office also lists 317 more participants at risk of removal from the initiative

By Danielle Lee

The United Nations Global Compact Office removed 630 companies from its list for failure to communicate progress on the 10 principles of the initiative, the office said. Under the Integrity Measures introduced in 2004, companies must report advancements annually to stakeholders.

The U.N. Global Compact Office delists companies that fail to meet the “communication on progress” deadline under a new policy implemented in January.

In addition to the 630 companies, 317 companies are listed as being inactive, of which 184 are at risk of removal in 2008.

These inactive participants must submit a communication on progress to regain active status, the office said.

“While the delisting of companies is regrettable, it is essential that the UNGC initiative stays true to its accountability policy,” said Executive Director Georg Kell in a statement. “This helps protect the integrity of the initiative as a whole, while also protecting the engagement of seriously committed companies.”

The Global Compact has 4,619 business participants that have agreed to policies on human rights, labor, the environment and anti-corruption laid out in the principles, adopted in full in 2004. Databases of the delisted and inactive companies can be found at www.unglobalcompact.org .