UN Global Compact Expels 285 Companies in First Half of 2014

The UN Global Compact today announced that it has expelled 285 companies in the first half of 2014 for failure to communicate progress for at least two consecutive years. The list of 285 expelled companies can be found here.

These expelled companies represent eight percent of the 3,404 participants due to submit a Communication on Progress (COP) within the first six months of 2014. During the same period, 2,423 companies did submit a COP, 1,930 of which were submitted at the GC Active level and 295 at the GC Learner level. A total of 198 companies achieved the GC Advanced level, which represents a 32 percent increase of Advanced Level COP submissions in comparison to the first six months of 2013.

The number of companies joining the UN Global Compact continues to exceed the number of expulsions, with 567 companies from around the world joining the initiative from January through June 2014.

Business participants in the Global Compact commit to make the ten principles part of their business strategies and day-to-day operations. As an integral part of their commitment, companies must issue an annual COP, a public disclosure to stakeholders (investors, consumers, civil society, Governments) on progress made in implementing the ten principles, and in supporting broader UN development goals.

Companies that fail to submit a COP for two consecutive years have not fulfilled their commitment to the Global Compact and face expulsion from the initiative. Expelled participants that wish to renew their participation must reapply via a new Letter of Commitment from the chief executive.

A Communication on Engagement (COE) policy, introduced in October 2013, also requires non-business participants to disclose specific activities in support of the initiative to stakeholders every two years, as well as results. The COE enables civil society, academia and business associations and other non-business participants to express their commitment through transparency and communicate the ways they support the Global Compact. Non-business participants that fail to submit a COE every two years will also face expulsion from the initiative.

The Global Compact offers customized and direct support to participants through its Relationship Management and Reporting teams, as well as through Local Networks in 100 countries. Companies of all types and in all regions are encouraged to take advantage of this valuable support to maximize their participation in the initiative.

The Global Compact welcomes the international community to utilize this information to encourage more companies and other organizations to make a serious and enduring commitment to universal sustainability principles.

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