Global Compact gets tough on firms
It’s emerged that the United Nations Global Compact has expelled more than 2,000 companies for “repeated failure” to communicate their progress in integrating its sustainability principles into their operations.
The Global Compact is a framework for businesses that are committed to aligning their operations with 10 principles covering human rights, labour, environment and anti-corruption.
The move reflects a stricter enforcement procedure against firms. The Global Compact said it has now booted out a total of 2,048 firms – the number was reached following the recent expulsion of more than 200 companies. This was at the end of a 2010 moratorium on expulsions in less developed countries.
There are now 6,066 active Global Compact participants in 132 countries. The target is for 20,000 participants by 2020.
Among the companies expelled are names such as Allianz in France, Barclays Bank Gambia, Euronext
France, GlaxoSmithKline Bulgaria and Nordea Bank Finland Plc Latvia Branch.
The Global Compact has various initiatives to boost numbers, including the Blueprint for Corporate Sustainability Leadership and the new LEAD “platform for corporate sustainability leadership” that is about to be launched.
The Global Compact requires participants to communicate every year with stakeholders on their progress in integrating its principles.
Next month sees the launch of a “differentiation framework” in a bid to motivate companies to strive for greater integration of the principles. Georg Kell, Executive Director of the Global Compact, said: “It will provide deeper incentives at both ends of the performance spectrum, and help stakeholders critically assess the performance and progress of our companies.” The full list of expelled companies is available here