UN Global Compact Boots 99 Companies
The UN Global Compact has expelled 99 companies in the first half of 2013 for failure to communicate progress for at least two consecutive years.
US companies that got the boot include Pacific Transformer Corporation, Rea Magnet Wire Company, Aurora Technologies and Connector Manufacturing Company.
The 99 global companies represent 3 percent of the 3,288 participants due to submit a communication on progress (COP) within the first six months of 2013. During the same period, 2,233 companies did submit a COP, of which 130 achieved the GC Advanced level, which the Global Compact says is an unprecedented number reflecting an increased commitment to transparency.
The number of companies joining the Global Compact continues to exceed the number of expulsions, the UN says. With 646 companies from around the world joining the initiative thus far in 2013, participants have signed onto the Global Compact at more than six times the rate of expulsions.
Global Compact says is the largest voluntary corporate responsibility initiative in the world, and, in principle, its members are committed to aligning their operations and strategies with 10 universally accepted principles in the areas of human rights, labor, environment and anti-corruption.
Business participants in the Global Compact commit to make the 10 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 — including investors, consumers, civil society and governments — on progress made in implementing the 10 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.
In March, the Guardian reported that more than 750 businesses, including major European and American corporations, are expected to be ejected from the Global Compact in the next six months, and a few hundred more after that, as the group evaluates whether its members are upholding its principles.
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