The United Nations Global Compact has removed 630 companies (PDF) from its list of participants for failure to communicate progress.

In the past, there was a perception by some that companies around the world could join the group without taking any practical steps to change policies.

The delisting of companies is part of ongoing efforts by the UNGC Office to enhance the accountability and credibility of the initiative. Companies are required to communicate annually to their stakeholders on progress made in implementing the ten principles of the UN Global Compact. Failure to meet the COP deadline results in a company being listed as “non-communicating” on the Global Compact website.

The delisting policy was first implemented in January 2008, when 394 companies were removed from the participant list. Since then, an additional 236 companies have been delisted – bringing to 630 the total number of companies delisted since the policy was implemented. In addition, 317 companies are currently listed as “inactive” on the website, of which 184 are at risk of being delisted in 2008.

Despite the large number of companies removed from the participant list, the overall number of participants continues to rise. During the first half of 2008, 701 new companies have joined the UN Global Compact, increasing the total number of business participants to 4619, and the total number of all participants – companies plus non-business stakeholders — to 5982.