UN expels 657 companies from Global Compact initiative in 2014
The UN Global Compact ousted 372 companies in the second half of 2014 - including 14 UK firms - for failing to report on their progress against the scheme's 10 environmental and social principles.
The second bi-annual paring brings the total number of expelled companies in 2014 to 657, although membership of the world’s largest voluntary CSR initiative continues to grow.
The expelled companies represent 10% of the 3,760 participants due to submit a COP at the end of 2014, but 729 new companies joined the compact in the same period.
The Compact commits businesses to 10 principles, including the development of environmentally friendly technologies and the promotion of greater environmental responsibility. Members are required to submit an annual Communication on Progress (COP) to stakeholders reporting progress on the 10 principles.
In addition, 197 high-achievers earned the GC Advanced level, reflecting increased engagement in broader UN issues, and ‘leadership in corporate sustainability’.
According to the UN, the benefits of joining the Compact include improcing a company’s reputation, sharing best practice and linking business units and subsidiaries across the value chain.
Last week the UN Global compact released a study in collaboration with American university MIT, which found that the key to a successful sustainability program is collaboration with other companies and support from the executive board.
In June last year, Kingfisher became the first major company in the UK general retail sector to join the UN Global Compact. Fourteen UK companies were ejected from the scheme in this latest announcement – view the full list here.
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