Does the UN Global Compact have teeth?
Focused on learning, dialogue and partnerships, the UN Global Compact is more like a guide dog than a watch dog. However, the Global Compact has a mandatory disclosure framework – the Communication on Progress (COP). Business participants are required to communicate their progress to their own stakeholders on an annual basis and to post a copy on the Global Compact’s website. Failing to communicate progress on an annual basis results in a downgrading of participant status from active to non communicating. Participants who do not communicate progress for two years in a row are de-listed and the Global Compact publishes their name. Non-communicating and de-listed companies, can become active again only by posting their COP.
