If there is no monitoring or enforcement, how does the Global Compact know that a company is truthfully portraying its actions?
The Global Compact is not a performance or assessment tool. It does not provide a seal of approval, nor does it make judgments on performance. Participants are expected to publish in their annual report or similar corporate report (e.g. sustainability report) a description of the ways in which they are supporting the Global Compact and its ten principles. This is known as the Communication on Progress. The Global Compact believes that this sort of openness and transparency encourages good practices by participants (see question 6 below).
