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January 24, 2011
Number of Companies Expelled from the Global Compact Tops 2,000
    by Robert Kropp

More than 200 companies are expelled from the Global Compact at the end of a 2010 moratorium, and the organization introduces a Differentiation Framework to improve disclosure.

With the expulsion from the United Nations Global Compact of more than 200 companies in 2010, the total number of companies expelled from the organization has surpassed 2,000.

According to a
press release from the Global Compact, the more than 200 companies were expelled following "the end of a 2010 moratorium on expulsions in less developed countries, a short-term measure to explore solutions to a systemic lack of disclosure in certain markets."

The more than 6,000 member companies of the Global Compact agree to issue an annual Communication on Progress (COP), in which they disclose to stakeholders their progress implementing the ten principles of the Global Compact. The principles address issues in the areas of human rights, labor, the environment, and anti-corruption.

Jerome Lavigne-Delville, the Global Compact's Head of Communication on Progress, stated, "We are driving a strict enforcement of our integrity measures to ensure that every business participant disclose information on its progress, every year."

In order "to motivate companies at all levels to strive for greater integration of the principles," the Global Compact plans to introduce in February a Differentiation Framework, which aims to mainstream sustainability reporting and improve transparency and disclosure.

The Framework provides three levels of involvement. The basic level helps smaller and less experienced companies make progress in their implementation of the principles. At the intermediate level, companies address all ten principles through the use of accepted standards such as those of the
Global Reporting Initiative (GRI).

Companies on the advanced level will complete an online questionnaire which is intended to provide stakeholders with resources for benchmarking sustainability reporting and performance against global best practice.

Georg Kell, Executive Director of the Global Compact, stated that the Differentiation Framework "will provide deeper incentives at both ends of the performance spectrum, and help stakeholders critically assess the performance and progress of our companies."


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