The United Nations Global Compact Office announced that 394 of its corporate participants have been permanently removed from the Global Compact's online database.
At least five companies from China have been delisted, including Anhui Animal By-Products Import and Export Corporation, H. Cheong-Leen & Company, and the Highway and Bridge Construction Company of Anhui Province.
The action by the United Nations was taken in early January 2008 and applies to all companies in the Global Compact that have been listed as "inactive" on the Global Compact website for at least one year. Companies are listed as "inactive" if they miss two consecutive deadlines for submitting a Communication on Progress report, a public statement on progress made in implementing the Global Compact's ten principles required annually of all business participants. The move to delist companies that do not demonstrate any intention of improving their standing followed a recommendation made by the initiative's multi-stakeholder board in November 2007.
In addition to the 394 companies that have been delisted, the Global Compact website currently lists 510 companies as "inactive". Inactive participants are no longer allowed to participate in events hosted by the Global Compact and may not use the Global Compact logos for any purpose unless a Communication on Progress is issued.
The initiative currently includes 3,380 business participants in "active" standing, while 401 companies are listed as "non-communicating", a cautionary label applied to all companies that miss one deadline for submitting a COP.