The United Nations Global Compact Office announced that 630 companies, including 22 Chinese companies, have so far been removed from its list of participants for failure to communicate progress.
The delisted Chinese companies are Anhui Animal By-Products Import and Export Corp.; Anhui Animal By-Products Import and Export Corp.; Beijing Leading-Edge Investment Co., Ltd.; China Aviation Supplies Imp.& Exp. Group Corp.; China First Tractor Corp.; China President Group; China US Net Group Inc.; China Yituo Group Constructional Machinery Co.; E&C Solutions (Shanghai), Inc; Fujian Electronics and Information Group Co., Ltd.; H. Cheong-Leen & Company; Highway and Bridge Construction Company of Anhui Province; Highway Surveying & Design Institute of Anhui Province; Huatai Group; Jilin City HuaTa Science-Technology Industry Trading Co Ltd; Jilin Tongtian Automobile Co., Ltd.; Rich Management Group; Shandong Lubei Chemical Industry Co. Ltd.; Sparkice Inc; Suntek Group Guangdong Credit & Risk Management Co., Ltd.; Wanda Group Share Co., Ltd.; and Yituo (Loyang) Mechanical Engineering Company.
The delisting of companies is part of ongoing efforts by the UNGC Office to enhance the accountability and credibility of the initiative. The Integrity Measures were introduced in 2004 following a comprehensive review of the governance of the UN Global Compact. In accordance with the Integrity Measures, companies are required to communicate annually to their stakeholders on progress made in implementing the ten principles of the UN Global Compact. Failure to meet the Communication on Progress deadline results in a company being listed as "non-communicating" on the Global Compact website.
The delisting policy was first implemented in January 2008, when 394 companies were removed from the participant list. Since then, an additional 236 companies have been delisted, bringing to 630 the total number of companies delisted since the policy was implemented. In addition, 317 companies are currently listed as "inactive" on the website, of which 184 are at risk of being delisted in 2008. Inactive companies at risk of being delisted can regain their status as "active" participants by submitting a Communication on Progress.
Despite the large number of companies removed from the participant list, the overall number of global participants continues to rise. During the first half of 2008, 701 new companies have joined the UN Global Compact, increasing the total number of business participants to 4619, and the total number of all participants – companies plus non-business stakeholders — to 5982.