Introduction

The Communication on Progress (COP) requirement was introduced in 2003 and has, since then, become the most important integrity measure of the Global Compact. It obligates all business participants to publicly report on the progress they have made in implementing their commitments to the twin goals of the Global Compact, embracing and enacting the ten Principles and undertaking projects in the pursuit of wider UN goals (see box 15.1). Many observers see the COP as an effective mechanism of public disclosure that holds companies accountable regarding their commitment to the Global Compact; others criticize the same COP for being too flexible a model, vague and lacking rigour. This chapter aims to set out the rationale for the need to have a public disclosure requirement, its assumptions and limitations, how the policy has evolved over time, trends in COP reporting and finally what the current challenges are, and how they can be overcome.

Need for accountability and transparency: origins and rationale

From its inception, the Global Compact was criticized for being a voluntary initiative with no binding rules or accountability. Allegations ranged from ‘bluewashing’ – that is to say, using the blue from the UN brand to create a positive spin, to cover over the real issues – to preempting more rigorous normative regulations on companies' responsibilities in a globalized economy: in short, there was widespread scepticism.