The Financial Times noted a few weeks ago that some investors are asking questions about the reporting (and lack of reporting) on the UN’s Global Compact, a framework for businesses to highlight their commitments to human rights, labour, the environment and fighting corruption.
I am not sure investor warnings will shame anyone into reporting, but it is good they are paying attention. The issue of “free-riders” signing up and not doing anything is really a problem of those who actually try to take the issues seriously. Efforts are needed to improve indicators that can be included in reports. The Global Reporting Initiative has created some tools to help companies begin doing this.
