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Revision with unchanged content. The Global Compact (GC) is a multistakeholder initiative that was introduced in 1999 by former United Nations Secretary-General Kofi Annan. The initiative aims at filling the governance void of the global economy. While 47% of the 2659 participating companies are based in Europe, U.S. American companies constitute only 3% of the business participants. This book analyzes reasons for joining or not joining the Global Compact. Six determinants are used to analyze a company´s decision to join or not to join the initiative; they are the consumer´s, employee´s, and shareholder´s expectations, the feasability of the Compact´s requirements, the company´s world view regarding the United Nations as well as Corporate Social Responsibility, and, finally, the CEO´s information regarding litigation risk. In addition, companies´ compliance with the Global Compact´s principles or alternative initiatives is assessed by using a compliance model taken from IR theory.

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The author has studied Political Science and Economics in Bonn, Berlin, and at Duke University, USA. He worked as a Carlo-Schmid Fellow and Consultant at UNIDO´s CSR and Business Partnership Program. The author is a PhD Candidate at the Free University Berlin and is a Fellow at the German Institute for International and Security Affairs (SWP).

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