The Private Provision of Public Goods: Corporate Commitments and the United Nations Global Compact

We examine the commitments of transnational corporations to human rights, labor, environmental, and anti-corruption standards. Modeling commitment as a function of the nature of the firm's business activities and conditioned by neighborhood and audience contexts, we investigate adherence to the principles entailed in the UN Global Compact program by the world's 2000 largest companies. Our results suggest that the decisions to participate in and to take steps to comply with the Global Compact are influenced by the characteristics of the firm as it adapts to its institutional and political environment. Signing up to the program increases the likelihood of firms developing human rights-related company policies and receiving positive external assessments of their performance.