Global Compact Membership in Europe and the US: A Case Study of the Automobile Industry

Among the current 2,989 participating companies in the United Nations Global Compact (GC), there are 48% based in Europe, while US companies constitute only 3% of the business participants. The analysis of four companies from the automobile industry in Germany and the US reveals fear of litigation as well as a lack of awareness of the GC brand in the US as the major obstacles towards GC membership in the US. The paper makes several suggestions in order to leverage the acceptance of the GC among companies, particularly US companies: strengthening the GC's institutional set-up; getting more governments on board; seeking more constructive contributions from civil-society organisations; adopting a uniform, industry-related reporting system; and achieving more leverage through European firms.