Exploring the United Nations Global Compact adoption in a multi‐level perspective

Abstract From a multi‐level perspective, we aimed to identify the drivers of United Nations Global Compact (UNGC) adoption. On a micro‐level, the Resource‐Based View theory allowed us to discuss how the firm's internal environment influences its adoption. At the macro‐level, we focused on the Varieties of Capitalism approach. Hence, the meso‐level mediated the interaction between the other two levels, in which the Upper Echelons Theory could predict how some board characteristics influence UNGC adoption. Data from 1773 companies headquartered in countries with coordinated and liberal economies were analyzed by multivariate analysis. The empirical results presented evidence that company size, the size of the board of directors, and the type of capitalism that the country follows positively affect UNGC adoption. In conclusion, three characteristics matter for UNGC adoption. Larger boards tend to influence the adoption of the UNGC, showing that a greater diversity of board members' backgrounds can bring results regarding social and environmental issues.