Certified Supply Chain Professional (CSCP) Practice Exam

What is the purpose of the United Nations Global Compact?

1. To increase tariffs on international trade

2. To align business operations with ten key principles

3. To promote monopolies within industries

4. To standardize currency across nations

The correct answer is: To align business operations with ten key principles

The purpose of the United Nations Global Compact is specifically to align business operations with ten key principles that focus on human rights, labor, the environment, and anti-corruption. By encouraging companies to adopt these principles, the initiative aims to promote responsible corporate citizenship and sustainable development. Participating organizations are encouraged to integrate these values into their business strategies and operations, creating a positive impact on society and the environment. This alignment fosters a commitment among businesses to contribute to a more sustainable and equitable global economy. The other options suggest directions that contradict the Global Compact's mission. Increasing tariffs could hinder international cooperation, promoting monopolies undermines fair competition and innovation, and standardizing currency is more of a financial agreement between nations rather than a focus of the Global Compact, which is centered on ethical business practices and social responsibility.