The most appropriate reason for a business to comply with the United Nations (UN) Global Compact practices typically would be to:

The most appropriate reason for a business to comply with the United Nations (UN) Global Compact practices typically would be to:
A . enhance the competitive advantage.
B . gain access to proven management tools.
C . reduce the threat of organized labor.
D . reduce the cost of operating in multiple countries.

View Answer

Answer: A

Explanation:

Complying with the United Nations (UN) Global Compact practices can enhance a company’s competitive advantage by improving its reputation, attracting socially conscious consumers, and fostering loyalty among stakeholders. This compliance demonstrates a commitment to sustainable and ethical practices, which can differentiate a business in the marketplace.

Gaining access to proven management tools is not the primary reason for compliance, though it can be a secondary benefit.

Reducing the threat of organized labor is not aligned with the principles of the UN Global Compact, which support fair labor practices.

Reducing the cost of operating in multiple countries is not a typical reason for compliance; in fact, adhering to these principles might sometimes increase costs in the short term but provide long-term benefits.

Reference: United Nations Global Compact. (2021). "The Ten Principles of the UN Global Compact." Porter, M. E., & Kramer, M. R. (2006). "Strategy and Society: The Link Between Competitive Advantage and Corporate Social Responsibility." Harvard Business Review.