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It doesn't. The compass needle is a small magnet, the Earth is a big magnet and the magnetic north pole is pretty close to the geographic north pole. The compass needle aligns itself
http://wiki.answers.com/Q/Why_does_a_compass_needl...
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It is in alignment with the earths magnetic field. It does not point toward our mapped out geographical north.
http://wiki.answers.com/Q/Why_does_the_compass_nee...
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because it does.
http://wiki.answers.com/Q/Why_does_the_needle_on_a...
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north
http://wiki.answers.com/Q/Where_does_the_needle_of...
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