Voluntary Compliance

Voluntary compliance is one of possible ways of practicing corporate social responsibility.

Voluntary compliance is seen as an alternative to the state-imposed regulations on company's behavior. Proponents of voluntary compliance argue that it is in company's own interest to behave socially responsibly and that in pursuit of good public image, company will withdraw from doing actions, which could damage its perception by public. Thus there is no need for state regulations.

On the other hand, opponents deem that companies may claim to voluntary adhere to self-imposed regulations but in practice they often follow profit maximizing behavior often violating stakeholders' interests. However, such behavior may be problematic not only morally or ethically but also legally: corporate codes of conduct may give rise to legal obligations pursuant to national laws of European Union member states implementing the Unfair Commercial Practices Directive or pursuant to consumer protection laws in other jurisdictions, including (subject to the effect of the Federal and State constitutions) the States of the United States of America.

In the United States, voluntary compliance may also refer to an argument made by tax protesters, who suggest that payment of income tax is voluntary, and not legally enforcable. However, this argument is rejected by the Internal Revenue Service, and has not been accepted by the U.S. courts.

Famous quotes containing the words voluntary and/or compliance:

    Men are not therefore put to death, or punished for that their theft proceedeth from election; but because it was noxious and contrary to men’s preservation, and the punishment conducing to the preservation of the rest, inasmuch as to punish those that do voluntary hurt, and none else, frameth and maketh men’s wills such as men would have them.
    Thomas Hobbes (1579–1688)

    I am not of the opinion generally entertained in this country [England], that man lives by Greek and Latin alone; that is, by knowing a great many words of two dead languages, which nobody living knows perfectly, and which are of no use in the common intercourse of life. Useful knowledge, in my opinion, consists of modern languages, history, and geography; some Latin may be thrown into the bargain, in compliance with custom, and for closet amusement.
    Philip Dormer Stanhope, 4th Earl Chesterfield (1694–1773)