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“The Sustainability Report Card: How to Avoid GreenWashing”

“The Sustainability Report Card: How to Avoid GreenWashing”

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Compliance-based (code of conduct) vs.<br />

Integrity-based approaches (code of ethics)<br />

Compliance-Based<br />

• Rules, laws<br />

• Conformity with externally imposed<br />

standards<br />

• Prevent criminal misconduct<br />

• Lawyer driven<br />

• Educational approach: policies and rules,<br />

legalistic<br />

• Employee discretion: limited<br />

• Control: auditing<br />

CODE OF CONDUCT<br />

• Specific<br />

• Prescription/directives<br />

• Uniformity<br />

• Enforceable statements of specific<br />

behavior<br />

Integrity-Based<br />

• Values, ethics, guiding principles<br />

• Self-governance <strong>to</strong> chosen standard: self<br />

imposed<br />

• Enable responsible conduct<br />

• Management-driven<br />

• Educational approach: policies and rules,<br />

but also guidelines and awareness<br />

through leadership<br />

• Employee discretion: increased<br />

• Control: accountability, organizational<br />

systems, and decision processes<br />

CODE OF ETHICS<br />

• General<br />

• Values/principles<br />

• Judgment<br />

• “Empowerment and Aspiration”<br />

Source: Sexty, R., Canadian Business and Society, Ethics and Responsibility First Edition (2008), McGraw-Hill Ryerson Limited, Canada

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