Compliance is directly related to protecting organization’s
license to operate. Formally, “license” is just an
incorporation procedure with subsequent outcomes. Organizations
get their “official” license to operate from
regulators and legislators, and undoubtedly should comply
with their regulations and laws. But organizations also get
an “unofficial” license to operate from the community,
which is why it is important for businesses to meet public
expectations through compliance with voluntary codes,
industry codes, etc. (PWC, 2004). Organizations are under
pressure to foster goodwill among the societies in which
they operate. They are seen as powerful, and having the
means to support improvements, and they are expected to
contribute accordingly (WBCSD, 2004).