Voluntary compliance is conforming (" complying") to a rule, without facing negative consequences if not complying.

In corporations

Voluntary compliance is one of possible ways of practicing

corporate social responsibility Corporate social responsibility (CSR) or corporate social impact is a form of international private business industry self-regulation, self-regulation which aims to contribute to societal goals of a philanthropy, philanthropic, activist, or chari ...

. It is seen as an alternative to the state-imposed regulations on a company's behavior. Proponents of voluntary compliance argue that it is in a company's own interest to behave in a socially responsible manner and that in pursuit of good public image, the company will refrain from actions which could damage its perception by the public. Thus there is no need for state regulations. On the other hand, opponents deem that companies may claim to voluntarily 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 The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are Geography of the European Union, located primarily in Europe. The u ...

member states implementing the Unfair Commercial Practices Directive or pursuant to

consumer protection Consumer protection is the practice of safeguarding buyers of goods and services, and the public, against unfair practices in the marketplace. Consumer protection measures are often established by law. Such laws are intended to prevent business ...

laws in other jurisdictions, including (subject to the effect of the federal and state constitutions) the states of the United States of America.

U.S. taxation protests

In the United States, ''voluntary compliance'' may also refer to an argument made by tax protesters who suggest that payment of

income tax An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Tax ...

is voluntary, and not legally enforceable. However, this argument is rejected by the

Internal Revenue Service The Internal Revenue Service (IRS) is the revenue service for the Federal government of the United States, United States federal government, which is responsible for collecting Taxation in the United States, U.S. federal taxes and administerin ...

, and has not been accepted by the U.S. courts.

References

{{reflist Corporate social responsibility

In corporations

U.S. taxation protests

See also

References