What is the difference between an organization that is being "Good" and being a "Principled Performer"?

What is the difference between an organization that is being "Good" and being a "Principled Performer"?
A . An organization must measure up to the Principled Performance definition to be a "Principled Performer," regardless of whether its objectives are subjectively perceived or preferred as "Good" or "Bad."
B . A "Principled Performer" always pursues objectives that are considered "Good" by society.
C . There is no difference: "Good" and a "Principled Performer" are synonymous.
D . A "Principled Performer" is an organization that donates a significant portion of its profits to charity.

View Answer

Answer: A

Explanation:

The distinction between being "Good" and being a "Principled Performer" lies in the approach and framework used to meet objectives, irrespective of whether the objectives are considered "good" or "bad" by society.

"Good" vs. "Principled Performer":

"Good" is a subjective measure based on societal norms, values, or preferences.

A "Principled Performer", however, aligns its objectives and operations with ethical practices, risk management, compliance, and governance, irrespective of societal perceptions.

Definition of a Principled Performer:

The term originates from OCEG’s Principled Performance model, which emphasizes the achievement of objectives with integrity, accountability, and foresight.

Organizations that ensure their processes and decisions meet defined principles of performance, even under external pressures, qualify as "Principled Performers."

Misconceptions Debunked:

Option B is incorrect because "Principled Performers" do not necessarily align with what society perceives as "Good."

Option C is incorrect as it equates two fundamentally different concepts.

Option D is irrelevant, as charity is not a determining factor of principled performance.

Reference: OCEG’s GRC Capability Model: Defines the characteristics of Principled Performance and how it differs from subjective notions of "Good."

Ethics and Compliance Standards (ISO 37301): Demonstrates the operationalization of principles within organizations.

NIST RMF and COSO ERM Frameworks: Discuss how principled approaches are embedded into risk and governance processes.