Governance & Policy
Principles-Based Approach
A regulatory design that sets broad principles and objectives rather than detailed prescriptive rules, leaving judgement on how to comply.
Definition
A principles-based approach to regulation or standard-setting defines the outcomes and overarching principles to be achieved — rather than detailed, prescriptive rules — and relies on the judgement of regulated entities to determine how to comply. It contrasts with rules-based approaches that specify exact requirements. Most sustainability reporting frameworks, including GRI and the ISSB standards, are deliberately principles-based.
Overview
The overview for this term is being prepared.
Review
Help keep this definition useful and accurate.
Submitted reviews stay private until an editor decides whether to accept and attribute them.
Contribute to this entry
How would you like to contribute?
Every endorsement and suggested edit is checked by an editor before anything changes publicly.