True.
The Committee of Sponsoring Organizations of the Treadway Commission (COSO) acknowledges that in modern business, the reputation of an organization has become crucial. While compliance with regulations and standards is important, it alone is no longer sufficient to sustain the organization effectively. Maintaining a positive reputation involves more than just adhering to laws and regulations; it requires ethical behavior, transparency, and accountability, which are essential for building and maintaining trust with stakeholders. Therefore, COSO emphasizes the importance of focusing on broader principles beyond mere compliance to ensure the long-term sustainability and success of an organization.
