At the time of its original founding in 1842, the University of Virginia's Honor System included a Non-Toleration Clause that required UVA students to report any Offenses they witnessed, with the reasoning that "to ignore these Acts committed by another student is to make one an accomplice and equally guilty of a violation of Honor". With the removal of this Clause in 1979, and the recent transition in 2023 to a multi-sanction system, the Honor Committee is often criticized for being excessively lenient towards guilty students, especially when compared to non-toleration, single-sanction systems at schools such as the Virginia Military Institute.
The Community of Trust (COT) can be characterized as a public good shared by all of UVA's community members; no individual is excluded from the benefits of acting with integrity and trusting one another, and one person's ability to act with integrity does not affect another person's ability to do so as well. Applying the non-toleration clause towards student integrity, a faculty member or student's decision not to report a witnessed Offense can be characterized as a free-rider problem; by electing to avoid the costs of reporting an Offense, the COT is deeply eroded. This problem is only worsened by a large n value (the COT has tens of thousands of members) and the existence of reduced social pressure towards acting with integrity among some students.
Why did the University of Virginia Honor Committee elect to remove the clause then? Even when the Committee passed this clause, the decision of collective action was truly made among the broader COT. In the context of this Clause, external costs are the costs one endures from unreported Offenses, and decision-making costs would be the effort required for everyone to agree with the Non-Toleration Clause by actively Reporting witnessed Offenses. While mandatory reporting did strive to reduce the external costs, decision-making costs increased substantially, considering all the time and effort of getting people to agree by acting in accordance with the Clause, as well as subsequent enforcement costs of investigating and adjudicating instances of students choosing not to Report a witnessed Offense. This would render the Honor System's institutional costs of enforcement extremely high, and considering that the removal of the Non-Toleration Clause did not affect the number of Reported Offenses in the long term, the tradeoff of external costs seems to have been outweighed by the high decision-making costs. Thus, with such a large portion of the COT expressing reluctance towards the Non-Toleration Clause, the Committee reformed the System, but continues to consider the additional costs we all endure by not mandating Reporting.





