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The problem is the sanctions. IF this were a voluntary program with no sanctions it would just be manipulative. But with sanctions its sinister.
Greek chapters exist to exist, and service its members. Not to have all those other goals per se.
What the administration does by creating a "plan" like that is force you to justify your existance based on their ideas of what your purpose should be.
The ultimate penalty to not conforming to their ideas is they take away your existance.
Let me give you an example:
Chapter X has existed for years blithely unconcerned with the administration. They have 60 members and have never had a risk management violation. They pay their national dues. They have lots of fun.
They don't belong to many other organizations on campus, like most students they aren't interested, unlike most students they already belong to one solid organization.
They don't do a lot of community service, and what they do accomplish they can't be bothered to report to the administration. After all, they are doing it for themselves.
Maybe their grades are even under the campus average.
So suddenly the college creates the 5-star program. And chapter X goes from being fine, viable and having lots of fun to being a One or Two star chapter.
A one star chapter would mean they can't have intake and can't socialize. A two star chapter can't socialize. A three star chapter can't socialize.
So all the fun stops for the entire group and they are threatened with death, unless they decide to do things that they had decided as individuals they didn't want to do. Do more community service, join other organizations etc etc.
There is no difference in the organization before it gets the One Star rating or right after, except that now they are somehow "bad."
See how accepting someone else's definition can hurt a chapter?
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