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My first thought as I read the list was that it seemed they would have a really hard time enforcing it. I do hope there's more to it than this because it seems to put an incident like hazing (i.e. could cause a chapter to lose recruitment privileges) on the same level as not doing enough community service.
We have a similar program for Gamma Phi, but the purpose it to recognize those chapters that excel. It's not used to punish at all.
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