We can argue that it is important for a university to maintain high standards in academic integrity so that grades and degrees earned at that university have real meaning.
If a university does not have high standards, it can mean that people can do essentially whatever they want when writing papers or taking tests. Such a university does not do much to ensure that students are completing work that is really their own. When this happens, the value of grades and degrees from the university drops. It becomes unclear as to whether a student is actually earning a grade or a degree or is simply obtaining them through fraudulent means. A university without strong standards will soon lose credibility and degrees from that university will not be very meaningful.