diff --git a/cmd/initialize/init_policies.go b/cmd/initialize/init_policies.go
index 12ed1c9ce..798aa621d 100644
--- a/cmd/initialize/init_policies.go
+++ b/cmd/initialize/init_policies.go
@@ -55,21 +55,7 @@ func initPoliciesCmd() *cobra.Command {
 		},
 		RunE: func(cmd *cobra.Command, args []string) error {
 			ctx := cmd.Context()
-			fs := utils.FS(ctx)
-			workDir := destDir
-			err := fs.MkdirAll(workDir, 0755)
-			if err != nil {
-				log.Debug("Failed to create policy directory!")
-				return err
-			}
-			policyPath := filepath.Join(workDir, "sample.rego")
-			file, err := fs.Create(policyPath)
-			if err != nil {
-				log.Debug("Failed to create sample policy!")
-				return err
-			}
-			defer file.Close()
-			fmt.Fprintf(file, "%s", hd.Doc(`
+			samplePolicy := hd.Doc(`
 				# Simplest never-failing policy
 				package policy.release.my_package
 
@@ -86,16 +72,30 @@ func initPoliciesCmd() *cobra.Command {
 					false
 					result := "Never denies"
 				}
-			`))
-
+			`)
+			if destDir == "" {
+				fmt.Fprintf(cmd.OutOrStdout(), "%s", samplePolicy)
+				return nil
+			}
+			fs := utils.FS(ctx)
+			workDir := destDir
+			err := fs.MkdirAll(workDir, 0755)
+			if err != nil {
+				log.Debug("Failed to create policy directory!")
+				return err
+			}
+			policyPath := filepath.Join(workDir, "sample.rego")
+			file, err := fs.Create(policyPath)
+			if err != nil {
+				log.Debug("Failed to create sample policy!")
+				return err
+			}
+			defer file.Close()
+			fmt.Fprintf(file, "%s", samplePolicy)
 			return nil
 		},
 	}
 
-	cmd.Flags().StringVarP(&destDir, "dest-dir", "d", "", "Directory to use when creating EC policy scaffolding")
-	if err := cmd.MarkFlagRequired("dest-dir"); err != nil {
-		panic(err)
-	}
-
+	cmd.Flags().StringVarP(&destDir, "dest-dir", "d", "", "Directory to use when creating EC policy scaffolding. If not specified stdout will be used.")
 	return cmd
 }
diff --git a/cmd/initialize/init_policies_test.go b/cmd/initialize/init_policies_test.go
index b4fa3c40a..8d0018789 100644
--- a/cmd/initialize/init_policies_test.go
+++ b/cmd/initialize/init_policies_test.go
@@ -18,11 +18,11 @@ package initialize
 
 import (
 	"bytes"
+	"context"
 	"testing"
 
 	"github.com/spf13/afero"
 	"github.com/stretchr/testify/assert"
-	"golang.org/x/net/context"
 
 	"github.com/enterprise-contract/ec-cli/internal/utils"
 )
@@ -33,14 +33,51 @@ func TestInitializeNoError(t *testing.T) {
 
 	cmd := initPoliciesCmd()
 	cmd.SetContext(ctx)
-	buffy := bytes.Buffer{}
-	cmd.SetOut(&buffy)
+	buffy := new(bytes.Buffer)
+	cmd.SetOut(buffy)
+
+	cmd.SetArgs([]string{
+		"--dest-dir",
+		"sample",
+	})
+
+	err := cmd.Execute()
+	assert.NoError(t, err)
+}
+
+func TestInitializeSamplePolicy(t *testing.T) {
+	fs := afero.NewMemMapFs()
+	ctx := utils.WithFS(context.Background(), fs)
+
+	cmd := initPoliciesCmd()
+	cmd.SetContext(ctx)
+	buffy := new(bytes.Buffer)
+	cmd.SetOut(buffy)
 
 	cmd.SetArgs([]string{
 		"--dest-dir",
-		"todo",
+		"sample",
 	})
 
 	err := cmd.Execute()
 	assert.NoError(t, err)
+	samplePolicy, err := afero.ReadFile(fs, "sample/sample.rego")
+	if err != nil {
+		t.Fatal(err)
+	}
+	assert.Contains(t, string(samplePolicy), "Simplest never-failing policy")
+}
+
+func TestInitializeStdOut(t *testing.T) {
+	fs := afero.NewMemMapFs()
+	ctx := utils.WithFS(context.Background(), fs)
+
+	cmd := initPoliciesCmd()
+	cmd.SetContext(ctx)
+	buffy := bytes.Buffer{}
+	cmd.SetOut(&buffy)
+
+	err := cmd.Execute()
+	assert.NoError(t, err)
+	assert.Contains(t, buffy.String(), "Simplest never-failing policy")
 }