1. First it is awarded to someone who has publicly denounced a writer as morally reprehensible, in the loudest, most uncompromising manner.
(Demanding that the works of the accused should be burned in public certainly qualifies. Calling the accused a "fascist" is taken as read, but you may have to try harder than that -- the competition can get fierce.)
2. Said winner is then denounced in turn, for some moral failing (small or large doesn't matter - you must have no sense of proportion)...
3. The award is then taken away and passed on to the most chest-thumpingly self-righteous denouncer of the previous winner...
4. ...and then that winner is "found out" and denounced (for something or other)... the award is passed on to the best of the latest denouncers... and so on.
In the end, everyone gets the award because nobody's pure enough to keep it. (Hence the words "Certified Righteous (for now).")
(Even I might get the award eventually...)