Full Disclosure: The Perils and Promise of Transparency

Which SUVs are most likely to rollover? What cities have the unhealthiest drinking water? Which factories are the most dangerous polluters? What cereals are the most nutritious? In recent decades, governments have sought to provide answers to such critical questions through public disclosure to force manufacturers, water authorities, and others to improve their products and practices. Corporate financial disclosure, nutritional labels, and school report cards are examples of such targeted transparency policies. At best, they create a light-handed approach to governance that improves markets, enriches public discourse, and empowers citizens. But such policies are frequently ineffective or counterproductive. Based on an analysis of eighteen U.S. and international policies, Full Disclosure shows that information is often incomplete, incomprehensible, or irrelevant to consumers, investors, workers, and community residents. To be successful, transparency policies must be accurate, keep ahead of disclosers' efforts to find loopholes, and, above all, focus on the needs of ordinary citizens.

Archon Fung is Associate Professor of Public Policy at Harvard's John F. Kennedy School of Government. His research examines the impacts on public and private governance of civic participation, public deliberation, and transparency. He has authored three books, including Empowered Participation: Reinventing Urban Democracy (2004); three edited collections; and more than fifty articles appearing in journals such as the American Political Science Review, Political Theory, Journal of Political Philosophy, Politics and Society, Governance, and Journal of Policy and Management.

Mary Graham is a Research Fellow at Harvard's John F. Kennedy School of Government. Her research focuses on the use of information strategies to foster social change, the politics of public information, innovative approaches to health and safety regulation, and new trends in environmental policy. She is the author of Democracy by Disclosure (2002) and The Morning After Earth Day (1999). Graham has written for the Atlantic Monthly, Financial Times, Environment magazine, Issues in Science and Technology, Brookings Review, and other publications.

David Weil is Professor of Economics and Everett W. Lord Distinguished Faculty Scholar at Boston University School of Management. His research spans the areas of labor market policy, industrial and labor relations, occupational safety and health, and regulatory policy. He has published widely in these areas and has also served as advisor to the U.S. Department of Labor, the Occupational Safety and Health Administration, and other government agencies. He has written two other books (including the award-winning A Stitch in Time: Lean Retailing and the Transformation of Manufacturing, 1999) and his articles have appeared in numerous journals including the RAND Journal of Economics, Industrial and Labor Relations Review, Harvard Business Review, and the Journal of Policy Analysis and Management.