Voluntary Transparency Research Articles

Emerging Transparency Systems for News Governance to Protect Media Independence and Credibility in the Digital Infosphere

Media capture and disinformation are two problems that exist in all media markets with greater or lesser extent. The current digital context is helping to exacerbate these problems, which represent the two main threats to the public's right to be informed in a constitutional democracy. The current legal-constitutional frameworks to protect the public’s right to information across EU jurisdictions are no longer effective in guaranteeing two elements associated with this fundamental right: the independence of the media and the duty of truthfulness of journalists. As a solution to this problem, a system of transparency of media companies to reinforce these two elements may become a complementary tool to effectively guarantee the right to information. In this context, a number of voluntary transparency systems of news media organizations are emerging in the European Union and the United States to strengthen media independence and editorial credibility. In this article I first describe and compare these systems by using criteria associated with effective transparency policies. Then I identify standards that are common to all the initiatives focusing on news governance and I evaluate how these standards are being already implemented by a sample of five Anglo American media brands that are enjoying the credibility of their users evidenced by the increasing levels of subscription rates.

Physicians’ attitudes towards disclosure of payments from pharmaceutical companies in a nationwide voluntary transparency database: a cross-sectional survey

ObjectivesTo investigate German physicians’ attitudes towards and experiences with voluntary disclosure of payments by pharmaceutical companies in a public database and their impact on future decisions for or against disclosure.DesignA...

Voluntary Transparency in Spanish University Libraries

The research reported here aimed to ascertain the degree of transparency exhibited by Spanish public university libraries based on their active public disclosure practice. Transparency was measured by applying the TransPa_BA tool to the transparency-related information published by the country’s 50 public university libraries on their websites. The tool addresses 21 indicators grouped under eight areas, used in this study to measure university libraries’ public disclosure performance. The data collected were scored pursuant to the provisions of Spanish Act 19/2013 of 9 December on Transparency, Access to Public Information and Good Governance as adapted to university libraries, as well as in terms of other factors scantly developed in or omitted from the Act. The indicators and their respective parameters (content, form, accessibility, reusability, dating and updating or validity) constitute guidelines enabling libraries to enhance transparency and accountability by reporting their activities and practice in key areas to society in general and their stakeholders in particular. The objective is to help such institutions operate more transparently, for the information afforded by the indicators is deemed relevant to their activity while also monitoring their performance. The findings show that university libraries, which have become more transparent over time, are more transparent than other information units (national public libraries and historic and university archives). Some were nonetheless found to have room for improvement. On the grounds of their scores, these libraries can be classified under three headings: transparent, translucent or opaque. The parameters where good practices were most frequently identified included service usage rules and regulations, user charters and the annual report.

Universal Digital Ad Transparency

We argue that existing digital ad transparency efforts fall short of enabling holistic auditing required to address the growing challenges of online ads. We propose a technical standard for Universal Digital Ad Transparency. We review historical ad transparency regulation in the United States and motivations for a universal standard.We define criteria for determining which ad platforms should comply with Universal Ad Transparency, what content should be made transparent, and technical details about how ad platforms can comply with Universal Ad Transparency. We compare our proposed standard to current voluntary transparency efforts on the part of some digital ad platforms, and current pending legislation in the United States. Lastly, we discuss both potential problems with our proposal, and potential mitigations.

A Methodology for Corporate Transparency Evaluation Applied to Brazilian Companies: Legal X Voluntary Information

This paper presents a methodology for measuring the level of transparency based on information available in corporate investor relations websites. The methodology has four steps: the first step consists of identifying a list of 99 items corresponding to information elements that companies are expected to disclose through their investor relations websites. The second step checks the existence and quality of each of these information elements in the websites. The quality is measured considering the aspects of easy access, updating and completeness of the information. The third step comprises the attribution of weights to the information items considering the nature of the requirement of the information (whether it is legal, regulatory, good market practice or academic recommendation) and its relevance to decision-making of shareholders and investors. Professionals with a broad market vision perform this third step. The transparency index is calculated in the fourth step. The methodology is applied to a sample of Brazilian companies. The paper contributes presenting a methodology to assist the discussion about the importance of transparency and its connection with the increase of value for shareholders and for society. The methodology allows us to verify that transparency is dependent on the level of legal enforcement and that some companies have more voluntary transparency than others.

Sustainability and Corporate Governance: Transparency and Excessive Directors’ Remuneration in Listed Companies during the Global Financial Crisis

This article empirically examines the connection between the board of directors’ characteristics and excesses in remuneration for directors from a sustainability perspective, highlighting the role of information transparency on remuneration control. Using data from 73 listed companies in the period 2007–2012 (the global financial crisis), we find that (1) board size presents a non-linear relationship with excessive total directors’ remuneration during the crisis period; (2) other board characteristics (board independence, duality and directors’ ownership) do not show a significant relationship with excessive directors´ remuneration; and (3) voluntary transparency on directors’ remuneration significantly contributes to controlling excessive total directors’ remuneration, which contributes to the long-term sustainability of the firm. The results of this study provide good reasons to take into account the effect of corporate governance characteristics and transparency on the remuneration excesses committed during the global financial crisis.

Regulating lobbying through voluntary transparency clubs: The connoisseurs’ assessment. Evidence from the European Union

Regulating private actors’ participation in policy‐making is key to democratic governance. Across political systems, targeted transparency is used to regulate lobbying activities. We examine the extent to which primary regulatory targets (organizations with frequent access to policy‐makers) support the architecture of lobbying regulation regimes set up as voluntary transparency clubs. Our empirical testing ground is the European Union. We conceptualize the EU Transparency Register as a Voluntary Transparency Club, elaborate on its club goods, and derive a set of theoretical expectations about its members’ evaluations of the club's transparency standards, membership size, and monitoring and enforcement mechanisms. We find significant differences between members’ and non‐members’ assessment regarding the regulatory performance of this transparency club. Members with frequent access to executive policy‐makers criticize the club's transparency standards and do not consider the Register a useful regulatory instrument. Yet, they support expanding its regulatory remit and increasing the club membership.

Online Voluntary Transparency in Spanish Retail Firms. Measurement Index and CSR-Related Factors as Determinants

Information transparency is a key aspect of the Corporate Social Responsibility (CSR) strategy. The new information and communication technologies, such as the Internet, allow companies to disseminate relevant corporate information to different stakeholders and society, promoting voluntary online transparency. The analysis of social responsibility information published on corporate websites permits, among other issues, the development of disclosure and transparency indexes that facilitate comparisons between companies, and the assessment of potential drivers of the transparency strategy. In this sense, this study has two main objectives: (1) To develop a measurement index of voluntary online transparency, and (2) to identify relevant factors that influence on such transparency. The empirical research was carried out by analyzing the websites of a 176 large Spanish retail companies. Regression analysis was used to test the proposed hypotheses. The results obtained show that online voluntary transparency is encouraged by the implementation of CSR principles in store management and by the particular type of contributions in which the social commitment of the retail is materialized (monetary versus non-monetary), as well as by the fact that employees and/or society as a whole represent the main beneficiaries of CSR activities.

The Evaluation of Lobbying Regulations in the EC and the EP According to the Project of International Standards of Non-Governmental Organisations

The current lobbying regulation system in the EU (the EP and the EC), in theform of the official documentation, lacks in many ways according to theproject of International Standards for Lobbying Regulation. According tothis project, the system is the strongest in its regulatory scope andtransparency, and the weakest in the areas of oversight, sanctions, andintegrity. The outcome of our analysis is in accordance with the EU’svoluntary and self-regulatory system. The analysis has also shown that theEuropean Commission fulfils over 50 % of the established standards. Incontrast, the European Parliament fulfils less than 50 %. There is definitely alarge space for improvement for both of these EU institutions, especially inthe areas of integrity, participation, and access. The main problems of theUnion regulation are inconsistency, a voluntary transparency register, theinsufficiency of the data provided in the register, the absence of anindependent oversight institution and stricter sanctions, and the lenient useof legislative footprints.

Transparency systems: do businesses in North Rhine-Westphalia (Germany) regret the cancellation of the Smiley scheme?

Our paper explores how participants of voluntary transparency systems react to the cancellation of such programmes. We concern ourselves with participants of the voluntary transparency scheme known as the “North Rhine-Westphalia Smiley”. The Smiley system, which awarded the compliant behavior of businesses that joined it, was established in 2007 but cancelled in 2013 due to lack of participants. In our survey, the vast majority of the respondents express regret at the cancellation of the scheme. The goals of this paper are to (i) econometrically explain how socio-demographic, monetary, and non-monetary determinants influence participants’ willingness to continue with the voluntary transparency system and (ii) find reasons for the inconsistency between the lack of participants and the expression of regret within our survey. We find evidence that the non-monetary variables “revenue” and “award” and the monetary variable “revenue” influence participants’ regret. We speculate that status quo bias and loss aversion are the reasons why businesses favour maintaining the Smiley scheme once they have experienced it.

Access to public information: a scientometric study of legal versus voluntary transparency in the public sector

The aim of this study is to identify, synthesise and evaluate the current state of research into transparency in the public sector, with respect to the period 2005–2014, in order to provide a critical overview of published trends in this field and to identify future areas of interest. Specifically, we focus on the questions of mandatory and voluntary transparency that arouse most interest among researchers, institutions and journals in this field, with particular attention to the methodological aspects of the studies considered. To achieve these aims, various scientometric approaches are applied to articles included in the 2014 edition of the ISI Journal Citation Reports database for the research areas “Public Administration”, “Political Science” and “Information and Library Science”. During the past ten years the number of studies published in this field has increased considerably, particularly as regards voluntary transparency.

The Drivers of Voluntary Transparency in Nonprofits: Professionalization and Partnerships with Firms as Determinants

This research analyzes the drivers of voluntary transparency in nonprofit organizations (NPOs). Particularly, we assess the influence of key internal and external resource providers—paid staff and business partners—on the extent to which NPOs make accessible relevant information about themselves for public scrutiny on a voluntary basis. First, we conceptualize transparency as one of the critical dimensions of accountability and explain how it has become a key issue for NPOs. Second, we discuss professionalization and business–nonprofit partnerships as business-oriented strategies directly connected to the main challenges (and controversies) NPOs face. Third, following institutional theory as core theoretical framework, we propose a set of hypotheses linking those strategies to transparency. Their influence will be measured through an empirical research based on a survey to a representative sample of 325 NPOs. Regression analysis and probit models will be used to test the hypotheses. The results confirm the positive effects of both professionalization and partnerships, although each strategy influences different dimensions of transparency.

Corporate responses to stakeholder activism: partnerships and surveillance

PurposeCorporations are increasingly expected to act responsibly. The purpose of this paper is to examine two types of corporate responses to these expectations: overt and covert responses. Specifically, it examines oil companies’ involvement in multi-stakeholder initiatives and sponsorships (overt responses) and their monitoring of critics, including non-governmental organisations (NGOs) and activist organisations (covert responses).Design/methodology/approachTheoretically, the paper draws on theories of visibility and post-political regulation. Empirically, it focuses on case studies of the Extractive Industries Transparency Initiative (EITI), Shell and BP, drawing on qualitative methods.FindingsThe paper demonstrates that overt responses create an impression of consensus between antagonistic interests and that covert responses support this impression by containing deep-seated conflicts.Research limitations/implicationsCorporate responses have implications for the role of the corporation as a (post-)political actor. By containing antagonism and creating an impression of consensus, the interplay between overt and covert responses open up further possibilities for the proliferation of soft governance and self-regulation through participation in voluntary transparency and corporate social responsibility (CSR) activities. Data on covert practices of corporations are difficult to access. This impedes possibilities for fully assessing their extent. The findings of this paper support trends emerging from recent research on covert corporate intelligence practices, but more research is needed to provide a systematic overview.Originality/valueThe paper contributes to the understudied area of covert corporate activity in research on the political role of multinational corporations.

Professionalization and Voluntary Transparency Practices in Nonprofit Organizations

There are currently no public disclosure requirements for privately controlled charitable organizations in Germany. This study examines under which conditions German nonprofits, including both public charities and foundations, voluntarily choose transparency. Transparent nonprofits are defined herein as those that publicly disclose their annual reports and detailed financial information. A very small number of German nonprofits do so. The results of a crisp‐set Qualitative Comparative Analysis suggest that the driving force behind the voluntary transparency of organizations is professional management rather than revealed cases of malpractice or stakeholder demands.

Seeing through transparency in education reform: Illuminating the “local”

Utilizing “assemblage,” a notion associated with Actor-Network Theory (ANT), we explore what discourses of transparency can, and cannot, accomplish in a network of education reform that includes schools, government agencies, and community organizations. Drawing on data collected between July 2011 and March 2013 in an ethnographically-informed case study, we interrogate the ways in which notions of transparency illuminate, and also conceal, information, as well as reveal how they reorder power dynamics and relationships, impacting what it legitimized as reform in a city in Western New York. We problematize the linkages between the political conditions in which mandatory transparency and accountability in schooling become connected to voluntary transparency in local education reform, and we examine the investment made by schools and reform organizations in using transparency as a proxy for meeting accountability demands and establishing education expertise. The findings show that discourses and enactments of transparency can be effective in drawing targeted and repeated attention to select things, such as funding inequities. However, such discourses can also be utilized to obscure other issues, such as persistent disparities in academic achievement by race. When used synonymously with accountability, transparency can, and is, incorrectly positioned as an education solution.

Is it Worth Being Transparent? Evidence from the Russian Banking System

Information disclosure is considered as an important prerequisite for the efficient functioning of a financial system. Costs and benefits of information disclosure in the banking system have been extensively theoretically and empirically investigated. However, the effect of voluntary transparency on bank market power and market share is still empirically unexplored. Our paper fills this gap in the literature, examining two hundred of the largest Russian banks in the period 20042013. The findings confirm that voluntary transparency – absolute and relative - affects a bank’s market power and market shares. Moreover, this relation depends on the bank’s asset quality.

Security in Space: What Is at Stake and How Do We Move Forward?

In recent decades, satellites have become increasingly important in the economic, civil, and military spheres. At the same time, space has become more crowded with satellites and the debris from their use, and many more states have become spacefaring. However, the legal and normative regime has not kept pace with these changes. Recent trends and events-including demonstrations of antisatellite (ASAT) capability, a collision between satellites, and a dramatic increase in dangerous space debris-make clear that the space environment needs more protection, that satellites face growing risks, and that space activities may be a potential source of mistrust and tension between countries. While voluntary confidence-building and transparency measures can help solve some of these issues, more substantive engagement is required to keep space safe and secure into the future. KEYWORDS: space security, antisatellite capability, space debris, international security. THE INTERNATIONAL COMMUNITY HAS A VITAL INTEREST IN ENSURING THE security of space. It is in all our interests to keep the space environment usable now and in the future and satellites safe and secure, as well as to enhance stability not only in space but also on the ground. While satellites have enormous potential to contribute to global stability and prosperity, space technology also can engender highly threatening military capabilities. Some argue that warfare in (and from) space follows naturally from war on Earth. How do we manage these strategic issues into the future to preserve the beneficial agency of space? How do we ensure that using space capabilities does not escalate terrestrial conflicts? How do we transition gracefully from the present to a future where many more states have interests and assets in space? These issues are complex, but the need for constructive action to solve them is increasingly urgent. The number of states, as well as companies, with important interests in space continues to grow, as does the number of satellites. Also growing is the amount of dangerous space debris and the technical knowhow to interfere with satellites. As satellites become increasingly valuable, conflicts over space assets and the way they are used become increasingly likely. However, the existing laws and norms relating to the use of space have not kept pace with these changes.As a result, challenges to stability and security are growing, with ever more satellites and few restrictions on behavior, increasing the risks of costly accidents and of misunderstandings that could lead to conflicts on the ground. Humanity's relationship to space changed on October 4, 1957, when the Soviet Union launched Sputnik 1 into orbit. The simple aluminum sphere became the first artificial Earth-orbiting satellite, marking a stunning technical achievement and a spectacular example of the human drive toward knowledge and discovery. The launch was also a significant political achievement, adding a new dimension to the fierce competition between the United States and the Soviet Union. Fifty years later, the once-impossible has become routine: More than forty-five hundred satellites have been launched into orbit, and more than nine hundred of them still operate today. Launching satellites is no longer the exclusive province of national governments- private companies have been doing so since the 1980s. While in the early decades of the space age, the space race played a symbolic role in a fraught bilateral strategic relationship between the United States and the Soviet Union, today satellites are owned by private companies and governments and space-derived services are used worldwide. However, recent trends and events-including the demonstrations of antisatellite (ASAT) capability, a collision between satellites, and a dramatic increase in dangerous space debris-make clear that the space environment needs more protection, that satellites face growing risks, and that space activities may be a potential source of mistrust and tension between countries. …

Growth Potential and Corporate Disclosure: The Case of Foreign Trade Liberalization

With every corporate scandal related to poor financial disclosure, attention is often focused on a government's role in requiring better disclosure. However, firms can voluntarily improve disclosure in response to market forces. This paper studies whether opportunities for corporate growth encourage voluntary transparency. To address potential endogeneity in the key regressor, we identify an exogenous source of changes in growth potential - changes in the trade policies of other countries. As export opportunities improve (e.g. lower tariff barriers in foreign markets) firms often need more financing to expand production. In order to attract potential investors and creditors, firms may be motivated to improve their financial disclosure. This effect should be particularly strong for those firms that are most dependent on external financing. We test this hypothesis by examining 2256 listed firms in 45 countries during the period of 1992-2005. Changes in a firm's export (and growth) opportunities are measured by changes to trading partners' tariff rates for goods produced in the SIC 4-digit sector that corresponds to that firm's main business activities. Our evidence supports the conclusion that increased growth opportunities promote better corporate disclosure, especially in industries that depend heavily on external financing.

Excellence Is a Necessity, Not a Luxury

THE CENTRAL THEME in both feature articles in this issue is the need to embrace measurements in the healthcare industry. This supports not only my personal belief as a physician and healthcare leader but also the philosophy of the entire CHRISTUS Health system: if you cannot measure it, you should not do it. We believe that if you cannot measure it, you will never know if you achieved your goal, you cannot hold anyone accountable for the task, and you will not be energized by knowing that you did, in fact, cross the finish line. Healthcare is complex, so the energy received from celebrating the incremental victories is to continue on a journey to excellence. THE IMPORTANCE OF SUPPORTING QUALITY MEASUREMENT Although the multiple reasons for supporting measurements of quality of care are well articulated in both articles, the primary reason for supporting measurements must be that excellence in healthcare can only be achieved if benchmark, best-practice processes are implemented and if benchmark, evidence-based outcomes are achieved. Ultimately, healthcare leaders must firmly embrace the belief that-for all patients and families who enter our doors-excellence is not a but a necessity. This commitment to measurement, which is a major driver to excellence, will be constant and complete if we always remember that the millions of people who enter the doors of our clinics, hospitals, and outpatient procedure centers each day in the United States trust us, the healthcare providers, enough to surrender their lives or the lives of their loved ones to us. What an awesome responsibility we have! Measuring our quality outcomes is the only way to fulfill this responsibility and to prove that their trust in us is justified. It is clear, somewhat contrary to the statement in the summary of the article by Patrice Spath, that the value of performance data is not in question. What is in question is the value of outdated data, inconsistent data, and inaccessible data, all of which are clearly illustrated, referenced, and discussed. If all physicians, nurses, and other healthcare providers were completely honest, they would admit that using evidence-based treatment protocols is the best way to ensure that a positive outcome will be achieved for each and every patient. All clinicians know that the best outcomes are achieved when consistency is applied to the care process. They also know that care processes depend on the review of accurate diagnostic data, including radiology and laboratory results. And finally, they know that the best way to achieve consistently excellent outcomes is to constantly compare their outcomes to those of their peers. Is not the common thread in all three of these truths the recognition that success in achieving excellent clinical outcomes depends on the intense collection and reviews of measurements? QUALITY MUST REMAIN AN ESSENTIAL GOAL Although both articles appropriately describe many present-day barriers to achieving quality through measurement, the program Ron Anderson, Ruben Amarasingham, and S. Sue Pickens describe at Parkland Health & Hospital System clearly delineates what can be accomplished if the quest for quality becomes an institutional imperative. With such an imperative embraced as an essential and not a luxury, the barriers, if not eradicated, are minimized to a level that they are surmountable. More consistency and standardization replace no consistency. Regular collection of data replaces spotty reporting. Voluntary transparency replaces mandatory reporting. Two-year-old data as reported on governmental Web pages are replaced with current data on the health system's Web page. Mandatory collection of data is supported while computer-based programs are being created, and consumer-friendly methodology of data access and interpretation replace cumbersome governmental sites, which often deter high utilization. EXCELLENCE IN ALL AREAS IS NECESSARY AND ATTAINABLE Although it is obvious that these articles deal first and foremost with the issue of clinical quality measurement and implementation, one of the tenets strongly held by CHRISTUS leadership is that improvement in an organization must take place on several fronts at once. …