Disclosure vs. Non-Disclosure of Information

When deciding whether or not to disclose certain information, companies should consider the following:

• Adopt a ‘presumption in favour of disclosure’. According to the International Finance Corporation, this means ‘being forthcoming with information whenever possible, especially if there is no compelling reason not to share it’. However, beware of providing so many details that it becomes difficult for communities to discern critical information. Stakeholder Engagement: A Good Practice Handbook for Companies Doing Business in Emerging Markets, p. 28 (International Finance Corporation 2007)
• Ensure that the provision of information does not violate privacy or put stakeholders at risk. Discuss with communities whether there is information that they want to remain confidential. Due Diligence Guidance for Meaningful Stakeholder Engagement in the Extractive Sector, p. 49 (OECD 2017)
• Weigh considerations for non-disclosure against the need for communities and other stakeholder groups to have adequate information in order to protect their interests. As explained by the International Finance Corporation, ‘lack of information can lead to the spread of misinformation about a project that can be damaging to a company’s reputation […] and undermine efforts to engage in an informed dialogue with stakeholders’. This could consequently lead to security risks. Stakeholder Engagement: A Good Practice Handbook for Companies Doing Business in Emerging Markets, p. 28 (International Finance Corporation 2007).
• When full transparency is deemed imprudent, the OECD recommends that companies ‘provide a valid explanation or justification for why the information has not been shared’. Due Diligence Guidance for Meaningful Stakeholder Engagement in the Extractive Sector, p. 40 (OECD 2017)

When full transparency is deemed imprudent, the OECD recommends that companies ‘provide a valid explanation or justification for why the information has not been shared’.