Will Exxon Mobil be less competitive by being more transparent ?

An article in Bloombergbusinessweek (May 14, 2012) describes efforts by ExxonMobil, among others, to eliminate a 1305 requirement under the Dodd Frank bill requiring timely disclosure of payments to countries when oil is extracted by US corporations. Such data would permit the press and public to, for example, know payments made to the government of Chad, and thus enable demand for it to be used for poverty alleviation rather than guns. Currently governments are opaque in their disclosure of payments received, this law will require the payees to disclose. Since such laws are not required by global competitors, will it make companies like ExxonMobil less competitive ? Should US rules adjust to global standards or should it reflect US preferences ? Will more information alone align incentives for better decisions in the least developed countries or should US laws go even further to do the right thing ?

About aviyer2010

Professor
This entry was posted in Global Contexts, Supply Chain Issues and tagged , , , , , . Bookmark the permalink.

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