Effects of disclosure on business compliance: a framework for the analysis of disclosure regimes

Disclosure of inspection results not only contributes to consumer empowerment, but also affect company compliance. Disclosure stimulates compliance because fear of bad publicity serves as a deterrent for violations. However, excessively stigmatic disclosure can become counter-productive and lead to defiance. To help draw the balance between a deterrent and stigmatising approach, this article introduces a framework for the analysis of disclosure regimes. To illustrate, the framework is used to compare the Danish and Dutch disclosure practices.