Secrecy - Corporate Security

Corporate Security

Organizations, ranging from multi-national for profit corporations to nonprofit charities, keep secrets for competitive advantage, to meet legal requirements, or, in some cases, to conceal nefarious behavior. New products under development, unique manufacturing techniques, or simply lists of customers are types of information protected by trade secret laws. The patent system encourages inventors to publish information in exchange for a limited time monopoly on its use, though patent applications are initially secret. Secret societies use secrecy as a way to attract members by creating a sense of importance.

Other laws require organizations to keep certain information secret, such as medical records (HIPAA in the U.S.), or financial reports that are under preparation (to limit insider trading). Europe has particularly strict laws about database privacy.

In many countries, neoliberal reforms of government have included expanding the outsourcing of government tasks and functions to private businesses with the aim of improving efficiency and effectiveness in government administration. However, among the criticisms of these reforms is the claim that the pervasive use of "Commercial-in-confidence" (or secrecy) clauses in contracts between government and private providers further limits public accountability of governments and prevents proper public scrutiny of the performance and probity of the private companies. Concerns have been raised that 'commercial-in-confidence' is open to abuse because it can be deliberately used to hide corporate or government maladministration and even corruption. A string of publicly scandalous revelations about poor, wasteful or corrupt management of government-funded private contracts left unchecked for lengthy periods, often in prison management, has added credence to the views of skeptics about the prudency of the neoliberal reforms themselves.