Transparency is basically the process of being open, honest and straightforward about your company’s operations. Transparency in business leads to trust. It helps you to be committed to your customers, investors and employees so that you can build the best venture possible.
Transparent companies are bound to share information relating to performance, internal processes and business values. It should be noted that transparent businesses do not hide when things go wrong. Rather, they are upfront about any issues. According to a Brad Rawlins report published in the Public Relations Journal, “Transparency is an essential element for building trust. In business, transparency is demonstrated through a company culture that encourages the open sharing of information and accountability at all levels.”
Why Transparency Matters in Business
- It Breeds Trust
Trust is the foundation of a great business. Transparency performs the work of breeding trust in customers, employees, business partners and anyone who interacts with your business at any level.
- Transparency Helps with Innovation
“If you want people to make the same decisions that you would make, but in a more scalable way, you have to give them the same information you have” – Keith Rabois. This means, you need to provide correct information about the company to have creative development. Also, your team will be able to work around such information.
- You Open Yourself Up to Better Feedback
Feedback helps the organisation to know where and when to take necessary precautions. Feedback could come from customers or employees, depending on the nature of the problem. Therefore, it should not be taken for granted.
Finally, transparency helps to build business metrics. It also increases clarity and accountability.
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