Why transparency is important in business

Know why transparency is important in business? We'll tell you in this post
Photo by CC user cambodia4kidsorg on Flickr

These days, it seems like transparency is the latest corporate buzz word. For some companies, it may just be nothing but talk, but that’s their loss, as there is much to be gained by having employees and theĀ general public know everything about what is going on with a specific enterprise.

CAE Ryan Jacob has understood the value of keeping employees in the loop about company expectations and objectives; if you want to build a culture like he has, read on about why it pays to cultivate transparency in your business.

1) It builds trust

These days, customers expect you to share everything about yourself, with few exceptions. More recent arrivals to the scene have had no qualms about doing this, which has had the effect of engendering the belief that these companies have nothing to hide when it comes to how they operate.

If you are about to enter the business ring or if you are a long established firm that has been slowly but steadily losing market share to young upstarts, you must realize that new generations are equating transparency with honesty.

The more you hide, the more they assume that you must be up to something shady. As such, sharing everything except for core components should be on the table.

2) It encourages clarity

In many companies, sharing what is going on to some members of the team while hiding it from others is standard operating procedure.

However, despite unfounded fears that laying out plans to all employees might endanger ‘sensitive’ information, sharing everything that is going on with the company instead enables talent to contribute their best work.

When they have access to the full scope of what everyone is doing, they are able to supply input that is fully relevant.

This avoids incongruent efforts that result when employees are kept in the dark about specific activities. When everyone knows which direction the ship is sailing, it is easier for everyone to row in the same direction.

3) It becomes easier to connect with customers

When a company is open about sharing information about itself, it becomes easier to attract their target customer. Often, businesses conflate vulnerability with weakness, when much of the time, projecting these very human qualities makes it easier for customers to make that crucial emotional connection.

In 2016, many mainstream corporations continue to project an image of perfection, all while forgetting that the new generation of consumers are able to see right through this smokescreen.

It is better to be upfront and honest about one’s shortcomings and seek to actually fix them than to act paternalistic when it is clear that an increasing number of consumers are turned off by this act.

4) It improves morale

When a company truly commits to a culture of transparency, those that work for the firm almost always experience a boost in morale.

No more coded language or double speak. No set of standards for managers and executives, and an entirely different set of regulations for the plebeian employees out on the floor.

When a company’s goals, values, and expectations are thrown out in the open for everyone to see, everyone knows what they need to do, everyone knows what their superiors think about their efforts, and they are comforted by the fact that they are presenting themselves to the customer in an honest fashion.