Examples Of Corporate Transparency

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2.4. Conclusions: more than corporate reporting 2.4.1. Corporate transparency: a new corporate style Summing up, corporate transparency is a recent trend which is quickly growing worldwide during the last recent decades. Its has its roots in big multinational companies practice of publishing different reports to publicly disclose information about their operations, their financial statements, their impacts on environment and so forth. The forces that drive and foster the expansion of this trend are various and encompass both social and economic variables showing that transparency is something more than a mere corporate trend. The tendency to act transparently, to pursue ethical goals and to be above suspicion is a common feature of 2000s…show more content…
As a consequence, being transparent for companies means establishing a direct contact with all the stakeholders, means building a winning image, means gaining some kind of competitive advantage on rivals who are still opaque and means following several external trends which are becoming relevant (analyzed in section 2.3). A transparent company allows customers to collect data on the basis of which taking purchase decisions and this strengthens the company because it appears as an organization which is not afraid about the judgment of informed customers. In conclusion, corporate transparency is more than the act of issuing reports but it is a real new business philosophy and a new corporate style. In such a context, two facts emerge: the increasing control of stakeholders (1) and the increasing importance of companies’ image and reputation…show more content…
This implies a fundamental shift in companies’ management since shareholders are currently understanding that, in order to pursue their ultimate goal (that consists in increasing their own dividends), they have to enlarge the content of corporate objectives including stakeholders priorities. As a matter of fact, if a business enterprise acts hurting stakeholders interests, it can drastically reduces its profits since its products can be boycotted (as happened to Nike in 1990s). 2.4.3. The increasing importance of companies’ image and reputation Corporate transparency led to the growth of the importance of a further element: corporate reputation since the more a company is transparent, the less it can be perceived as “unethical” and “dishonest”. As a matter of fact, corporate reports can be used as tools that promote some virtues of a company while firms that do not use them result opaque and can ruin their image because of undesirable hidden
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