Importance Of Transparency And Accountability

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Transparency is a not a principle but a tool to increase trust, empower employees and widen information flow so that both employees and customers can be benefit. Vince Cable (2014) states that transparency and accountability are both essential because it removes the veil between a business and the consumer thus changing the relationship and increasing trust. Lack of transparency with respect to those who really own and control companies can allow tax evasion, money laundering and terrorist financing to flourish. When a company makes its operations transparent, it reveals them not only to its customers but also to its competitors ( Julia Kirby 2012). Maintaining transparency in a fast-growing company’s culture is not as simple as rolling out…show more content…
A company should encourage customers and public to ask tough questions to members of company about what’s on their minds, whether that’s about the status of a contentious project or the strategic direction of the company. By answering their questions and maintain a good conversation with them, they are more likely to spot the glitches or issues percolating in the background more quickly. To promote transparency in the public, company should help everyone feel comfortable speaking their minds or raising concerns, construct a range of regular opportunities for different types of people to ask sensitive questions in different ways. For example, Q&A and feedback can help customers to solve their problems and questions about a company. To summarize, a candid conversations with customers is important to buiding a bridge of relationship and gaining trustworthy from…show more content…
Employees will feel safer being open and transparent with the owner of company and avoid any misunderstanding from customers. When leaders are transparent, problems are solved faster. Therefore, by being open and honest about company problems, employees can help find solutions and two heads are better than one. Other than that, leaders should make sure the salary policy is clear to enchance the transparency of the company from public’s view. With a transparent and meritocratic compensation policy, a company can keep more employees. With open salaries, discrepancies become motivation to run the business by reflects a degree of trust for customers without facing any problems from them.
Transparency sometimes requires opening up what can seem like a floodgate of information and data for public viewing. But providing access isn’t always enough. When offering a clear view across departments, the sheer volume of information or industry slang can be intimidating and often debilitating for peers in different functions. It’s critical to provide context, commentary and clarity around what this information actually means for different

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