Importance Of Transparency Analysis

In my opinion, transparency is important to the long-term of a company because transparency is something that will ensure the longevity of a company continuation. Transparency has many benefits when practiced in a company and that benefits that will make sure the length of time a company is to survive. Among its benefits are firstly, transparency is assurance. The word "transparent" can be used to describe high-quality financial statements. The term has quickly become a part of business vocabulary. As example, think of two companies having similar financial leverage, market capitalization and overall market risk exposure. Take for granted that the earnings, growth rate of earnings, and Return On Capital (ROC) are also same. They have

It was when a company is transparency in their business it would ensure the people's confidence in its business, especially investors and customers. Just imagine if a customer has trust the transparency of a company in running the business, it certainly will make the customer want to continue making business transactions with that company. As well as investors, if we are sincere in our company to submit relevant information, especially information relating to the financial position of our company, it will make investors more confidence in our company and continue to invest in our company. For example, Leha who was a customer who wants to buy clothes. She made a choice whether to buy clothes from WNZ' company that the company state that clothes do not fade when washed using hands and will fade the color when washed using washing machines, clothes TMD' company that the company also noted that their company's clothes will not fade colors even when washed using hand or machines washing. Leha buy clothes made by WNZ' company and TMD' company each one. But in fact the TMD' company is not sincere in state the truth about their company’s shirt when that shirt is faded colors when washing using the washing machine. This causes Leha as a customer will choose to continue to buy stuff that produce by company WNZ because that company sincere in doing business. It will guarantee the shelf life extension of a

The best time to respond about company transparency is yesterday but making these days is not a bad thing. Regardless of whether the company is big or small, it is not an obstacle for acting slowly toward transparency. When there are parties such as customers or investors who expressed dissatisfaction about the sincerity of our company, we have many ways to provide feedback on the matter as social media as company's blogs, Facebook, Instagram and others to ensure that our relationship with clients and investors are always good and intertwined. Don't think doing this sort of thing seems trivial but remember it can give a substantial impact on a business. When a problem arises concerning the transparency of the company, do not be slow to respond so that there are others like our company's competitors that will make our company look bad in the eyes of customers and investors. Faster companies responded, customers and investors will think that we are serious in our sincerity on correcting our transparency and this will make customers and investors will not replace our place on target their purchases and investments. This will make our company more durable in the industry. Transparency doesn’t just help business became financially successful. It makes them good citizens. And good citizens never go out of