Transparency is a buzzword that has been thrown around in the business world for years. Frequently, “transparency” initiatives have amounted to simple ploys designed to capture an audience’s attention through honesty. While it’s true that honesty is certainly an excellent business practice, genuine transparency goes beyond coming clean about shortcomings; it is about building a relationship with both employee and customer to the benefit of all involved.
In a world where branding shapes the way consumers shop and perceive businesses, it is more important than ever for companies to actively cultivate their reputations. Additionally, the plethora of information available online means that businesses are often at the mercy of those they serve, potentially laid low by customer disgruntlement.
Now, building a brand means also building a relationship with stakeholders, be they investors or customers. Withholding information is largely no longer viable, and may in fact earn a business the ire of those that believe it has something to hide. To thrive, companies must recognize that public opinion of themselves will be easily accessible through the Internet and adapt accordingly.
Often, transparency is used in a reconciliatory fashion—in the wake of a scandal or crisis. However, if a business only starts being transparent at this point, they have lost much of their advantage. Businesses should be open about all of their dealings, from the good to the bad. This has obvious advantages when combatting negative propaganda, but can foster internal loyalty as well. Any employee that feels as if their company is forthcoming about their work is generally happier and more satisfied with their job.
And this honesty is not limited to within the business—supply chain and external labor transparency can go a long way to giving a company credibility. This is the first step to creating a relationship with stakeholders. Businesses should give any interested individual the opportunity to speak about their concerns and listen to what they have to say. There is, of course, a lot to address here, but social media presences are a good place to start to cultivate two-way communication.
The great part about transparent relationships is that it makes a company more forgivable—even if the company in question is always morally upstanding, mistakes can happen, and effective communication can help limit the damage that any sort of incident can cause. This sort of behavior is increasingly becoming an expectation for modern businesses; to the point where a lack of communication can be more damning for them than any mistakes they have actually made.
Additionally, communication methods can be just as important as the message itself. Reports shouldn’t be mired in fluff and jargon; they should be simple, straightforward, and informative. Communications can also take unconventional forms; businesses can potentially encourage face-to-face visits in their offices or participate in community events. Social media is also helpful when it comes to keeping an audience updated; even if a company posts a mix of business updates and relevant content, they are still informing their subscribers that they are keeping abreast of the industry.
And, perhaps most important, companies should not hesitate to expand relationships whenever possible, in keeping with the needs of the audience or target market. The concept of transparency is often associated with rectifying mistakes, but in reality, that’s just a fortunate side effect—it’s about positioning a business in a way that empowers others to participate in the process.
