transparency in business

Transparency in Business: Easy Ways to Build Trust

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Business transparency is the process of being open, honest, and straightforward about various company operations. 

Transparent companies share information relating to performance, small business revenue, internal processes, sourcing, pricing, and business values.

What Is Transparency In Business?

Business transparency is the process of being open, honest, and straightforward about various company operations.

Transparent companies share information relating to performance, small business revenue, internal processes, sourcing, pricing, and business values.

When something goes wrong in business, transparent companies don’t try to hide it. Instead, they’re upfront about the issue.

Transparency builds trust, and makes employees feel that they’re working for a company with higher ethical standards.

When transparency is added to the corporate culture, employees will be more engaged and committed to the vision of the company.

How to Be More Transparent in Business

How can a business create transparency? The number one way to be more transparent is to implement open-book management practices.

The financial information provided in an open-book approach creates an ownership culture in which employees start to see the business in the same way owners and executives see it.

This lifts the veil between upper management and the rest of the team and allows for a more honest and collaborative relationship and improved communication.

Along with open-book management, a financial literacy program must be developed so that employees have a foundation for understanding the information being shared. 

Benefits Of Being Transparent In Business

From increasing employee retention to boosting sales, transparency can do a lot for your small business’s reputation and success.

If your business is honest and straightforward, you may see a rise in your customer base.

One study found that 94% of consumers would be loyal to a transparent brand.

Why? Because transparency in business leads to trust. And, many consumers only want to support companies they trust.

That’s why deceitful companies fall off the map so quickly.

In this Information Age, customers demand stronger communication and transparency.

If you don’t provide it, they’ll move on to a business who can. That goes for your employees, too.

You want to hire and retain employees you can trust. Likewise, employees want employers they can trust.

When employees trust their employers, there’s an increase in advocacy, loyalty, engagement, and commitment.

If you want employees to trust you, be transparent with them. You just may see that decline in turnover and spike in productivity that all businesses aim for, too.

Transparency Establishes Trust

Transparency builds trust and makes employees feel that they’re working for a company with higher ethical standards.

According to a 2014 American Psychological Association Survey, 25% of employees do not trust their employer. 

Half of them believe their employer is not upfront with them and open to the overall vision of the company.

When transparency is added to the corporate culture, employees will be more engaged and committed to the vision of the company.  

The reason is they fully understand the mission and feel vested to share ideas, display their creativity, and bring about innovation to achieve the desired objective. 

People are always going to be the first and best choice for operating within the solution before automation since when committed will add more continuous value to the process.

So how does a company being about the full value of transparency to the workplace?  The answer is communication. 

Please note not just any communication but direct and clear communication that comes from the highest level of honesty and integrity.

  It is important that communication be a two-way street both coming from top down and down up.

  Employees are most engaged and committed to the process when senior leadership continually updates and communicates company strategy, value, and the truth about their current situation. 

Companies that adopt the concept of transparent leadership see a stronger bond of trust and commitment from their employees to strive for efforts not achievable the other way around.

Transparency Expands Relationships

Transparency in business

You have probably heard that people do not leave the job itself but leave the managers associated with it. 

Solid relationships with strong foundations are built from being transparent. 

A 2014 CareerBuilder survey showed that 37% of the 3,008 employees surveyed were likely to leave their jobs due to poor relationships and lack of confidence with their boss’s performance.

So how do we improve relationships in the workplace?  

The best advice would be to have an open environment that encourages transparency and sharing of ideas without judgement.

While this is not easy, there are training programs to improve workplace communications and teach people from all backgrounds to relate to one another without judgement.

Keeping an open office is to keep the flow of communication steady to prevent bottlenecks or issues from arising. 

This means for senior management to engaged employees and relates to them as people. 

They should go out there and have meaningful conversations that build not only trust but a foundation of confidence for everyone to succeed as one. 

Once you establish this open line of communication you will see a shift in the mood and even your company culture.

Transparency Increases Productivity

Most employees over the years when asked felt their employers were not straight forward with the company vision and not providing the right information to be truly successful in their jobs. 

This creates a lack of trust and a huge drop off with the level of commitment to apply their full potential toward the job.

Senior Management has to be fully transparent about their organization’s vision, mission, and values with employees. 

Transparent leadership starts with the CEO or President.  

This critical information depicted above must be communicated clearly to gain trust and commitment from employees to be fully vested and for them to apply themselves as a team to achieve company goals. 

Companies have to put together training programs holding everyone accountable to have alignment with the values, vision, and mission of the company. 

Investing in your core people will be less expensive and a far better investment than the constant onboarding of new people.

Transparency Strengthens Innovation

The difference between companies like Amazon and Apple to others is how together a company can solve problems beforehand and come up with new ideas to disrupt the marketplace in a good way. 

A transparent leader’s main goal should be to identify each of their employee’s strengths and leverage them together to handle bigger and more complex problems. 

Your best solutions and innovations come from truly understanding what makes your people tick and leveraging their strengths. 

It is important for people to be out of their comfort zones but not dwelling on their weaknesses. 

Situations that allow them to leverage their strengths foster innovation and more creativity to succeed.

We’d love to be here to answer any questions you may have and to make transparency in business more of a reality for you. Let us know anything that comes to mind in the comments. We’ll be cheering for you!

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Transparency in Business: Easy Ways to Build Trust
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Transparency in Business: Easy Ways to Build Trust
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Business transparency is the process of being open, honest, and straightforward about various company operations.
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FLAWLESS GUIDE
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Ganesh B Nayak

Ganesh is an Entrepreneur and a Successful Stock Market investor with 5+ years of experience in Finance Industry. Experienced in all aspects of business formation, operation, finance, and management. Ganesh help finance professionals and Fin-tech startups to build an audience and get more paying clients online.

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Hobsetter
Hobsetter
2 months ago

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