This article looks at the significant role corporate transparency plays in today’s world and how a cloud-based entity management platform can work towards furthering the mission of corporate transparency.
Corporate Transparency Strengthens Relationships
Solid relationships between higher-ups and other employees with strong foundations are created as a result of corporate transparency. An average of almost 40% of employees are likely to leave their jobs because of poor relationships throughout the company.
Having an open environment with plenty of transparency is a great way to improve and strengthen workplace relationships. There are training programs that exist to improve workplace communications.
Try to keep an open office to encourage the flow of communication and prevent potential problems or misunderstandings from arising. Additionally, have meaningful conversations that build trust and strengthen your relationship’s foundation.
A free, open line of communication will improve company culture and strengthen relationships overall. In most cases, it may also significantly increase employee retention.
Transparency Improves Overall Productivity
Many employees often report that their employers were not honest when asked about the company vision and hesitated to provide the right information for employees to truly improve, grow, and be successful in their jobs.
This obfuscation, in turn, creates a profound lack of trust and an even more profound decrease in an employee’s level of commitment to apply their full potential and productivity towards their position.
Companies and management leaders should be transparent. Be honest about your company’s vision, mission, and values with all of your employees. Transparent leadership begins with either the CEO or President.
Clear communication from the CEO or President is the best way to gain trust and commitment from employees. This communication will encourage employees to become more invested in the company and allow them to apply themselves as a team to achieve company goals and reach the company’s vision.
Put together training programs that hold everyone accountable to the same shared values, vision, and mission of the company.
More Transparency Equals More Trust
More transparency builds more trust and makes most employees feel that they’re in a position that matters. They will even begin to feel like they are working for a company with higher ethical standards than its competitors.
A little over 25% of employees have reported that they do not trust their employer. Many employees state that their employer is not honest with them. When transparency is prioritized and added to the corporate culture, employees will become more engaged and be less likely to leave or lose trust in their employer.
They will fully understand the mission and feel the need to share their own individual ideas, display their creativity and project ideas, and bring about the innovation needed to achieve the desired objective.
Enhance basic communication to slowly gain more trust. The communication must be meaningful, direct, and clear, and it must come from the most sincere level of honesty.
Companies that work hard to adopt the concept of transparent leadership see the result of their efforts: a stronger bond of trust and commitment from their employees to strive for efforts not achievable the other way around.
Examples of Companies Engaging in Effective Corporate Transparency
Need an example or someone to look up to? Heineken is one example. The company has made multiple attempts over the past decade or so to ensure that it is transparent.
Heineken began with an ESG rating of A in the year 2019 and has now improved to the point where its current ESG score is AA as of 2022. For reference, the maximum ESG score available is AAA.
ESG is an acronym that means: environmental, social, and governance. Corporations receive an ESG score that shows how they have been handling each of those aspects while conducting business. The higher the ESG score, the better the company is performing ESG-related functions.
Heineken is now becoming a leader in its industry, thanks to its corporate transparency. Its rating was earned, in large part, by the company publicizing its development efforts. For example, Heineken has been working on sustainability and has been transparent about that fact as a corporation.
The team at Heineken is also transparent about how they are working towards sustainability — by brewing increasingly sustainable beer and collaborating with farmers to continue producing great quality crops while also lowering carbon emissions and reducing its use of land, toxic pesticides, and even water.
The company has also been transparent about its goal to hopefully be entirely carbon-neutral by the year 2040.
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