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Transparency is Good for Business
February 02, 2012 | 2 Comments
Like the clear aquarium wall separating this trout from a Cabela's store visitor, transparency in business can reveal unsightly defects and astonishing beauty.
In the newsrooms of yesteryear, reporters bemoaned the formidable walls of privacy that protected the affairs of private companies.
When the official spokespeople told us, “That’s proprietary” or “That’s none of your business,” we groaned but begrudgingly acknowledged those inevitable high walls.
“Transparency” was a plastic thing you put on top of an overhead projector.
That seems like a long time ago.
Today, private organizations are disclosing much more information about where, when, how and why they do business, and with whom. They’re doing it voluntarily, and we expect more of them to become much more transparent in the years ahead.
Why? Because the internet and social media have opened up the flow of information so dramatically that your customers, employees, shareholders, suppliers and others can all very easily launch free-flowing conversations about you, your products and services and the way they’re treated. Smart companies want to be part of those conversations.
The bar for transparency appears to be getting higher. Consider, for instance, Apple Inc.’s recent release of its supplier list and its 2012 Supplier Responsibility Progress Report. Although the technology company coughed up considerable details about its extensive 2011 supplier audits, including some highly embarrasing findings, it was widely criticized for not releasing such data sooner, as other tech giants have.
We’re not suggesting that the expectations for transparency at Apple, with its millions of customers worldwide, apply to all companies. But it is clear that expectations are growing, and this will likely have some impact on everyone in business.
We view that as an opportunity. As customers and other audiences ask more questions and covet more information, companies that have answers and a bent towards openness will distinguish themselves from companies who have neither.
Here’s what we would suggest to business leaders bracing themselves for a more open world.
- Do some research. If you haven’t asked lately, find out what your customers and employees want to know. See what your competitors are telling their customers (who are often your customers, too) through their websites, Facebook pages and other easily accessible channels.
- Do some thinking. Objectively consider the genuine upside and downside of sharing more information online or in more traditional vehicles. What you’ve “always done” might not be the best policy any more. Give some thought to what types of information make sense and what vehicles would be most effective.
- Communicate well. Tell your story effectively in a way that sets you apart from the herd and makes a case for how and why you do what you do. Build in ways for two-way communication. If you can’t pull that off well on your own, haul in outside experts.
The same advice would have been just as applicable five years ago, 10 years or 50 years ago. But today, the value of following it may be greater.
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Dan Pecchia is a former daily newspaper business editor and now president of Pecchia Communications, a Youngstown public relations firm.
2 Comments
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Great article Dan!
I miss our days back in Whirlpool Supply Chain…hope you are well.
Comment by Brad — February 2, 2012 @ 2:25 pm
Nicely written and very relevant.
Comment by Kevin McGee — February 6, 2012 @ 4:49 pm