When economic stability is low, and change is the only constant, customer trust is critical. Transparency in business can help to build loyalty among customers, distributors, retailers, and employees. It can help manage risk and reputation and establish ethical and sustainable supply chains.
The movement toward business transparency is driven by increasing customer concerns about business ethics and the advantages that transparency can bring to an organization.
Companies that invest more in visible finance and procurement tend to “see greater transparency throughout the rest of the organization and, with it, greater employee engagement, reputational lift, and better decision making.” According to a survey of 779 global executives conducted by Harvard Business Review, they also have more significant cost savings and revenue growth.
90% of respondents say that increased business transparency leads to better decision making across the entire organization.
However, survey respondents also advise that to realize this vision fully, organizations still need to overcome technical, organizational, and cultural barriers because not overcoming these barriers can lead to an array of challenges when it comes to risk and reputation management and increases the difficulty of effectively managing a sustainable supply chain.
The Harvard Business Review survey results indicate that maintaining visibility throughout the entire supply chain is more critical now than ever and that limited transparency raises reputation risk and increases the difficulty of managing operating costs.
The benefits of openness are evident: The organizations that have embraced transparency gain operational efficiency and various intangible benefits, including empowered employees, reputational lift, and better decision making throughout the organization. Therefore, it is imperative that you include it in your business.