Transparency as a tool to build trust

[Charlie Sellew]

I was doing a research project on The New York Times and came to a realization that I think can be valuable to a lot of organizations and businesses.

One of the ways The New York Times is able to continue to thrive and maintain a lot of its credibility despite many very public scandals that exposed serious flaws in the way it reports the news is that it openly confronts and takes responsibility for these criticisms.

It’s pretty simple, really. Being open and transparent about issues, especially potentially negative ones, increases the credibility of everything else you say.

Most businesses do an extremely poor job of this, covering up things that they think are embarrassing. But in reality, the cover up can actually be the thing that does the most damage. I think being honest about what is going on during these situations builds a lot of trust and loyalty among your customers.

There are complex ways large organizations can help create transparency – organizational ombudsmen, for example – but even small businesses can benefit from simply being open to answering questions and critiques of customers.

Do you agree that transparency is a potentially important tool to build trust?

Are there any situations where transparency has helped you? Hurt you? Or where a lack of transparency hurt you?

 

[profitxchange]

I would always encourage companies to be transparent in their activities, but that is not enough it has go in tandem with trust. it applies equally to all dimensions of the business, customers , suppliers, stakeholders etc etc.

The ethos can so easily be undermined when one dimension develops an agenda that is not in harmony with the corporate ethos.

I have experienced astonishing transparency, in a supply chain, where the company assembling the final product insisted on absolute transparency at every stage of the chain. everyone knew the available profit, costs and supplier performance. It was a competitive market (white goods) and the manf wanted a all win situation not a closed adversarial contractual relationship. It worked very well, each supplier maintaining dialogue with everyone else and supporting one another to make it work.

More companies should adopt a high level of transparency, and ethics. it would creat a better society.

End of preaching.

 

[eMarketing Mark]

Interestingly, the fear of transparency is one of the arguments that I come up against when examining the use of blogs within a corporate environment.

When we are looking at internally focused blogs, for example for team communications or as an alternative to an intranet, then generally that isn't too much of a problem, although in some organisations, the concept of knowledge is power still rules. However, when we talk about opening the company up to be able to interact better with clients, suppliers, partners etc. then in some cases you get a real look of panic crossing their faces.

I tend to liken it to crossing a rope bridge over a large ravine - it's scary to look at before you cross, it is quite tense as you are crossing and taking every step with extra care, but there is a real sense of release and achievement when you get to the other side. The same with, for example, being transparent in terms of product development through a product blog: scary to think that you're opening up to customers your future plans, a bit nervy as you start to get feedback and talk with them, but then this great rush as you get a better defined product and a whole team of clients who feel they've been part of the process and go out evangelising about it to anyone who'll listen.

Gaining trust is critical in today's business environment and being transparent and open with the people that a company is dealing with means that they are taking a big first step towards achieving that.

Mark