What does transparency in business refer to?

Transparency in business refers to a willingness to freely share information, which fosters trust and accountability among stakeholders, including employees, customers, and suppliers. When a business operates transparently, it openly communicates its processes, decision-making criteria, and the rationale behind its actions, thereby creating an environment where stakeholders feel informed and engaged. This openness not only enhances relationships but also encourages ethical behavior, as stakeholders can hold the organization accountable for its actions.

In contrast, keeping information confidential, having low employee involvement in decision making, and restricting access to financial data all represent a lack of transparency. These practices can lead to distrust among stakeholders and may create an atmosphere of secrecy that can hinder effective communication and ethical behavior within the organization. Thus, the emphasis on sharing information aligns with principles of good governance and ethical supply chain management.