TRANSPARENCY IMPORTANCE IN LIFE AND BUSINESS
Transparency for me is the basis for trust in doing business with other people.
Going back, one of the ladies I had that talk with, asked me about my thoughts on the matter because I was very firm on it, making a statement that it’s really important. And today, I’ll share with you the things that I’ve shared with them – where after the end of the long discussion they got new perspectives.
I’ll begin by giving you a scenario.
“Let’s say, you lied to your friend John, but here comes Marie who knows the truth, and one day, you discovered that John and Marie are friends What are you gonna do? Will you tell the truth to John or pretend like nothing’s wrong at all?”
That’s entirely up to you – but to tell you something, regardless of the act that you take, you cannot reverse the damage that you’ve done with the lying, you’ve already tarnished your reputation, and with that reputation, how can people know if they can trust you?
The scenario may be simple, but we know how common it is.
Aside from reputation being tarnished, what can it do to you internally?
You’ll be anxious and you’ll always overthink it. You’ll have to be very extra cautious and you’re always scared of something, especially the truth spilling out.
All that are very stressful and we know what too much stress does to our bodies, so it’s not wise to lie from the very beginning.
THE AMOUNT OF ENERGY IT TAKES
All these things also take a lot of energy just to keep track of things.
One lie leads to more lies, and it will just never be over.
Let me share my personal experience about the matter.
When I was new with my business, I got help from various associations from the upstart and got into a co-op with a lady nurse.
Everything was great! Or at least, looked great on the surface as she had a great business model that we used – except that she had a hidden agenda.
She was never transparent in the beginning as my business partner. She put everything in her name and was just telling me that it was ours, but then I was too blue-eyed to question it.
People around me started questioning some of the things we were doing so I had a hunch that something more was happening. I then confronted her but all I got were additional lies I failed to notice as lies so we continued…
Until I asked the wrong question, or actually, the RIGHT ONE that made her shield crack and blew up on me, even uttered things like I do not know anything about healthcare.
Me? Who’s been a Doctor for decades???? Knows nothing about healthcare??? Pretty sure that’s her way to gaslight in her effort to escape the questions I asked.
Then the 3-month hell started, til I got help from my lawyers to put the company in bankruptcy. We both lost a lot of money and it took me a year of hard work as a Doctor to be able to recover.
THE LESSON
Be aware of what you sign up for, and ask the right questions. Transparency is a MUST.
TRANSPARENCY AND SUCCESS CORRELATION
How does transparency help in business success?
Well, aside from the fact that you’ll be closer to achieving success if you are less stressed…
Imagine running a business without transparency. You can be great at what you do, but the company’s success will never be long-term without it.
Remember, it only takes a single wronged person for a business to fall.
WHAT TO DO WHEN BEING TRANSPARENT IS NOT AN OPTION
Having worked in healthcare as a Doctor for many years… I know that there are just unexpected situations where being completely transparent is hard so I know that it’s not always easy.
It was always a thin line to walk for me. I mean, how do you easily tell your patients about things that you know could really hurt them and their families?
But of course, at the same time, I know better – than holding it off, covering it up, postponing it, or worse, lying about it would just make things worse.
“So you shrug it off, the possibility of hurting them?”
No. But I always search for the best words to tell them. I tell the truth and nothing but the complete truth, but I kind of wrap my words in a nice package so it doesn’t hit them so hard. If possible.
BUSINESS TRANSPARENCY
Transparency in business means offering a clear, honest assessment of what’s going on within one’s work and starts with a simple shift in communication: openness and honesty between everyone involved in the business relationship.
It is also the basis for trust between a firm and its investors, customers, partners, and employees, having its core objective to be always the same: establishing trust and goodwill.
Let’s look at Some examples of what transparency in business can include:
- With Investors and Shareholders – Investors think about transparency in terms of how readily they can access financial information about a company, including its price levels and audited financial reports. Investors must be able to trust that your organization produces financial reports that are informative, accurate, and independently audited.
- With Customers – Customers want to see transparency from the businesses where they choose to spend their money. To achieve transparency with its customers, businesses should respond to customer inquiries and feedback in an honest and timely fashion, and increase the accessibility of information about their products and services. Transparency also means admitting to mistakes instead of trying to cover them up, and working to make things right with customers. When executed well, transparency with customers results in elevated brand loyalty, increased sales, and stronger employee satisfaction.
- In the Supply Chain – Transparency between an organization and its vendors and suppliers is essential for ensuring a productive ongoing relationship. An organization may cease doing business with a supplier who fails to honestly communicate about the sources of its materials or labor. Supply chains are increasingly being scrutinized by governments, consumers, and NGOs who are concerned about the ethical sourcing of labor and materials.
- With Employees – Transparency with employees is centered around honest, two-way communications between employees of the business and their managers. This can include transparent discussions about business goals and objectives, challenges, employee performance, and other work-related issues.
In the end, the primary benefit of business transparency is that it produces trust and goodwill while safeguarding the firm’s reputation among investors, partners, employees, customers, and other stakeholders. In addition to all the above-mentioned, benefits also include:
- Increasing employee morale
- Boosting employee engagement and retention
- Demonstrating stability and encouraging investment
- Leveraging honest feedback to improve processes and drive results
- Demonstrating integrity and ethical behavior
Studies show that approximately 9 in 10 individuals (85%) are expected to stick by the company during a brand crunch if it possesses a history of being fully transparent.
TRANSPARENCY AND INTERNAL INFORMATION
Transparency in business can also mean publicizing a company’s internal information externally which can include:
- Financial performance
- Pricing
- Key processes
- Hiring practices
- Diversity and inclusion data
Sharing all of this information keeps companies accountable to their customers and, most importantly, pushes them to follow ethical business practices.
Nowadays, people don’t just buy your product or services — they also buy what you stand for. In Edelman’s 2019 Brand Trust Survey, 81% of survey respondents reported that they “must be able to trust the brand to do what is right” to justify their purchase of the brand’s products or services.
But how exactly do you gain people’s trust, especially when the majority of consumers are skeptical of a lot of brands’ true intentions? A crucial first step to take is to fully commit to transparency. People value transparency because we evolved to trust the people who are honest and despise those who are deceptive. The former could help us survive. The latter could do the very opposite.
Of course, getting duped isn’t as high stakes anymore. But companies that deceive the public can still leave a putrid taste in consumers’ mouths and potentially prompt them to sever their relationship with that brand forever. In fact, 45% of consumers report that a brand that behaves unethically or suffers a controversy will never be able to regain their trust.
In a nutshell, people buy brands — not just products — and practicing transparency helps build their trust and affinity for your company. But this begs the question — what does that actually look like?
As I started off today ALL of these angles – steps – viewpoints cause a lot of stress for everyone involved if we feel we are doing the wrong thing.
Sticking to the truth helps us to stay grounded and be sure we do our best and that will be the best guarantee for less stress in your business
And of course, all these facts and angles can be applied to your personal life too.
This discussion around transparency, around the truth or lying, can be hard to tackle. It is a sensitive subject that can stress you out a lot.
What is right and what is wrong?
If you do not know where to start or feel hard to do on your own, it’s okay! You can start with little things, such as mastering your stress management as a leader, and then with less stress, the rest will automatically follow.
To transparency in business and life,
