Transparency in business reporting to credit

Transparency in business reporting to credit

High-profile cases of financial shenanigans , such as those at Enron and Tyco, showed everyone that managers may employ fuzzy financials and complex business structures to hide unpleasant news. Results in Better Relationships With Customers We all hope that customers build lasting relationships with our companies. The rise of stock-option compensation has increased the incentives for key employees of companies to misreport vital information. Such a company may end up deeply imperfect , but there's no mistaking a step in the right direction when a business takes it in good faith. When firms enter new markets or businesses, the way they structure these new businesses can result in greater complexity and less transparency. You want people who know before you do that they're right for the job and the job's culture. Where are your employees from? It's difficult, if not impossible, to evaluate a company's investment performance if its investments are funneled through holding companies and are hidden from view.

How about providing shareable information in the first place. An open-door policy sets the tone for this. Other companies may release information that is misleading but technically conforms to legal standards.

transparency is key

Companies with impossible to understand financials and complex business structures are riskier and less valuable investments. They feel more involved. The term has quickly become a part of mainstream business vocabulary.

discuss the need for reporting and transparency

Such a company may end up deeply imperfectbut there's no mistaking a step in the right direction when a business takes it in good faith.

Fosters Employee Happiness In more than one studyemployees indicated that company transparency was the number-one factor in determining their workplace happiness.

why is transparency important in government
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The Importance of Corporate Transparency