If we add to this the economic uncertainty and the pace of change that continues to accelerate, corporate transparency can become a tool to reduce consumer suspicion and, on the contrary, generate loyalty.
The move toward transparency – operating in a way that makes it easy to see what is being done and understand how money is being spent throughout the organization – is being driven by growing customer concerns about business ethics and for the competitive advantages that transparency can bring to an organization.
Being honest about a brand’s reputation requires striking a balance between not hiding hard facts and being strategic in presenting the company culture with openness and candor. The goal is to bridge the gap between being perceived as a company that simply participates in doing business and a humanized brand that audiences can personally relate to.
The companies with the strongest brand reputations are the ones that self-initiatively are transparent about their core beliefs and clearly communicate the “why” behind what they do. These can be the objectives they seek, the culture that fosters quality service and the people who make up the organization. When audiences understand your vision and purpose, the business takes on a more human and engaging character.
Studies looking at the link between transparency and trust found that more than half of consumers consider “additional information” to be important when choosing a brand. Additionally, 73% of those people would spend more on a product that offers full transparency.
Consumers are attracted to brands that have a genuine tone and clear intentions, which should also be consistent when showing a brand identity through social media, as it will be beneficial to maintain a consistent imprint that people will perceive when looking for it online.
Transparency is closely related to trust, which allows to further strengthen relationships throughout supply chains, risk reduction and consumer participation. By putting actionable and credible data in the hands of consumers and partners, companies empower them to make better decisions and that benefits not just these groups of players, but society as a whole.
Transparency and brand trust are two essential and connected components to building a successful brand. Without trust, it would be difficult to convince an audience to choose your product over a more well-known competitor. Without brand transparency, your customers won’t risk giving an unknown company the benefit of the doubt.
It is no mystery that there is a correlation between corporate transparency and the trust that consumers place in brands. Just like telling a friend a secret or sharing a personal story, transparency allows us to get closer to the brands we love and admire. Companies are now expected to be open books, no longer keeping the truth of their brands limited to certain circles. Transparency is no longer an option, it is an integral part of corporate responsibility actions and a requirement of society.