- Employers that adopt supply chain transparency measures operate more efficiently, earn positive reputations, enjoy a lower risk of labor violations and have better access to capital, according to a report from the International Corporate Accountability Roundtable (ICAR). Employees working within transparent supply chains, for example, express more loyalty and motivation, the report revealed.
- The report called for companies to publish and regularly update searchable, public information about their supply chain participants, including factory names, addresses, number of workers, category of products and parent companies. According to ICAR, Nike, Patagonia and Esprit adopted the Apparel and Footwear Supply Chain Transparency Pledge.
- ICAR identified additional benefits of transparency; investors are becoming more interested in making ethical investments and more consumers prefer to buy ethically manufactured goods.
ICAR's report focused on supply chain transparency, but such efforts can have similar benefits when applied to other aspects of business.
A company's brand can hinge on its reputation and commitment to transparency. Layoffs, for example, should be approached openly, a RiseSmart report concluded. And organizations facing a scandal or public relations disaster often sink deeper into trouble by remaining opaque about any misconduct, experts previously told HR Dive.
Transparency and truthfulness also are critical in hiring. Job hunters want and expect prospective employers to be open about pay, company culture, job duties and expectations. With easy access to employer rating sites, job seekers can read reviews from current and former employees — and most say they avoid employers with subpar ratings.