Why transparency matters
The benefits of transparency
Transparency is the public disclosure of data and policy that enables companies to be held to account. Such visibility can lead to improvements in the following four areas: environment, human rights, legal compliance and brand equity.
Environment
Human rights
Legal compliance
Brand equity
Environment
By making environmental impacts throughout a supply chain visible, buyers and suppliers are incentivised to improve environmental performance.
Human rights
Greater transparency about labour conditions and wages can motivate buyers and suppliers to improve working conditions.
Legal compliance
Some legal requirements on transparency are already in force, but more are expected in the future.
Brand equity
Disclosing information creates trust and positions a brand as being reliable and responsible.