Openness pays off financially, too

According to a study to be published in the Corporate Social Responsibility Magazine, companies who are more transparent are more profitable.

Transparency, as the magazine defines it, means making information about practices like employee benefits, climate-change policies or philanthropic efforts publicly available.

According to the magazine’s analysis, being a good guy pays. The best corporate citizens list, which includes Hewlett-Packard, Intel, General Mills, I.B.M. and Kimberly-Clark, had a total return on shareholder value of 2.37 percent over three years. But the 30 worst had a negative 7.38 percent return.

We advocate openness as a core component of building trusting relationships and it is obvious here that such openness translates into real financial value.

I look forward to reading that study when it comes out on April 24th.


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