Corporate transparency – the best way to get positive attention?
It’s not immediately obvious that the best way to be seen is transparency. But in this information age, providing an unobstructed view for all stakeholders may be the best corporate communications strategy. Glass Box Branding advocate Ville Tolvanen explains why transparency should be on your B2B branding to-do list.
Traditionally, companies and corporations have sought to control their own communications and reputation, as if in a black box. They have communicated well-thought-out messages to investors, customers, and staff the way they wanted. Glass Box Branding thinking is the opposite of this approach.
“The company is thoroughly transparent and responsible in its operations, communicates openly to everyone, and its brand is based on open communication with all stakeholders,” explains Ville Tolvanen, who is also Chairman of the Board of Brandkind.
Open and accessible
Tolvanen compares openness to a doping test: a skier who acts fairly gives a test every day and does not hide or disappear into their training camp. In business, the circle of responsibility includes not only the company’s own activities, but also the flow of raw materials, subcontractors, and partners. This is why we need metrics and models that can communicate sustainability goals and broaden thinking to partners.
“It’s actually easier for a company to be completely transparent and accessible to everyone. Firstly, irresponsibility is unacceptable and, secondly, it gets caught up in the information environment. If one-off sustainability campaigns or greenwashing are not honest, the secret will be let out of the bag sooner or later,” Tolvanen says.
At the heart of Glass Box Branding thinking is also co-creation, i.e., a change in the culture of development. B2B companies do this by bringing together different parties in the value chain and facilitating partner programs and events that communicate goals and results.
Co-creation is common sense
“I think co-creation is a commonsense development that has spread really fast over the last five years. Even if you don’t engage in co-creation as such or an innovation pipeline, people work together, see its value, and spend money and time on it,” Tolvanen says.
In his opinion, Nordic companies are already good at this compared with, for example, North American companies. “Since Finnish and Nordic companies compete with Americans, it would be worthwhile to bring openness, transparency and responsibility more strongly to branding.”
Responsibility pays off
Transparency is also a profitable business, which has been noted by investors. The stock exchange has funds, models, and sustainability ratings based on the idea that responsibly operating companies will be more valuable in the future and have lower risks.
“A responsible brand is a more valuable brand, but responsibility cannot be invented – it must be a principle and practice that runs through the company’s operations. It must be possible to demonstrate this by measuring and reporting the results of responsibility,” Tolvanen says.
He calls for transparency and dialogue with stakeholders even on difficult issues. “Addressing grievances may not seem nice or fair to the company, but it’s about attention, communication and putting things in order. If you receive negative feedback, you get permission to develop and address the issue. The company should be pleased that they attract interest.”
There is no such thing as a perfectly responsible company, but transparency should be at the center of the company’s value base and strategy. And the company should start the journey towards it, transparently.