3 Ways to Advance Transparency and Sustainability
Corporate transparency refers to the availability of information about a company’s products, processes, human capital welfare and corporate social responsibility. It enables better collaboration with third parties. It also empowers consumers to query assertions made by companies regarding value, quality, and sustainability. Transparency is of particular importance to verify sustainability claims.
Transparency helps aggregate the overall picture to balance the sustainability efforts and the impact on the society and environment. It is especially useful to safeguard against false claims of green products and reductions in environmental footprints. It allows third parties to query the production process and location, the safety and quality of the components that go into making the product, humane treatment of workers, and how much profit the company is making from the sale of the product.
By looking at the whole sustainability picture, you can evaluate gains alongside challenges that may not be openly advertised. Organizations are increasingly looking to advance their transparency and sustainability processes as these go hand in hand. Let us look at some of the ways this can be achieved.
1. Increased reporting options both on a financial and non-financial level. It is important for businesses to adhere to the best practices recommended by sustainability reporting frameworks such as those recommended by the US Environmental Protection Agency. This enables the right information on finances, environmental and social performance to reach the right stakeholder easily. This also empowers organizations to increase their level of voluntary reporting.
Companies should invest in agile reporting frameworks aligned with their value and mission statements. Non-financial factors include market share, consumer satisfaction and environmental impact among others.
2. Enhanced corporate social responsibility (CSR) empowers firms to come up with comprehensive policies and follow through with implementation. Tracking systems are efficient. Rating and benchmarks also get better. Better CSR strategies enable a strong focus on important elements such as human rights and labor issues, health and safety, the environment and local community development.
Good CSR puts a spotlight on a company’s values and the causes it supports, its commitment to growing local communities and uplifting the quality of life of the underprivileged.
3. Improved data collection and analysis enables a company to improve customer satisfaction and environmental impact. Collecting wider patterns of data is possible. Advanced reporting functionality can easily be achieved. Big data is playing a crucial role in the types and amounts of data that can be collected and analyzed. Additionally, when a business can efficiently track its carbon emissions, they are in a better position to work on reducing the same and other wastage paths.
Transparency allows both internal and external stakeholders easy access to key information to enable quicker decision making. Sustainable businesses are expected to uphold a certain level of ethics in their operations. They guarantee leadership and promise to strengthen the societies they benefit from. It is, therefore, important for companies to employ prudent reporting practices that enable specific action to be taken to empower them to deliver a positive impact on the local community.