In the latter case, a lack of transparency is bound to create hurdles for trading partners, who may then seek the information elsewhere, or worse yet, decide not to do business at all. An unwillingness to share information may also cause rumors, which could then draw more attention to a company’s state of affairs—so it’s critically important to communicate with current and potential business partners.
If there’s a situation or problem and it is still manageable, trading partners should be informed with details about how the company is going to get back on track and what can be expected until then. By doing this, trust is retained; without it, overcoming the decision to be less than forthcoming may prove costly.
So even when a company’s management team feels it is not advantageous to share, it could end up exacerbating the situation through a lack of transparency. “Being too transparent can never be a problem, other than when you’re not doing good,” observes Gonzalez. “If you’re doing well, why not brag about it?” But if the reverse is true, she contends, “You have to be honest.”
Misspeaks & Missteps
There are pitfalls to transparency: sharing certain types of data can give associates or competitors information they could use against a company, and the very process of openness itself requires the expenditure of both resources and time to stay compliant. Most would say these tradeoffs are well worth the price.
But what if a company slips up on the transparency front and becomes less communicative, leading to misunderstandings and alienating business partners? In this case, it’s imperative to remedy the situation. Take steps to mend bridges and share information, rather than allowing others to make assumptions. Maintaining a certain level of trust is better than none at all.
If the situation is serious, a business could utilize today’s digital environment to answer its critics and explain. Social media posts, website letters, emails, and parti-cipating in industry forums can help spread a company’s message and restore trust within the industry. And while these measures may help regain a certain level of transparency, it could still take time and result in a loss of business opportunities. This, once again, is why it’s so important to be vigilant about transparency, rather than looking to rebuild it after losing trust.
End Notes
The information age has made it easy to share data with business partners and be transparent in dealings, rather than opaque and leaving business contacts in the dark. The nature of the fresh produce industry, in which goods have such a short lifespan, makes such openness necessary.
Since transparency is all about information, success is often intrinsically tied to openness and trust. Ampco’s Brown puts it this way: when a company’s management or credit department “doesn’t want to give us information, it raises a red flag… If I have a choice, I want transparency versus not, always.”
