More Transparent Company Culture: The Benefits & Steps to Take

A More Transparent Company Culture
From police forces using body cameras, to Whole Foods openly sharing salary information, to the NBA tracking referee performance, organizations across industries are embracing a more transparent company culture to strengthen trust, boost accountability, and foster passionate employee advocacy.

The Definition of Corporate Culture
A company’s culture sets the tone for everything. It defines how work actually gets done day to day and shapes the way employees think, act, and collaborate. New hires quickly learn the unwritten rules needed to be accepted and effective, while leaders play a critical role in reinforcing the culture by hiring, promoting, and rewarding people whose behavior aligns with the organization’s desired values and practices.

A More Transparent Company Culture Creates More than Operational Efficiencies
A more transparent company culture is one where information flows freely, knowledge sharing is expected, and data is accessible to everyone. Employees understand not only where the company is headed and how it is performing, but also where they stand personally. In some organizations, transparency extends to sharing calendars — even the CEO’s — to ensure visibility into priorities and decision-making.

Transparency also encompasses performance data at every level: individual, team, and organizational. The NBA offers a striking example. Facing heightened scrutiny from players, coaches, and fans, the league created a replay center in 2014 to improve referee performance, speed up the review process, and increase accountability.

In 2007, The New York Times reported on racial bias in NBA foul calls between 1991 and 2004, finding that white referees called fouls more frequently against Black players. The NBA disputed the findings at the time, but when the issue was revisited after the league implemented greater transparency, the bias disappeared. This demonstrates a powerful truth: when processes, data, and decisions are visible, behavior changes.

Transparency is not just about sharing information — it actively shapes a fairer, more accountable, and higher-performing workplace.

What You Can Gain with a More Transparent Company Culture
For those accustomed to keeping plans, information, and finances tightly controlled, embracing openness can initially feel uncomfortable. The instinct is often to limit sensitive information to the Executive Team or a select few who “can handle the truth.” Yet adopting a more transparent company culture offers tangible benefits that far outweigh the discomfort.

Assessments of organizational culture consistently show that transparency strengthens five critical areas:

1. Trust
   Trust in coworkers and company leaders — the confidence that people will do what they say they will — is the foundation of effective teamwork. It creates a sense of connection that allows teams to move cohesively toward shared goals. Trust is essential for building high performing teams where morale is strong and results consistently exceed expectations.

   Without trust, teams struggle to cultivate the vulnerability and cultural accountability necessary for sustained high performance.

2. Productivity & Accountability
   When team members understand and agree on norms and expectations, both individuals and teams operate far more efficiently within their areas of responsibility. Clarity and shared commitment reduce confusion over ownership, minimize duplicated efforts, and foster greater respect for everyone’s contributions.

   Research supports the impact of transparency on performance. A recent Wakefield Research study found that 92 percent of respondents said they would increase discretionary effort and improve their performance if their goals were visible across the company.  Another 37 percent reported that understanding overall company and peer goals would further boost their performance. Yet, more than two-thirds of employees admitted they do not clearly understand their organization’s overarching goals—a major barrier to higher performance.

   To overcome this, measure individual, team, and company performance using a focused set of metrics that are aligned, influenceable, meaningful, and timely — those that truly drive strategy. Then ensure these results are visible and easy to interpret, enabling employees to understand how their work contributes to broader organizational success.

3. Performance Coaching
   Another benefit of an open company culture is that feedback becomes welcomed rather than feared. Transparency fosters trust, and a shared sense of goals and collaboration naturally breaks down silos and reduces territorial behavior.

   By promoting mutual respect and a collective drive for improvement, transparency makes coaching toward better performance both natural and embraced. It allows managers and peers to deliver feedback that is more targeted, specific, timely, and aligned with team objectives, ultimately driving higher performance and stronger collaboration.

4. Sharing
   In an open culture, communication within and between teams is a top priority. Information is thoughtfully shared — not filtered, manipulated, or hoarded — while tough questions are encouraged and addressed, and new ideas are met with respect and consideration. Dashboards provide visibility into company metrics, and organizational opportunities and challenges are openly discussed and debated.

   The outcome is a workforce that feels ownership and pride in contributing to the company’s success. Transparent communication fosters both individual and collective accountability, while reducing back-channeling, rumor, and workplace gossip.

5. Decision Making
   Naturally, greater trust, clarity, open feedback, and information sharing lead to faster, smarter, and more effective decision-making. Imagine what improved decision-making could mean for you and your teams — greater agility, fewer missteps, and stronger alignment toward shared goals.

The Bottom Line
The Dalai Lama captured it perfectly: a lack of transparency breeds distrust and a deep sense of insecurity. How transparent is your company culture? You’ll know you’re on the right path when employees genuinely believe that:

• Communication is good throughout our organization.
• Company leadership has communicated a vision of the future that motivates them.
• They are well informed about issues going on within the company.
• They have enough information and resources to do their job well.
• The company listens to and takes employee ideas seriously.
• Feedback to management is well received and followed up on.
• There is cooperation between their department and other departments they work with.

To learn more about how to create a more transparent company culture, download 29 Ways to Build and Maintain Trust as a Leader