EXPERIENCED. RESPECTED. RENOWNED.

The correlation between transparency and white-collar crime

On Behalf of | Apr 19, 2021 | White Collar Crimes

White-collar criminals in Texas often feel as though their behavior will not affect anyone else. Holding a position of power, having access to corporate financial information and possessing narcissistic qualities may all increase one’s risk of unethical behavior.

Just one of many ways that corporations can mitigate some of the risks of white-collar crimes is to incorporate transparency into the company culture.

Understanding transparency

Transparency has benefits for every participant of a business endeavor including customers, employees, organizational leaders, shareholders and partners. According to Glassdoor, transparency is an effective information-sharing system that encourages everyone to share openly with each other. This communication takes place at different levels. For example, between team members, between executives and department managers, and between corporate representatives and the public.

Transparency fosters understanding and encourages unity and teamwork. With clear expectations and effective monitoring of employees, corporations can limit opportunities to commit crimes.

Strengthening culture

Company leaders can improve their organization when they imbue their culture with transparency. The far-reaching effects can include benefits like higher employee engagement, better customer relations and more effective communication. According to the Harvard Business Review, when people feel comfortable questioning each other’s decisions there is more accountability and incentive to act ethically and professionally. Employees may also feel more comfortable providing insight and solutions for potential issues.

Because many white-collar criminals took advantage of opportunities, companies may want to look at how they can reduce those opportunities. Many white-collar criminals are good people who made a few bad decisions. If corporations prioritize transparency, they may better prevent such instances from happening.

Archives