Organizational Transparency: A New Perspective on Managing Trust in Organization-Stakeholder Relationships

Abstract

Transparency is often cited as essential to the trust stakeholders place in organizations. However, a clear understanding of the meaning and significance of transparency has yet to emerge in the stakeholder literature. We synthesize prior research to advance a conceptual definition of transparency and articulate its dimensions, and posit how transparency contributes to trust in organization-stakeholder relationships. We draw from this analysis to explicate the mechanisms organizations can employ that influence transparency perceptions.

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