FAIRNESS, ACCOUNTABILITY AND

TRANSPARENCY
Corperate and Social Responsibilities and Good
Governance
Introduction
• A company that applies the principal of fairness,
accountability, and transparency will usually outperform
other companies. Strong application of these principles
maintains investor's confidence, whose support can help
to finance further growth. Companies who implement
these principles into working environment life well ensure
corporate success and economic growth. They are the
basis on which companies can grow.
FAIRNESS
• Fairness is perhaps one of the hardest, yet most
important, to practice on a consistent basis.
• Fairness refers to equl treatment
• Fairness in business refers to the value of treating people
with standard of perfromance that is consistent and equal
based on commitments.
• Caring for community members and business partners
will similar level of fairness expected from them is also
vital.
• Fairness is concerened with actions, processes, and
consequences that are morally right, honorable, and
equitable.
ACCOUNTABILITY
• Refers to the obligation and responsibility to give an
explanation or reason for the company's action and
conduct.
• Accountability is crucial in ensuring high performance
within an organization.
• Accountability is applicable not just for profit-oriented
company, but also to non-profit organizations.
Today, companies' constituencies include:
1. Institutional Investors. Institutional investors are
becoming much more vocal and more active.
2. Customers. Although customer power has always been
a force to conted with, consumers have never used their
influence in the ways they are using it today.
3. Employees. Everyone knows the demands that full
employment has brought to accept on companies.
4. Communities. Companies face enormous pressure from
community groups to be a good corporate citizens.
TRANSPARENCY
• Transparency means openess; a willingness by the
company to provide clear information to shareholders and
other stakeholders. Transparency enusre that
stakeholders can have confidence in decision-making and
management processes of a company.
1. Respect. a transparent business demonstrates respect
for both employees and customers.
2. Positive Public Perception. scandal often triggers
some companies to become transparent.
3. Staff Involvement. staff members with no idea about the
business may assume, contribute in spreading gossip, or
if not be unconvinced and fearful regarding the conditon
of the staff.
4. Customers Service. customer service can get better
through transparent business operations.
...

5. Image Management. it is easy to manage the public

percerption of a company by being open and
transparent.

On other note, transparency of a non-profit organizations

involves how much it tells piblicity about its agency, ang
how truthfully a promptly it discloses this information. One
common way to be transparent is to make public
organization's financial records, principal programmatic
activities and officer's compensation package.