This year, transparency may have gone from being a regulatory requirement to a global competitive sport. Companies across industries are grappling with the new model of business transparency and striving to better communicate with customers, investors, and government regulators to build trust and create long-term value.
Simplicity and clarity as competitive tools
For example, promotional models such as free spins no wagering offers demonstrate how gaming companies are simplifying incentives by removing additional conditions and making terms more explicit. Rather than requiring users to navigate complex requirements, these structures prioritise clarity, which can improve both understanding and confidence. Risk needs to be communicated in a clear way to the customer in any industry. This is certainly true of video games but it also holds true for other industries such as financial services. In 2019 the FCA enforced climate disclosure requirements on listed companies to encourage more open discussion of risk and for it to be communicated transparently to customers. Forbes research from 2024 revealed that companies which prioritise clear communications to drive their marketing are more likely to garner trust with customers, with those in the marketing driven services industry averaging significantly greater customer trust than others.
Regulatory frameworks are raising the bar
Transparency requirements are fast becoming codified by governments and standards bodies. The TCFD recommendation to disclose climate-related risks requires organisations to present climate-related financial risks in a structured and comparable manner in their reporting. The global GRI reporting standards provide a widely recognised framework for sustainability reporting. At the same time, supply chain transparency requirements as laid out by the Modern Slavery Act, now embedded into the compliance regimes of large corporations, have sparked the first discourse on transparency in supply chains. Transparency in this context primarily concerns the commitment made by companies to prevent forced labour and the concrete measures they are taking to address the issue. Compliance is monitored through annual statements that have to be published by October each year. The new UK rules on executive pay are being accompanied by the launch of the UK Stewardship Code which imposes transparency obligations on many of the country’s largest asset managers. This post looks at the role of the new investor transparency requirements for asset managers operating in the UK.
Ownership and governance in the spotlight
Transparency is not confined to financial reporting but extends to other areas such as the corporate structure of the business. UK business ownership transparency rules around persons with significant control require the details of those with beneficial ownership of a company to be provided to Companies House and recorded on the public register. The ISO social responsibility standard details further international transparency guidelines for businesses seeking to ensure responsibility throughout the governance of their multinational operations. As attitudes to corporate governance continue to shape, those businesses that view transparency as a positive asset rather than a cumbersome process to get through will find it easier to attract investment and gain the support of stakeholders.
A structural shift, not a trend
Running a global company is increasingly opaque. Businesses are confronted with a welter of regulation, harassed by investors, and now monitored by a sceptical public. Greater transparency is now often essential in doing business around the world. Companies may need to be transparent about the products they sell, the finances they conduct and the true owners behind the organisation. To gain trust from international customers, suppliers and partners, companies may now need to treat openness as the normal way of operating.
