Transparency is a Double Edged Sword

The internet has introduced a new concept to business: Transparency. Many businesses view transparency as a means to increase customer service. For example, UPS allows customers access to their computer system in order to track the delivery status of packages sent. Or banks offer online banking in order to allow customers greater control over their accounts. But many businesses fail to see how transparency could actually harm their business.

Consider the negative publicity Nike endured when it was discovered (unknown to Nike) that contract factories overseas were using child labor to manufacture Nike shoes. The scandal that ensued nearly crippled the company. In fact, to this day Nike incorporates its experience from that debacle into nearly every one of its marketing campaigns.

Now consider this: no matter what industry, almost every US business has a similar "Achilles Heel". We outsource every conceivable function overseas. From services to manufacturing, the trend is for US businesses to send jobs to where they can be performed by less expensive labor. However, most of the companies that outsource use overseas contractors and may or may not have systems to insure foreign workers are being treated fairly. Even Nike who now champions the cause of corporate social responsibility, performing audits of its contract facilities regularly, still finds instances of horrendous business practices overseas.

Is your business prepared to weather the storm?