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5.2. Transparency PDF Print E-mail
Written by Leo Bartlett   
Friday, 07 December 2007
A frequent call from all quarters in recent years has been a need for greater transparency, and the Social Economy has not been excluded . Transparency is closely linked with accountability but also takes into account financial responsibility, governance, legal requirements, tax disclosure , funding requirements, impact measurement, integrity and values of the sector, reporting , as well as language and communication.

Transparency was a matter of concern expressed in the views of many participants throughout the study. Comments form participants such as the following were not uncommon:

Governments might well advocate for transparency according to their agenda. But it is the sector itself that has to put in place much more transparent operating systems within a business framework environment.
There are many temptations for people and organisations to use their resources for their own personal ends. There must be honest and transparent governance to keep check on this .

 

Further, some of the drivers of negative behaviour identified in the discussions on self-interest, competition and cooperation are at least in part due to a lack of transparency.

Transparency in some form(s) throughout all aspects of the sector is a necessary pre-condition for change in the sector.
However, it seems that transparency alone is not enough.  The sector’s stakeholders need to become more sophisticated in their understanding of the sector to ensure that any increased transparency doesn’t result in negative backlash.  For example, there is no point encouraging organisations to disclose their overhead costs or to argue for the need for their greater investment in capacity if naïve funders will view this negatively and reduce their financial support.  Equally, if the community is not prepared for executives (and workers) in the sector to receive reasonable compensation, it is unfair to expect those executives to disclose their more often than not meagre compensation packages.

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