ICAEW SE · Chapter 7 · Question 3 of 18
Which of the following best describes 'transparency' in corporate governance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: D) Openness and clarity in disclosing information, so that stakeholders can understand the organisation's decisions and performance
Explanation
Transparency is about open, clear and timely disclosure of relevant information, both positive and negative. It allows stakeholders to hold the organisation to account and supports trust. Selective disclosure of good news only undermines transparency.
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