Building Trust Through Transparency: The Role of Audit and Risk
Organisations need transparency. The bigger an organisation gets, the slower information moves, an understandable situation for busy people who are all encouraged to achieve, deliver, get things done.
Reporting, gathering data, recording progress, all seems slow and tedious. “You want the job done? I don’t have time to write you a report”.
However, without transparency, organisations can make big and lasting mistakes. Sometimes at a personal level, sometimes at a strategic level. Transparency is needed, but also a buy in from everyone that it is vital to make things better.
Transparency is not just about sharing information; it's about sharing the right information in the right way. Effective audit and risk management practices offer a clear window into the inner workings of an organisation, demonstrating a commitment to ethical standards, regulatory compliance, and sound governance. This openness helps to establish a foundation of trust between the organisation and its stakeholders, including investors, customers, employees, and the wider community.
There is a very human element that needs to be considered before the structural systems are put in place. The fear of being judged.
When individuals are asked to share reports on the progress of their work, the feeling of being judged can arise from several psychological and social factors. Understanding these factors can help in creating a more positive and constructive environment for sharing work progress. Here are some reasons why people might feel this way:
Fear of Negative Evaluation
One of the most common reasons people feel judged when asked to share their work progress is the fear of negative evaluation. This fear is not just about the potential for criticism but also about how that criticism might affect their self-esteem and standing within a group or organisation. Individuals may worry that their work will not meet the expectations of their superiors or peers, leading to a negative judgment of their capabilities.
Vulnerability in Exposing Work
Sharing progress reports inherently involves exposing one's work to scrutiny. This exposure can make individuals feel vulnerable, as it opens up their efforts, decisions, and possibly mistakes to evaluation by others. The act of sharing work, especially work that is incomplete or not yet successful, can feel like exposing one's professional weaknesses.
Comparison with Others
In many work environments, there is an underlying or overt comparison between team members' performances. When asked to share progress reports, individuals may fear that their work will be directly compared to that of their peers, leading to feelings of inadequacy if their progress does not measure up. This comparison can exacerbate the feeling of being judged, especially in highly competitive settings.
Past Experiences
Individuals’ past experiences with sharing work or receiving feedback can significantly influence their current perceptions. If someone has previously encountered harsh criticism, public embarrassment, or lack of acknowledgment for their efforts, they may project those experiences onto current situations, anticipating judgment even if the environment is supportive.
Cultural and Organisational Climate
The broader cultural and organisational climate can also play a significant role. In environments where mistakes are not seen as learning opportunities but as failures, the act of sharing work progress can become fraught with anxiety. If the organisational culture is not built on trust, transparency, and constructive feedback, individuals are more likely to feel judged rather than supported when sharing their work.
Perfectionism and High Personal Standards
For individuals with perfectionist tendencies or very high personal standards, any request to share work can feel like a judgment. Such individuals may be their own harshest critics and might project this critical view onto others, assuming that any feedback will be negative or that their work is never good enough to share.
Strategies to Mitigate Feelings of Judgment
To mitigate these feelings and create a more positive environment for sharing work progress, organisations and leaders can:
Foster a culture of constructive feedback and learning from mistakes.
Encourage open and transparent communication, emphasising the value of progress over perfection.
Provide training on giving and receiving feedback effectively.
Celebrate milestones and progress, not just final outcomes.
Ensure that comparisons between employees, if made, are fair, constructive, and aimed at fostering team collaboration rather than competition.
By addressing the underlying causes of why people feel judged when sharing their work progress, organisations can enhance collaboration, innovation, and employee well-being.
Audit Practices: More Than Compliance
While audits are often viewed through the lens of compliance, their role in fostering trust goes beyond ticking boxes on a regulatory checklist. Audits provide an objective assessment of an organisation’s financial health and operational integrity, offering reassurances that the company is managed efficiently and responsibly. By publicly sharing audit outcomes and how identified issues are addressed, companies signal their commitment to transparency, further solidifying stakeholder trust.
Risk Management: A Proactive Approach
Similarly, proactive risk management practices play a crucial role in building trust. By identifying, assessing, and managing risks, organisations demonstrate foresight and a commitment to safeguarding their stakeholders' interests. Transparently communicating about potential risks and the steps taken to mitigate them not only prepares stakeholders for possible challenges but also shows a dedication to long-term sustainability over short-term gains.
The Path Forward
In an era where information is abundant yet skepticism runs high, the value of building trust through transparency and accountability cannot be overstated. Organisations that embrace audit and risk management not as mere regulatory necessities but as opportunities to demonstrate their integrity and commitment to ethical practices will stand out in the crowded marketplace. By doing so, they not only protect their financial and operational interests but also cultivate a loyal and engaged community of stakeholders committed to their success.
That trust starts with a culture that celebrates audit and risk management. Once established. audit and risk management practices become indispensable tools in the quest to build and maintain trust. By prioritising transparency and accountability, organisations can forge stronger, more resilient relationships with their stakeholders, paving the way for sustainable growth and long-term success.