Heartland Institute Scandal and the Importance of Company Transparency

Leaked documents revealed that Heartland Institute, a US climate-skeptic think-tank, hopes to raise almost $4.5 million in corporate donations during 2012, says BusinessGreen.  The documents indicate that large corporations such as Microsoft, GlaxoSmithKline, Pfizer and Diageo provided money to the controversial group. 

While companies are more than entitled to spend promotional budgets however they like, they should be open about where money is flowing so they can be held accountable by shareholders and other investors, Bob Ward, policy director at Grantham Research Institute on Climate Change and the Environment at LSE, told BusinessGreen.

"For [companies] founded on science and engineering, it's difficult to see how they could support an organisation that is so ideological rather than scientific," he added. "The question for any company is: is that really the type of group you want to be associated with?"

The documents suggest Microsoft paid $59,908 to Heartland in 2011, GlaxoSmithKline (GSK) paid $20,000 in 2011 and $30,000 the year before, Pfizer provided $130,000 in 2010, and Diageo gave $10,000 in 2010 and is expected to shell out another $10,000 in 2012, BusinessGreen also reports.

Greater transparency equals better business.  Transparency can mean several things.

Investopedia uses transparency to describe high-quality financial statements and notes that investors should steer clear of companies that lack transparency in their business operations.

The Business Journal reports that at the forefront of any leader's mind should be establishing the faith and the trust of the people comprising the enterprise he or she serves.  Compromising faith and trust can lead to a breakdown of social and organizational functioning. 

As a business that's already taking action for the environment, or interested in doing so, there's no reason not to be transparent and maintain the faith of your current and potential customers.  By verifying green product labels,  EcoGreenOffice partner "Greennii" is one way to increase company transparency.

EcoGreenOffice makes Greennii’s cut, because we offer conventional products, as well as green products — and are honest about which products are green and which are conventional.   We realize that businesses can’t instantly become green, so we offer one green product at a time, helping companies to develop a long-term game plan and eventually choose from a full list of sustainable office supplies.  

With information more accessible than ever on a global scale, increasing your company's transparency will help you to maintain current customers and attract new ones.