Transparency in corporate governance: Best practices, examples & board accountability

Major scandals, like Enron and Wirecard, totaling $76 billion, exposed the consequences of a lack of transparency in corporate governance. In response, the U.S. Securities and Exchange Commission (SEC) introduced stricter rules requiring companies to disclose board oversight of environmental, social, and governance (ESG) risks, climate governance, and cybersecurity. Meanwhile, the EU’s Corporate Sustainability Reporting Directive (CSRD) now mandates expanded transparency, oversight, and reporting for over 50,000 companies. 

It’s not a surprise that transparency is a key factor in attracting capital and maintaining credibility. According to a PwC Global Investor Survey, 71% of institutional investors say companies with clear governance and sustainability disclosures are more appealing investment targets.

In this article, we explore five critical indicators of transparent and effective corporate governance, the world’s top seven most transparent companies, and some easy-to-follow ideas for better transparency for the board of directors.

What is transparency in corporate governance?

Transparency in corporate governance refers to the clear, accurate, and timely disclosure of a company’s policies, decisions, performance metrics, and stakeholder impact. It ensures that boards, company executives, stakeholders, and the public have access to the information needed to evaluate a company’s management.

Corporate governance experts emphasize that transparent governance practices are an integral part of effective board oversight. Additionally, they simplify compliance management and improve a company’s credibility with stakeholders.

Let’s compare the signs of good governance transparency in the table below:

Aspect	Transparent Governance	Opaque Governance
Decision-making	Open, well-documented	Closed, lack of clarity
Financial reporting	Publicly disclosed	Limited access
Stakeholder involvement	Encouraged	Restricted

Investors are prioritizing transparency in governance like never before. Shareholder proposals related to corporate disclosures — particularly on climate risk, board diversity, and executive pay — have grown significantly. 

In its 2023 Investment Stewardship Report, BlackRock revealed it voted against over 2,400 directors globally due to concerns about weak governance and insufficient disclosure. Shareholders are also pushing back on opaque structures like dual-class shares, limited reporting, and entrenched boards, which diminish transparency and reduce investor influence.

Why transparency is critical for corporate governance

As we mentioned, millennials are the dominant age group in the global labor force. From 2019 to 2029, millennials will move to the 35–44-year-old group. According to the U.S. Bureau of Labor Statistics, this group’s workforce will increase by more than 4.5 million per decade. This is the biggest gain ever for a single age group.

The millennial generation, more than any other, stands for digital transformation, diversity, and corporate social responsibility at work. For this reason, today’s boards should be more accountable and take steps toward better government, environmental, social, and economic life.

• 39% of millennials prioritize their work-life balance and believe that it depends on the openness of their company and its management team.
• 75% of millennials would leave their employer for a company with better transparency and accountability.
• 40% of millennials are ready to share their salary information with other employees and stand for pay equity and an open culture in the workplace.

As such, openness becomes an aspect that boards of for-profit and nonprofit organizations no longer ignore. Not only does it allow them to become more in tune with stakeholders, but it also creates a better environment for employees and improves their effectiveness at work.

The foundation for achieving these expectations depends entirely on the way the company operates. A transparent, responsible leadership system creates trust throughout organizational operations, from key decisions down to the overall direction of the business.

When boards are clear about decision-making frameworks, succession plans, committee structures, and risk oversight processes, they reduce speculation and build confidence in leadership. Today, transparency in governance is increasingly underpinned by formal mechanisms and standards.

• The Task Force on Climate-Related Financial Disclosures (TCFD) initiative expects boards to show how sustainability risks fit into their long-term strategy, with investors increasingly relying on these disclosures to guide decisions.
• Globally, the OECD Principles of Corporate Governance emphasize transparent reporting on key areas like board structure, shareholder rights, executive pay, and oversight responsibilities.
• The SEC now requires companies to disclose how their boards oversee ESG risks, cybersecurity, and climate strategies.
• International Sustainability Standards Board (ISSB) standards set a global baseline for sustainability disclosures, helping investors and capital markets assess a company’s sustainability-related risks and opportunities.

5 basics of board transparency

Let’s take a look at the critical indicators that increase a board’s openness, accountability, and responsibility.

Board and financial disclosures

Because financial information is among the most vulnerable to share, it’s of the most interest to employees, stakeholders, shareholders, and young directors. Boards should ensure immediate and easy access to their proxy statement, tax returns, tax-exemption documents, board resolution templates, and important correspondence. 

Some companies even leave a link to their financial statements on their websites — that’s what any board member or managing partner should aim for to increase transparency.

In 2024, new SEC rules added more weight to this pillar, requiring disclosures on climate-related risks, cybersecurity oversight, and board involvement in ESG strategies.

Conflict of interest policies

Both for-profit and nonprofit organizations, no matter the size, should have established policies in writing on the way they address sensitive issues. The way companies manage risks makes or breaks a company’s reputation.

A prime example of proper risk communication is Capital One, a company that suffered a major data breach. The company announced the data breach as soon as it was discovered — in July 2019 — and started working with federal law enforcement to investigate the issue.

In December 2021, the company agreed to pay $190 million for the settlement of a lawsuit against it, and paid out cash payments for the lost time and customers’ out-of-pocket losses. That’s a level of responsibility and accountability every business should create.

Stakeholder communication and shareholder engagement

It’s not a surprise that silence breeds suspicion. Boards that actively engage with shareholders through ongoing dialogue are better equipped to address concerns before they turn into proxy fights or reputational damage.

Modern governance demands clarity around proxy statements, shareholder proposals, voting outcomes, and ESG initiatives. Companies that respond thoughtfully and publicly to investor concerns tend to build goodwill, even during challenging times.

Board diversity and accountability

It’s well documented that the diversity of thought, background, and expertise strengthens board performance. It brings new perspectives to risk oversight, strategy, and stakeholder expectations. Institutional investors now want to see board diversity matrices of sustainable growth.

Annual evaluations on the board level are increasingly important and, thus, are now common practice for for-profit and nonprofit organizations worldwide. Holding directors accountable isn’t a sign of dysfunction. It shows the board is functioning exactly as it should.

The Harvard Law School suggests a 7-step approach for better board evaluations. It includes deciding on the goals of the board review, evaluating people and company activities, identifying research participants, determining the techniques used, determining the methodology for evaluation, and determining action points based on the results. Such an approach guarantees more efficient board reviews, providing deep oversight into the board composition and potential issues surrounding it.    

Legal compliance with governance regulations

Boards should ensure immediate and easy access to their proxy statement, tax returns, tax-exemption documents, board resolution templates, and important correspondence. Some companies even leave a link to their financial statements on their websites — that’s what any board member or managing partner should aim for to increase transparency.

They offer a convenient way to share company data among stakeholders, while keeping security in focus and making all stages of virtual board meeting preparation a breeze.

They offer a convenient way to share company data with all interested stakeholders, while keeping the security in focus and making all stages of virtual board meeting preparation a breeze.

Top 7 examples of transparency in corporate governance

Here’s how board members of the most open companies in the world set the tone for transparent management in business.

1. Google — known for building a corporate culture of trust

As part of its HR strategy, Google gives new employees access to all of the company’s code and even individual objectives or results of every other company worker. Google also promotes the opportunity to communicate with its directors by asking a question at Friday’s all-hands.

Open access to strategic and performance data encourages a culture of accountability and cross-level alignment. Google’s practice of holding weekly “TGIF” forums, where employees can pose questions directly to leadership, also demonstrates a commitment to two-way transparency between the board and the workforce.

2. HubSpot — the leader of accountability and cross-functional work

HubSpot is responsible for every business decision, as it makes all company data available. From cash balances and board side decks to P&L statements and strategy vision, HubSpot employees have full and unrestricted access Additionally, all employees are also encouraged to work under a No-door policy, which promotes cross-functional collaboration.

HubSpot’s model exemplifies how making governance documents accessible internally supports trust and reinforces values-driven leadership. Their no-door policy allows visibility into leadership thinking as a good reminder that internal transparency matters as much as external reporting.

3. Slack — the pioneer of social responsibilities at work

The team collaboration and messaging tool, Slack has actionable public good initiatives under its Slack for Good program. For all its employees, Slack allows three days of VTO (volunteer time off). Plus, it pushes other companies towards knowledge sharing and openness by encouraging them to make their Slack channels public.

In Slack’s case, governance transparency is also about values. When a board is clear about how it supports social initiatives, it sends a powerful message about its commitment to corporate responsibility.

4. Wikimedia Foundation — the leader among nonprofit organizations

The nonprofit behind Wikipedia, the Wikimedia Foundation, builds a culture of company openness and trust. In its biyearly report, Wikimedia provides a detailed oversight into how it analyzes, answers, and releases outside requests for information.

Wikimedia exemplifies the gold standard for nonprofit governance transparency. Publishing decision-making processes and external communications shows a mature governance culture rooted in openness and public trust.

5. Change.org — known for making its financial information available

Change.org, the project led by the Change.org Foundation, is fully open about its finances. In its yearly Impact Reports, the company shares revenue numbers, development roadmaps, as well as its challenges, strategies, and goals.

By disclosing outcomes and the decisions’ context, Change.org stands for a holistic view of governance transparency. It encourages boards to report on financials, strategic direction, and organizational learning.

6. Insider — the president of behind-the-scenes communication

The media organization behind Business Insider and other platforms, Insider runs a detailed internal blog with regular interviews with the C-suite — and a biweekly newsletter showing their behind-the-scenes life. The company also has a pay transparency policy, keeping all internal salaries open.

By demystifying executive management, decision-making, and compensation practices, Insider builds internal trust and reduces the risk of pay equity disputes. Their internal storytelling approach is a valuable governance communication tool.

7. BoardSource and GuideStar — known for their commitment to open governance

To give nonprofit organizations more chances of getting donor support, BoardSource partnered with GuideStar and created a platform for easy information sharing. Using it, nonprofits can openly show the work process of their boards, while getting more chances to prove their effectiveness.

Creating transparent governance platforms tailored to nonprofit needs boosts legitimacy and donor confidence. This is a strong model for how sector-wide transparency elevates the entire ecosystem.

Overcoming board transparency issues for winning trust

Balancing between openness and confidentiality is easier said than done for many organizations. One poorly handled disclosure (or lack thereof) can spiral into shareholder lawsuits or negative headlines that linger far longer than any quarterly earnings report.

Another issue common to both types of organizations is dealing with regulatory compliance. From the SEC’s new ESG and cybersecurity rules to the OECD’s updated governance guidelines, the pressure is on boards to show they’re not only transparent but also in control and up to speed.

To meet rising expectations while protecting organizational integrity, board of directors transparency must be a priority. Here are three strategies that help:

1. Run independent audits and board evaluations
   Outside evaluations offer an honest, objective look at how the board is functioning. They highlight what’s working, flag blind spots, and help boards make changes before problems grow. For stakeholders, the fact that a board welcomes third-party feedback is often proof of its commitment to true accountability.
2. Bring in compliance partners
   Working with external compliance experts takes the pressure off the board and ensures your disclosures meet the current standards of regulatory authorities. This also reduces the risk of regulatory missteps or accusations of greenwashing.
3. Put policies in writing and back them up with training
   A clear, written governance framework helps everyone stay on the same page. It should cover how conflicts of interest are handled, what gets disclosed and when, and how risks are reported. However, onboarding and ongoing training for board members is key to making transparency a lived value.

Use this quick checklist to assess the transparency of your board’s governance practices and ask the following questions about your board:

Questions to ask	Answer
Do we clearly disclose board composition, roles, and committee responsibilities?
Does our board share annual governance reports or summaries with key stakeholders?
Do we conduct regular independent board evaluations or performance reviews?
Does our board have written policies on conflicts of interest, ethical behavior, and disclosures?
Do we welcome third-party compliance reviews or audits?
Do we disclose ESG, risk, and cybersecurity oversight at the board level?
Do we communicate clearly with shareholders, donors, or the public about major decisions?
Do we provide onboarding and ongoing governance training for board members?
Do we respond transparently to stakeholder concerns or proposals?
Do we show evidence of accountability when issues arise?

Tip: Answering “yes” to most of these questions means you’re on the right track. However, with several red flags, it might be time for a governance transparency tune-up.

How to increase accountability and transparency in the boardroom

Here’s how to improve transparency within the organization.

Conduct regular board evaluations

A capable board knows its strong sides and areas for improvement. To assess this area, ask yourself the following questions:

• Have all board members completed an evaluation in the past year?
• Are results used to guide reappointments or development plans?
• Are underperforming members offered support, or asked to step aside?

Regular evaluations create space for directors to reflect, give honest feedback, and raise concerns before they snowball. More importantly, evaluations help turn board service into a responsibility, not just a role.

Here’s how to put that into practice:

• Run annual self-assessments that let each board member rate their performance and the board’s overall effectiveness.
• Evaluate committee performance to ensure each group is aligned with its mandate.
• Track and disclose meeting attendance and participation.
• For deeper insights, use external facilitators to lead anonymous or structured reviews.

Disclose financials and executive compensation transparently

Financial transparency, especially around executive pay, is one of the most visible (and scrutinized) aspects of board accountability. If stakeholders don’t understand how the company’s money is managed or who benefits, they’re far less likely to trust leadership.

Ask these questions to ensure your board’s financial disclosures are up to standard:

• Are proxy statements easy to access and understand?
• Is executive pay aligned with shareholder value and performance?
• Do investors have visibility into the board’s role in approving compensation?

To strengthen this area, publish clear, jargon-free annual reports and governance summaries. Additionally, disclose executive compensation in proxy filings, including how it ties to company performance and risk.

Engage shareholders with clear and consistent communication

The only way all members will act in the interest of the company is when they’re truly engaged and set on success. Use this to evaluate how well your board is connecting with investors:

• Do shareholders have a direct way to engage with board leadership?
• Are responses to proposals shared transparently, even if rejected?
• Is the board proactive in addressing issues before they escalate?

Here’s how boards can foster better engagement:

• Host regular investor briefings or virtual Q&A sessions on governance topics.
• Use proxy statements to explain board decisions.
• Track and respond to recurring investor concerns in public follow-ups.

Set clear expectations and follow through

Adept boards set the tone by making sure every director understands their role, responsibilities, and the standards to which they’ll be held. Articulated expectations strengthen accountability across the board. Use this to review whether your board is holding itself to consistent standards:

• Do all directors receive a written outline of board responsibilities?
• Are attendance, preparation, and participation tracked and reviewed?
• Are expectations revisited as the company’s needs evolve?

Make expectations concrete by providing each director with a governance responsibilities guide or onboarding handbook. Also, outline performance metrics tied to attendance, participation, and preparedness.

Encourage individual responsibility and self-reflection

When board members aren’t checked for any misgivings, it instills the notion that they can focus less on the greater good and more on personal gains when it comes to board governance.

Conversely, when boards are focused on making members earn their positions, it’s seen as an honor to serve as a member. Conducting oneself with the interest of the organization at the forefront encourages dignified conduct and behavior.

In ensuring that board members care about their reputation and perception of their skill set, they’ll work hard to avoid sanctions and impact the board. To improve accountability within the board, honestly answer the questions in the checklist below:

• Am I prepared and contributing meaningfully in every meeting?
• Do I follow the board’s ethical and disclosure standards?
• Have I disclosed any conflicts of interest or concerns that may impact my role?

Of course, it’s important to implement corporate best governance practices to promote vigilance and accountability.  

Communicate transparency efforts proactively

Boards that actively share their governance initiatives with other stakeholders tend to build deeper trust over time. Here are simple questions board members can ask themselves: 

• Is there a section on the website dedicated to board governance and oversight?
• Are evaluation outcomes or governance milestones publicly shared?
• Does the board regularly communicate priorities, changes, or progress updates?

For example, many companies publish a governance section on their website with board bios, charters, and meeting summaries. 

Another best practice is to include a “Message from the Board Chair” in annual reports that explains key decisions and oversight themes for better engagement.

Board transparency and privacy for better corporate governance

Effective governance isn’t about full exposure but the protection of the organization, its people, and its long-term strategy.

That’s why it’s crucial to answer the following questions: 

• What information should be shared? 
• When to disclose it?
• What must remain confidential?

For for-profit boards, virtually everything discussed in their meetings remains behind closed doors because of the strong fiduciary responsibilities boards of these organizations have. Typically, it means limiting access to internal deliberations until the appropriate time.

In their meetings, for-profit boards often discuss things involving employees and their privacy, which thus should remain strictly confidential. 

Things are completely different for nonprofit boards, especially 501(c)(3) organizations. For their own benefit, nonprofit board transparency is crucial, as every action and idea should be clear to all beneficiaries and donors supporting them.

Thus, board privacy and confidentiality are an ongoing balancing act. Everything of a non-personal nature can be disclosed to the public, while confidentiality should never serve as an excuse to keep what should be available to the public private.

Companies must prioritize responsible risk management. For this, it must be clarified when privacy is necessary and justified. Here are common situations where confidentiality should prevail:

• Legal restrictions. Boards must comply with privacy laws, including employee data protection, whistleblower confidentiality, and the Health Insurance Portability and Accountability Act (HIPAA) or the General Data Protection Regulation (GDPR) obligations, where applicable.
• Pending business deals. Disclosing potential mergers, acquisitions, or restructuring plans too early can harm negotiations and investor confidence.
• Internal investigations. Sharing incomplete findings from audits, harassment claims, or compliance breaches may undermine due process and expose the company to liability.
• Security vulnerabilities. Detailed disclosures of cybersecurity issues or IT risks can unintentionally guide bad actors.

Governance technology for transparency

Between 2018 and 2022, the U.S. government lost an estimated $233 billion to $521 billion due to fraud, much of it stemming from weak oversight and poor documentation. In the private sector, three of the largest U.S. bank failures since 2008 happened in 2023 and were driven by inadequate risk monitoring and slow board response to emerging threats. 

The right technologies help boards stay informed, act faster, and create the kind of audit-ready transparency stakeholders expect. Let’s take a look at the three most popular tools that boards use.

Board management platforms

Board portals are one of the most efficient ways organizations practice transparency by making essential information easily available to stakeholders and keeping all paperless board meetings in one place. 

Ideals Board remains a long-time industry leader and has been a top choice for our customers. The board management software serves as an all-in-one platform for board collaboration before, during, and after meetings, and has the industry’s highest customer satisfaction ratings.

This platform gives directors secure access to agendas, voting outcomes, past minutes, and real-time updates — all in one place. The following includes its main capabilities and tools for more optimized governance:

• Centralized storage for board books and materials
• Meeting scheduling, minutes, and decision tracking
• Role-based access for directors, executives, and advisors
• Full audit trails and version control

AI-powered risk and compliance monitoring

Artificial intelligence (AI) technologies rapidly evolve, integrating into almost every aspect of corporate governance. Modern governance demands constant oversight, and AI and automation tools are now being used to:

• Flag regulatory red flags
• Track conflicts of interest
• Monitor insider transactions or unusual activity
• Alert directors to governance-related risks in real-time

Secure digital document storage and audit trails

Secure, accessible, and transparent document management is non-negotiable for any organization committed to success. Fortunately, there are many cloud-based technologies tailored to any size and type of organization. Cloud-based platforms now offer the following features:

• Encrypted storage with granular access controls
• Automatic versioning and time-stamped audit trails
• Document sharing with external regulators or stakeholders
• Built-in compliance with frameworks like the Sarbanes-Oxley Act (SOX), GDPR, or HIPAA

Key takeaways

• Corporate governance transparency has become a business necessity, not just a best practice.
• Institutional investors prefer companies that provide transparent governance and sustainability disclosures.
• Boards must provide timely, accurate insights into their decision-making, risk oversight, and strategic company direction to preserve corporate transparency.
• While openness is essential, boards must also know when confidentiality is critical. Legal obligations, competitive risks, and ongoing investigations often require boards to withhold sensitive information, but transparency should never be sacrificed unnecessarily, nor should confidentiality be used as a shield for avoiding accountability.
• Board portals, cloud-based platforms, along with AI capabilities, make modern governance more transparent and easier to manage.
• Boards that commit to best practices in corporate governance and transparency typically focus on five essential areas: open board and financial disclosures, strong conflict of interest policies, active shareholder engagement, diversity and accountability in board composition, and compliance with international governance standards such as those from the SEC, OECD, and ISSB.
• Looking ahead, the most effective boards will treat transparency as a dynamic practice. With the right systems, mindset, and culture in place, transparency becomes a foundation for long-term trust and resilience.