The 2009 National Business Ethics Survey - Ethics Resource Center

Transparency and AccountabilityThe BackgroundThe recession economy in 2008 and 2009 affected thousands of American businessesand millions of employees and investors. The sheer size and scope ofthe crisis – as well as Washington’s massive response – begged new questions.The fundamental issue, on a grand scale, was trust. Lenders became highlyrisk-averse. Faith in some of the country’s biggest and most famed institutionsturned out to be misplaced. Consumer and investor confidence evaporated.(The Rasmussen index of investor confidence, which had reached its highestlevel ever at 150.9 on January 7, 2004, hit its lowest level ever at 52.5 on March9, 2009.)The crisis quickly turned corporate “transparency and accountability” into aWashington buzz phrase and major policy focus. Investors questioned the accuracyof financial reports, the legitimacy of compensation packages receivedby executives, and the honesty of leaders when they appeared in public tooffer assurances. Congress and the new Administration, eager to restore confidencein the economy, set about imposing new standards for openness andresponsibility on businesses, especially among recipients of government bailoutfunds.What is transparency? A common definition of the term is the degree to whichan organization:provides public access to informationaccepts responsibility for its actions, andmakes decisions more openly 9_____________9. Ball, C. (2009). What Is Transparency? Public Integrity, 11(2), 293-307.©2009 Ethics Resource Center 21