The Transparency Catch-22 - How Too Much Transparency on Industry Can Hurt Us

We often hear a lot about the need for Transparency in business; to protect consumers, shareholders and to insure that the companies are following the rules and regulations. Unfortunately, what we do not hear much about is the flip-side to that coin; transparency is a double edged sword. Let me explain.

You see, too much transparency is a Real Problem because each business has methods that give them advantages, if there is too much transparency then the competition gets this important information without earning them. This is bad because it allows those who try new things and learn the hard way to be instantly copied while the same school-of-hard-knocks were not endured.

Too much transparency gives intellectual property to competitors. Often government agencies demanding transparency actually harm the market place and help competitors steal insightful information, while they create barriers to entry with such incessant over regulatory demands. Thus, the government agencies are in a way in cahoots with competition and work at un-leveling the playing field often for off-shore or foreign competition.

This forces American Companies to lose profits, hurting shareholders and causes good jobs to leave. Perhaps this is why you have a low-paying job a retail box store instead of something better, although everyone has to and actually should start behind the counter or on the floor. Read Ray Kroc's book; Grinding it Out.

Meanwhile on ethics read; Warren Buffet's Essays, because he discusses the importance of transparency and ethics also. Beware those who demand transparency to help the consumer, shareholder or ethical business practices, because the flip-side is over disclosure and transparency hurts the very people the regulators claim to be protecting. Transparency must be dealt with in a serious manner with all the issues addressed.

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