Why Transparency is Good for Business

Government transparency is good for business, and that’s good for the Texas economy. Transparency leads to increased competition, while also promoting public trust. Here are some reasons why transparency is good for business:

  • Studies show that opaque procurement practices may lead to excess projects costs of 25-50%. CLICK HERE to read more.
  • Firms may be reluctant to bid if they are unclear of the demand curve in a particular market. CLICK HERE to read more.
  • Firms bid more aggressively when there is transparency. CLICK HERE to read more.
  • Reduced procurement costs might translate to increased expenditure on public goods, like schools, or possibly to lower taxes for residents.
  • Increased transparency in the context of opening up pricing information to the public, seeks to increase market access which, in turn, means more firms potentially bidding for a project.
  • The Texas Comptroller’s Office recognizes the need for local governments to be transparent in areas of contracts and procurement, economic development, public pensions and debt obligations, and through the Transparency Stars program, recognizes those local governments that go above and beyond in their transparency efforts. CLICK HERE to read more.
  • Upon becoming the first city to be awarded 5 Transparency Stars from the Comptroller’s Office, McKinney Mayor Loughmiller said, “The City Council and I have long embraced public transparency… That our community has more ways than ever to be engaged, obtain factual data and information, and stay informed is great news for McKinney. Every citizen deserves open government.” CLICK HERE to read more.
  • Involving stakeholders builds public trust and provides valuable insight to the government.
  • CLICK HERE to learn about secrecy surrounding taxpayer dollars.