Leadership transparency is increasingly being valued in the contemporary corporate setting. The Edelman Trust Barometer says regular employees (associates) don’t trust their CEOs as much as the executives themselves do. Only 25% trust their CEO. People want leaders that they can trust, and that means someone who is genuine and real.
People under a transparent leader will feel more engaged and motivated to do their best. This kind of openness makes a huge difference in how employees feel about their leaders and work environment.
The Prophet Muhammad (PBUH) is generally cited as the best example of ethical leadership, and his virtues include trust, transparency, and accountability. Even with these virtues, however, leaders today claim to be Islamic in values yet lacking in transparency in leadership.
The Principle of Transparency in Islamic Leadership
In Islam, leadership transparency not only means being transparent but also being accountable for one’s actions and decisions and being just to all parties. Leaders must be fair, transparent, and trustworthy in their dealings. For instance, in Surah An-Nisa (4:58), Allah commands leaders to practice justice and make decisions in an open manner:
“Indeed, Allah commands you to return trusts to their rightful owners, and when you judge between people, judge with fairness.”
The verse underlines transparency in leadership and being fair while taking decisions. Hadiths of the Prophet Muhammad (PBUH) also underline being open and accountable by the leaders. One popular hadith says:
“The leader of a people is their servant.” (Ibn Majah)
That is, a leader should lead with honesty and openness and serve as a role model to those they are leading.
Common Traps of Modern Leadership
Despite these Islamic teachings, most modern leaders do not practice transparency in leadership. PwC’s 2021 Global CEO Survey found that only 38% of CEOs reported that their organizations had clearly defined communication channels for transparency to employees. This disconnection typically stems from the fear of being vulnerable, a desire to hold power, or fear of personal interests.
Those who do not lead by being open about their actions and decisions have a tendency to create an environment of distrust.
In Islamic leadership, this not only takes away from organizational prosperity but also hurts the ethical base of leadership since it goes against the principles of justice and accountability provided in Islamic scripture.
What Should Be Transparent in Leadership
As a leader, there are some core areas of leadership that require transparency. This is an important aspect so that it would not bring harm to them, their employees and also the company itself.
They are:
- Decisions that affect employees. Transparency in changes affecting employees, such as dismissals, promotions, or new policies, is important to maintain employees’ trust.
- Financial transparency. Leaders must be transparent regarding the company’s financial standing and the logic behind budgetary expenditure, investment, and disbursement.
- Strategic goals and challenges. Being sure of the firm vision, goals, and future in the way of challenges can unite the team and boost morale.
These dimensions of transparency are founded upon Islamic values of justice and accountability within the Quran and the teachings of Prophet Muhammad (PBUH).
Unethical Transparency
Even though maintaining secrecy is important, things like handling secrecy can also happen. This occurs when it involves manipulation, mislead or avoiding accountability. Some of the examples are hiding the company’s major failures, sudden layoffs without notice, covering unethical behavior, or even making confusing decisions without reasons.
Instead of being transparent, the leaders come up with reasons that are vague or misleading, often to cover up mistakes or avoid taking responsibility. These unethical approaches cause frustration and unfairness, which is not aligned with Islamic leadership values.
When Should Leaders Exercise Discretion?
While openness is valued in leadership, there are occasions when absolute openness may not be the best. Certain choices, especially those involving personal or sensitive data, may require discretion.
Leaders should respect their own and others’ privacy by keeping personal matters private. In businesses, there are also some secrets that need to be kept. For instance, to launch a new product, the brand keeps the product’s upcoming feature secret until official launch events occur. This creates excitement for those who are waiting.
Not only that, there are some workplace issues that should not be discussed openly, like the identity of a victim regarding workplace harassment. Other things like legal matters, security risks, crisis management or even sensitive topics must also be handled the right way. There is some information that needs to be carefully managed before it is out in the public, shared at the right time so that it won’t cause any disturbance.
Practicing Transparency Leadership
To maintain the principles of Islamic leadership but also be transparent, leaders can encourage open communication. When there are important things to be discussed or decisions to be made, having a meeting to gather feedback and to share about any changes is encouraged. Leaders must learn how to be responsible and accountable for their own actions. This demonstrates humility and responsibility. Not only that, making things clear so that it would not cause confusion, such as goals, roles and responsibilities, is important. Leaders must also lead genuinely by taking open-minded decisions and creating a culture of openness.
Conclusion
Openness in leadership is a modern corporate trend and also a value deeply embedded in the teachings of Islam. Open leaders not only build trust with their teams, but also honor their moral and ethical duties. Though there are certain circumstances that call for discretion, the balance between transparency and privacy is necessary in maintaining successful leadership.
