Reza Housseini

A fully transparent business

Is this even possible?

Why?

Why would you want to create a fully transparent business? A first reaction might be that this is a stupid idea. Why would you want to tell your competitor everything? But this is a very money centric view, where the only reason to create a business is monetary gain.

I am not looking for monetary gain, in my opinion a lot of problems in todays world come from a rats race to optimize this single goal. But a livable world for everyone, including plants and animals, can only come from a more equal distribution of wealth and to safeguard this, a very broadly supported decision making process.

Equal wealth distribution

Imagine a pool full of water sourrounded by a sand wall. Everyone can draw from this water from a small channel. A few channels are slightly bigger than the rest and will therefore quickly grow and draw more water. And the bigger they grow the faster the water will flow out of them. Very soon only two or three big channels are left discharging all water until nothing is left.

Generating income is done by selling a resource. This resource can be labour but it can also be something more abstract, like a temporary roof over your top.

A stable system

Drawing water from a pool sourrounded by and walls seems to be an unstable system. As soon as a disturbance occurs (one channel slightly bigger then the other) the system spirals out of equilibrium and all water is discharged by one channel until nothing is left. But we want a stable system

Two core principles

This leads to two core principles a business must have:

  1. All wealth must be distributed fair and equal (this also includes animals, plants, and communities adjacent to the business)
  2. Decisions must be taken with everyones best interest in mind and everyone has the chance to participate in decisions affecting them

But this two core principles directly lead to the heart of this article: full transparency.

Full transparency

What does full transparency entail? In short: Complete accessibility to all information inside the business. The longer version: For people to have trust in the business, they need to have the possibility to verify. But proper verification means proper documentation. Documentation not only means reports but also tools to access data and generate reports. Of course

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Figure 1: Documentation of finance flows