financial-transparency

Vocabulary Word

Definition

'Financial transparency' refers to openness about a company's financial activities. People can see where money comes from, where it goes, and how it is handled. It's like an open book for financial stuff.

Examples in Different Contexts

In government finance, 'financial transparency' involves the public disclosure of budget allocations, spending, and debts. A government official might state, 'Enhancing financial transparency allows citizens to see where their taxes are going and holds us accountable.'

Practice Scenarios

Academics

Scenario:

The university is receiving a substantial grant. It's crucial we outline how these funds will be allocated to various departments.

Response:

Definitely. Greater financial transparency would let the staff and students know exactly how the grant money is being used.

Business

Scenario:

We're being questioned about our financial practices. It might be time to examine our financial policies and make necessary changes.

Response:

Good idea. We also need to ensure financial transparency so that stakeholders can better understand our financial policies.