Openness: The Basis of Trust
Trust is not merely the result of refraining from being dishonest: it also requires you to refrain from concealing things, or in some cases, to make an effort to let certain things be known.
Traditionally, businesses were very tight-lipped about their operations and financial details, in the interests of protecting their "trade secrets" and their degree of financial strength (or weakness).
Since most small businesses don't have many trade secrets, and since their financial information can be opened to public scrutiny by any attorney or accountant, there is no reason to be overly secretive about them.
Financial Openness
Corporations are required to disclose their financial data to shareholders, and these statements are often included in annual reports (which are treated as public documents). While small companies that are not corporate entities are not held to the same standard, the practice by larger corporations should be enough to reassure them that there is no harm in doing so.
When it comes to creditors, they will request financial information about a company, and you are required by law to provide accurate information when seeking a loan, so concealing your financial details is not helpful in tricking others into extending you credit to which you are not due.
If anything, keeping your books open builds trust among creditors (who may be more forgiving if you run into a tight spot and need some leniency) as well as customers (who can see you're not gouging them to fatten your own wallet), and others.
Physical Openness
There is an increasing openness in modern business to build trust with consumers.
For example, it is very common for many restaurants to have an open kitchen, such that customers can see the food being prepared. It's so pervasive that a restaurant who insists on doing this work behind closed doors may arouse suspicion with some patrons. There are also examples such as jewelers whose work is done in the shop window rather than a back room.
In some cases, "showing your work" can have a promotional effect - people find it entertaining to watch others do specialized tasks - but more importantly, it gives customers the confidence that everything is being done "in the open."
Openness in Management
Openness in management refers to providing employees with complete information about the company rather than only what they are presumed to "need to know" in order to perform their specific job functions.
Some large corporations who have done this have found that some of their best ideas are coming form people on the front lines rather than the boardroom.
Openness With Information
Ditto what was said above, only this time, it's customers.
Openness With Ideas
The "ideas" within a company are often patented, trademarked, and locked up tight. The author suggests that they shouldn't be.
The example given is the Beta and VHS systems: the technology that drove Beta was kept a closely-guarded secret, and the company that invented it (Mitsubishi) had a monopoly on a very small market share. Meanwhile, Sony made the VHS standard open to others to use, and though they had a smaller share of the market, the market itself was larger, so much so that they made a great deal more profit for having been open.