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The Naked Corporation Is a Breakthrough—A Timely and Excellent Perspective on Successfully Operating in Today’S Open Environment.” “Transparency impacts everything from strategy to culture, as well as a corporation’s relationship with its various stakeholders. The Naked Corporation is a breakthrough—a timely and excellent perspective on successfully operating in today’s open environment.” —Gordon Nixon, Chairman and CEO, RBC Financial Group “The word naked can mean exposed—and not many businesses enjoy that thought. But times are changing fast. The Naked Corporation demonstrates convincingly that from now on, candor and transparency will be the essential foundations of trust; and that trust will be the key ingredient of success. Any corporation failing to heed this book’s important message may find itself very exposed indeed.” —Sir Martin Sorrell, Group Chairman and CEO, WPP “A rare thing these days—a business book with a profound and important new idea. The Naked Corporation explains how a new force is changing the corporation and competitiveness. There are relevant, sometimes jarring insights in every chapter. And what a great read.” —Indra Nooyi, President and CFO of PepsiCo, Inc. “Transparency is key to any company wishing to gain consumers’ and shareholders’ trust. Being transparent in how you operate your business is liberating; it frees you up to focus on long-term business strategy. The Naked Corporation gives the how-to. Now, it’s up to all of us to build transparency into our corporate culture.” —Glenn M. Renwick, CEO, The Progressive Corporation “Tapscott and Ticoll are ahead of the wave. The era of transparency and all its implications are about to crash down on corporations everywhere. The Naked Corporation is the first survival guide.” —Paul Taaffe, Chief Executive Officer, Hill and Knowlton “A well-researched and timely book. The authors show how trust— powered by broad corporate transparency—isn’t just about ethics, it is about success.” —John Chambers, President and CEO, Cisco Systems “The Internet has spawned a new era of openness and transparency that has turned the power relationship between corporations and stakeholders on its head. Tapscott and Ticoll offer compelling insights into how to manage change and succeed in an increasingly networked world.” —Debra Dunn, Senior Vice President, Corporate Affairs, Hewlett-Packard Company “Tomorrow’s markets will be x-ray environments. The Naked Corporation brims with priceless advice for business leaders determined to survive and thrive in this see-through world order.” —John Elkington, Chair, SustainAbility “Every organization needs new kinds of leadership to meet the urgent challenge of sustainable development. Tapscott and Ticoll powerfully demonstrate how transparency is essential to making this new leadership possible.” —Ernst Ligteringen, Chief Executive, Global Reporting Initiative “Tapscott and Ticoll make an important contribution to the definition and practice of corporate citizenship—a critically important topic for the twenty-first-century corporation. Their identification of transparency as the central tenet and organizing principle of productive citizenship is a powerful insight.” —Roger Martin, Dean, Joseph L. Rotman School of Management, University of Toronto “At a time when trust in business is so low, Tapscott and Ticoll demonstrate that honesty is not only the best policy, but the best strategy.” —Richard E. Cavanagh, President and CEO, The Conference Board, Inc. “The Naked Corporation is a must-read for corporate directors and sets the agenda for corporate governance in the twenty-first century.” —Beverly Topping, President and CEO, Institute of Corporate Directors “This thoughtful, insightful, and eminently readable book promotes corporate transparency with vigor and verve. But it’s really about the crying need for honesty and trust in a world betrayed by greed run amok.” —William Dimma, veteran of fifty corporate and forty not-for-profit boards, author of Excellence in the Boardroom: Best Practices in Corporate Directorship ALSO BY DON TAPSCOTT The Digital Economy: Promise and Peril in the Age of Networked Intelligence (1996) Growing Up Digital: The Rise of the Net Generation (1998) Who Knows: Safeguarding Your Privacy in a Networked World (1996) (with Ann Cavoukian) Paradigm Shift: The New Promise of Information Technology (1993) (with Art Caston) Creating Value in the Network Economy (editor, 1999) ALSO BY DON TAPSCOTT AND DAVID TICOLL Digital Capital: Harnessing the Power of Business Webs (2000) (with Alex Lowy) Blueprint to the Digital Economy: Creating Wealth in the Era of E-business (1998) (editors, with Alex Lowy) FREE PRESS A Division of Simon & Schuster, Inc. 1230 Avenue of the Americas New York, NY 10020 www.SimonandSchuster.com Copyright © 2003 by Don Tapscott and David Ticoll All rights reserved, including the right of reproduction in whole or in part in any form. FREE PRESS and colophon are trademarks of Simon & Schuster, Inc. Designed by Amy Hill Library of Congress Cataloging-in-Publication Data Tapscott, Don The naked corporation : how the age of transparency will revolutionize business / Don Tapscott and David Ticoll. p. cm. Includes bibliographical references and index. 1. Corporate governance. I. Title: How the age of transparency will revolutionize business. II. Ticoll, David. III. Title. HD2741.T36 2003 658.4—dc22 2003049369 ISBN 0-7432-5350-7 eISBN 978-0-743-25350-5 Visit us on the World Wide Web: http://www.SimonSays.com ACKNOWLEDGMENTS Transparency is a new global business issue as we discovered in our research, consulting, and travels several years ago. The existing work on transparency is sparse, limited primarily to issues of financial reporting, corruption in emerging economies, and arms control(!). Yet in the networked economy, transparency cuts to the center of vast, newly controversial and urgent topics like leadership, trust, and sustainability. As we’ve grappled with these issues, many people have contributed invaluable help, insight, and creativity. Bill Gillies ably headed our core research team and repeatedly provided the gift of hard-nosed realism to challenge our assumptions. Social science researcher Phil Courneyeur made a unique and special contribution. Jody Stevens and Antoinette Schatz of New Paradigm Learning Corporation kept us organized and productive; they put in many long hours over the course of this one-year project. Stephen Hamm, Jennifer Punn and Bruce Geddes worked diligently and enthusiastically; each contributed unique gems. We thank each of you personally for your insight, hard work, and collaboration. This book was preceded by a series of multi-client research programs that we led from 1994 to 2002 at Digital 4Sight, a firm we founded with Alex Lowy.1 Funded by corporations and governments, the research described how the Internet changes business and society. We offer deep thanks to our many former clients and colleagues of Digital 4Sight. Among the global practitioners who strongly influenced our work in progress were Chris Coulter, Debra Dunn, John Elkington, Ann Florini, Lise Kingo, Roger Martin, Robert Monks, David Vidal, David Wheeler, Anthony Williams, Simon Zadek, and Jeffrey Zalla. We also thank the many others who contributed their time, insight and experiences to this project, including Chris Anderson, Bob Bertram, Kathy Bushkin, George Carpenter, Mildred Cho, Bruce Cleveland, Tony Comper, Jennifer Corriero, Bill Cox, John Dalla Costa, George Dallas, Robert Darretta, Derrick de Kerckhove, Stanley Fawcett, Roger Fine, Charlie Fine, Michael Furdyk, Jim Griffin, Keith Harrison, Robert Herz, Adrian Hosford, Jon Iwata, Steve Kerr, Kate Kozlowski, Joel Kurtzman, Alan Lafley, Ralph Larsen, Ken Larson, Lawrence Lessig, Mark Letner, Bud Mathaisel, Mike Mitchell, Bill Nielsen, Gordon Nixon, James R. Olson, Charlotte Otto, Robert Parker, Howard Paster, Eugene Polistuk, Mike Powers, James Reeves, Glenn Renwick, Ron Ricci, Michael Rice, Cynthia Richson, Mike Roach, Saskia Sassen, Mohan Sawhney, Eric Schmidt, Joshua Sharman, Damon Silvers, Tim Sinclair, Claude Smadja, Doug Steiner, Anke Schwittay, Tom Stewart, Paul Taaffe, Lester Thurow, Chris Tuppen, Bill Watkins, Sister Patricia Wolf, and Bob Young. Bruce Nichols of the Free Press provided brilliant editorial guidance and support from outline development to final product and showed a deft hand with the virtual blue pencil. He has been a wonderful colleague in all respects. Joan Ramsay of The Globe and Mail was an invisible conscience who coached us to be direct and precise. Wes Neff, our literary agent at the Leigh Bureau, was a patient and insightful partner. Bill Leigh immediately grasped the potential of this project when it was an amorphous idea; his insight and encouragement helped us sharpen the vision. In the spirit of transparency we would like to disclose that we have had consultant or business relationships with some of the organizations that we mention, quote, or discuss in this book. In the past three years we have had relationships with Cisco, CKI, the Conference Board, Hewlett-Packard, Hill & Knowlton, IBM, KPMG, Microsoft, and Motorola. Also, Don Tapscott is a corporate director of Celestica. Our respective wives, Ana Lopes and Tracey Macey, provided valuable ideas and advice that repeatedly brought us down to earth. We owe them our highest gratitude. Having said all this, we as authors take full responsibility for the content of this book, as well as for any errors or omissions. We dedicate this book to our children, Alex and Niki Tapscott and Amy Ticoll. We hope that you and your generation find it helpful in the construction of a more transparent
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