Transparency in Financial Crisis

Communication is like a game. For it to work, each person has to trust that their partner will play by the rules. As Professor Anat Admati says, the same is true for corporations and their stakeholders.

“To have good governance, you need trust and accountability,” says Admati, a professor of finance and economics and the director of the Corporations and Society Initiative. How does a society ensure that markets, businesses, and governments are all on the same page? As Admati says, “We need rules. I can commit to you that I won’t harm you because something bad will happen to me if I [do].”

In this episode of Think Fast, Talk Smart, Admati joins host Matt Abrahams to discuss how communication forms a bedrock of trust that can align markets, businesses, and governments — for more accountable capitalism and a healthier society.

Episode Reference Links:

• Anat Admati

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