Social media impacts corporate transparency by providing platforms for open communication between businesses and their stakeholders. Companies can share real-time updates, engaging directly with customers, employees, and the public, which fosters a culture of accountability. Additionally, social media amplifies the voices of consumers, making it essential for organizations to respond transparently to feedback and criticism. However, the potential for misinformation and negative publicity poses challenges, requiring companies to develop effective communication strategies. Embracing social media as a transparency tool ultimately strengthens brand reputation and consumer trust.