Numerous organizations pledge to increase diversity, yet few publicly disclose how diverse they are. We suggest this reluctance to be transparent stems from an intuitive (albeit often misplaced) psychological calculation: that revealing struggles to increase diversity will undermine one's credibility and reputation. We evaluate the effects of transparency about lagging diversity numbers across four preregistered studies (n = 4,483), using real EEO-1 diversity disclosures from S&P 100 companies (Study 1) and information about the representation of racial/ethnic minorities in participants' own organizations (Studies 2-4). Contrary to conventional wisdom and related research on impression management in organizations, we observe that transparency about unfavorable diversity outcomes signals the genuineness of one's commitment to diversity and thus increases perceptions of progress and trustworthiness. This research importantly synthesizes and extends scholarship on intergroup relations and self-disclosure and further suggests that, in some cases, the utility of transparency for managing diversity is misunderstood. (PsycInfo Database Record (c) 2024 APA, all rights reserved).