I was recently asked the following question by the President of a local company:

“How can I encourage open and honest communication within my company?” The simple answer is -

 Create the culture for it.
 Model it.
 Reinforce it.
 Recognize it.
 Reward it.

If you’re serious about open and honest communication, you must live it consistently, and reprimand where it’s not reinforced, recognized and rewarded.