In the fast paced capitalist world of society today, corporations are feeling more pressured than ever to produce higher profits. They are pushed to their limits and forced to come up with new innovative ways of generating revenue. As a result, it is sometimes tempting to give into shortcuts that maximize the success of the company, although that often means walking the line of morality.
Apple is an example of an organization that gave into this temptation. By using complex network of offshore subsidiary accounts, located primarily in Ireland, the company was able find loopholes in the system and ultimately avoid taxes. Between 2009 and 2012, Apple cleverly managed to avoid paying $74 billion in taxes. Other corporations guilty of tax avoidance similar to this situation includes Google, Starbucks and Amazon.
While this strategy not technically illegal, Apple’s system of avoiding taxes is certainly unethical. Where does a corporation draw the line between an aggressive business structure and an unethical business strategy? What does a multi-billion dollar company like Apple owe to society and the people in terms of taxes? These are questions that each individual corporation must be prepared to answer based on where their own corporate ethics lie.
Picture: Apple Store in New York City