Blog Post #5: To Cheat or to not to Cheat the System- Apple’s Potential Legal Woe
According to the article, Apple’s financial accounts are going to be scrutinized by the Italian government when news reports surfaced about an alleged tax evasion in the said country. This is in due part to the now more-aggressive behavioural stance the Italian government and its banking system have taken when dealing with major international businesses; as many global corporations have often found ways to cut corners when it comes to paying taxes in their respective countries where they operate in. With that being said, this article touches upon Milton Friedman’s remarks on a company’s strategies and actions. In particular, Porter had stated that a company should try to maximize profits while staying within legal and cultural boundaries. In other words, the company should not have to resort to illegal activities in order to increase their amount in profits. In contrary to this, Apple has allegedly committed tax fraud in Italy, which leads to the inquiries of how much does Apple owe and where else has Apple committed fraud. Overall, this questions Apple’s business ethics and damages Apple’s reputation as a leading company in the technology field, as consumers may begin to wonder how trustworthy is the business in its dealings.
