Business Case Study

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Businesses have existed since societies started to develop. However, today businesses have a much more complex function than they had hundreds of years ago. They do not only exist to make profits and to provide their people with goods and services, but now they glamorize the participation in philanthropy, have more laws and regulations in the way they operate for the people in the products and services, and the role they actually play in today’s society. However, how much should businesses be responsible for the society that they operate in? This is a question that many people ask in the question of ethics. Honestly, as a member of the middle class society, I feel that businesses should have a larger responsibility in their actions in the way…show more content…
Nowadays, tax evasion or avoidance is a so common in the U.S. that the top 500 big U.S. firms hold over $2.1 trillion overseas in order to prevent their profits from being taxed in the U.S. The biggest issue of this first and foremost is that this avoidance completely affects society in a negative way. The government has significantly less revenue to work with in mandatory and discretionary spending. This negatively impacts social services such as health care, Medicaid, and things that are foundational to the development of the future workforce, such as education. This can create a seriously detrimental effect on society years down the road as they avoid more and more taxes. More importantly, by avoiding taxes they also avoid paying for infrastructure in our country. The ironic thing is that businesses have to use our infrastructure in order to make as much profits as they do. An example of a company who avoids taxes through offshoring is Apple. Kirk Hanson criticizes Apple by saying “Apple is exploiting outdated tax laws and the lack of coordination between countries to shield its profits. The result is that Apple pays far less than its “fair share.” Real people suffer when tax revenues are low. Apple’s ethical obligation is to take a public-minded role in the creation of a new tax regime that closes the loophole it’s
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