By Dennis Shaughnessy
So, what’s the real reason that Tim Cook, CEO of Apple, was on stage with Oprah Winfrey a few weeks ago?
We’re told it’s because Oprah is doing a big deal for a new Apple business to compete with Netflix.
But Cook was reported to have cried as he hugged Oprah and spoke of the “values” that drive Apple’s success. Does this mean that Cook has become a “do-gooder” like Oprah, and that Apple has turned over a new leaf–and will start to pay its taxes like the rest of us?
(Note, I’m writing this on April 15, tax day….)
So here’s our question for Mr. Cook.
If Apple is so committed to values like doing good for communities, why does it fight so hard to avoid paying its fair share of taxes?!
I don’t understand how a CEO can claim to be committed to social impact and responsibility, or in other words to be a good corporate citizen, and not be willing to pay its fair share. No company as large as Apple has fought so hard to avoid its taxes. From moving IP to Ireland, and the Netherlands, and wherever else an off-shore tax haven can be found to shelter income from US taxes, Apple is a global leader in tax avoidance.
As someone who teaches corporate social responsibility to young business students, it’s troubling to think that a company like Apple labels itself a good corporate citizen while fighting so hard to avoid paying its tax bills. Corporate citizenship begins with sharing the wealth and prosperity earned through the power of capitalism to unlock the talent and commitment of people. Corporate tax payments aren’t just dividend or share buyback opportunities missed, but instead these payments help to fund public schools that educate everyone’s children, hospitals and clinics that care for our sick, pension and aid programs that lift up the poor, not to mention national defense.
Corporations were gifted a tax cut in 2017, but reports are that companies and their advisors are still fighting to seize every loophole possible (and then some) to minimize cash tax payments. (By “gifted” I mean that there was no trade on the other side of the dramatic rate reduction, like promising to invest the windfall in human capital and R&D instead of share buybacks).Since Oprah is known by many as the “Queen of Empathy” (not to mention when one of the richest people in the world) maybe next time she’ll whisper in Tim’s ear that his company should step up and pay its fair share so that everyone can enjoy the kind of opportunities that he and Apple’s employees enjoy. It will be challenging to meaningfully address the growing inequality trend in the US without large and successful companies like Apple contributing to the solution through meeting its financial obligations to not just investors but society.
