P.R companies would always recommend keeping your companies reputation untarnished.
Public Relations and public perception is everything, but some seriously big companies have decided to cut some corners and risk their reputations on saving some money. Be honest, if you, or anyone you know was given the chance to save some money, you would take it right? Who wouldn’t, but at the first mention of companies using these loopholes to their advantage there is a call to boycott using their services or anything related to them. Is it worth the risk?
Recently David Cameron has vowed to clamp down on companies moving their profits into offshore accounts. Large, successful companies such as Google, Apple, Starbucks and Amazon have all been ousted in recent years and now it seems our Prime Minister is getting serious, especially now the rate of corporation tax has been cut down to 20%, which he states,
“Makes us the most competitive place to come and start a business in the first place.”
Which can only mean one thing, these companies are trying their luck! These loop holes are well known for sitting firmly in a grey area that means they are technically not breaking any laws but they are morally frowned upon. Starbucks reputation and profits suffered when it faced a Boycott in 2012, the public decided their way of conducting business was not on, and the brand suffered for it. They quickly bucked their ideas up and started paying up.
Amazon have finally decided that they will now start paying their corporation Tax in the UK after previously recording its earnings in Luxembourg accounts. As their profits have not suffered as a result, because we all like a bargain and continue to use them, we can only assume this is a result of the threat by George Osbourne to target companies not paying their taxes. Their online presence and online PR remains safe for the foreseeable future.
Last year Facebook had been identified as not paying any corporation Tax for the second year running. Again the use of their services has not suffered with over 24 million people in the U.K updating their statuses on the social networking site.
Indeed it is a grey area, but as any good marketing and PR company will tell you, putting your companies’ reputation at stake may cost you more money in the long run, this is not good PR for Business. The companies mentioned above are juggernauts in the business world, but not all escaped the publics’ wrath (as well as the governments).
Whether it is devious and unethical, or simply taking a chance, here at Verriberri our Marketing and PR company Essex, will take no chances on your companies reputation, we believe in transparency and honesty. Get in touch with our friendly team today to see how we could keep your public relations at a level that will benefit you and your customers.