A global giant slipping through the tax net. The case of Google in Australia

Term Paper , 2015 , 18 Pages

Business economics - Accounting and Taxes

This report was commissioned to examine the case of tax avoidance by multinational companies, like Google. The research draws attention to the background and raises the question to consider if the tax strategies used by Google in Australia are ethical.

Subsequently, a stakeholder analysis of the company and a Corporate Governance Discussion is performed. Afterwards, the implementation of Corporate Social Responsibility and the Corporate Social Performance of Google are scrutinized. Finally, an ethical analysis and recommendations will be provided.

In conducting this report, only secondary research methodologies were used, implementing resources such as books and websites.

The stakeholder analysis showed that society also present an important group of stakeholders. In view of the tax avoidance it becomes clear through the corporate governance principles and compliance with corporate social responsibility and performance that Google acts in a legal framework. Thus Google would like to expand their competitiveness and increase profits by utilising tax avoidance. However, Google does not consider societies unethical perception of their actions. The resulting consequences of these actions are also disregarded. Therefore society is expected to compensate with higher tax payments and national budgetary shortfalls are acceptable.

Evaluation of the case study leads to the following recommendations: A weakness was identified in the transparency and ethical responsibility of the company towards their stakeholders. It is recommended that Google should show more transparency and improve social responsibility in order to satisfy stakeholders’ needs and wants. Special attention should be paid to ethical decision-making. Recommendations have been made to suggest that a more ethical view by Google could potentially improve the company’s perception in future.

Inhaltsverzeichnis (Table of Contents)

• Executive Summary
• 1 Case Background
• 2 Body of the Analysis
  • 2.1 Stakeholder Analysis
    • 2.1.1 Who are Google’s Stakeholders?
    • 2.1.2 What are the Stakeholders’ Stakes?
    • 2.1.3 What Opportunities and Challenges do the Stakeholders present?
    • 2.1.4 What Responsibilities do Google has towards their Stakeholders?
    • 2.1.5 What Strategies should Google take to best address their Stakeholders?
  • 2.2 Cooperate Governance based on OECD Principles
    • 2.2.1 The Independence of the Board
    • 2.2.2 Ethical and Responsible Decision-Making
    • 2.2.3 Disclosure and Transparency
  • 2.3 Corporate Social Responsibility
    • 2.3.1 Economic Responsibilities
    • 2.3.2 Legal Responsibilities
    • 2.3.3 Ethical Responsibilities
    • 2.3.4 Philanthropic Responsibilities
  • 2.4 Corporate Social Performance
  • 2.5 Ethical analysis
• 3 Conclusion
• 4 Recommendations
  • 4.1 Demonstration of more Transparency
  • 4.2 Improvement of Googles’ Ethical Responsibility

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This report investigates the ethical implications of Google's tax avoidance strategies in Australia. It aims to analyze Google's stakeholder relationships, corporate governance practices, and compliance with Corporate Social Responsibility (CSR) and Corporate Social Performance (CSP) principles.

• Tax avoidance practices of multinational companies
• Stakeholder analysis and management
• Corporate governance principles and ethical decision-making
• Corporate Social Responsibility (CSR) and Corporate Social Performance (CSP)
• Ethical analysis of Google's tax strategies

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter 1: Case Background introduces Google Inc., its business model, and its tax avoidance practices. It highlights the discrepancy between Google's profit generation and its tax payments in Australia.
• Chapter 2: Body of the Analysis delves into a comprehensive stakeholder analysis, outlining the various stakeholders involved with Google and their respective interests. It further examines Google's corporate governance practices based on OECD principles, focusing on the independence of the board, ethical decision-making, and disclosure transparency. The chapter also explores Google's compliance with CSR principles, analyzing its economic, legal, ethical, and philanthropic responsibilities.
• Chapter 2.4: Corporate Social Performance explores Google's adherence to its motto "Don't be evil" and its commitment to social responsibility. It assesses how Google's tax avoidance strategies align with its stated values and the public perception of the company.
• Chapter 2.5: Ethical analysis combines the insights gained from the stakeholder analysis, corporate governance discussion, CSR, and CSP to evaluate the ethicality of Google's tax avoidance practices. It examines the potential impact of these practices on society, the principle of tax justice, and the overall fairness of the economic system.

Schlüsselwörter (Keywords)

Tax avoidance, multinational companies, Google, stakeholder analysis, corporate governance, OECD principles, CSR, CSP, ethical responsibility, transparency, tax justice, profit maximization, social responsibility, stakeholder perception, ethical decision-making.

• College: University of the Sunshine Coast Queensland
• Author: Anonym (Author)
• Publication Year: 2015
• Pages: 18
• Catalog Number: V321423
• ISBN (eBook): 9783668216013
• ISBN (Book): 9783668216020
• Language: English
• Tags: google, australia