The paper 'Is Tax Avoidance by Corporate and Multinationals Acceptable" is a good example of business coursework. The ideology of business ethics and the responsibility as a social community are in most cases used interchangeably but each of the two has a very different definition in a social context. The terminology of business ethics consists of two words that are known to many, these are ethics and business (McWilliams & Siegel, 2001). Business is used to mean an organization or a company that has the main objective of providing goods and services to its customers for profit-making, the organization could be said to be social entities that are made in a deliberate structured and well-coordinated systems of activities (McGee, Robert, 2006). The organizations are always linked to the external environment and they must always interact with the external environment in a responsible and ethical way in order to survive effectively.
Ethics have been given definitions that are varied; these include the study of morality, the inquiry into the ideology of morality where the term morality refers to the judgment of moral standards and the rules of conduct in any business.
The codes of the moral principles refer to the values that guide an individual or a business organization in regard to what is known to be either right or wrong(McWilliams & Siegel, 2000). This particular essay is going to give detailed and precise information on the idea of business ethics and responsibility concerning whether the avoidance of payment of tax by the corporate organization and the multinationals is ethical or otherwise. It is also giving the importance of the business organizations to be responsible towards the external environment in the economic, legal and ethical manners (Crowe, 2008). Payment of tax by the corporate business organizations and the multinational cannot compromise its importance to the country cannot be underestimated although there are many points of views that have been raised concerning the ideology of tax payment.
Some have advocated for the idea while others have always demonized the idea (McWilliams & Siegel, 2001). The points that have been put forth in the support of the proposition include the fact that it is the responsibility on an individual to God to oblige to payment of tax to the country in which an individual resides.
However, responsible companies use the idea as their tool of responsibility socially whereby they go ahead and make their specific reference to abide by the law of the government concerning payment of tax, this is very ethical highly responsible of the companies(McGee, Robert, 2006). There are other companies who totally evade tax payment, these companies are viewed as irresponsible and unethical, this is due to the fact that the companies will have broken the rule of law which is the guiding principle on what is right and is ethically wrong.
The law is designed to give guidance not only concerning the ethics of the people but also how corporate should conduct business in the country (McWilliams & Siegel, 2001). The social responsibility of the company by giving back to the society is compromised and therefore the company is said to be very irresponsible and unethical. The company that operates in an irresponsible manner like avoidance of payment of tax creates a very bad image of itself and therefore its operations in the future may not be that secure due to the fact that the customers are always concerned with the operations of the company (Shumate & O'Conner, 2010).
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