Other than doing the philanthropy work and serve society in different ways, paying taxes honestly is also a social responsibility. Businesses that don't do that might develop a bad reputation and even face legal consequences. Most IT ( Income tax ) department across the globe are good with scrutiny.
Does social responsibility have to be incorporated by businesses?
- Thread starter Shavkat
- Start date
Everybody agrees and knows the importance of taxes. Taxes are levies imposed by government on goods and services. Taxes should be progressive in nature that is the more you earn, the more you pay and not the other way round. Company taxes should be made to encourage proliferation of businesses and not the one that would made many businesses closed.
Not only would they have a bad reputation, but they might also land into a big legal soup. No business would want to get into a legal fight with any government agency. They might have to pay a huge price for that. A huge fine or even getting the business license taken away or being shut by the government for wrong doings. That is one huge risk for saving some taxes.
This is something that is always very painful when such businesses can actually be able to pay those taxes but they will choose not to do so and make it hard for the entire community to enjoy the benefits of them paying those taxes.
Paying taxes is also part of corporate social responsibility. No one is disputing that fact. But that one won't give you a positive PR rating because it is only the government that knows about that.
That's true and no one can argue over that. The social responsibility work of the companies get them a positive social reputation and indirectly benefit their business.
We were talking about the small businesses that don't make enough profits yet to have a CSR program. At least they can do their bit by paying the taxes honestly.
Small businesses can still do corporate social responsibility at their small level. They can buy exercise books and distribute to some students of the community. They can pay a term's fees for a child in the community. It creates an impact in the minds of the locals.
Probably, I think taxes should be made in such a way that businesses will be able to pay it. There are some countries where it is hard for small businesses to grow because of the kind of taxes they pay.
This is true though, this would help the business in terms of promotion and advertisment. People tend to trust and easily rely on these companies that are socially active.
Yeah, unscrupulous business people will always find a way to exploit the immediate environment. But it probably have long-term negative effects to them.
