Brewing Up Controversy: A Case Exploring the Ethics of Corporate Tax Planning
CASE REQUIREMENTS -
1. What principles are involved in this situation? Start with not only the written standards that apply to this situation (i.e., the CTA standards), but also consider the un-written rules of appropriate conduct that guide our behavior. How should Maria weigh the relative importance of each of these principles in making her recommendations for how to move forward?
2. Companies as well as individuals can demonstrate character in their ability to act in ways that support their expressed corporate values. Prepare a point-by-point comparison of the ways in which SABMiller's current tax practices either support or conflict with its corporate values. Overall, would you say that SAB MiIIer's current tax practices are consistent or inconsistent with its corporate values?
3. Identify the relevant stakeholders in this situation.' What are the long-term consequences for stakeholders if SABMiller continues with its current tax practices? Note: You may discuss consequences in general terms, such as positive, negative, neutral, or unknown, since you do not have enough information to quantify these impacts at this time. Do the positive consequences appear to outweigh the negative ones? Can you justify the negative consequences in ways that align with the company's values?
4. Using Accra Brewing's income statement (Appendix A), identify the income statement items that would be impacted by each the four tax-planning strategies used by SABMiller.
5. What do you think SABMiIIer's approach to tax should be going forward? How can SABMiller better align its actions with its values, create more positive outcomes for its stakeholders, and/or mitigate negative consequences for its stakeholders?
Attachment:- Case Study.rar