Issues in Contemporary Management-Critical Discussion of Management Essay

Issues in Contemporary Management-Critical Discussion of Management Processes, Ethics, and Globalization - Essay Example e giant outlet commanding 31% of the total market turnover has been the recent victim of public criticism after revelations that since it began operations in the country, it had been avoiding tax payments to authorities, only paying 8.6 million despite generating 3 billion in revenues. Tax avoidance is an ethical issue as well as a national and global issue for a company that has its operations in many countries such as Starbucks. For close to 15 years, the coffee giant in the United Kingdom had been avoiding remitting taxes by reporting losses, only reporting profits in a single year. The company has been in operation in the country since the year 1998, with 700 outlets. There are various reasons why companies pay taxes to the authorities. While it is a legal obligation of the company, it is an ethical issue of portraying a good corporate image for the company (Rosser, Murray, 2010, p. 21). Closure of business is imminent by the authorities if the company is found to have evaded tax. Although it is legal to avoid paying taxes, criticism and loss of business for the company is quite possible in case the public decides not purchase products by the company. When David Cameron revealed to the public that Starbucks had not been paying taxes for the 15 years it had operated in the country, angry protestors demonstrated outside its outlets accusing the company being un-loyal to the country. Regardless of its origin being in America, the public expects the company to pay taxes to the UK authorities. To the public, any company should undertake this ethical practice so long as they buy their products. Starbucks risks loss of business from the public by failure to pay taxes. Physical demonstrations could turn to economic to the extent of the public choosing not to purchase the products. Governments are keen in payment of taxes by the companies operating in their jurisdictions (Great Britain, 2011, p. 14). The issue of Starbucks became a political problem to the point of