The former chairman of the HSBC Swiss private bank Lord Stephen Green covered illegal activities of banking arm dealers and helped wealthy customers from around the world to evade taxes. This kind of strategy used by Mr. Green shows disappointing financial performance by people who are supposed to act like leaders not criminals. Instead of keeping the company’s reputation safe, Mr. Green engaged himself and the company who he’s been leading into trouble.
Moreover, while Mr. Green let these illegal activities to continue, the auditors at that time should have caught this instead of being coerced followers who were afraid to raise alarms about the situation at HSBC. In other words, tax evasion violates ethics and culture of corporations. The …show more content…
With this in mind, as one of the alternatives that I should implement would be to change financial regulatory policy. Tax evasion is fundamentally illegal, especially not paying taxes violate the ethics and culture of banks. Tax evasion has become a problem that has substantial costs, causing United States losing billions in tax receipts each year. It is not an easy task to stop this “both the US and European nations are working toward a system where asset information and bank transactions are automatically recorded and duly shared” (Horowitz, 2015,
p.1); countries need to continue working together to stop this trend. The policy would be about how to choose clients who want to open account in the bank. First, I would wisely pay more attention to where they want their money invested and second would be screening out companies over tax issues in the past. Screening should be done by filtering personal and corporate accounts separately and look for shady transactions. This would require for the company to have highly trained financial data analysist who would closely work and share their findings with the
Moreover, while Mr. Green let these illegal activities to continue, the auditors at that time should have caught this instead of being coerced followers who were afraid to raise alarms about the situation at HSBC. In other words, tax evasion violates ethics and culture of corporations. The …show more content…
With this in mind, as one of the alternatives that I should implement would be to change financial regulatory policy. Tax evasion is fundamentally illegal, especially not paying taxes violate the ethics and culture of banks. Tax evasion has become a problem that has substantial costs, causing United States losing billions in tax receipts each year. It is not an easy task to stop this “both the US and European nations are working toward a system where asset information and bank transactions are automatically recorded and duly shared” (Horowitz, 2015,
p.1); countries need to continue working together to stop this trend. The policy would be about how to choose clients who want to open account in the bank. First, I would wisely pay more attention to where they want their money invested and second would be screening out companies over tax issues in the past. Screening should be done by filtering personal and corporate accounts separately and look for shady transactions. This would require for the company to have highly trained financial data analysist who would closely work and share their findings with the