Tax Evasion Violates Ethics And Culture Of Corporations Essay

704 Words Jan 15th, 2016 3 Pages
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 entire issue is branded unethical because of how it erodes the integrity of the tax system all businesses and individuals are a part of.
Alternatively, what could have been done in this kind of situation is for the leaders of any corporation no matter if it’s a bank or not, to make a commitment to engage in practice seeing and telling the truth. It is about ensuring company’s policies and procedures have into place ethical standards followed by all employees. With regard to this, as an alternative preventing tax evasion and other illegal activities in HSBC Swiss operation is to have new external auditors to review the tax returns and check for fraudulent activities, establishing and reviewing company’s internal

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