At a festival in England earlier this summer, the band U2, known for their humanitarian efforts in addition to their chart topping records, was confronted by Irish protesters and accused of dodging taxes. Activists showed up to the concert with a 20-foot balloon with the message “U Pay Your Tax 2” printed on the side of it. Security guards created a large scene and brought about stories of excessive force after they wrestled the anti-capitalist group to the ground and deflated the balloon.
After their massive, and incredibly profitable“360 Degrees” world tour in 2010, Forbes Magazine estimated the band members raked in $195 million. The basis for the heavy criticisms is an accusation that U2 dodged taxes in Ireland by moving its corporate base in 2006 from Ireland to the Netherlands to shelter music royalties from taxation.
It should also be noted that U2’s home country of Ireland has recently accepted a $113 billion bailout and is currently suffering through tax hikes, rising unemployment, and deep spending cuts as it attempts to pull its debt-burdened economy back from the verge of bankruptcy – so by moving their bank account, the band has certainly hit a sore spot of many of their most loyal Irish fans.
U2 has been involved for decades with various humanitarian efforts, and while their actions were completely legal, it will understandably be tough for many fans to reconcile the idea of a band campaigning against poverty yet avoiding Irish taxes at a time when their austerity-hit country desperately needs the money.
It is important that U2 handles this PR crisis very cautiously being that their image has been built up around civic and social responsibility.
The image and reputation of a business is one of its most valuable assets.
This is especially true for not-for-profit organizations like Goodwill. Many people rely on Goodwill’s reputation of securing donations that help produce the revenue used to fund community job training and employment placement services for people who have a lack of job experience or education, a disability, or are facing other career-related challenges. However, a lapse in reliability or integrity could ruin the successful organization it’s built itself to be.
The McDonald’s brand has also developed a reputation as a civically and socially responsible brand with ventures like the Ronald McDonald House or the Ray and Joan Kroc Community Centers, and Johnson & Johnson’s commitment to creating community-based programs aimed to improve health and well-being is frequently acknowledged.
So, why is a civically responsible image important for a business?
First, we are living in a society where civic, social and corporate responsibility is trendy. We are becoming less and less of an idealistic society. This can be seen in television’s current reality focus. Studies have shown that the men and women of Generation Y recognize their community’s problems and seek out solutions. We are no longer just “dreaming” of giving peace a chance.
Secondly, according to the 2010 Corporate Social Responsibility Survey conducted by Penn, Shoen & Berland, “More than 55% of consumers are likely to select a product that supports a certain cause when choosing between otherwise similar products.”
However, know that once you take steps to become a more civically responsible organization, you must be wary of all words and actions that follow. If you are looking to set a standard in your industry, you must live up to that reputation every step along the way. It is not suggested that you travel country to country lecturing about providing more tax revenue to third world causes when you are trying to minimize the amount you pay in tax revenue. Your publics will undoubtedly call out your hypocrisy.
Information courtesy of: usnewstweets.com
9206327648
