Starbucks now write your name on their cups as part of an attempt to be seen as more ‘friendly’. But have they been writing their tax bills fairly in the UK?
Not according to their critics. They allege that the company has paid no corporation tax in the UK for three years, despite sales of £1.2 billion.
The “nauseating stink” of their stores is “the stench of corporate hypocrisy” according to Mail Online – the world’s most popular news website. Jokes about whether they are good bean counters abound.
Then Stephen Williams, a British MP and former tax consultant, popped up on the BBC News to call for a boycott. This is getting serious.
The uproar follows hot on the heels of Facebook, Amazon and Google facing similar accusations earlier this year.
Between them, these four brands are worth billions. But does tax really matter?
I was recently asked: “All this stuff is very interesting, but is there any evidence that tax reputation can impact negatively on sales?” The implication being, if I manage my tax bill cleverly, I can save money – but does the reputational risk outweigh the financial gain?
If the queue I passed outside Starbucks’ this morning is anything to go by, the answer is not yet.
But whilst trusted brands take years to build, accusations can damage them very quickly. Many companies experienced this over supply chain “sweatshops” in the 1990s. Well managed, ethical supply chains are now a mainstream issue for responsible businesses.
Tax could be going the same way. 18 months ago, when we published our report, Tax as a Corporate Responsibility Issue, the topic was still emerging. Now it’s firmly on the agenda and all serious companies should be thinking very carefully about it. This issue is not going away.