What is corporate greed? How does it affect economy? Why do corporations embody this policy? In simple words, corporate greed is the dishonest management of a large corporation.
The executives of the definite corporation apply various dishonest tricks, which help them accumulate more money robbing common taxpayers and the entire state. In my opinion, corporate greed is a relevant problem, because nearly every influential corporation ‘behaves’ in this unfair way. I would like to pay attention to the cause and effect of corporate greed and its types.
Everybody knows that the most important duty of every large corporation is to make money.
Naturally, they decide to make money with the help of numerous dishonest methods. Firstly, they hire illegal employees, who receive their money unofficially. This decision is smart, because one can hire one hundred illegal employees and save thousands of dollars on their health insurance.
This practice is very popular all over the world, especially in the developing countries. Although it is difficult to do such things in the USA, Canada or the UK, many corporations manage to hire thousands of employees who do not exist on paper. Moreover, every solid company should apply the norms of positive discrimination hiring disabled people. Such companies are supported by the government. They receive money for health insurance and gain other bonuses when they employ a disabled person. The boss of a company can take this money but hire a common person who will work regularly earning a common salary. Of course, this healthy person will be noted as a handicapped employee in the official documents. In his turn, the boss puts the bonus and extra money into his pocket.
The next problem is connected with offshores. Some corporations decide to make money partially moving their business offshore. For example, a large corporation can hire a group of illegal employees who answer calls or promote its production in the Internet for cheap.
These employees do not exist in the official documents; therefore, the corporation does not have to pay taxes and provide them with insurance. I guess this problem is enormously serious, because a large corporation makes billions of ‘dirty’ dollars every year and does not pay taxes. This money does not exist in its documents. Consequently, the budget does not receive billions of dollars, because of offshores and illegal employees.
The most serious effect of corporate greed is the increasing pressure on the fair taxpayers. When the government sees that there is little money in the state budget, it increases taxes. Instead of this decision, the government should check and control large corporations, which do not pay taxes hiding their real annual profit. In my opinion, it is possible to reduce taxes to the minimum if every taxpayer paid them honestly. Unfortunately, the fair taxpayers have to cover the ‘holes’ of the dishonest ones. Furthermore, many corporations borrow millions of dollars from the state government to improve the condition of their business. Consequently, they earn billions with the help of offshores, do not pay taxes and take money from the state budget for their own needs.
It is possible to say that many politicians ignore this problem, because they are closely connected with corporations. They receive money for their election campaign but they have to permit corporations to work in the way they want. Doubtless, you ought to be very attentive when you vote for a particular candidate. It is possible that he runs for election being supported by a large corporation, which uses his position for its own profit.
Corporate greed is a very serious problem in many countries. The USA is not an exception. Many large corporations gain their profit illegally. They cheat the government and the common taxpayers who have to pay off the debts of big business. The most obvious effect of corporate greed is the increase of taxes.
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