Corporations usually portray themselves as socially accountable members of society. Inversely, Caterpillar Inc. has conduct such misbehavior for their corporate social responsibilities. The construction giant now faces scrutiny from social media on their latest corporate tax evasion. The social concern related to tax and accounting fraud can affect the company’s internal and external stakeholders. Since the issue originated from their headquarters with high social capital the stakeholders such as workers, suppliers, lenders, and customers in the vicinity will be highly affected by the company’s financial instability. The workers might lose their jobs due to the company’s back taxes and salary cutting. Workers may even resign or quit unexpectedly …show more content…
Customers might switch to different companies to purchase their heavy machinery instead of doing business with a firm who may have committed tax fraud. Corporate social responsibility (CSR) also known as corporate citizenship which includes corporate social responsibility, and sustainability emphasized on higher levels of how business should avoid negative impacts on the society. CSR is a concern regarding the responsibilities of a company who is sociality ethical to other stakeholders (Dobers 2009). It is the influence of a business’s action on society and an obligation as a decision-maker to partake in protecting and improving the welfare of society. The money that is generated from the corporate tax can deliver public goods and services and in turn spurs economic growth for the nation. Generally, as a citizen we are raised with the belief that we ought to contribute our resources for the betterment of society. To better our nation, we must all give back a little of our hard earnings to the government so that they can allocate those funds for mandatory spending, interest on federal debt, and discretionary