Ad Contrarian, Bob Hoffman presented a unique
perspective by bashing advertisers for engaging in a “Carnival of
Hypocrisy”—that is, Hoffman takes offense to corporations hyping concern for
social causes like Black Lives Matter while avoiding to pay taxes via offshore
tax shelters. Hoffman argues that “taxation is by far the most potent source of
resources for societies to redress social ills.” Interestingly enough, adland
has historically sought to
deny address its dearth of diversity with
tax-deductible donations to various heat
shields and faux philanthropic initiatives.
The “Carnival of Hypocrisy” presented by advertisers does not match the “Circus
of Discriminatory Deception” perpetuated by the advertising industry.
Carnival Of Hypocrisy
By Bob Hoffman
"By 2017, American companies had put at least $2.6 trillion into offshore tax shelters...Nike had $12.2 billion.... The company estimates that if its $12.2 billion was repatriated to the U.S., it would owe $4.1 billion in U.S. taxes... Designating its profits this way allows the company to avoid paying even a dime of U.S. income taxes on these profits..." - The Oregonian. More about this in a minute.
The horrible murder of George Floyd was treated by the marketing industry this week as an opportunity to express sincere desire for change. Sadly, it also exposed our talent for hypocrisy.
While brand marketers were exhorting us to end practices that cause social damage to black Americans, they were themselves deeply engaged in some of the most pernicious practices.
I have my own standard for evaluating a company’s true commitment to social justice. It is this: to what extremes does it go to avoid paying taxes?
Taxation may be unpleasant. Tax dollars are often squandered on idiotic schemes. Paying taxes may reduce a corporation’s returns to investors. But taxation is by far the most potent source of resources for societies to redress social ills. Taxation funds education. Taxation funds housing. Taxation funds health initiatives. Taxation funds social services.
There is no way around this -- when corporations take extraordinary measures to avoid paying taxes, they are doing extraordinary harm to citizens who have the greatest need for education, housing, health, and social services. If brands really believe that Black Lives Matter they must stop starving our country of the resources to improve black lives by hiding their taxable profits in offshore tax havens. Like it or not, to a substantial degree, taxation is the engine that funds social justice.
There will be those who say that these tax dodges are perfectly legal. In many cases they are. This fact impresses me not one bit. If you're going to use social media or paid media to pound your chest about social justice, you have a higher responsibility than just to obey the letter of the law. There is little honor in being legally compliant and ethically opportunistic.
Dear business colleagues -- if you really want to help heal this country here’s step one: Pay your fucking taxes. Until you’re willing to do that, please instruct your marketing departments to spare us the high-minded pieties.
Let’s make this so simple that even a ceo can understand it: You can’t be for social justice and against paying taxes.