Commitment to Paying Fair Tax: How GBC accredited organisations lead the way with transparency and responsibility
25 July, 2024
Good Business Charter (GBC) accredited organisations must communicate their commitment to paying their fair share of taxes, avoiding legal tax avoidance and maintaining transparency in their relationship with HMRC, as we believe paying fair tax is crucial in creating a fair society for all.
The estimated tax gap from companies not paying their fair share is a staggering £36 billion (HMRC, 2023) and 72% of people prefer to work for businesses that can prove they pay their fair share of tax (Fair Tax Foundation, 2023). IBE research also shows that corporate tax avoidance continues to be the top ethical concern for the British public (43%), marking the 12th consecutive year it has held this position (IBE, June 2023).
This case study will look at how some of our accredited organisations are setting out their approach to paying fair tax, clearly communicating this to their customers, employees, suppliers and the public, as required by GBC accreditation.
Showcasing fair tax through responsible business and ESG reports
Schroders Personal Wealth, a national wealth management business and Praetura, a financial services company specialising in lending and equity solutions for startups and SMEs, are just some of the GBC accredited organisations who report on their responsible business and ESG commitments and progress within the framework of their GBC accreditation. Within these reports, they also set out their approach to Paying Fair Tax. In addition, they also accredit with the Fair Tax Mark, this is not a requirement of GBC accreditation although we work with the same principles.
Demonstrating fair tax commitment through a dedicated webpage
Leeds Building Society has taken a different approach in communicating their commitment to paying fair tax. To demonstrate their commitment to wider society, they published a webpage on “Why we care about Fair Tax”. This page articulates the their approach to tax transparency and responsibility, emphasising their dedication to demonstrating their ethical business practices to the broader community.
The article outlines Leeds Building Society’s belief that paying the right amount of tax is essential for fostering trust and accountability. By openly discussing their tax contributions and policies, they aim to set an example within the industry and affirm their role as a responsible corporate citizen.
In support of their stance, Leeds Building Society conducted research among their members in 2022 to celebrate Fair Tax Week, revealing a strong consensus on the importance of fair tax payment. The survey showed that 96% of respondents view the payment of the fair amount of tax as integral to being a responsible business (Leeds Building Society, June 2022). The article articulates their approach to tax transparency and responsibility, emphasising their dedication to demonstrating their ethical business practices to the broader community.
This finding underscores the alignment between the society’s practices and the expectations of their members, reinforcing their commitment to ethical and transparent financial conduct.
Through these efforts, Leeds Building Society not only highlights their own tax practices but also contributes to the broader conversation about corporate responsibility and fair taxation. Their transparent approach serves as a model for other businesses, demonstrating that paying fair tax is a fundamental aspect of being a responsible and trustworthy organisation.
Setting the standard
We are incredibly inspired by the dedication of our GBC accredited organisations and particularly the accredited organisations featured in this blog, who communicate their commitment to paying fair tax for a better society, in such clear, transparent and public ways. These organisations have not only recognised the importance of paying fair tax – in the spirit of the law, not just to the letter of the law – but have also taken concrete steps to communicate this clearly to their customers, employees and supply chains, to promote a better society for all.
Our hope is that GBC accredited organisations lead the way in encouraging other organisations to adopt an ethical and responsible approach to paying their fair share of tax.