Perception is reality, as Andre Agassi was fond of saying in the 1990s. Recently three areas caught the attention of The Man From FCPA as very large changes in the way that corporations understand the public’s perception of them. The first is in the area of tax avoidance. Of all the many things the Apple tax imbroglio in Europe and Ireland has demonstrated is many businesses have changed their views on tax avoidance, to be more compliant because many companies fear that legal tax planning may well damage their brand and their reputation.
In Sweden, the cross-holding positions of one of the country’s largest business empires Industrivärden which owned up to 10 entities in several industries was brought to an abrupt end by a travel scandal, where corporate jets were provided to the wives, girlfriends, and families of corporate executives, who all reviewed and approved each other’s travel statements. Yet this cozy relationship was not simply about nefarious travel, as these companies tended to be underperforming financially and the other shareholders finally took action.
