Apple accused of hoarding profits and harming the real economy
Researchers say the company has the resources to develop economies
A new research paper released today criticises technology giant Apple for their lack of investment in the real economy.
The report's authors say that Apple is short-changing societies by acting as a financial investor when handling its enormous company profits instead of reinvesting them for the benefit of society.
The report from SOMO, 'Rich Corporations, Poor Societies: The Financialisation of Apple' explains how the multinational shrewdly minimises its corporate costs through the relentless off-shoring of production and related ‘activities’ to low-wage countries and tax havens.
They say that Apple has more capital than it can productively use, for instance it has $200million sitting in offshore accounts.
As a result, Apple is increasingly operating like a large institutional investor, investing most of its mounting cash pile in financial markets.
The report goes onto say that the case of Apple is just one example of how multinational corporations have collectively come to embrace Wall Street’s maxim of shareholder value, leading to a global ‘race to the bottom’.
They conclude that corporations rather than hoarding cash in offshore accounts should be more socially minded, paying a fair share of tax, paying living wages, and investing in research and development to directly create value in the real economy.
Find out which companies rank worst in our company tax rankings.
This story has been added to our corporate database. The database powers all our live product guides, giving the score for each company on our rankings tables. Find out more about how we rate companies.