If smuggling drugs across borders is bad, is smuggling profits across borders through abusive transfer pricing also bad? If tax evasion out of one country is harmful, is the inflow of tax-evading money into another also harmful? If money laundering by terrorists is dangerous, is the use of similar techniques by companies dangerous?
More than at any time in capitalism’s history, our economic system is beset by the tension between what is legal, what is ethical and what serves the common good. This tension points to a fundamental question: which should come first for the global capitalist – maximising profits or pursuing lawful and just business transactions?
See full Article (paid subscription required). Also see the World Bank Money Laundering Cycle.
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