In 2010 ActionAid undertook extensive and detailed research into the operations of one multinational company (SABMiller) and its operations in six African countries – specifically zeroing in on one African country (Ghana). Using published financial information, interviews with government officials and undercover research, ActionAid sought to show how the world’s second-largest beer company was avoiding tax in Africa. It published a report of its findings23 which received media coverage in the UK and internationally.The report called on SABMiller to take a responsible approach to tax, understand and disclose the impact of tax planning, and be more transparent about financial information.To accompany the report, ActionAid produced eye-catching campaign materials bearing a simple slogan (for example `SchtopTax Dodging’ beer mats playing on the name of a SABMiller beer) and launched an email action on their website.To capture the public’s imagination, ActionAid also injected a human element to the story.They introduced campaigners, for example, to Marta Luttgrodt who runs a small beer stall in the shadow of the brewery that produces the beer and pays a flat US$47 a year in tax while the brewery next door owned by a subsidiary of SABMiller pays no tax at all.
At the time of writing, it was too early to say what impact this campaign will have had on SABMiller. Although the company reacted negatively to ActionAid’s report, a negative reaction does
not mean that the report will have had no impact. Beyond SABMiller specifically, it is likely that the report will impact on the private sector generally in some way, as other companies will be concerned to avoid a similar targeted investigation of their own operations. Consequently, it is conceivable that the ActionAid investigation into one company may contribute to a change in thinking on tax and corporate social responsibility among UK-listed multinationals in general. It could also have a knock-on effect on bodies that regulate or oversee UK-listed multinationals’ working standards and practices such as the OECD, the EU, and the UK government.