Small does not mean there is no impact, so do not wait till you are multinational corporation to realise you do not stand by what’s actually on your website.
I used to say to clients, “Do the right thing from the outset” because you get into a habit of thinking about risks to and by your business. And this will save you headache, money and friends! Yes, friends, because who will stand by you if everything you ever said turned out to be empty promises. People back YOU, your idea but because by default we trust others, when we are let down by someone who had a chance to change the course of actions, they turn their backs.
The impact is in what you do
I once sat in a training about climate change and a fellow attendee representing aviation industry felt very good about water refilling stations or recycling. That person was passionate, wanted doing the right thing which is why attended a course. But, there was something out of balance despite sincerity. And it was not his fault he did not realise that he is in a business of flying, not refilling water. And if you are in the business of flying, your impact is in sourcing fuel and burning fuel in addition to a sleuth of concerns over workers and their rights, purchasing of material, use of energy in buildings and waste. Refilling water stations are important for workers health, and they do save plastic, but alone they do not stop planes from burning fuel.
And so pay your dues
Telling others what to do is easy. How many times have you told your friends to just stop doing an addictive activity, like I don’t know, scrolling on social media. Does it go much harder when you try to share this wisdom with yourself? I bet it does.
And that’s exactly what I needed to do, apply my knowledge about running a business the world needs to myself. As a small business, with no staff, no offices, and no travel my number one impact would then be around regulations, in particular taxes.
The right tax is paid in the right place at the right time is my priority. And here is what I did:
- Learned about taxes in Poland.
- Realised it is more complex than anticipated and curled up in bed.
- Booked a call with an accountant.
- Set up a business that discloses income, expenses, pays the right taxes as per local laws.
As a freelancer, or rather, a person who wants to charge for services, I cannot ignore the fact that I can only function when society functions. Paying taxes, however many different types, in the jurisdiction I am in, is the right thing. These taxes go toward national health, toward infrastructure, toward services that one can trust and therefore build their business on.
And so today, I opened my business as a one (wo)man band. It has strings of numbers attached and those numbers will be proudly displayed on the invoices I will send to my clients.
To build legacy
The right tax is paid in the right place at the right time is one of the business goals set by Future Fit Business Benchmark.
They argue this goal is needed because:
- Though legal, tax avoidance strategies allow companies to circumvent paying their fair share. Losses due to tax avoidance cost an estimated $100-240 billion annually, representing 4-10% of global corporate income tax revenues. [140]
- Taxation is a key contributor to the public’s distrust of business. 38% of 7,600 people surveyed across the G20 countries were distrusting of business leaders about tax. [141]
- Both developed and developing countries are vulnerable to tax losses through profit shifting. Revenues from multinational companies are particularly important to government budgets in developing countries – where they represent 10% of total government revenues – compared to 5% in developed countries. [142]
And with that in mind, let’s all do the right thing.
Yours,
Karolina@between-natures.com