In Public Relations

Call it iPR. Apple faced accusations the company took clever offshore steps to avoid paying billions in taxes. Apple took smart steps before and during congressional testimony to prevent the story from turning too sour.

  • The Economist reported Apple released ahead of time a copy of testimony the company’s top person planned to give to a congressional subcommittee. Lesson:  During a crisis, deliver at a minimum the impression of transparency.
  • The Economist reported Apple pointed out it pays billions in taxes in America and may be the country’s biggest corporate taxpayer. Lesson:  Show you are meeting your responsibilities, making contributions and taking steps far beyond others, suggesting the spotlight should shine elsewhere.
  • We’ve heard no one assert Apple broke tax law. The New York Times reported Apple’s Timothy Cook testified the company pays “all the taxes we owe — every single dollar.” Lesson:  The best approach is to sometimes address the bottom line. You played by the rules of the game.
  • The Times reported some members of Congress described how they love Apple products. Lesson:  Call attention to the positive impact your business provided people. Your company changed lives or made them better.
  • The Times quoted Cook as saying, “The tax system handicaps American corporations in relation to our foreign competitors who don’t have such constraints on the free movement of capital.” Lesson:  We confront challenges. The playing field is not always level. We are still succeeding. Our success is your success. Gain sympathy instead of scorn.
  • Apple is proud to be an American company. Lesson:  Emphasize ties to your country, state, city or community. We’re on the same team. Let’s be proud of that and work together on improvements.
  • Apple talked about the tax system. Lesson:  Refocus the conversation on the system. You are not the problem. You want to be part of the solution. Don’t hate the player. Hate the game.

Anyone reading comments from readers realizes Apple did not win over everyone. Some readers believe the company is not fulfilling its responsibility and argue businesses are often the ones hiring lobbyists that help define the rules currently in place. Some readers wrote words such as “exploit,” “greed” and “fair share” and pointed out making cool products is not the real issue at hand.

But The Times pointed out how some senators originally critical of Apple struck a more upbeat tone during the hearing. Headlines included “In Disarming Testimony, Apple Chief Eases Tax Tensions” and “Torches and Pitchforks for I.R.S. but Cheers for Apple.”

iPR can end up slicing stories differently than predicted.

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