Ever since the birth of WikiLeaks, almost anything and everything is under the threat of coming under the scanner.
Ever since the cablegate and exposing of many scandals has occurred, it has had many positive impacts. One of them being, the government has no option than to keeping any kind of corruption at bay. Politicians have to practice ‘political transparency and honesty’. The cablegates came down heavily on all inappropriate and corrupt activities being carried on within the American Government.
What is cablegate?
Leak of the United States diplomatic cables is commonly known as Cablegate. This happened in 2010, when WikiLeaks published a series of secret US diplomatic cables that contained classified information that include war documents, videos, and much more.
This had a severe impact on the American government and economy. It also had many implications on the media and journalism reached a completely new league altogether. Nothing less than news leaks and scandals seemed to appease the general public.
WikiLeaks and Cablegate also played an important role in the business sector.
What was the impact of Cablegate on the businesses?
It is simple, bigger the business, more is the money. And more the money, the more efforts are taken to try and save on the taxes. So once WikiLeaks started doing what they do best, many big businesses, big banks and big names came under scanners.
When WikiLeaks released some cached information from a major Swiss bank, it unearthed huge sums of money that were tucked away in the Cayman Islands. This was mainly hidden from the tax authorities and various jurisdictions. This made the HBSwiss trading even more profitable.
While there is nothing illegal about keeping money under trust based out of Cayman Island. What is to be noted is this allowed the wealthy people to avoid paying taxes on the profits they made on the investments from those trusts. Officially the funds are from Cayman Island, and the profits can be distributed to the beneficiaries of the trust.
When WikiLeaks and Cablegate came into action, suddenly the whole world was aware of this simple manipulation of big businesses, thus putting them under scanner. The banks involved, the corporate sector and others were blissfully unaware of the net.
In no time, the corporate sector wised up, and acted upon it. Many other exposures of various banks and corporate manipulations have inevitably led to the one single conclusion of sizing down.
Whether one talks about the US government or even the big businesses of the United States, it has become evident that it is easier to deal with internals, who share the same motto and have the same idea than deal with outsiders. Dealing with outsiders comes along with their own share of conflicts and effects on the business.
Sizing down has come up as a practical option, using a simple logic. Lesser people involved leads to lesser chances of information being leaked out. With fewer people involved sharing the same motto, is easier to deal with when businesses are concerned.
This eventually will lead to the demolishing of big banks, big businesses or anything big. Cablegate and WikiLeaks affected big names in a big way.