Good citizen incentive for Corporations

Economy
1

Instead of lowering corporate tax rates for all companies just determine a set of criteria for a corporate good citizen status.

Companies that achieve this could eligible for lower taxes and any dividends paid to shareholders could also be tax exempt.

For example a corporate good citizen company would probably need to be a good employer and definitely not need public funds diverted to fix environment or health issues caused by their actions.

Other criteria could be decided that may include transparency, fair dealing with customers, executive remuneration, staff satisfaction and retention.

2

The problem is how wildly arbitrary this proposal is.

For example, who are the people who are determining the set criteria and what keeps this policy from being abused?

3

I fully understand your reservations regarding this but that could apply to most policies. We definitely do not want it to be influenced by corporate lobbyists. We could vote on it. Or set up a panel of representatives. It would make market forces work for the good of the people.