In the quest to determine Australia’s most notorious industry, it becomes evident that a company must excel in a wide array of negative behaviors to truly stand out. A combination of ineptitude, misconduct, selfishness, and arrogance is essential. This article explores which sectors lead the pack in these undesirable traits.
The Fossil Fuel Industry: A Leading Contender
Fossil fuel companies emerge as the frontrunners in the race for the most controversial industry. Their dominance is attributed not only to their substantial carbon emissions and climate-damaging exports but also to their adeptness at tax avoidance. These companies have successfully lobbied against strengthening the Petroleum Resource Rent Tax regime, resulting in Australia earning less from its offshore gas reserves than it did two decades ago, despite increased exports.
Moreover, many of these companies have been found guilty of legal violations, both domestically and internationally. Environmental breaches are common, and a history of wage underpayment further tarnishes their reputation. These factors position fossil fuel companies as strong candidates for the title of the most controversial industry.
Tech Giants: A Surprising Runner-Up
While tech companies such as X and Meta are often criticized for tax avoidance and their impact on social cohesion, they fall short of the fossil fuel industry’s level of misconduct. Their AI operations pose significant environmental costs, yet they have been less successful in distorting public policy. Unlike many Australian companies, they lack a substantial record of wage theft and do not benefit as extensively from government subsidies.
However, Google stands out with a poor record on wage underpayment and has faced fines for anti-competitive behavior, both in Australia and abroad, placing it among the upper echelons of controversial tech companies.
Media Moguls and Their Missteps
News Corp frequently garners criticism for its role in damaging social cohesion and distorting policy through culture wars and climate denialism. However, it is edged out by Seven West Media, which shares these traits but also suffers from a toxic workplace culture, wage underpayment, and a poor record on shareholder value. A decade ago, its shares were valued at 75 cents; today, they are worth less than 15 cents.
Despite its controversial practices, News Corp has maintained a strong performance on the US stock market, unlike Seven West Media, which has seen a decline in shareholder value.
The Defence Industry: A Mixed Bag
The defence sector benefits from taxpayer subsidies and influences public policy, yet lacks the comprehensive misconduct seen in other industries. French company Thales stands out for its manipulation of Defence bureaucrats, as revealed by the auditor-general’s study of the Benalla munitions factory contract. Austal, however, takes the lead as the worst defence company due to its involvement in a major scandal in the United States and a significant wage underpayment issue.
Banks and Their Persistent Issues
Australia’s banks are consistently competitive in the race for the worst industry. They have all engaged in anti-competitive behavior, legal violations, and wage underpayment scandals. While NAB made headlines with a $130 million wage underpayment, CBA and Westpac are the top contenders for the most controversial bank, thanks to their extensive money laundering breaches.
Although banks do not match the fossil fuel industry’s level of misconduct, primarily because they pay substantial taxes, they remain the worst customer-facing industry, surpassing even Coles and Woolworths.
Gambling Companies: A Singular Focus
Gambling companies, including online betting firms, Tabcorp, casino operators Star and Crown, and pokie manufacturer Aristocrat, focus their negative impact on social issues. Despite their significant social impact, they lack the breadth of misconduct seen in other industries, making them less competitive in this dubious race.
As we continue to explore corporate misconduct in Australia, the question remains: who will be awarded the inaugural Alan Bond Award for Corporate Misconduct? Stay tuned as we delve deeper into the all-round performers in this controversial arena.
