scholarly journals Between ethics and law

2019 ◽  
Vol 14 (1) ◽  
pp. 2-11 ◽  
Author(s):  
Lara Carminati
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Tax Avoidance ◽  
Business Practices ◽  
Mutual Aid ◽  
Broad Perspective ◽  
Content Type ◽  
The Uk ◽  
Corporate Social ◽  
Economic Globalisation

PurposeThe purpose of this paper is to offer a critical and broad perspective on how transnational companies (TNCs) behave in the global context, focussing its attention on the controversial issue of tax avoidance in the UK. It pursues this aim by taking into account not only economic globalisation, mobility of capital and tax havens but also ethics and corporate social responsibility.Design/methodology/approachThis paper seeks to provide an interdisciplinary viewpoint drawing not only from well-established scholarly literature but also from real cases and evidence, such as the scandals involving corporate giants, such as Starbucks, Google and Amazon in the UK.FindingsThis paper highlights the fundamental interplay and mutual aid of ethics and international laws, underlining the increasing importance of corporate social responsibility principles in today’s business practices. However, it also emphasises the need of reinforcing these principles with either regional or universalistic legal approaches to tackle TNCs’ misconduct in the international arena.Practical implicationsThis paper suggests that by establishing and enforcing international business laws, increasingly aligned with ethical principles, the gap between ethics and legislation can be consistently bridged. Hence, TNCs’ behaviour could be more efficiently controlled.Originality/valueThe paper contributes to the literature on modern economic globalisation by providing a comprehensive and integrative perspective on TNCs’ behaviour, accounting for the interplay of socio-ethical, legal and business principles.

Relationship between corporate social responsibility and tax avoidance: international evidence

2019 ◽  
Vol 15 (2) ◽  
pp. 244-257 ◽  
Author(s):  
Tao Zeng
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Tax Avoidance ◽  
Content Type ◽  
Tax Rate ◽  
Country Level ◽  
International Setting ◽  
Corporate Social ◽  
Statutory Tax Rate ◽  
The Relationship

Purpose This paper aims to examine the relationship between corporate social responsibility (CSR) and tax avoidance as well as how CSR and country-level governance interplay in affecting tax avoidance in an international setting. Design/methodology/approach This paper is an empirical work using listed companies from 35 countries and relying on several proxies for corporate tax avoidance activities including the difference between the statutory tax rate and the annual effective tax rate, the book-tax difference and the residual book-tax difference. Findings This study finds strong evidence that CSR is positively related to tax avoidance. It also finds that in countries with weak country-level governance, firms with higher CSR scores engage in less tax avoidance, implying that CSR and country-level governance are substitutes. Originality/value This paper is the first study that examines the relationship between CSR and tax avoidance in an international setting with different legal and institutional environment.

The impact of ownership structure on corporate tax avoidance with corporate social responsibility as mediating variable

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Anissa Dakhli
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Tax Avoidance ◽  
Institutional Ownership ◽  
Corporate Tax ◽  
Data Set ◽  
Content Type ◽  
Corporate Social ◽  
The Impact ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the direct and indirect relationship between institutional ownership and corporate tax avoidance using corporate social responsibility (CSR) as a mediating variable. Design/methodology/approach This study uses panel data set of 200 French firms listed during the 2007–2018 period. The direct and indirect effects between managerial ownership and tax avoidance were tested by using structural equation model analysis. Findings The results indicate that institutional ownership negatively affects tax avoidance. The greater the proportion of the institutional ownership, the lower the likelihood of tax avoidance usage. From the result of the Sobel test, this study indicated that CSR partially mediates the effect of institutional ownership on corporate tax avoidance. Practical implications The findings have some policy and practical implications that may help regulators in improving the quality of transactions and in achieving more efficient market supervision. They recommend to the government to add regulations and restrictions to the structure of corporate ownership to control corporate tax avoidance in French companies. Originality/value This study extends the existing literature by examining both the direct and indirect effect of institutional ownership on corporate tax avoidance in French companies by including CSR as a mediating variable.

The effect of corporate social responsibility on earnings management and tax avoidance in Chinese listed companies

2019 ◽  
Vol 27 (4) ◽  
pp. 632-652 ◽  
Author(s):  
Haijing Liu ◽  
Hyun-Ah Lee
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Tax Avoidance ◽  
Listed Companies ◽  
Private Enterprises ◽  
Content Type ◽  
Listed Firms ◽  
Chinese Listed Companies ◽  
Corporate Social

Purpose This paper aims to verify the effect of corporate social responsibility (CSR) on Chinese listed firms’ earnings management and tax avoidance. Specifically, this study investigates whether government-guided CSR implementation indeed drives firms to behave in a responsible manner by constraining earnings management and tax avoidance. Design/methodology/approach The paper analyses a sample of Chinese listed companies that are confronted with the unique situation of CSR being developed at a rapid pace by government-led policy and regulation. The study further investigates whether the effect of CSR on earnings management and tax avoidance is different for state-owned and private enterprises by partitioning the sample into these two subgroups. Findings The findings of this study show that government-guided CSR could be effective in reducing the firms’ earnings management and tax avoidance, even though the effect is limited to state-owned enterprises. Originality/value This paper provides new evidence on the relation of CSR with earnings management and tax avoidance in the Chinese context and sheds light on the importance of differentiating between the state-owned and private enterprises when studying the corporate behaviors of Chinese firms.

Financial-tax reporting conformity, tax avoidance and corporate social responsibility

2020 ◽  
Vol 18 (3) ◽  
pp. 639-659
Author(s):  
Abdullah Alsaadi
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Tax Avoidance ◽  
Negative Consequences ◽  
Data Set ◽  
Content Type ◽  
Aggressive Tax Avoidance ◽  
Tax Reporting ◽  
Corporate Social ◽  
The Impact

Purpose This study aims to investigate the effect of financial-tax reporting conformity jurisdictions on the association between corporate social responsibility (CSR) and aggressive tax avoidance. Design/methodology/approach Using a sample comprising firms domiciled in Europe for the period 2008–2016, this study uses regression analysis to test the impact of financial-tax reporting conformity jurisdictions on the association between CSR and aggressive tax avoidance. Findings The empirical results show that there is a positive association between CSR and tax avoidance, and firms headquartered in low financial-tax reporting conformity jurisdictions are more likely to engage in CSR to hedge against the potential negative consequences of aggressive tax-avoidance practices as compared to firms domiciled in countries with high level of financial-tax reporting conformity. Practical implications This study confirms Sikka’s (2010, 2013) view of “organised hypocrisy” act committed by firms to cover their socially irresponsible activities of aggressive tax avoidance by engaging in CSR. Results have implication for various regulatory bodies and investors in that the type of financial-tax conformity does impact the link between CSR and tax avoidance, and based on that, CSR firms may engage in CSR to overcome any negative reactions that could be caused as a result of tax avoidance. Originality/value To the best of the author’s knowledge, this study is the first to investigate the impact of financial-tax reporting conformity jurisdictions on the association between CSR and aggressive tax avoidance. This study also contributes to the literature in that, it uses an alternative data set which offers a more objective assessment of CSR measure and covers multiple countries.

Authentic or cosmetic: stakeholders’ attribution of firms’ corporate social responsibility claims

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Claudel Mombeuil ◽  
Bin Zhang
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Relevant Literature ◽  
Research Approach ◽  
Business Practices ◽  
Manufacturing Companies ◽  
Content Type ◽  
Significant Difference ◽  
External Stakeholders ◽  
Corporate Social

Purpose To date, many firms tend to use corporate social responsibility (CSR) communication and marketing as a means to offset their irresponsible behaviors and unscrupulous business practices. Often time, they can easily get away with this in the context where the institutional settings are weak, and corporate social irresponsibility (CSIR) and corruption are widespread. The purpose of this study is to explore stakeholders’ attribution concerning CSR claims of four beverage manufacturing companies operating in America’s poorest country (Haiti) where CSIR and corruption remain widespread. This study also explores whether there are differences in demographic characteristics (e.g. gender, corporate affiliation and education) regarding stakeholders’ attribution of CSR claims of these companies. Design/methodology/approach Given the exploratory nature of this study, an inductive research approach (qualitative plus quantitative) and supported by an interpretive approach were used. Findings The overall results of this study show that internal (employees) and external stakeholders alike consider the CSR claims of these companies as “cosmetic,” with no significant difference in their affiliation. The results also show no significant differences in the age groups but significant differences in gender and level of education regarding stakeholders’ attribution of firms’ CSR claims. Originality/value By addressing firms’ CSR claims from the perspectives of internal and external stakeholders through means of a mixed methods approach, this study adds an important contribution to the relevant literature.

scholarly journals Corporate governance and corporate social responsibility synergies: evidence from New Zealand

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rashid Zaman ◽  
Muhammad Nadeem ◽  
Mariela Carvajal
Keyword(s):  
Corporate Governance ◽  
Corporate Social Responsibility ◽  
New Zealand ◽  
Social Responsibility ◽  
Stock Exchange ◽  
Business Practices ◽  
Content Type ◽  
Listed Firms ◽  
Responsible Business Practices ◽  
Corporate Social

Purpose This paper aims to provide exploratory evidence on corporate governance (CG) and corporate social responsibility (CSR) interfaces. Although there remains a voluminous literature on CG and CSR, very little effort has been put forward to explore the nature of this relationship. Design/methodology/approach Using interviews with Senior Executives of New Zealand Stock Exchange listed firms, this research assesses CG and CSR practices, identifies barriers for CG and CSR adoption and investigates the nature of the relationship between CG and CSR. Findings The results indicate a moderate level of CG and CSR practices, with a lack of resources and cost-time balance as common barriers for CG and CSR adoption. However, despite these barriers, we note that the majority of executives appreciate the increasing convergence between CG and CSR, and believe that a more robust CG framework will lead to more sustainable CSR practices. Originality/value These findings have important implications for managers and policymakers interested in understanding the CG-CSR nexus and promoting responsible business practices.

Corporate social responsibility and tax avoidance: the case of French companies

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Souhir Abid ◽  
Saîda Dammak
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Audit Quality ◽  
Tax Avoidance ◽  
Least Square ◽  
Socially Responsible ◽  
High Quality ◽  
Content Type ◽  
Aggressive Tax Avoidance ◽  
Corporate Social

Purpose The purpose of this paper is to shed light on the effect of tax avoidance on corporate social responsibility performance. It also investigates whether audit quality affects tax avoidance practices by socially responsible performance. Design/methodology/approach Based on a sample of French non-financial companies over the period 2005 to 2016, this paper uses panel data regressions. The authors apply generalized least square panel regression to overcome autocorrelation and heteroscedasticity problems. For further robustness, this paper runs instrumental variable regressions using the three-stage instrument variable method (three-stage least square). Findings The results show that firms with high CSR scores are more likely to engage in aggressive tax avoidance. The findings also show that firms audited by high-quality auditors are more likely to get involved in CSR for hedging against the potential consequences of aggressive tax avoidance practices. Research limitations/implications The findings are consistent with risk management theory, which suggests that firm’s hedge against any reputational risks that might arise from avoiding taxes by engaging more in CSR. Practical implications Results have implications for policymakers in that CSR firms audited by high-quality auditors may engage in CSR to overcome any negative reactions that could be caused as a result of tax avoidance. Thus, they need to be cautious about managers’ opportunistic behavior and enhance monitoring to enforce social compliance and to be tax compliant. Originality/value This paper extends the existing literature by examining the effect of audit quality on the relationship between CSR performance and corporate tax avoidance. Audit quality is deemed to be an important governance feature that is likely to constraint managerial opportunistic behaviors. Audit quality, along with CSR performance, are associated with a higher level of tax avoidance.

Corporate social responsibility practices and disclosures in Thailand

2019 ◽  
Vol 15 (3) ◽  
pp. 318-332 ◽  
Author(s):  
Panya Issarawornrawanich ◽  
Suneerat Wuttichindanon
Keyword(s):  
Factor Analysis ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Good Governance ◽  
Stock Exchange ◽  
Employee Relations ◽  
Business Practices ◽  
Content Type ◽  
Legal Frameworks ◽  
Corporate Social

Purpose This paper aims to investigate the patterns of corporate social responsibility (CSR) practices and disclosures of firms listed on the Stock Exchange of Thailand (SET). Design/methodology/approach A total of 43 CSR indices under the Securities and Exchange Commission’s nine CSR components were used to quantify the CSR disclosures. The nine CSR components are good governance, environment, consumer protections, fair business practices, human rights, labor standards, community and society, innovation and anti-corruption. The common patterns of the CSR disclosures were subsequently identified using factor analysis. Findings The factor analysis identified four domains of the CSR disclosures of the SET-listed firms: employee relations, environment, anti-corruption and philanthropic efforts. Importantly, an increasing number of Thai firms are now attaching greater significance to the employee relations aspect of CSR, as opposed to in the past. In addition, an increasing number of the Thai companies have either initiated or participated in the anti-corruption campaigns. Originality/value The research offers an insight into the current development in CSR practices and disclosures in Thailand, as compared to a decade ago. To that end, this research conducted a survey on the CSR disclosures in relation to the nine CSR components, and factor analysis was used to establish the patterns of CSR practices. The findings are of great use to regulators in formulating legal frameworks and strategies to engage companies in CSR and also provide further evidence on the CSR practices in an emerging economy. Furthermore, the findings offer businesses and industries a disclosure benchmark, against which firms decide on the nature and extent of CSR information to disclose in the annual statements.

Content in the context of welfare configurations: a comparative institutional analysis of self-reporting on corporate social responsibility

2019 ◽  
Vol 16 (4) ◽  
pp. 487-506
Author(s):  
Brita Backlund Rambaree
Keyword(s):  
South Africa ◽  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Emerging Economies ◽  
Institutional Arrangements ◽  
Welfare States ◽  
Socially Responsible ◽  
Content Type ◽  
The Uk ◽  
Corporate Social

Purpose The purpose of this paper is to examine corporate social responsibility (CSR) content in the context of four differing national institutional arrangements for welfare. An analysis is presented on how self-reported CSR differs in content across two western welfare states (the UK and Sweden) and two emerging economies in southern Africa (South Africa and Mauritius). Design/methodology/approach This paper is based on a qualitative content analysis of the CSR self-reporting of 40 companies. This involved 10 of the largest companies incorporated in four countries, namely, Sweden, the UK, South Africa and Mauritius. The content is categorised into community involvement, socially responsible production and socially responsible employee relations. For each category, an analysis is provided of the reported issues (the question of what), the geographic focus of reported issues (the question of where) and ways of working with these issues (the question of how), as well as the extent of reporting and level of reporting (the question of how much). Findings The study shows that companies place focus on aspects, issues and localities in ways that differ between countries and can be understood in relation to current institutional arrangements for welfare. The content of self-reported CSR can be both complementing and mirroring the welfare arrangements. Differences in self-reported CSR agendas are particularly evident between the two western welfare states on the one hand and the two emerging economies on the other, as these represent two distinct contexts in terms of welfare arrangements. Originality/value This paper contributes to research on the institutional embeddedness of CSR in three ways: first, by going beyond measures of country differences in terms of extent of CSR to consider differences in CSR content; second, by focusing on the social aspects of CSR and placing these differences in relation to welfare configurations; and third, by contributing with empirical findings on how CSR content differs across national settings and across the established/emerging economy divide.

scholarly journals Earnings management and corporate social responsibility: UK evidence

2018 ◽  
Vol 16 (2) ◽  
pp. 311-332 ◽  
Author(s):  
Yousf Almahrog ◽  
Zakaria Ali Aribi ◽  
Thankom Arun
Keyword(s):  
Corporate Social Responsibility ◽  
Content Analysis ◽  
Social Responsibility ◽  
Earnings Management ◽  
Cross Sectional ◽  
Content Type ◽  
Csr Disclosure ◽  
The Uk ◽  
Corporate Social ◽  
The Impact

Purpose The paper aims to re-interpret the role of corporate social responsibility (CSR) in limiting the extreme practices in earnings management (EM) by using evidence from large UK companies. Design/methodology/approach The study has used content analysis and disclosure index to measure the level of CSR. The authors measured EM based on discretionary accruals by using cross-sectional version of the modified Jones model. Findings The findings of this study reveal that companies with a higher commitment to CSR activities are less likely to manage earnings through accruals. Originality/value This study shed more light on the potential impact of CSR on earnings management in the context of the UK. Prior research on the impact of CSR on earnings management has used exclusively CSR scores, provided by CSR score indices. The manual measurement used in this study for CSR (disclosure index/content analysis) is considered to provide a more detailed and precise measure.

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