scholarly journals CSR and tax avoidance: A review of empirical research

2021 ◽  
Vol 18 (2) ◽  
pp. 20-39
Author(s):  
Jost Kovermann ◽  
Patrick Velte
Keyword(s):  
Literature Review ◽  
Empirical Research ◽  
Tax Avoidance ◽  
Socially Responsible ◽  
Csr Reporting ◽  
Bidirectional Relationship ◽  
Quantitative Results ◽  
Stable Association ◽  
Tax Payments ◽  
Corporate Social

This article is a literature review that covers quantitative empirical research on the association between corporate social responsibility (CSR) and corporate tax avoidance. We conduct a structured literature review and evaluate the empirical-quantitative results with regard to the CSR–tax avoidance link and vice versa. The association between CSR and tax avoidance is both theoretically and empirically ambiguous. However, the majority of studies finds a negative association between CSR and tax avoidance. Nevertheless, results are highly dependent on measurement of the respective constructs and other marginal conditions. Comparability of recent research on the issue is in particular limited due to heterogeneous CSR and tax avoidance metrics and due to a potentially bidirectional relationship. Results imply that there is not necessarily a stable association between CSR performance, as measured by CSR scores or ratings, CSR reporting, and a firm’s tax practices. Thus, socially responsible investors have to make a decision about whether they are prepared to invest in firms that have high CSR scores and strong CSR performance while aggressively avoiding taxes. Investors who perceive tax payments as part of a firm’s responsibility towards society, have to select their investments with great care, as CSR scores and CSR reporting are of only limited informative value with regard to tax avoidance

scholarly journals Effect of Corporate Social Responsibility on Tax Avoidance in China

2021 ◽  
Vol 8 (9) ◽  
pp. 72-75
Author(s):  
Tong Chen ◽  
◽  
Maisarah Mohamed Saat ◽  
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Tax Avoidance ◽  
Effective Tax Rate ◽  
Socially Responsible ◽  
Tax Rate ◽  
The Public ◽  
Chinese Listed Companies ◽  
Aggressive Tax Avoidance ◽  
Corporate Social

Corporate social responsibility (CSR) has aroused heated discussion in recent years. The public generally believe that the enterprises with good CSR performance will not be involved in aggressive tax avoidance issues. However, as several famous socially responsible technology companies were found to be involved in aggressive tax avoidance, the association between those two variables has been doubted. This paper analyzes the effect of CSR on tax avoidance with the evidence of Chinese listed companies from 2016 to 2020. The finding is that good CSR performance leads to an increase in effective tax rate. In other words, the higher the CSR report score, the higher tax payment and the lower tendency in tax avoidance.

scholarly journals Do chief sustainability officers and CSR committees influence CSR-related outcomes? A structured literature review based on empirical-quantitative research findings

2020 ◽  
Author(s):  
Patrick Velte ◽  
Martin Stawinoga
Keyword(s):  
Corporate Governance ◽  
Literature Review ◽  
Empirical Research ◽  
Quantitative Research ◽  
Research Field ◽  
Management Control ◽  
Csr Reporting ◽  
Upper Echelons Theory ◽  
Research Perspectives ◽  
The Impact

AbstractAlthough an increasing amount of empirical research has been linked to the impact of management control and governance on corporate social responsibility (CSR) issues since the financial crisis of 2008/09, heterogeneous results have characterised this research field. Regarding the group level of corporate governance, the efficacy of board committees (e.g., audit, compensation or CSR committees) has been included in recent research designs. However, analyses of corporate governance at the individual level are related to the effects of top management members [e.g., chief executive officer (CEO), chief financial officer (CFO) or chief sustainability officer (CSO)] on CSR outcomes. This paper aims to convey a detailed understanding of sustainable management control’s impact as CSR-related board expertise. In more detail, we focus on the influence of both CSR committees and CSOs on three CSR measures mainly analysed in empirical-quantitative research: (1) CSR reporting; (2) CSR assurance (CSRA); and (3) CSR performance. We motivate our analysis with increased relevance from practical, regulatory and research perspectives, and we employ a systematic literature review of the symbolic vs. substantive effects of sustainability-related board composition. Based on our theoretical model (legitimacy theory, stakeholder theory and upper-echelons theory), we selected 48 quantitative peer-reviewed empirical studies on this research topic. Our analysis shows that CSR committees positively influence CSR reporting and performance. Thus, there are indications that the implementation of a CSR committee is not a symbolic act, but instead substantively contributes to CSR activities. However, in light of inconclusive empirical research results and a lack of studies that have analysed CSO-related effects, a notable research gap has been identified. Moreover, we note the main limitations of prior research in this review and develop an agenda with useful recommendations for future studies.

scholarly journals Corporate social responsibility review

2015 ◽  
Vol 13 (1) ◽  
pp. 715-723 ◽  
Author(s):  
Edmundo R. Lizarzaburu ◽  
Jesús del Brío
Keyword(s):  
Corporate Social Responsibility ◽  
Literature Review ◽  
Social Responsibility ◽  
Significant Role ◽  
Research Paper ◽  
Special Focus ◽  
Substantial Evidence ◽  
Socially Responsible ◽  
Core Elements ◽  
Corporate Social

This research paper represents a literature review of corporate social responsibility (CSR), as it has evolved and their use and impact in several countries. As a consequence of competitive markets, several entities must endeavor to reveal a picture of themselves as highly socially responsible enterprises. The increment in academic and practitioner interest in “Corporate Social Responsibility (CSR) has led the development of a set of definitions regarding the concept and their application” (Jamali and Mirshak 2007). The term is not a new concept (Taneja, Taneja and Gupta, 2011) it was developed since 1950´s. Nowadays, several literature presents substantial evidence that CSR activities can play a significant role in enhancing a firm’s value (Mahfuja, 2013). In this scenario, the following paper examines the broad progress of the ideas behind the concept though its origins and evolution in a country focus approach, practices implementation and literature available from different authors over the time. Also, we outline a set of core elements that many scholars associate this term with and finally we develop a special focus towards the stakeholders approach among all theories available on this matter.

scholarly journals The CSR and greenwashing concepts knowledge and perceptions among employees of Polish organizations – a pilot study

2021 ◽  
Vol 2021 (154) ◽  
pp. 202-2015
Author(s):  
Bartosz ORZEŁ ◽  
◽  
Radosław WOLNIAK ◽  
Keyword(s):  
Corporate Social Responsibility ◽  
Pilot Study ◽  
Social Responsibility ◽  
Business Processes ◽  
Socially Responsible ◽  
Csr Reporting ◽  
Interview Method ◽  
Research Gap ◽  
Survey Interviews ◽  
Corporate Social

Purpose: The involvement of enterprises in corporate social responsibility (CSR) reporting is one of the most important aspects of contemporary business ethics. The purpose of the study is to examine the perception and knowledge of employees who work in enterprises declaring and to record their observations in case of CSR, its reporting and greenwashing phenomenon. Design/methodology/approach: The article presents a pilot study. A partially categorized interview method was used. The interview was divided into three parts: Part I – Employee satisfaction with work in an organization that declares to act socially responsible. Part II is connected to an employee's view of the corporate social responsibility of the organization in which he works. Part III – the concept of corporate social responsibility and greenwashing. Additionally the survey was conducted. All data was collected and conclusions were drawn. The research sample consisted of 10 people who were interviewed and among whom a survey was conducted. All respondents work in enterprises that declare and report corporate social responsibility. Findings: The vast majority of employees of enterprises are aware of issues related to CSR reporting. They also know the concept of greenwashing. However, the soft aspects related to informing employees about CSR and reporting are problematic. Research limitations/implications: The main limitation of this paper is research sample, which was 10 respondents/participants of survey/interviews. However, it should be remembered that this is a pilot study that is to initiate research on a larger scale. Practical implications: The results of the study proposed in the article, which would be conducted on a larger scale, may provide a picture of the insights of employees directly involved in the business process declared as socially responsible. This may allow determining the most important factors for the organization, which determine the satisfaction and commitment to work of people employed in socially responsible enterprises. Also their work efficiency, commitment to building organizational culture and conviction to the values well-established in the company can be improved Originality/value: On the basis of the literature analysis, it can be noticed that research on the perception of CSR mainly relates to building the non-financial value of enterprises or consumer perceptions/attitudes. On this basis, a research gap was identified in the field of knowledge and CSR perception and job satisfaction of employees actively participating in socially responsible business processes or CSR reporting

scholarly journals Tax Evasion, Corporate Social Responsibility and National Governance: A Country-Level Study

2021 ◽  
Vol 13 (20) ◽  
pp. 11166
Author(s):  
Tânia Menezes Montenegro
Keyword(s):  
Tax Evasion ◽  
Tax Avoidance ◽  
Mediating Effect ◽  
Reputational Risk ◽  
Csr Reporting ◽  
Country Level ◽  
Environmental Disclosures ◽  
Corporate Social ◽  
The Relationship ◽  
Significant Support

This study uses a sample of 25 OECD countries to examine the association between CSR, national governance and tax evasion at the country level. The interaction between country-level governance and CSR relative to tax avoidance is also explored. The findings suggest that neither the ESG dimensions nor the overall CSR measure are significant determinants of tax evasion at the country level. In contrast, national governance quality is significantly and negatively related to tax evasion. Significant support is also found for the mediating effect of national governance on the association between CSR and tax evasion: in countries with weak national governance, CSR and country-level governance are substitutes; in countries with strong national governance, CSR reporting (in particular, environmental disclosures) seems to be used as a cosmetic and compensatory tool for firms to mitigate the reputational risk and public concern arising from tax evasion activities. The findings are theoretically and practically relevant as they underscore not only the importance of national governance in mitigating tax evasion but also the relevance of the mediating effect of national governance on the relationship between CSR and tax evasion. The evidence highlights the need for policymakers in countries with strong national governance to design new/strong anti-tax avoidance regulations.

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.

scholarly journals Information Sharing Strategies in the Social Media Era: The Perspective of Financial Performance and CSR in the Food Industry

Information ◽  
2020 ◽  
Vol 11 (10) ◽  
pp. 463
Author(s):  
Magdalena Mądra-Sawicka ◽  
Joanna Paliszkiewicz
Keyword(s):  
Food Industry ◽  
Growth Strategy ◽  
Share Price ◽  
Socially Responsible ◽  
Financial Measures ◽  
Market Capitalization ◽  
Csr Reporting ◽  
The Social ◽  
Corporate Social ◽  
Profitability Ratios

This paper aims to identify financial measures that are related to Corporate Social Responsibility (CSR) involvement activities. The study concerns the food industry, in which clients, as well as stakeholders, increasingly appreciate socially responsible companies, which could be a crucial factor for future growth strategy. An analysis was made on a sample of 448 food companies from 50 countries in 2009–2020. As a financial measure for CSR assessment, we used profitability ratios, dividend payout ratio, price-to-earnings ratio and market capitalization. The results confirmed that CSR reporting was a crucial division that differentiated companies from the perspective of profitability, OE, market capitalization, and share price. The CSR practices that are realized and published in reports become an important signal for investors that the company has a good financial situation and is able to invest in CSR without reducing its performance.

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