Do Socially Responsible Firms Pay More Taxes?

2015 ◽  
Vol 91 (1) ◽  
pp. 47-68 ◽  
Author(s):  
Angela K. Davis ◽  
David A. Guenther ◽  
Linda K. Krull ◽  
Brian M. Williams
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Empirical Studies ◽  
Ordinary Least Squares ◽  
Data Availability ◽  
Tax Rates ◽  
Socially Responsible ◽  
Effective Tax Rates ◽  
Tax Payments ◽  
Corporate Social

ABSTRACT We investigate the relation between corporate tax payments and corporate social responsibility. Because existing theory and empirical studies find inconsistent evidence on the relation between these constructs, we investigate whether the two activities act as complements or substitutes. We estimate the relation between measures of corporate social responsibility and (1) the amount of corporate taxes paid, and (2) the amount invested in tax lobbying activities using both ordinary least squares and a system of simultaneous equations. We find consistent evidence that corporate social responsibility is negatively related to five-year cash effective tax rates and positively related to tax lobbying expenditures. Our evidence suggests that, on average, corporate social responsibility and tax payments act as substitutes. Data Availability: Data are available from sources identified in the paper.

Is Earnings Quality Associated with Corporate Social Responsibility?

2012 ◽  
Vol 87 (3) ◽  
pp. 761-796 ◽  
Author(s):  
Yongtae Kim ◽  
Myung Seok Park ◽  
Benson Wier
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Earnings Management ◽  
Financial Reporting ◽  
Data Availability ◽  
Socially Responsible ◽  
Financial Reports ◽  
Top Executives ◽  
Accruals Quality ◽  
Corporate Social

ABSTRACT This study examines whether socially responsible firms behave differently from other firms in their financial reporting. Specifically, we question whether firms that exhibit corporate social responsibility (CSR) also behave in a responsible manner to constrain earnings management, thereby delivering more transparent and reliable financial information to investors as compared to firms that do not meet the same social criteria. We find that socially responsible firms are less likely (1) to manage earnings through discretionary accruals, (2) to manipulate real operating activities, and (3) to be the subject of SEC investigations, as evidenced by Accounting and Auditing Enforcement Releases against top executives. Our results are robust to (1) controlling for various incentives for CSR and earnings management, (2) considering various CSR dimensions and components, and (3) using alternative proxies for CSR and accruals quality. To the extent that we control for the potential effects of reputation and financial performance, our findings suggest that ethical concerns are likely to drive managers to produce high-quality financial reports. Data Availability: Data used in this study are available from public sources identified in the study.

The impact of corporate social responsibility on employee performance and cost

2015 ◽  
Vol 14 (3) ◽  
pp. 262-284 ◽  
Author(s):  
Li Sun ◽  
T. Robert Yu
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Employee Performance ◽  
Labor Cost ◽  
Ordinary Least Squares ◽  
Least Squares Regression ◽  
Socially Responsible ◽  
Content Type ◽  
Corporate Social ◽  
The Impact

Purpose – The purpose of our paper is to empirically examine the conjectures, which prior literature suggests, that employees work more productively in socially responsible companies and employees are willing to work for less when they work for these companies. Design/methodology/approach – This study uses ordinary least squares regression to examine the relationship between corporate social responsibility (CSR) and employee performance and between CSR and employee cost. Further, 2SLS is used to address the endogeneity issue. Findings – The results indicate a positive relation between CSR and employee performance, suggesting that employees in socially responsible companies generate better operating performance than their peers in less socially responsible companies. Findings also reveal that socially responsible companies incur higher labor cost. Research limitations/implications – First, the CSR ratings constructed by KLD Inc. are an approximate measure of CSR performance. Better CSR measures may yield stronger results. Additionally, the sample firms in our study are relatively large firms. Caution needs be exercised when readers generalize these conclusions. Finally, this sample only consists of public firms. Whether these conclusions hold in private firms remains unknown. The above issues can be investigated in future studies. Practical implications – The findings of our study should interest managers who contemplate engaging in socially responsible activities, investors and financial analysts who assess firm performance and policymakers who design and implement guidelines on CSR programs. Originality/value – This is the first paper that directly tests the association between CSR and employee performance and cost. Thus, this study contributes to the CSR literature by offering evidence to show a positive effect of CSR on employee performance. It also contributes to the management accounting literature.

scholarly journals PENGUNGKAPAN CORPORATE SOCIAL RESPONSIBILITY (CSR) SEBAGAI SARANA LEGITIMASI: DAMPAKNYA TERHADAP TINGKAT AGRESIVITAS PAJAK

2016 ◽  
Vol 4 (2) ◽  
Author(s):  
Dwi Ratmono ◽  
Winarti Monika Sagala
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Tax Rates ◽  
Effective Tax Rates ◽  
Corporate Social

Abstrak: Pengungkapan Corporate Social Responsibility (Csr) Sebagai Sarana Legitimasi: Dampaknya Terhadap Tingkat Agresivitas Pajak. Berdasar teori legitimasi, terdapat dugaan bahwa perusahaan menggunakan pengungkapan corporate social responsibility (CSR) dalam rangka menjaga citra (image) di mata masyarakat. Penelitian ini bertujuan untuk menguji pengaruh pengungkapan CSR  terhadap   agresivitas pajak. Hipotesis yang diajukan adalah pengungkapan CSR berpengaruh negatif terhadap agresivitas pajak dalam rangka menjaga citranya.  Penelitian  ini  bertujuan menguji generalisasi temuan  Lanis dan   Richardson (2012) dalam konteks Indonesia.  Sampel terdiri atas  perusahaan non-keuangan yang terdaftar di BEI pada tahun 2011-2013 Hasil  penelitian menunjukkan  bahwa  semakin  rendah  tingkat pengungkapan   CSR suatu   perusahaan,   semakin   tinggi   tingkat   agresivitas pajaknya. Hasil ini memberikan dukungan empiris untuk teori legitimasi bahwa perusahaan selalu berusaha mendapat dukungan dari lingkungan institusionalnya. Kata kunci: pengungkapan CSR, agresivitas pajak, effective tax rates, legitimasi

scholarly journals Effect of macroeconomic business environment on the development of corporate social responsibility in Baltic Countries and Slovakia

2018 ◽  
Vol 9 (3) ◽  
pp. 477-492 ◽  
Author(s):  
Emilia Krajnakova ◽  
Valentinas Navickas ◽  
Rima Kontautiene
Keyword(s):  
Corporate Social Responsibility ◽  
Statistical Analysis ◽  
Social Responsibility ◽  
Value Added ◽  
Secondary Data ◽  
Business Environment ◽  
Data Availability ◽  
Socially Responsible ◽  
Baltic Countries ◽  
Corporate Social

Research background: Fluctuations in economic activity forced companies to change the traditional methods of organization and management and to search for new tools, knowledge, resources and competences in order to strengthen their positions. This has particularly intensified debates on corporate social responsibility (CSR) not only between business people, but also between pieces of research,  industry leaders and government representatives. The ongoing global ecologic crisis quickened discussions about how the alternation of macroeconomic business environment influences the development of CSR. Purpose of the article: The aim of this paper is to investigate how the changes in macroeconomic business environment influence the development of socially responsible activities in Baltic Countries and Slovakia. Methods: A statistical analysis of secondary data was used in order to reanalyse the data for the purpose of gaining new insights. The objectives of statistical analysis in this paper were twofold: firstly, to identify the challenges in macroeconomic business environment; secondly, to explore the development of socially responsible activities in different countries. The research period covered the years 2006–2016. The choice of this period is determined by data availability. Findings & Value added: The authors found that economic conditions may diversely affect the development of different dimensions of CSR. Even in unfavourable macroeconomic conditions companies continue to be involved in socially responsible actions because of long-run CSR benefits. The analysis is useful at an international level because it justified the development of socially responsible businesses in Estonia, Latvia, Lithuania and Slovakia, and has provided an opportunity to assess the tendencies of CSR development during the different period of economic cycle.

La legislación tributaria venezolana como promotora de la responsabilidad social empresarial

Oikos ◽  
2014 ◽  
Vol 16 (33) ◽  
pp. 53
Author(s):  
Ana Cecilia Chumaceiro Hernández ◽  
Judith Josefina Hernández de Velazco
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Tax Law ◽  
Socially Responsible ◽  
Palabras Clave ◽  
Interpretative Approach ◽  
Corporate Social

aVenezuelan Tax Law as a Promoter of Corporate Social Responsibility   RESUMEN El presente artículo tiene por objetivo disertar sobre los dispositivos contenidos en la legislación tributaria venezolana que actúan como promotores de la responsabilidad social empresarial (RSE), para ello se utilizó el paradigma Cualitativo, bajo un enfoque hermenéutico – interpretativo, cuyo método fue análisis de contenido. En tal sentido se han observado los aspectos, elementos y mecanismos que se encuentran en la LISLR, LIVA y LOCTI que fomentan, incentivan o coadyuvan la RSE; finalmente se plantearan lineamientos para la aceptación de una nueva cultura de RSE con dimensión tributaria. Considerando, que dentro de la legislación tributaria no existen dispositivos específicos que promuevan la RSE, y, ello debe ser tomado en cuenta por el legislador para modificar ciertas normas y crear el incentivo necesario para que las empresas sean de forma congruente socialmente responsables. Palabras clave: legislación tributaria, empresa, promoción, responsabilidad social empresarial. ABSTRACT The objective of this study is to explore regulatory provisions from Venezuelan tax law as promoters of corporate social responsibility (CSR). For the methodological analysis of content, the study uses the qualitative paradigm and a hermeneutical-interpretative approach. The research observes different elements and mechanisms from LISLR, LIVA and LOCTI which encourage and contribute to corporate social responsibility. The study also proposes guidelines for the acceptance of a CSR culture from a tax dimension. The fact that there are no regulatory provisions within the Venezuelan tax law needs to be taken into account by legislators in order to amend certain norms and create the necessary incentives for companies to be socially responsible. Keywords: tax law; companies; encouragement; corporate social responsibility. Este trabajo es el resultado de investigaciones que se desarrollan en la línea “Responsabilidad Social, Empresa y Estado” del Centro de Estudios e Investigaciones Socioeconómicas y Políticas (CEISEP-UNERMB). 

scholarly journals Does CSR Activity Amount to Socially Responsible Management?

2021 ◽  
Author(s):  
M. John Foster
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Local Community ◽  
Annual Reports ◽  
Socially Responsible ◽  
Responsible Management ◽  
Exploratory Investigation ◽  
Research Questions ◽  
The Uk ◽  
Corporate Social

AbstractIn essence firms or companies are usually thought to exist to make products for or provide services of some sort to third parties, other companies or individuals. The philosophical question which naturally arises then is ‘to the benefit of whom should a firm’s activities be aimed?’ Possible answers include the owners of the firm, the firm’s employees or wider society, the firm’s local community or their host nation. It is because of firms’ location within a wider society that the issue of corporate social responsibility arises. The issue is do they contribute in a positive way to the fabric of society. In this paper we conduct an exploratory investigation whose research questions, broadly, are whether there is public evidence of corporate social responsibility activity by firms listed in the UK and to what extent, if any, such activities may amount to genuinely socially responsible management by the firms. We examined the most up to date annual reports of a split sample of 36 firms listed in the FTSE 350. The short answers to the two research questions above are: to some degree and no by some margin, based on data from the sample firms.

scholarly journals Corporate social responsibility and firm performance in South Africa

2014 ◽  
Vol 45 (1) ◽  
pp. 1-12 ◽  
Author(s):  
K. Demetriades ◽  
C. J. Auret
Keyword(s):  
Regression Analysis ◽  
Corporate Social Responsibility ◽  
Firm Performance ◽  
Social Responsibility ◽  
Social Performance ◽  
Sample Period ◽  
Socially Responsible ◽  
Responsible Investing ◽  
The Individual ◽  
Corporate Social

Corporate Social Responsibility (CSR) can be viewed from two different perspectives: that of the business; and that of the individual investor (Socially Responsible Investing, SRI). In this study regression analysis as well as an event study was used to examine the link between CSR and firm performance. The results suggested that in the short-term there were no significant price effects on the SRI shares. In contrast, the returns of SRI portfolios over the sample period seemed to be superior to those of conventional firms. The regression analysis found that generally the SRI coefficients were insignificant; however using one of the models during the fifteen year sample period, SRI constituents attained a ROE that was 11.18% higher (as well as a ROA that was 1.824% lower) than conventional firms. When the period was restricted to 2004-2009 it was found that social performance was positively - and sometimes significantly - correlated with ROE.

scholarly journals CORPORATE SOCIAL RESPONSIBILITY AS A KEY OF STABLE DEVELOPMENT: ANALYSIS OF THE ENTERPRISES OF OIL AND GAS INDUSTRY

2018 ◽  
pp. 145-154
Author(s):  
Yevhen Ionin ◽  
Liliia Tarasenko
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Social Needs ◽  
Socially Responsible ◽  
Gas Industry ◽  
Modern Development ◽  
Business Entities ◽  
Corporate Social

Social responsibility of business takes a special place in the terms of modern development strategy of the economy of Ukraine. This responsibility suggests such direction of the enterprise activity, which takes into account not only the personal interests of the company, but also the needs of society. The continuation of European integration processes, the exit of companies into international markets require from the business entities appropriate openness and transparency, coverage of the goals of achieving the goal of the enterprise, the tools at which such a goal is achieved. The multidimensional nature of links, which are arising during the operational activity, leads to the existence of significant impact on the internal and external environment of the enterprise. Issues of corporate social responsibility of public-interest enterprises, which, in particular, are part of the oil and gas industry, are of particular relevance. The article analyses the current state of carrying out socially responsible activity at foreign and domestic enterprises of the oil and gas industry. The components of corporate social responsibility and their impact on the enterprise` functioning and on satisfaction of social needs are investigated. The socially responsible activity has positive nature, however, at the same time, there are certain barriers of the strategy` implementation within the framework of the mentioned activity, among which financing is a key issue that requires the enterprise to properly plan and analyse the costs of socially responsible doing business. The need for planning and evaluating corporate social responsibility programs is highlighted in the article. Using the example of gas transportation enterprise, the SWOT-analysis as an instrument of obtaining information for justified decision-making is reviewed.

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