THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON TAX AVOIDANCE: A REVIEW OF SCIENTIFIC RESEARCH

Abstract

This paper explores the insights of researchers on the impact of corporate social responsibility on tax avoidance. In order to better understand how corporate social responsibility influences corporate behaviour in the context of tax avoidance, the researchers draw on a number of theories to explain this relationship: corporate culture, risk management, shareholders, stakeholders, agents and legitimacy. An analysis and synthesis of the literature reveals that some of these theories reveal a negative relationship between corporate social responsibility and tax avoidance, explaining it by the fact that socially responsible companies are less likely to avoid taxes in order to maintain their reputation and transparency, while others interpret the link as positive, in that social responsibility can be used as a means of hiding unethical behaviour, including aggressive tax avoidance, or that tax avoidance can be used to offset the increased operating costs incurred as a consequence of socially responsible activities. The results of the empirical studies carried out are also mixed. They vary depending on the market and context studied. Most studies have been carried out in the US and developing countries, while the European context has not yet been sufficiently explored. Given the specific characteristics of the European market, such as the more stringent social and regulatory environment, this topic is particularly relevant and open to further research.