Analysis of the effect of disclosure Corporate Social Responsibility (CSR) against tax avoidance
DOI:
https://doi.org/10.54957/educoretax.v4i12.1308Keywords:
Corporate social responsibility, PRISMA, Tax avoidanceAbstract
This research explores the relationship between Corporate Social Responsibility (CSR) and tax avoidance. CSR is seen as a social responsibility that reflects a company's compliance with stakeholder expectations, while tax avoidance is often considered an opportunistic act to maximize profits. This research uses a qualitative approach with a systematic literature review method (Systematic Literature Review/SLR) and uses the PRISMA method. The literature used is publications published from 2021 to 2024. This research aims to identify the relationship between Corporate Social Responsibility (CSR) disclosure and tax avoidance practices. Even though there are research that concludes there is no significant influence between CSR disclosure and tax avoidance practices, The results of the literature review show that most studies state a negative relationship between CSR disclosure and tax avoidance practices. In addition, other research finds a positive relationship because company size strengthens the influence of CSR on tax avoidance with a significant and beneficial effect. This research provides a theoretical contribution to existing literature by exploring the relationship between CSR disclosure and tax avoidance.
References
Abdullah, M. W., Jupaing, J., Anwar, P. H., & Hanafie, H. (2021). Mining Companies Tax Avoidance Investigation by the Company Characteristics and CSR: Company Size as the Moderating Variable. Jurnal Minds: Manajemen Ide Dan Inspirasi, 8(1), 29. https://doi.org/10.24252/minds.v8i1.20250
Abid, S., & Dammak, S. (2022). Corporate social responsibility and tax avoidance: the case of French companies. Journal of Financial Reporting and Accounting, 20(3/4), 618–638. https://doi.org/10.1108/JFRA-04-2020-0119
Chouaibi, J., Rossi, M., & Abdessamed, N. (2022). The effect of corporate social responsibility practices on tax avoidance: an empirical study in the French context. Competitiveness Review: An International Business Journal, 32(3), 326–349. https://doi.org/10.1108/CR-04-2021-0062
Deegan, C. (2002). Introduction. Accounting, Auditing & Accountability Journal, 15(3), 282–311. https://doi.org/10.1108/09513570210435852
Goerke, L. (2018). Corporate Social Responsibi-lity and Tax Avoidance. www.RePEc.org
Gribnau, H. (2015). Corporate Social Responsibility and Tax Planning: Not by Rules Alone. Social and Legal Studies, 24(2), 225–250. https://doi.org/10.1177/0964663915575053
Helmig, B., Spraul, K., & Ingenhoff, D. (2016). Under Positive Pressure. Business & Society, 55(2), 151–187. https://doi.org/10.1177/0007650313477841
Herlina, L. (2021). Corporate Social Responsibility Disclosure on Tax Avoidance. JASa (Jurnal Akuntansi, Audit Dan Sistem Informasi Akuntansi), 5(1), 98–103. https://doi.org/10.36555/jasa.v5i1.1512
Holder-Webb, L., Cohen, J. R., Nath, L., & Wood, D. (2009). The Supply of Corporate Social Responsibility Disclosures Among U.S. Firms. Journal of Business Ethics, 84(4), 497–527. https://doi.org/10.1007/s10551-008-9721-4
Ibrahim, M., Musah, A., & Abdul-Hanan, A. (2015). Beyond enforcement: what drives tax morale in Ghana? Humanomics, 31(4), 399–414. https://doi.org/10.1108/H-04-2015-0023
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305–360. https://doi.org/10.1016/0304-405X(76)90026-X
Jiang, W., Zhang, C., & Si, C. (2022). The real effect of mandatory CSR disclosure: Evidence of corporate tax avoidance. Technological Forecasting and Social Change, 179, 121646. https://doi.org/10.1016/j.techfore.2022.121646
Khan, N., Abraham, O. O., Alex, A., Eluyela, D. F., & Odianonsen, I. F. (2022). Corporate governance, tax avoidance, and corporate social responsibility: Evidence of emerging market of Nigeria and frontier market of Pakistan. Cogent Economics & Finance, 10(1). https://doi.org/10.1080/23322039.2022.2080898
Khandelwal, V., Tripathi, P., Chotia, V., Srivastava, M., Sharma, P., & Kalyani, S. (2023). Examining the Impact of Agency Issues on Corporate Performance: A Bibliometric Analysis. Journal of Risk and Financial Management, 16(12), 497. https://doi.org/10.3390/jrfm16120497
Kim, B., Lee, S., & Kang, K. H. (2018). The moderating role of CEO narcissism on the relationship between uncertainty avoidance and CSR. Tourism Management, 67, 203–213. https://doi.org/10.1016/j.tourman.2018.01.018
Lajnef, K., & Dhifi, K. (2024). Integrating Reporting Bridge, the Gap Between CSR Performance and Tax Avoidance Relationship? Insights from South Africa. In International Journal of Economics and Business Administration: Vol. XII (Issue 1).
Lelang Aya, K., Hariyanti, W., & Sugiarti. (2022). The Effect of Financial Ratio Analysis, Transfer Pricing And Corporate Social Responsibility on Tax Avoidance in Manufacturing Companies Listed on the Indonesia Stock Exchange in 2015-2019. Accounting and Finance Studies, 2(2), 79–94. https://doi.org/10.47153/afs22.3742022
Musimenta, D., Nkundabanyanga, S. K., Muhwezi, M., Akankunda, B., & Nalukenge, I. (2017). Tax compliance of small and medium enterprises: a developing country perspective. Journal of Financial Regulation and Compliance, 25(2), 149–175. https://doi.org/10.1108/JFRC-08-2016-0065
Night, S., & Bananuka, J. (2019). The mediating role of adoption of an electronic tax system in the relationship between attitude towards electronic tax system and tax compliance. Journal of Economics, Finance and Administrative Science, 25(49), 73–88. https://doi.org/10.1108/JEFAS-07-2018-0066
Panjaitan, A., Maksum, A., & Abubakar, E. (2021). The Influence of Corporate Social Responsibility, Corporate Characteristic, Family Ownership, Profitabilitas and Corporate Governance on Tax Avoidance. Jurnal Mantik, 4(4). https://iocscience.org/ejournal/index.php/mantik
Rahman, M. J., & Li, L. (2021). Corporate Social Responsibility (CSR): Focus on Tax Avoidance and Financial Ratio Analysis. https://ssrn.com/abstract=3773360
Suripto. (2021). PENGARUH CORPORATE SOCIAL RESPONSBILITY, KUALITAS AUDIT DAN MANAJEMEN LABA TERHADAP TAX AVOIDANCE PADA PERUSAHAAN PERTAMBANGAN YANG TERDAFTAR DI BURSA EFEK INDONESIA. 5(1), 2021.
Susanto, A., & Veronica, V. (2022). Pengaruh Corporate Social Responsibility (CSR) dan Karakteristik Perusahaan terhadap Praktik Penghindaran Pajak Perusahaan yang Terdaftar di Bursa Efek Indonesia. Owner, 6(1), 541–553. https://doi.org/10.33395/owner.v6i1.551
T Oboh, O. N. (2021). Corporate Social Responsibility and Tax Avoidance in Nigeria. Research Journal of Finance and Accounting. https://doi.org/10.7176/RJFA/12-8-04
Umiyati, I., & Andriani, D. (2023). THE EFFECT OF GOOD CORPORATE GOVERNANCE, CORPORATE SOCIAL RESPONSIBILITY AND PROFITABILITY TO TAX AVOIDANCE. https://doi.org/10.35310/jass.v5i01.1087
Watson, L. (2015). Corporate Social Responsibility, Tax Avoidance, and Earnings Performance. The Journal of the American Taxation Association, 37(2), 1–21. https://doi.org/10.2308/atax-51022
Widianti, F. D. A., & Prasetyo, A. B. (2023). Do Corporate Social Responsibility and Corporate Governance Disclosures Affect Tax Avoidance? Accounting Analysis Journal, 12(3), 165–176. https://doi.org/10.15294/aaj.v12i3.70867
Wirawan, S. L., & Yuniarwati, D. (2022). Wirawan dan Yuniarwati: Faktor-Faktor yang Mempengaruhi … Faktor-Faktor Yang Mempengaruhi Tax Avoidance pada Perusahaan Barang Konsumsi di Indonesia. www.idx.co.id
Wu, W., Wu, C., Zhou, C., & Wu, J. (2012). Please cite as: Political Connections, Tax Benefits and Firm Performance: Evidence from China. https://ssrn.com/abstract=3573416
Zeng, T. (2019). Relationship between corporate social responsibility and tax avoidance: international evidence. Social Responsibility Journal, 15(2), 244–257. https://doi.org/10.1108/SRJ-03-2018-0056
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2024 Dwi Astuti, Agung Dinarjito
This work is licensed under a Creative Commons Attribution 4.0 International License.
