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Mapping Corporate Tax Planning and Corporate Social Responsibility: A Hybrid Method of Category Analysis

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Listed:
  • Lurdes Araújo

    (Higher Institute of Accounting and Administration, University of Aveiro, 3810-193 Aveiro, Portugal)

  • Sérgio Ravara Cruz

    (Higher Institute of Accounting and Administration, University of Aveiro, 3810-193 Aveiro, Portugal)

  • Luís Lima Santos

    (CiTUR—Centre for Tourism Research, Development and Innovation, Polytechnic University of Leiria, 2411-901 Leiria, Portugal)

  • Lucília Cardoso

    (CiTUR—Centre for Tourism Research, Development and Innovation, Polytechnic University of Leiria, 2411-901 Leiria, Portugal)

Abstract

The relationship between corporate tax planning (CTP) and corporate social responsibility (CSR) is complex, with various perspectives, and a detailed scientific analysis of this relationship is required. This complexity arises from the conflicting interests of maximizing shareholder value through tax strategies while meeting societal expectations of ethical behaviour and transparency. So, the main objective of this research is to reveal the state of the art regarding the relationship between these two concepts. To achieve this goal and map the scientific literature relating to CTP and CSR, the Scopus and Web of Science (WoS) databases were used, resulting in a screening process identifying 47 relevant articles. The methodology employed is hybrid, combining a systematic review and category analysis. The main results reveal a strong relationship between corporate tax planning and CSR. Tax avoidance is the focus, followed by tax aggressiveness due to the conflict between shareholder benefits and social obligations. In addition, the most tested theory is risk management. This study highlights the interdisciplinary nature of CTP and CSR research, integrating accounting, business ethics, and management for a holistic understanding of corporate behaviour. The focus on tax avoidance underscores its key role in the CTP-CSR relationship, reinforcing theories that link tax practices to corporate ethics and suggesting aggressive tax strategies can undermine CSR efforts. As the main practical implication, the study suggests that policymakers should promote transparency in companies’ tax practices and encourage CSR activities, aligning companies’ behaviour with society’s expectations and improving compliance with tax obligations.

Suggested Citation

  • Lurdes Araújo & Sérgio Ravara Cruz & Luís Lima Santos & Lucília Cardoso, 2024. "Mapping Corporate Tax Planning and Corporate Social Responsibility: A Hybrid Method of Category Analysis," JRFM, MDPI, vol. 17(8), pages 1-22, August.
    • Handle: RePEc:gam:jjrfmx:v:17:y:2024:i:8:p:333-:d:1448022
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    References listed on IDEAS

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    1. Lisa Baudot & Joseph A. Johnson & Anna Roberts & Robin W. Roberts, 2020. "Is Corporate Tax Aggressiveness a Reputation Threat? Corporate Accountability, Corporate Social Responsibility, and Corporate Tax Behavior," Journal of Business Ethics, Springer, vol. 163(2), pages 197-215, May.
    2. Peter Vaz da Fonseca & Andrea Decourt Savelli & Michele Nascimento Juca, 2020. "A Systematic Review of the Influence of Taxation on Corporate Capital Structure," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(2), pages 155-178.
    3. Chih-Wen Mao & Wen-Chieh Wu, 2019. "Moderated mediation effects of corporate social responsibility performance on tax avoidance: evidence from China," Asia-Pacific Journal of Accounting & Economics, Taylor & Francis Journals, vol. 26(1-2), pages 90-107, January.
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