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Give or take? Consumers' ambivalent perspectives on the relationship between a firm's corporate social responsibility engagement and its responsible tax payments

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  • Anat Toder‐Alon
  • Eyal Rosenstreich
  • Tali Te'eni Harari

Abstract

The present study examines the mechanisms of the halo effect and the scepticism effect as alternative explanations for the association between a firm's corporate social responsibility (CSR) engagement and consumers' perceptions of its tax behaviour. The authors conduct two experimental studies to examine the impact of a company's CSR domain on consumers' perceptions of its tax practices (Study 1) and the impact of a company's CSR engagement and tax practices on consumers' evaluations of that company (Study 2). It was found that consumers' perceptions of a firm's tax practices critically depend on CSR domains. Specifically, when inferring tax perceptions from CSR engagement, consumers factor in their perceptions of the greater direct reputational benefits that firms derive from external CSR engagement (environmental and philanthropic CSR) compared with those they derive from internal CSR engagement (activities focused on intraorganisational stakeholders). Suggestions for managerial implications and future research are also discussed.

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  • Anat Toder‐Alon & Eyal Rosenstreich & Tali Te'eni Harari, 2019. "Give or take? Consumers' ambivalent perspectives on the relationship between a firm's corporate social responsibility engagement and its responsible tax payments," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(4), pages 872-884, July.
    • Handle: RePEc:wly:corsem:v:26:y:2019:i:4:p:872-884
    DOI: 10.1002/csr.1727
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    1. Nguyen, Nga & Priporas, Constantinos-Vasilios & McPherson, Mark & Manyiwa, Simon, 2023. "CSR-related consumer scepticism: A review of the literature and future research directions," Journal of Business Research, Elsevier, vol. 169(C).
    2. Marcela Rocha Haase Uhlig & Emerson Wagner Mainardes & Valcemiro Nossa, 2020. "Corporate social responsibility and consumer's relationship intention," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(1), pages 313-324, January.
    3. Zhi Li & Jiuchang Wei & Yue Gurt Ge, 2023. "Local Support for the Corporate New Investment Project: The Roles of Corporate Reputation, Project’s CSR Behavior and Residential Income Level," Asia Pacific Journal of Management, Springer, vol. 40(1), pages 59-85, March.

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