Corporate social responsibility and tax avoidance: A study of multinational corporations in developed countries and policy implications for Vietnam

Abstract

This study delves into the complex relationship between Corporate Social Responsibility (CSR) and tax avoidance in multinational corporations (MNCs) in developed countries. Utilizing data extracted from annual reports and CSR activity reports of MNCs from 2019 to 2023, the research examines the impact of CSR engagement on tax avoidance strategies. The study focuses on both the extent of CSR disclosure and the actual implementation of CSR activities, as reported in these documents. The research analyzes the influence of CSR on tax avoidance behavior, exploring whether CSR initiatives genuinely contribute to mitigating tax avoidance or are merely used to divert attention from such practices. Based on the findings, the study proposes solutions to enhance the effectiveness of CSR implementation and minimize tax avoidance practices, aiming to contribute to the establishment of a fair and transparent business environment in Vietnam This study contributes to the understanding of how CSR practices and tax avoidance behaviors intersect in the context of MNCs, providing valuable insights for policymakers, regulators, and companies themselves. By examining the complex interplay between CSR and tax avoidance, the research aims to shed light on how CSR can shape corporate behavior in ways that benefit both the companies involved and society as a whole.