This chapter addresses the relationship between the theory and practice of CSR (corporate social responsibility) and corporate tax avoidance. We argue that CSR scholars and practitioners only recently have begun to address matters of taxation and provide some explanations for this failure or neglect, ranging from silo-mentality to different ideologies regarding business and society. Furthermore we argue that CSR can be considered both as a problem and a solution in regard to corporate tax avoidance and develop both lines of reasoning. With regard to the solutions part, we argue that companies should exercise self-restraint in the face of legal loopholes and be responsive to and engaged with tax authorities and the spirit of the law—and that a responsible approach to corporate taxation can find justification in a political view of the corporation and its social responsibilities.

This chapter addresses the relationship between the theory and practice of CSR (corporate social responsibility) and corporate tax avoidance. We argue that CSR scholars and practitioners only recently have begun to address matters of taxation and provide some explanations for this failure or neglect, ranging from silo-mentality to different ideologies regarding business and society. Furthermore we argue that CSR can be considered both as a problem and a solution in regard to corporate tax avoidance and develop both lines of reasoning. With regard to the solutions part, we argue that companies should exercise self-restraint in the face of legal loopholes and be responsive to and engaged with tax authorities and the spirit of the law—and that a responsible approach to corporate taxation can find justification in a political view of the corporation and its social responsibilities.