Corporate social responsibility (CSR) and tax incentives: the case of Tunisian companies

Purpose - This paper aims to investigate the question concerning whether tax incentives motivate companies to be socially responsible. This study, specifically, examines the impact of tax incentives for corporate social responsibility (CSR) on the societal practices of Tunisian companies. Design/methodology/approach - This study uses multiple regression models to assess the effectiveness of tax incentives for companies to take responsible actions. The study was conducted on 71 Tunisian companies operating in different sectors. Findings - The results reveal that there is a negative and significant association between tax incentives and CSR practices. Therefore, there is an inefficient use of these types of incentives. Practical implications - The results of the study have important implications for investors and regulatory basis wishing to enhance CSR by giving tax incentives. Investment in social responsibility may improve the corporate culture and reduce the conflict in companies. Originality/value - The theoretical contributions relate mainly to the originality of the conceptual model developed, to the literature review and to the theoretical foundations mobilized. In fact, the originality of this research is justified by the scarcity of previous study dealing with the relationship between tax incentives and CSR. Thus, to the best of the authors’ knowledge, this study is one of the first to investigate the impact of tax incentives for CSR on CSR practices.