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Responsibility in Paradise? The Adoption of CSR Tools by Companies Domiciled in Tax Havens

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  • Lutz Preuss

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Abstract

In contrast to the recent rise to economic importance of offshore finance centres (OFCs), the topic of taxation has so far created little interest among scholars of corporate social responsibility (CSR). This paper makes two contributions to addressing this lacuna. Applying a range of influential normative theories of ethics, it first offers an ethical evaluation of tax havens. Second, the paper examines what use large firms that are headquartered in two OFCs—Bermuda and the Cayman Islands—make of formal CSR tools. The emerging duplicity in tax haven-based companies professing social responsibility highlights once more the political nature of CSR, where at least some firms and/or industries can successfully limit government power to enact regulation as well as shape the discourse around CSR. The study of CSR in OFC-based firms thus calls into question the usefulness of the often quoted definition of CSR as going beyond the law. Copyright Springer Science+Business Media B.V. 2012

Suggested Citation

  • Lutz Preuss, 2012. "Responsibility in Paradise? The Adoption of CSR Tools by Companies Domiciled in Tax Havens," Journal of Business Ethics, Springer, vol. 110(1), pages 1-14, September.
  • Handle: RePEc:kap:jbuset:v:110:y:2012:i:1:p:1-14
    DOI: 10.1007/s10551-012-1456-6
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    References listed on IDEAS

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    Cited by:

    1. Lauren Kleynjans & Marek Hudon, 2016. "A Study of Codes of Ethics for Mexican Microfinance Institutions," Journal of Business Ethics, Springer, vol. 134(3), pages 397-412, March.
    2. Mihai-Bogdan AFRASINEI & Iuliana Eugenia GEORGESCU & Costel ISTRATE, 2016. "The Influence Of The Connections Of Romanian Non-Listed Firms To Tax Havens On Their Profitability," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 8(4), pages 572-596, December.
    3. Mihai Bogdan Afrasinei, 2013. "The Problem Of Tax Havens And The Romanian Tax Authorities’ Reaction," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 5(2), pages 149-159.
    4. Diego Ravenda & Josep Argilés-Bosch & Maika Valencia-Silva, 2015. "Labor Tax Avoidance and Its Determinants: The Case of Mafia Firms in Italy," Journal of Business Ethics, Springer, vol. 132(1), pages 41-62, November.
    5. Grahame Dowling, 2014. "The Curious Case of Corporate Tax Avoidance: Is it Socially Irresponsible?," Journal of Business Ethics, Springer, vol. 124(1), pages 173-184, September.
    6. repec:eee:crpeac:v:33:y:2015:i:c:p:5-23 is not listed on IDEAS

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