IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v158y2019i2d10.1007_s10551-017-3700-6.html
   My bibliography  Save this article

Corporate Tax: What Do Stakeholders Expect?

Author

Listed:
  • Carola Hillenbrand

    (University of Reading)

  • Kevin Guy Money

    (University of Reading)

  • Chris Brooks

    (University of Reading)

  • Nicole Tovstiga

    (University of London)

Abstract

Motivated by the ongoing controversy surrounding corporate tax, this article presents a study that explores stakeholder expectations of corporate tax in the context of UK business. We conduct a qualitative analysis of in-depth interviews with representatives of community groups (NGOs/think tanks and special interest groups), as well as interviews with those representing business groups (business leaders and industry representatives). We then identify eight themes that together describe “what” companies need to do, “how” they need to do it, and “why” they need to do it, if they wish to appeal to a wide group of interested parties. We discuss our findings based on the corporate social responsibility literature and propose novel ways for community groups and business groups to connect on the topic of corporate tax, suggesting opportunities and themes for dialogue and potential steps to co-create solutions in a stakeholder society.

Suggested Citation

  • Carola Hillenbrand & Kevin Guy Money & Chris Brooks & Nicole Tovstiga, 2019. "Corporate Tax: What Do Stakeholders Expect?," Journal of Business Ethics, Springer, vol. 158(2), pages 403-426, August.
    • Handle: RePEc:kap:jbuset:v:158:y:2019:i:2:d:10.1007_s10551-017-3700-6
    DOI: 10.1007/s10551-017-3700-6
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10551-017-3700-6
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10551-017-3700-6?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Marjo Siltaoja & Merja Lähdesmäki, 2015. "From Rationality to Emotionally Embedded Relations: Envy as a Signal of Power in Stakeholder Relations," Journal of Business Ethics, Springer, vol. 128(4), pages 837-850, June.
    2. Andrew Crane & Cameron Graham & Darlene Himick, 2015. "Financializing Stakeholder Claims," Journal of Management Studies, Wiley Blackwell, vol. 52(7), pages 878-906, November.
    3. Jonathan P. Doh & Terrence R. Guay, 2006. "Corporate Social Responsibility, Public Policy, and NGO Activism in Europe and the United States: An Institutional‐Stakeholder Perspective," Journal of Management Studies, Wiley Blackwell, vol. 43(1), pages 47-73, January.
    4. Catherine Liston-Heyes & Gwen Ceton, 2009. "An Investigation of Real Versus Perceived CSP in S&P-500 Firms," Journal of Business Ethics, Springer, vol. 89(2), pages 283-296, October.
    5. Prem Sikka, 2010. "Smoke and mirrors: Corporate social responsibility and tax avoidance," Accounting Forum, Taylor & Francis Journals, vol. 34(3-4), pages 153-168, September.
    6. Jones, Thomas M. & Felps, Will, 2013. "Shareholder Wealth Maximization and Social Welfare: A Utilitarian Critique," Business Ethics Quarterly, Cambridge University Press, vol. 23(2), pages 207-238, April.
    7. Jacob Brower & Vijay Mahajan, 2013. "Driven to Be Good: A Stakeholder Theory Perspective on the Drivers of Corporate Social Performance," Journal of Business Ethics, Springer, vol. 117(2), pages 313-331, October.
    8. Friederike Schultz & Itziar Castelló & Mette Morsing, 2013. "The Construction of Corporate Social Responsibility in Network Societies: A Communication View," Journal of Business Ethics, Springer, vol. 115(4), pages 681-692, July.
    9. Agle, Bradley R. & Donaldson, Thomas & Freeman, R. Edward & Jensen, Michael C. & Mitchell, Ronald K. & Wood, Donna J., 2008. "Dialogue: Toward Superior Stakeholder Theory," Business Ethics Quarterly, Cambridge University Press, vol. 18(2), pages 153-190, April.
    10. Hsieh, Nien-hê, 2015. "The Social Contract Model of Corporate Purpose and Responsibility," Business Ethics Quarterly, Cambridge University Press, vol. 25(4), pages 433-460, October.
    11. 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.
    12. Adam Lindgreen & José-Rodrigo Córdoba, 2010. "Editorial: Corporate Social Responsibility in Latin America," Journal of Business Ethics, Springer, vol. 91(2), pages 167-170, February.
    13. Freeman, R. Edward, 1994. "The Politics of Stakeholder Theory: Some Future Directions1," Business Ethics Quarterly, Cambridge University Press, vol. 4(4), pages 409-421, October.
    14. Inga Hardeck & Rebecca Hertl, 2014. "Consumer Reactions to Corporate Tax Strategies: Effects on Corporate Reputation and Purchasing Behavior," Journal of Business Ethics, Springer, vol. 123(2), pages 309-326, August.
    15. Angeloantonio Russo & Francesco Perrini, 2010. "Investigating Stakeholder Theory and Social Capital: CSR in Large Firms and SMEs," Journal of Business Ethics, Springer, vol. 91(2), pages 207-221, January.
    16. Shaomin Li & Marc Fetscherin & Ilan Alon & Christoph Lattemann & Kuang Yeh, 2010. "Corporate Social Responsibility in Emerging Markets," Management International Review, Springer, vol. 50(5), pages 635-654, October.
    17. Nicolas Dahan & Jonathan Doh & Jonathan Raelin, 2015. "Pivoting the Role of Government in the Business and Society Interface: A Stakeholder Perspective," Journal of Business Ethics, Springer, vol. 131(3), pages 665-680, October.
    18. Sikka, Prem & Willmott, Hugh, 2010. "The dark side of transfer pricing: Its role in tax avoidance and wealth retentiveness," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 21(4), pages 342-356.
    19. Jose Lopez-De-Pedro & Eva Rimbau-Gilabert, 2012. "Stakeholder Approach: What Effects Should We Take into Account in Contemporary Societies?," Journal of Business Ethics, Springer, vol. 107(2), pages 147-158, May.
    20. Ronald K. Mitchell & Harry J. Van Buren III & Michelle Greenwood & R. Edward Freeman, 2015. "Stakeholder Inclusion and Accounting for Stakeholders," Journal of Management Studies, Wiley Blackwell, vol. 52(7), pages 851-877, November.
    21. Sikka, Prem, 2010. "Smoke and mirrors: Corporate social responsibility and tax avoidance," Accounting forum, Elsevier, vol. 34(3), pages 153-168.
    22. Denise Baden & Ian Harwood, 2013. "Terminology Matters: A Critical Exploration of Corporate Social Responsibility Terms," Journal of Business Ethics, Springer, vol. 116(3), pages 615-627, September.
    23. James S. Wallace, 2003. "Value Maximization And Stakeholder Theory: Compatible Or Not?," Journal of Applied Corporate Finance, Morgan Stanley, vol. 15(3), pages 120-127, March.
    24. Hasseldine, John & Morris, Gregory, 2013. "Corporate social responsibility and tax avoidance: A comment and reflection," Accounting forum, Elsevier, vol. 37(1), pages 1-14.
    25. Kenneth J. Klassen & Stacie K. Laplante, 2012. "Are U.S. Multinational Corporations Becoming More Aggressive Income Shifters?," Journal of Accounting Research, Wiley Blackwell, vol. 50(5), pages 1245-1285, December.
    26. Carola Hillenbrand & Kevin Money & Stephen Pavelin, 2012. "Stakeholder-Defined Corporate Responsibility for a Pre-Credit-Crunch Financial Service Company: Lessons for How Good Reputations are Won and Lost," Journal of Business Ethics, Springer, vol. 105(3), pages 337-356, February.
    27. John Hasseldine & Gregory Morris, 2013. "Corporate social responsibility and tax avoidance: A comment and reflection," Accounting Forum, Taylor & Francis Journals, vol. 37(1), pages 1-14, March.
    28. Roman Lanis & Grant Richardson, 2015. "Is Corporate Social Responsibility Performance Associated with Tax Avoidance?," Journal of Business Ethics, Springer, vol. 127(2), pages 439-457, March.
    29. Johanna Kujala & Anna Heikkinen & Hanna Lehtimäki, 2012. "Understanding the Nature of Stakeholder Relationships: An Empirical Examination of a Conflict Situation," Journal of Business Ethics, Springer, vol. 109(1), pages 53-65, August.
    30. Ulrich Mueckenberger & Sarah Jastram, 2010. "Transnational Norm-Building Networks and the Legitimacy of Corporate Social Responsibility Standards," Journal of Business Ethics, Springer, vol. 97(2), pages 223-239, December.
    31. Dane M. Christensen & Dan S. Dhaliwal & Steven Boivie & Scott D. Graffin, 2015. "Top management conservatism and corporate risk strategies: Evidence from managers' personal political orientation and corporate tax avoidance," Strategic Management Journal, Wiley Blackwell, vol. 36(12), pages 1918-1938, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Leon Zolotoy & Don O’Sullivan & Geoffrey P. Martin & Robert M. Wiseman, 2021. "Stakeholder Agency Relationships: CEO Stock Options and Corporate Tax Avoidance," Journal of Management Studies, Wiley Blackwell, vol. 58(3), pages 782-814, May.
    2. Anne Vijver, 2022. "Morality of Lobbying for Tax Benefits: A Kantian Perspective," Journal of Business Ethics, Springer, vol. 181(1), pages 57-68, November.
    3. Woon Leong Lin, 2021. "Giving too much and paying too little? The effect of corporate social responsibility on corporate lobbying efficacy: Evidence of tax aggressiveness," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 908-924, March.
    4. Nirmala Devi Mohanadas, 2019. "A Theoretical Review on Corporate Tax Avoidance: Shareholder Approach versus Stakeholder Approach," GATR Journals jfbr160, Global Academy of Training and Research (GATR) Enterprise.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Robert Bird & Karie Davis-Nozemack, 2018. "Tax Avoidance as a Sustainability Problem," Journal of Business Ethics, Springer, vol. 151(4), pages 1009-1025, September.
    2. Antonetti, Paolo & Anesa, Mattia, 2017. "Consumer reactions to corporate tax strategies: The role of political ideology," Journal of Business Research, Elsevier, vol. 74(C), pages 1-10.
    3. AnnMarie Bennett & Breda Murphy, 2017. "The Tax Profession: Tax Avoidance and the Public Interest," Economics Department Working Paper Series n286-17.pdf, Department of Economics, National University of Ireland - Maynooth.
    4. Fallan, Even & Fallan, Lars, 2019. "Corporate tax behaviour and environmental disclosure: Strategic trade-offs across elements of CSR?," Scandinavian Journal of Management, Elsevier, vol. 35(3).
    5. Ylönen, Matti & Laine, Matias, 2015. "For logistical reasons only? A case study of tax planning and corporate social responsibility reporting," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 33(C), pages 5-23.
    6. Mohammed Benlemlih & Jamil Jaballah & Sholom Schochet & Jonathan Peillex, 2023. "Corporate social responsibility and corporate tax avoidance: The channel effect of consumer awareness," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 50(1-2), pages 31-60, January.
    7. Nirmala Devi Mohanadas, 2019. "A Theoretical Review on Corporate Tax Avoidance: Shareholder Approach versus Stakeholder Approach," GATR Journals jfbr160, Global Academy of Training and Research (GATR) Enterprise.
    8. Sikka, Prem, 2013. "Smoke and mirrors: Corporate social responsibility and tax avoidance—A reply to Hasseldine and Morris," Accounting forum, Elsevier, vol. 37(1), pages 15-28.
    9. Brooks, Chris & Godfrey, Chris & Hillenbrand, Carola & Money, Kevin, 2016. "Do investors care about corporate taxes?," Journal of Corporate Finance, Elsevier, vol. 38(C), pages 218-248.
    10. Argilés-Bosch, Josep M. & Somoza, Antonio & Ravenda, Diego & García-Blandón, Josep, 2020. "An empirical examination of the influence of e-commerce on tax avoidance in Europe," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 41(C).
    11. Adams, Dawda & Adams, Kweku & Attah-Boakye, Rexford & Ullah, Subhan & Rodgers, Waymond & Kimani, Danson, 2022. "Social and environmental practices and corporate financial performance of multinational corporations in emerging markets: Evidence from 20 oil-rich African countries," Resources Policy, Elsevier, vol. 78(C).
    12. Nadia Elouaer & Rida Waheed & Suleman Sarwar & Ghazala Aziz, 2022. "Does Gender Diversity and Experience Moderate the Impact of Tax Aggressiveness on Corporate Social Responsibility: A Study of UAE Listed Companies," Sustainability, MDPI, vol. 14(21), pages 1-13, November.
    13. Jiang, Wei & Zhang, Cheng & Si, Chengyu, 2022. "The real effect of mandatory CSR disclosure: Evidence of corporate tax avoidance," Technological Forecasting and Social Change, Elsevier, vol. 179(C).
    14. Gavious, Ilanit & Livne, Gilad & Chen, Ester, 2022. "Does tax avoidance increase or decrease when tax enforcement is stronger? Evidence using CSR heterogeneity perspective," International Review of Financial Analysis, Elsevier, vol. 84(C).
    15. Andrea Vacca & Antonio Iazzi & Demetris Vrontis & Monica Fait, 2020. "The Role of Gender Diversity on Tax Aggressiveness and Corporate Social Responsibility: Evidence from Italian Listed Companies," Sustainability, MDPI, vol. 12(5), pages 1-14, March.
    16. Argilés-Bosch, Josep Mª & Ravenda, Diego & Garcia-Blandón, Josep, 2021. "E-commerce and labour tax avoidance," CRITICAL PERSPECTIVES ON ACCOUNTING, Elsevier, vol. 81(C).
    17. Burcin Col & Saurin Patel, 2019. "Going to Haven? Corporate Social Responsibility and Tax Avoidance," Journal of Business Ethics, Springer, vol. 154(4), pages 1033-1050, February.
    18. Kumari Juddoo & Issam Malki & Sudha Mathew & Sheeja Sivaprasad, 2023. "An impact investment strategy," Review of Quantitative Finance and Accounting, Springer, vol. 61(1), pages 177-211, July.
    19. Anesa, Mattia & Gillespie, Nicole & Spee, A. Paul & Sadiq, Kerrie, 2019. "The legitimation of corporate tax minimization," Accounting, Organizations and Society, Elsevier, vol. 75(C), pages 17-39.
    20. Quentin Clair, 2019. "Acceptable levels of tax risk as a metric of corporate tax responsibility: theory, and a survey of practice," Nordic Tax Journal, Sciendo, vol. 2019(1), pages 1-15, January.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:jbuset:v:158:y:2019:i:2:d:10.1007_s10551-017-3700-6. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.