IDEAS home Printed from https://ideas.repec.org/a/kap/jbuset/v181y2022i1d10.1007_s10551-021-04911-3.html
   My bibliography  Save this article

Morality of Lobbying for Tax Benefits: A Kantian Perspective

Author

Listed:
  • Anne Vijver

    (University of Antwerp)

Abstract

Multinationals’ aggressive tax lobbying that involves free-riding behaviour and results in disproportional benefits to the disadvantage of other taxpayers, is problematic for several reasons. Such lobbying undermines the legitimacy of tax legislation and has a negative impact on trust in the tax system. Based on Immanuel Kant’s ethical theory, this article first suggests a new normative basis for a moral duty that requires multinationals and their leaders to be transparent about their political activities and tax lobbying. Next, it introduces a new concept of transparency in respect of tax lobbying. ‘Deliberative transparency’ requires multinationals and their leaders not only to be open about their reasons for tax lobbying, but also to deliberate with stakeholders and, maybe even more importantly, to provide evidence supporting their lobbying positions. Finally, based on these new understandings, additional government interventions against aggressive tax lobbying are suggested, for example mandatory stakeholder consultation, reporting on stakeholder attitudes and perception, and evidence-based lobbying requirements.

Suggested Citation

  • Anne Vijver, 2022. "Morality of Lobbying for Tax Benefits: A Kantian Perspective," Journal of Business Ethics, Springer, vol. 181(1), pages 57-68, November.
    • Handle: RePEc:kap:jbuset:v:181:y:2022:i:1:d:10.1007_s10551-021-04911-3
    DOI: 10.1007/s10551-021-04911-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10551-021-04911-3
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10551-021-04911-3?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. Desai, Mihir A. & Dharmapala, Dhammika, 2006. "Corporate tax avoidance and high-powered incentives," Journal of Financial Economics, Elsevier, vol. 79(1), pages 145-179, January.
    2. 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.
    3. Michael P. Devereux & John Vella, 2015. "Are We Heading towards a Corporate Tax System Fit for the 21st Century?," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 12(04), pages 03-07, January.
    4. Michael P. Devereux & John Vella, 2014. "Are We Heading towards a Corporate Tax System Fit for the 21-super-st Century?," Fiscal Studies, Institute for Fiscal Studies, vol. 35, pages 449-475, December.
    5. Ostas, Daniel T., 2007. "The Law and Ethics of K Street: Lobbying, the First Amendment, and the Duty to Create Just Laws," Business Ethics Quarterly, Cambridge University Press, vol. 17(1), pages 33-63, January.
    6. R. Schoonackers, 2020. "Tax incentives for R&D: are they effective?," Economic Review, National Bank of Belgium, issue ii, pages 1-20, september.
    7. Johannes Jahn & Rolf Brühl, 2018. "How Friedman’s View on Individual Freedom Relates to Stakeholder Theory and Social Contract Theory," Journal of Business Ethics, Springer, vol. 153(1), pages 41-52, November.
    8. R. Schoonackers, 2020. "Tax incentives for R&D: are they effective?," Economic Review, National Bank of Belgium, issue ii, pages 77-96, september.
    9. Amy L. MacArthur, 2019. "Kantian Group Agency," Journal of Business Ethics, Springer, vol. 154(4), pages 917-927, February.
    10. Madina Rival & Richard Major, 2018. "What Lobbying Ethics and What for? The Case of French Lobbying Consulting Firms," Journal of Business Ethics, Springer, vol. 150(1), pages 99-116, June.
    11. Anne Van de Vijver & Danny Cassimon & Peter-Jan Engelen, 2020. "A Real Option Approach to Sustainable Corporate Tax Behavior," Sustainability, MDPI, vol. 12(13), pages 1-17, July.
    12. Blanche Segrestin & Armand Hatchuel & Kevin Levillain, 2021. "When the Law Distinguishes Between the Enterprise and the Corporation: The Case of the New French Law on Corporate Purpose," Journal of Business Ethics, Springer, vol. 171(1), pages 1-13, June.
    13. Georges Enderle, 2018. "How Can Business Ethics Strengthen the Social Cohesion of a Society?," Journal of Business Ethics, Springer, vol. 150(3), pages 619-629, July.
    14. Lisa Baudot & Joseph A. Johnson & Anna Roberts & Robin W. Roberts, 2020. "Is Corporate Tax Aggressiveness a Reputation Threat? Corporate Accountability, Corporate Social Responsibility, and Corporate Tax Behavior," Journal of Business Ethics, Springer, vol. 163(2), pages 197-215, May.
    15. 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.
    16. Claus Dierksmeier, 2013. "Kant on Virtue," Journal of Business Ethics, Springer, vol. 113(4), pages 597-609, April.
    17. Anne Aaken & Stefan Voigt, 2011. "Do individual disclosure rules for parliamentarians improve government effectiveness?," Economics of Governance, Springer, vol. 12(4), pages 301-324, December.
    18. 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.
    19. Cedric Dawkins, 2014. "The Principle of Good Faith: Toward Substantive Stakeholder Engagement," Journal of Business Ethics, Springer, vol. 121(2), pages 283-295, May.
    20. Madina Rival & Richard Major, 2018. "What Lobbying Ethics and What for? The Case of French Lobbying Consulting Firms," Post-Print halshs-02900029, HAL.
    21. Blanche Segrestin & Armand Hatchuel & Kevin Levillain, 2021. "When the Law Distinguishes Between the Enterprise and the Corporation: The Case of the New French Law on Corporate Purpose," Post-Print hal-02465609, HAL.
    22. John Christensen & Richard Murphy, 2004. "The Social Irresponsibility of Corporate Tax Avoidance: Taking CSR to the bottom line," Development, Palgrave Macmillan;Society for International Deveopment, vol. 47(3), pages 37-44, September.
    23. David Ciepley, 2019. "Can Corporations Be Held to the Public Interest, or Even to the Law?," Journal of Business Ethics, Springer, vol. 154(4), pages 1003-1018, February.
    24. Chyz, James A. & Ching Leung, Winnie Siu & Zhen Li, Oliver & Meng Rui, Oliver, 2013. "Labor unions and tax aggressiveness," Journal of Financial Economics, Elsevier, vol. 108(3), pages 675-698.
    25. Matthew Altman, 2007. "The Decomposition of the Corporate Body: What Kant Cannot Contribute to Business Ethics," Journal of Business Ethics, Springer, vol. 74(3), pages 253-266, September.
    Full references (including those not matched with items on IDEAS)

    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. Francesco Scarpa & Silvana Signori, 2023. "Understanding corporate tax responsibility: a systematic literature review," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 14(7), pages 179-201, June.
    2. Martin Jacob & Anna Rohlfing-Bastian & Kai Sandner, 2021. "Why do not all firms engage in tax avoidance?," Review of Managerial Science, Springer, vol. 15(2), pages 459-495, February.
    3. Guangyong Lei & Wanwan Wang & Junli Yu & Kam C. Chan, 2022. "Cultural Diversity and Corporate Tax Avoidance: Evidence from Chinese Private Enterprises," Journal of Business Ethics, Springer, vol. 176(2), pages 357-379, March.
    4. Robert Bird & Karie Davis-Nozemack, 2018. "Tax Avoidance as a Sustainability Problem," Journal of Business Ethics, Springer, vol. 151(4), pages 1009-1025, September.
    5. Christofer Adrian & Mukesh Garg & Anh Viet Pham & Soon-Yeow Phang & Cameron Truong, 2023. "Do Natural Disasters Affect Corporate Tax Avoidance? The Case of Drought," Journal of Business Ethics, Springer, vol. 186(1), pages 105-135, August.
    6. Anne Van de Vijver & Danny Cassimon & Peter-Jan Engelen, 2020. "A Real Option Approach to Sustainable Corporate Tax Behavior," Sustainability, MDPI, vol. 12(13), pages 1-17, July.
    7. Xi Zhong & Liuyang Ren & Ge Ren, 2023. "Performance shortfall, institutional logic and firms’ tax avoidance," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(4), pages 855-886, December.
    8. Kiridaran Kanagaretnam & Jimmy Lee & Chee Yeow Lim & Gerald J. Lobo, 2018. "Cross-Country Evidence on the Role of Independent Media in Constraining Corporate Tax Aggressiveness," Journal of Business Ethics, Springer, vol. 150(3), pages 879-902, July.
    9. Schochet, Sholom & Benlemlih, Mohammed & Jaballah, Jamil, 2022. "Is corporate tax avoidance related to employee treatment?," Journal of Empirical Finance, Elsevier, vol. 69(C), pages 63-80.
    10. Behnam Karamshahi & Zeinab Azami & Tabandeh Salehi, 2018. "The association between competition power in markets and tax avoidance: evidence from Tehran stock exchange," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 8(3), pages 323-339, September.
    11. 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).
    12. M.A. Gulzar & Jacob Cherian & Muhammad Safdar Sial & Alina Badulescu & Phung Anh Thu & Daniel Badulescu & Nguyen Vinh Khuong, 2018. "Does Corporate Social Responsibility Influence Corporate Tax Avoidance of Chinese Listed Companies?," Sustainability, MDPI, vol. 10(12), pages 1-12, December.
    13. Müller, Raphael & Spengel, Christoph & Vay, Heiko, 2020. "On the determinants and effects of corporate tax transparency: Review of an emerging literature," ZEW Discussion Papers 20-063, ZEW - Leibniz Centre for European Economic Research.
    14. 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.
    15. Chyz, James A. & Eulerich, Marc & Fligge, Benjamin & Romney, Miles A., 2023. "Codetermination and aggressive reporting: Audit committee employee representation, tax aggressiveness, and earnings management," Journal of International Accounting, Auditing and Taxation, Elsevier, vol. 51(C).
    16. Nicola Branzoli & Antonella Caiumi, 2020. "How effective is an incremental ACE in addressing the debt bias? Evidence from corporate tax returns," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 27(6), pages 1485-1519, December.
    17. Patrick Emmenegger, 2017. "Swiss banking secrecy and the problem of international cooperation in tax matters: A nut too hard to crack?," Regulation & Governance, John Wiley & Sons, vol. 11(1), pages 24-40, March.
    18. 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.
    19. 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.
    20. Kudrle, Robert T., 2021. "Moves and countermoves in the digitization challenges to international taxation," Technology in Society, Elsevier, vol. 64(C).

    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:181:y:2022:i:1:d:10.1007_s10551-021-04911-3. 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.