The role of Corporate Social Responsibility (CSR) disclosure in suppressing tax avoidance

Abstract

This study examines how CSR disclosure can reduce tax avoidance that may be carried out by companies. It is understandable that the purpose of establishing a company is to gain profit and recognition in the realm of stakeholders and society. On the other hand, in the company's production and operational activities, it certainly has an impact on the surrounding environment and in general. Because of this, companies are required to carry out CSR activities. Viewed from the theory of legitimacy, companies in disclosing CSR activities have the hope of getting recognition from the community that the company has actually fulfilled its obligations. In addition to obligations to the surrounding environment, companies are also required to be responsible for tax obligations seen from the company's compliance in taxation and the company's low efforts to avoid taxes. This study tested 201 samples of companies in the food and beverage sector, using multiple linear regression tests, and obtained results that CSR disclosure had a significant effect on the low tax avoidance carried out by companies.