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Corporate behavior: an exploratory study of the Brazilian tax management from a corporate social responsibility perspective

Journal
Corporate income tax Corporate social responsibility Business ethics Construction industry Brazil
Description

A look into the literature on corporate social responsibility (CSR) reveals few studies focusing on the relationship between ethical concerns and corporate behaviour of companies that perform tax evasion management. This study links tax management with ethics and CSR reporting. The purpose of this article is to analyse financial and social responsibility information disclosed by the five main Brazilian construction companies that are being investigated in Brazil’s Operation Car Wash (Operação Lava-Jato—in Portuguese) because of inappropriate behaviour. Based on the theoretical concepts of organisational façades and organised hypocrisy, we used content-analysis methodology and lexical search approach to analyse the consistency between the practices of tax management and CSR reporting. The results reveal evidence of aggressive tax management. To meet its tax management objectives, a company usually manages and plans taxes accordingly, delaying the payment of tax debt and not reporting all tax risks, thus being fined for violations of the law. We found evidence of organised hypocrisy and organisational façades, since there are contradictions between the tax behaviour of the investigated companies and their CSR and ethical discourse.

Publication Details
Peer Reviewed:
Yes
DOI:
10.3390/su12114404
License type:
CC BY
Access Rights Type:
open
Volume:
12
Issue:
11