This study examines whether companies committed to CSR and ESG principles adopt less aggressive tax strategies or, conversely, use CSR and ESG disclosures to obscure tax minimisation practices. The findings indicate a nuanced relationship: companies with strong ESG practices generally display more transparent tax disclosures, aligning tax conduct with corporate integrity and enhancing stakeholder trust. However, instances of “greenwashing” persist, where firms selectively disclose favourable ESG information while engaging in tax avoidance. This research contributes to the literature by integrating legitimacy and agency theories to elucidate the ethical tensions and strategic contradictions in aligning tax practices with responsible business commitments. By highlighting the importance of tax transparency and standardised ESG disclosures, the study offers insights into how firms can align tax practices with societal expectations.

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ESG reporting · Tax aggressiveness · Transparency

• Ciências da Computação e da Informação - Ciências Naturais
• Engenharia Civil - Engenharia e Tecnologia

Esta publicação está associada ao registo seguinte:

• Transparency and Tax: Examining the tension between ESG reporting and tax ag-gressiveness