TY - JOUR

T1 - Corporate social responsibility (CSR) decoupling and tax avoidance.

T2 - Symbolic use of sustainable boards in the European Union?

AU - Velte, Patrick

N1 - Publisher Copyright: © 2025 The Author(s). Corporate Social Responsibility and Environmental Management published by ERP Environment and John Wiley & Sons Ltd.

PY - 2025/3/16

Y1 - 2025/3/16

N2 - This study explores the relationship between corporate social responsibility (CSR) decoupling and tax avoidance, as well as the moderating effect of sustainable boards on this relationship. Based on agency and legitimacy theories, we used panel data of listed firms headquartered in the European Union (2076 firm-year observations) in the 2017–2022 fiscal period. In line with the theoretical framework and based on several regression analyses, we found that CSR decoupling and tax avoidance were significantly positively related. In line with the assumption of a symbolic, sustainable boards strengthen this relationship. The results remained consistent following several robustness tests and endogeneity checks. The study mainly contributes to the literature by raising awareness about the relationship between CSR and tax avoidance. To the best of our knowledge, this is the first empirical study on the link between CSR decoupling and tax avoidance and the moderating effect of sustainable boards. Future research should determine the impact of the sub-pillars of CSR decoupling and evaluate tax disclosure in CSR reports. Corporations should promote integrated tax and sustainability management as substantive stakeholder tools.

AB - This study explores the relationship between corporate social responsibility (CSR) decoupling and tax avoidance, as well as the moderating effect of sustainable boards on this relationship. Based on agency and legitimacy theories, we used panel data of listed firms headquartered in the European Union (2076 firm-year observations) in the 2017–2022 fiscal period. In line with the theoretical framework and based on several regression analyses, we found that CSR decoupling and tax avoidance were significantly positively related. In line with the assumption of a symbolic, sustainable boards strengthen this relationship. The results remained consistent following several robustness tests and endogeneity checks. The study mainly contributes to the literature by raising awareness about the relationship between CSR and tax avoidance. To the best of our knowledge, this is the first empirical study on the link between CSR decoupling and tax avoidance and the moderating effect of sustainable boards. Future research should determine the impact of the sub-pillars of CSR decoupling and evaluate tax disclosure in CSR reports. Corporations should promote integrated tax and sustainability management as substantive stakeholder tools.

KW - CSR decoupling

KW - legitimacy theory

KW - sustainability-related executive compensation

KW - sustainable board

KW - sustainable board committee

KW - tax avoidance

KW - Management studies

UR - http://www.scopus.com/inward/record.url?scp=105000226316&partnerID=8YFLogxK

U2 - 10.1002/csr.3172

DO - 10.1002/csr.3172

M3 - Journal articles

JO - Corporate Social Responsibility and Environmental Management

JF - Corporate Social Responsibility and Environmental Management

SN - 1535-3958

ER -