Why Social Responsible Corporations Should Take Tax Seriously

Abstract

Tax systems biased to powerful and wealthy (corporate) citizens contributed to economic stagnation, increasing inequality of income and wealth, and erosion of social cohesion, democratic legitimacy and public trust. Why and to what extent requires the foundational nature of taxes corporations to see paying a fair share of taxes as one of their main social responsibilities? Corporations bear co-responsibility for a sustainable tax system. Paying taxes is a moral obligation to society. CSR corporations should abstain from minimalist, irresponsible tax behavior since they voluntarily accept ethical obligations that entail going beyond what is required by the law. This regards substantive and procedural (transparency) legal obligations.