“In a recent paper, we argue that amidst the enthusiasm about ESG, a critical parameter has gone virtually unnoticed: corporate tax behavior. The payment of corporate taxes is a powerful indicator of how a company views its role in society and supports the communities in which it operates and the stakeholders with whom it engages.”

[COMMENTARY] This is the first time I’ve seen a coherent argument as to why the tax-paying characteristics of a company should be considered in the same way we consider a company’s ESG credentials. That is, they might only be considered good corporate citizens if they pay their fair share of taxes! Many ‘responsible investors’ are unaware that many of their favorite tech companies pay little or no corporate taxes!
The Missing “T” in ESG, by Danielle Chaim (Bar-Ilan University), and Gideon Parchomovsky (Hebrew University of Jerusalem). May 8, 2024, Harvard Law School Forum on Corporate Governance, USA.