Corporate Social Responsibility and Tax Avoidance in Sub-Saharan Africa - A Case Study of the Beverage Manufacturing Sector

Rasmus Torpe Hansen

Studenteropgave: Speciale


To this date, the tax-CSR-nexus has mainly been analysed through regression studies examining the global-level data of major multinational corporations and is currently not well documented in specific developing countries and regions. Based on the CSR disclosure and annual reports for the Sub-Saharan African subsidiaries of three major beverage companies, I analyse the connection between the companies’ CSR initiatives on the one side and their tax avoidance behaviour on the other. Globally, I find that the CSR and tax avoidance of the three companies seem inversely related – the poorest CSR performer has the highest tax contribution and vice versa. On the regional level however, trends seem ambiguous indicating that a connection between CSR and tax avoidance may vary substantially even within company groups. Developmentally, my analysis show that the inclusion of tax avoidance parameters into companies’ CSR reporting may have significant implications for government expenditure in Sub-Saharan Africa. In Rwanda for example, seven years of corporate income tax payments by Heineken alone were equivalent to almost 40% of the entire country’s health budget in 2012. Potentially decreasing tax avoidance behaviour, by acknowledging tax payments as part of companies’ CSR achievements, may therefore help assure much needed government revenue.

UddannelserInternationale Udviklingsstudier, (Bachelor/kandidatuddannelse) KandidatVirksomhedsstudier, (Bachelor/kandidatuddannelse) Kandidat
Udgivelsesdato1 aug. 2015
VejledereLars Buur


  • tax aggresiveness
  • CSR
  • Heineken
  • SABMiller
  • corporate social responsibility
  • tax revenue ratio
  • Diageo
  • Sub-Saharan Africa
  • case study
  • effective tax rate
  • transfer pricing
  • profit shifting
  • Global Reporting Initiative
  • developing countries
  • tax avoidance
  • low-income countries
  • tax evasion
  • beer
  • tax planning