94 B.U. L. Rev. 337 (2014)
Fairer Shores: Tax Havens, Tax Avoidance, and Corporate Social Responsibility

handle is hein.journals/bulr94 and id is 343 raw text is: 







  FAIRER SHORES: TAX HAVENS, TAX AVOIDANCE, AND
           CORPORATE SOCIAL RESPONSIBILITY

                          Jasmine M Fisher*



IN TROD UCTION ............................................................................................... 338
    I. TAx AVOIDANCE AND TAX HAVENS ................................................... 339
      A.   What Is Tax Avoidance (Versus Tax Evasion) ............................. 339
      B.   The Particular Problems Posed by Tax Havens .......................... 342
      C. Factors Motivating MNCs to Avoid Taxes .................................. 346
   II. HOW THE CSR DOCTRINE CAN HELP .................................................. 349
      A .  W hat Is  C SR ? ............................................................................... 350
      B.   Why Is Tax Avoidance a CSR Issue? ........................................... 352
  III. How TAX AVOIDANCE AND ESPECIALLY TAX HAVENS HARMS
      CORPORATIONS AND THEIR SHAREHOLDERS ...................................... 354
      A. Harms to the Corporation and Its Shareholders ......................... 354
           1. Harm to Corporate Reputation  .............................................. 354
           2. Encouraging Other Subversive Activities by
              M anagem ent .......................................................................... 355
      B.   Tax Avoidance Harms National Governments ............................ 356
           1. D eveloped  N ations  ................................................................ 356
           2. D eveloping  N ations ............................................................... 358
  IV. SOLUTIONS FOR INCORPORATING THE ANTIAVOIDANCE DOCTRINE
      INTO CORPORATE POLICY AND CHANGING CORPORATE TAX
      A VOIDANCE CULTURE  ......................................................................... 359
      A . Consum er A ctivism   ...................................................................... 360
      B . Investor Infl uence  ........................................................................ 362
      C.   Voluntary Corporate Leadership ................................................. 363
C ON CLU SIO N   ................................................................................................... 365

  Despite the U.S. public's tolerance of and emotional attachment to tax
avoidance at the individual level, the tax avoidance practices of modern
multinational corporations such as Google, Amazon, Apple, and Starbucks
recently have received heavy criticism in the media. This Note argues that the
doctrine of corporate social responsibility provides a logical rationale for
multinational corporations to adopt antiavoidance practices, in that the harm
caused by tax avoidance outweighs any financial benefit that accrues from
these practices. Contrary to the views of some corporate leaders, tax
avoidance can cause long-term harm to corporations and their shareholders
by damaging corporate reputations and branding efforts, and also by diverting


  * J.D. Candidate, Boston University School of Law, 2014.

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