We Hope CSR is Not Just an Image: The Role of Tax Aggressiveness and Firm Characteristics

The Triple Bottom Line perspective is expected to drive the company to realize business sustainability. Sustainability directs companies to focus on company involvement in paying attention to stakeholder interests. The phenomenon of CSR makes financial data a means of imaging companies with both positive and negative motivations found in increasing information asymmetry in the public. This study examined the effect of tax aggressiveness, size, profitability, and MBV on CSR disclosure in manufacturing companies listed on the IDX from 2017–2019. The data collection technique is done by purposive sampling, totaling 30 companies that meet the criteria. The results show that partially tax aggressiveness, company size, and MBV positively influence CSR disclosure. The existence of CSR disclosure is a means for companies to gain legitimacy from society by realizing a positive image of the corporate. A good image can increase stakeholder confidence in assessing the company's sustainable performance, but on the other hand, CSR disclosure can be manipulated by companies for tax avoidance purposes. For this reason, companies are expected to be able to report appropriate and correct environmental and social costs to support the green movement in Indonesia purely.