Proceedings of the International Association for Business and Society

Volume 26, 2015

Proceedings of the Twenty-Sixth Annual Meeting

Duane Windsor
Pages 142-154

Public Policy Avoidance
Economic Patriotism and Social Responsibility in Corporate Inversion, Other Tax Avoidance, and Regulatory Haven Decisions

This paper explores whether and if so why virtuous behavior, good citizenship, and justice theory reach a limit when applied to legal tax and regulatory avoidance. A general conception of public policy avoidance includes such instances as corporate inversion, other tax avoidance, and regulatory haven decisions. These instances are legally permissible choices, but subject to moral and political criticism intended to promote voluntary self-regulation and changes in public policy strengthening regulatory controls. Economic patriotism and corporate social responsibility arguments call for voluntary self-regulation by companies in advance of public policy changes.