Corporate social responsibility in transfer pricing strategies
DOI:
https://doi.org/10.31617/zt.knute.2022(122)01Keywords:
transfer pricing, corporate social responsibility, sustainable development goals, international group of companies, military aggressionAbstract
Introduction. International groups of companies (IGCs) have significant economic, environmental, and social impacts on the region of presence. The most powerful mechanism for influencing regional development is IGC payments to the state.
Problem. The object of the study was selected by IGC, which did business in Russia in early 2022.
The aim of the article is to analyze the transfer pricing strategy of the IGCs in the context of their implementation of the principles of corporate social responsibility, achieving the Sustainable Development Goals (SDGs) and, in particular, promoting peace and preventing military aggression.
Methods. The chosen research methodology involves the analysis of data on the activities of the IGC in terms of the strategy of the transfer pricing, promoting the implementation of the SDGs, and corporate social responsibility.
Results. The connection between the transfer pricing strategy and the level of achievement of the SDGs and, first of all, peace in the region of the IGC presence is analyzed. An analysis of OECD and UN statistics on the presence of IGC subsidiaries in Russia and its sustainable development was conducted. The discrepancy between the assessments of the achievement of the SDG 16 «Peace, Justice and Strong Institutions» in Russia’s foreign economic policy is shown. A dissonance between the statements of social responsibility of some IGCs and their reaction to Russia’s military aggression is identified. The necessity of adjusting the approaches to determining the transfer pricing strategy and assessing the level of achievement of the SDGs is proved.
Conclusions. The global system of business taxation and transfer pricing policy is able to solve not only purely economic problems, but also counteract any threats to the future of mankind and promote its sustainable development. Improving the methodology for determining progress toward the SDGs requires an adequate assessment of the compliance of the SDG 16 «Peace, Justice and Strong Institutions». In expanding the geography of its economic interests in the future, the IGC should use new approaches to assessing the business climate in the region, taking into account the factor of war and peace.
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