ESG and Tax Disclosure and Corporate Communication: Evidence from Social Media Data

This paper examines how large corporations disclose ESG and tax‑related information via social media and how do they use this disclosure during tax‑related scandals. In recent years corporate reporting has been shaped by increasing expectations that businesses demonstrate accountability not only for financial performance but also for their environmental, social and governance (ESG) impacts. At the same time, taxation has emerged as a salient ESG sub‑topic, as aggressive tax planning and opaque tax structures can undermine firms’ social licence to operate and trigger reputational crises. Quantitative research of data base of official social media posts of Fortune Top 200 and S&P 100 companies on Facebook and X (formerly Twitter) from 2014 to 2020 and qualitative content analysis of the social media communication during major public events about illegal tax evasion or tax fraud define patterns of ESG and tax-related corporate social media communication. The study evidence that companies use social media to shape impression management, send low-cost positive signal to investors and stakeholders and as a legitimacy repair tool during major tax controversies.