EVOLUTION OF THE CONCEPT OF BUSINESS TAX RESPONSIBILITY IN THE CONTEXT OF THE ESG APPROACH

Abstract

Introduction. In recent years, the issue of business tax responsibility has gone beyond the traditional legal framework and entered the sphere of ethical and sustainable governance. This transformation is largely driven by the increasing role of ESG (Environmental, Social, Governance) factors in shaping the expectations of stakeholders regarding corporate transparency and integrity. Tax policy, previously perceived as a technical function aimed at optimizing tax liabilities, is now considered a critical component of reputational capital, sustainability, and stakeholder trust. The tax strategies of companies are being evaluated not only for their compliance with the law but also for their alignment with social norms, ethical standards, and environmental goals. Purpose. The purpose of this study is to develop a theoretical framework for understanding business tax responsibility in the context of the ESG approach, to identify how ESG factors transform fiscal behavior, and to substantiate the author's concept of a post-ESG model of tax compliance. Methods. The methodological basis of the study combines interdisciplinary approaches, including normative legal analysis, economic evaluation of tax behavior models, behavioral economics, and the study of non-financial corporate reporting. Content analysis of ESG disclosures and the integration of GRI 207: Tax data were also applied to assess the extent of tax transparency and ethical tax practices. Results. The study revealed that ESG factors, particularly the “G” component (Governance), significantly influence the redefinition of corporate tax practices. A transition is observed from traditional tax minimization strategies toward socially driven tax optimization, based on transparency, cooperation with tax authorities, and the rejection of aggressive planning. Emphasis is placed on incorporating tax information into non-financial reports and adopting new forms of stakeholder accountability. The article proposes a new conceptual model – post-ESG tax responsibility – which repositions transfer pricing from a technical tool of tax allocation to a mechanism of ethical fiscal behavior. The post-ESG model reflects a shift toward voluntary transparency, reputational risk management, and the strategic integration of tax ethics into corporate sustainability frameworks. Conclusion. It is concluded that business tax responsibility is evolving into a multidimensional construct encompassing legal, ethical, and social dimensions. The ESG-driven transformation of tax strategies opens new prospects for regulatory reform, including the institutionalization of tax transparency standards, revision of transfer pricing principles, and alignment of tax policies with sustainable development goals. Further studies should focus on empirical assessment of the relationship between ESG compliance levels and actual corporate tax behavior, especially in transfer pricing, to provide a more robust foundation for sustainable fiscal governance.