Abstract: in this article, based on the data for 33 companies in the Russian Federation for 2019, an analysis of governmental policy directed to promote responsible and sustainable business practices through tax incentives is carried out. The study found that companies use tax incentives to implement socially responsible behavior, in particular, it was shown that with a decrease in the effective tax rate, the company’s CSR rating rises. That is, companies hedge reputational risks, in case of smaller amounts of taxes paid, through social benefits. This also suggests that companies are viewed by the public as sources of social benefits. Thus, it emphasizes the effectiveness of tax incentives for CSR in the Russian Federation and, in general, the importance of governmental participation in the formation of responsible behavior among Russian companies.
Keywords: corporate social responsibility, public policies, company motivation, tax incentives, effective tax rate