FOURTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S E N A T E  
S.B. NO. __ 
1928 
Introduced by Senate President Manny Villar 
EXPLANATORY NOTE 
Corporate Social Responsibility is defined by the World Bank as 
"the commitment of business to behave ethically and to contribute to 
sustainable economic development by working with all 
relevant 
stakeholders to improve their lives in ways that are good for business, 
the sustainable development agenda, and society at large". 
It is 
observed, however, 
that many corporations and other business 
organizations really care little for the welfare of society, community where 
they operate and the natural environment around them. Their sole 
purpose is to maximize their respective returns on investment totally 
disregarding the impact of their activities on customers, employees, 
shareholders, communities and environment. 
This bill, therefore, seeks to foster sustainable economic and 
environment development and environment protection, among other 
things, by institutionalizing the corporate social responsibility of 
corporations, whether domestic or foreign, partnership and other 
establishment performing business in the country. Under this bill, all 
business organizations are mandated to consider the interest of society 
by taking responsibility for the impact of their activities on customers, 
employees, shareholders communities and environment. 
In return, 
businesses which shall comply with the mandate of this proposed 
measure shall be entitled to full deductions of the expenses incurred in 
connection thereto. 
In view of the foregoing, the enactment of this piece of legislation is 
highly recommended. 


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I ; 7s 1 
FOURTEENTH CONGRESS OF THE REPUBLIC ) 
a 
‘” 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S.B. NO. a 2 8  
Introduced by Senate President Manny Villar 
AN ACT 
INSTITUTIONALIZING 
CORPORATE 
SOCIAL 
RESPONSIBILITY, 
PROVIDING INCENTIVES THEREFOR, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and 
House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the 
“Corporate Social Responsibility Act of 2007”. 
SEC. 2. Declaration of Policy. - The State recognizes the vital 
role of the private sector in nation building and shall encourage its active, 
participation in fostering sustainable economic development and 
environment protection in the Philippines. Towards this end, the 
government shall coordinate its various agencies and non-government 
organization to work hand in hand for the integration, promotion, and 
strengthening of 
corporate social responsibility in all business 
organization. 
SEC. 3. 
Corporate Social Responsibility. 
Any corporation, 
whether domestic or foreign, partnerships and other establishments 
performing business in the country are hereby mandated to observe its 
corporate social responsibility or the obligation to consider the interests 
of society by taking responsibility for the impact of their activities on 
customers, employees, shareholders, communities and the environment 
in all aspects of their operations. 


SEC. 4. Deductibility. All expenses incurred by any corporation 
in the exercise of its corporate social responsibility shall be fukly 
deducted from its gross income. 
SEC. 5. Periodic Report. - All corporations and other business 
organizations shall submit their annual report of activities relative to 
their corporate social responsibility not later than January 31 of each ' 
year. 
SEC. 6. Implementing Rules and Regulations. - The Department 
of Trade and Industry shall, in coordination with the Securities and 
Exchange Commission, the Department of Environment and Natural 
Resources and the Department of Labor and Employment shall 
promulgate rules and regulates for the effective implementation of this 
Act and shall regularly monitor strict compliance therewith. 
- The Department of Trade and Industry shall, in coordination with t 
SEC. 7. Separability Clause. - If any provision of this Act is 
declared invalid or unconstitutional, the remaining provisions not 
affected thereby shall continue in full force and effect. 
SEC. 8. 
Repealing Clause. - All laws, decrees, executive 
issuances, rules and regulations inconsistent with this Act are hereby 
repealed or modified accordingly. 
SEC. 9. Effectivity Clause. - This Act shall take effect after 
fifteen (15) days following its publication in two (2) newspapers of general 
circulation. 
Approved,