EIGHTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E
s. No. 656
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Introduced by SENATOR RAMON BONG REVILLA, JR.
AN ACT
ENCOURAGING CORPORATE SOCIAL RESPONSIBILITY, PROVIDING 
INCENTIVES THEREFORE, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Business organizations now take in new roles in carrying out programs 
that promote greater social responsibility. A number of huge corporations not 
just in the Philippines, but also worldwide, are now practicing Corporate Social 
Responsibility (CSR), creating impact in deprived communities and environments.
As defined by the World Bank Institute, CSR is a "commitment of business 
to contribute to sustainable economic development, working with employees, 
their families, the local community and society at large to improve quality of life, 
in ways that are both good for business and good for development."
CSR may be a cost-effective measure to promote and enhance 
development strategies of the government. It is seen, however, that although 
the concept of CSR has widely covered a range of programs of businesses, CSR 
initiatives have not yet taken a hold in a lot of corporations and other business 
organizations in the country.


This bill institutionalizes the conduct of corporate social responsibility in 
companies, defining its scope and incentivizing its practice. Through this bill, all 
business organizations are mandated to take into consideration the interest of 
society by taking responsibility for the impact of their activities on customers, 
employees, shareholders. It is hoped that through this bill, sustainable economic 
and environment development and protection be fostered.
sought
In view of the foregoing, passage of this important measure is earnestly
RAMO^BONG REVILLA, JR.


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E
s. No. 656
ot tj)f feu’crrtnrp
*19' JUL22 P2 ;03
Introduced by SENATOR RAMON BONG REVILLA, JR.
BLCLIV.UI.
AN ACT
ENCOURAGING 
CORPORATE 
SOCIAL 
RESPONSIBILITY, 
PROVIDING 
INCENTIVES THEREFORE, AND FOR OTHER PURPOSES
Be it enacted by the Senate and the House o f Representative o f the Philippines in 
Congress assembled:
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Section 1. Short Title. -  This Act shall be known as the "Corporate Social
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Responsibility Act of 2019."
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Sec. 2. Declaration o f 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 mobilize its various agencies, in 
coordination with non-government and people's organizations, to work hand in hand 
for the integration, promotion, and strengthening of corporate social responsibility in 
all business organizations.
Sec. 
3. 
Corporate Social Responsibility. — All 
business organizations 
established and operating under Philippine laws, whether domestic or foreign, are 
hereby encouraged to observe corporate social responsibility (CSR) in the operation 
of their business in the country
For purposes of this Act, 
"corporate social responsibility" refers to the 
commitment of business to contribute on a voluntary basis to sustainable economic 
development by working with relevant stakeholders to improve their lives in ways


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that are good for business, sustainable development agenda and society at large. 
CSR-related activities shall include, but not be limited to, the following:
a. Charitable programs and projects;
b. Scientific research;
c. Youth and sports development;
d. Cultural or educational promotion;
e. Services to veterans and senior citizens;
f. Social welfare;
g. Environmental sustainability;
h. Health development;
i. 
Disaster relief and assistance; and
j. 
Employee and worker welfare related CSR activities
Sec. 4. Deduction from Unrestricted Retained Earnings. -  To encourage 
companies to engage in CSR, Section 43 of Batas Pambansa Big. 68, otherwise 
known as the Corporation Code of the Philippines" is hereby amended to read as 
follows:
"Sec. 43 Power to declare dividends. -
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Stock corporations are prohibited from retaining surplus profits in 
excess of one hundred (100%) percent of their paid-in capital 
stock, except: (1) when justified by definite corporate expansion 
OR CORPORATE SOCIAL RESPONSIBILITY projects and 
programs approved by the board of directors; or (2) when the 
corporation is prohibited under any loan agreement with any 
financial institution or creditor, whether local or foreign, from 
declaring dividends without its/his consent, and such consent has 
not yet been secured; or (3) when it can clearly show that such 
retention is necessary under special circumstances obtaining in the 
corporation, such as when there is need for special reserve for 
probable contingencies.
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Sec. 5. Full Deductibility from Gross Income. -  Nothing herein shall be
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deemed to amend or modify Section 34 (H) of Republic Act No. 8424 otherwise


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known as the "Tax Reform Act of 1997" relative to the full deductibility of 
contributions or gifts actually paid or made to accredited donee institutions in 
computing taxable income which shall continue to be in force and effect.
Sec. 6. Awards and Recognition. -  The State, through the Department of 
Trade and Industry shall give national recognition and rewards to all business 
organizations for outstanding, innovative and world-class CSR-related activities, 
projects and programs. It shall likewise extend endorsements and encouragement to 
domestic and foreign corporations doing business in the Philippines who are 
candidates for recognition in international award-giving bodies for their CSR-related 
activities.
Sec. 7. Local Government Units. -  All local government units where CSR- 
related activities are conducted shall extend whatever assistance is necessary for 
business organizations to perform their CSR.
Sec. 8. Periodic Report. -  All business organizations shall submit the list of 
their CSR activities as part of their annual or regular report to the Securities and 
Exchange Commission, the Department of Trade and Industry, or the Department of 
Finance, as the case may be.
Sec. 9. Implementing Rules and Regulations. -  The Secretary of Finance 
shall, in coordination with the Department of Trade and Industry and Securities and 
Exchange 
Commission, 
promulgate 
rules and 
regulations for the 
effective 
implementation of this Act and shall monitor strict compliance therewith.
Sec. 10. Separability Cause. -  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. 11. Repealing Cause. -  Section 43 of Batas Pambansa Big. 68 is 
hereby amended. All laws, decrees, orders, rules and regulations, and other 
issuances, or parts thereof, inconsistent with this Act are hereby repealed or 
modified accordingly.


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Sec. 12. Effectivity Clause. -  This Act shall take effect fifteen (15) days afte 
publication in the Official Gazette or in two (2) national newspapers of general 
circulation.
Approved,