Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

(ee 1224
House Bill'No.

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
INSTITUTIONALIZING CORPORATE SOCIAL RESPONSIBILITY, PROVIDING
INCENTIVES THEREFOR, AND FOR OTHER PURPOSES

EXPLANATORY NOTE

Corporate Social Responsibility or CSR 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". Companies, be it big or small, have come up with their own
CSR programs and have used it as an effective tool in improving their public
relations with concerned stakeholders.

It is observed, however, that despite this, many corporations and other
business organizations have shown very little care 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 corporate social responsibility in corporations, whether domestic
or foreign, partnership and other establishment performing business in the
country. Under 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 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
earnestly recommended.

DIOSDADO MACAPAGAL ARROYO GLO! MACAPAGAL ARROYO
Second District, Camarines Sur cond District, Panipanga

v


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

e- 224
House Bill No. ~

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

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 2010.”

SECTION 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.

SECTION 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.


SECTION 4. Deductibility. — All expenses incurred by any corporation in
the exercise of its corporate social responsibility shall be fully deducted from its
gross income.

SECTION 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.

SECTION 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,

SECTION 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

SECTION 8. Repealing Clause. — All laws, decrees, executive issuances,

tules and regulations inconsistent with this Act are hereby repealed or modified
accordingly.

SECTION 9. Effectivity Clause. - This Act shall take effect after fifteen
(15) days following its publication in two (2) newspapers of general circulation.

Approved,