Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO.  1318 
Introduced by Representative MARLYN L. PRIMICIAS-AGABAS 
EXPLANATORY NOTE 
Section 20, Article II of the 1987 Constitution states: "The State recognizes the 
indispensable role of the private sector, encourages private enterprise, and provides 
incentives to needed investments." 
This recognition, herein provided by this Constitutional provision, conies hand-in- hand 
with the social and ethical responsibility that the state advocates on behalf of the private 
sector, which is implied by the laws sanctioning the private sector in any offenses 
directed against its mandated social responsibility to the state and the general public. 
Corporate social responsibility (CSR), as defined by the World Bank, refers to the 
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 covers a 
wide range of issues relating to business conduct, from corporate governance and 
environmental protection, to issues of social inclusion, human rights and national 
economic development.1 
This bill seeks to institutionalize corporate social responsibility7 in corporations, 
partnership, and other establishments performing business in the country, whether 
domestic or foreign. Through this proposed measure, business entities are mandated
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to prioritize the interest of the society by re-evaluating and recalibrating their actions 
which would impact their customers, employees, shareholders, communities, and 
environment In addition, such legislation would entitle these business entities with 
incentives of deductions on the expenses incurred in the exercise of their CSR mandate. 
In view of the foregoing, approval of this bill is earnestly sought. 
MARLYN L. PRIMICIAS-AGABAS 


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
TWENTIETH CONGRESS 
First Regular Session 
HOUSE BILL NO.  1318
Introduced by Representative MARLYN L. PRIMICIAS-AGABAS 
AN ACT 
ENCOURAGING 
CORPORATE 
SOCIAL 
RESPONSIBILITY, 
PROVIDING 
INCENTIVES THEREFOR 
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". 
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 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 in the operation of their 
businesses in the country. 
As used in this Act, corporate social responsibility (CSR) 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 that are good for 
business, sustainable development agenda and society at large. CSR- related activities 
shall include 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; 
j. Socialized and low-cost housing; and 
k. Employee and worker related CSR activities. 
All business organizations are allowed to donate products and services under 
their CSR-related activities for disaster relief and assistance, in accordance with the 
regulations to be issued by the appropriate government agency. All existing laws and 
regulations restricting or prohibiting the right of local government units under a state of 
calamity and/or during a national emergency to solicit or accept any donation of products 
and services under the CSR-related activities for disaster relief and assistance of a 
business organization are hereby amended. 
SEC. 4. Deduction from Unrestricted Retained Earnings. - To encourage 
companies to engage in CSR, Section 42 of Republic Act No. 11232, otherwise known 
as the "Revised Corporation Code of the Philippines" is hereby amended to read as 
follows: 
"SEC. 42. Power to Declare Dividends. - x x x 
"Stock corporations are prohibited from retaining surplus profits in excess 
of one hundred percent (100%) of their paid-in capital stock, except: (a) 
when justified by definite corporate expansion OR FOR DEFINITE 
CORPORATE SOCIAL RESPONSIBILITY (CSR) projects or programs 
approved by the board of directors; or (b) when the corporation is prohibited 
under any loan agreement with financial institutions or creditors, whether 
local or foreign, from declaring dividends without their consent, and such 
consent has not yet been secured; or (c) when it can be clearly shown that 
such retention is necessary under special circumstances obtaining in the 
corporation, such as when there is need for special reserve for probable 
contingencies.'1 
SEC. 5. Awards and Recognition. - The Department of Trade and Industry (DTI) 
shall recognize and reward all business organizations for outstanding, innovative and 
world-class CSR-related services, projects and programs. It shall likewise extend 
endorsement and encouragements to domestic and foreign corporations doing business 
in the Philippines which are candidates for recognition in international award-giving 
bodies for their CSR-related activities. 
SEC. 6. Local Government Units. - All local government units where CSR-related 
activities are conducted shall extend whatever assistance is necessary for business 
organizations to accomplish their CSR programs and projects and shall encourage 
business organizations within their territorial jurisdiction to conduct CSR projects 
/activities. 


SEC. 7. 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 (SEC), DTI, or the Department of Finance, as the case may be. 
SEC. 8. Implementing Rules and Regulations. - Within sixty (60) days after the 
effectivity of the Act, the Secretary of Finance shall, in coordination with DTI and the 
SEC, promulgate rules and regulations for tire effective implementation of this Act. 
SEC. 9. 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. 10. Repealing Clause. - Section 42 of Republic Act No. 11232 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. 
SEC. 11. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
Approved,