Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ______ 
INTRODUCED BY REP. HARRIS CHRISTOPHER M. ONGCHUAN 
       EXPLANATORY NOTE 
UNIDO defines Corporate Social Responsibility as, “a management concept 
whereby  companies integrate social and environmental concerns in their business  
operations and interactions with their stakeholders.” In the Philippines, there has been 
an increasing trend of corporations and other companies engaging more with the 
ideals of Corporate Social Responsibility. 
It is important to mention that the State recognized the importance of the 
private sector. Their presence, contribution, and collaboration with every Filipino is 
invaluable as it encourages investments, growth, and the improvement of the lives of 
the Filipino people. As such, the State continuously engages with the private sector in 
the hopes of continuously sustaining the momentum of growth that we have for the 
country; growth that is felt by every Filipino.  
The purpose of the bill is to encourage Corporate Social Responsibility, identify 
possible CSR-related activities, and incentivize those companies that continuously 
engage in this practice. It is the belief of this representation that by doing so, CSR will 
be a practice done by every corporation.  
This bill was first filed by Rep. Diosdado Arroyo in the 15th Congress, and has 
been subsequently filed in every Congress thereafter. This version is in line with the 
Third Reading Copy passed to the Senate in the 18th Congress.  
In view of the foregoing, the immediate passage of this bill is earnestly sought. 
HARRIS CHRISTOPHER M. ONGCHUAN 
August 30, 2022
8:02 am
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 Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO.  _________ 
Introduced by Representative 
HARRIS CHRISTOPHER M. ONGCHUAN 
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”. 
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 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. 
SECTION 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 
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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 welfare 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. 
SECTION 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 
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.” 


SECTION 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. 
SECTION 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. 
  
SECTION 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. 
SECTION 8. Implementing Rules and Regulations. - Within sixty (60) days after the 
effectivity of this Act, the Secretary of Finance shall, in coordination with DTI and the 
SEC, promulgate rules and regulations for the effective implementation of this Act. 
SECTION 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. 
SECTION 10. Repealing Clause. — Section 42 of the 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. 
SECTION 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.