Senate
NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHIUPPINES 
First Regular Session
SENATE
S.B. No. 584
of riu' (tnip
*22 JUL 14 All :02
RECEIVED B\:
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
TO PROMOTE WOMEN S ECONOMIC EMPOWERMENT THROUGH IlMriiiCTVP
business to support and accelerate inclusive MVTlopment
NATIONAL AND LOCAL LEVELS THROUGH PRIVATE SECTOR INVOLVEMENT
EXPLANATORY NOTE
The bill seeks to create an enabling environment for government and businesses 
to adopt inclusive business models in their entire operations, focusing on key processes 
in their supply chains, especially processes that seek to increase the participation and 
benefit of women small scale producers and foster their economic empowerment. The 
Philippines is pushing for widespread adoption of Inclusive Business (IB) investments, 
particularly the inclusion of small community enterprises into the formal economy. 
Leveraging relevant discussions by the World Business Council for Sustainable 
Development In 2005, and the G20 and the Asia-Pacific Economic Cooperation (APEC), 
the Philippines has proactively advanced and is leading multi-partite discussions in setting 
policy direction toward the adoption of the IB agenda. As a starting framework, we 
consider the definition provided by the G20 Framework on IB:
"A private sector approach to providing goods, services and livelihoods on 
a commercially viable basis, either at scale or scalable, to people at the base 
of the pyramid by making them part of the value chain of companies' core 
business as suppliers, distributors, retailers or customers."
At the moment, over 300 million of the Association of Southeast Asian Nations 
(ASEAN) population still live at the Base of the Pyramid (BOP), even as 21.6% of the 
Philippine population of some 105 million Filipinos live in poverty.1 IBs models provide 
an opportunity for poverty reduction through the deliberate engagement of businesses In 
leveling economic opportunities. Also, IB Investments can help accelerate achievement of 
the government's target of reducing poverty incidence to 14% by 2022.
1 hltps://w\v\v.adb.org/sites/dcfaul(yi’ilcs/project-documents/46240/46240-001-tacr-en_0.pdf
1


Businesses stand to gain from women's progress2. Closing the gender gap in the 
global economy could increase global GDP by $28 trillion by 2025. If women had equal 
access to agricultural --esources, agricultural output in developing countries would 
increase by an average of 4%, reducing the number of undernourished people by as 
much as 17%. Companies with diverse workforces are: 22% more productive, have 27% 
higher profitability and 39% higher customer satisfaction.
The current administration has included IB as part of its poverty reduction and 
industry modernization agenda so as to expand economic opportunities to the 
underserved. IB's role is indicated in various documents: (a) Philippine Development Plan 
2017-2019, Chapter 9 - Develop more inclusive business models and social enterprises"; 
(b) President Rodrigo Duterte's 0-HO Socio-Economic Agenda, "5. Promote rural and 
value chain development toward increasing agricultural and rural enterprise productivity 
and rural tourism"; and (c) Department of Trade and Industry Secretary Ramon Lopez's
mam thrust, "4. Push for more Inclusive Business models and Social Enterprises that will
sustainably tighten the link of small community enterprises into the value chain of big 
businesses."
The specific inclusion of women small scale producers and women,s economic 
empowerment is also aligned with the Implementing Rules and Regulations (IRR) of the 
Magna Carta of Women particularly in Section 26 which protects and promotes women's 
right to livelihood, credit, capital and technology: n[a]ll possible assistance shall be 
provided to women Including returning women migrants in their pursuit of owning, 
operating and managing business enterprises towards the promotion of their economic 
rights and independence. Assistance shall focus on the availability of the following: credit, 
training and technology, information, packaging and marketing, and social protection." It 
also contributes to the achievement of Sustainable Development Goal (SDG) 5 on Gender 
Equality, specifically - "[ujndertake reforms to give women equal rights to economic 
resources, as well as access to ownership and control over land and other forms of 
property, financial services, inheritance and natural resources, in accordance with 
national 
laws."
IB is differentiated from Social Enterprise (SE), wherein the first pertains to large 
scale corporations and seeks to refocus the traditional business model to integrate low- 
income communities In its business operations and as part of its value chain, through 
employment, distribution, retail, supply, as customers, or through development of the 
community. IB often partners with small community enterprises and/or producer 
communities in a transactional way. The integration of the poor in the IB value chain will
2Business call lo action prc.sentation


positively impact the country's economic development. On the other hand, SE is focused 
on the social value output of the business, and in turn can be part of the value chain of 
an IB Project, as either a distributor, retailer or supplier.
Further, as the 2017 ASEAN Chair, the Philippines developed the first IB policy to 
provide fiscal incentives to companies that integrate Micro-Small and Medium Enterprises 
(MSMEs) in their supply chain, and promote the use of efficient and automated systems 
and operations. Through the initiatives of Philippine Business for Social Progress, 
Philippine Business for the Environment, Makati Business Club, and Asian Development 
Bank, the Asian Inclusive Business Awards was launched and recognized and awarded 
the Inclusive Business model of Generika.3 Coffee for Peace was also a finalist for its work 
teaching coffee planting and processing skills to communities in Mindanao affected by 
armed conflict, illegal logging and mining.
Currently, the Philippines has shown leadership globally In setting the policy 
direction of Inclusive Business. Through the Board of Investments (BOI), It created the 
Inclusive Business Program Management Office (IB PMO) to pilot Inclusive Business 
models In the agribusiness and tourism sectors, which are the preferred areas for the 
2017-2019 Incentives Priorities Plan (IPP). At present, there are five (5) registered BOI 
IB projects, and several more are expected to register within the year. Accordingly, an 
Inclusive Business Roadmap study has been conducted In 2019, and putting IB In the 
country's legislative agenda in the form of a bill is one of its recommendations.
The issues raised for writing a new law include the perceived narrow scope of IB 
PMO, such that the IB program does not have the authority to call on the other agencies 
to enable it to effectively pursue and create an enabling policy environment for Inclusive 
Business models. Also, only pioneer (i.e., new) programs or projects are given incentives 
and recognition under current rules. Existing Inclusive Business 
models/programs/projects already being implemented by companies are excluded.
Women small scale producers should be integrated to alleviate existing challenges 
based from the Gender Equality and Women’s Empowerment (GEWE) Plan 2019-2025, 
such as difficulty of women to sustain and scale up their businesses, low access of women 
to land ownership, other resources and opportunities, and low access to appropriate 
financial instruments and products.
This bill has two desired outcomes: 1) to create enabling policy and economic 
environments conducive to private sector engagement in Inclusive Business 
models/programs/projects, and 2) support MSMEs, particularly women small producers.
3 Generika provided low-cost generic medicine in rural communities that have little to no access to basic health 
infrastructure. The generic pharmaceutical products were estimated to cost 85% less than their branded counteqoarts. 
Generika also provides free in-store medical consultations for such rural communities.


to enhance their productivity and capability to proactively engage with Inclusive 
Businesses. More importantly, the IB PMO needs to be expanded to be more systemic In 
order to facilitate a whole-of-government approach to supporting Inclusive Businesses, 
and to encourage the private sector to commit to adopting Inclusive Business models.
It is, therefore. Imperative that the continuation of an Inclusive Business private 
sector approach be given the imprimatur of the State, and the full support of all its 
agencies.
In view of the foregoing, the approval of this bill is earnestly requested.
RISA HONTIVEROS U 
Senator


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
ot t\]i' n ctarP
Senate
SENATE
s.B. No. 584
72 JUU4 All «2
received BV;_
INTRODUCED BY SENATOR RISA HONTIVEROS
AN ACT
TO PROMOTE WOMEN'S ECONOMIC EMPOWERMENT THROUGH INCLUSIVE 
BUSINESS TO SUPPORT AND ACCELERATE INCLUSIVE DEVELOPMENT AT THE 
NATIONAL AND LOCAL LEVELS THROUGH PRIVATE SECTOR INVOLVEMENT
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled:
1 
Sec. 1. Short Tide. - This Act shall be known as the "Inclusive Business Act."
2 
Sec. 2. Declaration of Policy. - It is the policy of the State to create enabling policy
3 
and economic environments for inclusive business models to thrive and become the
4 
standard for doing business in the Philippines. Section 9 and 20, Article II of the 1987
5 
Constitution provide that it is the policy of "[t]he State to promote a just and dynamic
6 
social order that will ensure the prosperity and Independence of the nation and free the
7 
people from poverty through policies that provide adequate social services, promote full
8 
employment, a rising standard of living, and an improved quality of life for all;" and "[t]he
9 
State recognizes the indispensable role of the private sector, encourages private
10 
enterprise, and provides incentives to needed investments."
11 
Furthermore, the State commits to the Philippine Development Plan, to develop
12 
Inclusive Business as one of the strategies to expand economic opportunities for the
13 
population, and the national plans, such as the zero + 10-point Socio-Economic Agenda,
14 
to promote rural and value chain development, and AmbisyonNatin 2040 in making
15 
growth more inclusive and poverty-reducing.
16 
Moreover, pursuant to international agreements and instruments, including the
17 
Sustainable Development Goals, the State is one in promoting sustained, inclusive, and
18 
sustainable economic growth, full and productive employment and decent work for all
19 
women and men, and promoting inclusive and sustainable industrialization. A strong
20 
Inclusive Business sector can significantly and systematically contribute to the
21 
achievement of the country's sustainable development goals, and the reduction of poverty
22 
on a significant, systemic and massive scale.
1


1 
The State recognizes the important role of the private sector in achieving inclusive
2 
growth and sustainable development in the country. By adopting Inclusive Business
3 
models, private sector companies can spur innovation, deepen investments in low income
4 
communities, enable inclusive value chains, provide decent work, boost productivity,
5 
enhance access to affordable and quality goods and services, and generate new and
6 
higher income and livelihood for the poor, particularly marginalized women.
7 
The State, likewise recognizes its role in facilitating an enabling business
8 
environment so that the private sector may adopt and promote Inclusive Business
9 
models. By incentivizing and ensuring ease of doing business for inclusive businesses,
10 
their capacity to employ and support groups and sectors at the base of the pyramid
11 
(BOP), and, consequently, the number of taxpayers are increased, with the end goal of
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promoting social justice through Inclusive Business models.
13 
Further, the State recognized in Section 2 of the Magna Carta of Women that the
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economic, political, and sociocultural realities affect women's current condition, and
15 
affirmed the role of women in nation-building. It shall promote empowerment of women
16 
and pursue equal opportunities for women and men and ensure equal access to
17 
resources, support services, and to development results and outcome.
18 
Towards this end, the State shall pursue an inclusive growth strategy that supports
19 
and promotes the development of a vibrant inclusive business sector in the country.
20 
Sec. 3. Definition of Terms. - As used in this Act, the following terms shall mean:
21 
a. Base of the Pyramid (BOP) - refers to the poorest segment of the
22 
socioeconomic pyramid, which Is currently 21% of the Philippine
23 
population.
24 
b. Decent Work - means productive work in which rights are protected, which
25 
generates an adequate income, with adequate social protection. It also
26 
means sufficient work, in the sense that all should have full access to
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income-earning opportunities as defined by the International Labour Office
28 
(ILO) in the Report of the Director-General: Decent Work during the 87th
29 
Geneva Session in June 1999. Further, decent work should allow for a safe
30 
working space for workers, particularly women who often experience
31 
sexual violence in the workplace.
32 
c. Enabling Business Environment - set of policy, institutional, regulatory,
33 
Infrastructure, and cultural conditions that govern formal and informal
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business activities. This includes the administration and enforcement of
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government policy, and national and local institutional arrangements that


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affect the behavior of relevant actors who, together, comprise the 
important players in inclusive business.
d. Inclusive Business (IB) - a business model approach that provides decent 
work, respects Constitutional provisions protecting workers, economic 
opportunities and livelihood, or provides relevant and affordable goods or 
services, to poor and low income earners and to people at the base of the 
pyramid in general, who are engaged as consumers, workers, owners or 
business partners, and made part of the value chain and core business 
operations of an IB Company; Provided, that the IB Company renders 
direct contribution to improved living standards, poverty reduction, and 
systematic inclusion in a manner that is sustainable, at scale or scalable, 
and replicable;
e. Inclusive Business (IB) Community Partners - poor/low income and/or 
marginalized sector that are part of the core business operations of an IB 
Company, and are deriving social value from such participation. The term 
also refers to social enterprises, cooperatives, non-government 
organizations, small and medium enterprises, and other intermediary 
organizations that facilitate partnerships and linkages between poor/low 
income and/or marginalized sector, IB communities, and an IB Company;
f. 
Inclusive Business (IB) Company - a duly registered, commercially viable, 
for-profit company that integrates an IB model or approach in its core 
business operations, and likewise includes existing companies already 
practicing an Inclusive Business model. However, in order to obtain the 
benefits, incentives and support provisions, an IB Company needs to 
undergo Registration or Accreditation, as may be provided under this law;
g. Inclusive Business (IB) Project - the part of the core business operation of 
an IB company where the IB model or approach Is applied;
1. Registered Project - upon approval of application by an IB Company 
to receive incentives, as provided by the Board of Investments 
(BOI); or
2. Accredited Project - the act of application by an IB Company for the 
use of the IB Logo and Branding, and other incentives.
h. Low-Income Communities - Households whose income fall between the 
poverty threshold and twice the poverty threshold as defined by the 
National Economic and Development Authority;


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i. Marginalized - The basic, disadvantaged, or vulnerable persons or groups
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who are mostly living in poverty and have little or no access to land and
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other resources, basic social and economic services such as health care,
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education, water and sanitation, employment and livelihood opportunities,
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housing, social security, physical infrastructure, and the justice system, as
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defined under Republic Act 9710, otherwise known as the "Magna Cara of
7 
Women'"
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j. Performance-based Incentives - include both monetary and non-monetary
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incentives to encourage performance and contribution to the
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accomplishment of the project.
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k. Poor - Individuals and households whose Income fall below the poverty
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threshold as defined by the National Economic and Development Authority
13 
(NEDA), and/or cannot afford in a sustained manner to provide their
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minimum basic needs for food, health, education, housing and other
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essential amenities in life, as defined under Republic Act No. 8425,
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otherwise known as the "Social Reform and Poverty Alleviation Act." In
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determining who constitutes the poor, the Multidimensional Poverty Index
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determined by the Philippine Statistics Authority (PSA) shall be considered,
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as provided by Republic Act No. 11291, otherwise known as the "Magna
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Carta of the Poor;"
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I. Social Value - the increase in the welfare of a society, or identified sectors
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of society, that is derived from a particular course of action or activity;
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m. Small scale producers - There is currently no internationally accepted
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definition of small scale producers. In the Philipine context, small scale
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producers include subsistence farmers, cottage industries, and other micro
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enterprises as defined under the Magna Carta for Micro, Small and Medium
27 
Enterprises (MSMEs).
28 
These activities are supported by purchasing or procurement, research and
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development, human resources development, and organizational development.
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CREATION OF A COORDINATING COUNCIL AND ESTABLISHMENT OF
32 
NATIONAL ACTION PLAN AND STRATEGY FOR INCLUSIVE BUSINESS
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(NAPSIB)
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Sec. 4. Creation of the National Inclusive Business Coordinating Council. - There
36 
is hereby created the National Inclusive Business Coordinating Council which shall be


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determined by DTI. The coordinating council shall be created to spearhead the
2 
implementation of the National Action Plan and Strategy for Inclusive Business (NAPSIB).
3 
Sec. 5. Composition. - The members of the coordinating council shall be the
4 
following offices:
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a. Chairperson: Secretary of the Department of Trade and Industry
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b. Permanent Members are the following:
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1. Secretary of Interior and Local Government;
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2. Secretary of Agriculture;
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3. Secretary of Labor and Employment;
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4. Secretary of Social Welfare and Development;
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5. Secretary of Socio-Economic Planning;
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6. Secretary of Budget and Management;
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7. Chair of Philippine Commission on Women
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8. Three representatives from the private sector, which shall be
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determined through a private-sector led initiative designed to
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support IB, further provided that at least one female representative
17 
Is encouraged
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9. One representative from women small scale producers' group.
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Sec. 6. Other Members and Assistance. - The coordinating council shall call upon
20 
other relevant agencies to provide assistance and resource on matters depending on the
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sector and issue needed to be resolved. This includes NGAs and representatives from the
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private and non-government development sector. Gender parity in the composition of the
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coordinating council is highly encouraged.
24 
Sec. 7. Partnership with National Councils, Technical Working Groups, Local
25 
Government Units (LGUs), Private Sector Organizations, and Civil Society Organizations.
26 
- The coordinating council shall partner with the Micro, Small and Medium Enterprise
27 
Development Council, other National Councils, such as the National Competitive Council,
28 
National Convergence Council, Ease of Doing Business, Anti-Red Tape Advisory Council,
29 
and National Innovation Council, Technical Working Groups, LGUs, private sector
30 
organizations, and civil society organizations, particularly those directly involved with IB
31 
community partners, IB companies, and women rights organizations, in the
32 
implementation, monitoring, and evaluation of the NAPSIB.
33 
Sec. 8. Commitment of Member Agencies to the National Action Plan and Strategy
34 
for Inclusive Business. - Each member of the coordinating council shall align their
35 
programs, plans and strategies to ensure that the NAPSIB is fully implemented, anchoring
36 
on similar objectives of promoting Ease of Doing Business and Efficient Government


1 
Service Delivery, as provided in Republic Act 11032, or otherwise known as "Ease of
2 
Doing Business and Efficient Government Service Delivery Act of 2018."
3 
Sec. 9. Organizing and Staffing Pattern for the Secretariat - The Chairperson of
4 
the coordinating council shall prescribe and approve the organization and staffing of the
5 
coordinating council secretariat in consultation with the Department of Budget and
6 
Management (DBM). Gender parity in the composition of the organization staffing is
7 
highly encouraged.
8 
Sec. 10. Powers and Functions of the coordinating councii. - The coordinating
9 
council shall be the lead coordinating office and hub for the development and
10 
implementation of the NAPSIB. The coordinating council shall be tasked to do the
11 
following:
12 
a. Draft, formulate and implement the NAPSIB, with a commitment to
13 
regularly updating the same;
14 
b. Monitor and assess the implementation of the NAPSIB and regularly
15 
submit reports to the President and to Congress.
16 
c. Ensure NAPSIB is aligned to and reflected in the Philippine Development
17 
Plan (PDP).
18 
d. Coordinate with national government agencies, local government units
19 
(LGUs), LGU associations, technical working groups, national councils,
20 
IBs, IB community partners, and other stakeholders in the development
21 
and implementation of the NAPSIB and its component plans, programs
22 
and projects;
23 
e. Coordinate and align existing and relevant Roadmaps of the government
24 
towards the objectives of the NAPSIB, with particular emphasis on the
25 
integration of women small producers and women in value chains;
26 
f. Coordinate IB-related studies and researches as a basis for
27 
recommendation of sectors, taking into account the recommendations
28 
related to integration and concerns of women small producers and women
29 
in value chains, which will be areas for particular focus of the
30 
implementation of the NAPSIB; provided/ furtherf that any
31 
recommendations made shall be presented to the coordinating council for
32 
approval;
33 
g. Provide business development, advisory, and facilitation services to IBs
34 
and IB community partners, especially women 
small producers 
and
35 
women in value chains, in coordination with relevant agencies and LGUs;


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h. Coordinate and provide a service lane for processing IB projects. This 
includes, but is not limited to, providing advisory and facilitation services 
in the processing of relevant government permits, licenses, and other 
requirements for the implementation of IB projects. The coordinating 
council shall have the power to direct specific agencies to attend to the 
bottlenecks and problems hindering the implementation and effectiveness 
of IB projects;
i. 
Serve as the primary data source of IB issues and challenges that need to 
be addressed to encourage broad participation and adoption by the 
private sector, especially issues of women small producers and women in 
value chains;
j. 
Coordinate and direct information, advisory, and training services for 
government agencies and institutions to enhance their understanding of 
and capacity to support IBs and IB community partners, especially women 
producers and women in small value chains, in the implementation of IB 
projects;
k. Coordinate with the Intellectual Property of the Philippines (IPO PH) in 
assisting IB Companies and IB Community Partners in getting patents, 
copyright, trademark, and other forms of pursuing protection of their work 
and creation, provided that the Free, Prior and Informed Consent (FPIC) 
is obtained;
l. 
Provide technical assistance and support to agencies in the formulation of 
social value specifications in their procurement processes. The 
coordinating council shall partner with non-government, research, and 
training institutions for this;
m. Establish and implement the criteria, process and guidelines for the 
accreditation of IB models, and establish an Accreditation Committee for 
this purpose;
n. Establish and maintain an IB information registry;
0. Coordinate with donors, government financial institutions, commercial 
and rural banks, and social impact investors on financing mechanisms for 
IBs and IB community partners;
p. Initiate public-private partnerships to enhance the viability of IB projects 
in identified priority geographic areas or Industries, taking into 
consideration the specific needs of women small producers and women in


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value chains. The coordinating council may call on other relevant 
agencies and other government agencies for this purpose;
q. Design and manage a campaign or program inviting young professionals 
to work with IBs or IB community partners as community organizers 
and/or social entrepreneurs;
r. Recommend, on behalf of the President, to other government agencies 
and institutions various policies and programs to promote and support 
IBs;
s. Integrate and coordinate existing initiatives for target IB Community 
partners and IB Companies, such as the Rural Agro-Industrial Partnership 
for Inclusive Development and Growth (RAPID Growth) 2019, National 
Convergence Initiative, GREAT Women Project, Livelihood Seeding 
Program - Negosyo Serbisyo Sa Barangay (LSP-NSB), Project 
Convergence on Value Chain Enhancement for Rural Growth and 
Empowerment (ConVERGE), Balik Probinsya Program, Coconut Farmers 
and Industry Development Plan, the Sustainable and Livelihood Program 
(SLP), Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced 
Workers (Tupad), Special Window and Interim Support to Nurture Hog 
Enterprises (SWINE) Lending program. Supply and Value Chain Readiness 
Program through Cooperatives, and other initiatives.
t. Integrate and maximize the use of trade preferences, such as the 
European Union Generalised Scheme of Preferences Plus (EU GSP+) and 
United States GSP, but likewise ensure compliance with conditionalities 
provided, such as labor rights, human rights, environmental rights, good 
governance, and the like.
u. Encourage the academe and research organizations to include IB In the 
curricula of schools, and assist in developing processes and tools for 
program performance assessments and IB social impact analysis; and
V. Through the Legislative Executive Development Advisory Council 
(LEDAC), recommend to Congress legislation to promote and support IBs.
w. Through the PCW and in-line with its Gender Equality and Women 
Empowerment (GEWE) Plan, provide technical assistance to facilitate and 
increase compliance of women small scale producers and women in value 
chains to business regulatory frameworks and standards. Institutionalize 
sex disaggregated data collection and analysis for gender-responsive and 
evidence-based policymaking and program development on IBs and for


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women small scale producers and women in value chains, ensure and or
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facilitate participation and representation of women small-scale
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producers and women in value chains in trade or business negotiations
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and develop and/or enhance the delivery of programs aimed at increasing
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access of women small scale producers to social protection.
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X. All other functions in the implementation of the law.
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INCLUSIVE BUSINESS ACCREDITATION
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Sec. 11. IB Accreditation Criteria. - The coordinating council, in consultation with
11 
resource persons from private sector industry groups, the academe, and relevant social
12 
development institutions, particularly women's rights organizations, shall establish a
13 
system and criteria for accrediting IBs based on their IB model and project. Accreditation
14 
of IBs may consider, but is not limited, to the following criteria, to be developed further
15 
by the coordinating council:
16 
a. Social Value:
17 
1. Reach - The IB project of the company must reach or target to
18 
reach poor/low income or marginalized populations at scale,
19 
particularly marginalized women.
20 
2. Depth - The IB project of the company must lead to measurable
21 
improvements in the quality of life for poor/low income or
22 
marginalized populations, particularly marginalized women, through
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income generation or access to relevant and affordable services and
24 
products.
25 
3. Systemic Impact - The IB project of the company must address
26 
relevant poverty dimensions and provide a systemic contribution to
27 
poverty reduction and social inclusion.
28 
b. Innovation and Sustainability:
29 
1. Innovation - The IB project of the company must Include innovative
30 
features that lead to improvements in areas such as but not limited
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to, profitability, governance, social value, social equity, gender
32 
equality, and environmental sustainability.
33 
2. Financial viability of the company - The company that adopts the
34 
IB model must be financially viable.


1 
3. Financial viability of the company's IB model - The IB project of the
2 
company must contribute substantially towards the financial viability
3 
of the company with positive returns on investment.
4 
The coordinating council Accreditation Committee shall propose for approval the
5 
specific percentage weight and measurable indicators to be assigned to each
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accreditation criterion, as well as any additional criteria. Criteria weights and indicators
7 
shall be established on a per industry basis subject to approval. Provided that, the final
8 
criteria approved for each industry shall be applied consistently to all applicants from the
9 
same industry without exceptions.
10 
Sec. 12. IB Accreditation Process. - The accreditation process shall involve the
11 
following steps, in accordance with guidelines to be established by the coordinating
12 
council.
13 
a. Submission to Accreditation Committee of the completed application form,
14 
business plan, and required supporting documentation by the company;
15 
b. Initial interview and review of company documentation by the
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Accreditation Committee;
17 
c. Site visit by Accreditation Committee to validate the 
social and
18 
environmental acceptability and objectives as described in the company's
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application and business plan;
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d. Evaluation and recommendation by the Accreditation Committee to the
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DTI Executive Committee (ExeCom);
22 
e. The DTI ExeCom decision to approve or disapprove company's
23 
accreditation;
24 
f. Accreditation for approved applications;
25 
g. Regular monitoring and assessment;
26 
h. Renewal of accreditation and continuation of project; and
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i. End of project impact review and reporting.
28 
Accredited IBs shall be subject to regular monitoring, reporting and assessment to
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ensure that the company's IB project is being implemented according to the approved
30 
business plan and achieving approved social value, innovation and sustainability target
31 
specifications. Failure to pass the regular monitoring and assessment by the Accreditation
32 
Committee may lead to the revocation of the IB's accreditation. 
Motions for project
33 
extension will be considered on a per project basis.
34 
The Accreditation Committee must disclose to companies with disapproved
35 
accreditation applications the reason/s for disapproval to enable said companies to
36 
improve or change their business projects accordingly. Companies with disapproved
10


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applications may reapply for IB accreditation subject to the guidelines provided by the
2 
coordinating council.
3 
Notwithstanding the eligibility of a company, the Accreditation Committee reserves
4 
the right to review the qualifications of the company at any stage of the accreditation
5 
process if the Committee has reasonable grounds to believe that a misrepresentation has
6 
been made by the Company, or that there has been a change in the company's capability
7 
to undertake the project from the time It submitted its completed application. Should
8 
such review uncover any misrepresentation made in the application, statements or
9 
documents, or any changes in the situation of the company which will affect the capability
10 
of the company to undertake the project so that it fails the accreditation criteria, the
11 
Accreditation Committee shall consider the Company as Ineligible and shall disqualify it
12 
from obtaining accreditation to use the IB logo and branding.
13
14 
BENEFITS, INCENTIVES, AND SUPPORT FOR INCLUSIVE BUSINESSES
15
16 
Sec. 13. Use of IB Logo and Branding. - Accredited IBs may affix the Philippine IB
17 
logo on related packaging, letterheads, brochures, leaflets, and other forms of
18 
information and communication collaterals, in various media outlets, with permission from
19 
and subject to the policies and guidelines from the coordinating council; Provided, further,
20 
that upon the end of the project the logo may not be used further, unless an extension
21 
of the accreditation or registration has been granted; and Provided, finaiiy, that there is
22 
no finding by the coordinating council that the project has failed to pass the regular
23 
monitoring and assessment.
24 
Sec. 14. IB Information Registry. - The coordinating council shall establish and
25 
maintain an online public IB registry and database, which shall serve as the main
26 
repository of information on IBs. The IB registry shall be disseminated nationwide;
27 
provided, further, that the coordinating council shall call on the Department of Trade
28 
(DTI) Negosyo Centers to promote ease of dissemination to LGUs and local communities.
29 
To facilitate collaboration on potential and existing IB projects, the registry shall include
30 
information and status on accredited IBs, IB community partners, and IB projects. It shall
31 
also include information on business development service providers, financial service
32 
providers, and social impact investors specifically catering to IBs and IB community
33 
partners.
34 
Sec. 15. Government Support for IB Community Partners. - IB Community
35 
Partners, which includes MSMEs, of accredited IBs shall be prioritized by government
36 
agencies in the provision or distribution of relevant government support programs and
11


1 
services that may improve or strengthen their capacity and resources to effectively
2 
engage in the IB project. These government programs and services include, but are not
3 
limited to, public infrastructure, shared service facilities, enterprise capacity building and
4 
training support, technical assistance developing micro-equity finance and business
5 
models, marketing assistance, value chain financing, business incubation and technology
6 
transfer, business facilitation, support for marginalized women, and women's economic
7 
empowerment. Provided, further, that potential and interested individuals and/or
8 
organizations seeking to be IB Community Partners, shall likewise be capacitated by NGAs
9 
and LCDs providing relevant assistance, trainings, support, and capacity building sought
10 
by IB Companies. NGAs and LGUs may seek assistance with civil society organizations for
11 
providing the same.
12 
Toward this end, each member agency of the coordinating council shall formulate
13 
and issue policies that shall facilitate these support programs and services, and
14 
automatically provide information of the same to the IB Registry. It shall at the same
15 
time, regularly update information on these support programs and services.
16 
Sec. 16. Incentives forinciusive Business Projects. - An IB Project may qualify for
17 
incentives under this Bill and be entitled to the following for five (5) consecutive years
18 
starting from the declared commencement date of the IB project, as approved by the
19 
coordinating council:
20 
a. Double Deduction for Labor Expense - Expenses incurred of a registered
21 
IB Project for wages of persons hired from the identified government
22 
databases, such recipients of government subsidy programs or those living
23 
below poverty threshold or benefitting 50% women workers, shall be
24 
deductible from the gross income for income tax purposes to the extent of
25 
two hundred percent (200%) on the year the said labor expense was
26 
incurred; provided, that the hiring is an incremental to the number of direct
27 
labor.
28 
b. Double Deduction for Training - Expenses incurred for training, identified
29 
and approved by the BOI, given to persons hired and to be hired from
30 
identified government databases and those living below the poverty
31 
threshold, and part of IB community partners, especially those IB
32 
companies providing capacity building needs of women small producers
33 
and women in value chains, shall be deductible from the gross income for
34 
income tax purposes to the extent of two hundred percent (200%) on the
35 
year the said training expense was incurred.
12


1 
c. Additional Deduction for Goods, Materials and Logistics Resources Sourced
2 
from Micro, Small and Medium Enterprises (MSMEs) - A registered IB
3 
Project may be allowed an additional deduction from the taxable income
4 
of twenty-five percent (25%) of the cost of goods, materials and logistics
5 
resources sourced from micro, small and medium enterprises, community
6 
enterprises, social enterprises, especially from women small producers on
7 
the year the said expenses were incurred.
8 
d. Double Deduction for Research and Development - Expenses incurred for
9 
research and development activities, especially in relation to women small
10 
producers or women in value chains, identified and approved by DTI, shall
11 
be deductible from the gross income for income tax purposes to the extent
12 
of two hundred percent (200%) on the year the said research and
13 
development expense was incurred.
14 
Sec. 17. Other IB Incentives. - An accredited IB shall qualify for other incentives
15 
made available by law, executive issuances, and local ordinances, as recommended and
16 
in consultation with the coordinating council Provided that; double deductions of the same
17 
or substantially similar incentives shall not be allowed unless explicitly allowed by law,
18 
executive issuances, and local ordinances. Guidelines and procedure for availing of all
19 
incentives shall be provided by the coordinating council.
20 
Sec. 18. Financial and Loan Assistance from Government Banks. - Loan assistance
21 
for the commercial production of a product of an IB Project, either locally or for export
22 
and duly registered or accredited with the coordinating council Secretariat created under
23 
this Act, shall be extended by government banks; provided that said IB Project meets the
24 
criteria and would enhance the economy of the country and the community, provide
25 
technical capacity, or generate regular and decent employment opportunities for the IB
26 
Community; providedth^t the loans shall be guaranteed by the Small Business Guarantee
27 
and Finance Corporation (SBGFC) and/or the IB Project.
28 
The SBGFC shall offer its existing products, and further develop products to
29 
encourage adoption of the IB model by both the IB Companies and Communities.
30 
Sec. 19. Government Agencies Assistance. - In order to facilitate the granting of
31 
financial assistance by any government bank, all government agencies concerned are
32 
required to extend all possible assistance, such as the use of its facilities in the preparation
33 
of project feasibility studies and evaluations, and products to be produced by the IB
34 
Company or Community.
13


1 
Sec. 20. Non-diminution of workers' rights and benefits. - Nothing in this bill shall
2 
be construed as authorizing the diminution of workers' vested rights and/or benefits
3 
provided for under the Labor Code or other laws.
4 
Sec. 20. Penaities. -
5 
a. Any IB company in violation of the use of the IB Logo and Branding, or
6 
Section 13 of this Act, shall be fined Twenty Thousand Pesos (P20,000.00)
7 
for the first offense; Fifty Thousand Pesos (P50,000.00) for the second
8 
offense; One Hundred Thousand Pesos (100,000.00) and blacklisted from
9 
accreditation for the third offense, subject to the guidelines of the
10 
coordinating council; t^rovided, further, that a company neither registered
11 
nor accredited as an IB Company shall be penalized under letter b of this
12 
section.
13 
b. Tampering, alteration, forgery, and imitation of the IB Logo, and
14 
misrepresentation thereof, shall be punished with a fine of not less than
15 
Fifty thousand pesos (P50,000.00) but not more than One hundred
16 
thousand pesos (P100,000.00) for each and every instance proven, without
17 
prejudice to other penalties imposed by Republic Act No. 7394 or the
18 
"Consumer Act of the Philippines;" 'provided, that the coordinating council
19 
is hereby empowered, after publication, to increase or adjust the amount
20 
of the fines prescribed in this section once every five (5) years in the amount
21 
not exceeding ten per centum (10%) of existing rates.
22 
c. Any IB company in violation of the rights of the community or any member
23 
thereof shall be directly responsible for damages and blacklisted from
24 
accreditation without prejudice to other remedies available under the law
25 
especially those enacted laws protecting women and children as specified
26 
under the Republic Act No 9710 or the "Magna Carta of Women."
27 
Sec. 21. Monitoring, Evaluation, Review, and Assessment - The coordinating
28 
council, in consultation with IB Companies, IB Community Partners, NGAs, and LCDs
29 
concerned as necessary, shall regularly monitor, evaluate, review, and assess the impact
30 
and effectiveness of the NAPSIB.
31 
The coordinating council shall, likewise, submit to Congress a periodic review on
32 
the implementation of this Act at the end of the third year from the date of its
33 
effectiveness and every year thereafter.
34 
Sec. 22. Nationwide Public Information Campaign. - The coordinating council, in
35 
coordination with Its member agencies, the Philippine Information Agency, LCDs, private
36 
agencies, and relevant organizations shall undertake a sustained, intensive, and targeted
14


1 
Information campaign to promote greater awareness and practice of IB among key
2 
stakeholders, particularly large and medium-size companies operating in priority
3 
industries and marginalized areas and encourage the coordinated support of relevant
4 
government agencies to IB investments.
5 
Sec. 23. Implementing Rules and Regulations. - The coordinating council, as led
6 
by the Department of Trade and Industry, in consultation with its members, shall issue
7 
the rules and regulations necessary to implement the provisions of this Act ninety (90)
8 
days from the effectivity of this Act.
9 
Sec. 24. Appropriations. - The initial amount necessary for the Implementation of
10 
this Act shall be charged against the current appropriation of DTI; provided/ that the
11 
amount necessary for the continued implementation of this Act shall be included in the
12 
annual General Appropriations Act.
13 
Sec. 25. Separability Clause. - If any provision of this Act, or part hereof, is held
14 
invalid or unconstitutional, the remainder of the law or provision not otherwise affected
15 
shall remain valid and subsisting.
16 
Sec. 26. Repealing Cause. - All provisions of laws, presidential decrees, letters of
17 
instruction and other presidential issuances that are incompatible or inconsistent with the
18 
provisions of this Act are hereby deemed amended or repealed.
19 
Sec. 27. Effectivity. - This Act shall take effect within fifteen (15) days after its
20 
publication In the Official Gazette or in a newspaper of general circulation.
Approved,
15