FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
'11 
MAR 16 P 4 :1 4 
COMMITTEE REPORT NO. 22 
HECEIVU) gY;L'£,~ 
Submitted by the Committee on Trade and Commerce joint with the Committee on Ways 
and Means on _ MAR 1 6 2011 
_. 
Re: Senate Bill No. _-.-? 7 _47 _, prepared by the Committees 
Recommending its approval in substitution of Senate Bill No. 1239 
Sponsor: Senator Villar 
Mr. President: 
The joint Committees on Trade and Commerce, and Ways and Means. to which were 
referred Senate Bill No. 1239, introduced by Senator Villar, entitled: 
"AN ACT 
INSTITUTIONALIZING CORPORATE SOCIAL RESPONSIBILITY, 
PROVIDING 
INCENTIVES 
TlH~REFOR, 
AND 
}<'OR 
onum 
PURPOSES" 
have considered the same and have the honor to ~rt. tll.em back to the Senate with the 
recommendation that the attadwd bill, S.B. No. ___ ~_ 
(_q~'?_, prepared by the Committees, 
entitled: 
"AN ACT 
INSTITUTIONALIZING CORI'ORATE SOCIAL RESPONSIBILITY 
AMONG LARGE TAX PAYERS AND PROVIDING INCENTIVES 
THEREFOR" 
be approved in substitution ors. B. No. ]239 with Senator Villar as author thereof. 
RALPH G. RECTO 
Chairperson 
Committee on Ways and Means 
Respectfully submitted: 
MANtv:- AR 
Chairperson 
Committee on'] ade and Commerce 
Member 
Ways and Means 


FRANCIS 
GILINAN 
ys and Means 
F 
TEOFISTO L. GUINGONA III 
Committee on Ways and Means 
SEd.O~::'II 
Committee on Ways and Means 
FRANC~~G.ESCUDERO 
M 
EL "Lito" M. LAPIpj 
Committee on Ways and Mf'ms 
ice-Chairperson 
ays and Means 
Members: 
EDGARDO J. ANGARA 
Committee on Trade and Commerce 
Committee on Ways and Means 
(liVW-- ~~ ~iil 
MIRIAM DE 
NSOR-SA 
IAGO 
Committee on rade and Co merce 
Committee on Ways and Means 
LOREN B. LEGARDA 
Committee on Trade and Commerce 
"Bolflffiong" MARCOS 
Trade ahd Commerce 
Committee on Ways and Means 
/-
GUEL F. ZUBIRI 
ommittee on Trade and Commerce 
~ 
\4,-----
ANVO&rO ·"SonnY"F. TRILLANES IV 
Committee on Ways and Means 
JOKER P. ARROYO 
Committee on Trade and Commerce 


Ex-Officio Members: 
VICENTE C. SOTTO III 
Majority Floor Leader 
ALAN PETER "Compaiiero" S. CAYETANO 
Minority Floor Leader 
HON. JUAN PONCE ENRILE 
Senate President 
Senate of the Philippines 
Pasay City 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENfo.,J.E 
S.B. No. "1..7 4 7 
'11 
MAR 16 P4 :28 
Prepared and Submitted Jointly by the Committees on Trade and Commerce and 
Ways and Means with Senator Villar as Author 
AN ACT 
INSTITUTIONALIZING CORPORATE SOCIAL RESPONSIBILITY AMONG LARGE 
TAX PAYERS AND 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 organizations and people's organizations, to work hand in hand 
for the integration, promotion, and strengthening of corporate social responsibility 
among large tax payer corporations. 
SEC. 3. 
Corporate 
Social 
Responsibility. 
All 
large 
taxpayer 
corporations, whether domestic or foreign, doing business in the country, are hereby 
mandated to allocate a reasonable percentage of their net income to corporate social 
responsibility (CSR). 
For purposes of this Act, "corporate social responsibility" refers to the 
commitment of business to behave ethically and to contribute 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, but not be limited to the following: 
a) Charitable; 


b) Scientific; 
c) Youth and sports development; 
d) Cultural or educational purpose; 
e) Services to veterans and senior citizens; 
f) Social welfare; 
g) Environmental sustainability; 
h) Health; and 
i) 
Disaster relief and assistance. 
Provided, these CSR activities shall exclude mandatory activities already 
imposed upon these large tax payer corporations as provided by existing Philippine 
legislations. 
For purposes of this section, the definition of a "large taxpayer" corporation found 
in Section 245 of the National Internal Revenue Code shall be adopted. 
SEC. 4. 
Incentives. - All expenses incurred by any corporation whether a 
large tax payer or not, in the exercise of its corporate social responsibility may be 
deducted from its taxable income. 
SEC. 5. 
Local Government Units. -
All local government units where 
CSR-related activities are conducted shall extend whatever assistance is necessary for 
the large tax payer corporations in their exercise of CSA. 
SEC. 6. 
Periodic Report; SEC as Repository. -
All large tax payer 
corporations shall submit as part of its annual report to Securities and Exchange 
Commission (SEC) the list of activities relative to their corporate social responsibility. 
The SEC shall be the principal repository of all public records related to CSR for which it 
shall create a system for proper management, control, and regulation of record 
disposition. 
SEC. 7 
Implementing Rules and Regulations. -
The Secretary of 
Finance shall, in coordination with the Department of Trade and Industry and Securities 
and Exchange Commission, and in consultation with the private sector, promUlgate 
1 


rules and regulations for the effective implementation of this Act and shall regularly 
monitor strict compliance therewith. 
SEC. 8. 
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. 9. 
Repealing Clause. -
All laws, decrees, orders, rules and 
regulations, and other issuances, or parts thereof, inconsistent with this Act are hereby 
repealed or modified accordingly. 
SEC. 10. 
Effectivity Clause. - This Act shall take effect fifteen (15) days 
after publication in the Official Gazette or in two (2) national newspapers of general 
circulation. 
Approved,