Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
Introduced by REP. SITTIE SHAHARA “BAI DIMPLE” I. MASTURA 
EXPLANATORY NOTE 
   Section 20, Article II of the Constitution recognizes the indispensable role of the private 
sector in nation-building, encourages private enterprise, and provides incentives to 
needed investments.  In recognition of the vital role of the private sector, the State shall 
encourage its active participation in fostering economic development and environment 
protection in the country. 
   One commendable practice of businesses is corporate social responsibility or CSR. 
Corporate social responsibility has been defined as the continuing commitment by 
business to behave ethically and contribute to economic development while improving 
the quality of life of the workforce and their families as well as of the local community and 
society at large. Many companies, big or small, have developed various CSR programs 
for the welfare of employees, shareholders, communities and the environment, while 
using it as an effective tool in improving their public relations. 
  This bill seeks to foster sustainable economic development and environmental 
protection, among others, by institutionalizing corporate social responsibility in 
corporations and other establishments performing business in the country, whether 
domestic or foreign.  Under this bill, business organizations are mandated to take into 
consideration the interest of society by taking responsibility for the impact of their activities 
on their customers, employees, shareholders, communities and the environment. 
   In view of its vital importance, the approval of this bill is earnestly sought. 
SITTIE SHAHARA “BAI DIMPLE” I. MASTURA 
Representative, First District of Maguindanao  
with Cotabato City (now Lone Dist. of Maguindanao 
del Norte) 
November 15, 2022
8:00 am
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ______ 
Introduced by REP. SITTIE SHAHARA “BAI DIMPLE” I. MASTURA 
AN ACT  
ENCOURAGING 
CORPORATE 
SOCIAL 
RESPONSIBILITY, 
PROVIDING 
INCENTIVES THEREFORE, 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.” 
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 
nongovernment 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: 
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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 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. – 
xxx    xxx     xxx 
“Stock corporations are prohibited from retaining surplus profits in excess 
of one hundred (100%) percent of their  paid-in capital stock, except:  (a) 
when justified by definite corporate expansion OR FOR CORPORATE 
SOCIAL RESPONSIBILITY projects and programs approved by the board 
of directors; or (b) when the corporation is prohibited under any loan 
agreement with any 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 circumstances obtaining in the corporation, 


such as when there is a need for special reserve for probable 
contingencies.” 
 
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 
endorsements and encouragement 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. 
 
SEC. 7.  Periodic Report. – All business organizations shall submit a list of their 
CSR activities as part of their annual or regular report to the Securities and Exchange 
Commission (SEC), the 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 this Act, the Secretary of Finance shall, in coordination with the DTI and the 
SEC, promulgate rules and regulation for the 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 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 Clause.  – This Act shall take effect fifteen (15) days after 
publication in the Official Gazette or in a newspaper of general circulation.   
 
 
Approved.