, 
FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B. No. 1239 
.' ," 
• 
INTRODUCED BY SEN. MANNY VILLAR 
EXPLANATORY NOTE 
': ) 
-, .' 
Corporate Social Responsibility is defined by the World Bank as "the commitment 
of business to behave ethically and to contribute to sustainable economic development 
by working with all relevant stakeholders to improve their lives in ways that are good for 
business, the sustainable development agenda, and society at large". It is observed, 
however, that many corporations and other business organizations really care little for 
the welfare of society, community where they operate and the natural environment 
around them. Their sole purpose is .to maximize their respective returns on investment 
totally 
disregarding the impact 'of their activities on 
customers, 
employees, 
shareholders, communities and envirOnment. 
This bill, therefore, seeks to foster sustainable economic and environment 
development and environment protection, among other things, by institutionalizing the 
corporate social responsibility of corporations, whether domestic or foreign, partnership 
and other establishment performing business in the country. Under this bill, all business 
organizations are mandated to consider the interest of society by taking responsibility 
for the impact of their activities on 'customers, employees, shareholders communities 
and environment. In return, businesses which shall comply with the mandate of this 
proposed measure shall be entitled to full deductions of the expenses incurred in 
connection thereto. 
In view of the foregoing, the enactment of this piece of legi ation is highly 
recommended. 
MA 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENAI~ 
S.B. No. 
39 
INTRODUCED BY SEN. MANNY VILLAR 
, 'i, 
AN ACT INSTITUTIONALIZING CORPORATE SOCIAL RESPONSIBILITY, 
PROVIDING INCENTIVES THEREFOR, 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". 
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 coordinate its various agencies and non 
government organization to work hand in hand for the integration, promotion, and 
strengthening of corporate social responsibility in all business organization. 
SECTION 3. Corporate Social Responsibility. Any corporation, whether 
domestic or foreign, partnerships and other establishments performing business in the 
country are hereby mandated to observe its corporate social responsibility or the 
obligation to consider the interests of society by taking responsibility for the impact of 
th.eir activities on customers, employees, 
shareholders, 
communities and the 
environment in all aspects of their operations. 
SECTION 4. Deductibility. All expenses incurred by any corporation in the 
exercise of its corporate social responsibility shall be fully deducted from its gross 
income. 
SECTION 5. 
Periodic Report. -
All corporations and 
other business 
organizations shall submit their annual report of activities relative to their corporate 
social responsibility not later than January 31 of each' year. 
SECTION 6. Implementing Rules and Regulations. - The Department of Trade 
and Industry shall, in coordination wi,th the Securities and Exchange Commission, the 
Department of Environment and Natural Resources and the Department of Labor and 
Employment shall promUlgate rules and regulates for the effective implementation of 
this Act and shall regularly monitor strict compliance therewith. 
SECTION 7. Separability Clause. - If any part or provision of this Act is held 
uncoflstitutional or invalid, the other parts or provisions hereof which are not affected 
thereby shall continue to be in full force and effect. 


SECTION 8. Repealing Clause. - All laws, orders, rules or regulations which 
are inconsistent with or contrary to the provisions of this Act are hereby amended or 
repealed accordingly. 
SECTION 9. EFFECTIVITY -This Act shall take effect fifteen (15) days after its 
publication in at least two (2) national'newspapers of general circulation. 
Approved, 
2