The House of Representatives approved on Wednesday House Bill 6137 or the proposed Corporate Social Responsibility (CSR) Act, which institutionalizes the adoption of “social responsibility” in community development as part of corporations’ operations and activities.
CSR, according to the bill’s principal author, Deputy Majority Leader Juan Miguel Arroyo, is the “commitment of a business corporation 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 and society at large.”
The bill recognizes CSR activities such as charitable programs and projects, scientific research, youth and sports development, cultural or education promotion, services to veterans and senior citizens, social welfare, environmental sustainability, health development, disaster relief and assistance, and employee and worker welfare.
The bill amends the Revised Corporation Code of the Philippines to allow “stock corporations to retain profits in excess of the 100 percent of their paid-in capital stock so that it can now be used not only for definite corporate expansion but also for CSR projects and programs.”
The Department of Trade and Industry (DTI) was mandated to reward business organizations that will exhibit “outstanding, innovative, and world-class CSR-related services, projects, and programs.” (Jojo Mangahis)