House OKs bill encouraging corporate social responsibility among companies

The House of Representatives on Wednesday approved on third reading a measure that encourages and rewards companies for their corporate social responsibility (CSR) activities.

With 209 votes in the affirmative and zero in the negative, the chamber approved House Bill 6137, or the proposed "Corporate Social Responsibility Act."

The measure primarily aims to promote sustainable economic development and environmental protection by encouraging corporations to practice social responsibility in community development in their operations and activities.

Under the bill, domestic and foreign business organizations established and operating in the Philippines are encouraged to observe CSR in their operations.

The measure defines CSR as 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."

The following are considered CSR-related activities according to the bill:

• Charitable programs and projects
• Scientific research
• Youth and sports development
• Cultural or educational promotion
• Services to veterans and senior citizens
• Social welfare
• Environmental sustainability
• Health development
• Disaster relief and assistance
• Socialized and low-cost housing
• Employee and worker welfare-related CSR activities

In order to encourage CSR, the measure allows stock corporations to retain profits in excess of 100% of paid-in capital stock to be used for expansion or CSR projects and programs.

The Department of Trade and Industry is mandated to recognize and reward businesses for their outstanding, innovative and world-class CSR activities.

It is also tasked to make endorsements and recommendations to local and foreign companies doing business in the Philippines that are up for recognition in various international award-giving bodies for their CSR activities.

At the same time, the measure also mandates local government units to extend assistance to business establishments to help them accomplish their CSR programs and projects. —LDF, GMA News