SEPT.

20, 2013

NR # 3232B

Institutionalize social responsibility in corporations solons

Lawmakers have sought to institutionalize corporate social responsibility both in domestic and foreign corporations to foster sustainable economic and environment development and protection. Reps. Gloria Macapagal-Arroyo (2nd District, Pampanga) and Diosdado Arroyo (2nd District, Camarines Sur) filed House Bill 306, which mandates corporations to consider the interests of society by taking responsibility for the impact of their activities on customers, employees, shareholders, communities and the environment in all aspects of their operations. The bill, to be known as Corporate Social Responsibility act of 2013, amends Section 43 of Batas Pambansa Blg. 68, otherwise known as the Corporation Code of the Philippines. The former president said CSR 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 agenda, and the society at large. Companies, be it big or small, have come up with their own CSR programs and have used it as an effective tool in improving their public relations with concerned stakeholders, Arroyo stressed. CSR related activities include 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 and employee and worker welfare related CSR activities. However, Arroyo said, it is observed that many corporations and other business organizations have shown very little care 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 the environment, Arroyo said. Under the measure, all business organizations established and operating under Philippine laws, whether domestic or foreign, are encouraged to observe CSR in the operation of their business in the country.

Arroyo said the government shall mobilize its various agencies, in coordination with non-government and peoples organizations, to work hand in hand for the integration, promotion, and strengthening of corporate social responsibility in all business organizations. The bill mandates the Department of Trade and Industry (DTI) to give national recognition and rewards to all business organizations for outstanding, innovative and world-class CSR-related services, projects and programs. All business organizations shall submit the list of their CSR activities as part of their annual or regular report to the Securities and Exchange Commission (SEC), DTI, or the Department of Finance (DOF). The DOF, in coordination with the DTI and SEC shall promulgate the rules and regulations and regularly monitor strict compliance. In return, businesses which shall comply with the mandate of this proposed measure shall be entitled to full deductions of expenses incurred, Arroyo said. (30) lvc