Source: Public Relations and Information Department

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Institutionalize corporate social responsibility - solon
28 August 2009 12:07:52 PM
Writer: Lorelei Castillo, MRS-PRIB

A lawmaker today filed a bill seeking to foster sustainable economic and environment development and environment protection by institutionalizing corporate social responsibility in corporations, whether in domestic or foreign partnership and other establishments performing business in the country.

Rep. Diosdado "Dato" M. Arroyo (1st District, Camarines Sur) 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.

Arroyo filed House Bill 6414 or the "Corporate Social Responsibility Act of 2009" mandating corporations to observe its corporate social responsibility or the obligation 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.

Under the bill, companies whether big or small have to come up with their own CSR programs and use it as an effective tool in improving their public relations with concerned stakeholders.

"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," Arroyo said.

Arroyo said 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.

Under the bill, the Department of Trade and Industry (DTI) in coordination with the Securities and Exchange Commission (SEC), Department of Environment and Natural Resources (DENR) and the Department of Labor and Employment (DOLE) 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.