Arroyos file House measure to institutionalize CSR in firms

MANILA, Philippines - Former President and now Pampanga Rep. Gloria Macapagal-Arroyo has filed a bill seeking to institutionalize corporate social responsibility (CSR) for both domestic and foreign corporations.

Mrs. Arroyo filed House Bill 1224 or the proposed “Corporate Social Responsibility Act of 2010” citing the need to strengthen sustainable economic and environment development and protection by institutionalizing CSR. The bill was co-authored by her son Camarines Sur Rep. Diosdado “Dato” Arroyo.

The lawmakers 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 foremost intent is to maximize their respective returns on investment totally disregarding the impact of their activities on customers, employees, shareholders, communities and the environment,” Mrs. Arroyo said.

The measure mandates corporations to observe 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.

The measure also directs companies whether big or small to come up with their own CSR programs and use it as an effective tool in improving their public relations with all concerned stakeholders.

The Arroyos said the government shall coordinate its various agencies and non-government organizations to work hand in hand for the integration, promotion, and strengthening of corporate social responsibility in all business organizations.

“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,” she said.

Under the bill, the Department of Trade and Industry in coordination with the Securities and Exchange Commission, Department of Environment and Natural Resources and the Department of Labor and Employment 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,” Mrs. Arroyo said.