Corporate Social Responsibility Act, 2009, 2011

Philippines Current 2009

The Corporate Social Responsibility Act of 2009 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”. Proponents of the act say that the State recognizes the vital role of the private sector in nation building and should encourage its active participation in fostering sustainable economic development and environmental protection in the Philippines.

In 2011 the Senate introduced an amended Act which allowed “large taxpayer corporations” to deduct their CSR expenses against their taxable income.  The Corporate Social Responsibility Act of 2011 prohibits publicly listed companies “from retaining surplus profits in excess of 100 percent of their paid-in capital stock except when justified by definite corporate expansion or corporate social responsibility projects and programs approved by the board of directors”. The Act states that “(a)ll large tax payer corporations shall submit as part of their annual report to the Securities and Exchange Commission (SEC) the list of activities relative to their corporate social responsibility”.

Scope

Environmental & Social & Governance

Industry sectors covered by the instrument

All/none specified

Organizations covered by the instrument

Large companies (listed & unlisted)

Type of instrument

Legislation

Mandatory or voluntary

Mandatory

The geographical scope

National/federal

Project Partners