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”.
Environmental & Social & Governance
Industry sectors covered by the instrument
Organizations covered by the instrument
Large companies (listed & unlisted)
Type of instrument
Mandatory or voluntary
The geographical scope