DEPARTMENT OF LABOR AND EMPLOYMENT

CONSOLIDATED TECHNICAL COMMENTS ON HOUSE BILL NOS. 451, 800, 1001,

2699, 3627, and 4139 OR CORPORATE SOCIAL RESPONSIBILITY ACT

I. BACKGROUND

The House Committee on Trade and Industry requested the presence of the Department
of Labor and Employment (DOLE) on 15 November 2022 to conduct initial deliberations on
the following House bills pertaining to the proposed Corporate Social Responsibility (CSR)
Act:

1. House Bill No. 451, entitled: An Act Encouraging Corporate Social Responsibility,
Providing Incentives Therefor, introduced by Representatives Jeffrey Soriano, Eric
Go Yap, Paolo Z. Duterte, and Edvic G. Yap;

2. House Bill No. 800, entitled: An Act Encouraging Corporate Social Responsibility,
Providing Incentives Therefor, introduced by Representative Michael L. Romero,
Ph.D.;

3. House Bill No. 1001, entitled: An Act Encouraging Corporate Social Responsibility,
Providing Incentives Therefor, introduced by Representative Marlyn L. Primicias-
Agabas;

4. House Bill No. 2699, entitled: An Act Encouraging Corporate Social Responsibility,
Providing Incentives Therefor, introduced by Representatives Yedda Marie K.
Romualdez and Jude A. Acidre;

5. House Bill No. 3627, entitled: An Act Encouraging Corporate Social Responsibility,
Providing Incentives Therefor, and for Other Purposes, introduced by Representative
Leody F. Tarriela; and

6. House Bill No. 4139, entitled: An Act Encouraging Corporate Social Responsibility,
Providing Incentives Therefor, introduced by Representative Harris Christopher M.
Ongchuan.

II. SALIENT FEATURES

The House Bills seek to institutionalize corporate social responsibility in foreign or

domestic corporations, partnership, and other establishments performing business in the
country and to provide incentives to enterprises that contribute on a voluntary basis to
sustainable economic development. CSR-related activities covered in the bills include the
following: (a) charitable programs and projects; (b) scientific research; (c) youth and sports
development; (d) cultural or educational promotion; (e) services to veterans and senior
citizens; (f) social welfare; (g) environmental sustainability; (h) health development; (i)
disaster relief and assistance; (j) socialized and low-cost housing; and (k) employee and
work-related CSR activities. Moreover, stock corporations will be allowed to retain profits in
excess of 100% of paid-in capital stock to be used for CSR projects and programs while
mandating the Department of Trade and Industry (DTI) to recognize and reward all business
organizations for outstanding, innovative, and world-class CSR-related services, projects
and programs.
III. GENERAL COMMENT

DOLE expresses support to the intent of the proposed bills to recognize the
indispensable role of the private sector in nation building and incentivize their active support
and participation to voluntarily contribute to the socioeconomic development of the country.
Further, DOLE notes that the common objective of the proposed bills is to define the scope
of private sector-driven corporate social responsibility services, projects, and programs that
may be incentivized by the public sector. Within the bounds of its mandate, DOLE reaffirms
its commitment to work collaboratively with all partners in the private sector, especially in
CSR-related activities that: (a) promote gainful employment opportunities and optimize the
development and utilization of the country’s human resources; (b) advance workers’ welfare
by providing for just and humane working conditions and terms of employment; and (c)
maintain industrial peace by promoting harmonious, equitable, and stable employment
relations that assure equal protection for the rights of all concerned parties.

IV. SPECIFIC COMMENTS

The Department would like to highlight some observations.

 Given the proposed definition of Corporate Social Responsibility1, the National Wages
and Productivity Commission (NWPC) offers various productivity advocacies through
training programs and learning modules that could include the concepts that embodies
CSR, even without the passage of the law. For instance, the Green ME (My Enterprise)
is a training program designed to assist enterprises, workers and employers to achieve
sustainable enterprises with greener workplaces. Further, the labor-management
cooperation program through the establishment of Labor-Management Councils or
Labor-Management Committees can be maximized to foster better relations between
labor and management including the conduct of CSR-related activities.

 DOLE supports the conduct of CSR-related activities enumerated under Section 3 of the
proposed bills.2 Specifically on employee and worker-related CSR activities, DOLE
recommends activities directed towards narrowing gender gaps at work, the eradication
of child labor, and the promotion and development of micro, small, and medium
enterprises (MSMEs) under the employee and worker-related CSR activities, which are
in line with the Department’s strategic priorities. Further, DOLE is supportive on
prioritizing CSR activities on environmental sustainability which will account business
activities and its environmental impacts that can claim casualties, damage properties,
and cause work interruption and affect the workforce productivity. Environmental
sustainability of private enterprises takes into account the future of the workforce and of
the next generation.

1
The bills proposed definition of Corporate Social Responsibility refers to “the commitment of business to
contribute on a voluntary basis to sustainable economic development by working with relevant stakeholders
to improve their lives in ways that are good for business, sustainable development agenda and society at
large.”
2
The proposed Corporate Social Responsibility Act enumerated the following CSR-related activities:
environmental sustainability, charitable programs and projects, scientific research, youth and sports
development, cultural or educational promotion, social welfare, health development, disaster relief and
assistance, socialized and low-cost housing; and employee and worker-related CSR activities.
 With regards to the determination as to whether incentives provided for in the bills are:
(a) enough to encourage socially responsible behavior of private firms; (b) does not give
rise to duplication of current ones (e.g., incentives under the Philippine Green Jobs Act
of 20163); and (c) aligned with the 2022 Strategic Investment Policy Priority Plan4 (SIPP),
DOLE defers to the comments of the Department of Finance (DOF) and its attached
agencies and to the Fiscal Incentives Review Board (FIRB) which has the authority on
the administration and grant of tax incentives.

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3
Philippine Green Jobs Act of 2016, https://www.officialgazette.gov.ph/2016/04/29/republic-act-no-10771/
4
Strategic Investment Priority Plan, https://www.officialgazette.gov.ph/downloads/2022/05may/20220524-
MO-61-RRD.pdf