Connect with us

Hi, what are you looking for?


CSR incentives bill clears House committee


LEGISLATION seeking to encourage companies pursuing corporate social responsibility (CSR) initiatives made it out of the House committee on trade and industry on Tuesday.

House Bill 2699, or the proposed Act Encouraging Corporate Social Responsibility, Providing Incentives Therefor, allows companies with CSR initiatives to retain profits needed to fund these programs beyond the limit of 100% of paid-in capital.

The bill proposes to amend Section 42 of Republic Act 11232, or the Revised Corporation Code of the Philippines.

The amendment allows an exception for CSR in the rules governing profits to be retained. Section 42 sets out the rules for retaining capital, with board-approved expansion projects and reserves for probably contingencies currently the allowable uses of excess retained earnings. Section 42 also allows excess earnings to be retained when loan covenants prohibit the distribution of dividends.

The committee consolidated a number of CSR bills in arriving at House Bill 2699.

The consolidated bill recognizes the following activities as permissible for funding from excess earnings: charitable programs and projects; scientific research; youth and sports development; cultural or educational promotion; services to veterans and senior citizens; social welfare; environmental sustainability; health development; disaster relief and assistance; socialized and low-cost housing; and employee and worker welfare-related activities.

“The bill serves to motivate the private sector to voluntarily contribute to the improvements of economic situations, disaster preparations and response, societal welfare and the livelihoods of stakeholders without negatively impacting private businesses,” TINGOG Representatives Yedda Marie K. Romualdez and Jude A. Acidre, authors of one of the measures, said in the bill’s explanatory note.

The measure also tasks the Department of Trade and Industry (DTI) with organizing a program to recognize CSR efforts deemed worthy.

It also outlines a role for local government units, which are to assist companies in accomplishing their projects.

The bill creates a reporting requirement for CSR programs, with the Securities and Exchange Commission, the DTI or the Department of Finance designated as repositories of the reports. — Matthew Carl L. Montecillo

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



A market vendor arranges assorted vegetables inside the Quinta Market in Manila, Sept. 19. Vegetable prices continued to rise in November. — PHILIPPINE STAR/...


More policemen are deployed in Divisoria, Manila as the shopping area is expected to draw bigger crowds ahead of the holidays, Dec. 1. —...


PHILIPPINE STAR/ RUSSELL PALMA By Arjay L. Balinbin, Senior Reporter A PROPOSED MEASURE seeks to require National Economic and Development Authority (NEDA) Board approval...


BW FILE PHOTO THE MANAGEMENT ASSOCIATION of the Philippines (MAP) is seeking the creation of a public-private sector advisory council for various sectors, in...


UNSPLASH THE HOLIDAYS shouldn’t be used as an excuse to binge-eat, warned a dietitian.  Christmas is just around the corner and with it comes...


MANILA Electric Co. (Meralco) has secured a certificate of exemption from the Department of Energy (DoE) from the competitive selection process (CSP) for the...

You May Also Like


BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...


REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...


KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...


COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.