BAGUIO CITY – The City Council approved on first reading a proposed ordinance requiring all registered enterprises conducting and operating their businesses in the city to implement their corporate social responsibility (CSR) projects to the communities within the city.
The ordinance authored by Acting Vice Leandro B. Yangot, Jr. stated every corporation, partnership, and business establishment, whether domestic or foreign, which conducts its operation within the city will be mandated to observe its CSR. CSR is the obligation to consider the interest 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.
Under the proposal the Department of Trade and Industry (DTI) shall, in coordination with the Department of Environment and Natural Resources (DENR) and the Department of Labor and Employment (DOLE), promulgate the necessary rules and regulations for the effective implementation of the local legislative measure and for the said agencies to monitor the strict compliance of the concerned establishments to the established rules and regulations.
Yangot underscored the CSR policies of businesses operating in the city should be geared towards the pertinent rules and regulations wherein all corporations and other business organizations shall submit their annual report of activities relative to their CSR projects to the local government not later than January 31 of each year; CSR policies should address social, economic and environmental concerns and in the selection of CSR activities, the focus must be on their impact; activities which are clearly mandated to be performed by the government should be avoided, as it could result in unnecessary duplication of work; ethical conduct of business is at the care or responsibility of the business concerned; every business establishment should subject their performance to scrutiny and audit by external agencies and educating the consumers and spreading awareness about the handling, using and advantage of eco-friendly products and influencing consumer preference for safe products is what is expected of responsible businesses.
The ordinance states responsible businesses will be provided with corresponding incentives, such as deductibility of all expenses incurred by any corporation in the exercise of its CSR projects from its gross income. Exemplary CSR activities shall be reported and submitted to the City Mayor through the DTI which shall form part of the records of the said establishments conducting the said activities, and outstanding business establishments which implement its CSR projects within the current year shall be awarded by no less than the local government.
It can be recalled that the State recognizes the indispensable role of the private sector, encourages private enterprise, and provides incentives to needed investments and towards the said goal, active participation by the private sector is encouraged in fostering a sustainable economic development and environment protection in the Philippines.
Yangot emphasized the community and environment plays a role in the success and progress of all businesses, thus, CSR policies should address social, economic and environmental concerns, thus, the selection of activities under the CSR must focus on the social economic and environmental impacts of business operations.
By Dexter A. See