Business groups give mandated CSR the thumbs down

Business and industry groups on Wednesday thumbed down proposed legislations in Congress institutionalizing the practice of corporate social responsibility (CSR) among Philippine companies. During Wednesday’s launch of the CSR Expo 2011, League of Corporate Foundations (LCF) president Edgardo Amistad said CSR should be voluntary activity and not mandated by law. "If it's mandated, in a way it's no longer CSR," Amistad said. "Kasi kapag required, baka i-comply lang ng companies, then that's it. Right now, if you can give as much as you can, because you have the resources, then so be it." Two bills institutionalizing CSR are currently pending before the Senate and the House of Representatives. House Bill 4575 and Senate Bill 2474 aim to incorporate CSR into the operations of Philippine businesses. Amistad said the House recently passed the bill on third reading. The bill was co-authored by ex-President and now Pampanga Rep. Gloria Macapagal-Arroyo and her son, Camarines Sur Rep. Diosdado Arroyo. In a statement last March, the Management Association of the Philippines (MAP) made public its stand on the proposed law saying it is "not necessary." "The practice of CSR should be a voluntary commitment to ethical business principles," the group said. The bill's intent is commendable, but it may create more constraints that could hamper the practice of CSR, Junie del Mundo, member of the consultative body of the CSR Expo said in a separate statement. "The proposed bills may be unnecessary considering that most local companies go beyond mere compliance with existing laws to ensure a healthy business environment for their stakeholders," Del Mundo pointed out. Encompassing all companies He also criticized the Arroyos’ bill which encompasses all Philippine companies in its mandate. The Senate bill would obligate only corporations with large tax payments. These large corporations "are the ones with the resources and know-how to organize and conduct CSR activities," Del Mundo said. "To impose CSR on Small and Medium Enterprises could be an unnecessary burden that may threaten their viability," he added. Instead of legislating CSR as a way of goading businesses go into it, government should "revisit and strengthen existing structures" that promote growth opportunities and business development. LCF's Amistad, meanwhile, said that the group remains open to what the bill could eventually offer to businesses. "We're not totally closing our doors, because we want to listen to what it is really about," he said. "That is why we will have Senator Villar to talk about the bill he filed in the Senate, and we will have a panel discussion within the plenary session," Amistad said. Apart from Villar who will speak at the CSR Expo 2011 slated July 21-22, Amistad said an Indonesia expert will also talk about the only existing CSR Law in the Association of Southeast Asian Nations region. — VS, GMA News