A PROPOSED Ordinance authored by City Councilor Leandro Yangot Jr. has been filed in the City Council requiring all registered enterprises doing their business here in the City of Baguio to implement their respective Corporate Social Responsibility (CSR) to the communities within the city.
Citing the need to encourage registered enterprises to work hand in hand and pool their resources for greater socio-economic and environmental impacts in order to further advance and enhance the present state of affairs of the locality Councilor Yangot explained that under the Constitution the State recognizes the indispensable role of the private sector, encourages private enterprise, and provides incentives to needed investments, and that towards this goal the active participation by the private sector is also encouraged in fostering sustainable economic development and environment protection in the country. He further observed that the community and the environment plays a role in the success and progress of all business so that in this regard Corporate Social Responsibility (CSR) policies should address social, economic and environment concerns and thus the selection of activities under these CSRs’ must necessarily focus on the social, economic and environmental impacts of business operations.
As provided for in the proposed ordinance the act sought to be regulated is that every corporation, partnership and business establishment, whether domestic or foreign, which conducts its business operations within the City of Baguio are mandated to observe its Corporate Social Responsibility for the impact of their activities on customers, employees, shareholders, communities and the environment in all aspects of their operations.
In this regard the following principles are laid out in the proposal as the implementing guidelines of the regulation to wit: (a) All corporations and other business organizations shall submit their annual report of activities relative to their CSRs’ not later than January 31 of each year; (b) CSR policies should address social, economic and environmental concerns and in the selection of CSR activities the focus must be on the impacts thereof; (c) Activities which are clearly mandated to be performed by the government should be avoided, as it could result in unnecessary duplication of work; (d) Ethical conduct of business is at the core of responsible business. To promote organizational integrity, it is essential that premium is placed on transparency in all activities, dealings and transactions; (e) Every business establishment should subject their performance to scrutiny and audit by external agencies, and as part of their CSR they should resort to public disclosure of all information for the benefit of all stakeholders. Disclosure through their respective official websites are encouraged; and (f) Educating consumers and spreading awareness about the handling, usage and advantage of eco-friendly products and influencing consumer preference for said products is what is expected of responsible business.
In the event of its approval the said proposed Ordinance provides that the Department of Trade and Industry in coordination with the Department of Environment and Natural Resources and the Department of Labor and Employment shall promulgate the rules and regulations for its effective implementation.