The Philippines government will continue to require businesses to adopt corporate social responsibility (CSR) projects in the grant of income tax holidays (ITH). News reports have quoted the Board of Investments (BOI) managing head, Elmer  Hernandez, as saying that the BOI should ensure that all registered companies are undertaking CSR activities selected from a list identified by the National Antipoverty Commission.

Hernendez was quoted as saying:

“The grant of the last two years of ITH for those on pioneer status shall be subject to the submission of proof that they have actually undertaken CSR,”

Business projects with 'pioneer status' can avail themselves of up to eight years of ITH, depending on BOI’s evaluation of their worthiness. Hernandez was reported to have said that the practice of CSR is important because it helps ensure regulatory compliance, strengthens the company’s relationship with regulatory authorities and the communities in which it operates.

He also said that CSR benefits the companies because, under a level-playing field, customers prefer to do business with corporate citizens that live by the highest ethical standards.