The House of Representatives finally passed the controversial corporations' bill into law at a plenary meeting here Friday making Corporate Social Responsibility (CSR) mandatory for almost all companies outside the financial sector.What are CSR(s)? My take:
Article 74 of the law provides that a company that operates in any business field related to natural resources is required to institute social and environmental responsibility programs, and that sanctions will be imposed on non-compliant firms
1. Making profit
2. Pay taxes to the government, and/or abide by the government regulation
Then you, our valuable cafe visitor, may ask:
1. Who will take care of social and environmental damage (read: negative externalities)? The government.
3. How? By imposing the right tax and regulation to minimize negative externalities.
4. Is there anything 'social' in making profit? Yes, you can make profit if you are competitive and efficient. And both lead to greater social welfare.