Title
Regulation on Govt Employees' Entrepreneurship
Law
Csc Memorandum Circular No. 32
Decision Date
Dec 18, 1997
The Civil Service Commission reiterates the prohibition of entrepreneurial activities by government employees during office hours to uphold ethical standards and ensure the integrity of public service, as mandated by R.A. 6713.

Legal basis and controlling policy

  • Republic Act No. 6713 establishes as state policy the promotion of a high standard of ethics in public service through accountability and performance with responsibility, integrity, competence, and loyalty (Section 2).
  • Republic Act No. 6713 requires public officials and employees to uphold public interest over personal interest (Section 2).
  • Republic Act No. 6713 declares unlawful specified acts and transactions of any public official and employee under Section 7, paragraphs (a), (b), and (c).
  • The Civil Service Commission’s circular directs government employees to strictly comply with the prohibitions in Section 7 of Republic Act No. 6713 as a condition for any entrepreneurship/economic ventures policy context.

Purpose: reiterating prohibition

  • The Civil Service Commission reiterates the prohibition on entrepreneurial activities for government employees grounded on Republic Act No. 6713, Section 2.
  • The circular addresses disruptions to public service delivery caused by entrepreneurial activities conducted during office hours.
  • The circular emphasizes that entrepreneurship/economic ventures must not undermine public service ethics and responsibility standards.
  • The circular reiterates the policy originally articulated in CSC Memorandum Circular No. 32, series of 1993.
  • The circular is issued to reinforce compliance after continued violations despite prior issuance.

Covered actors and key subjects

  • The circular applies to public officials and employees engaged in entrepreneurial activities or business/economic ventures.
  • The conduct regulated concerns “entrepreneurship” and “business or economic ventures” undertaken by government employees.
  • The standard of compliance is tied to public service ethics and the statutory accountabilities under Republic Act No. 6713 (Section 2).
  • The circular focuses on entrepreneurial activities that disrupt the delivery of services to the public.

Substantive rules on entrepreneurship

  • Entrepreneurship may be allowed only under conditions that government employees strictly observe Section 7, paragraphs (a), (b), and (c) of Republic Act No. 6713 (policy conditions reiterated from Memorandum Circular No. 32, series of 1993).
  • Government employees’ business or economic ventures must not conflict or tend to conflict with the official functions of the public official or employee.
  • Government employees must not conduct business or economic ventures during office hours.
  • Government employees must not conduct business or economic ventures within the required forty (40) hour work week period.
  • The circular reiterates that entrepreneurial activities are prohibited when pursued in the manner that violates Republic Act No. 6713, Section 2 and the Section 7 unlawfulness conditions.

Enforcement focus: disruption of services

  • The Civil Service Commission recognizes that entrepreneurial activities conducted during office hours disrupt public service delivery.
  • The circular treats continued engagement in entrepreneurial activities during office hours as a basis for reiterating the prohibition.
  • The reiteration is expressly tied to compliance obligations rooted in Republic Act No. 6713.

Procedural posture and resolution act

  • The Commission resolves to reiterate the prohibition of entrepreneurial activities pursuant to Section 2 of Republic Act No. 6713.
  • The Commission’s resolution is documented as Resolution No. 974682.
  • The Chairperson’s adoption date is December 22, 1997.
  • The Commissioners’ adoption is documented as December 18, 1997.
  • The circular is attested by the Board Secretary VI.

Related issuance reiterated

  • CSC Memorandum Circular No. 32, series of 1993 sets out the entrepreneurship policy framework that entrepreneurship may be allowed subject to strict observance of Republic Act No. 6713, Section 7 (a), (b), and (c).
  • CSC Memorandum Circular No. 32, series of 1993 also provides the conditions that business/economic ventures must not conflict with official functions and must not be done during office hours or within the forty (40) hour work week period.
  • CSC Memorandum Circular No. 32 (series of 1997) reiterates and reinforces the prohibition when violations occur.

Penalties and administrative consequences

  • The circular reiterates the prohibition of entrepreneurial activities under Republic Act No. 6713; it does not specify separate fines, sanctions, or penalty schedules within the circular itself.
  • The circular grounds consequences in the statutory framework of ethical obligations under Republic Act No. 6713, Section 2 and unlawfulness under Section 7 (a), (b), and (c).

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