CHAPTER 1

INTRODUCTION
1.1 INTRODUCTION

Over the past twenty years, corporate social responsibility (CSR) has blossomed as a
framework for the role of business in society and for setting standards of behavior to
which a corporation must subscribe in order to impact society in a positive and a
productive manner. The emergence of social enterprises, business ethics, environmental
practices, a human rights approach to recruitment and employment conditions, and
investment in the community are examples of such impacts.

Many believe that CSR is the tribute that capitalism everywhere pays to virtue.1
According to this view corporations are no longer defined as entities with a mandate to
pursue profit and power relentlessly, regardless of the potential harmful consequences.
Instead, they are expected to use their extensive resources to soften their self-interest
image by presenting themselves as humane, benevolent, and socially responsible. Due to
globalization, corporations undoubtedly govern society, perhaps even more than
governments do. Governments are increasingly looking at these giant and resource-rich
entities to address socioeconomic problems. For example, multinational corporations are
perceived as the key to development through providing jobs, paying taxes, transferring
technology, and making charitable contributions to education and health care. The issue
of CSR has only grown in importance in light of recent business scandals involving such
large corporations as Barings, Enron, Arthur Anderson, WorldCom, and others. Despite
the tremendous efforts to promote CSR among corporations and society at large, this
concept is not without criticism. For instance, how can CSR be operationalized
effectively and efficiently on the ground, especially in situations that involve trade-offs?
The potential conflict arising from the diverse interests and expectations among various
constituents in society further hinders CSR initiatives. This paper, therefore, delineates
the concept of CSR in light of an Islamic perspective. In particular, the following
discussion on the maqasid alshari`ah (the Shari`ah’s objectives) and the principles of
maslahah (the public good) serve as foundations for such a perspective. The implications
of these principles are discussed in detail to shed light on how Islam perceives CSR in a

1
holistic and dynamic way, taking into consideration reality and ever-changing
circumstances. These principles also provide a better framework that managers can use
when faced with potential conflicts arising from diverse expectations and interests of a
corporation’s stakeholders.

1.2 OBJECTIVE OF THE STUDY

The study attempts to focus on the theories and practices of Corporate Social
Responsibility particularly by the Shariah based organizations in Bangladesh. So
the efforts are engaged aiming to achieve some objectives. They are as follows:
a) To highlight the context of CSR in Bangladesh
b) To discuss the Practices of CSR by the Shariah Based Organizations viz.
Islamic Organizations in Bangladesh
c) To provide some recommendation to encourage the awareness in taking the
necessary measures to study and practice the CSR from Islamic Perspective
and implement it for the ultimate sustainable development in the
corporations of every kind.

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 CHAPTER 2
CONCEPTUAL ISSUES

2.1 INTRODUCTION:
We are very familiar with the interest based banking system and its mechanism. At
the time of independence Bangladesh inherited an interest-based banking system
introduced by the British government during the colonial period. At present three
nationalized banks, five specialized banks, sixteen foreign banks and some private
banks are operating in the financial market of Bangladesh. But the Islamic banking
in Bangladesh dates back to 1983 when Islamic bank Bangladesh Limited (IBBL)
was established with a view to conducting its banking activities based on the
principle of Islamic Bank shariah. In 1987 Oriental Bank (Al-Baraka Bank)
Bangladesh Limited the second Islamic Bank was established. There are seven
Islamic Banks in Bangladesh. These are:

2.2 HISTORICAL BACKGROUND OF IBBL:

In August 1974, Bangladesh signed the Charter of Islamic Development Bank and
committed itself to reorganize its economic and financial system as per Islamic
Shariah.

In January 1981, the President of People’s Republic of Bangladesh While

addressing the third Islamic conference held at Mecca and Taif suggested “The
Islamic countries should develop a separate banking system of their own in order
to facilitate their trade and commerce”

This statement of the president indicated favorable attitude of the government of

the People’s Republic of Bangladesh towards establishing Islamic banks and
financial institution in the country.

In early November 1980, Bangladesh bank, the country’s Central Bank, sent a
representative to study the working of several Islamic Banks abroad.

3
In November 1982, a delegation of IDB visited Bangladesh and showed keen
interest to participate in establishing a joint venture Islamic bank in the private
sector. They found a lot of work had already been done and Islamic banking was in
a ready from for immediate introduction. Two professional bodies of Islami
Economics Research Bureau (IERB) and Bangladesh Islami Bankers’ Association
(BIBA) made significant contribution towards introduction of Islami banking in
the country.

They came forward to provide training of Islamic banking to top bankers and
economists to fill up the vacuum of leadership for the future islami bank in
Bangladesh. They also had seminars, symposiums and workshops on Islami
economic and banking throughout the country to mobilize public opinion in favor
of Islami banking.

Their professional activities were reinforced by a number of Muslim entrepreneurs

working under the support of the then Muslim Businessmen society (now
reorganized as Industrialist & Businessmen Association). The body concentrated
mainly in mobilizing equity capital for the emerging Islami bank.

At last, the long drawn struggle to establish an Islami bank in Bangladesh become
a reality and Islami bank Bangladesh limited was established in march 1983 in
which 19 Bangladeshi national, 4 Bangladeshi institutions and 11 banks, financial
institutions and government bodies of the middle East and Europe including IDB
and two eminent personalities of the kingdom of Saudi Arabia joined hands to
made the dream a reality.

Later, other Islami Banks, Islami Insurance Companies and Financial Institution
were established in the country. Some traditional banks opened Islamic banking
branches in some major cities.

4
2.4 FUNCTION OF IBBL:

The operation of Islamic Bank Bangladesh limited can be divided into three (3)
major categories:

1. General Banking: it includes: -

a. Mobilization of deposits

b. Receipts and payment of cash.

c. Handling transfer transaction.

d. Operations of clearing house

e. Maintenance of accounts with Bangladesh bank and other

bank.

f. Collection of cheque and bill.

g. Issue and payment of Demand Draft, telegraphic transfer and

payment order.

h. Executing customers standing instructions.

i. Maintenance of safe deposit lockers.

j. Maintenance of internal accounts of the bank.

While doing all the above noted work IBBL issue cheques-book, Deposit account
operating form, SS card, Ledgers, Cash book, Deposit account ledgers, preparation
statement of accounts, Pass book, Balance of different accounts and calculates
profits.

5
 CHAPTER 3
DATABASE

3.1 METHODOLOGY OF THE STUDY

In order to conduct such a study the report preparer must follows some specific
methods. This report is based on an empirical method, which is stated hereafter.

Data collection: Source of data of this report can be divided into two categories:

Sources of Data:
All the relevant data regarding this study are collected from two sources:

A) Secondary Sources

 Annual report of Islmi Bank Ltd.

 Published Booklet of the Bank.
 Website of Islami Bank Ltd.
 Various published documents.

3.2 LIMITATIONS
Some restraint at the time of preparing the report are appended below

 The insufficiency of information is main constraint of the study. Moreover

employees are not interested to provide all information due to security and
other corporate obligation.
 The employees and clients are busy to provide me time for interview.
 Inexperience and time limitation were the constraints of the study.

6
 CHAPTER 4
FINDING OF THE STUDY
4.1 Corporate Social Responsibility: What it is?
Corporate Social Responsibility (CSR) refers to operating a business in a manner that
accounts for the social and environmental impact created by the business. CSR means a
commitment to developing policies that integrate responsible practices into daily business
operations, and to reporting on progress made toward implementing these practices.

4.2 Definitions
Corporate Social Responsibility (CSR) is becoming an increasingly important initiative of
businesses both nationally and internationally. There exists no universally accepted
definition of CSR. As per WikiPedia, “Ideally, CSR policy would function as a built-in,
self-regulating mechanism whereby business would monitor and ensure its support to law,
ethical standards, and international norms. Consequently, business would embrace
responsibility for the impact of its activities on the environment, consumers, employees,
communities, stakeholders and all other members of the public sphere. Furthermore,
CSR-focused businesses would proactively promote the public interest by encouraging
community growth and development, and voluntarily eliminating practices that harm the
public sphere, regardless of legality. Essentially, CSR is the deliberate inclusion of public
interest into corporate decision-making, and the honoring of a triple bottom line: People,
Planet, Profit.” The definition of CSR by the World Business Council for Sustainable
Development offers an acceptable definition. They state that "corporate social
responsibility is the continuing commitment by business to behave ethically and
contribute to economic development while improving the quality of life of the workforce
and their families as well as of the local community and society at large (CSR: Meeting
Changing Expectations, 1999, Page 6)." Lotus Holdings defines CSR as, “The integration
of the interests of the stakeholders – all those affected by a company’s conduct – into the
company’s business policies and actions, with a focus on the social, environmental, and
financial success of a company, the so-called triple bottom-line with the goal being to
positively impact society while achieving business success.” The reference site ‘Source
Watch’ defines, “Corporate social responsibility (CSR) is commonly described by its

7
promoters as aligning a company's activities with the social, economic and environmental
expectations of its ‘stakeholders’.”
Assignment on CSR Basics Business Blogger Sunil B. says, “CSR is about authority and
accountability, duty and delivery, risk and reputation, transparency and trust, obligation
and opportunity, but ultimately it’s about Sustainability. It’s about how the world works…
for the better.”

4.3 Common CSR policies include:

 Adoption of internal controls reform in the wake of Enron and other accounting
scandals;
 Commitment to diversity in hiring employees and barring discrimination;
 Management teams that view employees as assets rather than costs;
 High performance workplaces that integrate the views of line employees into
decision-making processes;
 Adoption of operating policies that exceed compliance with social and
environmental laws;
 Advanced resource productivity, focused on the use of natural resources in a more
productive, efficient and profitable fashion (such as recycled content and product
recycling); and
 Taking responsibility for conditions under which goods are produced directly or
by contract employees domestically or abroad.

In the past five years great strides have been made toward integrate CSR into the core
culture of major companies. Early CSR reports often focused on philanthropy as a
driver of CSR. That notion has been supplanted by a broad commitment to protecting
and improving the lives of workers and the communities in which companies do
business. CSR reports now typically address issues impacting virtually every area of
operations: governance and ethics; worker hiring, opportunity and training; responsible
purchasing and supply chain policies, and energy and environmental impact.

The boundaries of corporate social responsibility are given below:

8
 Figure 2.1: Boundary of Corporate Social Responsibility

4.3 Models of Corporate Social Responsibility:

Corporate social responsibility presented four different models which were: Ethical
models, Statist Model, Liberal Model and Stake holders Model. These models are stated
below:

Ethical Model:

The Cadbury Brothers in England and the TATA Family in India have been mentioned in
the study as pioneers which initiated corporate philanthropy in the 19 th century
eventually contributing towards social development. It was also mentioned that
Mahatma Gandhi propagated an active role for companies in socio-economic
development during the 20th century.

Statist Model:

This model is related to “state leadership” in corporate responsibility, which emerged in

the countries with socialist ideology, where state-owned enterprises assumed
responsibility for the well-being of workers in the workplace and beyond.
Source: http://ir-site.panasonic.com/annual/2007/html/10_csr/index.html
Liberal Model:

The liberal model encapsulates the philosophy of Milton Friedman (CPD, 2002) which
argues that companies are solely responsible to their owners. This model doctrine
upholds that it is sufficient for business to obey the law and generate wealth, which
through taxation and private charitable choices can be directed to social ends.

9
4.4 The Measurement of Corporate Social Responsibility (CSR)
There is much interest and a growing literature on the measurement of what is meant by
corporate social responsibility. MHCInternational has used a framework of measurement,
f USA by Prof. Donna Wood, and applied this framework to dozens of companies. The
work is described in detail elsewhere.
Briefly, CSR is measured following a business organization's configuration into three
levels:
· Principles of social responsibility
· Processes of social responsiveness
· Outcomes as they relate to the firm's societal relationships

Level I: Principles of Social Responsibility

The level of application of these principles is institutional and is based on a firm's basic
obligations as a business organization. Its value is that it defines the institutional
relationship between business and society, and specifies what is expected of any
business. This level of the CSR model itself is all about the relationship between business
and society at large and it has three major elements:
 Legitimacy concerns business as a social institution, and frames the analytical
view of the interrelationship of business and society.
 Public Responsibility concerns the individual firm and its processes and outcomes
within the framework of its own principles in terms of what it actually does.
 Managerial Discretion whereby managers and other organizational members are
moral actors. Within every domain of corporate social responsibility, they are
obliged to exercise such discretion as is available to them, toward socially
responsible outcomes.

Level II: Processes of Social Responsibility

Corporate social responsiveness is a business's capacity to respond to social pressures.
This suggests the ability of a business organization to survive through adaptation to its
business environment. To do so, it must know as much as possible about this business
environment, be capable of analyzing its data, and must react to the results of this
analysis. But the environment of business is not static; it is a complex and ever changing

10
set of circumstances. This environment can be unchanged for decades, if not centuries,
and then it falls apart and is reformed like a kaleidoscope with increasing rapidity. The
ability to successfully scan, interpret, and react to the business environment requires
equally complex mechanisms.

Three elements are identified as basic elements of this level of the CSR
model:
 Business Environment Scanning indicates the informational gathering arm of the
business and the transmission of the gathered information throughout the
organization.
 Stakeholder Management. A stakeholder is defined as any group or individual who
can affect or is affected by the achievement of the firm's objectives for example:
Owners; Suppliers; Employees; Customers; Competitors; Domestic

and Foreign Governments; Nonprofit organizations; Environmental and Consumer

Protection Groups; and Others. Stakeholder Management refers to mapping the
relationships of stakeholder to the firm (and among each other) whilst finding,
listening and meeting their seeking to balance and meet legitimate concerns as a
prerequisite of any measurement process.

 Issues Management having identified the motivating principles of a firm and

having determined the identities, relationships, and power of stakeholders, the
researcher now turns to the main issues which concern stakeholders.

Level III: Outcomes

The main focus of measurement is the third level of the CSR model. To determine if
"CSR makes a difference", all of the stakeholders relevant to an issue or complex of
issues must be included in any assessment of performance. There are, again, three main
categories:
 Internal Stakeholder Effects are those that affect stakeholders within the firm. An
examination of these might show how a corporate code of ethics affects the day to

11
 day decision making of the firm with reference to social responsibility. Similarly,
it can be concerned human resource policies such as the positive or negative
effects of corporate hiring and employee benefits practices.
 External Stakeholder Effects concern the impact of corporate actions on persons
or groups outside the firm. This might involve such things as the negative effects
of a product recall, the positive effects of community related corporate
philanthropy, or assuming the natural environment as a stakeholder, the effects of
toxic waste disposal.
 External Institutional Effects refer to the effects upon the larger institution of
business rather than on any particular stakeholder group. Several

environmental disasters made the public aware of the effect of business decisions on
the general public for example. This new awareness brought about pressure for
environmental regulation which then affected the entire institution of business rather
than one specific firm.

In the form of a diagram, the AA1000 framework on social accounting looks like this:

4.5 Corporate Social Responsibility Practices in Banking

Sector

4.2.1 Corporate Social Responsibility: Bangladesh Perspective:

Bangladesh has always held great promise. The people of Bangladesh fought a historic
War of Liberation in 1971, one of the bloodiest wars in the history of mankind, against
Pakistan with an aim to establishing a socio-economically just and equitable society
where each citizen would have all the opportunities to flourish his/her future in a
conducive environment. After its independence of 40 years, since 1971, the country has
earned both positive achievements and has been labeled with many negative images,
either imaginary or genuine. The Bangladeshi people are still struggling to make tangible
progress in the socio-economic arenas. This report highlights the need for Corporate
Social Responsibility (CSR) in establishing its positive image globally.

12
4.6 Importance of CSR:

It is being widely recognized by the corporate sector that augmented corporate social
responsibility (CSR) designed to respond to huge unmet needs of the society can be one
of the important means in the achievement of long term and persistent business value. The
high level of awareness of CSR has also strongly come about as a result of the United
Nations Development Goals (MDG), in which a major goal is the increased contribution
of assistance from a range of organizations to help alleviate poverty and hunger, and for
business to be more aware of their impact on society.

The concept of corporate social responsibility is important for:

 Good economic performance
 Good Social Practice
 Good environmental practice

4.7 Area of Social Responsibilities in Banking Sector:

Despite stiff competition in the banking industry, it is essential for a company to behave
in a responsible manner towards both the environment and society. This belief exists on
two pillars. First, to be successful on a long-term basis, they need to trust their
shareholder-customers, shareholders, employees and society. Behaving responsibility
towards society and the environment strengthens this trust. Second, by taking ecological
and social risks and reward into account they strengthen their corporate values. Their
commitment has always been to behave ethically and to contribute towards changing the
quality of life of their people, the local community and generally the society. Corporate
social responsibility focuses on:
Figure 4.2: Area of Social Responsibility

13
 Market
Place

Elements of Work
Environment Social place
Responsibility

Community

Source: www.energyint.org.uk/index.cfm?page=1045

4.8 Corporate Social Responsibility Practices in IBBL:

Among these Islamic Banks IBBL is in leading position and it is the first Islamic
Bank in Bangladesh. IBBL was established in 1983. As the Bangladesh
Government does not have any separate Islamic banking Law or policy, all the
Islamic Banks are monitored and guided by their individual council/boards. IBBL
is practicing CSR from a long since. One of their significant options is employee
welfare. The following list shows a brief of social and financial securities offered
by IBBL which are presently in practice too:

 The recruitment process of the Bank strictly follows “IBBL Recruitment

Policy”and maintains transperency in all stages to protect the right of the
eligible candidates and the interest of the Bank without discriminating
gender, race or socio-economic background.

 Every year a good number of eligible employees get promotion to the

higher rank. Promotions are awarded on merit basis regardless of gender,
race or socio-economic background.

14
 A good pay-package has been provided to the employees of the Bank. Ratio
of the pay between highest & lowest regular rank is only 14:1. Compulsory
‘Provident Fund’ (10% employees’ contribution and 10% Bank’s
contribution) and provision of Gratuity are also there for the employees of
the Bank.

 A ‘Benevolent Fund’ is there for providing emergency financial assistance

to the employees. Lumpsum financial grant is provided case to case basis
on critical and costly medical treatment ground.

 ‘Super Annuation Fund’ has been established for ensuring economic

security to the family of the employees in case of death in harness,
disability and retirement.

 To mitigate the housing problem of the employees, the Bank has introduced
the house building investment scheme for the employees.

 The Bank maintains the leave policy for the employees complying with the
relevant laws of the land as well as the guidelines of the Central Bank.
Leave encashment facilities are also there for the employees.

 Liveries and uniform are provided to the sub-staffs every year. They are
also provided with overtime bills for working after office hours.

 Full time transport facilities are provided to SVP & above rancked
executives. Executives in the rank of VP and above are also provided with
car under “Car Scheme for the Employees of the Bank”.

 To develop professional knowledge, skill and attitude of the employees, the

Bank has got its own Traning Academy where training courses are

15
 conducted round the year. The employees are also sent to abroad for higher
training.

 The meritorious children of the employees are also awarded with

stipend/grant regular basis.

 Annual family get together, sports & cultural competetions for the
employees and their family members are organized every year for their
recreation and to encourage their socio-cultural involvement.

IBBL also operates various welfare activities directly and through Islami Banik
Foundation (IBF). During various natural disaster, IBBL came forward with relief
activities for the victims directly and through donating into government funds
(Prime Minister’s/Chief Advisor’s Fund). After the recent BDR massacre at
Pilkhana (BDR Head Quarter), IBBL sponsored 4 martyred Army families for their
family expenditure for the period of next 12 years @ Tk. 40,000/- per month.

Under its education support program, IBBL awards scholarship among the
meritorious wards of the Bank officials and the meritorious students of Banking &
Finance Department of Dhaka University, Chittagong University and Manarat
International University.

1. Educational Program
2. Health and Medicare Program
3. Relief and Rehabilitation Program
4. Income Generation Program

16
 Table-1: Details of the activities of IBF and the expenditure incurred during the
last 5 (five) years
Program Activities Expenditure of last 5 year
from 2003-04 to 2007-08
(Fig. in million taka)
Education Program a. Establishment of own Educational Institutions: 441.69
 Medical College -1
 Nursing Training Institute – 1
 Institute of Health Technology – 1
 Institute of Technology – 6
 School & College – 2
 Girls Madrasha – 1
 Cultural Centre – 1
b. Stipend & Scholarship Program
c. Assistance to other educational institutions
Health & Medicare a. Establishment of own Health Institutions: 289.72
Program  Hospital -6
 I B Community Hospital -7
 Homeopathy Clinic -1
b. Launching verious health program:
 Free eye camp, mobile eye camp, free
circumsession programme etc.
 Distribution of tube-well and sanitary lantrine
etc.
c. Midwifery Training Program
d. Assistance to charitable dispensaries
e. Assistance to the poor patients
Humaniterian Assistance a. Establishment of Institutions: 83.39
and Relief &  Distressed Women Rehabilitation Centre – 1
Rehabilitation Program  Service Centres – 5
(cyclone centre cum community places)
 Monorom : IB Craft & Fashions – 1
(sales outlet of garments, handicrafts and
other items produced by the distressed women)
b. Financial assistance to needy and heavily indebted
individuals
c. Relief & rehabilitation program during natural
calamities
Income Generation Micro investment activities for the hardcore poor and 43.19
Program downtrodden population of the society.
Total Taka in Million 857.99
Source: Islami Bank Foundation (IBF)

17
Table-2: Scheme wise Activities
Scheme Activities
IOL Camp Free intra-ocular lens operation and treatment
Student stipend The trust offers annual stipend to poor and meritorious
students belonging to various educational institutions within
the country. The annual expenditure for this cause is
increasing gradually.
Financial Assistance to The trust offers financial assistance to disabled,
the Distressed unemployed, and widowed people, and to families who are
in distress.
Cooperation in The trust extends its cooperation every year to locally run
Spreading Education schools and madrasahs which work to spread Islamic
education and moral standards within this society.
Islamic Dawa Program The trust has a separate budget for the free distribution of
copies of the Holy Quran, Hadith and Islamic Publications.
Qard-E-Hasana The Trust has established the Qard-E-Hasana scheme from
which people with monetary problems can have benefits.
Staff Welfare Program This program is designed to continuously improve the
welfare of the staff. Large investments have been made in
this area.
Financial Help in case IST extends its cooperation towards giving relief through
of Natural Calamities distribution of materials mand drugs free of charge and
makes arrangements for rehabilitation during natural
calamities. To date, a large amount of financial assistance
has been given to this cause.
Source: Islami Bank Foundation (IBF)

There are some other Islamic Organizations who are also practicing CSR almost in the
same fashion.

Financial Inclusion:

18
 The rural poor are encouraged to make savings of at least Tk. 10 per week and
allowed to maintain Mudarabah Savings Account (RDS) at IBBL also allows
opening Mudarabah Special Savings Scheme (pension scheme)’ with a minimum
monthly installment of only Tk. 100.
 Small Business Investment Scheme (SBIS) has been taken up for self-employment
of educated youths and to provide investment facilities to small businessmen and
entrepreneurs without collateral security.

 Rural Development Scheme (RDS), to create income generating and productive

self employment opportunities through extension of security-free micro
investment facilities in agriculture and o.-farm activities. The poor beneficiaries
are also provided with health and education support under profit-free quard
scheme.
 Micro Industries Investment Scheme (MIIS) taken to encourage establishment of
micro industries in different areas of the country by the potential entrepreneurs.

Disaster relief:

 During various natural disasters, IBBL came forward with activities for the
victims directly and through donating into government funds.

Education:

 IBBL awards scholarships among the meritorious wards of the bank officials and
the meritorious students of Banking & Finance Department of Dhaka University,
Chittagong University and Manarat International University.

Health:

19
 In the year 2005, Bank IBBL
started a program in collaboration
with Bangladesh Eye Hospital
(BEH) to help the underprivileged
children by performing
ophthalmologic operation of all
born blind children of Bangladesh.
So far, a total of 929 children have
been operated.
 The bank arranges free Eye Camps in the rural areas where free treatments
including spectacles are provided to a large number of school going poor boys and
girls and other people of the localities concerned.

 The bank has donated an amount of Tk. 2.00 million to Islamia Eye Hospital
(IEH) for the construction of a children ward at the hospital premises.

Social Welfare:

 IBBL“Save the River” campaign

appeared in national dailies in July 2009.

 Supported the awareness campaign of

ADHUNIK ‘Amra Dhumpan Nibaron
Kori’ aimed at youths of the country.

 Supported an exhibition organized by

SAARC Women’s Association, Dhaka to set up a life saving Ventilator for the
ICU unit at the Shishu Hospital.

 Contributed to Zonta International Club to raise funds for “Shishu Bikash

Kendro” for 160 under privileged children.

20
  Contributed Tk. 5 lac to ‘Chhayanat’, a cultural organization, to partly support the
construction of an auditorium.

 Arranged to publish a supplement in one of the national newspaper

commemorating “International Day of the Misuse of Drug and it’s Illegal Trade”
organized by Home Ministry.

 Periodically participating in such national campaigns as “World Environment

Day” organized by Ministry of Environment and Forests, “World Breastfeeding
Week” organized by Bangladesh Breastfeeding Foundation, “National Fishery
Week” organized by Ministry of Fisheries and Livestock etc.

 CSR activities also include contribution for the treatment of prominent cultural
artists, donation for procurement of training room equipment for Dhaka Stock
Exchange Training Academy, etc.

Sports:

Signed an agreement with Bangladesh Table Tennis Federation in April 2008 for
arranging National Table Tennis Championship for four years and contribute an amount
of Tk. 7.9 lac each year. Further agreement has been executed under which AB Bank to
pay Tk. 15.13 lac per year for scouting new talents.

4.9 PROBLEMS OF IBBL IN CSR PRACTICES

21
a. IBBL does not have any specific policy regarding the rate of spending in
CSR from its gross benefits as DBBL does have in this case. It will be
clear from its annual allocation for CSR activities.
b. IBBL does not contributing in rural development sectors
c. They have no activities based on micro credit
d. They have not any policy for art and culture
e. They have no policy regarding drug addicted people

CHAPTER 5

22
 RECOMMENDATION & CONCLUSION
5.1 Findings:
The variability of the opinions of different commercial banks provides huge scope for
policy and learning interventions to promote and strengthen corporate responsibility in
Bangladesh. My overall findings of IBBL are given below:

a) The employees have a very poor idea about corporate responsibility. They
are busy how to restore their image in the market place.

b) The variability of perceptions indicates specific areas where to intervene

and set priorities.

c) Environmental concerns should receive greater attention by the bank.

d) Gender aspects should be more carefully addressed and monitored for

their implementation.

e) Bank should be more transparent in recruitment process. But there is

evidence that IBBL is biased.

f) To skill up the students, banking sector should introduce internship

program. A few numbers of bank provide this type of opportunities but
emphasize on nepotism.

g) More attention should be given toward consultation and communication

with local communities.

h) There is a problem that all contribution or donations made by the bank is

from post tax income. So, it does not motivate to contribute more in the
social sector.

i) Most of the banker treats social investment as their enhancement of

reputation not as a social responsibility.

j) There is no uniform guideline by the governing bodies regarding CSR.

23
5.2 RECOMMENDATION FOR IBBL TOWARDS CSR
PRACTISE

According to my survey IBBL can expand their CSR activities in following ways:
 IBBL should take the leadership role in terms of disseminating primary
education in Bangladesh through its charitable fund
 IBBL should make micro-finance operation in all the rural villages of
Bangladesh
 IBBL should establish many local libraries consisting of fundamental
religious books and may organize different Islamic and ethical training
session
 IBBL should focus on some general social welfare activities:
1. Education
2. Employment
3. Hunger and poverty
4. Old-aged shelter
5. Health
6. Environment/Tree Plantation
7. Drug abuse
8. Juvenile delinquency
9. Leisure-time activities
10. Girls and young women
11. Islamic Da'wah activities
12. Funding higher research on Islamic, scientific, technological
knowledge
13. Providing educational aids and Arranging public libraries
14. Arranging Islamic cultural activities
15. Arranging Vocational Training etc.

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5.3 CONCLUSION

To conclude, the concept of CSR is not alien to Islam, for it is deeply inscribed in the
Shari`ah. Therefore, any corporation that claims to follow Shari`ah-based principles
should naturally practice CSR, as it enshrines Islam’s true spirit. Indeed, Islamic
corporations should endeavor to be the epicenter in the business galaxy of promoting
good CSR practices. In this respect, assimilating CSR and other Islamic ideals to fulfill
stakeholder expectations deserves the utmost consideration, as the desire to do so
represent a fundamental difference between Islamic and conventional corporations. Given
all of the above factors, this study suggests the importance of CSR training programs that
incorporate a Shari`ah dimension to educate people, especially Muslim executives and
entrepreneurs, about CSR best practices. These programs could promote better
understanding among the public of why CSR is important, how it could benefit the
community as a whole, and eliminate misconceptions that may arise during its
implementation. An in-depth understanding of the Shari`ah, its objectives, and principles
may also benefit managers, particularly on how to practice CSR more effectively and
efficiently without undermining corporation’s viability and longterm sustainability.

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