Noakhali Science & Technology University

Assignment on: Corporate Social responsibility practices in

Bangladesh.(A Study on selected commercial banks)
Course Title: Business Ethics
Course Code: BBA-3109

Submitted To Submitted By
Dr. S M Mahbubur Rahman Md.Mahfuz Uddin
Associate Professor ID:ASH1810068M
Department of Business Department of Business
Administration Administration
Noakhali Science & Technology Noakhali Science & Technology
University University

Submission date:10/09/2020
Corporate Social responsibility practices in
Bangladesh.(A Study on selected
commercial banks)
Corporate social responsibility (CSR) by commercial banks in Bangladesh and to
assess the need to improve in CSR by such organizations. The purpose of the
study is to observe the framework of CSR areas and contribution to those areas by
the private and state owned banks of Bangladesh. This study found that the
contribution amount by commercial banks to CSR activities is very insignificant in
proportion to their profit amount. This study suggests that a proper guideline by
Government regarding CSR contribution, involvement of large corporation in CSR
activities and mandating CSR disclosures in the annual report will fulfill the
intended goals of the corporate organizations and also ensure a successful
sustainable development on society. The aim of this research was to assess the
effectiveness of corporate social responsibility practices of some local and foreign
companies operating in Bangladesh. The research specially focused on the extent
to which companies practicing CSR complied with basic legal labour standards
involving their employees.
The research involved identification of companies providing CSR, obtaining
information about the details of the CSR practices adopted at these companies
and an assessment of how well these companies complied with basic labour
Standards.
The research found that most CSR practicing in their own specific way and that
few companies have separate units for providing CSR or get advice from CSR
experts It was often unclear how much money companies, whilst providing
CSR, did not comply with the law in providing basic labour standards.
Because CSR in the banking sector has been receiving inefficient attention
regarding some mentioned issues, this paper intends to develop a literature
review on CSR of banks in order to study main areas of research and present
status of CRS in the banking sector. As a result, We can propose a conceptual
framework of CRS in banking sectors.
In addition, the paper can explore the distinctions between CSR theoretical
Framework and the need raised from CSR practice within the banking services.
Thankfully, the paper can propose the new research direction which aims at
encouraging banks to undertake
The term commercial bank refers to a financial institution that accepts deposits,
offers checking account services, makes various loans, and offers basic financial
products like certificates of deposit (CDs) and savings accounts to individuals and
small businesses.
The primary objective of the study is to meet the partial requirements.
The core objectives of the report in bank are as follows –
-To gain practical exposures in CSR activities conducted by banks.
-To apply theoretical knowledge in the practical field
-To observe and analyze the performance of CSR activities of the bank.
-To find out the effect of CSR activities in the country both for the stakeholders
and the organization.
There are total 54 commercial banks found in our database while 9 foreign banks
are currently
operating beside of 45 local commercial banks in Bangladesh..

There are three commercial banks:

1.AB Bank
2.Janata Bank limited.
3.Sonali bank

Social responsibility activities of AB Bank:

AB Bank Donated vans and Bins to Chittagong city corporation under corporate
social responsibility. Recently AB Bank Limited under it’s Corporate Social
Responsibility donated Vans and Bins to Chittagong City Corporation to facilitate
removal of wastage from different parts of the city. AB Bank’s President &
Managing Director, Mr. Shamim Ahmed Chaudhury handed over vans to Mr. AJM
Nasir Uddin, Honorable Mayor of Chittagong City Corporation. Among others
Executive Vice President of AB Bank Limited Mr. Golam Mahmud Rizvi and Md.
Nazimuddin were also present on the occasion. As a result the city of Chittagong
looks very clean and people drop their dust in those vans and bins.

View of Janata bank Limited toward CSR :

JBL sees CSR activities as a critical component of continuous improvement, like
the overall effort to be a more socially responsible and sustainable organization.
Being one of the leading state-owned commercial banks in Bangladesh, Janata
Bank Limited, with its branches has also realized its responsibilities to the society
and is contributing to the amelioration of the social life of the destitute people,
infra-structure, environment etc. Not only that, it has stepped forward to
introduce interest-free loans to the poor and marginal farmers in the Aila-Sidr-
Manga unit areas.
Field Of CSR :
According to the policy, the CSR activities are performed in the following fields:
1. Education and Research
2. Health and Treatment
3. Poverty Reduction and Rehabilitation repaying loan interest of the poor and
marginal farmers and for leather sector
4. business promotion
5. History, Culture and sports
6. Information Technology
7. Natural Calamity
8. Protection of Environment
9. Miscellaneous.

Policy for CSR activities in JBL:

As per guide lines of DOS Circular no. 01 dtd. 01.06.2008 of Bangladesh Bank,
Janata Bank Ltd introduces its CSR programmes in 2008.
For the convenience of performing CSR activities, it has developed a policy based
on the DOS circular No-02, dated 02.06.2009 and "CSR Evening: Meeting Social
Goals" organized by Management and Resources Development Initiative
(MRDI).The policy as follow

Education and Research:

It is universally acknowledged that there is no alternative to education. So,
keeping this in mind, it has stretched its helping hands towards the financially
deprived meritorious and those who have great inclination to be benefited with
education. Not only that, it is imparting in different types of conferences,
symposiums, workshops etc. related to education and research.

Health and treatment

JBL has been treating this sector as the second most important one. In the last
decade, diabetes, heart diseases, cancer, liver cirrhosis etc. have taken an
epidemic form. For building up a healthy nation, as a bank of the people, JBL, both
singly and cooperatively is playing an important role.

Poverty Reduction and Rehabilitation:

To make the people free from the curse of poverty and lessen the gap between
the poor and the rich, JBL has considered street people, landless, handicapped
etc. as its target field to develop.

Natural Calamity
Though our country is a gifted child of nature, it is not free from the calamities
like flood, cyclone, earth quack, cranes, road accidents etc. Considering the
humanitarian traits, JBL stands as a friend to the hopeless people.
History, culture, tradition, sports etc. Aiming at imprinting the consciousness of
the war of liberation into the heart of the people, JBL takes initiatives to uphold
our glorious history, culture etc. by sponsoring related organizations arranging
different programmer on these subjects.

Environment protection
Now-a-days, pollution of environment has become a burning issue. For
sustainable development, JBL considers the matter as an important issue and is
devoting a handsome amount in tree plantation, forestation and other
environment friendly activities for better, pollution free environment.

Expansion of Information Technology

With a view to building "Digital Bangladesh" within 2021, JBL has been trying to
bring all organizations irrespective of types, by providing computers and other
scientific equipment’s for expansion of Information Technology.
Miscellaneous
Apart from these, sovereignty of the country, protection, discipline, economic
freedom, ensuring justice etc. are also been considered in CSR activities practiced
by the bank. Least but not the last, for the amelioration of the economic condition
of those great-hearted freedom-fighters who laid their lives for the sake of this
independent Bangladesh. JBL is committed to remain by their side always.

Procedure of disbursement:
When applications from the deprived individual/organizations reach to the hand
of the Chairman, he sends those to the Business Development Marketing
Department. The Department processes the applications according to the
directions of the Chairman and are presented as memo in the board meetings of
the directors. After approval, befitting instruments are made ready and the
payees are contacted over phone (if any number is given by the applicant) or sent
to the respective addresses reported on the application.

Sonali Bank CSR activities :

Sonali Bank Limited (SBL) is the largest government commercial bank in
Bangladesh addresses social concerns that threaten the structure of society and
redress social conditions that adversely affect the well-being of people and
society of Bangladesh.
Banking industry in Bangladesh is now a days very prospective and competitive.
To give a competitive edge, CSR is a very strong and helpful tool for any bank.
Sonali Bank took the tool and work with it before anyone does in the banking
industry in Bangladesh.SBL is one of the most successful banks in Bangladesh
and still growing having enough prospects. Other player in the banking industry
should take a part in this field to gain certain competitive edge.
Today, Corporate Social Responsibility (CSR) goes far beyond the old
philanthropy of the past –donating money to good causes at the end of the
financial year and is instead an all year round responsibility that companies accept
for the environment around them, for the best working practices, for their
engagement in their local communities and for their recognition that brand
names depend not only quality, price and uniqueness but on how they interact
with companies workforce, community and environment. CSR encourages
companies to look at a wider range of stakeholder interests, which can widen
understanding of the potential risks and opportunities for the business while
offering wider social or environmental gains.
Corporate social responsibility is necessarily an evolving term that does not have
a standard definition or a fully recognized set of specific criteria. With the
understanding that businesses play a key role on job and wealth creation in
society, CSR is generally understood to be the way a company achieves a balance
or integration of economic, environmental, and social imperatives while at the
same time addressing shareholder and stakeholder expectations. CSR is generally
accepted as applying to firms wherever they operate in the domestic and global
economy. The way businesses engage/involve the shareholders, employees,
customers, suppliers, governments, non-governmental organizations,
international organizations, and other stakeholders is usually a key feature of the
concept. While business compliance with laws and regulations on social,
environmental and economic objectives set the official level of CSR performance,
CSR is often understood as involving the private sector commitments and
activities that extend beyond this
foundation of complain with laws.
From a progressive business perspective, CSR usually involves focusing on new
opportunities as a way to respond to interrelated economic, societal and
environmental demands in the marketplace. Many firms believe that this focus
provides a clear competitive advantage and stimulates corporate innovation.
CSR is generally seen as the business contribution to sustainable development
which has been defined as “development that meets the needs of the present
without compromising the ability of future generations to meet their own needs”,
and is generally understood as focusing on how to achieve the integration of
economic, environmental, and social imperatives. CSR also overlaps and often is
synonymous with many features of other related concepts such as corporate
sustainability, corporate accountability, corporate responsibility, corporate
citizenship, corporate stewardship, etc..
CSR commitments and activities typically address aspects of a firm’s behavior
(including its policies and practices) with respect to such key elements as; health
and safety, environmental protection, human rights, human resource
management practices, corporate governance, community development, and
consumer protection, labor protection, supplier relations, business ethics, and
stakeholder rights.
The practice of CSR is subject to much debate and criticism. Proponents argue
that there is a strong business case for CSR, in that corporations benefit in
multiple ways by operating with a perspective broader and longer than their own
immediate, short-term profits. Critics argue that CSR distracts from the
fundamental economic enterprise whether large or small.
Role of businesses; others argue that it is nothing more than superficial window-
dressing,,; still others argue that it is an attempt to pre-empt the role of
governments as a watchdog over powerful multinational corporations.
Companies interested in advancing corporate social responsibility and in
improving their social and environmental performance as part of their business
have a wide range of tools available for application. Tools can vary widely in terms
of objectives, scope, costs, level of formality, partnerships, extent of stakeholder
involvement, and many other characteristics. Tools can be applied to one or more
of the planning, implementation, checking, and improvement facets of corporate
operations. Businesses have options in how they can use the tools. For example,
companies can use the tools that have been developed by others or they can
develop their own tools – either independently or in partnership with other
stakeholders. SBL develop their own CSR tools and other can follow them at the
beginning stage. On the other hand SBL can follow the best practice around the
world.
CSR has even on occasion attracted criticism for being insensitive to local
priorities and the basic livelihood needs of people in developing countries,
particularly where CSR codes of conduct are perceived as barriers to market
access for some producers. But the CSR agenda needs to be locally owned if it is
to make a significant contribution to local development priorities – and it must be
relevant to local enterprise whether large or small.

Thank you!!