Chapter - One: "Corporate Social Responsibility Practices in Commercial Banking Sector in Bangladesh"

“Corporate Social Responsibility Practices in Commercial Banking Sector in Bangladesh”
Chapter -One
Introduction
1.1 Introduction
Corporate social responsibility means considering the social interest and the world
have realized it in the time of COVID-19 pandemic. Previously every organization
practiced only profit making actions but now the concept has changed. Today every
organization tries to understand that they have some responsibility towards the society
as every person has. The business has social obligations beyond making a profit is
known as corporate social responsibility. Today our society faces a lot of problems
like environmental, social, human rights etc. To overcome these problems the
business should contribute for the society and they have to make policy to improve
the lives of the society. The purpose of the study is to know the CSR practice of
private commercial bank (PCB) in Bangladesh and to identify the major areas they
contribute. CSR is good for the environment, workers and society that is also good for
the organization. So the business needs to be more focused on CSR. As bank collect
money from the society they cannot avoid the responsibility towards society.
1.2 Rationale of the study

Corporate social responsibility (CSR) is considered as a strategic tool for achieving
and maintaining sustainable competitive advantage in the rapidly changing
marketplace. The bank should take voluntary steps to improve the quality of life for
employees and their families as well as for the local community and society. As bank
is a big financier of a country they have to play a vital role for society.
Bangladesh Bank tries to encourage banks and financial institutions to accept CSR
voluntarily in their management strategies and show the CSR activities in the annual
reports as a part of fair disclosures. This study incorporates the CSR activities
performed by banks and how the performance can be improved in future.
1.3 Scope of the study

The study covered the following areas an overview of CSR, Banks accountability of
CSR to the society an analytical analysis of different contribution of CSR to the
society. The time horizon the study is 2015 to 2019.
1.4 Objectives of the Study
The fundamental objective of this research paper is to focus the CSR practices of
different private commercial banks in Bangladesh. The study tries to achieve the
following objectives:
1. To ascertain the participation of private commercial banks (PCB) of Bangladesh in

CSR events.
2. To evaluate the major areas where CSR activities are being performed by private
Commercial banks.
3. To identify the CSR contributions of private commercial banks in different areas.
4. To make comparison of compliance with the framework of CSR practices
1.5. Limitations of the study
The study has the following limitations-
 Limitation of this paper is that the officials of different banks did not disclose
specific CSR related data and information for the reason of confidentiality.
 Some organization think that by providing information can create problems for
their competitive business world.
 The sample of the study is so small. So it is difficult to take the clear concept
about this matter.
1.6 Literature Review:
Corporate social responsibility (CSR) is a concept whereby organizations take into

consideration the social and environmental concerns in their business operations and
integrate these for the interest and benefits of their stakeholders on a voluntary basis
(Gray et al.1987). According to (Rana et al. 2012), social responsibility is a term
well known in the corporate world and beyond that businesses all over the world have
practiced only profit making action in the past but not for long as the enterprise
started to develop complexities and wideness in size and actions. According to
(Noyer , 2008), Corporate social responsibility (CSR) demands that business manage
economic, social and environmental impacts of their operations to maximize benefits
and minimize downside and that’s why financial institutions has to take consider not
only their profitability and growth, butalso the interests of society and the
environment by taking responsibility for the impact of their activities on stakeholders,
employees, shareholders, customers, suppliers and civil society. Mittal et al. (2008)
demonstrated that, CSR considers society, nature and ethics as a central part of a
strategy that can improve the competitive position of a company and also CSR takes
care of the interest of all stakeholders rather than that of the stockholders only. Azim
et al. (2011) evaluated that corporate social responsibility is not the only ethical
dilemma that financial institutions face in an atmosphere of corrupt corporate practice.
These institutions are also concerned with commitment for sustainable development.
A well-functioning finance sector in any country can contribute directly to a healthy
economy. Also cited, that CSR reporting of financial sector in Bangladesh is
increasing and organization are concerned about the matter and significantly
maintained in the annual report. Most of the banks in the Bangladesh are not aware of
CSR reporting and there is no such study has been taken to give strict result on the
matter. It is also showed that the practices of CSR reporting are increasing day by day
in other regions like Europe, Asia, North America and Latin America.(Khan et al.
2009) Imam (2000) found that CSR practices differ from country to country and
between developed and developing countries. Furthermore, the nature and patterns of
CSR vary between types of industry. Also pointed out that CSR is still an evolving
concept that enables corporate executives to create and apply self-determined policies
to best meet the needs and demands of its stakeholders. The banking sector in
Bangladesh is showing interest in integrating sustainability into their business models,
but its CSR reporting practices are far from satisfactory. Consequently, this study
focuses on the social impact on the business performance of banks and their
sustainability in the future and made an attempt to analyze CSR practices and CSR
reporting in Bangladesh with special reference to the banking sector (Dhingra, D. &
Mittal, and R. 2014) Dhaliwal et al. (2012) show that CSR disclosures can attract
more analysts and institutional investors and reduce analyst forecast error, prompting
areduction in the cost of equity capital. They suggest that CSR disclosures can be
viewed as a substitute for financial disclosures in terms of improving a firm’s
information environment (Dhaliwal et al. 2014). Lanisand Richardson (2012) show
that higher levels of CSR disclosure are associated with lower tax avoidance,
suggesting increased transparency. However, Cohen et al. (2011) conduct a survey of
retail investors and find that these users do not place great value on CSR information
relative to economic and governance information. In related work, Cheng et al. (2015)
show that investors value CSR only when its measurement pertains closely to the firm
“score strategy.
Chapter- Two
Methodology
2.1 Methodology of the study

Methodology is the way to perform a job or conducting activities to complete a task.
In conducting this study some methods are used in collecting data and preparation of
this thesis. Generally, methodology is a process by which we can solve the research
problem
2.2 Research Design

The study is conducted both exploratory and descriptive in nature.
To serve the objectives of the study that is the corporate social responsibility of
private commercial banks in Bangladesh and to identify how these banks contribute in
the different CSR areas.
2.3 Sources of Data
The study is purely based on the information from secondary data sources. The data
are collected from:
 Annual Reports of sample banks.
 Different books, research papers, documents, manuals etc. related to the topic.
 Subject related websites and
 Different reports of Bangladesh Bank
2.4 Sampling Plan:
Sampling is the process of obtaining information about an entire population by

examining only part of it. The researcher selects only a few items for the study
purposes.
2.5 Sample size
The population for the study is that all private commercial banks in Bangladesh. The
researcher has taken eight private commercial banks as their rating system of
Bangladesh bank. The name of these sample banks are shown below:
 Dutch-Bangla Bank Ltd.

 Trust Bank Ltd.
 Bank Asia Ltd.
 Islami Bank Bangladesh Ltd.
 Southeast Bank Ltd.
 One Bank Ltd.
 Social Islami Bank Ltd.
 Mercantile Bank Ltd.
2.6 Method of Analyzing Data:
I have collected data from some private commercial banks. After collecting all data I
analyzed the data individually. I present the data through graph, chart, table etc.
Based on analysis I made findings, recommendations and conclusion.
.
Chapter: Three
CSR Practices in Commercial Bank in
Bangladesh: A Theoretical Review
3.1 Meaning of Corporate Social Responsibility
Corporate social responsibility (CSR) is the corporate initiative to assess and take
responsibility for the company's effects on the environment and impact on social
welfare. The term generally applies to company efforts that go beyond what may be
required by regulators or environmental protection groups.
Corporate social responsibility may also be referred to as "corporate citizenship" and

can involve incurring short-term costs that do not provide an immediate financial
benefit to the company, but instead promote positive social and environmental
change.
Companies have a lot of power in the community and in the national economy. They
control a lot of assets, and may have billions in cash at their disposal for socially
conscious investments and programs. Some companies may engage in "green
washing", or feigning interest in corporate responsibility, but many large corporations
are devoting real time and money to environmental sustainability programs,
alternative energy and various social welfare initiatives to benefit employees,
customer, and community at large.
3.2 Background of CSR

It is noticeable that business was not treated as a respectable occupation in ancient
classical Greece and business persons ranked no higher on the social ladder than slave
at that time. In Medieval era, societies ruled by the Catholic dogma had a great
suspicion about business persons which consequentially led the business person to a
lower position in the society. But in years between 1500 and 1800, while the Calvinist
doctrine emerged as a part of social and religious revolution, business and business
people gradually gained honor and dignity in their communities and increasingly
replaced the top rung of the social ladder. It may be said that, Corporations grew to
gigantic proportions, and some had power nearly equal to that of government.
Enormous, nearly unlimited, economic power became centered in the hand of only a
few persons, who became a corporate leader flagrantly, violated the law, and the long
established ethics and morals of business. But after the Industrial Revolution (1800-
1930) a new approach has emerged towards the business and business person.
Arguments from different corners strongly advocate that business activities of human
activity and it could be evaluated from the moral point of view, just as any other
human activity so evaluated. As a result, a specialized area of general ethics named
‘business ethics’ came forward in which an awareness of ethical issues and a
methodical approach to solve them are so important. Some study shows that, the
periods from approximately 1930 to the present brought the re-enlightenment of
business and reestablish the social obligations of business in both society and
governmental regulation to the level that was expected. We observe that over the last
few decades of the twentieth century, Stakeholders (employee, supplier, consumer,
media, government, NGOs, civil society and other social actors etc.) have been
demanding the accountable and responsible role of business towards society and other
social actors. With this ongoing shift of business activities from ‘purely economic’ to
‘economic with an added social dimension’, the term Corporate Social Responsibility
or CSR is now endorsing by scholars and academics worldwide to acknowledge
organizations’ commitment to the society, to their employees and the environment
beside their routine work. In connection with this, we find H.R. Bowen is claimed as
the modern father of corporate social responsibility as in 1953 he first conceptualized
CSR as social obligation- the obligation ‘to pursue those policies, to make those
decisions, or to follow those lines of action which are desirable in terms of objectives
and values of our society’.
3.3 The principles of CSR
Because of the uncertainty surrounding the nature of CSR activity it is difficult to

define CSR and to be certain about any such activity. It is therefore imperative to be
able to identify such activity and we take the view that there are three basic principles
which together comprise all CSR activity. These are:
I. Sustainability;
II. Accountability;
III. Transparency.
3.3.1 Sustainability
This is concerned with the effect which action taken in the present has upon the
options available in the future. If resources are utilized in the present then they are no
longer available for use in the future, and this is of particular concern if the resources
are finite in quantity.
Thus raw materials of an extractive nature, such as coal, iron or oil, are finite in
quantity and once used are not available for future use. At some point in the future
therefore alternatives will be needed to fulfill the functions currently provided by
these resources. This may be at some point in the relatively distant future but of more
immediate concern is the fact that as resources become depleted then the cost of
acquiring the remaining resources tends to increase, and hence the operational costs of
organizations tend to increase.
Sustainability therefore implies that society must use no more of a resource than can
be regenerated. This can be defined in terms of the carrying capacity of the ecosystem
and described with input – output models of resource consumption. Thus the paper
industry for example has a policy of replanting trees to replace those harvested and
this has the effect of retaining costs in the present rather than temporally externalizing
them.
3.3.2 Accountability
This is concerned with an organization recognizing that its actions affect the external
environment, and therefore assuming responsibility for the effects of its actions. This
concept therefore implies a quantification of the effects of actions taken, both internal
to the organization and externally. More specifically the concept implies a reporting
of those quantifications to all parties affected by those actions. This implies a
reporting to external stakeholders of the effects of actions taken by the organization

and how they are affecting those stakeholders.
This concept therefore implies recognition that the organization is part of a wider
societal network and has responsibilities to that entire network rather than just to the
owners of the organization. Alongside this acceptance of responsibility therefore must
be a recognition that those external stakeholders have the power to affect the way in
which those actions of the organization are taken and a role in deciding whether or not
such actions can be justified, and if so at what cost to the organization and to other
stakeholders.
Accountability therefore necessitates the development of appropriate measures of

environmental performance and the reporting of the actions of the firm. This
necessitates costs on the part of the organization in developing, recording and
reporting such performance and to be of value the benefits must exceed the costs.
Benefits must be determined by the usefulness of the measures selected to the
decision-making process and by the way in which they facilitate resource allocation,
both within the organization and between it and other stakeholders.
3.3.3 Transparency
Transparency, as a principle, means that the external impact of the actions of the
organization can be ascertained from that organization’s reporting and pertinent facts
are not disguised within that reporting. Thus all the effects of the actions of the
organization, including external impacts, should be apparent to all from using the
information provided by the organization’s reporting mechanisms. Transparency is of
particular importance to external users of such information as these users lack the
background details and knowledge available to internal users of such information.
Transparency therefore can be seen to follow from the other two principles and
equally can be seen to be a part of the process of recognition of responsibility on the
part of the organization for the external effects of its actions and equally part of the
process of transferring power to external stakeholders.
Chapter- Four
CSR Practices of Commercial Banks of

Bangladesh
4.1 CSR contribution of commercial banks of Bangladesh:
All commercial banks in Bangladesh undertake the CSR program in recent time.
These activities have a huge impact in the social & economic development of our
country. As we have taken eight banking institutions including 8 PCB’s as sample.
The contributions of those eight sample banks are described in this section.
Table 1: CSR contribution by DBBL
Year Category of CSR (BDT in millions)
Education Health Disaster Social Social Sports Others Total

awareness development
2015 210.46 27.15 57.71 23.76 6.79 3.40 10.18 339.45
2016 324.59 36.65 57.59 41.88 52.35 5.24 5.23 523.53
2017 365.38 59.19 193.25 9.33 48.00 7.00 12.35 694.5
2018 544.7 99.5 176.5 8.87 36.5 6.5 22.31 894.88
2019 551.3 117.9 164.7 10.00 46.5 5.5 27.32 923.22
Source: Annual reports of DBBL (2015-2019)

Table 2: CSR contribution by TBL
Education Health History Natural Sports Poverty Others Total

and culture & Disaster Reduction &
Training Religion Rehabilitation
2015 23.80 3.41 5.00 4.60 3.00 1.68 0.00 41.49
2016 43.98 26.51 5.00 0.00 1.00 2.50 2.47 81.46
2017 39.93 31.11 0.00 1.75 1.25 0.00 1.84 75.88
2018 23.30 41.62 10.00 1.87 1.50 0.00 1.21 79.50
2019 27.21 55.00 8.24 4.95 1.70 0.00 1.13 98.23
Source: Annual reports of TBL (2015-2019)
Table 3: CSR contribution by BAL
Education Health Disaster Environment Sports Art and Others Total

Culture
2015 15.95 1.43 0.69 1.06 0.05 0.51 6.41 26.10

2016 18.44 5.74 21.55 1.23 1.23 0.47 20.79 69.45
2017 30.74 2.58 21.15 0.74 3.61 1.58 22.57 82.97
2018 39.23 1.28 27.13 0.12 1.17 7.23 51.33 127.49
2019 33.18 29.12 40.17 0.00 0.02 0.62 12.5 116.15
Table 4: CSR contribution by SIBL
Education Health Disaster Sports Art & Environment Total

Culture
2015 0.57 0.73 15.99 0.00 2.3 0.00 19.59
2016 2.46 1.45 14.77 13.28 0.025 16.8 48.785
2017 2.96 3.77 22.12 19.09 2.68 2.54 53.16
2018 3.38 2.25 11.97 20.3 0.121 8.70 46.72
2019 4.70 2.97 10 0.158 0.278 27.92 46.02
Source: Annual reports of SIBL (2015-2019)
Table 5: CSR contribution by SEBL

Category of CSR (BDT in millions)
Educati Health Humanitarian Sports & Others Total

on &Disaster Culture
Year
2015 14.16 5.48 3.36 4.80 13.34 41.14
2016 20.07 3.37 3.36 2.52 7.53 36.85
2017 32.77 5.31 25.29 3.86 8.77 76.00

2018 37.66 9.76 17.53 10.5 36.83 112.28
2019 12.91 11.69 42.70 9.87 67.31 144.48
Source: Annual reports of SEBL (2015-2019)
Table 6: CSR contribution by IBBL
Education Health Humanita Sports Art & Environment Others Total

rian Culture
&Disaster
2015 175.25 226.04 323.9 26.60 5.12 21.12 22.11 800.33
2016 161.00 16.84 425.95 0.00 0.12 21.42 40.47 670.77
2017 382.82 28.97 568.46 21.00 11.50 26.40 18.62 1057.77
2018 218.57 1.75 647.72 8.20 22.59 1.05 13.20 2813.07
2019 585.66 0.86 180.04 0.00 150.00 0.45 114.14 1031.15
Source: Annual reports of IBBL (2015-2019)
Table 7: CSR contribution by MBL
Education Health Disaster Sports Art & Others Total

management Culture
2015 11.80 14.10 9.20 1.90 4.80 7.60 49.40
2016 13.80 26.80 17.5 2.40 1.80 23.60 85.90

2017 14.00 8.40 28.4 5.80 0.20 26.30 83.10
2018 1.90 13.50 22.4 0.60 0.80 13.80 53.00
2019 15.56 15.55 10.00 3.40 0.6 5.93 51.04
Source: Annual reports of MBL (2015-2019)
Table 8: CSR contribution by OBL
Education Health Humanitarian & Sports & Culture Others Total

Disaster
2014 0.21 0.24 1.25 2.50 0.00 4.20
2015 1.82 0.24 0.75 0.50 2.60 5.91
2016 3.46 0.37 0.60 0.30 7.38 12.11
2017 10.84 0.24 23.47 0.00 0.00 34.55

2018 13.55 0.97 5.19 5.10 9.74 34.55
2019 15.5 0.87 14.8 4.5 8.64 44.31
Source: Annual reports of OBL (2015-2019)

Chapter 5
Analysis & Interpretation

5.1 Comparison of selected banks according to different category
In our country Commercial banks generally contribute as CSR expenditure to

education, health, humanitarian & disaster management, culture & sports,
rehabilitation, poverty reduction & social development, environment, information
technology and miscellaneous sector. Comparison among selected banks according to
different CSR category is described in this section.
5.1.1 Education
Table 9:CSR Contribution to Education (BDT in millions)
Year DBBL TBL BAL SIBL SEBL IBBL MBL OBL
2015 210.46 23.80 15.95 0.57 14.16 175.25 11.80 1.82
2016 324.59 43.98 18.44 2.46 20.07 161.00 13.80 3.46
2017 365.38 39.93 30.74 2.96 32.77 382.82 14.00 10.84
2018 544.7 23.30 39.23 3.38 37.66 218.57 1.90 13.55
2019 551.3 27.21 33.18 4.70 12.91 585.66 15.56 15.50
Sources: Annual Reports (2015-2019) of Sample Banks.

700
600
500
400 2015
2016
300 2017
2018
200 2019
100
0
DBBL TBL BAL SIBL SEBL IBBL MBL OBL
5.1.2 Health
Table 10: CSR Contribution to Health (BDT in millions)
2015 27.15 3.41 1.43 0.73 5.48 226.04 14.10 0.24
2016 36.65 26.51 5.74 1.45 3.37 16.84 26.80 0.37
2017 59.19 31.11 2.58 3.77 5.31 28.97 8.40 0.24
2018 99.5 41.62 1.28 2.25 9.76 1.75 13.50 0.97
2019 117.9 55.00 29.12 2.97 11.69 0.86 15.55 0.87
Chart 2: CSR Contribution to Health (BDT in millions)

450
400
350
300
250
200
150
100
50
0
2015 2016 2017 2018 2019
5.1.3 Humanitarian & disaster management
Table 11:CSRContribution to Humanitarian & disaster

management (BDT in millions)
2015 57.71 4.60 0.69 15.99 3.36 323.9 9.20 0.75
2016 57.59 0.00 21.55 14.77 3.36 425.95 17.5 0.60
2017 193.25 1.75 21.15 22.12 25.29 568.76 28.4 23.47
2018 176.5 1.87 27.13 11.97 17.53 647.72 22.4 5.19
2019 164.7 4.95 40.17 10.00 42.70 180.04 10.00 14.8
Chart 3: CSR Contribution to Health (BDT in mil-

lions)
700
600
500
400
300
200
100
0
2015 2016 2017 2018 2019
5.1.4 Culture & Sports

Table 12: CSR Contribution to Culture & Sports(BDT in millions)
2015 3.40 3.00 0.05 0.00 4.80 26.60 1.90 0.50
2016 5.24 1.00 1.23 13.28 2.52 0.00 2.40 0.30
2017 7.00 1.25 3.61 19.09 3.86 21.00 5.80 0.00
2018 6.5 1.50 1.17 20.3 10.5 8.20 0.60 5.10
2019 5.5 1.70 0.02 0.158 9.87 0.00 3.40 4.5
Chart 4: CSR Contribution to Culture & Sports

(BDT in millions)
30
25
20
15
10
0
2015 2016 2017 2018 2019
5.1.5 Rehabilitation, poverty reduction & social development

Table 13: CSR Contribution to Rehabilitation, poverty reduction &

social development (BDT in millions)
2015 6.79 1.68 - - - - - -
2016 52.35 2.50 - - - - - -
2017 48.00 0.00 - - - - - -
2018 36.5 0.00 - - - - - -
2019 46.5 0.00
Chart 5: CSR Contribution to Culture & Sports

(BDT in millions)
60
50
40
30
20
10
0
2015 2016 2017 2018 2019
5.1.6 Environment
Table 14: CSR Contribution to Environment (BDT in millions)
2015 0.48 - 1.06 0.00 - 21.12 - -
2016 12.48 - 1.23 16.8 - 21.42 - -
2017 22.94 - 0.74 2.54 - 26.40 - -
2018 21.12 - 0.12 8.70 - 1.05 - -
2019 24.20 - 0.00 27.92 - 0.45 - -
Chart 6: CSR Contribution to Environment (BDT in

millions)
30
25
20
15
10
0
2015 2016 2017 2018 2019
5.1.7 Miscellaneous
Table 15: CSR Contribution to Miscellaneous (BDT in millions)

2015 10.18 0.00 6.41 - 13.34 22.11 7.60 2.60
2016 5.23 2.47 20.79 - 7.53 40.47 23.60 7.38
2017 12.35 1.84 22.57 - 8.77 18.62 26.30 0.00
2018 22.31 1.21 51.33 - 36.83 13.20 13.80 9.74
2019 27.32 1.13 12.5 - 67.31 114.14 5.93 8.64
Chart 7: CSR Contribution to Miscellaneous (BDT in

millions)
120
100
80
60
40
20
0
2015 2016 2017 2018 2019

5.2 Comparison among Banks in Compliance with regulatory

framework of CSR.
It has already been mentioned that there are 22 CSR contribution areas where an
organization could enjoy 10% tax rebate. However, those table exhibits the
compliance of CSR practiced by commercial banks in Bangladesh with the regulatory
framework.
Table 15: Compliance with the regulatory framework of CSR
S. CSR Areas DBBL TBL BAL SIBL SEBL IBBL MBL OBL
L
1 Engaged in clean - - - - - -  -
water management
2 Engaged in - - - - - - - -
afforestation
3 Beautifications of  -  - -  - 
cities
4 Waste management - - - - - -  -
5 Natural calamities        
6 Old persons homes - - - - - - - -
7 Mentally or physically  - - -   - 
handicapped
8 Education of rootless    - -   -
children
9 Accommodation for - - - - - - - -
the slum dwellers
10 Women’s rights and  - - -   - -

anti-dowry practices
11 Rehabilitation of    - -  - -
orphan/rootless
children
12 In research on        -
independence war,
regaining and
expansion of the
consciousness of the
independence war and
the act of honorable
living of the freedom
fighters
13 Health some sanitation - - - - - - - -

in Chittagong Hill
Tracts, char areas and
areas surrounding
breaking up of bank of
river
14 Engaged in treating       - -
cleft lips, cataract,
cancer, and leprosy
15 Engaged in treating  - - - - - - -
acid victims
16 Hospitals engaged in        
providing free medical
treatment to poor
patients
17 Birth control products - - - - - - - -

with a view to solving

the population
problem and to
conduct camps for
voluntary sterilization
18 Grants to Public      -  -
Universities
19 Technical and    - -   -
vocational education
for meritorious poor
students
20 Training on computer  -  - - - - -
or information
technology and in
establishing
infrastructure or in
purchasing educational
materials for
implementing English
education in
public/private
educational
institutions (under
Monthly Pay Order or
MPO)
21 Technical and - - - - - - - -
vocational training to
unskilled or
semiskilled labor for
export of human
resources
22 Sports and provision        

of training at national
level
Total 14 9 11 6 8 11 9 5
Chapter 6
Findings, Recommendation
&Conclusion
6.1 Findings
The major findings of the study are:
 Common CSR practices in Bangladesh by different organization are centered

on mainly poverty alleviation, healthcare, education, charity activities, cultural
enrichment, youth development, women empowerment, patronizing sports and
disaster management etc.
 Every bank of the study contributed highest amount in education, health and
disaster relief
 Commercial banks are paying more to their CSR activities but not so much as
their earnings increase.
 Participation of different areas of CSR activities of different banks is limited.
They have to increase the areas like clean water management, aforestation,
accommodation for the slum dwellers, women’s rights and anti-dowry
practices etc.
 DBBL is the leading contributor of CSR. They touched highest number (14) of
areas and also donates highest amount in recent times.
6.2 Recommendation
 CSR activities should be taken as a serious issue rather than a promotional

tool. .
 Environmental concerns should receive greater attention by the banks.
 CSR expenditure should be increased direct proportion to profit.
 Health and safety issues deserve greater attention.
 Other banks should follow DBBL as a pioneer of CSR activities.
6.3 Conclusion

Chapter - One: "Corporate Social Responsibility Practices in Commercial Banking Sector in Bangladesh"

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“Corporate Social Responsibility Practices in Commercial Banking Sector in Bangladesh”

1.2 Rationale of the study

1.3 Scope of the study

1.4 Objectives of the Study

1. To ascertain the participation of private commercial banks (PCB) of Bangladesh in

3. To identify the CSR contributions of private commercial banks in different areas.

4. To make comparison of compliance with the framework of CSR practices

1.5. Limitations of the study

The study has the following limitations-

1.6 Literature Review:

Corporate social responsibility (CSR) is a concept whereby organizations take into

2.1 Methodology of the study

2.2 Research Design

2.3 Sources of Data

 Annual Reports of sample banks.

 Subject related websites and

 Different reports of Bangladesh Bank

2.4 Sampling Plan:

Sampling is the process of obtaining information about an entire population by

2.5 Sample size

 Dutch-Bangla Bank Ltd.

2.6 Method of Analyzing Data:

3.1 Meaning of Corporate Social Responsibility

Corporate social responsibility may also be referred to as "corporate citizenship" and

3.2 Background of CSR

3.3 The principles of CSR

Because of the uncertainty surrounding the nature of CSR activity it is difficult to

reporting to external stakeholders of the effects of actions taken by the organization

Accountability therefore necessitates the development of appropriate measures of

CSR Practices of Commercial Banks of

4.1 CSR contribution of commercial banks of Bangladesh:

Table 1: CSR contribution by DBBL

Year Category of CSR (BDT in millions)

Education Health Disaster Social Social Sports Others Total

2015 210.46 27.15 57.71 23.76 6.79 3.40 10.18 339.45

2016 324.59 36.65 57.59 41.88 52.35 5.24 5.23 523.53

2017 365.38 59.19 193.25 9.33 48.00 7.00 12.35 694.5

2018 544.7 99.5 176.5 8.87 36.5 6.5 22.31 894.88

2019 551.3 117.9 164.7 10.00 46.5 5.5 27.32 923.22

Source: Annual reports of DBBL (2015-2019)

Table 2: CSR contribution by TBL

Year Category of CSR (BDT in millions)

Education Health History Natural Sports Poverty Others Total

2015 23.80 3.41 5.00 4.60 3.00 1.68 0.00 41.49

2016 43.98 26.51 5.00 0.00 1.00 2.50 2.47 81.46

2017 39.93 31.11 0.00 1.75 1.25 0.00 1.84 75.88

2018 23.30 41.62 10.00 1.87 1.50 0.00 1.21 79.50

2019 27.21 55.00 8.24 4.95 1.70 0.00 1.13 98.23

Source: Annual reports of TBL (2015-2019)

Table 3: CSR contribution by BAL

Year Category of CSR (BDT in millions)

Education Health Disaster Environment Sports Art and Others Total

2015 15.95 1.43 0.69 1.06 0.05 0.51 6.41 26.10

2016 18.44 5.74 21.55 1.23 1.23 0.47 20.79 69.45

2017 30.74 2.58 21.15 0.74 3.61 1.58 22.57 82.97

2018 39.23 1.28 27.13 0.12 1.17 7.23 51.33 127.49

2019 33.18 29.12 40.17 0.00 0.02 0.62 12.5 116.15

Table 4: CSR contribution by SIBL

Year Category of CSR (BDT in millions)

Education Health Disaster Sports Art & Environment Total

2015 0.57 0.73 15.99 0.00 2.3 0.00 19.59

2016 2.46 1.45 14.77 13.28 0.025 16.8 48.785