1

A Report
On

Corporate Social Responsibility Practice in

Private Commercial Bank: A case study on
Islami Bank Bangladesh Limited.
 2

Abstract:
Every corporate firm has a significant duty to the society since they are components of it. Since
most commercial enterprises use up societal resources, they ought to give back to the
community. People's interest in corporate social responsibility (CSR) has increased significantly
in recent years, and they are beginning to demand that businesses fulfill their social obligations.
At the same time, businesses have begun to realize that they may benefit from using CSR as a
strategy. The corporate social responsibility (CSR) movement has gained significant traction in
recent years and is currently thought to be at its peak. CSR is currently one of the most talked-
about subjects in corporate, non-business, and government circles. The study's objective is to
offer a thorough overview of Bangladesh's PCB CSR activities. The purpose of the study is to
examine the various regulatory frameworks (CSR areas) pertaining to PCB CSR and their
respective contributions. This research revealed that PCBs' CSR initiatives are largely focused on
profit. According to the survey, PCBs are attempting to increase their contribution in compliance
with the appropriate parameters provided by Bangladesh Bank. This essay seeks to investigate,
in comparison to traditional banking systems, the CSR practices of sharia-based financial
institutions such as IBBL in Bangladesh. In the era of globalization, to meet the subsequent
monetary crisis, IBBL addresses the social and monetary concerns by undertaking programs
along with humanitarian & catastrophe relief, education, health, sport, arts & culture to benefit
the society. The study reveals a total of 3528 million Taka as CSR expenses by means of
examining IBBL five years’ annual reports (2013-2017), which addresses the absolute best
growth rate in the area of humanitarian (47%), education (29%) and health issues (12%)
respectively. It yields a sluggish growth in other sectors in where further investment is pretty
recommended for the social welfare of the under privileged region. By doing this paper,
researchers have also suggested some inevitable measures so that pinnacle administration and the
government take an ideal guideline to ensure the sustainable development of the country as a
whole.

Subject Areas
Business Ethics and Corporate Social Responsibility

Keywords
CSR, Social Welfare, Growth Rate, Sustainable, IBBL.

Acknowledgement
 3

At first I would like to thank our honorable Sir, I also thank our other teachers for their cordial
assistance to the students. My thanks also go to my elder brothers and other personalities who
continuously provide us guidelines and assistance for the preparation of this paper. I also thank
the officials of the banks who made the data about the banks available in internet. It really
reduced the pressure of huge data collection.
 4

Table of contents

SL No. Topics Page No.

1.0 Introduction 5-7

2.0 Corporate Social Responsibility(CSR) 8-17

3.0 Regulatory Framework 18-19

4.0 Analysis of Data Findings 20-31

5.0 Data Analysis and Findings on Islami Bank 32-36

Bangladesh Limited
6.0 Concluding Remarks 37-38

7.0 References 39

1.0 Introduction
 5

In certain instances, the adage "Oil your own machine" is not applicable in today's reality.
Today's business organization considers society in addition to itself. Over the past few decades,
the role of business has changed globally, and in developed economies particularly, from the
traditional "profit maximizing" approach to a socially responsible approach, where businesses
are accountable to all of their stakeholders, not just their stockholders. There are numerous
reasons why the role of business should change from a traditional to a responsible one, but
among them all, stakeholder perceptions of the company's performance should come first.

In one hand, enterprises create wealth and job opportunities for the society and on the other; they
are pollute and destroy environment and ecology with devastating impact on human health and
biodiversity worldwide. To address the social problems or the problems of the stakeholders, the
business community evolved a new approach in their business strategies named CSR and
through CSR enterprises are intent to strike a balance between economic and social goals, where
resources are used in a rational manner and social needs are be addressed responsibly. CSR can
be viewed as a comprehensive set of policies, practices, and programs that are integrated into
business operations, supply chains, and decision making processes throughout the company and
include responsibilities for current and past actions as well as adequate attention to future
impacts. CSR focuses vary by business, by size, by sector and even by geographic region. The
area of CSR is quite big and it includes all the good practices that increase the business
profitability and can preserve interest of all stakeholders. Bangladesh is a developing country.
Because of global competitiveness and demand, the CSR practices and standards are being
implemented in Bangladesh. But we are yet go a long way. Sadly, Bangladesh is still falling
behind even though it is a widely used technique abroad. In Bangladesh, it can be difficult to
fully apply CSR. In the end, Bangladesh should adopt stronger CSR practices for improved and
improved performance. CSR is now seen by the corporate sector in Bangladesh as a matter of
self-interest. The study has made an effort to observe the CSR procedures and activities of
Bangladesh's private commercial banks. The primary regulator of the nation's banking industry is
Bangladesh Bank. Bangladesh Bank is currently quite concerned about the issue. Because the
NBR released guidelines on tax rebates for CSR activities, Bangladesh Bank has taken the lead
in encouraging private commercial banks to engage in CSR activities.

1.1 Background of the study

The report is supervised and examined by the guide teacher. Objective of the program is to
expose the students to the organizational work environment & make the students knowledgeable
on specific area through research. Under this program, each student is required to work with a
topic to study on reporting purpose. My supervisor teacher authorized me to prepare thesis
proposal as part of Thesis paper.
 6

1.2 Objectives of the study:

 To know about the CSR activities, reasons of performing CSR and areas of CSR
 To gather the knowledge about CSR activities of private CBs of Bangladesh.
 To identify the major areas where CSR activities are performing by private CBs.
 To compare and analyze the contribution of CSR activities of private CBs in different
areas.

1.3 Rationale of the study

This study paper has both academic and policy implications. First of all, It will enrich our
knowledge about corporate social responsibilities, present status of CSR in private commercial
banks in Bangladesh. It will also be helpful to understand the areas of CSR and also applicable
other dimensions.

1.4 Methodology & Sampling:

For the preparation of the report, Information sources were identified first. The study is
exclusively a descriptive research and thus it is purely based on the information from secondary
data sources. The data collected for the purpose of the study involves the examination of annual
reports for the year 2014-2015 of private commercial banks listed on the Dhaka Stock Exchange
(DSE). The total number of scheduled banks 56 with 4 State Owned Banks, 4 Specialized Banks,
23 Conventional Private Commercial Banks, 7 Private Commercial Islamic Banks and 9 Foreign
Commercial Banks. Besides additional 9 banks have got approval but they have not yet started
its operation. The banking companies considered in the study include top five private
commercial banks. The samples of top five commercial banks are Dutch Bangla Bank Ltd,
Mercantile Bank Ltd, Prime Bank Ltd, Southeast bank Ltd and Bank Asia Ltd. The sample
population considered for the study has a noteworthy illustration of firms representing the
banking sectors listed on the DSE.

1.5 Literature Review

The idea of CSR is an emerging and effective thought of the present world. Many research
regarding CSR activities have already taken place. A summary is given below: Alam S.M.S, et.
al (2010) in a paper entitled “Corporate Social Responsibility of Multi National Corporations in
Bangladesh: A Case study on Grameenphone” pointed out that CSR is still an evolving concept
 7

that enables corporate executives to create and apply self determined policies to best meet the
needs and demands of its stakeholders. The peculiar nature of CSR practices makes their cross-
border management difficult. Achieving consistent CSR practices across global operations
involves not only the transfer of the CSR practice, but also the transfer of its underlying value
and meaning. Azim et al. (2011) in a study named “Corporate Social Disclosure in Bangladesh:
A Study of the Financial Sector”, 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. This sector plays an
important role in a country’s economic development. The literature recognizes that CSR
practices differ from country to country (Adams, Hill & Roberts, 1998b) and between developed
and developing countries (Imam, 2000). Moreover, different industry types have different CSR
patterns and characteristics (Gray, Javad, Power & Sinclair, 2001). According to surveys of
corporate social responsibility (CSR) practices conducted in western nations, the most
importance is given by businesses to the disclosure of human resource data, including staff count
and pay, equal opportunity, employee ownership, disability policy, and employee training (Gray
et al., 2001). It would not be fair to apply the findings of studies conducted in industrialized
countries to developing countries due to differences in geography, economics, the environment,
politics, regulations, social structures, and cultures. This is due to the likelihood that one of the
major factors influencing CSR practices will be the economic development stage. A small
number of studies have examined businesses in developing nations including China, Malaysia,
and Thailand(specifically, Hong Kong).

2. Corporate social responsibility

 8

This chapter presents the concept of CSR. It also explains the reasons for which companies
engage in CSR activities and the ways of performing CSR activities.

2.1 CSR and Constituents:

Corporate social Responsibility (CSR) is the responsibilities of an organization to proactively
promote the public interest by encouraging community growth and voluntarily eliminating
practices that harm the public interests. It is the deliberate inclusion of public interest into
corporate decision-making. Broadly, CSR activities of an organization should embrace to
honoring the three P’s-People, Planet and Profit. CSR policy would function as a self-regulating
mechanism, where business would ensure the adherence to laws & ethical norms.

A summary of CSR activities are presented in the following table 01:

CSR ambition Motivates Category
level ( Van Marrewijk,2003) (Carrol,1991)
Compliance Duty to society, CSR as a social obligation- perception of CSR Legal
Driven expenditures as a simply a cost. Economic responsibility is
paramount.
Profit Driven CSR as a strategic initiative- suing to create competitive Economic
advantage and superior financial performance. CSR
expenditures perceived as an investment in the creation and
renewal of competitive advantage- resulting in an enhanced
stream of future profit.
Caring Economic responsibility us paramount. Using CSR to balance Ethical and
the triple bottom line of profits, people and planet. Explicitly philanthropic
stating that the corporation will manage for social welfare, not
simply to create wealth for shareholders. Social and
environmental trumps economic responsibility.
Synergetic Use of CSR to attempt to create a sustainable corporation- that Economic,
will be able to an ongoing concern over the long run. Social or legal, ethical
environmental responsibility I strategically used to create and
competitive advantage and meet the corporation’s economic philanthropic
 9

responsibilities.
Holistic CSR as a corporate culture- similar to when firm adopts a Economic,
marketing, entrepreneurial or quality orientation. Social and legal, ethical
environmental responsibility is strategically used to create and
competitive advantage and meet the corporation’s economic philanthropic
responsibilities.

2.2 Reasons behind the involvement to CSR

From the analysis of different data sources, I found the following reasons for the involvement of
companies to CSR activities:
Moral obligation- The companies engage in CSR since they believe it is their duty to be a good
citizen and “do the right thing”.
Sustainability- The company focuses on environmental and community stewardship with the
belief that it is best for the company in the long run. A good explanation for this comes from the
World Business Council who explains sustainability as followed “Meeting the needs of the
present without compromising the ability of future generation to meet their own needs”.
Reputation- Many companies explain that they use CSR to improve the reputation and company
image, to strengthen the brand in order to demonstrate moral and because it even could raise the
company’s stock value.
Increased sales and market share- There is strong evidence that when customers make decisions
of which product to buy they consider factors such as the company’s participation in CSR
activities.
Improved brand positioning- When a company or a brand is associated with CSR it affects the
brand image and customers are likely to have positive feelings towards it.
Increase ability to attract, motivate and retain employee- Employees working for companies that
participate in CSR activities describes that they are proud of their company’s values and that it
motivates them.
Decreased operation cost- Many companies describe that their CSR activities result in decreased
operating costs and increased revenue.
 10

Increased interest for investors and financial analysis- Some argue that CSR activities can
increase stock value and it is easier for companies participating in CSR to get access to capital.
2.3 Aspects of CSR activities
There are numerous fields of performing CSR activities. In the 1970’s the following aspects
were focused:
 Disclosure of information to shareholders
 Disclosure of the board of directors
 Monopolistic behavior
 Equality of treatment for minorities
 Profit sharing
 Environmental protection
 Ethics in advertising
 Social impact of technology
As seen in the above discussions there is many different ways of engaging in CSR. Based on this
and the fact that CSR activities should go above and beyond the law. Usually CSR encompasses
of four categories: economic, legal, ethical and philanthropic. These are presented in “The
Pyramid of Corporate Social Responsibility”

Philanthropic Responsibilities

Ethical Responsibilities

Legal Responsibilities

Economic
Responsibilities
 11

Depending on how a company integrates CSR into their operations, it will be placed at a
different level of the pyramid. A business that is considered to have economic duties operates
under the theory that it is its duty to create the products and services that consumers require and
desire while also turning a profit. Companies that have legal responsibilities aim to fulfill their
economic obligations within the bounds of the law. A person's obligations to others and to ethics
include doing the right thing and preventing harm. Even if this goes beyond what is mandated by
law, ethical responsibility refers to unwritten standards, norms, and values that are implicitly
drawn from society. Legal and ethical duty are different in that there are no legal repercussions
for a firm that decides not to fulfill its obligations. However, companies that avoid taking ethical
responsibility is still risking consequences due to media survey where their ethical credibility
may be questioned by stakeholders. Philanthropic responsibilities are voluntary in nature and are
usually beyond what is expected by companies.

2.4 Corporate Social Responsibility (CSR) Implications to Business Activities

In the context of globalization, businesses are finding it difficult to adjust to the shifting
environment, especially in the export industry. Even though the Consumer Rights Movement, the
application of laws, and a formal understanding of the financial significance of CSR are not yet
as common in Bangladesh's corporate sector, businesses are progressively giving CSR a higher
priority in the regional market as well. People are becoming more conscious of the potential
direct financial benefits of CSR. By incorporating corporate social responsibility (CSR) as a
strategic investment into their core company strategy, management tools, and operations,
companies can support social and environmental goals. This is an investment, not a cost, much
like quality management. So, business organizations can thereby have an inclusive financial,
commercial and social approach, leading to a long term strategy minimizing risks linked to
uncertainty.

2.5 Corporate Social Responsibility (CSR) as Community Development

Corporate Social Responsibility (CSR) in Bangladesh can also contribute a lot to community
development. The corporate house can develop the community by creating employment,
providing primary education, contribution to infrastructure development like road and high-ways
and addressing environmental concerns. This is more relevant for a country like Bangladesh
where the government interventions in these fields being augmented by corporate alliance can go
a long way in developing the economy, society and environment.

2.6 Corporate Social Responsibility (CSR) in Bangladesh

 12

In Bangladesh, CSR ideas and practices have a long history of charitable endeavors dating back
thousands of years. Contributions to many charitable organizations, the underprivileged, and
religious institutions were among these altruistic endeavors. As of right moment, the majority of
companies in Bangladesh are first-generation, family-run enterprises. Frequently, they engage in
charitable activities related to community development without having a clear policy on costs or
a specific financial goal in mind. Furthermore, the majority of SMEs are part of the unorganized
sector and have no managerial structure and funding for social and environmental issues. Due to
these constraints, local businesses' senior management exclusively considers maximizing profits
rather than conducting business with the triple bottom line in mind: profit, planet, and profit.

and people (CSR definition of Lotus Holdings).In today's global perspective, conversations
about CSR practices in Bangladesh are relatively new, but the notion is not. Because the export
industry is a part of the global market, it is challenging to ignore CSR standards. Generally
speaking, it is accurate to say that Bangladesh's current state of labor rights practices,
environmental management, and corporate governance transparency are unsatisfactory. This is
primarily because of the inadequate enforcement of current laws and the lack of pressure from
civil society and interest groups such as Consumer Forums. Globally, CSR activities are playing
an increasingly important role in local acceptability as they are progressively being incorporated
into international business operations and, as a result, are becoming one of the deciding factors
for market access.

A focus on CSR in Bangladesh would be useful, not only for improving corporate governance,
labor rights, work place safety, fair treatment of workers, community development and
environment management, but also for industrialization and ensuring global market access.

Since, CSR entails working with stakeholders it is important to work from within and diagnose
the stakeholders; concerns so that CSR is truly embedded in the companies. By now, many CSR
dimensions are practiced in Bangladesh. The SMEs largely depend upon export. The US and EU
buyers set guidelines to Readymade Garment (RMG) industry to ensure the standards. The 1992
Harkin's Bill and subsequent consumer and industry boycott of RMG products by USA and the
consequent remedial moves by local RMG sector is one example. Moreover, some buyers from
EU visited the sites of recently collapsed garments factories. A temporary ban was also imposed
on shrimp export to the EU on health and hygienic standard and appropriate remedial action
 13

followed in that instance too. But, some of the exporters found difficulty in convincing the
US/EU buyers to have positive attitude towards Bangladesh due to inadequate CSR practices.

Entrepreneurs must understand how corporate social responsibility (CSR) affects their
operations. In the context of globalization, businesses are finding it difficult to adjust to the
shifting environment, especially in the export industry. Companies have been increasingly
attaching more importance to Corporate Social Responsibility (CSR) in the local market, even
though the Consumer Rights Movement, the implementation of government rules, and a
structured attitude about the economic importance of CRS are not yet so popular in Bangladesh's
corporate sector. People are becoming more conscious of the potential direct financial benefits of
CSR. By incorporating corporate social responsibility (CSR) as a strategic investment into their
core company strategy, management tools, and operations, companies can support social and
environmental goals. This is an investment, not a cost, much like quality management. So,
business organizations can thereby have an inclusive financial, commercial and social approach,
leading to a long term strategy minimizing risks linked to uncertainty.

CSR in Bangladesh can also contribute a lot to community development. The corporate house
can develop the community by creating employment, providing primary education, contribution
to infrastructure development like road and high-ways and addressing environmental concerns.
This is more relevant for a country like Bangladesh where the government interventions in these
fields augmented by corporate alliance can go a long way in developing the economy, society
and environment.

Lack of enforcement of Industrial Laws and Regulations, weak unions, absence of consumer
rights groups and high level of corruption within the regulatory bodies make CSR violation
rampant in Bangladesh. Two most significant foreign exchange sources is the RMG sector and
the overseas manpower export. Unbelievably low compensation, working hours,
health/hygiene/sanitation conditions, fire safety and various types of abuse are so common and to
the extent of inhumanity that will shock any conscientious individual to the core. Recently, the
RMG sector employees have embarked on a industry wide movement to establish their rights.

While recruiting firms mostly take advantage of overseas workers, these rural, largely illiterate
individuals are forced to sell everything they own, go bankrupt, and take out high-interest loans.
 14

Many of them are forced to return as beggars, some of them after lengthy incarceration in foreign
jails, as a result of recruiters deceiving them and illegal actions by their abroad employers. There
is seldom any recourse offered by the law enforcement authorities. Numerous industrial facilities
use machinery that is 50 years old or older, which pollutes the air, land, and water and is lethal.
Effluent treatment plants are likewise not installed in more recent factories. Beginning with
FMCGs, fruits, vegetables, and all other consumable items, adulteration, and occasionally
atypical ripening combined with toxic substances, keeping fish fresh with applying deadly
formalin and all other malpractice is rampant and carefree. Good governance and efficient law
enforcing agencies can only solve these plights.
Although a developing country, because of global competitiveness and demand, the CSR
practices and standards are being gradually implemented in Bangladesh. But there is a long way
to go. There are challenges to implement CSR properly in Bangladesh. Ultimately CSR practices
should be better practiced in Bangladesh for better and enhanced performance. In the publication
"Good Governance and Market-Based Reforms: A Study of Bangladesh, Fara Azmat and Ken
Coghill relates Good Governance with CSR by discussing the good governance indicators of
regulatory quality, rule of law and control of corruption in the context of Bangladesh and
analyses how lack of good governance indicators affects the success and sustainability of
reforms and contributes to the lack of business ethics and CSR in Bangladesh.

2.7 CSR Applications and Realities in Bangladesh

Bangladesh has a rich tradition of charitable endeavors dating back thousands of years, which is
reflected in the ideals and practices of corporate social responsibility, or CSR. Contributions to
many charitable organizations, the underprivileged, and religious institutions were among these
altruistic endeavors. As of right moment, the majority of companies in Bangladesh are first-
generation, family-run enterprises. In numerous cases, they engage in charitable activities related
to community development without having any clear guidelines for costs or a clear financial
return in mind. Furthermore, the majority of SMEs are part of the unorganized sector and have
no managerial structure and funding for social and environmental issues. These limitations drive
the top management of local companies to think only about the profit maximization rather than
doing business considering the triple bottom line: profit, planet and people (CSR definition of
Lotus Holdings). The discussions on CSR practices in Bangladesh in its modern global terms, are
relatively new, but not so for the concept itself. Because, being a part of the global market, it is
difficult to ignore CSR standard specifically in the export sector. Generally speaking, it is
accurate to say that Bangladesh's current state of labor rights practices, environmental
 15

management, and corporate governance transparency are unsatisfactory. This is primarily

because of the inadequate enforcement of current laws and the lack of pressure from civil society
and interest groups such as Consumer Forums. Globally, CSR activities are playing an
increasingly important role in local acceptability as they are progressively being incorporated
into international business operations and, as a result, are becoming one of the deciding factors
for market access. In Bangladesh, corporate social responsibility (CSR) will be beneficial for
industrialization and guaranteeing access to international markets, as well as for enhancing
corporate governance, labor rights, workplace safety, equitable treatment of employees,
community development, and environmental management.

Since, CSR entails working with stakeholders it is important to work from within and diagnose
the stakeholders; concerns so that CSR is truly embedded in the companies. By now, many CSR
dimensions are practiced in Bangladesh. The SMEs largely depend upon export. The US and EU
buyers set guidelines to RMG industry to ensure the standards. The 1992 Harkin’s Bill and
subsequent consumer and industry boycott of RMG products by USA and the consequent
remedial moves by local RMG sector is one example. Moreover, some buyers from EU visited
the sites of recently collapsed garments factories.
However, due to insufficient CSR procedures, some exporters found it difficult to persuade US
and EU buyers to have a positive attitude toward Bangladesh. In Bangladesh, consumer rights
groups are nonexistent, industrial laws and regulations are not enforced, unions are weak, and
regulatory authorities are heavily corrupt, which leads to a high rate of corporate social
responsibility violations. The export of foreign labor and the RMG industry are the two main
sources of foreign cash. Relatively low pay, long hours, unsanitary and health conditions, fire
safety, and other forms of maltreatment are so prevalent and extreme that they would shock any
decent person to their core. Employees in the RMG sector have recently started a push to
establish their rights across the business.
Overseas workers are mostly exploited by recruiting agencies whereas these rural and mostly
illiterate people have to sell all their belongings becoming paupers of lend money at very high
interest. Owing to cheating by the recruiters and unlawful behavior by the overseas employers,
many of them get compelled to come back as beggars, some after long confinement in overseas
jails. Hardly any remedy is available from the law enforcing agencies. Many industrial units run
with half-century old machinery producing fatal air, soil and water pollutions. More modern
factories also don’t care to install Effluent Treatment Plants.
 16

Starting from FMCGs, vegetables, fruits and all other conveyable goods, adulteration, abnormal
ripening at times with poisonous elements, keeping fish fresh with applying deadly Formalin and
all other malpractice is rampant and carefree. Good Governance and efficient law enforcing
agencies can only solve these plights.

2.8 Prospects and Future of CSR in Bangladesh

Bangladesh is a developing country. Because of global competitiveness and demand, the CSR
practices and standards are being implemented in Bangladesh. But we are yet go a long way.
There are challenges to implement CSR properly in Bangladesh. Ultimately Corporate Social
Responsibility (CSR) practices should be better practiced in Bangladesh for better and enhanced
performance. In the publication “Good Governance and Market-Based Reforms: A Study of
Bangladesh, Fara Azmat and Ken Coghill relates Good Governance with CSR by discussing the
good governance indicators of regulatory quality, rule of law and control of corruption in the
context of Bangladesh and analyses how lack of good governance indicators affects the success
and sustainability of reforms and contributes to the lack of business ethics and CSR in
Bangladesh.

2.9 Corporate Social Responsibility (CSR) Perceptions of Business Community in

Bangladesh
At a Roundtable organized by CSR Center of Bangladesh Enterprise Institute, held on Thursday,
February, 2013, speakers identified dearth of expertise, poor accountability as major obstacles to
obstacles to practicing CSR in Bangladesh. They elaborated that lack of expertise and poor
accountability of corporate houses are obstacles to implementation of CSR in Bangladesh. The
speakers also said many CSR activities by Bangladeshi corporate houses are centered mainly on
publicity and short-term implications. The BEI roundtable on CSR titled 'Corporate Social
Responsibility Practices and Challenges in Bangladesh' was a part of its 'Dialogue Series on CSR
in ex.'.BEI President Farooq Sobhan said corporate entities should understand what CSR is and
why it is important. The private sector enterprises will remain weak unless and until they practice
CSR in their ventures, the BEI president said, adding that when it comes to adopting good
corporate governance, Bangladeshi companies are lagging far behind those in India, Pakistan and
Sri Lanka. "Properly implemented CSR programmes help the companies meet legal and societal
 17

expectations and benefit governments, employees, citizens and businesses," noted Farooq. On
the other hand, poorly implemented CSR programs are nothing but public relations exercises, he
mentioned. Representatives of Unilever Bangladesh, Dhaka Bank and BRAC briefed the
roundtable about their CSR activities.

3.0 Regulatory Framework: CSR areas

 18

Under the SRO No. 270-Ain/2010, dated 01.07.2010 is given 22 areas of CSR activities for
enjoying 10% tax rebate. The areas:
(1) Donation to organizations engaged in clean water management;
(2) Donations to organization engaged in forestation;
(3) Donations to organization engaged in beautifications of cities;
(4) Donations to organization engaged in waste management;
(5) Donations for redressing the hardships caused by natural calamities such as cyclone,
earthquake, tidal wave and flood challenged through Government organizations;
(6) Donations to organizations engaged in establishment and management and management of
old persons homes;
(7) Donations to organizations engaged in the welfare of mentally or physically handicapped;
(8) Donations to educational institutions run for the purpose of education of rootless children;
(9) Donations to organizations engaged in projects on accommodation for the slum dwellers;
(10) Donations to social organizations engaged in publicity of movements relating to women’s
rights and anti-dowry practices;
(11) Donations to organizations engaged in feeding and clothing and sheltering and rehabilitation
of orphan/rootless children;
(12) Donations to organizations engaged 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) Donations to organizations engaged in health some situation in Chittagong Hill Tracts, char
areas and areas surrounding breaking up of bank of river;
(14) Grants to organizations engaged in treating cleft lips, cataract, cancer, and leprosy;
(15) Grants the organizations engaged in treating acid victims;
(16) Donations to hospitals engaged in providing free medical treatment to poor patients and
specialized for developing the quality of treatment, such as cancer, liver, kidney, thalassemia,
eye and cardio;
(17) Donations to organizations distributing freely at the level of use of birth –control products
with a view to solving the population problem and to conduct camps for voluntary sterilization;
(18) Grants to Public Universities;
 19

(19) Expenditure incurred through educational institutions recognized by Government for

providing technical and vocational education for meritorious poor students;
(20) Money invested in establishing lab for providing 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) Donations to organizations engaged in providing technical and vocational training to
unskilled or semi-skilled labor for export of human resources; and
(22) Donations to organizations involved with infrastructure of sports and provision of training at
national level.
 20

4.0 Analysis of Data and Findings

From the data given in the financial statements of our selected private commercial banks, I found
the following different areas of different banks.

Table 02: Major CSR activities of Sample banks at a glance

DBBL MBL PBL SBL BAL

Education Education Education Education Education
Health Health Health Health-Care Health
Disaster Disaster Disaster - Environment Dhaka City
Culture& management management Sports Beautification
Sports Sports Sports Art & culture Environment
Miscellaneous Art & culture Others Community Culture and
Others development Heritage
Others Sports
Disaster
management
Others

4.1 Corporate Social Responsibility (CSR) Programs details of DBBL

Since inception, as a responsible corporate body, Dutch-Bangla Bank Limited has been playing a
pioneering role in implementing various social and philanthropic programs to help disadvantaged
people of the country. Education, healthcare, human resources development, conservation of
nature, creation of social awareness, rehabilitation of distressed people and such other programs
to redress human sufferings are some of the important areas where the Bank carries out its social
and philanthropic activities.

4.1.1. Scholarships
Education is a pre-requisite for the overall development of the country. Dutch-Bangla Bank
Limited (DBBL) has been awarding the largest number of scholarships in Bangladesh for the
 21

meritorious and needy students every year since 2003. This scholarship is available for different
levels of education such as:
HSC and Graduation Level: DBBL awards about 300 new scholarships every year to needy
and meritorious students along with the continuing awardees studying at HSC and Graduation
Level. The Scholarships are available for the entire academic period and the Bank spends about
Taka 4.00 crore every year for awarding these scholarships. Under this program a scholarship
awardees is provided with the following benefits

SL No. Level of Amount of scholarship One time grant annually Total grant per
study per month (tk) for purchasing year for each
books/reading materials awardee (Tk)
1. H.S.C. 1000.00 2500.00 14500.00
2. Graduation 2000.00 5000.00 29000.00

M. Phil / Ph.D/ Post Doctoral Level: Fellowship is awarded to those researchers having
Masters Degree and studying at different public universities in M. Phil / Ph.D/ Post Doctoral
Level. Every year 50 fellowships are given in this level to the researchers for their full research
period (as required by the university curriculum) at the rate of Taka 5,000.00 per month.

4.1.2. Assistance to Ibrahim Cardiac Hospital

An amount of Taka 93,600,000.00 was donated to Ibrahim Cardiac Hospital for setting up a Cath
Lab, two Operation Theatres with facilities for Liver & Kidney Transplantation and Heart
Surgery.

4.1.3. Smile Brighter

Cleft-lip is far more a social set back than a health problem. Boys and girls cursed with cleft-lips
face a lot of problems in everyday life ranging from disruption of formal education, attending
social ceremonies and impediment at the time of getting married. Considering the gravity of the
situation DBBL has taken the initiative to bring back smile on the face of the boys and girls with
cleft-lip through plastic surgery since 2003. More than 3000 number of poor cleft-lipped boys &
 22

girls have so far been successfully operated across the country. Besides special camps were
arranged under this 'Smile Brighter' program in Dhaka, Chittagong, Cox's Bazar, Rajshahi,
Sylhet, Khulna, Barisal, Bogra, Comilla, Rangpur, Dinajpur, Lalmonirhat, Faridpur, Jessore,
Mymensingh, Sirajgonj, Kustia, Shatkhira, Feni, Savar, Bhola etc. As a continuous process, the
cleft-lipped boys & girls are being operated across the country for restoration of hope and dignity
in their lives.

4.1.4. Assistance to Acid Victims

Since 2000, DBBL launched massive campaign against social menaces like acid violence
through print & electronic media. Subsequently, DBBL has taken a financial support program to
rehabilitate the helpless acid victim women of the country by maintaining small scale agro-based
rural enterprises like poultry, vegetable farming, goat farming, fish farming etc. Under this
program, 351 acid victims already received financial support at the rate of Taka 10,000.00 (Taka
ten thousand) each to become self-reliant.

4.1.5. Caring patients living with AIDS/HIV Positives

In the year 2000, DBBL first initiated a campaign on AIDS prevention through print and
electronic media. Subsequently, DBBL has taken a financial assistance program for supporting
HIV positive patients since 2004 titled- "Caring Patients Living with AIDS." Under this
program, 50 HIV/AIDS patients (HIV/AIDS affected women and children) are being provided
with ARV medicines, clinical supports, food supplement and others.

4.1.6. Prevention of drug abuse

An amount of Taka 1,00,00,000.00 (Taka one crore) was donated to APON to establish the first
comprehensive drug rehabilitation centre in Bangladesh named "APONGAON" at Singair,
Manikganj.

4.1.7. Rural Medi-Care Service Center

DBBL has established 10 Rural Medi-Care Service Centers at its rural branches to render free
medical services to the rural and destitute people of the adjoining areas specially for the women
and children.
 23

4.1.8. Assistance to Impact Foundation Bangladesh

Taka 21,00,000.00 (Taka twenty one lac) was donated to Impact Foundation Bangladesh to
procure equipment and medical instrument for Operation Theater of a newly build hospital
named "Jibon Mela" at Meherpur district.

4.1.9. Assistance to Thengamara Mohila Sabuj Sangha

Taka 10,00,000.00 (Taka ten lac) was donated to Thengamara Mohila Sabuj Sangha for
modernizing the Operation Theater of Rafatullah Community Hospital, Bogra.

4.1.10. V.V.F. & prolaps uterus operating facilities for the financially handicapped women
DBBL has been providing financial support to poor and helpless women suffering from V.V.F.
& prolaps uterus to meet entire cost of repair to bring them back to normal & reproductive life.

4.1.11. Saving the Nation from the curse of Dowry

Since 2000, DBBL initiated massive campaign against dowry culture through print & electronic
media to restore hope & dignity in lives of dowry victims. DBBL has been extending financial
assistance to the helpless dowry victim women by setting up agro-based rural enterprises like
poultry, vegetable farming, goat farming, fish farming etc. Under this program, 800 dowry
victims already received financial support at the rate of Tk. 10,000.00 (taka ten thousand) each to
become self-reliant.

4.1.12. Financial assistance to meet natural disaster

The Bank's foundation undertakes a number of programs arising out of the natural calamities and
health hazards which are emergent in nature and cannot be addressed by the poor people. In
2015, a total amount of Taka 6,21,25,000.00 in cash and kind was donated for rehabilitation of
people seriously affected by cyclone, flood and land slide. The donations in kind included food,
medicine, water purifying tablets and blankets.

Particulars of donations for people affected by natural disaster Amount in Taka

Rehabilitation of land slide victims of Chittagong 25,00,000
 24

Donation to Chief Advisor’s Relief Fund for rehabilitation of flood victims 1,00,00,000
Rehabilitation of flood victims of Brahmanbaria District 10,00,000
Donation to Chief Advisor’s Relief Fund for rehabilitation of “Sidr” hit 1,00,00,000
people
Donation to Bangladesh Army Relief Fund for rehabilitation of Sidr-hit- 50,00,000
people
25000 pieces of blanket to Bangladesh Army relief fund for Sidr-hit-people 55,00,000
Blanket for cold-hit people of northern part of the country 50,25,000
OR saline & Cholera saline for the blood victims 31,00,000

4.1.13. National Steering Committee on Voter List and National ID Card Project
DBBL donated Tk. 87,00,000.00 (eighty seven lac) to National Steering Committee on Voter
List and National ID Card Project to procure laptop computers and accessories for the
implementation of Pilot Project for Voter Registration and National ID Card.

4.1.14. Pediatrics Department of Sir Salimullah Medical College & Mitford Hospital
DBBL has donated a Multimedia Projector to Pediatrics Department of Sir Salimullah Medical
College & Mitford Hospital for facilitating modern medical education.

4.1.15. Pediatrics Department of Dhaka Medical College Hospital

DBBL has donated a Multimedia Projector to Pediatrics Department of Dhaka Medical College
Hospital for facilitating modern medical education.

4.1.16. Donation to Nurture

Taka 5,00,000.00 (Taka five lac) was donated to Nurture for setting up a physiotherapy unit in
their new six storied building.

4.1.17. Assistance to 14 selected organizations

Financial support was given to 14 selected organizations working with disabled children for
ensuring education, training and rehabilitation.
 25

4.1.18. Mass campaign for prevention of road traffic accident

Taka 2,00,000.00 was given to Nirapad Sarak Chai to organize the program named National
Road Safety Day-2007. Mentionable that Taka 5,80,000.00 was given earlier to Nirapad Sarak
Chai for helping families victimized by road accident.

4.1.19 DBBL for Environment

Like anywhere else in the globe, environmental deterioration and the loss of natural resources are
major concerns in Bangladesh. Poverty, population growth, and a lack of environmental
knowledge are all contributing factors to environmental degradation. Deforestation, wetlands
loss, soil nutrient depletion, and other issues are examples of how it shows up. Floods, cyclones,
and tidal bores are examples of natural disasters that cause significant environmental and
socioeconomic harm. In order to preserve the environment, which is vital for both the current
and future generations, DBBL has been consistently raising social consciousness. In order to
achieve this, DBBL frequently runs advertisements in print and digital media with the goal of
creating an environmentally friendly society that supports a long and healthy human life.
DBBL complies with environmental standard while financing industrial projects. Projects with
likely adverse impact on environment are strongly discouraged by DBBL. We are trying to
incorporate sound environmental management process in business operations of projects
financed by us that can ensure healthy and sustainable lives for our future generations. DBBL
introduced a guideline demanding assessment of environmental and social impacts of the
projects to ensure that operations of the projects would be eco-friendly.

4.2 CSR details of Mercantile Bank Limited (MBL)

In order to perform CSR, the bank has formed a foundation namely “Mercantile Bank
Foundation” that plays its role mainly by extending social beneficial services. The foundation
strives to preserve and promote cultural heritage and support artistic expression. Each year the
bank donates 1% of its operating profit to the foundation for continuing CSR activities.
 MBL contributes handsomely in the areas of disaster relief, health, education and social
welfare.
 It also provides fund for state-of-art research, as well as for innovative projects in the
area of Bengali Literature & language, social insertion and disability.
 26

 MBL gives award to 8 eminent personalities in every year as recognition of their

outstanding contribution in 8 different fields.

4.3 CSR Details Prime Bank Limited (PBL)

Prime Bank Limited (PBL) contributes 3% of net profit before tax as donation to “Prime Bank
Foundation” for undertaking projects in health & education. Prime Bank Foundation has made an
ignition required to remove the access barrier of some of many economic hardship-hit estimable
students to their desired level of education.

4.3.1 Education
 The underprivileged but meritorious students are being provided with financial support in
the form of monthly stipends for the persuasion of their graduation/post-graduation level
studies in the country’s public sector universities and medical/engineering/agriculture
colleges.
 In 2014, a total of 270 poor but meritorious students studying in country’s 32 educational
institutions were selected for PBF stipends who would continue to receive an amount of
Tk. 1500 per month starting from October 2014 on an ongoing basis.
 In 2015, a total of 320 poor but meritorious students were selected for PBF stipends.
Because of increased cost of living, the amount of monthly stipend has been increased to
Tk.1800.
 Prime Bank is assisting for the management development activities of Dhaka University
Senate.

4.3.2 Financial Inclusion

 PBL’s exposure to SME Sector Tk. 1,900.00 Crore & above, Sponsored workshop on
Small & Medium Enterprise on February 2015,
4.3.3 Health
 Under Dristy Daan Project, 1,258 poor/ultra poor cataract patients were identi_ied and
operated. In addition, 779 persons with refractive error were prescribed spectacles after
relevant examinations done at eye camp and 207 patients were given spectacles free of
cost.
 27

 Through ‘Keep the Heart Beating Project’ the total costs of the cardiac surgeries of 12
children with congenital/acquired heart diseases are contributed.
 Contributed for the construction of the hospital building of Rangpur Diabetic Association
and a Passenger cum Bed lift for Sylhet Diabetic Association Hospital.
 Sponsored “The World Blood donor’s day” organized by Sandhani, a voluntary
institution of medical and dental students.

4.4 CSR details of Southeast Bank Limited (SBL)

4.4.1 Education
 Sponsored 9th International Conference on Computer & Information at Independent
University Bangladesh.
 Sponsored 44th Convocation Ceremony of Dhaka University.
 Sponsoring Golden Jubilee program of Azimpur School & College.
 Donation to Dhaka University Alumni Association.
 Sponsored NSU All Asian Inter-varsity Debating Championship.
 Donation to Abbas Uddin Khan Model College.

4.4.2 Social welfare

 Sponsored International Conference on Global Climate organized by DU.
 Donation to 30th Commonwealth journalists Association, Pathak Samabesh, Rotary Club
of
 Dhanmondi, Islamic Banks Consultative Forum.
 Donation for constructing a brick house to Disahri Foundation.

4.5 CSR details of Bank Asia Limited (BAL)

Bank Asia contributes to the development efforts of the government and other recognized
agencies including charitable, educational and healthcare institutions, throughout the country.
4.5.1 Education
 Under Bank Asia’s “Higher Studies Scholarship” scheme, poor but meritorious students
of rural areas where the bank has branches are awarded scholarships for their higher
studies in several core subjects. The scholarships are given basing on the SSC and HSC
 28

exam results and the duration of the scholarship is generally 4 to 5 years. Under the
program, students receive Tk.2,000 per month and a lump sum grant of Tk.10,000 is
given annually to purchase books and for payment of tuition fees. This scheme was
introduced in 2005, presently a grand total of 80 students are enjoying benefit of this
scheme.
 Help poor students in rural areas by establishing and operating Computer Learning
Centers (CLC) in different schools in providing a technological platform for students.
Already 13 CLCs have been established in different rural schools and are in full
operation. About 1,000 students have enrolled so far in these CLCs out of which 900
students have already obtained certificates. The bank is also going to setup another 15
CLCs from where more than 3,000students are expected to receive education in computer
technology every year.
4.5.2 Health
 In the year 2014, Bank Asia 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.
 Donated Tk. 1.5 million for purchasing an ambulance for a hospital run by Bir Shreshta
Matiur Rahman Foundation.
 Financial support to Thengamara Mohila Sobuj Shangha for their hospital at Bogra,
Centre for rehabilitation of the Paralyzed (CRP) and to Acid Survivors Foundation.
 The bank also arranges voluntary blood donation campaign on various national occasions
where the officers of the bank and general people participated spontaneously.
 29

4.5.3 Financial Inclusion

 Credit lines are extended to different NGOs to support the initiatives for agricultural
development and alleviation of poverty in the rural areas.
 Introduced ‘Palli Shawnirvor’ and ‘Kormoshangsthan Prokolpo’ under which
microfinance is channeled to the target groups. So far, the bank has extended loans in
these sectors amounting to Tk. 460.67 million up to September 30, 2008 through NGOs
and rural branches.

4.6 Comparative Analysis:

Table 03: Compliance with regulatory framework of five banks

SL CSR Areas DBBL MBL PBL SBL BAL %
1 Engaged in clean water management - - - - - 0
2 Engaged in forestation - - - - - 0
3 Beautifications of cities - - √ √ √ 60
4 Waste management - - - - - 0
5 Natural calamities √ √ √ √ √ 100
6 Old persons homes - - - - - 0
7 Mentally or physically handicapped √ √ - - - 40
8 Education of rootless children √ √ √ √ √ 100
9 Accommodation for the slum dwellers - - - - - 0
10 Women’s rights and anti-dowry practices - - - - - 0
11 Rehabilitation of orphan/rootless children √ √ √ √ √ 100
12 In research on independence war, regaining √ √ √ √ √ 100
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 - - - - - 0
Tracts, char areas and areas surrounding
breaking up of bank of river
14 Engaged in treating cleft lips, cataract, cancer, √ - - - √ 40
 30

and leprosy
15 Engaged in treating acid victims √ - - - - 20
16 Hospitals engaged in providing free medical √ √ √ √ √ 100
treatment to poor patients
17 Birth control products with a view to solving - - - - - 0
the population problem and to conduct camps
for voluntary sterilization
18 Grants to Public Universities √ √ - - - 40
19 Technical and vocational education for √ - - - √ 40
meritorious poor students
20 Training on computer or information √ - √ √ √ 80
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 - - - - - 0
or semiskilled
labor for export of human resources
22 Sports and provision of training at national √ √ √ √ √ 100
level
Total 12 08 08 08 10 13

Table 03 tries to verify contribution of banks in different areas of CSR. There are 22 prescribed
areas of CSR but only 13 areas are participated by five banks (59%). So it is clear that 9 areas
(41%) there is no contribution from any banks. There are only 6 areas (100%) where each bank
has participation and the lowest participation is 3 areas (40%). Among the 5 banks DBBL has the
highest participation areas (12) and then bank Asia Ltd (10). It is clear that participation of CSR
areas of different bank is considerably limited because many areas where the bank has no CSR
contribution that is very concerning issue.
 31

4.7 Findings
According to the aforementioned report, business organizations—private commercial banks in
particular—have given corporate social responsibility (CSR) initiatives a high emphasis since
they first emerged in Bangladesh. It is noteworthy that the banks are progressively increasing
their CSR efforts even though they are not fully complying with the legislative framework. In the
chosen example, the Dutch-Bangla Bank Ltd. is in charge of the principal CSR initiatives.
Additionally, they are adhering to the regulatory structure more. They donate around 6.5% of
their profits to various forms of development and social activity. The next-highest percentage of
profits being allocated to CSR initiatives is being spent by Prime Bank Ltd. The government
offers rewards for carrying out charitable deeds. These banks are placing greater emphasis on
health, sports, culture, education, the environment, and martyrdom.

5.0 Data Analysis and Findings on Islami Bank Bangladesh Limited

 32

Even said, it is noted that the nation's banking and financial institutions are all concurrently
carrying out their social obligations. Islami Bank Bangladesh Limited was established on March
30, 1983, and has been operating as a sharia-compliant financial institution in Bangladesh ever
since. Being a responsible corporate entity and one of the biggest Islamic banks globally. IBBL
has obligations to the communities it works in and calls home, in addition to its stakeholders.
They build superior value by improving business procedures, improving the lives of those around
us, and supporting the communities. Their allegiance is founded on these factors, as well as those
of their clients, workers, and stakeholders. The CSR program of IBBL targets at the welfare and
well-being of the people of the earth, the planet itself and all its stakeholders. Holding that in
view its CSR focuses on the triple bottom line: People, Planet and Profit.

Table 1. Sector wise CSR expenditure from 2013 to 2017. (Amount in million Tk).
Source: Annual report of IBBL (2013-2017).
 33

the total CSR expenditures from 2013 to 2017 and the resulted bar char describes the growth rate
of each year. As per the commitment of IBBL to being a responsible corporate entity, they grant
and assist volunteers in all communities around the country, especially the less fortunate
segments of the community, including humanitarian & disaster relief, education, environment,
health, arts &culture as properly as others sector. As a result, the listed above figure
demonstrates their CSR activities which exhibit an upward style in almost every year besides for
a decrease trend in the year of 2016 which the quantity diminished via 16% (Figure 1). Total
CSR expenditure of this financial institution was 476 million, 525 million, 800 million, 671
million and 1058 million in 2017 respectively. An amount of the complete 3530 million for
6,043,974 beneficiaries was spent through IBBL from the year of 2013-2017 which is the
absolute best in wide variety among all other banks.

5.1. Sector Wise Csr Expenditure from (2013-2017)

5.1.1. Humanitarian and Disaster Relief
As a conscious corporate citizen, Islami Bank Bangladesh Limited, furnished monetary funding
for a quantity of environmental lawsuits over the long time. As they believe that catastrophe can
take anywhere. No nation, rich or poor, is immune from dangers of accidents and mess ups
inflicting deaths and injuries, destructions to houses, belongings like disrupting financial things
to do and livelihoods of families.

Figure 1. Total CSR expenditure of IBBL and growth rate. Source:

Annual report of IBBL (2013-2017).
 34

5.1.2. Education

Education is a pre-requite for the overall development of the country. Keeping this view in mind,
IBBL has been engaged with the promotion of education sector of the country from the
beginning. IBBL spent an amount of Tk.1015 million for 51,773 beneficiaries from 2013-2017
for this purpose. The following graph (Figure 3) shows a sluggish growth for the education
sector from the year 2013 to 2016 but there is a high growth in the year of 2017 by 138%. Apart
from this, IBBL has been providing scholarship to the very poor 2700

students (1500 in HSC, 800 in Graduation and 400 in Special Scholarship level) securing GPA 5
in SSC & HSC examinations under its direct Scholarship program. The Scholarship is provided
to the students @ Tk. 2000/-per month for 2 years for HSC level with Tk. 3000/—at a time for
purchasing Books per year. Tk. 4500/—(Urban) & Tk. 3000/—(Rural) per month for 3 to 5 years
for Graduation level with Tk. 5000/—at a time for purchasing Books per year. In addition,
Special scholarship is allowed to 400 meritorious but poor students in different educational
institutions. They also contributed to “PROYASH” which is an institute run under the
patronization of Bangladesh Army for the well-being of children with exceptional needs and
disability.

Figure 2. CSR spending of IBBL on humanitarian & disaster relief.

Source: Annual report of IBBL bank (2013-2017).
 35

Figure 3. Source: Annual report of IBBL (2013-2017).

Tk. 35.00 million to “PROYASH”, Jessore. Considering the disabled children as an asset of the
fellowship, the Bank stands beside the authority of Proyash for fuel! element of their demand.
During this period IBBL donated Tk. 5.00 million to Rabeya Ali girls’ school & college,
chandrawdigolia, Gopalgonj, Tk.5.00 million to PanchkholaMukti senior high school & College,
Madaripur and Tk 2.5 Million to Fakir Sohrab Ali Collage, Mymensingh.

5.1.3. Health Program

Health care is a basic need of all societies. But people are facing here a perilous state of affairs
due to a hazardous Medicare system of the state. Seeing this, IBBL takes several initiatives in
individual and organizational level for growing health sector of Bangladesh. IBBL spent an
amount of Tk. 433 million for 320,128 beneficiaries from 2013-2017 for this purpose to donate
Tk. 87.41 million to The International Centre for Diarrheal Disease Research, Bangladesh (icddr,
b) Dhaka, Tk. 20.00 million to Holy Family Red Crescent Medical College Hospital and
Tk.35.00 million to Anjuman Mu! Idul Islam, Kakrail, Dhaka. In the graph, it depicts a lowest
amount of 17 million which have been spent in health sector in the year 2016 and the highest
expenditure done by IBBL in health sector was 226 million in the year of 2015. It clearly shows
a sluggish growth in health (Figure 4).
 36

5.1.4. Sports, Arts & Cultural Program

A nation becomes physically and mentally well and healthy through sports programs. By
participating in these kinds of activities, young people can steer clear of many negative
situations, such as drug use, involvement in illegal parties, stealing money from unsuspecting
others, etc. For this reason, the IBBL annually sponsors a number of sporting events. IBBL
supports its employees' participation in sports. IBBL spent Tk. 167 million on this purpose
between 2013 and 2017. Table 1 shows a declining tendency for this industry.
 37

6.0 Concluding Remarks

It's true that banks are investing more in their CSR initiatives, but not at the same rate as their
profits. Common CSR initiatives in Bangladesh are mostly focused on reducing poverty and
addressing health, education, and other social issues. They also include charitable work, cultural
enrichment, youth development, women's empowerment, and supporting the arts and sports.
Comparing their earnings will make this evident. 62.5 percent of DBBL's profits go toward CSR
initiatives; in contrast, MBL (0.22%), PBL (2.87%), SBL (0.85%), and BAL (1.73%) give less.
That all banks donate a small portion of their revenues to corporate social responsibility is quite
alarming. The analysis makes it evident that there is little involvement from various banks in
various CSR initiatives.
A prescription has given where there are 22 areas of CSR are identified but most of the banks
participation is limited to around 10 to 13 areas. DBBL shows the highest areas (11) of
contribution, where MBL (8), PBL (8), SBL (8) and BAL (10) areas respectively. It is a matter
of thinking that banks aren’t uses their maximum in CSR areas. There are numerous areas where
there is no involvement from banks, such as clean water management, afforestation, trash
management, elderly people's houses, slum dweller housing, women's rights and anti-dowry
practices, birth control goods, etc. That should worry every bank immensely.
Another finding from the survey was that all banks give the fields of health and education careful
thought. The study's banks made the largest contributions to the fields of education and health,
respectively. Another crucial issue is that banks care deeply about managing natural disasters,
particularly those caused by cyclones, floods, etc. All banks made contributions to our Prime
Minister Relief Fund, which was set up specifically for the BDR community's flood victims.

Now CSR is a demand of the people to the organization. But CSR contribution of our private
CB’s is not only corporate responsibility but also tax rebate benefits. The argument is clear when
Bangladesh Bank requested all banks to help flood affected people and their contribution will be
treated as CSR activities. CSR disclosure isn’t mandatory in our country but it’s the part of
financial statement that is shown in annual report. During the study period it was very difficult to
collect each and every types of information of CSR from annual report. The main limitation was
no specific information about CSR, where there is information but no strict information like
amount, areas etc. A few banks mentioned amount in different areas. The majority of banks
engaged in other businesses, however it is unclear which areas and how much money were
utilized in these instances. It's interesting to note that some banks claim that events like milad,
yearly picnics, concerts, branch openings, and anniversary celebrations are examples of their
CSR initiatives. According to the study, it is safe to assume that our private CBs have a high
level of awareness regarding CSR performance and that their annual contributions are rising.
Banks ought to disclose the portion of their profits that they allocate to corporate social
responsibility. A sizable amount of bank profits ought to go toward CSR initiatives. Given that
45% of the areas have no participation at all, they ought to expand their contribution areas.
 38

Through they are contributed highest amount in education and health but this is not enough.
Every bank should make a good attention to the technical education as well as English learning
programs. In the study a common picture is shown that is contribution of DBBL. Its contribution
is about half (47%) of total contribution. So every bank should follow the practices of DBBL.
Finally we like to say our private CB’s CSR practices aren’t good enough but it is increasing that
will be enlighten our society as well as banks growth.
 39

7. References
1. Business Ethics, Dr A R Khan, Brothers’ Publication
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Multi National Corporations in Bangladesh: A Case study on Grameenphone”, Journal of

Patuakhali Science and Technology University, Vol. 02, no. 01, June, Pp. 51-61
3. Azim, MI, Ahmed S & Islam, MS (2009), “Corporate social reporting practice: evidence

from listed companies in Bangladesh”, Journal of Asia-Pacific Business, vol. 10, no. 2,
pp. 130-145
4. Almona C. P. (2005), “A Review of the business case for Corporate Social Responsibility

in the UK financial service sector”, unpublished dissertation, Pp.1-94

5. Azim M, Ahmed Ezaz and D’Netto Brian (2013), “Corporate Social Disclosure in

Bangladesh: A Study of the Financial Sector” International Review of Business Research

Papers, Vol. 7. No.2. March, Pp.37-55

6. Bala S.K and Bhowmik R.K (2015), Statutory Amendments to the Income Tax Laws to

effect the fiscal changes proposed through the national budget 2010-2011: A review, The

Cost & Management, Vol. xxxviii, no. 4, July-August, Pp. 5-14

7. Bowen, H.R. (1953) Social Responsibilities of the Businessman. Harper & Row, New
York.
8. Zu, L. (2009) The Effects of Managerial Values on Socially Responsible Restructuring.
In: Corporate Social Responsibility, Corporate Restructuring and Firm’s Performance:
Empirical Evidence from Chinese Enterprises, Springer-Verlag, Berlin, Heidelberg.
9. Friedman, M. (1970) The Social Responsibility of Business Is to Increase Its Profits. The
New York Times Magazine, September 13, 1970. The New York Times Company.
10. Carroll, A.B. (1979) A Three-Dimensional Conceptual Model of Corporate Performance.
Academy of Management Review, 4, 497-505.
https://doi.org/10.5465/amr.1979.4498296
11. https://www.islamibankbd.com/abtIBBL/abtIBBLAtaGlance.php
 40

12. Ahmed, M.K., Jobair, M. and Azad, M.M.H. (2013) Corporate Social Responsibility
Practices of Commercial Banks in Bangladesh: A Case Study on Southeast Bank Ltd.
IOSR Journal of Business and Management, 12, 13-18.
https://doi.org/10.9790/487X-1211318