A Repeort on Corporate Social Responsibility of Pharmaceutical comapnies in Bangladesh

TABLE OF CONTENTS:

Part one: Introduction

A Brief Description of CSR 9

A Brief Description of CSR Practices by Bangladeshi Companies 10

A Description of Reporting Practices Including Reporting of CSR Activities 12

Part Two: Statement of the Problem

Emphasis on Business Involvement in CSR Activities 15

Theoretical Discussion on CSR Practices 19

Why The Reporting Necessary in relation to CSR Practices 22

Standard of Listed companies in Bangladesh with Regard to Social Audit 23

Part Three: Objectives, Scope & Methodology of the Study

Objectives 26

Scope 27

Methodology 28

Part Four: Findings of the Study

Sample Enterprises 30

Areas of Social Responsibilities Discharged 33

Reporting Practices 36

Evaluation 37

Part Five: Conclusion

Summary of the Findings 39

Future Directions 40

References 42

Part one:

Introduction

A Brief Description of CSR i

Corporate social responsibility (CSR), also known as corporate responsibility,

corporate citizenship, responsible business, sustainable responsible business (SRB),

or corporate social performance, is a form of corporate self-regulation integrated into a

business model. Ideally, CSR policy would function as a built-in, self-regulating

mechanism whereby business would monitor and ensure its support to law, ethical

standards, and international norms. Consequently, business would embrace responsibility

for the impact of its activities on the environment, consumers, employees, communities,

stakeholders and all other members of the public sphere. Furthermore, CSR-focused

businesses would proactively promote the public interest by encouraging community

growth and development, and voluntarily eliminating practices that harm the public

sphere, regardless of legality. Essentially, CSR is the deliberate inclusion of public

interest into corporate decision-making, and the honoring of a triple bottom line: people,

planet, profit.

The term "CSR" came in to common use in the early 1970s, after many multinational

corporations formed, although it was seldom abbreviated. The term stakeholder, meaning

those on whom an organization's activities have an impact, was used to describe

corporate owners beyond shareholders as a result of an influential book by R Freeman in

1984.

A Brief Description of CSR Practices by Bangladeshi Companies ii

In Bangladesh many organization has started CSR practices. Given the broad definition

of CSR there are many areas of business operations that are affected by it. The most often

mentioned elements of CSR are:

Governance: Sound governance, ethical conduct of staff, transparency of

operations, no conflicts of interest, compliance with listing rules, compliance with

corporate law.

Risk Management: Organizational health & safety, product safety, regulatory

compliance, reputation management, responsible business practices, stakeholder

engagement.

Value Chain: Responsible procurement, supplier management, externalization of

costs, supplier screening, supplier feedback, fair trade.

Social: Human rights, community engagement, philanthropic activities, charitable

donations, staff volunteering, social benefits, local capacity building, social

investment.

Employees: Turnover, morale, satisfaction, work-life balance, internal culture

(transparency), labor practices, job security, remuneration, diversity, equal

opportunity, training.

Environment: Environmental footprints, waste & pollution avoidance, eco-

efficiency, product recycling, sustainability, greenhouse gas emissions, resource

reduction, Precautionary principle.

Measurement: GRI (Global Reporting Initiative) reporting, internal & external

audits, Verification statements, management targets.

The sheer size of this simple list goes a long way towards explaining the dilemma that

companies are faced with. Doing ‘all of CSR’ might cost up to 2% of total revenue, but at

the same time most companies already cover many of these areas under different

headings, especially in the areas of risk management and employees. It is neither feasible

nor desirable for a company to do it ‘all at once’, so picking a suitable approach to

implementing CSR whilst keeping the big picture in mind is the way to go.

A Brief Description of Reporting Practices Including Reporting of CSR Activities

Corporate social responsibility (CSR) reporting is an embracing issue today that

becomes the social perspective of accounting and reporting. Still, the international

standard setters are lagging behind to bring this issue within the legal framework of

accounting and reporting. As there is a huge demand from the stakeholders for such

information, it becomes a common area of voluntary disclosure at the time of reportingiii.

In the banking sector, 3 SCBs (75%), one DFI (20%) and 29 PCBs (97%) have reported

their CSR initiatives as supplements to usual annual financial reports in accordance to the

directive of Bangladesh Bank. In case of FCBs, only audited financial statements are

prepared for the host country, and their annual reports are published from their parent

country. As a result, disseminating their CSR activities as supplements to usual annual

financial report do not apply. It was also observed that:

1 SCB, 1 DFI and 13 PCBs have reported the CSR activities separately as a

chapter in the annual report to make it available in the public domain for

perusal by stakeholders.

1 SCB and 11 PCBs have provided details in those supplements. They have

reported the action programs along with amount of investment made in

each program.

2 SCBs, one DFI and 4 PCBs have included a future plan in the annual

financial reports.

None of the banks have issued separate reports of their CSR programs and activities in

comprehensive standard formats such as the GRI. Additional information had to be asked

for in compiling this review, over and above the information provided in annual reports

of banks. For convenience of all involved, banks and financial institutions will be well

advised to take steps for more elaborate reporting in comprehensive standard formatsiv.

In the Pharmaceutical sector, out of the 26 companies only a few have reported their

social responsibility activities in public. There is no standard set for reporting social

responsibility activities in annual report of Pharmaceutical companies.

It concludes that the pattern of such reporting is far away from expectation; still, there is

a positive indication that the volume and quality of reporting is increasing.

Part Two:

Statement of the

Problem

Emphasis on Business involvement in CSR Activities v

Despite the gap that exists between the voluntary participation in CSR activities and the

weakness in enforcement of legal requirements, it has been observed in the FGDs that

many Bangladeshi enterprises are involved in CSR activities. Some of them are forced

into it due to consumer pressure (from foreign countries) but a large majority of them

have adopted CSR as an integral part of their social entity either to promote their name in

the domestic market or as a pure philanthropic gesture.

Some have argued that given the weakness in our enforcement ability, payment of taxes,

repayment of loans, payment of public utility bills, etc., can be considered an integral part

of CSR activities because they are voluntary in nature. Companies could have avoided

paying them because of either the weak enforcement characteristics or the existence of

high level of corruption in the society.

In addition, CSR activities include voluntary donations at the community levels during

floods, draughts, cyclones, etc., or helping weaker section of the society by patronizing

social activities or institutions. Activities like supporting cholera research centre,

hospitals, schools, etc. falls in the category of social responsibilities of the companies.

In terms of CSR activities related to human rights and labor rights, FGDs noted that

companies are engaged in activities like providing education for the children of their

workers, scholarships, medical facilities, and other workers’ welfare scheme are primarily

voluntary in nature in Bangladesh. Similarly, healthy environment within the factory

premises is also part of CSR in Bangladesh. These are legally required but are never

enforced in Bangladesh. Precautionary activities to safeguard health of the workers and

also customers are sometimes CSR activities in Bangladesh.

In the environmental front, companies following the 3Rs (reduce, recycle and reuse)

during waste disposals are engaged in CSR activities and it is still voluntary for a

majority of companies in Bangladesh. Similarly, companies who have established

treatment plants within their premises are doing so voluntarily and hence could be

considered as a CSR activity.

Examples of CSR activities in Bangladesh

During the FGDs the following examples of CSR activities were cited by different

participants.

1. Financial Institution

• Interest free loans for students, women, communities, etc.

• Donation for the cause of humanity and society.

• Participation in environment friendly activities.

• Establishment of community organization/institutions.

• Help for the Senior citizens.

• Savings instruments for the low income groups.

2. Pharmaceuticals

Social Responsibilities

• Production of innovative new medicines.

• Publication of health care journals to update the professional knowledge of the doctors.

• Supporting medical research centers.• Awareness campaign on health and health care.• Supporting hospitals.• Helping the families of the workers in education and health care.

Environmental responsibilities

• Regular maintenance of machines by the qualified personnel.

• Strict consideration for health and hygiene factors.

• Precautionary arrangements for the factory premises.

• ISO certification.

• Product standards.

Economic responsibilities

• Paying taxes regularly.

• Repaying loans.

• Regularity in payment of dividends.

• Ensuring affordable prices for essential drugs.

• Attractive compensation package for workers (beyond minimum wage

requirements).

• Investing in improving the quality of workers.

• Transport facilities for workers especially for women.

3 Light Engineering (Lead acid batteries):

Social responsibilities

• Ensuring educational facilities for the workers.

• Enhancing the quality of the life of the people by helping families in need.

• Helping the children of the workers:

• Establishing educational and training institutes.

Environmental responsibilities

• Establishing effluent treatment plants.

• ISO certificates.

• Product quality or standards.

Economic responsibilities

• Paying taxes, repaying loans, paying dividends, etc, regularly.

• Helping workers by providing attractive compensation packages.

4. Home Accessories

Social responsibilities

• Responsibility towards the workers.

• Ensuring educational facilities for the workers.

• Ensuring accesses by all employees to the medical facilities.

• Providing educational, healthcare, and other facilities for the children of the

workers.

• Scholarship programs.

• Compliance to Factories Act, Labor Law, etc.

Environmental responsibility:

• Proactive measures for maintaining pollution free environment.

• Introduction of the paper bags to replace polythene bags.

• Encouragement in the use of natural dyes.

• Campaigns for use of chemical free fertilizers.

• Avoidance of the use the harmful artificial color.

• Establishment of effluent treatment plants.

Economic responsibility:

• Paying taxes, repaying loans, paying dividends, etc, regularly.

• Providing interest free loans to workers.

Theoretical Discussion on CSR Practices vi

CSR concepts and practices in Bangladesh have a long history of philanthropic activities

from the time immemorial. These philanthropic activities included donations to different

charitable organizations, poor people and religious institutions. Till now, most of the

businesses in Bangladesh are family owned and first generation businesses. They are

involved in the community development work in the form of charity without having any

definite policy regarding the expenses or any concrete motive regarding financial gains in

many instances. Moreover, most of the SMEs fall under the informal sector having low

management structure and resources to address the 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. In general, it is true that in Bangladesh, the status of

labor rights practices, environmental management and transparency in corporate

governance are not satisfactory, largely due to poor enforcement of existing laws and

inadequate pressure from civil society and interest groups like Consumer Forums.

Globally, as CSR practices are gradually being integrated into international business

practices and hence is becoming one of the determining factors for market accesses, it is

becoming equally instrumental for local acceptability. 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 RMG industry to ensure the standards. Some of

the exporters found difficulty in convincing the US/EU buyers to have positive attitude

towards Bangladesh due to inadequate CSR practices,

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

are 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 wild shock any conscientious

individual to the core. Recently, the RMG sector employees have embarked on an

industry wide movement to establish their rights.

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.

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.

Why is Reporting Necessary in Relation to CSR Practices

Corporate social reporting is the process of communicating the social and

environmental effects of organizations' economic actions to particular interest groups

within society and to society at largevii. It is also known as corporate social

responsibility Reporting or non-financial reporting.

It may also be defined as “an approach to reporting a firm’s activities which stresses the

need for the identification of socially relevant behavior, the determination of those to

whom the company is accountable for its social performance and the development of

appropriate measures and reporting techniquesviii.

The importance of corporate social responsibility reporting are given below:

Honoring stakeholders' rights of information;

Balancing corporate power with corporate responsibility;

Increasing transparency of corporate activity;

Identifying social and environmental costs of economic success;

Increased information for decision-making;

More accurate product or service costing;

Enhanced image management and Public Relations;

Identification of social responsibilities;

Identification of market development opportunities;

Maintaining legitimacy.

Standard of Listed Companies in Bangladesh with Regard to Social Audit

The standards which are guidelines for the listed companies in Bangladesh with regard to

social audit are given below:

International HACCP Alliance ix : The International HACCP Alliance was

developed on March 25, 1994, to provide a uniform program to assure safer meat

and poultry products. It is housed within the Department of Animal Science at

Texas A&M University.

ISO 14001 Environmental Management x : ISO 14001 was first published in

1996 and specifies the actual requirements for an environmental management

system. It applies to those environmental aspects which the organization has

control and over which it can be expected to have an influence.

ISO 14004 General Guidelines on Principles, Systems and Supporting

Techniques xi : ISO 14004 provides guidance on the development and

implementation of environmental management systems and principles... and their

co-ordination with other management systems.

ISO 14010 Guidelines for Environmental Auditing: General Principles xii : ISO

14010 provides general principles of environmental auditing that are applicable to

all types of environmental audit reviews.

ISO 14011 Audit Procedures and Auditing of Environmental Management

Systems xiii : ISO 14011 establishes audit procedures that provide for the planning

and conduct of an audit of an environmental management system.

ISO 14012 Qualification Criteria for Environmental Auditors xiv : ISO 14012

provides guidance on qualification criteria for environmental auditors and lead

auditors.

ISO 19011 Guidelines for Quality and Environmental Management Systems

Auditing xv : The cost of failing an environmental/quality management systems

audit can take a number of forms: companies can lose valuable contracts or prized

certifications; they may have to pay for an expensive range of improvements

demanded by a client; they may experience and erosion of efficiency; etc. BS EN

ISO 19011: 2002 therefore offers guidelines for quality and/or environmental

management systems auditing.

OHSAS 18001 Occupational Health and Safety Zone xvi : OHSAS 18001 is an

international occupational health and safety management system specification. It

comprises two parts 18001 and 18002 and embraces BS8800 and a number of

other publications.

SA 8000 xvii : Social Accountability International (SAI)’s mission is to promote

human rights for workers around the world. SA8000 – our comprehensive and

flexible system for managing ethical workplace conditions throughout global

supply chains.

ISO 26000 – Social Responsibility xviii : The International Standard ISO 26000,

Guidance on social responsibility, provides harmonized, globally relevant

guidance for private and public sector organizations of all types based on

international consensus among expert representatives of the main stakeholder

groups and so encourage the implementation of best practice in social

responsibility worldwide.

Part Three:

Objectives, Scope

& Methodology of

the Study

Objectives

Corporate social responsibility enables an organization to operate efficiently. The

objective of the study is:

To make comparative study on selected listed pharmaceutical companies with

regard to involvement CSR activities;

To make a comparative study on reporting practices of selected listed

pharmaceutical companies in respect of corporate social audit.

Scope

The study attempted to capture the current status of the corporate responsibility practices

in Bangladesh. The exercise of quantification of corporate responsibility status is first of

its kind in Bangladesh which provides the study the status of a benchmark study. We

have only studied the current status of Pharmaceutical industry of Bangladesh and for

that we have selected five Pharmaceutical companies operating in Bangladesh.

Methodology

To prepare this paper, main emphasize has been given on the secondary data. As there

was no primary data available for the study, so we have to rely on the secondary data

available for the study. The following are the sources of data collection:

Secondary data:

Articles available on the internet;

Text books;

Annual report published by the Pharmaceutical companies on the internet;

Newspapers features;

Center for Policy Dialogue’s report about corporate social responsibility in

Bangladesh;

Bangladesh Bank’s repot about corporate social responsibility of banks etc.

Part Four :

Findings of the

Study

Sample Enterprises

A sample was collected to help evaluate Pharmaceutical company’s policies and

procedures regarding CSR activities. The company information was often not easily

accessible causing time constraints that kept the sample size small to 5 companies. We

relied on information publicly available through the companies’ websites, reports, and

business databases. The list of the sample enterprises are given below:

Beximco Pharmaceuticals Ltd xix :

The company was incorporated in 1976 and commenced operations in 1980 with the

manufacturing and marketing of products of Bayer AG, Germany and Upjohn Inc.,

USA under licensing arrangements. In 1983, the company started manufacturing its own

formulations and it launched export operation in 1992. In 2005 Beximco Infusions Ltd,

the company that produces intravenous fluids was amalgamated with the parent company.

Today Beximco Pharma is the largest exporter of pharmaceuticals in the country and the

only company to win National Export Trophy (Gold), for record three times. The

company is the largest producer of Metered Dose Inhalers (MDIs) in the country, and the

first to produce CFC free inhalers. BPL is also the first company to produce anti-

retroviral drugs (ARVs) locally. As a public limited company, its shares are actively

traded in Dhaka Stock Exchange and Chittagong Stock Exchange, and Beximco Pharma

has the unique distinction of being the only company in the country listed on AIM of

London Stock Exchange. It supplies more than 10% of country's total medicinal needs.

Eskayef Bangladesh Ltd xx :

Eskayef Bangladesh Limited, the world-class healthcare solution provider, is one of the

leading and fastest growing pharmaceutical company of Bangladesh, which is engaged in

the manufacture and marketing of a wide range of therapeutic drugs, bulk pellets and

animal health and nutrition products with annual sales surpassing 60 million US dollars.

Eskayef is growing more global since 2005 and exporting bulk pellets and finished

products in Asia, Africa, and Central America and also in the process of exporting in the

European countries. The company is also tied up with the world leader in eye care

solution Allergan Inc. Ireland.

GlaxoSmithKline Bangladesh Ltd xxi :

One of the world's leading research-based pharmaceutical and healthcare companies - is

committed to improving the quality of human life by enabling people to do more, feel

better and live longer.

We are one of the few pharmaceutical companies researching both medicines and

vaccines for the World Health Organization’s three priority diseases – HIV/AIDS,

tuberculosis and malaria, and are very proud to have developed some of the leading

global medicines in these fields.

Popular Pharmaceutical Ltd xxii :

Popular Pharmaceuticals Ltd. (PPL), the pioneer manufacturer of Human Insulin in

Bangladesh, is a company of Popular Group, the leading corporate house in the private

sector Health Care Management of the country. PPL is manufacturing and marketing its

high quality and wide variety of product range both in home and abroad.

PPL has an aim to lead the market of Branded Generics in Bangladesh with a portfolio of

vital molecules while at the same time, progressing for the next wave of novel products.

Square Pharmaceutical Ltd Bangladesh xxiii :

From the inception in 1958, it has today burgeoned into one of the top line conglomerates

in Bangladesh. Square Pharmaceuticals Ltd is holding the strong leadership position in

the pharmaceutical industry of Bangladesh since 1985 and is now on its way to becoming

a high performance global player.

Square Pharmaceuticals Limited is the largest pharmaceutical company in Bangladesh

and it has been continuously in the 1st position among all national and multinational

companies since 1985. It was established in 1958 and converted into a public limited

company in 1991.

Areas of Social Responsibility Disclosed

The areas of social responsibility disclosed are given below:

Beximco Pharmaceuticals Ltd xxiv :

Donation of medicines: We donate and make available a large quantity of

medicines to the victims of natural disasters, both national and international.

Providing Treatment for AIDS patients in Bangladesh: Responding to the

needs of thousands of AIDS patients in the country, we are proud to be associated

with the initiatives to provide treatment for these patients. Since 2005, Beximco

Pharma has been supplying ARV drugs through Dutch Bangla Bank, a leading

local bank, for treating the AIDS patients in Bangladesh.

Oseflu® to fight against Avian and Swine Flu: Since its launch in March 2006,

Oseflu, BPL’s brand of oseltamivir capsule, has been donated to the govt. of Bangladesh

as well as different reputed organizations.

Eskayef Bangladesh Ltd xxv :

Donation of SK-flu to GOB: • Eskayef Bangladesh Limited donated 3000

capsules of Bird Flu drug (SK-flu®) to the Govt. of Bangladesh on 24th April 2007

and also has come to an agreement with HSBC for supply of Bird Flu drug SK-

flu® (oseltamivir).

Road shows:

o Neosaline Banner on-World Breast Feeding Day.

o Neosaline Train Rally on- International Blood Donor Day.

o International vaccination day.

o World Environmental Day.

Eskayef employees donated their one day salary for the victims every times like:

o Flood victims.

o SIDR victims.

GlaxoSmithKline Bangladesh Ltd xxvi :

Club Excel: Club Excel provides information services for patients to learn about

asthma and increase disease awareness and exchange information on healthcare

rights to improve advocacy agenda's by raising the experience and voice of

patients to support more effective asthma management and dialogue in policy

forums and physicians' chambers. They support better asthma management

through advocacy, meetings, patient counselling and newsletter services.

During 2009: We gave BDT 184,500 through an unrestricted grant to support

disease awareness and advocacy support for patients living with asthma.

During 2008: We provided 300000 BDT to support patient advocacy activities, a

news letter, regular patient meetings and patient counseling services. An additional

200000 BDT was given to strengthen patient advocacy and patient summit activities.

During 2007: We provided a project grant of US$ 14,000 to support disease

awareness of asthma.

Popular Pharmaceutical Ltd xxvii :

International Centre for Diarrheal Disease Research, Bangladesh will conduct a

research, entitled “Antenatal vitamin D supplementation to improve neonatal

health outcomes in Dhaka, Bangladesh: Preliminary efficacy and safety trial

(AViDD-1)” and will be using Vitamin D Solution supplied by Popular

Pharmaceuticals Ltd.

Popular Pharmaceuticals Ltd provided necessary support and required services to

PROJAHNMO to ensure the quality of their 4% Chlorhexidine solution.

Popular Pharmaceuticals Ltd. is providing necessary support and required services

to Department of Gastroenterology, Dhaka Medical College & Hospital to conduct

their research properly.

Diabetic Association of Bangladesh (DAB) is conducting “Diabetes Prevention

Trial” at BIRDEM. Popular Pharmaceuticals Ltd. is the scientific partner of this

clinical trial.

Square Pharmaceutical Ltd Bangladesh xxviii :

Education:

o Reconstruction of Annada Gobinda public library 1 & 2.

o Establishment of Square kindergarten.

Sports:

o Helping to raise fund for BCCB (Football).

o Organizing Meril Int’l Cup Cricket.

Social Events:

o Housing and transportation facilities for women worker of Square.

o Road safety campaign.

o Senora acid-burn welfare fund.

Medical Community:

o Donation to the government on the occasion of bird flu.

o Aid to Islamic Republic of Iran.

o Donation to Pabana Mental Hospital.

o Ambulance to Pabna Purashabha.

o Support to ICDDRB for research on childhood diarrhea.

Reporting Practices

All the Pharmaceutical companies in Bangladesh publish an annual report of their

activities for their share holders. But only few of them publish their annual report on their

website. The report they publish yearly focuses on their yearly financial activities. When

it comes to disclosing corporate social responsibility activities, they do not disclose detail

corporate social responsibility activities taken by them rather than they discloses a small

clause naming Corporate Social Responsibility in their annual report. So it can be said

the report they publish is a financial report and they had not yet accounted social

responsibility properly in their annual report.

Evaluation

By evaluation of the study, It can be said that:

The Pharmaceutical companies have started practicing corporate social

responsibility.

Though they are practicing corporate social responsibility but they are not

disclosing it properly to the public.

Out of the 26 Pharmaceutical companies operating in Bangladesh less than 10

companies have disclosed their corporate social responsibility activities on their

web site. As our study was completely on secondary source so we can’t say that

whether those companies who haven’t disclosed their corporate social

responsibility activities on the internet are practicing it or not.

In Bangladesh there is no policy of government about corporate social

responsibility. There is also lack of good governance, absence of strong labor

unions or consumer rights groups and inability of the business community to

perceive CSR as a survival pre-condition. All of these needs to be improved.

Part Five :

Conclusion

Summary of the Findings

The concept of Corporate Social Responsibility has been passing through a transitional

phase. While in the past it was basically thought to be corporate philanthropy, now, as the

economies of the world are becoming integrated, the business case of corporate practice

is gaining momentum. Corporate responsibility status has been becoming the prerequisite

for sourcing goods and services from the developing and the least developed countries.

The policy makers and businessmen of the least developed countries such as Bangladesh

have been put into a very disadvantageous position since they are never in a condition to

ensure a corporate standard set by the global business leaders on the basis of their

business status and objectives.

The interventions expected from the Government may be making, monitoring and

enforcing of laws related to major corporate responsibility issues such as environment

protection, health and safety, labour rights while majority of such issues, could be solved

at company level.

Some organizations in Bangladesh have started practicing corporate social responsibility

and some have not. The banks in Bangladesh are ahead in this regard. Other industry

such as Pharmaceutical Company needs to follow the benchmark created by the banks of

Bangladesh and the government of Bangladesh needs to make standard regarding

corporate social responsibility.

Future Directions

Based on the study, the following policy options can be adopted:

For the Companies:

As both the civil society group and workers hold negative opinions about the

corporate responsibility, companies have to seriously consider how to restore their

image.

The variability of perceptions indicates specific areas where to intervene and set

priorities. All the controversial issues including the overtime issue should be taken

note of and settled through a multi-stakeholder initiative.

Environmental concerns should receive greater attention by the companies.

Gender aspects should be more carefully addressed and monitored for their

implementation.

Corporate-community relations are found to be strained. The corporate owners and

executives should consult and communicate with the local communities on a

regular basis.

Health and safety issues deserve greater attention given that failure in these areas

impact negatively on the productivity and endanger human life.

More consultation should take place between the employers and the employees so

that a team spirit is restored in the corporates.

For the Civil Society:

Should enhance their participation as a stakeholder in the corporate affairs for

holding the corporate entities accountable to the greater segment of the populace.

Should contribute to the process of awareness building of all the stakeholders so

that the corporates do not function in an exploitative condition.

Should contribute to the process of multi-stakeholder exchange of views and ideas

in terms of both initiating and organising multi-stakeholder forums.

Policy advocacy.

For the Government:

Provide policy guidelines for smooth functioning of the corporate entities.

Monitor and enforce laws related to labour issues, environment protection, health

and safety issues.

Provide the logistic support for enhancing the overall corporate standard and stay

and carefully monitor the initiatives of the global trade partners and regimes so as

to ensure that the corporate responsibility issue is not used as a pretext for market

access barrier.

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xvi. http://www.ohsas-18001-occupational-health-and-safety.com/

xvii. http://csrbangladesh.org/SA%208000.php

xviii. http://www.iso.org/iso/iso_catalogue/management_standards/social_responsibility.htm

xix. http://www.beximco-pharma.com/about-us.html

xx. http://www.skfbd.com/

xxi. http://www.gsk.com/worldwide/bd.htm

xxii. http://www.popular-pharma.com/

xxiii. http://www.squarepharma.com.bd/AboutUs.html

xxiv. http://www.beximco-pharma.com/about-us/corporate-social-responsibility.html

xxv. http://www.skfbd.com/index.php?page=46&pid=21

xxvi.http://www.gsk.com/responsibility/patient-groups/international-bangladesh.htm

xxvii. http://www.popular-pharma.com/ar_support.htm

xxviii. http://www.squarepharma.com.bd/SocialContribution.html