6 | P a g e 1. Introduction
CorporateSocialResponsibilityalsocalledcorporateconscience,citizenship,social
performance, or sustainable responsible business, is a form of
corporate self regulation integrated into a business model.
Corporate social responsibility (hereafter CSR) has become an
important center ofconcentration amongcompanies. A recent global
survey shows that 76%of managers believe that corporate social
responsibility contributes positively to long-term shareholder
value, and 55% of them agree that sustainability helps their
companies build a strong reputation. By the time being the
definitions and explanations of CSR have become more positive, with
increasing
understandingofthebenefitsthatcanbeobtainedthroughsuccessfulimplementationby
organizations.Nowadays,mostofthemultinationalcompaniesalsohaveaseniormanager
explicitly charged with developing and coordinating the CSR
functions.
AsuccessfulCSRprogramcannotbeachievedindividually.CSRincludestheparticipationof
the society, nature andethics in making strategythat can improve
the competitive position of a
company.CSRtakescareoftheinterestofallstakeholdersratherthanthatofthestockholders
only.By incurring CSR expenditure, a firm can strengthen its
competitiveness, counter therisk
oflosingtheexistingmarketsharesandestablishitspresenceinemergingones.Insteadof
thinkingCSRasaregulatoryordiscretionarycost,businessexecutivesacrosstheglobeare
starting to see it as an investment that brings long-term benefits
for the company. The impacts of
CSRarepervasive.CSRsignificantlyimprovesbusinesshousereputationandconfidenceof
customers and business partners, and motivates the employees to
work for a company they could feel proud of.
Indevelopedcountriesithasbeenobservedthatthefinancialinstitutionsandotherbusiness
sectorsareencouragedtocontributeinvariousformsofCSRactivities.Therearealsolotsof
legalbindingswhichindirectlyforcesthecompanytocontributetoCSRactivities.The
governmentalsooffersmanytypesofincentivestothosewhotakepartinCSRactivities.
However,itisregretfulthatthoughinternationallyitisbeingpracticedwidely,Bangladeshis
stilllaggingbehindinCSRactivities.Infact,CSRisamatterofselfinterestforthecorporate
sector in Bangladesh. Still, among the corporate houses banks have
shown comparatively better tendencies to accomplish CSR activities.
Bangladesh Bank as the central bank in Bangladesh has taken
initiatives to motivate the banking companies to play role toward
the welfare of the society by ensuring CSR. Keeping this fact in
mind, this study is an attempt to explore to what extent a bank in
Bangladesh is engaged in CSR activities. The study is conducted
with the objectives of exploring the types of CSR activities
carried out by
differentorganizationsinBangladesh.ConcentrationofthisstudyhasbeengiventotheCSR
activities done by the financial organizations especially by the
Dutch Bangla Bank Limited. 7 | P a g e 2. Objectives
The main objective of this paper is to explore the corporate
social responsibilities in Bangladesh
andtoevaluatethepracticeofCSRinbankingsectorsofBangladeshwithspecialfocuson
Dutch Bangla Bank Limited. Other secondary objectives are mentioned
as under:
i.ToacquiresubjectiveperceptionsaboutvariousCSRtasksoffinancialsectorin
Bangladesh.
ii.TofindoutthemajorareaswhereCSRactivitiesareperformedbythebanksin
Bangladesh.
iii.TocompareandanalyzethecontributionofDutchBanglaBankLimitedinCSR
activities in different areas with other banks. 3. Methodology of
the Study
The study is based on secondary data which arecollected
fromannual reports of the concerned
bankandCSRrelatedpublications,researchpapers,andstudyonCSR,websitesofbanksand
otherfinancialinstitutionsaswellasfromthewebsitesofregulatorybodies.Thisreportis
focused on CSR activities carried out by the Dutch Bangla Bank
Limited in Bangladesh. 4. Literature Review
CorporateSocialResponsibilityisaconceptwherebycompaniesintegratesocialand
environmentalconcernsintheirbusinessoperationsandintheirinteractionwiththeir
stakeholdersonavoluntarybasis(Grayet.al.1987).Accordingto(Ranaet.al.2012),social
responsibility is a concept well known in the corporate world and
beyond that. Business all over
theworldhavepracticedonlyprofitmakingactionsatpastbutnotforlongastheenterprise
started to develop complexities and wideness in size and actions so
was their reach getting bigger and bigger. A companys sense of
responsibilitytowards the community and environment (both
ecologicalandsocial)inwhichitoperatescalledcorporatesocialresponsibility.Companies
expressthiscitizenship(1)throughtheirwasteandpollutionreductionprocesses,(2)by
contributingeducationalandsocialprogramsand(3)byearningadequatereturnsonthe
employed resources (Yunus, Kabir & Rahman). In contrast to
this, Christian Aid (2004) defines
CSRasanentirelyvoluntary,corporatedriveninitiativetopromoteseasasubstitutefor
regulation at either a national or international level. Dusuki
& Dar (2005) argued that Corporate Social Responsibilities
outline the standard of behavior to which a firm must subscribe to
impact
societyinapositiveandaproductivemanneratthesametimeasabidingbyvalueswhich
exclude profit seeking at any cost. Helg (2007) noted that CSR has
the potential to make positive contributions to the development of
society and businesses. Drucker (1954) has found a close link
between firm's profitability and its social responsible activities.
He stated that It is not enough to do well; it must also do good.
But in order to do good a business must first do well. Drucker's
view incorporated the views of Friedman and Freeman. 8 | P a g e
Inrecenttimes,CorporateSocialResponsibilityhasbecomeanever-increasingandinteresting
field of study by researchers and practitioners. However, a
complete definition of CSR is, indeed, elusive and opinions vary.
Oketch (2005) defined CSR as a function that transcends but
includes
makingprofits,creatingjobsandproducinggoodsandservices.Someresearchersarguethatit
hascometomeanthepositiveactionsthatacompanytakestodischargeitsresponsibilitiesto
external stakeholders; while other definitions include financial
performance as an aspect of CSR.
Inlinewiththis,awiderangeofbehaviorsarecategorizedunderCSRincludingcause-related
marketing,sponsoringcharitableevents,offeringemployeevolunteerismprograms,making
charitabledonations,utilizingenvironmentalinitiativesanddemonstratingacommitmentto
healthandsafetyissues(Maignan&Ralston,2002).Carroll(1979)designedafour-part
conceptualization of CSR that included economic, legal, ethical and
philanthropic elements.
Carrollmodelentailsthatallbusinessresponsibilitiesrelyupontheeconomicresponsibility,
whichincludesmaximizingprofitabilityandmaintainingastrongcompetitiveposition.Legal
responsibilitiesstatefirm'scompliancewithlawsandregulationswhiledoingbusiness.Ethical
responsibilitiesreplicatesocietalstandards,expectationsandnormsthathavenotbeen
specificallylegislated.Finally,philanthropicresponsibilitiescompriseactionsthatarein
responsetosociety'sexpectationthatbusinessesbegoodcorporatecitizens.Theseare
distinguishedfromethicalresponsibilitiesinthattheyareofacharitablenatureandassuch,a
company is not considered unethical if it does not provide them
(Carroll 1991).
AverypopulardefinitionofCSRbyLordHolmeandRichardWattsintheWorldBusiness
CouncilforSustainableDevelopmentspublicationMakingGoodBusinessSensethe
continuing commitment by business to behave ethically and
contribute to economic development
whileimprovingthequalityoflifeoftheworkforceandtheirfamiliesaswellasthelocal
community and society at large (www.wikipedia.com).
Tilltoday,mostofthebusinessesinBangladesharefamilyownedandfirstgeneration
businesses.Businessesareinvolvedincommunitydevelopmentworkintheformofcharity
withouthavinganydefinitepolicyabouttheexpensesoranysolidmotiveregardingfinancial
gainsinmanyinstances.(Mondol,2007).ItisevidentthattheimportanceofCSRinthefirst
world,questionsregardingtheextenttowhichcorporationsoperatingindevelopingcountries
haveCSRobligationsarestilltobeworkedout.(JamaliandMirshak,2007).Therehasbeen
increasingpressureonnationalandmultinationalcorporationsinBangladeshtoconsiderthe
socialimplicationsoftheiractions(Belal,2001).CSRpracticesinBangladesharestillin
infancy.Companiesaregettingawareofitbecausebeingapartofglobalmarket,itisreally
difficulttoignoreCSRstandardparticularlyintheexportsector.Mostofthecompanies
operatinginBangladeshespeciallyfinancialinstitutionsaretryingtoinvolvedirectlyor
indirectly with CSR. In a study Corporate Social Disclosure in
Bangladesh: A Study of the Financial Sector Azim et
al.(2011)arguedthatcorporatesocialresponsibilityisnottheonlyethicaldilemmathat
financialinstitutionsfaceinanatmosphereofcorruptcorporatepractice.Theseinstitutionsare
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 countrys economic development. Increasingly, are under
pressure, often from activist non- 9 | P a g e
governmentalorganizations,totakeonspecificcorporatesocialresponsibilityobligations.But
thefactthatCSRisbeingdemandedandoccasionallyconcededdoesnotensureclarityabout
eitheritsrationaleorthewaysinwhichitshouldbeundertaken(Bhagwati,2010).Obalola
(2008)inhisstudyfoundNigerianInsuranceindustryhasastrongsupportforsocial
responsibilityandthetranslationofthissupportintoactionthroughinvolvementinsome
community based projects. Evidence from the study also suggests
that social responsibility is still
largelyperceivedasaphilanthropicgesture.Visser(2005)arguedthatCSRindeveloping
countriestorepresenttheformalandinformalwaysinwhichbusinessmakesacontributionto
improving the governance, social, ethical, labor and environmental
conditions of the developing countries in which they operate, while
remaining sensitive to prevailing religious, historical and
cultural contexts.
VictoriaandMahboob(2009)exploredthenatureandextentofCSRreportinginthe
conventional banking sector in Bangladesh and to assess the need to
improve CSR by such firms. Wise & Mahboob Ali (2010) further
extends their work by concentrating to the nature and extent of
corporate social responsibility disclosure in the banking sector in
Bangladesh. Thus, this paper attempts to reveal the extent to which
the companies in Bangladesh specially the
bankingcompaniesarepracticingCSRwithamajorfocusonDutchBanglaBankLimited
(DBBL) and disclosing relevant information in their annual
reports.
5. CSR Practice in Bangladesh
InBangladeshbusinessorganizationswhetheritissoleproprietorship,partnership,privateor
public companies, MNCs all had been contributing to the welfare of
society in the form of CSR in informal and small extent till
2008.There are many Bangladeshi and foreign NGOs those have been
working for the welfare of the society as well but their work do
not fall under the definition
ofCSRinstraightway.On1stJune2008BangladeshBank(BB)declaredaguidelineinthe
nameofmainstreamingcorporatesocialresponsibilityinbanksandfinancialinstitutionsin
Bangladesh. Through this circular CSR had been brought under the
regulatory watch for the first
timeinBangladeshinitiallyforthebanksandfinancialinstitutions.Lateron5thJuly2011
National Board of Revenue (NBR) circulated a Statutory Regulatory
Order (SRO) numbered 229 on Corporate Social Responsibility. NBR
has given an opportunity to all the private, public and
MNCstoget10%taxrebateadvantageontotaltaxliabilityofthecompaniesbyspendingin
some specified sectors or purposes defined by it. Both BB and NBR
have not made the spending
inthenameofCSRmandatoryforthecompanies.Ratherregulatorybodiesareproviding
incentive and reward for spending in CSR activities.
Bangladeshhasalonghistoryofphilanthropicactivitieswhichincludeddonationstodifferent
charitableorganizations,poorpeopleandreligiousinstitutions.Manyschools,collegesand
religiousinstitutionswereestablishedwithcharitabledonationsfromwealthyphilanthropists.
ButsustainabilityandCSRpracticeinbusinessorganizationsisanewconceptinBangladesh.
Therearelabor,industrialandenvironmentallawsinthecountryenforceabletobusinessand
industrialsectors.Butpoorenforcementoftheexistinglawsandinadequatepressurefromthe
stakeholdersleadstounsatisfactorystatusoflaborrightspractices,environmentalmanagement
and corporate governance. 10 | P a g e
GloballyCSRandsustainabilityarebecomingintegralpartofbusinesspractices.Health,
environmentandlaborrightsissueshavebecomeimportantconditionsformarketaccessesto
westerncountries.SoBangladesh,likeotherexportingcountries,needstocomplywithcertain
international health, environment and labor standards. Bangladesh
is a major garments exporting country and core buyers are the USA
and EU. Importers have imposed compliance standards for
ReadymadeGarment(RMG)industrytoensureminimumworkingconditionstandard.Under
pressure from the US trade unions, the USA Congress enacted the
Harkins Bill (1992) to force
RMGexportersofBangladeshtocomplywithlaborpracticesincludingprohibitionofchild
labor. Responding to the demand of importers, local producers had
taken many steps to improve
thesituationsincludingrelocationofindustriesoutsideofresidentialareas,speciousfactory
building with safety measures, few benefits for workers and
elimination of child labor. Few years back, a temporary ban was
also imposed on shrimp export to the European Union in the ground
of health and hygienic standards. This also leads to appropriate
remedial action including change in production and processing
system.
Lackofenforcementofindustriallawsandregulations,weakandinefficientlaborunionsand
absence of strong consumer rights groups, civil society and
inactiveness of the regulatory bodies
makeCSRviolationrampantinBangladesh.In2002,CentreforPolicyDialogue(CPD)had
conducted a preliminary survey of the state of Corporate
Responsibility (CR) in Bangladesh. The
surveyinterviewedworkers,companyexecutivesandpublicrepresentativesabouttheir
experiences and perceptions on CR. Some of the findings of the
survey were that the companies appear stronger on policy rather
than on practice. Around 2/3rd of the companies have sustainable
developmentpolicy,whichrequiresattentiononcorporategovernance,humanrights,
international labor standards and AIDS etc.Some of the concluding
remarks of the report were
thatexternalforcesarethemaindriversforCSRinBangladesh,educatingbusinessleadersin
CSRneededassustainableandprofitablebusinessmodelsandthereisscopeforpartnership
between the corporate businesses and civil society (CPD, 2002). 6.
Social Responsibility Regulatory Environment in Bangladesh
AlthoughCSRisacomparativelynewthoughtinBangladeshicorporateculture,consciousness
ofithasquicklyincreased.ThebankingsectorneedstothinkoftheirCSRforthreebasic
reasons.Atfirst,thereisanescalatingdemandfromstakeholderstodoso(Belal2001).The
company that does not expand and promote its CSR strategy to all
stakeholders may have to face increasing threats to its reputation.
Secondly, CSR makes sound business sense which enhances the status
of an organization, and improves stakeholder return (Kabir 2003).
Finally, Bangladesh Bank issued different notifications to the bank
and bound them to follow the guidelines. Due to inspiration and
guidelines from Bangladesh Bank since 2008, many bankshave engaged
inCSRactivities.NewCSRreportingformatalsocontributedtosuddenincreaseinCSR
expenditurebycommercialbanksin2010andthereafter.InBangladesh,bankinginstitutions
play the dominant support and the fundamental role for industrial
and commercial activities.
Atpresent,inadditiontotheCentralBankofBangladeshthereis4stateownedcommercial
banks,13specializedbanks,40domesticprivatebanks,9foreignbanks.Aswiththelineof
11 | P a g e global practice, the CentralBank
ofBangladesh(BangladeshBank) hasbeenassigned with the
responsibilityofplayingacustodianroleofbankingsectorsinBangladesh.BBregulates
bankingcompaniesinaccordancewithBankingCompaniesAct1991,anditsfurther
amendments.Atthesametime,bankingorganizationslistedinthecapitalmarketmusthaveto
follow the rules of SEC for trading in the stock exchanges in
addition to the Banking Companies Act 1991. The Bangladesh
Companies Act 1994 sets the general structure for corporate
financial
reporting.However,noprovisionsregardingCSRexistintheCompaniesAct1994.According
to IASCF (2003), there is no separate Bangladesh Accounting
Standard (BAS) concerning social
andenvironmentalreporting.However,aftertheadoptionofInternationalFinancialReporting
Standards(IFRS)inBangladeshon5July2006,PresentationofFinancialStatements(BAS1)
encouragelistedcompaniestocirculateadditionalstatementsontheirnon-financialactivitiesif
management believes they will facilitate users in making economic
decisions (Azim 2011).
In2011,aseparateSROonCSRwasincorporatedinIncomeTaxOrdinance1984.Wherean
incentive of 10% rebate on expenditure for CSR within the limit of
BDT 8 crore or 20% of total
incomewhicheverislower,wasoffered.AsperthisSROcompaniescanenjoythetaxrebate
facility on the expenditure for the purpose of CSR only if they
spend in 20 defined areas selected by NBR. Private companies,
public companies and MNCs are spending their CSR budget on the
below mentioned areas to get the tax rebate advantage: Donation
through any government bodies to the Cyclone, Earthquake,
Hurricane, Flood etc. affected peopleOld home foundation and
managementWelfare of mentally or physically disable
peopleEducational institution for street / homeless
childrenBuilding houses for people living in
slumsDonationtosocialorganizationsinvolvedinbuildingpublicawarenessaboutwomen-right
and dowry systemDonation to social organizations involved in the
welfare of orphan / homeless childrenDonation to social
organizations involved in research about liberation war, campaign
to uphold the spirit of liberation war and welfare of freedom
fightersImprovingseweragefacilitiesinChittagonghill-track,alluvialland,riverbreakage
areasDonationtoorganizationsengagedinthetreatmentofhare-lipped,cataract,cancer&
leprosyDonation to organizations serving treatment to the Acid
VictimsSpecializedhospitalestablishedforservingthepoorpeoplefreemedicalfacilitiesand
improving the quality e.g. Cancer, Lever, Kidney, Thalasemia, Eye
and CardioDonation to public
universitiesDonationforpromotingtechnicalandvocationaleducationforpoormeritorious
students through any government approved educational
institutionDonation to government or MPO included private
educational institution to establish lab and arrange training for
IT, Computer and English educationDonation to the organizations
engaged in promoting technical and vocational education for
unskilled and semi-skilled workers for manpower export 12 | P a g e
Donationtoorganizationsengagedininfrastructuredevelopmentandtrainingfor
national sports
levelDonationtobuiltorunderconstructednationallevelmuseumsestablishedinthe
memory of the liberation warDonation to any national level
institution set up in memory of Father of the
NationDonationtothenon-profitableorganizationsestablishedfortreatment,increasing
awareness and rehabilitation of HIV, AIDS or intoxication affected
peopleDonationtothenon-profitableprivateorganizationsestablishedforthewelfareof
women and children saved from human trafficking
InBangladesh,CSRisstillvoluntarywiththeexceptionofexpendituresonenergyusage
requiredundertheCompaniesActof1994andtheSecuritiesandExchangeRulesof1987,
whichrequireaseparateexpenditureinnotestothefinancialstatementsrepresentingthetotal
amountspentonenergy.Recently,BBencouragescommercialbankstotakepartinCSR
activitiesenthusiastically,whichmightpavethebankingsectorstobecomemorestructuredon
theideasofCSRissues(BangladeshBank2008).BBalsoadvisedbankingandotherfinancial
institutionstomovetowardsimplementationofCSRprogram(BangladeshBank2009,2010),
establishaseparateCSRdesk(BangladeshBank2010)andpromotinggenderequalityinthe
workplace in order to ensuring basic human rights and socio
economic growth (Bangladesh Bank
2011).AccordingtoBangladeshBank(2010),CSRinitiativesnowstartsinamodestwayas
supplementstousualannualfinancialreports,eventuallyitwillbegrownasacomprehensive
reports format like Global Reporting Initiative (GRI). 7. CSR
Activities of Banking Sectors
7.1 Education
Educationistheprerequisiteforoveralldevelopmentofanycountry.Keepingthisinmind,
every bank performs some CSR activities in education sector and
discloses relevant information
initsannualreport.Suchactivitiesincludescholarshipprogramforbrilliantpoorstudents,
donation to educational institution, operating computer learning
center etc. 7.2 Health
Healthisoneoftheprimeparametertoachievethedevelopmentgoal.Healthneedsare
increasingdaybydayduetorapidgrowthofpopulation.Forthatreasoneverybankperforms
some CSR activities in health sector. There are included free eye
camps, donation for treatment to the individual, donation to
hospital etc.
7.3 Environment
Environmentpollutionhasbecomealargeprobleminourcountry.Forthatreasonfewbanks
have come forward to protect the environment and they have
performed some CSR activities in
theenvironmentsector.SuchactivitiesincludedfinancetoCNGconversionandCNGfilling
station,nottofinanceanytobaccorelatedbusiness,providefinanceforinnovativegreen
products etc. 13 | P a g e
6.4 Culture and Heritage
To uphold our culture and heritage some banks have taken
initiatives and performed a few CSR activities though most of the
banks have not performed at all in this area. Such activities
include
donationtoMuktijuddahJadughar,donationtoculturalinstitution,donationtoEkusheybook
fair etc. 7.5 Social Welfare
As a third world country Bangladesh has a lot of problems.
Government often find themselves as
helplesswhenitcomestosolvesuchproblems.Banksassocialentitiesofthiscountryare
consideredasapartoftheaffluentsectionofthesocietyandhencetheyareexpectedto
contribute more meaningfully towards the betterment of the society.
If all banks come forward to contribute to the society, it will
help to create their social branding as well as helping the
society. Banks are seen to perform more CSR activities in this
area.
7.6 Sports
Financialsupportismandatoryforimprovingtheperformancesofsportsofthecountryandto
perform better at international level .Keeping this in mind,
Government of Bangladesh has taken initiatives to attach each bank
with a particular event of sports. So, financial institutions have
to play a role to encourage and support the sports.
AsperBangladeshBanksReviewofCSRactivitiesoffinancialsectorin2013,totalannual
direct CSR expenditure of banks increased by Tk. 1,424.80 million
than the previous year. (In Million Taka) Year2010201120122013 CSR
Expenditure2,329.802,188.333,046.694,471.49
BecauseofSavarRanaPlazaTragedyunlikeinprecedingyears,CSRinitiativesofbanksin
2013 mainly focused on emergency relief in humanitarian distresses.
Other focused areas of CSR activities in 2013 were as follows:
i.financialinclusionoflessprivilegedpopulationsegmentsandunderservedeconomic
sectors
ii.promotionofhealth,educationandcultural/recreationalactivitiesforadvancementand
well being of underprivileged population segments iii.promotion of
environment friendly projects iv.adoption of energy efficient,
carbon footprint reducing internal processes and practices in own
offices and establishments was going on. Besides continuation and
expansion of previous activities in the above areas, some newer
drives were seen in the 2013 CSR reports of different banks
included: 14 | P a g e i.Undertaking projects in a village called
Southkhali, under Shoronkhola thana of Bagerhat
district,forpoorindividualsandfarmerstoprovidemotivationalsessiontowardsPalm
Plantation and distribution of 5,000 Palm Trees free of
costii.Constructionofextensionroadatbothendsofthebridgeconnecting18villagesand
stretchingmorethan6kilometersfromChatlakandatoTuraviaShoulmariatRoumari
upazila under Kurigram district for smooth traffic
movement.iii.Providinglegalassistancetohelplessprisonersandpersonswhodonothavefinancial
resources to conduct cases filed against them.
iv.OrganizingabookfairprogramforunderprivilegedchildrenatBoiMelainBangla
Academy
premises.v.Introducingspecialcreditfacilityforthefarmerstobuyagriculturalmachineriesand
equipments.
vi.SupportingResearch&Development(R&D)activitiesinarchaeologicalsurvey,bio-technology
etc. 8. Brief Overview of Dutch Bangla Bank Limited Dutch-Bangla
Bank started operation asBangladesh's first joint venture bank.The
bank was an effort by local shareholders and the Dutch company FMO.
From the onset, the focus of the bank has been financing
high-growth manufacturing industries in Bangladesh. The rationale
being that
themanufacturingsectorexportsBangladeshiproductsworldwide.Therebyfinancingand
concentrating on this sector allows Bangladesh to achieve the
desired growth. Dutch Bangla Banks other focus is Corporate Social
Responsibility. Even though CSR is now a
clich,DutchBanglaBankisthepioneerinthissectorandtermedthecontributionsimplyas
'social responsibility'. Due to its investment in this sector,
Dutch Bangla Bank has become one of
thelargestdonorsandthelargestbankdonorinBangladesh.Thebankhaswonnumerous
international awards because of its unique approach as a socially
conscious bank.
DutchBanglaBankwasthefirstbankinBangladeshtobefullyautomated.TheElectronic-BankingDivisionwasestablishedin2002toundertakerapidautomationandbringmodern
bankingservicesintothisfield.Fullautomationwascompletedin2003andherebyintroduced
plasticmoneytotheBangladeshimasses.DutchBanglaBankalsooperatesthenation'slargest
ATM fleet and in the process drastically cut consumer costs and
fees by 80%.
Moreover,DutchBanglaBankchoosingthelowprofitabilityrouteforthissectorhassurprised
many critics. Dutch Bangla Bank had pursued the mass automation in
Banking as a CSR activity and never intended profitability from
this sector. As a result, it now provides unrivaled banking
technology offerings to all its customers. Because of this mindset,
most local banks have joined Dutch Bangla Bank banking
infrastructure instead of pursuing their own. Even with a history
of
heftytechnologicalinvestmentsandevenlargerdonations,consumerandinvestorconfidence
hasneverwaned.Dutch-BanglaBankstocksettherecordforthehighestsharepriceinthe
DhakaStockExchangein2008.AsperBangladeshBanksCSRactivitiesratingthisbankis
currentlyholdingthetoppositionofthechartdisclosedbytheBBsAnnualCSRinitiatives
report. 15 | P a g e 9. CSR activities by Dutch Bangla Bank Limited
DBBLasaresponsiblecorporatebodyisfullyawareofitsresponsibilityabouthowits
operationalactivitiesimpactitsstakeholders,theeconomy,thesociety,itsstaffandthe
environment.Conductingbusinessinanethicalway,creatingopportunitiesforbusinessand
economicgrowth,empoweringpeopletofulfilltheiraspirations,ensuringprotectionof
environment while financing businesses and supporting the
distressed people of the society are at
theheartofsocialcausepolicyofDBBL.DBBLsinceitsinceptionin1996hadadoptedthe
policy of contributing to the social cause. It has been continuing
its effort during the last 18 years as a pioneer in the banking
sector and has become the leader much ahead of the other banks. To
that end in view the Bank established Dutch-Bangla Bank Foundation
which has been rendering services to various fields relentlessly
where it is necessary covering the areas of education, health
care,naturalcalamitiesaswellasman-madedisaster.TheBankdreamsofacountryfreefrom
hungerandasocietyfreefromvices.Itisnotpossiblewithouteducation.Assuchthebank
placesmuchimportanceoneducation.Meritoriousstudents,particularlyinruralareasare
droppedeveryyearbecauseoffinancialconstraint.Buttheycouldcontributetothenation
building if they could have some financial assistance. Keeping this
thing in mind DBBL has been
awardingscholarshiptothemeritoriousstudentsinneedoffinancialaidsinceitsbeginning.
ConsideringthenumberofsuchstudentsishugetheBankhasplannedtoincreasethe
scholarshipnumbertoaninsurmountablelevelof30,000involvinganamountofTaka1.02
billion annually from the year 2016. 46%37%4%10%1%2%Contribution of
DBBL in Different Sectors in 2014Education HealthSocial
DevelopmentDisasterSocial Awareness Miscellaneous 16 | P a g e 9. 1
Contribution to education Sector
Humanisthemostimportantelementofanykindofdevelopment.Tomakethehumana
resourceeducationisamust.Keepingthisviewinmind,Dutch-BanglaBankhasbeengiving
priority to the education sector. Awarding scholarship to
meritorious students in need of financial aid, financial support
for organizing the prestigious Ganit Olympiad, Physics Olympiad,
helping
developmentofeducationalinfrastructuralfacilities,providingessentialeducationalequipment
etc. are some of the aspects included in the program. 9.1.1
Scholarship Program
Dutch-BanglaBank,underitssocialcauseprogram,hasbeenawardingthescholarshipstothe
meritoriousstudentsinneedoffinancialaidstudyingatdifferentlevelsofeducationsinceits
beginning. DBBL awards new scholarships every year along with
renewal of existing awardees. The Bank has given scholarships to
the deserving students from huge applications following a set of
criteria suchas the applicants academic results, financial
capability, physical conditions etc.
Around90%ofthescholarshipshavebeengiventotheruralstudentsand50%tothefemale
students. Realizing the fact that every year many meritorious
students, mostly in rural areas, are
compelledtodiscontinuetheirstudybecauseofpoverty,thebankhasincreasedthenumberof
scholarship massively. Accordingly, 26,439 students of HSC and
graduation level were awarded
scholarshipunderthisprogramin09differentphasesuptoDecember2014.Withintheyear
2016 the number will reach to an insurmountable figure of 30,000
per year involving an amount of taka 102 crore annually. 9.1.2 The
Math olympiad, dutch-Bangla Bank - Prothom Alo Ganit utsab
DBBLhasbeenprovidingfinancialsupporttotheprestigiousGanitUtsabunderthetitleof
Dutch-BanglaBank-ProthomAloGanitUtsabforthelastelevenyears.About25,000students
fromdifferentschoolsandcollegesofthecountryparticipatedintheGanitUtsabin2014.The
program was held in 22 different regions. Among the 25,000
participants more than 800 students qualified for the national
program and participated in the 12th Bangladesh Ganit Olympiad.
Then
ganitcampwasarrangedwiththewinnersoftheNationalOlympiadandfinallyateamof06
(six)memberswereselectedandtheyparticipatedinthe55thInternationalMathematical
Olympiad (IMO) held in South Africa in 2014. 9.1.3 Donation for
organizing Bangladesh Physics Olympiad Physics is the mother ofall
sciences, theroot ofall concepts. Making physics thrive will cause
sciencetodevelopbeyondjustschoolstudies.ThePhysicsOlympiadwillarouseinterest
regardingscienceinthemindsofthenewgenerationanddrawthemtowardsit,aswellas
encouragethemtolearnin-depthaboutthisfieldofknowledge.Keepingthisviewinmind,
Bangladesh Physics Olympiad Committee has been arranging Bangladesh
Physics Olympiad for
thelastfouryearssuccessfully.DBBLhasbeenprovidingfinancialsupportforlast2
consecutiveyearsattherateofBDT2,500,000in2013andBDT2,500,000in2014for
organizingBangladeshPhysicsOlympiadalongwithparticipationintheInternationalPhysics
Olympiad(IPhO).The4thPhysicsOlympiadwasheldin10regionswhere7,000students
17 | P a g e
participatedintheprogram.Itisagreatsuccessthatalotofstudentsof
Bangladeshhavebeen attracted in Physics and Science through
arranging Bangladesh Physics Olympiad. 9.1.4. Educational
Infrastructural development
DonationtoSholakuricollege,Modhupur,tangailSholakuriunionissituatedinModhupur
Upozila of Tangail District. It has 42 villages and about 35,000
people live in this area. Most of
themareethnic-GaroandKutch.TherewasnocollegeinSholakuriandsurroundingareas.In
ordertospreadthelightofeducationtothedisadvantagedpeople,Dutch-BanglaBankgranted
financialsupportofTk.10,000,000.Donationwasalsogiventofaujdarhatcadetcollege
Chittagong started its journey in the year 1958. 9.2 Contribution
to Health Sector
HealthisoneoftheprimeparameterstoachieveMillenniumDevelopmentGoal(MDG).The
needforhealthcareisincreasingeverydayduetorapidgrowthofpopulation.Dutch-Bangla
Bank has identified health care as a priority sector and helped
create better health care facilities
atacheapercostforthedisadvantagedpopulation.InthisconnectionDutch-BanglaBank
extended its support for the following programs in 2014: 9.2.1
Contribution for health infrastructure development donation to
Dhaka Ahsania Mission Cancer & General Hospitaldonation
toCombined Military Hospital (CMH)donation to SHEBA health center
9.2.2. Smile-Brighter Program Smile-Brighter program is an
initiative taken byDBBL tobring back smile on the face of the boys
and girls with cleft-lip and cleft-palate through plastic surgery
at free of cost. DBBL spent Taka 49.43 million for cleft-lip and
cleft-palate operation under Smile-Brighter program since 2003.
9.2.3 Cataract operation for underprivileged blind people Visual
impairment isanimmense social problem in our country. Cataract is
the major cause of
blindnessand80%ofthemcanresumevisionthroughcataractoperation.Alargenumberof
ruralpoorpeoplearedeprivedoftheopportunitytodoawaywiththeproblem.Keepingtheir
sufferingsinmind,Dutch-BanglaBankFoundationstartedtheprogramofoperating12,000
underprivilegedblindpeoplebyprovidingsophisticatedcataractsurgery(IntraOcularLens)
throughoutthecountryinphasessince2008.About6,505cataractoperationshavesofarbeen
completed successfully among which 1,500 operations were done in
the year 2014. 18 | P a g e 9.2.4 Support for medical treatment
DBBL provide one-time financial assistance to those who have been
suffering from diseases for
longtimeandarenotabletobearthetreatmentcost.Intheyearof2014intotalBDT1.78
milliondonationsweremadetodifferentpersonstomeetthecostoftreatmentofcancerand
other diseases. 9.3 Contribution in disaster Management DBBL stands
by the distressed people at the time when natural calamities occur.
DBBL provides support to the affected people in cash and kind for
their rehabilitation after the natural calamities
likecyclone,flood,tornado,landslide,rivererosion,anddevastatingfire.Thedonationinkind
includesfood,medicine,waterpurifyingtablets,blankets,GCIsheetsetc.Someofthe
contributionsofDBBLinthissectorin2014areasfollows.TheBankhasbeendistributing
blankets among the poor people of the country for the last many
years. In this connection DBBL
donatedtotal1,42,000blanketsworthTk.9,08,80,000/-(Takaninetymillioneighthundred
eighty thousand) only in the year 2014. donation of blankets to the
cold affected people of the country donation of BDT 50,000,000 only
for relief and rehabilitation of the flood affected people 9.4
Contribution to Social Development
DBBLhasbeenprovidingdonationstodifferentnon-profitorganizationsandreligious
organizations with a purpose of welfare of the society from the
beginning of their CSR program. In 2014 it has contributed to the
below
organizations:donationtoPROYAShforconstructingthe4thand5thfloorofthePROYAShacademic
building at Dhaka cantonment donation ofBDT 20,000,000 to Lakhu
Konthe Gao Sonar Bangla donation to Police lines Jame Masjid,
Madaripur donation for constructing a 5-storied Mosque complex at
Mirpur DOHS 9.5 Contribution to sports sector
BangladeshAthleticFederationisanationalorganizationwhichisworkinghardforthe
developmentoftheathletesofthecountry.Thosepotentialandrisingathletesweretrainedup
with the modern scientific trainingsand intensive cares so that
they would reach to the level of international / world class
standards and thus they were expected to achieve the name and fame
ofBangladeshbywiningawardintheSAFGames,AsianGames,CommonwealthGamesand
World Olympic Games. To arrange such sophisticated training course,
the organization needed a
largeamountoffinancialassistancefromthedonors.Inthisconnection,DBBLdonatedTk.
1,000,000/-(Takaonemillion)onlytoBangladeshAthleticFederationfororganizing03-year
long term training program for the Athletes. 9.6 Contribution to
city beautification 19 | P a g e Dutch-Bangla Bank constructed a
monument in the crossing of Hotel Ruposhi Banglaand State Guests
House Jamuna. DBBL is also engaged in beautification of the road
islands and footpaths
fromKakrailCrossingtoHotelRopashiBanglaCrossingofDhakametroasapartofcity
beautification project. Taka 11,31,000/- (Taka one million one
hundred thirty one thousand) only was spent in last year for
maintenance of the monument and fountain. 9.7 Contribution for
creating awareness on different social issues DBBL has been
engaging in creating awareness through electronic and print media
since long on
differentsocialissueslikeHopeandlovemakeuslovely,Willpowerisenoughtodoagood
job,Upholdjustice,Goodbehaviorwithmentallyretardedpersons-amoralduty,Humanfor
humanity, Drug addiction- a menace to destroy life, Plant tree-
save environment etc. The short
dramasfocusingonabovesocialissuesaretelecastedregularlyinprimetimeatseveral
electronicmediafortheviewers.Besides,somebillboardsareplacedinvitallocationsofthe
citywithcolorfuladvertisementofthosesubjects,forcreatingawarenessamongthemass
people.ConsideringthisDutch-BanglaBankspentTaka10,800,000onlyin2014forcreating
awareness. Hope and Love make us lively Willpower is enough to do a
good job Uphold justice Good behavior with mentally-retarded
persons, a moral duty Human for Humanity Drug addiction - a menace
to destroy life Plant tree, save environment Donation on account of
miscellaneous purposes 10. Discussion and Analysis
OutofthetotalsixheadsofCSRasmentionedearlierinthispaper,DBBLhasbeenfoundto
scorethehighestinsecondareascalledEducation,Health,EnvironmentandSocialwelfare.
MercantileBankLimitedhasthehighestcontributionsanddisclosurescoresinculturaland
heritageretention.BankAsiaLimitedandPrimeBankLimitedjointlytopthetableofCSRin
Sports.Mostofthebankshaveshownbettercontributionineducationandhealthsectorasthe
partoftheirsocialresponsibilitiesasitisseenthatthepercentageofhighestaveragescore
achieved to the score allocated. Banks have the least contribution
in Environmental and Culture
&HeritagerelatedCSRasitfoundfromthestudythatthepercentageoflowestaveragescore
achieved to the score allocated.
Itismatterofpridethatthebanksareveryconcerntocontributetomeettheemergency
situationsspeciallylikecyclones(Aila)andfloodaffectedareas,warmclothdistributionetc.
EverybankcontributedtoourprimeministerRelieffundespeciallyforfloodaffectedpeople,
BDR mutiny and fire affected people of garments. The study revealed
that the banking sector in Bangladesh has been playing vital role
for the welfare of the society. As it is seen from this paper
thatthebankshavegivenmostprioritytocontributeintheeducationsectorofBangladesh
understandingtheimportanceofitforthebuildingofagoodnationatthesametimetheir
contribution for the protection of environment is phenomenal. 20 |
P a g e From the above table it can be drawn that Banks spending on
CSR was increased by 46.78% in 2013 whereas in 2012 therewasa39.22%
increase in comparison to 2011. From 2010 to 2013 there was an
increasing trend in CSR expenditure as per recent data disclosed by
BB.
ExpenditureofallbanksforCSRactivitieswitnessedasignificantrisein2013despitea
downturn in their overall operatingearnings. Expenditure of banks
for CSR activities is on rise because the central bank has been
able to motivate them for doing something for the welfare of
deprived section of the society. BB also monitors regularly whether
banks are maintaining rules
andregulationsfortheirexpendituresunderCSRactivities.Besides,banksarenowmore
conscious about their responsibilities for the underprivileged
section of the society.
BanksgenerallyspendaportionfromtheirnetoperationalprofitsforCSRactivities.To
encourage banks for CSR activities, BB is awarding points to banks
on management component
whilecomputingCAMELSratingwheretherewillultimatelybeapositiveimpactonoverall
rating of a bank. According to BB, the total operating profits of
banks stood at BDT 7,225 core in 2013 and BDT 4,466 crore in 2012
whereas their total operating profits were BDT 9,121 crore
in2011.Dutch-BanglaBankspentthehighestBDT78.54croreunderCSRactivitiesin2012,
Islami Bank Limited was in second position which spent BDT 47.61
crore and Janata Bank was
inthirdpositionthatspentBDT42.68crore.DirectCSRexpenditureofDBBLispresentedas
under as per recent data of BB.
In2013totalexpenditureinCSRbydifferentbanksinBangladeshwasBDT4,422millionas
perBB.If wecompareonly DBBLs expenditure as the highest spenderin
CSR activities with all of the banks of the country we can find the
below table: Year DBBL Expenditure in Taka All Banks Expenditure in
Taka Percentage 2010168,860,0002,329,778,0007.25% 21 | P a g e
2011341,830,0002,188,329,74315.60%
2012527,670,0003,046,685,87717.32%
2013785,400,0004,422,387,45017.76% We can see there was a 48.84%
increase in the DBBLs direct CSR expenditure in comparison to
45.15% of overall banks direct CSR expenditure in 2013. This
analysis also left the footprint of DBBLs being the highest
contributor to the society in the form of direct CSR expenditure.
11. Conclusion
AsathirdworldcountryBangladeshhaslotofproblems.Governmentoftenfindthemselves
helplesswhenitcomestosolvingtheseproblems.Asbusinessownersofthiscountryare
considered as a part of the affluent section of the society they
can contribute more meaningfully
towardsofthebettermentofthesociety.Ifmorecompaniescomeforwardtocontributetothe
society like DBBL, Social Responsibility of DBBL, it will help to
create their social branding as
wellashelpingthesociety.Therefore,wecansayDBBLisapioneerinCorporateSocial
Responsibility because the idea of CSR is vastly expanded by DBBL
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