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THE UNIVERSITY OF ASIA PACIFIC

International Business IBS 301 Report On Corporate Social Responsibilities: A study of Telecom sector of Bangladesh

Submitted To: Md. Ishtiak Uddin Course Instructor Department of Business administration The University of Asia Pacific

Submitted By:
Name
Md. Anwar hossain Md. Mostafezur Rahman Md. Rezaul Karim

Registration No.
10102041 10102044 10102069

Section
1 2 2

Date of Submission: 17th January, 2013

A study on telecom sector of Bangladesh

Imagination and Reality is not same, we are thinking so many about telecom sector of Bangladesh, and everything is not true. Now we are trying presenting the actual Information about telecom sector. Telecommunication is a way of communicate information over distance by electronic transmission of impulses as by telephone, telegraph, television, radio etc. Corporate social responsibility is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stake holders, as well as the environment. Telecommunication sector is important which can play a vital role of a countries economy. The main aim of this study is to present corporate social responsibilities of telecom sector of Bangladesh, including the present situation of corporate social responsibilities of telecom sector and its impact. Corporate social responsibility is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stake holders, as well as the environment.

Grameenphone: It is a joint venture enterprise between Telenor (55.8%), the largest telecommunications service provider in Norway with mobile phone operations in 12 other countries, and Grameen Telecom Corporation (34.2% ), a non-profit sister concern of the internationally acclaimed micro-credit pioneer Grameen Bank. The other 10% shares belong to general retail and institutional investors. It started its operation on March, 1997 in Bangladesh. Grameenphone had done its Corporate Social Responsibility by following three social steps: Health, Grameenphone starts work with National Immunization Days (NIDs) to remove the polio disease from the country. Grameenphone is a proud partner of this mass awareness campaign during the NIDs. As a part of the campaign, radio and newspaper announcements urge parents to bring their children to vaccination centers across the country. Free SMS alert are sent to all Grameenphone subscribers, and mobile vaccination centers run throughout the Dhaka City Corporation. These types of social work creat believe in the people who use the product and inspire the people to use product. The M4H initiative is currently in its design and test phase to build a platform to provide both audio and text messages with vital information on antenatal, neonatal, and infant health. The messages will be linked to the women's delivery dates, giving them critical information at the right stage in their pregnancy and early motherhood. Online School, in our traditional education system, the teacher is standing in front of the student and they can interact with each other. But day by day our education system is falling behind due to lack of schools and experienced teachers. To remove stress from education system, to reach the use of technology in education system to the every student in Bangladesh and to present as a socially responsible company with Education

A study on telecom sector of Bangladesh

one of the centers of attention areas of Corporate Responsibility, to find out a way to get involved through which quality education can be ensured. With this objective in mind Grameenphone launched Online School (pilot). Online school means a remote school is connected with a sub-urban school in Dhaka where the teacher conduct the class using video conferencing technology where the teacher and students both the party can interact with each other. The students will also get necessary books and stuff in the online school. On 4 October, 2011 Grameenphone signed an agreement with Jaago Foundation to launch a CR initiative named Online School. At present, the Jaago Foundation has three schools for the children who are living at the slums. Two of them are at Rayer Bazaar and Banani. The third school is at (Boro Bari, Gacha para) Tongi. The pilot is taking place between the schools at Rayer Bazaar and Tongi. Under this project 80 students participate in the class in two shifts day shift and morning shift. Grameenphone power project delivering power supplied on regular basis to 140 households from 5 pm to 12 am, and to one Grameenphone community information center in day time. We knew that few years ago there are some districts people those dont know about Grameenphone, but because of their social work, people now using Grameenpones products. December 2003, Grameenphone, in collaboration with Grameen Shikkha, an organization of Grameen Bank Family, provides financial assistance to 100 bright but underprivileged students through a scholarship fund at different academic levels annually. The fund is being managed directly by Grameen Shikkha. Currently 100 scholarships are being managed through Grameenphones fund. 11 students participated in Higher Secondary Certificate (HSC) examination last year (2010) and all of them have passed with flying colors. Four of them have achieved GPA 5.00 (A+) including one Golden A+. The rest have scored an A grade. 5 students achieved a GPA 5 in Secondary School Certificate (SSC). This program inspires underprivileged students and gives them the opportunity to study hard and grow as real leaders so that on completion of their studies they may take the challenge to become future leaders of Bangladesh. Education, Alokdeep: Non-Formal Primary School cum Cyclone Shelters, Cyclone SIDR, a category 4 storm, struck Bangladesh in November 2007. It first hit the offshore islands and then swept across the southern coast east to west. This caused extensive damages. More than 3.1 million people in the 28 southern districts were reported to have been directly affected by the cyclone. It has been estimated that more than 3,500 people died, with extensive damages of roads and public buildings, including the destruction and partial destruction of 4,306 educational institutions. The most affected areas include Bagerhat, Barguna, Barisal, Bhola, Gopalganj, Khalkathi, Khulna, Madaripur, Patuakhali, Pirojpur, Shatkhira and Shariatpur districts. Alokdeep aims to provide shelter when natural calamities strike. It otherwise will act as a place to provide non-formal primary education to the poor population of the community. October

A study on telecom sector of Bangladesh

2009, Grameenphone, as part of its rehabilitation plans in the SIDR affected areas, committed to provide financial assistance to build four non-formal primary school-cum-cyclone shelters named as Alokdeep in the southern belt of the country. RDF and Shushilan, the two local NGOs that operate in the selected areas are responsible for the overall management of the project which includes the constructions and operation of the schools. Each of the Alokdeep consists with a two-storied building along with adjacent playground. Grameenphone lunch this program in such area-Borguna, Nishanbaria, Borguna, Southkhali, Shoronkhola, Ryanda, Shoronkhola, Bagerhat. Environmental, Click Green, Climate change is widely recognized as the greatest global sustainability challenge. Its implications are far-reaching for the environment, for the people, and for the global economy. Bangladesh, though being the lowest contributor to environmental degradation, is considered to be among the worst-hit countries to the effects of climate change. In view of this, as a responsible corporate citizen Grameenphone launched its environmental and climate change campaign Stay Green, Stay Close. Click Green is an internal initiative of this particular campaign. 2009 and June August 2011 respectively, A Photography Competition is being arranged for all GP Employees to create climate and environmental awareness among the valued employees of Grameenphone and to inspire Green Lifestyle. Community power project, a social business approach 90 million out of 140million population in Bangladesh do not have direct access to electricity and remaining 50 million people have access but reliable and quality power is still beyond their reach. A large number of these households are situated in remote rural regions that are unlikely to get connected to the national electricity grid. This limits socio-economic development and has direct consequences at the individual level. In 2011, Grameenphone and University of Oslo will initiate a community power project where a solar power plant will be established and provide power to the Grameenphone base station as well as households and local businesses. Grameenphone Climate Change Program, Grameenphone being a socially responsible company adopted systematic processes to ensure that, wherever possible, we manage and mitigate the probable negative impact of our business activities on the environment. Grameenphone's Climate Change Program was initiated in early 2008 with a vision for reducing carbon emission, being environment friendly and creating a momentum with the community and people. Community Information Center, The Grameenphone Community Information Center is a shared premise where rural people may access a wide-range of state of art services such as Internet, voice communications, video conferencing and other information services. This initiative by Grameenphone is in line with the company's objective to serve local community needs by: Bridging the "digital divide" by providing information access to rural people - Alleviating poverty Educating the underserved and underprivileged on information-based services - Building local entrepreneurships and improving capacity - Creating employment opportunities for the unemployed youth

A study on telecom sector of Bangladesh

Village Phone, The Village Phone Program, also started in 1997, provides a good incomeearning opportunity to more than 210,000 mostly women Village Phone operators living in rural areas. The Village Phone Program is a unique initiative to provide universal access to telecommunications service in remote, rural areas. Recently Grameenphone initiated the 'Exchange Happiness program' to distribute 9,000+ blankets & 4,000 clothes in the northern regions and the capital. So we can say that Grameenphone is more concern about their corporate social responsibilities that promotes their company as a social partner.

Robi: Robi helds Art competition, that inspire age between 5 to 14 years children to compete with each other and inspire to learning by hard working. This program is published by different TV channel thats introducing their company people. Inspire them to use the packages of Robi. By providing ICT program, Robi provide computer to the urban and suburban areas schools and colleges, and working together to achieve the vision 2021. They also have planned to provide this service to the 64 districts. They are mainly focusing to increase the IT literacy of female students. English in school is program of Robi that operate to teaching English language of the students. This program supported students to develop their poor English skill. Robi also provide system of English language learning Press Insertation which is enjoyable for students. Robi is providing support to the underprivileged people of the society with a view to turning disability into ability With the pledge Protibondhita Korbo Joy, Ai Hok Prottoi'. They have contract with Impact Foundation Bangladesh, a charitable trust based in England, who has specialized hospitals for this treatment in Kustia, Meherpur and a floating hospital Jibontori. Here, the patients are treated by the doctors team from England and Belgium. Robi spontaneously work create awareness among people to treat their clubfeet child. As a result they are successful to prove themselves as a social partner by helping people and also create a place in the people mind.

Banglalink: Banglalink remained committed to play its role as a responsible corporate citizen to contribute in making a difference in the socio-economic development of bangladesh. The company undertakes several projects each year for the welfare of community and preservation of the environment.

A study on telecom sector of Bangladesh

These initiatives consolidated banglalinks reputation as forerunner in the corporate social activity. Banglalink social activities include the following initiatives: Coxs bazar sea beach cleaning project and international coastal cleanup day, Since 2005, banglalink has been cleaning worlds longest sea beach, coxs bazar. Under this project, 26 female workers clean the 3 km long beach 363 days a year in 2 shifts. In addition to that there is another team of 7 male workers who support to move all heavy dirt and rubbish from the beach. Moreover, Banglalink is educating and generating awareness among the visiting tourists and encouraging them to join hands in making a difference. This initiative is considered as one of the iconic csr activities in bangladesh, which has a far reaching sustainable impact in the community. To generate further awareness and create hype, especially among youth, Banglalink observes international coastal cleanup day since 2005. almost 500 volunteers from prominent universities, colleges and different organizations from Dhaka, Chittagong and Coxs bazaar joins hands to clean the beach- which makes this the largest voluntary initiative. Donating blankets at orphanages, Since 2009, to help underprivileged children, Banglalink has taken this special initiative to distribute blankets among the orphan children of many orphanages around the country- which are in great need for it during winter season. Last year they distributed 5,000 blankets among the destitute children of 101 orphanages across the country. The districts covered were- Dhaka, Chittagong, Khulna, Rajshahi, Rangpur, Barisal, Narayanganj, Mymensingh, and Tangail. Special arrangements for hajj pilgrims at the hajj camp, Since 2009, Banglalink took several initiatives to provide free services to hajj pilgrims at hajj camp where they gather to depart for hajj. this includes arranging air-conditioned busses for pilgrims, water distribution zone, phone counter for making free phone calls, free charging units etc. other than these, to further aid the pilgrims, Banglalink provided them with trolleys, signage, information through vas & a hajj guide booklet to facilitate quick and easy understanding of hajj rituals. Water & date distribution and iftar at orphanage during Ramadan, since 2009, banglalink distributed free water and dates for the fasting people who got stranded at major traffic points of selected metro cities around iftar time during ramadan. banglalink also took initiative of arranging regular iftar & dinner in different orphanages around the country. in 2011, we provided water & dates to almost 85,000 people and iftar and dinner for more than 12,000 orphans of 123 orphanages across the country. It also creates a positive think about the company in the religious peoples mind. It is a positive point for banglalink that there are 90% people those are religiously motivated.

Airtel:

A study on telecom sector of Bangladesh

Airtel done it corporate social responsibilities differently, to attack cricket loving people they provide free ticket for the winner elected by them. They also promoting Hatirjheel Lake and other visiting source by their facebook account.

Teletalk: Teletalk Bangladesh Limited still engaged itself in several CSR activities. Notables among them during the financial year have been described below: Teletalk has established a short code SMS helpline for children with disability/diseases: The 666 Helpline for Children was established with a view to create a specialized fund for children with dire need of financial assistance. All SMS sent to this number will be charged and the amount will be retained in a special fund. This fund will be used for rehabilitation / treatment of the children. Childrens art initiative, Teletalk Bangladesh Limited published a special Billboard Calendar based on selected pictures from the competitions. Teletalk has created a unique outlet to acknowledge and encourage childrens art. With association from Talent Promotion Initiative Teletalk has arranged a childrens art competition, where children have engaged in a day long painting competition with Bangladeshi seasonal themes. Blanket Distribution Program, In Rangpur district Teletalk distributed 500 (Five Hundred) pieces of Blankets to the distressed people in the winter through Anjuman Mofidul Islam. Medical Treatment for Bushra, Teletalk initiated a helping program for Bushra a patient of blood cancer. One can send SMS for Bushra to help raise fund for medical treatment. For a girl of 3 year old needing bone marrow transplantation, Teletalks unique way of extending help as well as including the community at large was appreciated. Blood Donation Program, Teletalk has sponsored and directly participated in voluntary blood donation program. ORCA (Old Rajshahi Cadet Association) had organized a blood donation program which was sponsored by Teletalk.

Citycell: Citycell (Pacific Bangladesh Telecom Limited) is operating in Bangladesh as one of the leading telecommunication companies from 1989. As the only CDMA mobile operator in the country, they provide innovative, reliable and excellent telecommunication and mobile internet

A study on telecom sector of Bangladesh

services/solutions. Citycell understands the consumer needs and delivers the latest in advanced telecommunication services to Bangladesh. Citycell recently signed an agreement with the Smiling Sun Franchise Program (SSFP). SSFP, a project funded by the United States Agency for International Development (USAID), is committed to improve the quality of life of all Bangladeshis by providing superior, friendly and affordable health services in a sustainable manner. Under the agreement, Citycell will provide its Zoom Ultra connectivity at special price to 320 clinics under the SSFP countrywide. This will enable SSFP to benefit from a faster and cost effective mobile broadband solution facilitating their daily internet needs. SSFP will also receive some Zoom Ultra modems from Citycell at free of cost as part of Corporate Social Responsibility initiative of Citycell which will facilitate SSFP to be connected with its clinics located at the remote areas. They also work with Contribute toward country education, Anti drug& Health sector, Beautification of the City. Citycell is the official sponsor of Bangladesh Football Federation. Impact of corporate social responsibilities, In Bangladesh the first situation of telecommunication sector is like monopoly market. Citycell start its operation in 1989 as a first telecom company in Bangladesh, so citycell took the first mover advantage. After Grameenphone lunch its operation in Bangladesh.If we have a look in the primary stage of our telecom sector, we had only city cell and Grameen phone and they were operating their business in own way. But when Banglalink, Robi, Teletalk, Airtel come to compete in the market then the market became more competitive and still there exist a high competition in this sector. So to face this challenge some of the operators are thinking to merge their business to survive in the market. To increase client they compete with each other, now we can say it is a pure market. As a result the telecom companies have to increase corporate social responsibilities to inspire new customer and to motivate existing client. As we can say, when Citycell and Grameenphone lunch their company in Bangladesh they keep price for a sim card 1lack to 1.5 lack. But when banglalink, airtel, teletalk enter the market the price sim card falls in 1 hundred to 2 hundred. So it is good for us. To proved themselves as social partner, the telecom companies done different types of social work. Grameenphone lunch different types of social program such as- they working with National Immunization Days (NIDs) to remove the polio disease, M4H(mobile for health) to helping people by providing important health information, online school to helping students by providing quality education, community power project, click green, Grameenphone Shikkha scholarship, Alokdeep program, Community information center etc. Robi, Banglalink, Teletalk, Citycell and Airtele also lunch different types of social program such as- Art competition for children, ICT program to develop IT sector of Bangladesh, Protibondita korbo jor, Englishiinschool, Coxs bazar sea beach cleaning project and international coastal cleanup day,Donating blankets at orphanages, Special arrangements for hajj pilgrims at the hajj camp, Water & date distribution and iftar at orphanage during Ramadan, ICT support for underprivileged children to computer lab set up, short code SMS helpline for children with disability/diseases,Childrens art initiative,Medical Treatment for Bushra, Blood Donation Program etc.

A study on telecom sector of Bangladesh

So can say that they keep a big role to develop our economy and changes the life style by providing lowest rate, internet,information and by doing social work. Grameenphone also arrange program in channel i Trityo matra that present political leader and talking different issues that people want to know the secret cause. It is free talking program, for this reason people can justify about the issue. In Recommendation, we can say, depend on the all information of corporate social responsibilities of telecom sector that Grameenphone is highly involved with corporate social responsibilities than other telecom company. After analysis on Telecom Company of Bangladesh, we can say that it is easy for them to help the people those are poor, effected, natural calamities and other problem by increasing awareness and collecting fund from the users. In recent, the northern areas people of Bangladesh are affected by tropical climate. It can be possible to reduce crisis of the affected people, if they increasing more awareness among the people for helping them. High competition in mobile or telecom sector in our country is one of the main problems. If we have a look in the primary stage of our telecom sector, we had only city cell and Grameen phone and they were operating their business in own way. They took the first mover advantages but when Banglalink, Robi, Teletalk, Airtel come to compete in the market then the market became more competitive and still there exist a high competition in this sector. So to face this competition/ challenge some of the operators are thinking to merge their business to survive in the market. There is only way to compete with other company by working with society welfare. Bangladesh is a least developed country, it has a poor economic background where a major part of people living under poverty line. So it is difficult to operate such type of business in Bangladesh with making a remarkable profit. By considering this economic background, the telecom sector is to fixed the call rate, should reduce tax on SIM and sacrifice more to operate their business. Our political history is not stable. Difference types of political violence, pressure of army, corruption and many problems makes our country politically unstable. If we have look last few year our democracy had face ups and downs, as we have too lower foreign direct investment. The economic growth rate of Bangladesh is not so good, the telecommunication sector cannot make a good profite. Moreover they have to pay a high rate corporate tax which is between 40%45%. Bangladesh is not good enough in using technology. So telecom companies is to import technologies, handsets and equipment related to the telecommunication and in this way they are to pay 35% import tax on it. It is great problem for this sector. So finally in Conclusion, we can say that the Bangladesh telecom market has lot of potential offer behind some threats. There are lots of opportunities. Bangladesh has cheap labor Communication infrastructure is in good condition. Customer demand for telecom product is

A study on telecom sector of Bangladesh

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also high. Govt. policies are also becoming liberal. Though telecommunication sector plays a vital role in our economy by creating job, generating revenues and contributing different type of social programs but our tax system and market structure makes it a non-profitable sector. If we can solve the problem of tax on imported technologies and on other corporate sector, our government can earn a huge amount profit from telecom sector.

A study on telecom sector of Bangladesh