This study defines corporate sustainability as the integration of social and
environmental aspects into business strategy, business operation and stakeholder interactions. It is evident, therefore, that social and environmental activities that are not related to the business operation and strategy, such as work done by the different foundations associated with financial institutions, are not included in the scope of this paper. The emphasis here is on the word integration: the purpose of this study is to investigate how social and environmental aspects relating to everyday business are being addressed by the organizations. ften associated with the term corporate sustainability, and of the utmost importance in understanding the sub!ect, is the concept of the triple bottom line "T#$% proposed by &ohn 'lkington in ())* in his book Cannibals with +orks. The T#$ concept refers to economic prosperity, environmental ,uality and social progress, and to building metrics that help measure the performance of a company not only in the economic but also social and environmental spheres #ank sustainability does not necessarily imply higher costs, more bureaucratic processes and lower financial returns. Sustainability is firmly rooted in a business perspective where socio environmental performance goes hand in hand with economic performance - a change of paradigm that prioritizes permanence and perpetuation of the organization. In some situations, improvement in the socio. environmental performance can generate short.term financial gains for the organizations - see, for e/ample, opportunities from carbon credit trading. In other situations, this improvement may not bring immediate benefits but does give the company long.term gains, which contribute precisely to the ongoing and permanent success of the organization. So, a situation where socio.environmental improvements are primarily linked to economic losses violates one of the three supports of the T#$, and is not sustainable. Two principles are e/tremely important in promoting corporate sustainability: corporate governance and innovation. 0 company can guarantee that the interests of the various stakeholders are preserved only when it has good corporate governance practices, and a sustainable company is one that recognizes and values its internal interdependence not only with internal agents, such as its employees, but also with players outside the company, such as suppliers and clients. n the other hand, innovation is the catalyst of the aforementioned change in paradigm, creating new products, redesigning e/isting processes and rethinking the business model of the organization. Corporate sustainability can be found in different forms within the financial sector. In some cases, it is more apparent in the creation of new products with specific characteristics relating to social inclusion or environmental preservation, for e/ample. In others, there is a greater effort to change the e/isting processes, to include socio.environmental risk analysis in the credit risk assessment process, or even use sustainability criteria to select suppliers. 0 third group of companies is concerned with both dimensions. Today most banks announce their information security policies on their website, and it has become a client re,uirement rather than a cutting edge approach. 'nvironmental Insurance 'nvironmental insurance is a reasonably new practice in the worldwide financial sector, mostly found in 'uropean banks. The product consists basically of covering e/penses incurred by polluting activities, for e/ample, relating to damages and losses caused to third parties, body and material damages, cleaning and even legal costs, which would therefore play a compensatory role in the event of an environmental accident. 1owever, in the actual contracting act, consultants from the insurance institution would indicate problem areas in the insured company, making an accurate assessment of its environmental risk and suggesting possible actions that could already be taken to mitigate this risk. In addition, the insurance company can also monitor the behavior of the insured party to prevent it at some time be engaged in activities that may cause environmental damage. In #angladesh, none of the bank in the study was found to offer this type of product. This could therefore be a better e/plored market in the future by the ma!or #angladeshi financial institutions, depending, of course, on increased demand. 'co.'fficiency 'co.efficiency is an important factor in any company seeking sustainable use of natural resources, since it reconciles the sustainable use of finite resources with efficient production and cost reduction. #anking has a high consumption of paper, due to the need to mail bank correspondence "such as statements, credit card bills, investment balance sheets and promotional material%, complete forms, print reports and other activities. It is worth mentioning that, contrary to popular belief, e/cessive paper consumption does not have negative conse,uences for native deforestation, since all paper produced and consumed in #angladesh comes from planted and not native forests. n the other hand, increasing the use of recycled paper reduces solid waste and, conse,uently, reduces pollution. 2oreover, the increase in recycled paper consumption is an incentive for paper collectors and encourages social inclusion of the lower.income classes. 1owever, to increase the use of recycled paper is no easy task. In addition to the acceptance of the clients toward this kind of paper, the use of recycled paper re,uires adaptation of printing processes, bearing in mind that recycled paper is darker and re,uires special treatment to maintain the printing ,uality, re,uiring more ink. 3ecycled paper also does not have significant price benefits4 in fact, it may even cost more than normal paper. 1igher paper consumption leads to higher ink consumption. 0lso, consuming recycled paper increases ink consumption, which may or may not be produced with sustainable practices. Ink consumption, therefore, is also relevant in the conte/t of eco.efficiency in the financial sector. 0lso, bearing in mind that a part of the banks5 printed matter involves printers, a relevant ,uestion is: to what e/tent do banks encourage printing companies to select ink suppliers with sustainable production practices. The energy.saving measures undertaken by banks are also an important aspect of sustainability for the financial sector. '/ecutive Summary Apart from the benevolent social services by some business firms, the new concept of Corporate Social Responsibility (CSR) is an emerging one. Businesses are driven by government, labor unions consumer groups and above all by considering CSR as a long time investment in R. !n the conte"t of Bangladesh, it is more relevant for the e"port# oriented industry, R$% sector, Ban&ing sector etc. %lobali'ation has made CSR practice an imperative for Bangladesh business. CSR concentrates on benefits of all sta&eholders rather than (ust the stoc&holders. Awareness and sense of necessity for practicing CSR is becoming more and more pronounced as the country has to adapt itself to the process of globali'ation. But the overall status of CSR in Bangladesh is still very meager. )ac& of %ood %overnance, absence of strong labor unions or consumer rights groups, and inability of the business community to perceive CSR as a survival pre#condition in e"port and R investment local mar&et constitute some of elements undermining the evolution of CSR practices. Some untoward incident li&e boycott from the importer has taught the local business community about the immense importance of CSR and adoption of this modern and competitive practice is gradually increasing in Bangladesh. Companies are facing the challenges of adapting effectively to the changing environment in the conte"t of globali'ation and in particular in the Ban&ing sector. Although Consumer Rights $ovement, enforcement of government regulations and a structured view regarding the economic importance of CRS are not yet so widespread in the corporate world in Bangladesh, companies have gradually attaching more importance to CSR in the local mar&et as well. *hey are increasingly aware that CSR can be of direct economic value. Companies can contribute to social and environmental ob(ectives, through integrating CSR as a strategic investment into their core business strategy, management instruments and operations. *his is an investment, not a cost, much li&e +uality management. So, business organi'ations can thereby have an inclusive financial, commercial and social approach, leading to a long term strategy minimi'ing ris&s lin&ed to uncertainty. CSR in Bangladesh can also contribute a lot to community development. *he corporate house can develop the community by creating employment, providing primary education, contribution to infrastructure development li&e road and high#ways and addressing environmental concerns. *his is more relevant for a country li&e Bangladesh where the government interventions in these fields being augmented by corporate alliance can go a long way in developing the economy, society and environment. CSR concepts and practices in Bangladesh have a long history of philanthropic activities from the time immemorial. *hese philanthropic activities included donations to different charitable organi'ations, poor people and religious institutions. *ill now, most of the businesses in Bangladesh are family owned and first generation businesses. *hey are involved in the community development wor& in the form of charity without having any definite policy regarding the e"penses or any concrete motive regarding financial gains in many instances. $oreover, most of the S$,s fall under the informal sector having low management structure and resources to address the social and environmental issues. *hese limitations drive the top management of local companies to thin& only about the profit ma"imi'ation rather than doing business considering the triple bottom line- profit, planet and people (CSR definition of )otus .oldings). *he 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 mar&et, it is difficult to ignore CSR standard specifically in the Ban&ing sector. !n case of practicing CSR our selected one Ban& such as /ha&a Ban& always provide greater value in their running operation. Bangladesh economy has been e"periencing a rapid growth since the 012s. !ndustrial and agricultural development, international trade, inflow of e"patriate Bangladeshi wor&ers0 remittance, local and foreign investments in construction, communication, power, food processing and service enterprises ushered in an era of economic activities. 3rbani'ation and lifestyle changes concurrent with the economic development created a demand for ban&ing products and services to support the new initiatives as well as to channeli'e consumer investments in a profitable manner. A group of highly acclaimed businessmen of the country grouped together to responded to this need and established /ha&a Ban& )imited in the year 4115. /ha&a Ban& is most widely recogni'ed for its donations to social causes and its !* investment. .owever it has recently stated that it will stop e"pansion on its A*$ networ& as the current numbers have e"ceeded demand and hence diminishing returns (if any). Although it is widely believed it is a loss#ma&ing6subsidi'ed unit which /ha&a Ban& rationali'es as +uasi CSR. rigin of the 3eport Since practical orientation is an integral part of the BBA degree re+uirement, ! was deputed by the /epartment of Business Administration, ASA 3niversity Bangladesh to the pro(ect wor&. /uring this three months0 ! have complete my thesis paper in /ha&a Ban&. Basically ! am focusing on my report, how the /ha&a Ban& doing their CSR activity. ! have come across with different functions of this ban&. the basic function of a /ha&a Ban& and giving special emphasis CSR activity and performance of the CSR activity. *his report has been originated as the course re+uirement of the BBA program. ! hope the report will give a clear idea about the activities and role of Corporate Social Responsibility in /ha&a Ban&. .owever, apart from that in this report different CSR activity analysis of this ban& have been furnished to have an inner depth of the actual scenario. b!ective of the Study !n case of completing this assignment ! have a broad ob(ective. ! thin& before involving any type of term paper or assignment there is certain goal and ob(ective should be formuli'ed. *he study has been underta&en with the following ob(ectives- *o analysis7 the pros and cons of the conventional ideas about the corporate social responsibility. Analy'ing the selected Ban&0s CSR practices. Critically synchroni'e the result of their performance or profit after practicing CSR. .ow Ban&ing organi'ation handle the CSR activities. *o &now are they truly responsible for the society or not8 9inally to fulfill the re+uirement of the pro(ect wor& under BBA program. Scope of the 3eport *he scope of the study concludes CSR activity in case of corporate arena. .ere it is also stated about the procedure of corporate CSR reporting as per Central Ban& rules, local culture, and companies0 act 411:. *he e"periment was occurred on the /ha&a Ban& )td. !n this report ! have focused on all the +ualitative and descriptive data which include director0s report, auditor0s report, newspapers, articles, maga'ines and periodicals. !n this report ! have also focused how the /ha&a Ban& participated in our local culture by their CSR activity. /ha&a ban& plays the vital role in our social culture by their CSR activities which ! have focused in this report. ! have also stated in this report to the limitation and recommendation of /ha&a Ban& in case of CSR activities. 2ethodology of the 3eport *o prepare a report one is to depend on information to ma&e it fruitful. ! am also not e"ception of this. *o prepare my thesis paper ! have collected information from my assigned topic. *he information that contains in the thesis is from both primary and secondary sources. As a re+uirement of analysis pro(ect my report is divided into different parts. 9irst part contains introduction and concept of the Corporate Social Responsibility. Second part contains overview of the organi'ation. *hird part contains corporate information, management hierarchy and branches of organi'ation. 9ourth part contain about the CSR activity of /ha&a Ban&. 9inally last part contain about the findings, recommendation and conclusion. ! have ta&en help of secondary source of information li&e annual report, catalogues, website and also different periodicals and articles which contains information about /ha&a ban& )td. *o conduct a study properly designing of the process is essential. Because reliability and validity of the outcomes of a study is depends on the reliable data and information. !n this connection some activities has been carried out collect data and information. 6ata collection method: Relevant information has been collected from the web sites of the company. 6ata type: ;e will use primary and secondary data in preparing in this assignment. Sources: *he internal, e"ternal and personal information will be used as the secondary data sources. 0pproach: !n preparing this assignment we will adopt the approach of internationali'ation process of business as mentioned in the boo& of <Corporate Social 3esponsibility, 7eith 6evis 8 blomstrong=. 9rimary sources: /irect interview and conversation with the assistant manager of /ha&a Ban&. >fficials records, conversation with other colleagues. Scheduled survey and informal discussion with professionals *he CSR Centre at the Bangladesh ,nterprise !nstitute (B,!). Secondary sources: ? Annual report of the organi'ation from @221#@242. ? Catalogues, websites, periodicals and different articles. ? $anuals and brochures of /ha&a Ban& )td and different publications of Bangladesh Ban&. $imitation of the 3eport !n preparing this thesis paper ! have faced some problems such as# )ac& of ade+uate &nowledge and conceptual framewor& of CSR. )ac& of electricity. $anipulation of CSR information by management contained in the paper. )ac&ing of auditing process which is related to time and evidences. /ifferent CSR policies and methods are maintained in different organi'ation. )ac& of proper understanding about the CSR information that are needed for the society. )ac& of proper understanding about the +uality of CSR information which are needed for the society. )ac& of available information about different management bodies. )ac& of available information about operation of this organi'ation. )ac& of practicing CSR Act for this Ban&. Structure of the 3eport *he report has two ma(or parts. *he bac&ground of the /ha&a Ban& and the CSR activities of the /ha&a Ban&. *hen again if ! want to understand the CSR activities of the ban& ! need to have a clear view of the ban&ing activities. *hat0s why the other aspect consists of the description of the ban& with the CSR activities analysis of the ban& to find out the performance of the institution. 9art ne: *his is Basically !ntroductory part, the ob(ective and scope of the study, limitations, and research methodology has been highlighted. 9art Two: *his part contains the concept of the Corporate Social Responsibility. *his part is described, when CSR was introduced and why the ban& following the CSR activities. *his part also described the definition of CSR. 9art Three: !n this part ! have mentioned the different types of corporate Social Responsibility which was maintaining the /ha&a Ban&. /ha&a Ban& participated in our society in many ways. Sometimes /ha&a donate huge amount of money. !n this part ! have also focused the /ha&a Ban& participated in our government sector. Basic concept of Corporate Social Responsibility Introduction Social Responsibility is a concept well &nown in the corporate world and beyond that. Businesses all over the world have practiced only profit#ma&ing actions at past but not for long as the enterprises started to develop comple"ities and wideness in si'e and actions so was their reach getting bigger and bigger. As every person has his own social responsibilities towards the society so does the business firms. *he idea that business has social obligations above and beyond ma&ing a profit is corporate social responsibility. .owever, it is regretful that though internationally it is being practiced widely. Bangladesh is still lagging behind. *he difference between the world standard and the ractice in Bangladesh shows the lac&ing here and the scope for development. :hat is Corporate Social 3esponsibility "CS3%; /efinitely social responsibility includes the responsibility of people, groups, societies, and business organi'ations. .ere raises the +uestion- ;hy is there more interest in, and debate about, the social responsibility of business than about the social responsibility of other institutions8 !t is, of course, perfectly legitimate to raise the issue of the social responsibility of business. But we hear rather less about the social responsibility of, say, the churches, the media, trade unions, the professions, universities, or even the government. ;hen people collectively organi'e themselves in business organi'ations of one &ind or another, do those impersonal legal entities really ac+uire social responsibilities, which differ from those of other collective entities8 $any people are uneasy about the profit motive, suspecting that profits emerge only from e"ploitation. *hey fear that free enterprise encourages greed and selfishness. *hey are reluctant to accept the logic of Adam Smith0s famous theory of the invisible hand, which holds that business people promote the general interest more effectively by pursuing their own interests than by directly trying to Ado good0. ! suggest that this is why we hear little about the social responsibilities of the churches, charities, and so on. Business, in contrast, is assumed to have a problem about its social responsibilities because it is driven by profit#motives. Although no consensus about the definition of corporate social responsibility (<CSR=) e"ists at present, it may be said to encompass <a company0s commitment to operate in an economically and environmentally sustainable manner, while ac&nowledging the interests of a variety of sta&eholders. An organi'ation0s policy and continuous action in such areas as employee relations, diversity, community development, environment, international relationships, mar&etplace practices, fiscal responsibility and accountability Ball help determine its corporate social responsibilityC. < 1istory of Corporate Social 3esponsibility "CS3% Three waves of development 4. Community relations and contributions responsive to local pressures6needs and C,>6Senior $anagement D 41E2s F 41G2s @. =Corporate citizenship model> based on ethical issues "#S3% including =the new Corporate or strategic philanthropy> D 41H2s F 4112s I. =Strategic alliances> closely aligned with corporate ob(ectives D 4111 F beyond traditionally business operated e"clusively on the mantra of ma"imi'ing profits. As long as <the firm could sell its goodBsC or services at prices high enough to ma&e a profit and survive, then its social obligation was fulfilled.= .owever, shortly after large companies first emerged in the 4HG2s, debate +uic&ly emerged as to the appropriateness of their conduct. *he 41I2s, upon the heels of the %reat /epression, <signaled a transition from a primarily laisse'#faire economy with industrial power and might in control to a more mi"ed economy= with a more activist role by organi'ed labor and the government. *he Jew /eal had much to do with this transition. 9urther, the government0s creation of various socially oriented programs to ease the country0s economic woes resulted in more socially minded Americans. /ebates as to the appropriate role of business in society sharpened after :orld :ar II. Corporate philanthropy was well established by then, but the creation of public interest watchdogs and regulatory agencies such as the American Civil )iberties 3nion, the Sierra Club, and the 9ederal *rade Commission stimulated <new interest in business ethics, the standards by which to (udge corporate and individual behavior within the moral framewor& of business and society.= .oward Bowen0s Social Responsibilities of the businessman, often cited as the seminal te"t on corporate social responsibility by those in the field, was published in 415I. According to Bowen, the social responsibilities of a businessman consisted of obligations <to pursue those policies, ma&e those decisions, or to follow those lines of action which are desirable in terms of ob(ectives and values to society.= Soon afterwards, all three levels of government started enacting increasingly detailed legislation conducive to socially responsible behavior by businesses. 9urther, the four &ey regulatory agenciesK the ,+ual ,mployment >pportunity Commission, the >ccupational Safety and .ealth Administration, the ,nvironmental rotection Agency and the Consumer roduct Safety CommissionKwere established from 41E1 to 41G@. *hese developments created <a whole new world for managersL all of a sudden they are hit with four enormous regulatory agencies ma&ing lots and many demands for information and for corrective action.= A combination of factors propelled the sub(ect of socially responsible business to the frontlines during the 41H2s. 9irst, by way of local and national campaigns, the consumer rights movement heightened scrutiny of corporate practices. 9urther, the 3eagan.#ush 'ra, in which government restrictions on businesses were loosened, caused some business leaders to contrast <what appeared to be an alarming array of crumbling institutionsK including wea&ened federal and local government agencies once charged with protecting those institutionsKwith the wealth they and their shareholders had amassed over roughly the same period, and Bto recogni'eC an inherent imbalance.= 3ltimately, all of thisK government0s hands#off approach, business0s growing impact, the media0s and the public0s perception of government0s role, seemingly e"cessive profits,= along with the unparalleled increases in drug abuse, homelessness, and countless other social ills subtly shifted the public0s perception of business. Corporate World in Bangladesh As similar to any other third world developing nation, Bangladesh0s economic sector is still in the infant stage. !t is yet to develop fully. *here are very few worthwhile industries to be named. *he Bangladesh corporate world is at presents (ust trying to satisfy its local needs. ;hatever e"ports are there shares a little portion of the world mar&et. *he resources available are not enough to satisfy the local needs. .ence, companies still follow the classical model of economy, trying to ma"imi'e profits and targeting short run profits. As a result, there is hardly any concern about social responsibility. But now a day this scenario is changing. Jow many local companies are getting involved in CSR. !t is not long since foreign investors too& interest in investing in Bangladesh. Along with them, they brought the concept of social responsibility and public welfare. A list of the foreign investors in Bangladesh is as follows- )ever Brothers, British American *obacco, Standard Chartered Ban&, .SBC, Rec&itt Benc&iser and so on. *hey have contributed a lot in terms of social responsibility in Bangladesh. Along with them /ha&a Ban&, S+uare %roup, Ba"imco group, Acme group, Rahimafro', JB), those local companies have started to &eep pace in CSR sector. 9romoting CS3 in #angladesh: The role of the CS3 centre An increasing number of companies and businesses in Bangladesh are engaged in corporate social responsibility (CSR), the vast ma(ority being the multinational corporations ($JCs). Compared to these $JCs, only a handful of local companies in Bangladesh practice CSR. .owever, a large number of local companies are engaged in philanthropic activities, ranging from donations for religious activities, to social and community development, to setting up facilities that provide healthcare services. !n addition, the private sector plays a ma(or part in providing relief and rehabilitation in the aftermath of natural disasters. A number of local entrepreneurs have formed their own philanthropic foundations or trusts. ;ith more awareness of the philosophy and implementation of CSR, these local firms can find new business opportunities and e"pand their social impact through wider CSR adoption and practice. The CS3 Centre at #'I !n Bangladesh, the private sector often does not have the resources or the e"pertise necessary to act on CSR opportunities. Against this bac&drop, during various consultations with &ey sta&eholders, an e"pressed need was felt for an institution to champion CSR in Bangladesh. *he primary role of such an institution would be to engage in CSR advocacy and in the raising of awareness and understanding of CSR among sta&eholders. ;ith a vision to champion CSR, the CSR Centre at the #angladesh 'nterprise Institute "#'I% was established in Mune @225. As envisioned, it will be a private#sector led initiative, sustaining itself through various tools and services that it will provide. !t will wor& through networ&s and partnerships and provide a platform for dialogue for various sta&eholders to interact and e"change views and ideas. *he Centre would be both a service provider and a facilitator. *he first of the two overarching ob(ectives of the Centre is to establish and strengthen local institutional capacity to raise CSR awareness among the sta&eholders, and serve as a champion for CSR adoption and implementation. *he second ob(ective is to design and implement various CSR interventions that will lead to the development of a CSR service mar&et in Bangladesh. lanned activities of the Centre include formulation of voluntary principles and standards for industries that are both economically viable and operationally feasibleN development of tools and applications to evaluate, implement and monitor CSR adoption and practice thus enable businesses to be more responsive to its sta&eholdersN providing research on policies and procedures, strategies and standards, +uantifying the cost and benefits of CSR to develop a better understanding of CSR in the conte"t of BangladeshN and enabling informed public dialogue on all aspects of corporate social responsibility with focus on the notion of accountability to all sta&eholders,through research, conferences, publications and a website that will be continuously updated withimportant information on labour practices, sustainable development, regulation and public policy. Since its launch last year, the CSR Centre at B,! has organi'ed 4@ roundtables as part of a dialogue series on CSR in Action. >rgani'ed monthly, the roundtable serves as a platform for e"changes of views, hear the perspectives of &ey sta&eholders, and raise awareness on CSR practices and implementation challenges in Bangladesh. At each roundtable, three spea&ers representing a local company, a multinational company and a development agency are invited to present their e"perience of CSR practice in Bangladesh. *he B,! has been advocating CSR within the private sector, through these regular dialogues to highlight the e"isting CSR practices of local and multinational companies and J%>s in Bangladesh. *ill date, the roundtables have attracted over I22 participants who had the opportunity to listen to over I2 spea&ers from various J%>s, and corporate houses, both local and $JC. Besides organi'ing the roundtables, the Centre has developed case studies to showcase best CSR practices in socially responsible firms from various sectors and a short documentary to highlight these practices. !n addition, the Centre has developed an environmentally and Socially Responsible Business (,SRB) practices guideline for the ban&ing sector, *a&ing into account the relationships between ban&s and other financial institutions on one side, and private enterprises on the other. *he Centre will continue to develop products and services to serve as advocacy tools for sector#wide CSR adoption, which in turn will help foster an enabling environment for private sector growth and development. Development and Analysis of Corporate Social Responsibility 6evelopment and 0nalysis Business ethics is a form of the art of applied ethics that e"amines ethical principles and moral or ethical problems that can arise in a business environment. !n the increasingly conscience#focused mar&etplaces of the @4st century, the demand for more ethical business processes and actions (&nown as ethics) is increasing. Simultaneously, pressure is applied on industry to improve business ethics through new public initiatives and laws (e.g. higher 3O road ta" for higher#emission vehicles). Business ethics can be both a normative and a descriptive discipline. As a corporate practice and a career speciali'ation, the field is primarily normative. !n academia descriptive approaches are also ta&en. *he range and +uantity of business ethical issues reflects the degree to which business is perceived to be at odds with non#economic social values. .istorically, interest in business ethics accelerated dramatically during the 41H2s and 4112s, both within ma(or corporations and within academia. 9or e"ample, today most ma(or corporate websites lay emphasis on commitment to promoting non#economic social values under a variety of headings (e.g. ethics codes, social responsibility charters). !n some cases, corporations have redefined their core values in the light of business ethical considerations (e.g. B0s <beyond petroleum= environmental tilt). *he term CSR itself came in to common use in the early 41G2s although it was seldom abbreviated. *he term sta&eholder meaning those impacted by an organi'ation0s activities was used to describe corporate owners beyond shareholders from around 41H1. 0pproaches to CS3 Some commentators have identified a difference between the Continental ,uropean and *he Anglo#Sa"on approaches to CSR. An approach for CSR that is becoming more widely accepted is community#based development pro(ects, such as the Shell 9oundation0s involvement in the 9lower Palley, South Africa. .ere they have set up an ,arly )earning Centre to help educate the community0s children, as well as develop new s&ills for the adults. $ar&s and Spencer is also active in this community through the building of a trade networ& with the community D guaranteeing regular fair#trade purchases. An often alternative approach to this is the establishment of education facilities for adults, as well as .!P6A!/S education programs. *he ma(ority of these CSR pro(ects are established in Africa. A more common approach of CSR is through the giving of aid to local organi'ations and impoverished communities in developing countries. Some organi'ations do not li&e this approach as it does not help build on the s&ills of the local people, whereas community# based development generally leads to more sustainable development. The 3esponsibilities of Corporate Social 3esponsibility 9or CSR to be accepted by a conscientious business person, it should be framed in such a way that the entire range of business responsibilities is embraced. !t is suggested here that four &inds of social responsibilities constitute total CSR- economic, legal, ethical, and philanthropic. 9urthermore, these four categories or components of CSR might be depicted as a pyramid. *o be sure, all of these &inds of responsibilities have always e"isted to some e"tent. But it has only been in recent years that ethical and philanthropic functions have ta&en a significant place. ,ach of these four categories deserves closer consideration. Organization Overview 0n overview of 6haka #ank $imited "6#$% /ha&a Ban& )imited is the leading private sector ban& in Bangladesh offering full range of ersonal, Corporate, !nternational *rade, 9oreign ,"change, )ease 9inance and Capital $ar&et Services. /ha&a Ban& )imited is the preferred choice in ban&ing for friendly and personali'ed services, cutting edge technology, tailored solutions for business needs, global reach in trade and commerce and high yield on investments, assuring ,"cellence in Ban&ing Services. #ackground of 6haka #ank $imited /ha&a Ban& )imited is a scheduled ban& that was incorporated under the Companies Act 411:, started its operation on Muly 4115 with a target to play the vital role on the socio# economic development of the country. Aiming at offering commercial ban&ing service to the customers0 door around the country, the /ha&a Ban& limited established @2 branches up#to this year. *his organi'ation achieved customers0 confidence immediately after its establishment. ;ithin this short time the ban& has been successful in positioning itself as progressive and dynamic financial institution in the country. *his is now widely acclaimed by the business community, from small entrepreneur to big merchant and conglomerates, including top rated corporate and foreign investors, for modern and innovative ideas and financial solution. Capital #ase Authori'ed Capital- B/* 4222.22 million. aid up Capital - B/* 5I4.2G million (as on I4.4@.@22I) 6haka #ank appoints C3IS$ for Credit 3ating Credit Rating Agency of Bangladesh )imited (CRAB) has assigned =0(> rating in the )ong *erm and =ST?>rating in the Short *erm to the /ha&a Ban& )imited (/B)). Commercial Ban&s rated in this long#term category are ad(udged to be strong ban&s, characteri'ed by good financials, healthy and sustainable franchises, and a first rate# operating environment. *his level of rating indicates strong capacity for timely payment of financial commitments, with low li&eliness to be adversely affected by foreseeable events. Ban&s rated in this short# term category are characteri'ed with commendable position in terms of internal fund generation, access to alternative source of fund and moderate level of li+uidity 2ission Statement 2ission *o be the premier financial institution in the country providing high +uality products and services bac&ed by latest technology and a team of highly motivated personnel to deliver ,"cellence in Ban&ing. @ision At the /ha&a Ban&,, we draw our inspiration from the distant stars. >ur term is committed to assure a standard that ma&es every ban&ing transaction a pleasurable e"perience. >ur endeavor is to offer you ra'or sharp spar&le through accuracy, reliability, timely delivery, cutting edge technology, and tailored solution for business needs, global reach in trade and commerce and high yield on your investments. Aoal >ur people, products and processes are aligned to meet the demand of our discerning customers. >ur goal is to achieve a distinction li&e the luminaries the s&y. >ur prime ob(ective is to deliver a +uality that demonstrates a true reflection of our vision D ,"cellence in Ban&ing Slogan ,"cellence in Ban&ing 2otto *he Ban& will be a confluence of the following three interests- >f the Ban& - rofit $a"imi'ation and Sustained %rowth. >f the Customer - $a"imum Benefit and Satisfaction. >f the Society - $a"imi'ation of ;elfare. b!ectives Be one of the best ban&s of Bangladesh. Achieve e"cellence in customer service ne"t to none and superior to all competitors. Cater to all differentiated segments of Retail and ;holesale Customers. Be a high +uality distributor of product and services 3se state#of the art technology in all spheres of ban&ing. Strategies b!ectives of 6#$
*heir ob(ectives are to conduct transparent and high +uality business operation based on mar&et mechanism within the legal and social framewor&. Q *heir greatest concerns are to provide their customers continually efficient, innovative and high +uality products with e"cellent delivery. Q *heir motto is to generate profit with +ualitative business as a sustainable ever#growing organi'ation and enhance fair returns to the shareholders. Q ,stablish /B) as one of the top five successful rivate Commercial Ban&s by @242. Q Be committed to the community as a corporate citi'en and contribute towards the progress of the nation. Q Build a strong deposit base. Q !ntroduce new products F services and upgrade e"isting products F services at comparatively low cost in order to assure +uic& respond to the changing demands in the mar&et. Q romote the well being of the employees and raise their morale. Q Strengthen corporate identity and values. Q 9ulfillment of their responsibility to the government by paying ta"es and Abiding by other rules. Q Bring the entire system under a very advanced !* platform. Q Sociali'e and present the ban& to the community as a corporate partner. Q ,ncouraging and motivating the new entrepreneurs to establish industries and business in line with development of national economy. Q ,nhancing savings tendency of the people by offering attractive and lucrative new savings scheme. Q 9inancing the foreign trade of the country both ,"port and !mport. Q ,nhancing the mobili'ation of savings both from urban and rural area. Dhaka Bank anagement Overview ( 6epartments of 6#$ /ha&a Ban& maintains the (obs in a proper and organi'ed considering their interrelationship that are allocated in a particular department to control the system effectively. /ifferent departments of /B) are as follows- 1uman 3esources 6ivision /ha&a Ban& )imited recogni'es that a productive and motivated wor& force is a prere+uisite to leadership with its customers, its shareholders and in the mar&et it serves. /ha&a ban& treats every employee with dignity and respect in a supportive environment of trust and openness where people of different bac&grounds can reach their full potential. *he ban&0s human resources policy emphasi'e on providing (ob satisfaction, growth opportunities, and due recognition of superior performance. A good wor&ing environment reflects and promotes a high level of loyalty and commitment from the employees. Reali'ing this /ha&a Ban& limited has placed the utmost importance on continuous development of its human resources, identify the strength and wea&ness of the employee to assess the individual training needs, they are sent for training for self#development. *o orient, enhance the ban&ing &nowledge of the employees /ha&a Ban& *raining !nstitute (/B*!) organi'es both in#house and e"ternal training. *he ma(or responsibilities of .R are as follows- *he ma(or responsibilities of .R are as follows- Q ,mployee recruitment Q osting Q *ransfer Q !ncrement Q ,stablished yearly performance bonus Q rovident fund Q Confirmation Q *raining SWO! Analysis on Dhaka Bank Strengths Strong corporate identity According to the customers, /B) is the leading provider of financial services identity worldwide. ;ith its strong corporate image and identity, it has better positioned itself in the minds of the customers. *his image has helped /B) grab the personal ban&ing sector of Bangladesh very rapidly. Strong employee bonding and belongings /B) employees are one of the ma(or assets of the company. *he employees of /B) have a strong sense of commitment towards organi'ation and also feel proud and a sense of belonging towards /B). *he strong organi'ational culture of /B) is the main reason behind its strength. 'fficient 9erformance !t has been seen from customers0 opinion that /B) provides hassle#free customer services to its client comparing to other financial institutions of Bangladesh. ersonali'ed approach to the needs of customers is its motto. Boung enthusiastic workforce *he selection F recruitment of /B) emphasi'es on having the s&illed graduates F postgraduates who have little or no previous wor& e"perience. *he logic behind is that /B) wants to avoid the problem of Agarbage in F garbage out0. And this type of young F fresh wor&force stimulates the whole wor&ing environment of /B). 'mpowered :ork force *he human resource of /B) is e"tremely well thought F perfectly managed. As from the very first, the top management believed in empowering employees, where they refused to put their finger in every part of the pie. *his empowered environment ma&es /B) a better place for the employees. *he employees are not suffocated with authority but are able to grow as the organi'ation matures. 1ospitable :orking 'nvironment All office walls in /B) are only shoulder high partitions F there is no e"ecutive dining room. Any of the e"ecutives is li&ely to plop down at a table in its cafeteria F (oin in a lunch, chat with whoever is there. Strong +inancial 9osition !t has been seen that the net profit has been gradually rising over the years. 9urthermore, /B) is not (ust sitting on its previous year0s success, but also ta&ing initiatives to improve. :eaknesses 1igh charges of $CC resently /B) charges same rates for all types of import )6C. But for import )6C of e"ports#oriented industry, /B) should reduce the charge of )6C. As a result, e"porter will be benefited and the country will earn more foreign e"change. *he commission often even rises up to I2R. 6iscouraging small entrepreneurs /B) provides clean !mport )oan to most of its solvent clients. But they usually do not want to finance small entrepreneurs whose financial standing is not clean to them. 0bsence of strong marketing activities /B) currently don0t have any strong mar&eting activities through mass media e.g. *elevision. *P ads play vital role in awareness building. /B) has no such *P ad campaign. Although they do a lot of CSR activities compared to other ban&s. Dot enough innovative products !n order to be more competitive in the mar&et, /B) should come up with more new attractive and innovative products. *his is one of the wea&nesses that /B) is currently passing through but plans to get rid of by @242. 6iversification /B) can pursue a diversification strategy in e"panding its current line of business. *he management can consider options of starting merchant ban&ing or diversify it to leasing and insurance. As /B) is one of the leading providers of all financial services, in Bangladesh it can also offer these services. $ack of 9roper 2otivation *he salary at /B) is very decent, but it lac&s other sorts of motivation. !ncentives such as bonuses are given for ac+uiring a particular figure, but all in all these are the only motivational factors 1igh Cost for maintaining account E *he account maintenance cost for /B) is comparatively high. >ther ban&s very often highlight this. !n the long run, this might turn out to be a negative issue for /B) pportunities 6istinct operating procedures Repayment capacity as assessed by /B) of individual client helps to decide how much one can borrow. As the whole lending process is based on a client0s repayment capacity, the recovery rate of /B) is close to 422R. *his provides /B) financial stability F gears up /B) to be remaining in the business for the long run. Country wide network *he ultimate goal of /B) is to e"pand its operations to whole Bangladesh. Jurturing this type of vision F mission F to act as re+uired, will not only increase /B)0s profitability but also will secure its e"istence in the log run. '/perienced 2anagers >ne of the &ey opportunities for /B) is its efficient managers. /B) has employed e"perienced managers to facilitate its operation. *hese managers have already triggered the business for /B) as being new in the mar&et. 1uge 9opulation Bangladesh is a developing country to satisfy the needs of the huge population, a large amount of investment is re+uired. >n the other hand, building ,S areas and some %ovt. policies easing foreign investment in our country made it attractive to the foreigners to invest in our country. So, /B) has a large opportunity here. 'l 6orado 9rogram !t is software which enables customers to deposit and withdraw money from any ban& with the che+ue or deposit of any other ban&. Although a select few has implemented this program, this poses as an opportunity for /B) as the number of transactions would drastically increase. #igger 2arket Although the %/ per head decreased a bit in @221 from @22H, there is a huge untapped mar&et that re+uires loans and intends to deposit also. #0S'$ II !mplementation of BAS,) !! would definitely provide benefits. But it re+uires a lot of monitoring. 9or this /B) has formed B!3 (BAS,)) !! !mplementation 3nit). BAS,) !! is basically a framewor& set forth by Bangladesh Ban& to reduce credit ris&, operational ris& and mar&et ris&. *his would definitely aid /B) if it is stringently followed. Threats Fpcoming #anksC#ranches *he upcoming private, local, F multinational ban&s posse0s serious threats to the e"isting ban&ing networ& of /B)- it is e"pected that in the ne"t few years more commercial ban&s will emerge. !f that happens the intensity of competition will rise further and ban&s will have to develop strategies to compete against and win the battle of ban&s. Similar products are offered by other banks Jow#a#days different foreign and private ban&s are also offering similar type of products with an almost similar profit margin. So, if all competitors fight with the same weapon, the natural result is declining profit. 6efault $oans *he problem of non#performing loans or default loans is very minimum or insignificant. .owever, this problem may rise in the future thusN /B) has to remain vigilant about this problem so that proactive strategies are ta&en to minimi'e this problem. Industrial 6ownturn Bangladesh is economically and political unstable country. 9lood, draught, cyclone, and newly added terrorism have become an identity of our country. Along with inflation, unemployment also creates industry wide recession. *hese caused downward pressure on the capital demand for investment. +inancial Crisis Although people have recovered a bit from the shoc&, it may still pose as a threat. eople are still hesitant to ta&e loans or even deposit them. 6haka #ank receives CS3 0ward ?GGH /ha&a Ban& )imited, one of the leading private commercial ban&s of the country, has recently received *he Corporate Social Responsibility (CSR) Award @22E, for their active participation in the various philanthropic activities. !t may be noted that in line with motto of /ha&a Ban& )imited towards rendering the best and +uality services, /ha&a Ban& 9oundation was established on Jovember @:, @22@ to act as a solid foundation, which would act as a catalyst in creating awareness on development issues. $anaging /irector of /ha&a Ban& )imited $r. Shahed Joman receive the award from /r. Salehuddin Ahamed, %overnor, Bangladesh Ban&, at a function organi'ed by the Ban&ers0 9orum at the C!R/A Auditorium on Saturday April @E, @22H. Among /ha&a Ban&0s contribution towards corporate social responsibility few initiatives may be mentioned li&e donation to Asiatic Society of /ha&a, rime $inister0s Relief 9und F Chief Adviser0s Relief 9und to mitigate the sufferings of devastated flood affected people of the country, donated passenger lift to B!R/,$ .ospital at a cost of *& @.E million, donated two haemodialysis machines to B!R/,$ .ospital at cost of *& 4.H million, provided *& 42 million to Center for ;omen and Child .ealth .ospital as donation for setting up pathological laboratory and imaging units, sponsored a 42# bed ward of the proposed Ahsania $ission Cancer F %eneral .ospital by donating *a&a I million, !nstallation of /onation Bo"es for Ahsania $ission Cancer F %eneral .ospital, Relief >peration for 9lood Pictims at the cost of *& 5 $illion, Sponsor of Mubo $ela, Support Society for the ;elfare of Autistic Children (S;AC), e"tended support to the *sunami affected victims of Sri )an&a by donating a che+ue of 3ST 42,222, renovate the Auditorium of /ha&a Reporters 3nity, /onation of *& 5 $illion for Shaheed Siaur Rahman Shishu .ospital, Bogra, Sponsored 3ttara Sporting Club in remier /ivision Cric&et )eague and !nter Club *ennis *ournament in %ulshan Club, Sponsor of E th Bonsai ,"hibition F Competition, 9inancial Assistance for Chaayanaut Cultural Comple", Sponsor of @2 th Bangladesh !nternational Munior *ennis Championships, Sponsor of Bangladesh 3nder 41 Cric&et *eam, Sponsor of Chittagong Club Cric&et *eam in *wenty Cup Cric&et *ournament in Ool&ata, !ndia, Sponsor of Anti /rug /ebate 9estival, /istribution of ;inter Cloths by the ,mployees, Sponsorship for Bangladesh ,ye .ospital, Sponsorship for S.,!/ *rust, Sponsorship for BA/C School, /onation of *& 4.@ $illion to Center for ;omen F Child .ealth .ospital per year from @22E, /onation of *& 4.@ $illion to B!R/,$ .ospital per year from @22E, Assistance to ,ducational *rust of Scholastica, Sponsor /ha&a Ban& @4 st Bangladesh !nternational Munior *ennis Championship, Sponsor @ nd /ha&a Ban& !ndependence /ay !nter Club *ennis, Sponsor !CC ;orld Cup 9act Boo&, Sponsor of /ha&a Ban& Pictory /ay .oc&ey @22G, Sponsor of 4st /ha&a Ban& Cup %olf *ournament @22H, Sponsor of /ha&a Ban& Shaheed Smrity .oc&ey @22H, Sponsor of @@ nd Bangladesh !nternational Munior *ennis Championship in @22H and Sponsor of /ha&a Ban& !ndependence /ay .oc&ey *ournament @22H. 9rofit 2a/imization due to CS3 *hose organi'ations that practice CSR more obviously a significant change will be occurred on their profit on that organi'ation. /ha&a Ban&0s statement is given below# 9rom the above statement we have found that in @22H company0s ,S was I1.:@ but in @221 it is increased in :5.21 because of company0s efficient activities such as effective corporate decision, effective operation, cost minimi'ing, CSR practicing etc. So we can say in case of profit ma"imi'ing there is a significant impact of CSR. "indings and Recommendations +indings After analy'ing all the information, the following findings are originated- 4. /ha&a Ban& has been participating in our society by their CSR activities. @. /ha&a Ban& 9oundation donated *a&a 4.@ $illion to B!R/,$. 4. /ha&a Ban& 9oundation donated *a&a 4.@ $illion to C;C.. @. /ha&a Ban& participated in Career 9air I. /ha&a Ban& heavily serious for maintaining and representing the Bangladeshi culture (customs, values, belief etc). :. /ha&a Ban& arrange different traditional occasion such as shoto borsher %aan, little poet, ma&ing different monument, traditional fair etc. 4. /ha&a Ban& emphasises on basically public welfare such as donated money for &idney transplant, eye hospital etc. @. /ha&a Ban& largely emphasises on social culture and environment. I. /ha&a Ban& sometimes ta&ing steps for beautification in our city. :. /ha&a Ban& also aranging a concert party in our different occasion. 5. /ha&a Ban& resents 3mbrella to Bangladesh olice. E. /ha&a Ban& employees donate one day0s salary to help flood Pictims. G. /ha&a Ban& donates *& 52 )ac to Bangladesh Army Relief 9und. H. /ha&a Ban& donates *& 42 )ac to rime $inister0s Relief 9und for Cyclone Aila Pictim. 1. /ha&a Ban& welcomes Bangladesh .oc&ey *eam. 42. /ha&a Ban& ma"imi'ed their profit due to the CSR activity. 3ecommendations 9rom the analy'ing whole assignment we have understand that in modern age for long term survival every company should involve in CSR activities. !n where they are operating every company should liable for developing that country0s employment, infrastructure, culture etc. >ur selected Ban&0s are already involve those activities for long term survival as well as get them free from social liability. *o improve /ha&a Ban& Corporate Social Responsibility activity the following suggestions are to be followed- 4. /ha&a Ban& should increase their social activity. @. !f /ha&a Ban& increases number of employee they can provide more satisfactory service. I. /ha&a Ban& should increase the number of Cs with updated hardware and software. :. *o create better client the ban& should increase the social service activity. 5. ;henever people notice that the /ha&a Ban& contributes and participate all social welfare activities than people become impress on that /ha&a Ban& )td. As a result their profit obviously becomes increase because of (high share price, employee loyalty, %ovt. favor, social assistant etc). E. /ha&a Ban& )imited should participate in our local festivals. G. /ha&a Ban& can helps to our government for the development of roads and highways. H. /ha&a Ban& should ta&e some necessary steps for the tree plantation. 1. /ha&a Ban& can setup some primary school in the rural area. 42. /ha&a Ban& can sponsor in our local festivals. 44. /ha&a Ban& should providing support and assistance to the poor people who cannot wor& in the field. 4@. /ha&a Ban& can try &eeping our city neat and clean. 4I. !n our areas people sometimes arranging festivals where /ha&a Ban& should participate. 4:. 9inally, /ha&a Ban& can reducing unemployment problem by their social welfare activities. Conclusion !n 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 e"isting laws and inade+uate pressure from civil society and interest groups li&e Consumer 9orums. %lobally, as CSR practices are gradually being integrated into international business practices and hence is becoming one of the determining factors for mar&et accesses, it is becoming e+ually instrumental for local acceptability. A focus on CSR in Bangladesh would be useful, not only for improving corporate governance, labor rights, wor& place safety, fair treatment of wor&ers, community development and environment management, but also for industriali'ation and ensuring global mar&et access. Since, CSR entails wor&ing with sta&eholders it is important to wor& from within and diagnose the sta&eholdersN concerns so that CSR is truly embedded in the companies. By now, many CSR dimensions are practiced in Bangladesh. Because of global competitiveness and demand, the CSR practices and standards are being implemented in Bangladesh. But we are yet go a long way. *here are challenges to implement CSR properly in Bangladesh. 3ltimately CSR practices should be better practiced in Bangladesh for better and enhanced performance.