CORPORATE SOCIAL RESPONSIBILI TY

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Report on
CSR OF ISLAMI BANK BANGLADESH LIMITED

Course Title: Business Communication

Submitted to:

Nigar Sultana Lecturer Department of Marketing Jahangirnagar University

Submitted by:

Mostafa Zaman Class Id: 1941 Department of Marketing 2nd Semester, 2nd Batch Jahangirnagar University

Date of Submission: 21th September ,2011

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Table of Content

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Content

Page no.

Executive Summary 1.0 Introduction 1.1 Origin of the report 1.2 Scope 1.3 Research Methodology 1.4 Limitations 1.5 Problems and purpose 2.0 CSR 2.1 Corporate Social Responsibility(CSR) of IBBL 2.2 Objectives 2.3 Target Area 2.4 Target Group 2.5 Deposit and Investment of IBBL is for social welfare 3.0 Responsibility towards shareholders 3.1 Compliance 3.2 Corporate governance 3.3 Relationship with the Shareholders 4.0 Responsibility towards employes 4.1 In-house CSR of the IBBL 5.0 Responsibility towards customers 6.0 Responsibility towards suppliers 7.0 Responsibility towards community 8.0 Health and Medicare Programs 8.1 Islami Bank Hospital 8.2 Organizing Health Camps 9.0 Islami Bank Medical College, Rajshahi 9.1 Scholarship Program 10.0 Humanitarian Help Programs 11.0 Bangladesh Sangskritic Kendra (Cultural Centre): 11.1 CSR in cricket world cup 2011 12.0 Responsibility towards environment 13.0 Current News 14.0 Awards & Achievements of IBBL 15.0 Bibliography

6 7 7 7 7 8 8 9 10 11 12 12 13 13 13 13 13 14 14 14 14 14 15 15 16 16 16 17 17 18 18 18 19 19

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List of illustration
Figure Figure 2.0 Figure 8.0 Figure 11.0
15 18

Page no.
10

Letter of Transmittal

September 21, 2011

Lecturer Department of Marketing Jahangirnagar University

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Subject: Submitting the report on CSR Of Islami Bank Bangladesh Limited

Dear Madam, I am submitting a well-structured and comprehensive report on CSR Of Islami Bank Bangladesh Limited on due time. Despite many constraints like scope and access to information, i have tried to create something satisfactory. I have tried to follow your guideline in every aspects of preparing this report. I hope this report will entice your kind appreciation.

Sincerely, Mostafa Zaman Roll- 1941 2nd Semester, 2nd Batch Department of Marketing Jahangirnagar University

Executive Summary

A corporation cannot run only for profit. It has to perform some social welfare since it needs social support. From this concept the idea of corporate social responsibility has been risen. Now days it has become a buzz word in corporate world. Many corporations are giving more emphasize on this sector. Islami bank Bangladesh limited is one of the leading commercial bank of Bangladesh.it is one of the largest sariah based bank that performs various kinds of corporate social responsibilities in

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various fields. Every year it spends a remarkable sum of money for CSR activities in Bangladesh. They contribute in social, environmental, national, educational, cultural, sports sectors with sponsorship. In this report we have tried to focus on these activitiesn of IBBL. We investigate different sector of IBBL CSR division and collect data that we include in this report. we think IBBL one of the best performers in this sector

1.0 Introduction
CSR is a vital part for all the companies and corporations.Islami bank Bangladesh ltd. always does a good number of CSR activities. It has so many projects for the poor people of our country who are deprived of their basic needs. It has taken some measures to help those people by providing and organising health camps and free medicine. It has some other projects to raise the environmental equality for our present as well as our next generation.

1.1 Origin of the Report

This report is generated under the academic supervision of our course teacher Nigar Sultana, Department of marketing, Jahangirnagar University, Savar, Dhaka. This report is prepared for our Business communication course. The topic is CSR OF Islami Bank Bangladesh Limited.

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1.2 Scope
In this report, at first I cover the preliminary concept of CSR. Then I go for its practical maintenance which is the main focus of this report. I explained the benefit of CSR OF Islami Bank Bangladesh Limited for Bangladesh.

1.3 Research Methodology

At first I prepared a questionnaire about the topic of CSR OF Islami Bank
Bangladesh Limited. I want to understand the marketers for taking business idea

about CSR through the questionnaire. I visited the website about CSR. This idea is now very important for the corporations. I visited the CSR branch of Islami Bank Bangladesh Limited. In this report I try to my level best to focus all the point of CSR. I have described all the point individually and collected data very carefully. For preparing this report I used Microsoft word and for presenting data very beautifully I used Microsoft excel.

1.4 Limitations
The major limitations encountered are: Lack of experience on preparing reports. Unavailability of the information due to their privacy. Electricity problem of our country.

1.5 Problems and purpose

Green marketing is a buzz ward in this new era of marketing. Modern business is now more inaugurated with this system. But green marketing is not so much spread in Bangladesh. Green marketing must be attributed in our world. But the main problem is the businessmen are not conscious about this business.

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Now, the purpose of the report is to run green marketing in Bangladesh and find out the proper solution for further improvement of the green marketing.

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2.0 CSR
Globally, the notion of Corporate Social Responsibility (CSR) is fast gaining acceptance as the contribution that businesses can and should make voluntarily towards environmentally sustainable and socially equitable development. Besides the usual financial reporting, non-financial or sustainability reporting is accordingly also fast gaining usage. Stated briefly, CSR is about (i) taking stock of the economic, social, and environmental impacts of a business, (ii) mitigating the negative impacts and bolstering the benign impacts, (iii) taking up action programs and community investments to reduce social exclusion and inequality and to address the key sustainable development challenges (meeting the needs of the present generation without impairing the ability of future generations to meet theirs is a generally accepted meaning of sustainable development ).

Figure 2.0 Because of their ethical and public interest dimensions, many of the desired social and environmental practices are compulsorily mandated by laws and regulations (e.g., safe and healthy work environment, equal opportunity and

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fair treatment in respect of gender and ethnicity in hiring and career advancement, avoidance of forced labor or child labor, and so forth). CSR programs and actions go beyond such mandatory compliances into voluntary

engagements to promote equitable, sustainable development. Besides the self-evident ethical case, a strong business case for CSR ( as investment in a strategic asset or distinctive capability, rather than an expense) is also getting clearer with developing practice; seen as benefiting a business by :
building reputation, brand value, customer loyalty, employee motivation and retention; mitigating risks in own operations and in assessing suppliers and clients; cutting down wastes (of energy, raw materials etc.), driving up efficiency; gaining new markets for products and services, in communities/ social groups benefited by the CSR actions. the

2.1 Corporate Social Responsibility(CSR) of IBBL

Islami Bank Bangladesh Limited is dedicated itself towards the welfare of the society. It has formed a separated foundation named Islami Bank Foundation with a fund of Taka 38.00 million in order to conduct social-welfare activities on a broad scale. Since then, Islami Bank Foundation is carrying the social welfare, education, health and medicare activities on behalf of Islami Bank Bangladesh Limited (IBBL).

2.2 Objectives
The aims and objectives of the Foundation are to serve distressed humanity, promote people oriented mass education, extend health and Medicare facilities to the poverty-stricken people in urban and rural areas, create facilities for productive self-employment and develop human resources for improving economic condition and quality of life, assist healthy growth of art, culture and literature, science and technology, sports, research and propagation of Islamic teachings. The Foundation has taken up a number of schemes covering the whole of Bangladesh. Islami Bank Foundation has some special projects for CSR activity,

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these are:

Islami Bank Hospital Islami Bank Medical College, Rajshahi Community Hospital

Monoram: Islami Bank Crafts & Fashion Service Centre Islami Bank Institute of Technology Islami Bank International School and College Islami Bank Physiotherapy Rehabilitation Centre and Disabled

Centre for Development Dialogue Bangladesh Centre) Sangskritic Kendra (Cultural

2.3 Target Area

Initially the Scheme was started as a Pilot Scheme in the rural areas of

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certain districts under the direct supervision of the nearby Branches of the Islami Bank Bangladesh Limited. The Scheme is being gradually extended to all the Districts through different Branches of the Bank.

2.4 Target Group

Able bodied & industrious rural poor having age between 18 to 50 years and the permanent resident of the project area. Farmers having Sharecroppers. cultivable land maximum 0.50 acres and the

Persons engaged in very small off-farm activities in the rural areas. Destitute women and distressed people. Persons having liabilities with other banks/institutions are not eligible for investment under the Scheme.

2.5 Deposit and Investment of IBBL is for social welfare

Islami Bank Bangladesh Limited (IBBL) excels as a dedicated embodiment of socio-economic welfare, not the tool of machination of interest. Islami banking itself is a manifestation of welfare both for its partners and the society as it is born to serve. Its commitment is endowed upon the enter society regardless of caste, creed and any other denomination.

3.0 RESPONSIBILITY SHAREHOLDERS

TOWARDS

IBBL has been discharging its responsibility to safeguard the interest of the shareholders in line with the objectives of the Bank by complying Shariah & law of the land strictly, building a strong & efficient management and enhancing shareholders value & financial performance.

3.1 Compliance
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IBBL has been operated as the best Shariah compliant Bank in the country. Besides, the Bank has been paying huge amount of tax to the national exchequer every year. Last year, the Bank paid tax to the exchequer for an amount of Tk. 3,245.11 million and became the second highest corporate tax payer of the country.

3.2 Corporate governance

The Bank is committed to ensure the highest standard of corporate governance and effective application of its principles as well as upholding the best banking practices as a part of discharging its responsibilities to safeguard the interest of shareholders.

3.3 Relationship with the Shareholders

Shareholders are communicated the comprehensive details about the peformance, financial results and important ativities of the Bank through Annual Report. Information regarding different activities and performance of the Bank is also availavle in the Banks website. Various announcements on price sensitive information and other discloseures are made through newspaper, website and media. Shareholders are also encouraged to evaluate Banks performance and to give their valuable suggestions in the AGMs. Members of the Board of Diectors are actively involved with various programs
of the Bank.

4.0 RESPONSIBILITY TOWARDS EMPLOYEES

IBBL has succeeded to develop a group of highly motivated professionals, working for the benefit of the people, based upon accountability, transparency and integrity. The Bank always aware of continuous development of knowledge, competencies and attitude of the employees; comfortable and modern working environment as well as justified and competitive compensation packages for them.

4.1 In-house CSR of the IBBL

The in house CSR is well maintained through indiscriminate dispensation; provisions of modern, healthy and safe work place; developing employees competence and skill; widening scope of learning imparting training, taking care of environment; encouraging employees aesthetic talent; industrycompatible wage structure etc.

5.0 RESPONSOBILITY TOWARDS CUSTOMERS

Customers are the core of Banks existence. To encourage people, from all economic categories for becoming banks customer, to ensure improved customer service, to help them run business efficiently, to encourage them in following Islamic principles in their business entities and to make them real partners of the Bank, the Bank takes various initiatives:

6.0 RESPONSIBILITY TOWARDS SUPPLIERS

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Suppliers play a fundamental role in the Banks micro environment. As an essential component of overall business function, suppliers regarded as inclusive partners. The Bank develops its relationships with suppliers organizations on the basis of value and trust.

7.0 RESPONSIBILITY TOWARDS COMMUNITY

Present investment of the Bank in the industrial sector is Tk. 13,762.80 million which is about 50% of the total investment of the Bank. At present about 10,000 employees are working in IBBL and millions in its financed projects. Banks strategy towards discharging community responsibility focuses on: (1) Health, (2) Education, (3) Sports, arts & culture, (4) Women empowerment and (5) Humanitarian Assistance.

8.0 Health and Medicare Programs

The Foundation has, therefore, taken up the following Programs to extend health, Medicare and sanitation facilities to the urban and rural areas: Establishment of Medical Centers Supporting charitable dispensaries Lump-sum help for medical treatment Tube well Installation Sanitary Latrine construction etc.

8.1 Islami Bank Hospital

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Figure 8.0
With the objective of providing low-cost curative services to the less affluent segment of the society, the Foundation has so far set up Hospitals at three Divisional Headquarters in Dhaka, Rajshahi and Khulna. Services of eminent general practitioners and specialists in various fields of treatment like Medicine, Surgery, Gynae, Pediatric, E.N.T. Urology, Neuro-surgery, Skin, Orthopedic etc. are harnessed in these hospitals.

8.2 Organizing Health Camps

A significant number of people, especially the rural poor, suffer from various eye diseases; but due to non-availability of eye specialists in the rural areas as well as financial inability, the patients can not get proper treatment.. Last year, 11 Eye Camps were organised providing services to 660 patients.

9.0

Islami

Bank

Medical

College,

Rajshahi
The number of Doctors in Bangladesh is not sufficient compared to the total population. The Govt. Medical Colleges are also a very few and a good number of meritorious students cannot get admitted into the Govt. Medical Colleges due to insufficient number of seat capacities. Though some private medical colleges have been established mostly in and around the capital but the tution fees and other charges are so high that the students of poor and middle class families can not afford it. Keeping in view the objective to enable the students of poor and middle class families to be a doctor, Islami Bank Foundation has established a medical college in Rajsahi, a metropolitan city of northern part of the country. In the meantime, the classes of the students of 1st 2nd and 3rd batch are going in full swing. The construction work of the hospital building at Naodapra, the own site of the college, is also going on.

9.1 Scholarship Program

Islami Bank Foundation (IBF) provides scholarship and lump-sum financial assistance for education purpose to the meritorious but poor students under its Scholarship Program. Since inception of the Program 6459 students received scholarship/grant for Tk. 60.14 million till 2010. Apart from IBF, the bank has been providing scholarship to the very poor students secured GPA 5 in SSC & HSC examinations from the year 2010 under its direct Scholarship

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program. 200 students (100 boys & 100 girls) are enjoying Higher Secondary Scholarship @ Tk. 1000/- per month for 2 years and another 200 students (100 boys & 100 girls) are enjoying Graduation Level Scholarship @ Tk. 1500/- per month for 4 years.

10.0 Humanitarian Help Programs

These program aims at providing help to distressed people who are unable to meet their basic needs like food, clothing, shelter and medicine. The old widow and children without guardians get preference. Besides, the program extends assistance to orphanages, provide fund for the marriage of poor girls, assist indebted people, help distressed wayfarers etc.

11.0

Bangladesh

Sangskritic

Kendra

(Cultural Centre)
Culture is very important leading factor of a nation. A nation is considered developed which is culturally advanced. Now-a-days, no state is conquered through applying physical force but through ideas, thinking, norms, belief, etc. Like many other Muslim countries, the elite, affluent section and new generation of Bangladesh are presently motivated by western culture which is very harmful for the nation. Islami Bank Foundation has, therefore, established Bangladesh Sangskritic Kendra ( Cultural Centre ) in Dhaka for upholding and promoting national culture and heritage of the country. Islami Bank Foundation, through its various welfare activities, has been working to serve the destitute and distressed people as well as for the socioeconomic development of the country.

Islami Bank Foundation wants to expand the on-going projects throughout the country and also wishes to undertake new ones for the overall development of the country. The Foundation is looking forward for sincere assistance and co-operation from philanthropic persons and institutions from home and abroad to materialize its noble and cherished objectives. Zakat and Donations may be credited to Islami Bank Foundation Account Nos. 02101005 (Zakat) and 02101014 (Donation) maintained with lslami Bank Bangladesh Ltd., Head Office Complex Branch, 40, Dilkusha Commercial Area, Dhaka-1000, Bangladesh.

11.1 CSR in cricket world cup 2011

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figu
Figure 11.0 Bangladesh was one of the co-hosts of ICC cricket world cup 2011 and IBBL being one of the leading nation building corporation, considers it as the prestigious event to extent its all out cooperation to make the operation historic success by being a part of this glorious and majestic event that echoes with all the million people of our great nation. Considering the above, the historic ICC cricket world cup 2011 euphoria colossally beholds the beaming galore of Islami bank through sponsorship of Dhaka City beautification with BCB.

12.0 RESPONSIBILITY TOWARDS ENVIRONMENT

The main theme of environmental responsibility is to create No Harm to the environment in view to remain it healthy for future generation. Recently, the issue of climatic change is being addressed seriously all over the world. It is identified that Bangladesh being a southern delta is under serious threat of natural disaster.

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13.0 Current News

Islami Bank Foundation Rehabilitation Program Sanctioned Tk.6 lac for Relief and

Science Fair and Prize Giving Ceremony Certificate awarding ceremony

14.0 Awards & Achievements of IBBL

Islamic Bank Bangladesh Limited (IBBL) is awarded The Best Bank of Bangladesh for the year 1999, 2000, 2004, 2005 to 2010 and The Best Islamic Financial Institution in 2008, 2009 by The Global Finance, a reputed London based quarterly magazine.

15.0 Bibliography
www.islamibankbd.com www.google.com Islami bank CSR department 63, dilkusha c/a, Dhaka.

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