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Corporate Social Responsibility of Banglalink Course Princple of Management(141)

Prepared for
RAHMA AKHTER Adjunct Faculty Department Of Business Administration University of Information Technology and Sciences

Prepared By Shahriar Ahmed Jewel Jakia Sultana

Kaniz Fatema Fatema-tuz-Zohora Mehajabin Sadia

Date of submission: December 15,2010

Letter of Transmittal
December 15,2010 RAHMA AKHTER Adjunct Faculty Department Of Business Administration University of Information Technology and Sciences Subject: Submission of term paper Dear Sir, With due respect it is my pleasure to present the term paper entitled Corporate Social Responsibility. While preparing the report I have tried my level best to focus closely on the topic and try to focus most complete and updated information available. I strongly believe that it will provide a clear idea about Corporate Social Responsibility of Banglalink. To prepare this report, we have given best effort to accumulate needed information. We will be available to answer any question for clarification. Thank you for your sincere support.

Sincerely Yours,

Shahriar Ahmed Jewel Jakia Sultana Kaniz Fate Fatema-tuz-Zohora Mehajabin Sadia

#10310195 #10310009 #09510411 #10 310127 #10310262

Acknowledgement

It is our concession to thank RAHMA AKHTER, lecturer of Department of Business Administration, University of Information Technology and Sciences for rendering us his expertise through this assignment.

Practical knowledge is fundamental for the application of theoretical intelligence. Being this in mind the course teacher assigned to prepare this assignment to the students of the course Principle of Management, course #141. We cordially thank our honorable teacher to

provide us the opportunity to apply class room learning in practice. The assignment bridges the gap between them.

We also covey our deep gratitude to those people who have help us to collect this information and supported us.

Executive Summary
Corporate social responsibility is an important task for each and every corporate individual. Without doing CSR any company cannot gain long term benefit. Its a core step of earning long term profit. In our term paper we give our best effort to present the importance of CSR. As we talk about the company Banglalink, We focus on their CSR very clearly so that people can easily understand about the core benefits of CSR. Beside this we also mention the pre and post effect of doing CSR. We want that every company of our country gets influenced by our term paper and do CSR. If they motivated by our term paper and do CSR we think our term paper may gain the success. So we also mention about the award that Banglalink has earned by doing CSR.

Table of
TOPIC NO. TITLE
Introduction What is CSR Why Business People Do CSR Why Banglalink Do CSR About Banglalink Company Profile CSR of Banglalink Banglalink launches agrisolutions service banglalink special services at Hajj Camp Banglalink launches 5-year beautification scheme at Hajrat Shahjalal International Airport HSIA beautification, development project opens Banglalink doubles subscriber base Banglalink sponsors Rajshahi citys beautification CSR: Ramadan style References

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Content Introduction
Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large says Richard Watts Corporate social responsibility is the voluntary assumption by companies of responsibilities beyond purely economic and legal responsibilities. Corporate responsibility is a vital issue in the contemporary debate. Much of its currency comes from the scale and influence of the modern corporation. Some ventures are larger than many nation states. Their influence extends across the globe. Their actions can determine the prosperity of communities and the health of environments. In recent years there has been increased pressure on many companies and managers to acknowledge their responsibility to society, and act in a way that benefits society overall. Big business has been criticized as being overly concerned with profit and failing to take its broader responsibility.

Corporate social responsibility (CSR)

Corporate social responsibility (CSR, also called corporate responsibility, corporate citizenship, and responsible business) 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 stakeholders, as well as the environment. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large. The practice of CSR is subject to much debate and criticism. Proponents argue that there is a strong business case for CSR, in that corporations benefit in multiple ways by operating with a perspective broader and longer than their own immediate, short-term profits. Critics argue that CSR distracts from the fundamental economic role of businesses; others argue that it is nothing more than superficial window-dressing; still others argue that it is an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations.

Why People Do CSR?

Development
Business ethics is a form of the art of applied ethics that examines ethical principles and moral or ethical problems that can arise in a business environment. Business ethics can be both a normative and a descriptive discipline. As a corporate practice and a career specialization, the field is primarily normative. In academia, descriptive approaches are also taken. The range and quantity of business ethical issues reflects the degree to which business is perceived to be at odds with non-economic social values. Historically, interest in business ethics accelerated dramatically during the 1980s and 1990s, both within major corporations and within academia.

Approaches
Some commentators have identified a difference between the Continental European and the Anglo-Saxon

approaches to CSR. And even within Europe the discussion about CSR is very heterogeneous. An approach for CSR that is becoming more widely accepted is community-based development projects, such as the Shell Foundation's involvement in the Flower Valley, South Africa. Here they have set up an Early Learning Centre to help educate the community's children, as well as develop new skills for the adults. Marks and Spencer is also active in this community through the building of a trade network with the community - guaranteeing regular fair-trade purchases. Often alternative approaches to this are the establishment of education facilities for adults, as well as HIV/AIDS education programmers. The majority of these CSR projects are established in Africa.

Business benefits
The scale and nature of the benefits of CSR for an organization can vary depending on the nature of the enterprise, and are difficult to quantify, though there is a large body of literature exhorting business to adopt measures beyond financial ones (e.g., Deming's Fourteen Points, balanced scorecards). Orlizty, Schmidt, and Rynes found a correlation between social/environmental performance and financial performance. However, businesses may not be looking at short-run financial returns when developing their CSR strategy.

Human resources

A CSR programmed can be seen as an aid to recruitment and retention, particularly within the competitive graduate student market. Potential recruits often ask about a firm's CSR policy during an interview, and having a comprehensive policy can give an advantage

Risk management
Managing risk is a central part of many corporate strategies. Reputations that take decades to build up can be ruined in hours through incidents such as corruption scandals or environmental accidents. These events can also draw unwanted attention from regulators, courts, governments and media. Building a genuine culture of 'doing the right thing' within a corporation can offset these risks.

Brand differentiation
In crowded marketplaces, companies strive for a unique selling proposition which can separate them from the competition in the minds of consumers. CSR can play a role in building customer loyalty based on distinctive ethical values. Several major brands, such as The Cooperative Group and The Body Shop are built on ethical values. Business service organizations can benefit too from building a reputation for integrity and best practice.

License to operate
Corporations are keen to avoid interference in their business through taxation or regulations. By taking substantive voluntary steps, they can persuade

governments and the wider public that they are taking issues such as health and safety, diversity or the environment seriously, and so avoid intervention. This also applies to firms seeking to justify eye-catching profits and high levels of boardroom pay. Those operating away from their home country can make sure they stay welcome by being good corporate citizens with respect to labor standards and impacts on the environment

Critical analysis
CSR is entwined in the strategic planning process of many multinational organizations. The reasons or drive behind social responsibility towards human and environmental responsibility whether driven by ulterior motives, enlightened self-interest, or interests beyond the enterprise, is subject to much debate and criticism. Some critics argue that corporations are fundamentally entities responsible for generating a product and/or service to gain profits to satisfy shareholders. Milton Friedman and others argue that there is no place for social responsibility as a business function. These critics point to the rule of corporate law that prohibits a corporation's directors from any activity that would reduce profits. Other critics argue that the practice cherry-picks the good activities a company is involved with and ignores the others, thus 'green washing' their image as a socially or environmentally responsible company.

Why Banglalink Do CSR

Banglalink do CSR because the corporations put in place social projects is for the commercial benefit they see in raising their reputation with the public or with government. They suggest a number of reasons why selfinterested corporations, solely seeking to maximize profits, are unable to advance the interests of society as a whole. They point to examples where companies have spent a lot of time promoting CSR policies and commitment to Sustainable Development on the one hand, whilst damaging revelations about business practices emerge on the other. The rise in popularity of ethical consumerism over the last two decades can be linked to the rise of CSR. As global population increases, so does the pressure on limited natural resources required to meet rising consumer demand Industrialization in many developing countries is booming as a result of technology and globalization. Consumers are becoming more aware of the environmental and social implications of their day-to-day consumer decisions and are beginning to make purchasing decisions related to their environmental and ethical concerns. However, this practice is far from consistent or universal.

About Banglalink
Banglalink - making a difference
When banglalink entered the Bangladesh telecom industry in February 2005, the scenario changed overnight with mobile telephony becoming an extremely useful and affordable communication tool for people across all segments. Banglalink - making a difference.

Who is Behind Us
ORASCOM TELECOM is one of the most dynamic telecommunications powerhouses in the world. Orascom is based in Egypt and has operations in 7 countries worldwide. Established in 1998, it is today the largest capitalized company on the Cairo & Alexandria Stock Exchanges with over 79 million subscribers worldwide. It has grown to be one of the largest and most diversified GSM network operators in the Middle East, Africa and Asia.

Company Profile
Management Team
Managing Director and Chief Executive Officer Chief Financial Officer Chief Technical Officer (Incharge) Chief Commercial Officer Ahmed Abou Doma Mohamed Hassan Osman Ahmed Fady Asher Yaqub Khan Arif Mehmood Malik Muhammad Arshad Tarek Beram

Sales Director

Customer Care Director Human Resources & Administration Director Head of PMO & Supply Chain Regulatory Affairs Sr. Manager

Abdus Saboor

Zakiul Islam

Infrastructure & Operations Nizar El-Assad Sr. Manager

CSR of Banglalink

Banglalink launches agrisolutions service

Mobile phone operator Banglalink has recently launched a new service Banglalink jigyasha 7676 which will provide suggestions and answers to any queries related to agriculture, vegetable and fruit farming, poultry, livestock, fisheries etc, a news release said on Tuesday. The service will give people with easy access to advice and solutions to agriculture-related problems. To avail the service a Banglalink customer needs to dial 7676, talk and get experts advice on the problem. The promotional charge for the service is Tk 2 per minute

banglalink special services at Hajj Camp

Like the previous year, banglalink continues its CSR activities for the Hajj pilgrims this year as well. Last year banglalink provided pure drinking water at the Hajj Camp and the Hajrat Shahjalal International Airport. This year, banglalink has necessary equipment for providing some special services at Hajj Camp to Adviser to added some extra facilities, the Ministry of Religious Affairs Major General (retd) ASM Matiur Rahman in the such as pure drinking water, city on Friday. necessary medicines, free phone kiosks and buses for shuttle services (airport drop service for the Hajjis), says a press release. In this regard, Shehzad S Hossain, assistant manager, PR and Communications, Marketing, banglalink, handed over the necessary equipment to Adviser to the Ministry of Religious Affairs Major General (retd) ASM Matiur Rahman in the city on Friday.
Shehzad S Hossain of banglalink hands over

Banglalink launches 5-year beautification scheme at Hajrat Shahjalal International Airport

Banglalink, a cell phone operator, has embarked on a five-year beautification and development programmed inside the Hajrat Shahjala International Airport (HSIA) to make the airport a world class one. As the HSIA seems to have lost its attraction in recent years and its external beauty is faded away, the Civil Aviation Authority of Bangladesh (CAAB) recently took initiatives aiming to make the airport a truly international airport, and to create a quality environment for the passengers. Banglalink has volunteered to support this initiative as soon as the CAAB takes up the project. The CAAB has accepted the Banglalink's proposal and the mobile phone operating company has already started its activities in changing the face of HSIA in a very short time. Under the project, Banglalink has already set up several phone booths, mobile charging points, a fountain and several tapestries inside the SHIA. State Minister for Civil Aviation and Tourism Mirza Fakhrul

Islam Alamgir formally inaugurated the programmed on the SHIA premises yesterday. Besides 15 phone booths and 15 mobile charging points, various types of tapestries will be set up inside the airport.

State Minister for Civil Aviation and Tourism Mirza Fakhrul Islam Alamgir (2-L) receives passenger trolleys from Banglalink CEO Rashid Khan (L) at the Hajrat Shahjalal International Airport yesterday. The cell phone operator has embarked on a five-year beautification and development programmed at the airport Not only these phones will be used for enhancing the customers' experience of the airport but also the revenue earned from these will be shared with the CAAB, Banglalink officials said, adding that the company also offered some 1500 passenger trolleys to the CAAB. They said they will also place some pieces of sculptures inside the airport. Banglalink will spend around Tk 15 crore for the five-year project. "Banglalink strongly believes that communication facilities also

6 contribute to the overall socio-economic development of the country," said Rashid Khan, chief executive officer of Banglalink, addressing the inaugural programme. "We will also take up similar beautification and development projects at other airports of the country," he said. Speaking at the function, the state minister said the Banglalink's beautification programmed will help the CAAB in improving facilities at the HSIA for turning it into a smarter airport of international standard.

HSIA beautification,development project opens

State Minister for Civil Aviation and Tourism Mirza Fakhrul Islam Alamgir Tuesday inaugurated the beautification and development project at Hajrat Shahjalal International Airport (HSIA) premises, jointly undertaken by Banglalink and the Civil Aviation Authority. Under the project, Banglalink has imported 1,000 trolleys from Germany for carrying luggage of passengers and established a glass-fountain, 15 phone booths and 15 mobile charging points. It has also taken initiative to supply boarding bridges at the airport. Besides, Banglalink will spend Tk 150 million (15 crore) in next five years for HSIA's beautification and development. Ministry of Civil Aviation and Tourism Secretary (in-charge) Md Shahid Alam, Banglalink Chief Executive Officer (CEO) Rashid Khan and Air Commodore Sakeb Iqbal Khan Majlis were also present on the occasion as distinguished guests.

6 The state minister in his speech on the occasion said, efforts like this would help develop the country's image to the foreign visitors and attract them to visit the country. Besides, the facilities of the passengers at HSIA would also increase, he added. The Banglalink CEO said, his company is frequently engaged in the country's socio-economic development as part of its corporate social responsibility (CSR). Citing the project as the beginning, he said Banglalink will gradually implement the same type of project to the country's other airports. The project would contribute to transform the HSIA into a truly international airport, and also create a suitable environment for the valued passengers during their stay here, said a high official of the Biman.

Banglalink doubles subscriber base

Banglalink, the country's leading mobile phone operator, doubled its subscriber base during the year 2007. The company disclosed this at a press conference held at a city hotel Wednesday. Banglalink, a subsidiary of Orascom Telecom Holding (OTH), ended the year with almost 7.1 million customers, a rise of almost 116 per cent from 2006 when the number stood at around 3.3 million. At the same time, the mobile phone operator doubled its revenue income compared to the previous year, as it rose from Tk 6.55 billion during 2006 to over Tk 13.40 billion during 2007. "Banglalink ended the year 2007 with a 20.6 per cent market share while capturing the second position based on the numbers reported by Bang-ladesh Telecommunication Regulatory Commission (BTRC)", Chief Executive Officer (CEO) and Managing Director of the company Rashid Khan said. "Throughout the year, the company had focused on investing heavily for enhancing service quality both in terms of network and customer service as it maintained its position as the fastest growing mobile operator in the country," he said further. "An investment of over Tk 24.50 billion was made to enhance the network quality," Rashid informed. "At the same time, almost 500 Banglalink service points were set up at the regional level to provide easy access of customers to necessary services," he added. Now the work has begun to expand our services to remote rural areas under the slogan of 'Return Home

with Banglalink' and so far, we have received quite positive responses," he affirmed. Commenting on the growth potential of the market, he said, "The market is expected to grow to over 50 million mobile connections by the end of 2008". Later, he also dwelt on different exclusive services and packages offered by the company and highlighted different CSR activities of the organisation during the flood and cyclone Sidr that hit the country in 2007.

Banglalink sponsors Rajshahi citys beautification

Banglalink CEO Rashid Khan

inauguratingthe launching

ceremony of the Rajshahi city beautification programme at the city's Shaheb Bazar Alupotty More Tuesday.

Banglalink recently sponsored the beautification programme of Rajshahi city.

Banglalink CEO Rashid Khan inaugurated the launching ceremony of the programmed at the city's Shaheb Bazar Alupotty More Tuesday. A number of distinguished guests, journalists of different print and electronic media, and Banglalink officials were also present on the occasion. The inauguration programmed was followed by a press meet at Rajshahi Tennis Complex.

CSR: Ramadan style

The Iftar time in mind, Saidur Rahman was rushing home from his Motijheel office. The banker had no doubts about reaching his family before Iftar as he had more than two hours to spare on the traffic-clogged Dhaka streets. Underprivileged children take their Iftar at an orphanage. But an apparently never-ending gridlock stuck his bus at Farmgate on his way to Mirpur.

Mobile phone operator Banglalink has come up with a CSR initiative for the month of Ramadan to offer Iftar to the orphans, and people going home right before or during the Iftar time. Banglalink

He was feeling helpless, with his family members repeatedly calling him if he would join them in Iftar. Sensing no such possibility, Rahman told them: "No". Two minutes were left for breaking the fast. Suddenly some people representing a mobile phone company got onto the bus and started distributing bottled water and dates among the passengers. This was the way Banglalink opted for getting done its corporate social responsibility (CSR) during the month of Ramadan. The Egyptian company launched the initiative on the first day of Ramadan with the aim to serve 90,000 people on the streets with Iftar items and 9,000 orphans of 45 orphanages with Iftar and dinner across the country during the month. "It's totally unexpected. Many thanks to the company," the banker said. Everyday five teams having 10 members each offer Iftar items at different points of Dhaka, Khulna and Chittagong. For the orphans an experienced cook makes the dinner on the orphanage premises. "Banglalink initiative made happy more than 100 students of my orphanage," said Asmot Jahan, deputy superintendent of a government-run orphanage in Mymensingh.

"There was a general expectation among the orphans that they will get a feast during Ramadan from the authorities. But the sudden arrangement by the company came as a surprise gift to them," she said. The company offered dinner to the girls at the orphanage on September 8. "The dates and water distribution effort is unique and practical too because when someone is going home right before or during Iftar, very few options are available on the roads. Our little effort will go a long way in making that person smile," said Ahmed Abou Doma, chief executive officer of Banglalink. The programmes in the orphanages are something very close to our hearts as these children deserve the very best and more so during the month of holy Ramadan, he added. In the six operators' market, Banglalink is now the second largest with 11.27 million customers by the end of July 2009. The total mobile subscribers are 47.97 million in the country. Although the company has established a strong foothold in the market after its inception in 2005, it is yet to break even.

References:
www.zimbio.com www.dailystar.net

www.financeialexpress-bd.com www.banglalink.bdjobs-server.com www.skyscrapercity.com www.bangladesheconomy.wordexpress.com www.linkedin.com www.banglalinkgsm.com