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Corporate Sustainability

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.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
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
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
$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
)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
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
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
;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 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
!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
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 $imited
/ha&a Ban& )imited is a scheduled ban& that was incorporated under the Companies Act
411:, started its operation on Muly 4115 with a target to play the vital role on the socio#
economic development of the country. Aiming at offering commercial ban&ing service to
the customers0 door around the country, the /ha&a Ban& limited established @2 branches
up#to this year. *his organi'ation achieved customers0 confidence immediately after its
;ithin this short time the ban& has been successful in positioning itself as progressive
and dynamic financial institution in the country. *his is now widely acclaimed by the
business community, from small entrepreneur to big merchant and conglomerates,
including top rated corporate and foreign investors, for modern and innovative ideas and
financial solution.
Capital #ase
Authori'ed Capital- B/* 4222.22 million.
aid up Capital - B/* 5I4.2G million (as on I4.4@.@22I)
6haka #ank appoints C3IS$ 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
*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.
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.
>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
,"cellence in Ban&ing
*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 - $a"imi'ation of ;elfare.
Be one of the best ban&s of Bangladesh.
Achieve e"cellence in customer service ne"t to none and superior to all competitors.
Cater to all differentiated segments of Retail and ;holesale Customers.
Be a high +uality distributor of product and services
3se state#of the art technology in all spheres of ban&ing.
Strategies b!ectives of 6#$

*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
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
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
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.
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.
/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)
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.
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
,"hibition F Competition, 9inancial Assistance for Chaayanaut Cultural Comple",
Sponsor of @2
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
Bangladesh !nternational Munior *ennis
Championship, Sponsor @
/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 @@
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
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
I. /ha&a Ban& sometimes ta&ing steps for beautification in our city.
:. /ha&a Ban& also aranging a concert party in our different
5. /ha&a Ban& resents 3mbrella to Bangladesh olice.
E. /ha&a Ban& employees donate one day0s salary to help flood
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.
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
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
4:. 9inally, /ha&a Ban& can reducing unemployment problem by their social welfare
!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.