CHAPTER- 01

INTRODUCTION
1.1 Introduction:
The study focus is the “Corporate Social Responsibilities (CSR) Practice of Commercial
Banks in Bangladesh”. The corporate social responsibility (CSR) is a most important issue in
the today’s business areas as well as present society. Corporate social responsibility (CSR) is
responsible for business contribution to sustainable development and they participate in
different sectors those are human resources, relationship with clients, suppliers and
stakeholders. They also focus on corporate governance environment and contribution to
community and society. The objective of these report is to see what are the banks in
Bangladesh doing perform in favor in CSR practice and how much they spending on CSR.

In Bangladesh there have some specialized bank and state owned commercial bank,
commercial bank, foreign commercial bank and some non-banking financial institution. Most
of the bank have different department for CSR activities and which have not they are also
perform some CSR activities.
1.2 Rationale of the Study:
Business is an inseparable and embedded part of the society. Besides conducting business
activities and pursuing economic gains, business houses also have several other roles and
responsibilities towards society such as the social and environmental responsibilities and
business contributions that would benefit the society at large. In the modern era commercial
banks are not only engaging in profit making but also paying attention to their social
responsibilities. This particular report is prepared with a view to providing an overall
overview of CSR activities of commercial banks and its practicing areas. Besides it will help
us along with any reader of this particular framework to learn about corporate social
responsibilities, its regulatory framework and lastly advantages and utilities in a brief manner
at least.
1.3 Objective of the Study:
The primary objective of this project report is to use the theoretical concepts gained in the
classroom situations with the real life scenarios. This is also a partial requirement of the
MBA program. This objective is basically met by remaining attached with a reputed
organization and by gaining some real life experiences, so that it adds value to the knowledge
base of me. In case of this Project report, the objectives are-

Page 1 of 40
1.3.1 General Objective:
The general objective of this thesis is to analyze the CSR activities of Commercial Banks in
Bangladesh.
1.3.2 Specific Objective:
 To find the general facets of CSR practices of National Bank Limited, Export Import
Bank of Bangladesh Limited & Prime Bank Ltd.
 To scrutinize the performance of CSR programs in National Bank Limited, Export
Import Bank of Bangladesh Limited & Prime Bank Ltd.
 To make recommendation from the comprehensive level of the three banks for the
superior enactment of CSR.
 To gather the knowledge about CSR activities of commercial banks of Bangladesh.
 To identify the trend of CSR expenditure of individual banks and the sample banks as
a whole.
 To find out existing practice of CSR by banks
1.4 Data Analysis Tools:
Tools are the followings:
 Introduction the banks accountability of CSR to the society,
 Analysis of different contribution of CSR to the society, the time horizon of the report
is 2016 to 2018.
 Correlation analysis is done to identify the relationship between the banks CSR
expenditure
1.5 Scope of the Study:
 The process of earning profit for the banking sector by CSR activities
 Give a clear idea about CSR activities of commercial bank in Bangladesh
 Give the proper knowledge about the organization how they do their CSR activities
 What types of CSR they do for the society
 Give the idea about their total contribution of CSR activities
1.6 Method of Collecting Data:
1.6.1 Selection Area of the Study:
As it is the CSR relevant so comprehensively at main organization custom instead of this
making more validating there consider three banks as the sample of study. The National Bank
Limited, the Export Import Bank of Bangladesh Limited & Prime Bank Ltd is well-thought-
out here for the study.

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1.6.2 Sources of Data
The study is exclusively a descriptive research and thus it is purely based on the information
from secondary data sources. The data are collected from:
 Annual Reports of sample banks.
 Different books, research papers, documents, manuals etc. related to the topic.
 Subject related websites and
 Different reports of Bangladesh Bank.
1.6.3 Size of Data
All data are collected in yearly basis. And the information is collected from the year 2016 to
the year 2018.
1.6.4 Data Analysis & Presentation
After collecting necessary data it needs to process this data. All data are processed through
proper editing, classification and tabulation. Then Data are analyzed and presented by
percentage, graphical presentation techniques and different types of charts. Major or critical
findings have been analyzed and then based on everything; recommendations and conclusion
are given.
1.7 Limitations of the Study:
The limitation of this report is the followings:
 Although there are lots of analysis in the annual reports, the analysis are not enough to
gather the specific information about the performance of Commercial Bank in
Bangladesh
 There have no any proper information about the banks activities
 This Project has been prepared with limited resources.
 The results are interpreted from the analyst’s point of view, the analysts level of
knowledge is another limitation of the study.

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 CHAPTER- 02
LITERATURE REVIEW

2.1 Literature Review:

Literature review creates the gap of the analyses. The researcher has comprehensively gone
through the available literature relating to CSR. Generally it is used for improving theoretical
framework for the study as well as justification of the study.
Yeung (2016) defines key element of CSR in the banking sector such as: understanding of
financial services complexity, risk management, strengthen ethics in the banking business,
strategy Implementation for financial crisis, protection of customers’ rights and channels
settings for Customer complaints.
The study is conducted on commercial banks in Malawi. Yeshmin (2018) explores CSR
concerns in private commercial banks. Annual review of the 30 banks in 2014-2016, includes
information on their CSR practices. In this study, 36.67% of the banks show CSR related
activities. In the same year, 2017, in Bangladesh, it was presented the study on CSR practices
for the period 2015-2017.
Masud and Hossain (2017) conduct a survey among 10 commercial banks and found that 100
banks reported their CSR activities but 60% banks participated in prescribe CSR area
according to financial act.
Ahmed (2018) identified that demand for accountability and transparency from the both
public and private sectors has become soaring. In the older days’ management is seeking for
survival and profits. Nowadays management concerns managing financial and nonfinancial
results with awareness of risk and maintenance of transparency. As a result, Corporate Social
Responsibility (CSR) has possessed equal importance of corporate financial performance.
This paper explores how private commercial banks practices Corporate Social Responsibility
(CSR) in Bangladesh in conserved the case of Southeast Bank Ltd. Banks’ of Bangladesh
practices CSR to not only improve community relations but also as source of significant
commercial benefit. Southeast Bank Ltd. practices CSR under the rules and regulation of
Bangladesh Bank. This study shows that Southeast Bank expenses BDT36.85 million in the
year 2017 in the area of education, health, community development, environmental issue, art
and culture, sports etc. Nevertheless, bank expenses highest amount in education sector
through scholarship program in Bangladesh whereby school, college and university education
tuition and expenses have fully paid for unconditionally.

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2.2 Types of Corporate Social Responsibility:
The idea behind corporate social responsibility is that companies have multiple
responsibilities to maintain. These responsibilities can be arranged in a pyramid, with basic
responsibilities closer to the bottom. As a business meets lower-level responsibilities that
obligate it to shareholders and the law, it can move on to the higher level responsibilities that
benefit society.
2.2.1 Economic Responsibilities: A company's first responsibility is its economic
responsibility - that is to say, a company needs to be primarily concerned with turning a
profit. This is for the simple fact that if a company does not make money, it won't last,
employees will lose jobs and the company won't be able to think about taking care of its
social responsibilities. Before a company thinks about being a good corporate citizen, it first
needs to make sure that it can be profitable.
2.2.2 Legal Responsibilities: A company's legal responsibilities are the requirements that are
placed on it by the law. Next to ensuring that company is profitable, ensuring that it obeys all
laws is the most important responsibility, according to the theory of corporate social
responsibility. Legal responsibilities can range from securities regulations to labor law,
environmental law and even criminal law.
2.2.3 Ethical Responsibilities: Economic and legal responsibilities are the two big
obligations of a company. After a company has met these basic requirements, a company can
concern itself with ethical responsibilities. Ethical responsibilities are responsibilities that a
company puts on itself because its owners believe it's the right thing to do, not because they
have an obligation to do so. Ethical responsibilities could include being environmentally
friendly, paying fair wages or refusing to do business with oppressive countries.
2.2.4 Philanthropic Responsibilities: If a company is able to meet all of its other
responsibilities, it can begin meeting philanthropic responsibilities. Philanthropic
responsibilities are responsibilities that go above and beyond what is simply required or what
the company believes is right. They involve making an effort to benefit society -- for
example, by donating services to community organizations, engaging in projects to aid the
environment or donating money to charitable causes.
2.3 Dimensions of Corporate Social Responsibility:
Traditionally, companies have had one responsibility: to make a profit. But the concept of
corporate social responsibility holds that companies should be responsible to more than just

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their owners. Corporate social responsibility holds that there are multiple dimensions that
should affect a company's actions-
2.3.1 Environmental: The environmental dimension of corporate social responsibility refers
to your business's impact on the environment. The goal, as a socially responsible company, is
to engage in business practices that benefit the environment. For example, choosing recycled
materials to use in packaging or adding renewable energy sources like solar power to the
factory.
2.3.2 Social: The social dimension of corporate responsibility involves the relationship
between the business and society as a whole. When addressing the social dimension, the
business should be used to benefit society as a whole. This could involve sourcing fair trade
products, for example, agreeing to pay employees a livable wage. It could also involve taking
on endeavors that benefit society, for instance using the resources to organize charitable
fundraisers.
2.3.3 Economic: The economic dimension refers to the effect that corporate social responsibility
has on the finances of the company. In an ideal world, where corporate social responsibility had
no costs, there would be no reason to limit it. But in the real world it is important to recognize the
financial impact that these actions have and to balance being a good corporate citizen with
making a profit.
2.3.4 Stakeholder: The stakeholders are all of the people affected by company's actions.
These include employees, suppliers and members of the public. When considering the
stakeholder dimension of corporate social responsibility, it should be considered that how the
business decisions affect these groups. For example, a company might be able to increase its
output by having employees work more, but it should consider the impact it will have on
them, not just its bottom line.
2.3.5 Voluntariness: Actions that fall into the voluntariness dimension are those that you are not
required to do. These actions are based in what a company believes is the correct thing to do.
They may be based in specific ethical values that the company holds. For example, a company
may believe that using organic products is the right thing to do even if it is not required to do so.
2.4 Corporate Social Responsibility (CSR) Implications to Business
Activities:
Companies are facing the challenges of adapting effectively to the changing environment in
the context of globalization and in particular in the export sector. Although Consumer Rights
Movement, 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,

Page 6 of 40
companies have gradually attaching more importance to CSR in the local market as well.
They are increasingly aware that CSR can be of direct economic value. Companies can
contribute to social and environmental objectives, through integrating CSR as a strategic
investment into their core business strategy, management instruments and operations. This is
an investment, not a cost, much like quality management. So, business organizations can
thereby have an inclusive financial, commercial and social approach, leading to a long term
strategy minimizing risks linked to uncertainty.
2.5 Corporate Social Responsibility (CSR) as Community Development:
Corporate Social Responsibility (CSR) in Bangladesh can also contribute a lot to community
development. The corporate house can develop the community by creating employment,
providing primary education, contribution to infrastructure development like road and high-
ways and addressing environmental concerns. This is more relevant for a country like
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.

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 CHAPTER -3
CORPORATE SOCIAL RESPONSIBILITIES: A THEORETICAL
REVIEW
3.1 Meaning of Corporate Social Responsibility (CSR):
Corporate social responsibility (CSR) is the corporate initiative to assess and take
responsibility for the company's effects on the environment and impact on social welfare. The
term generally applies to company efforts that go beyond what may be required by regulators
or environmental protection groups.
Corporate social responsibility may also be referred to as "corporate citizenship" and can
involve incurring short-term costs that do not provide an immediate financial benefit to the
company, but instead promote positive social and environmental change.
Companies have a lot of power in the community and in the national economy. They control
a lot of assets, and may have billions in cash at their disposal for socially conscious
investments and programs. Some companies may engage in "green washing", or feigning
interest in corporate responsibility, but many large corporations are devoting real time and
money to environmental sustainability programs, alternative energy and various social
welfare initiatives to benefit employees, customer, and community at large.
Few popular definition of CSR are presented here-
Michael Hopkins' Definition of CSR:
"Corporate Social Responsibility is concerned with treating the stakeholders of a company or
institution ethically or in a responsible manner. ‘Ethically or responsible' means treating key
stakeholders in a manner deemed acceptable according to international norms."
EU Definition of CSR:
"A concept whereby companies integrate social and environmental concerns in their business
operations and in their interaction with their stakeholders on a voluntary basis."
The World Business Council for Sustainable Development (WBCSD):
"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"
3.2 Views of Social Responsibility:
There are two views of social responsibility. Those are
 The Classical View
 The Socioeconomic view

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3.2.1 The Classical View:
The view that management only responsibility is to maximize profits. Some big companies
suchas Beximco Group, Abul Khair Group don’t contribute broadly in corporate social
responsibility.
3.2.2 The Socioeconomic View:
This is the modern views of today’s global business of economy. In this view management’s
social responsibility goes beyond making profit to include protecting and improving society’s
welfare. Some companies such as Abdul Monem Limited, Prime Bank Ltd, Dutch Bangla
Bank etc. spends huge amount of money for the society.
3.3 CSR and Constituents:
Corporate social Responsibility (CSR) is the responsibilities of an organization to proactively
promote the public interest by encouraging community growth and voluntarily eliminating
practices that harm the public interests. It is the deliberate inclusion of public interest into
corporate decision-making. Broadly, CSR activities of an organization should embrace to
honoring the three P’s-People, Planet and Profit. CSR policy would function as a self-
regulating mechanism, where business would ensure the adherence to laws & ethical norms.

People

People

Profit Planet

Figure 1: 3 P’s of CSR

Profit making should not be the only objective of an organization; rather it should embrace the
interests of all stakeholders & the community people at large for the long-term sustainability &
growth. In decision making, an organization should consider the impact of its activities on the
environment & all other stakeholders.

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 Customers

Environment Employees

Society Suppliers

Capital
Government
Providers

Regulatory
Authority

Figure 2: Constituents of CSR

It is intended to portray that the total CSR of business comprises distinct components that,
taken together, constitute the whole. The most critical tensions, of course, would be between
economic and legal, economic and ethical, and economic and philanthropic. In summary, the
total corporate social responsibility of business entails the simultaneous fulfillment of the
firm's economic, legal, ethical, and philanthropic responsibilities.
3.4 Types of Corporate Social Responsibility:
The idea behind corporate social responsibility is that companies have multiple
responsibilities to maintain. These responsibilities can be arranged in a pyramid, with basic
responsibilities closer to the bottom. As a business meets lower-level responsibilities that
obligate it to shareholders and the law, it can move on to the higher level responsibilities that
benefit society.
3.4.1 Economic Responsibilities:
A company's first responsibility is its economic responsibility - that is to say, a company
needs to be primarily concerned with turning a profit. This is for the simple fact that if a
company does not make money, it won't last, employees will lose jobs and the company

Page 10 of 40
won't be able to think about taking care of its social responsibilities. Before a company thinks
about being a good corporate citizen, it first needs to make sure that it can be profitable.
3.4.2 Legal Responsibilities:
A company's legal responsibilities are the requirements that are placed on it by the law. Next
to ensuring that company is profitable, ensuring that it obeys all laws is the most important
responsibility, according to the theory of corporate social responsibility. Legal
responsibilities can range from securities regulations to labor law, environmental law and
even criminal law.
3.4.3 Ethical Responsibilities:
Economic and legal responsibilities are the two big obligations of a company. After a company
has met these basic requirements, a company can concern itself with ethical responsibilities.
Ethical responsibilities are responsibilities that a company puts on itself because its owners
believe it's the right thing to do, not because they have an obligation to do so. Ethical
responsibilities could include being environmentally friendly, paying fair wages or refusing to do
business with oppressive countries.
3.4.4 Philanthropic Responsibilities:
If a company is able to meet all of its other responsibilities, it can begin meeting
philanthropic responsibilities. Philanthropic responsibilities are responsibilities that go above
and beyond what is simply required or what the company believes is right. They involve making
an effort to benefit society -- for example, by donating services to community organizations,
engaging in projects to aid the environment or donating money to charitable causes.
3.5 Corporate Social Responsibility (CSR) Implications to Business
Activities:
Companies are facing the challenges of adapting effectively to the changing environment in
the context of globalization and in particular in the export sector. Although Consumer Rights
Movement, 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 market as well.
They are increasingly aware that CSR can be of direct economic value. Companies can contribute
to social and environmental objectives, through integrating CSR as a strategic investment into
their core business strategy, management instruments and operations. This is an investment, not a
cost, much like quality management. So, business organizations can thereby have an inclusive
financial, commercial and social approach, leading to a long term strategy minimizing risks
linked to uncertainty.

Page 11 of 40
 CHAPTER-04
CSR PRACTICE OF BANKING SECTOR IN BANGLADESH
4.1 Banking Sector of Bangladesh:
After the independence, banking industry in Bangladesh started its journey with 6
nationalized commercialized banks, 2 State owned specialized banks and 3 Foreign Banks. In
the 1980's banking industry achieved significant expansion with the entrance of private
banks. Now, banks in Bangladesh are primarily of two types:
4.1.1 Scheduled Banks: The banks which get license to operate under Bank Company Act,
1991 (Amended up to 2018) are termed as Scheduled Banks.
4.1.2 Non-Scheduled Banks: The banks which are established for special and definite
objective and operate under the acts that are enacted for meeting up those objectives, are
termed as Non-Scheduled Banks. These banks cannot perform all functions of scheduled
banks.
There are 56 scheduled banks in Bangladesh who operate under full control and supervision
of Bangladesh Bank which is empowered to do so through Bangladesh Bank Order, 1972 and
Bank Company Act, 1991. Scheduled Banks are classified into following types:
 State Owned Commercial Banks (SOCBs): There are 6 SOCBs which are fully or
majorly owned by the Government of Bangladesh.
 Specialized Banks (SDBs): 2 specialized banks are now operating which were
established for specific objectives like agricultural or industrial development. These
banks are also fully or majorly owned by the Government of Bangladesh.
 Private Commercial Banks (PCBs): There are 39 private commercial banks which
are majorly owned by the private entities. PCBs can be categorized into two groups:
 Conventional PCBs: 31 conventional PCBs are now operating in the industry. They
perform the banking functions in conventional fashion i.e. interest based operations.
 Islami Shariah based PCBs: There are 8 Islami Shariah based PCBs in Bangladesh
and they execute banking activities according to Islami Shariah based principles i.e.
Profit-Loss Sharing (PLS) mode.

 Foreign Commercial Banks (FCBs): 9 FCBs are operating in Bangladesh as the

branches of the banks which are incorporated in abroad.
There are now 4 non-scheduled banks in Bangladesh which are:
 Ansar VDP Unnayan Bank,

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  Karmashangosthan Bank,
 ProbashiKollyan Bank,
 Jubilee Bank
4.2 CSR in Banking Sector of Bangladesh:
The modern concept of Corporate Social Responsibility (CSR) is evolving gradually despite
several hindrances. Driving forces behind this evolution is pressure from various stakeholders
(Importers, Environmentalists) while slow progress is attributed to lack of Good Governance,
absence of strong labor unions, consumer forums and above all lack of understanding by
business houses, specifically non-exporting ones, that CSR is not charity but is rather an
instrumental PR investment. Corporate Social Responsibility (CSR) is gaining fast global
acceptance as a standard to assume environmentally sustainable and socially equitable
business practices. The role of business world-wide and specifically in the developed
economies has evolved from classical 'profit maximizing' approach to a 'social responsibly'
approach, where businesses are not only responsible to its stockholders but also to all of its
stakeholders in a broader inclusive sense. With increased globalization, local businesses are
being integrated with the global economy than ever hence pressure is mounting on local
businesses to converge on international standards of socially responsible business. As a
member of the global economy, Bangladesh is also aware of the need to take positive
initiative to establish an image of environmentally and socially responsible businesses. CSR
as a concept is being gradually interwoven into the psyche of local business, however, the
process is slow and only in its infancy. In most of the cases, CSR practices are not
particularly framed in the context of seeing to in that the money being given as corporate
donations had been part of a sustaining community development effort.
The banking sector of Bangladesh has been actively participating in various social activities.
However, these efforts were hardly recognized and labeled as CSR activities since most of
the financial institutions have not integrated CSR in their routine operation; rather these were
in the form of occasional charity or promotional activities. Bangladesh Bank has taken
initiatives in respect of formalizing CSR in the banking sector of Bangladesh and issued a
directive to the banks and, financial institutions on June 01, 2008 in this regard. It defined the
strategic objective for CSR engagement, provided some priority areas with a suggestion to
foster CSR in their client businesses, and suggested a first time CSR program indicating some
likely action plans. Bangladesh Bank will monitor CSR adoption and CSR performance of
banks and financial institutions, as an additional dimension of their management

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performance. Bangladesh Bank also had the opportunity to provide a sense of direction to the
CSR agenda of the banking sector when it suggested that, banks which are taking measures
for rehabilitating, agriculture, fisheries, livestock, and protecting environment, will be
considered as more compliant of Corporate Social Responsibility besides providing relief to
the people affected in disaster like 'Sidr' , 'Aila' and collaps in ‘Rana Plaza’. The banking
community has responded sensibly to the call for CSR and sustainable social development.
We are also observing a gradual but qualitative change in the CSR action programs
undertaken by banks. For example:
 Disaster relief and rehabilitation became the segment where the highest number of
banks participated to help case the sufferings of the affected people. In the current
context, there is a desired move from the traditionally popular fields of education or
health.
 Several banks introduced micro-finance for the target groups, such as poor farmers,
landless peasants, women entrepreneurs, rootless slum people, handicapped people,
etc.
 More and more banks have taken long-term or renewable scholarship programs for
under-privileged but meritorious students for the persuasion of their studies, instead of
providing one-time recognition awards to good performers.
 Some banks choose to provide continued financial support for maintaining operating
costs of health care organizations,
Without a 'governance framework', businesses may face substantial difficulties in finding and
maintaining appropriate boundaries for their CSR interventions, and they may find
themselves pressured into activities that are beyond their core competence and represent a
financial drain on business rather than a sensible CSR investment. The initiative of
Management and Resources Development Initiative (MRDI) aiming at proper utilization of
CSR funds by means of seeking commitment from the leaders of trade and industry to
undertaken target-oriented actions for sustainable social development is appreciable. MRDI
has right pointed out that as an alternative development funds, CSR can contribute to poverty
reduction and supplement government's efforts towards achieving the millennium
development goals. In a developing country like ours with modest resources, it is important
that we deploy our resources most usefully, and hence, we should make an effort to have an
overall national policy on CSR that starts from building understanding of CSR incentives and

Page 14 of 40
pressure points and improving strategic interactions and alignment between public policy
goals and the CSR-related activities of businesses.
4.3 Highlights of Recent Engagements of Banks in CSR Practice:
CSR initiatives of banks mainly focus on
 Financial inclusion of less privileged population segments and underserved economic
sectors,
 Promotion of health, education and cultural/recreational activities for advancement
and well being of underprivileged population segments,
 Promotion of environment friendly projects,
 Humanitarian & disaster relief,
 Adoption of energy efficient, carbon footprint reducing internal processes and
practices in own offices and establishments.
Besides continuation and expansion of previous engagements in these areas, interesting
newer directions/newer thrusts seen in the recent CSR reports of banks included:
 A safe drinking water project was commenced by one of the banks to provide safe
water to 0.25 million people and sanitation to 0.4 million people in the north-east and
north-western regions of Bangladesh.
 Distribution of sewing machines among the women of Somvupura union under
Sonargaon upazila for increasing their self-reliance and well off condition.
 Distribution of formalin D-Hydrate Machine to Malibag Bazar Banik Samabay
Samity Ltd. for detecting formalin mixed product.
 Establishing a woman’s training center at Bashatpur, Jessore to train and rehabilitate
poor and helpless women especially those who are victims of human trafficking.
 Establishing ‘Gaon Shwapno’- an initiative supporting marketing of crafts and
services produced by distressed poor women.

 Introducing Krishak Card for farmers of northern region of the country to enable them
to buy seeds, fertilizer, pesticides and other agricultural materials.

 Undertaking projects promoting low carbon emission where recycled papers are used
as raw materials for production of finished goods, leading to conservation of trees.
Besides CSR initiatives involving direct expenditure, all banks participated actively in
promoting SMEs and agricultural financing. PCBs were particularly active in these areas.
Banks proceeded ahead on multiple fronts including increased rural bank branch presence for

Page 15 of 40
broader, deeper financial inclusion, mobile phone banking, and opening of bank accounts
with Taka 10 as initial deposit for farmers/poor/ultra poor and thereby increasing transactions
in these bank accounts.
In terms of direct monetary expenditure, engagements of banks in CSR initiatives are
increasing, particularly following issuance of BB guidance (DOS Circular No 01 Dated 30th
December 2018):
Year 2016 2017 2018
CSR expenditure 553.80 2329.80 3046.69
(million Taka)
Sources: Review of CSR Activities of Financial Sector- 2016-18 & Annual Reports of Bangladesh Bank

4.4 CSR Expenditures by Banks:

The banking sector of Bangladesh has a long history of involvement in benevolent activities
like donations to different charitable organizations, to poor people and religious institutions,
city beautification and patronizing art & culture, etc. Recent trends of this engagement
indicate that banks have organized these involvements in more structured CSR initiative
format. Table 2 presents Sect oral pattern of CSR expenditure reported by Banks.
Year Humanitarian Education Health Sports Art & Environment Others Total
& disaster culture
relief
2016 188.03 612.48 520.42 359.07 171.52 138.07 198.73 2188.32
2017 788.37 983.69 435.43 183.85 213.31 140.23 301.81 3046.69
2018 792.3 1238.6 1058.2 208.8 368.2 128.5 667.2 4461.8
Sources: Review of CSR Activities of Financial Sector- 2016-18 & Annual Reports of Bangladesh Bank

Commercial banks contributed major share of CSR in education, health & disaster
management on the other hand sports, art and culture environment got less attention. Notable
specific share of expenditure in CSR programs of banks in recent few years are as follows:

5000
4500
4000 Others
3500 Environment
3000 Art & culture
2500
Sports
2000
Health
1500
1000 Education
500 Humanitarian & disaster relief
0
2016 2017 2018

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Following are some notable features observed from the CSR activities carried out by the
banks:
 In a natural calamity-prone area like Bangladesh, there remains an existing and
distinctive CSR agenda focused on the business contribution to tackling social crises
in the affected area. Disaster relief and rehabilitation became the segment where the
highest number of banks participated to help ease the sufferings of the affected
people. In the current context, a desired move from the traditionally popular fields of
education or health.
 In the education segment, more and more banks have taken long-term or renewable
scholarship programs for under-privileged but meritorious students for the persuasion
of their studies instead of providing one time recognition awards to good performers.
 Some banks choose to provide continued financial support for maintaining operating
costs of health care organizations. A bank undertook a continuous program called
‘Smile Brighter Program’ to perform as many operations possible per year on cleft-
lipped boys and girls to bring back smile on their face.
 Several banks have taken steps and introduced investment schemes to cater the needs
of self-employment and poverty alleviation under which micro-finance is channeled
to the target groups, such as poor farmers, landless peasants, women entrepreneurs,
rootless slum people, handicapped people, etc.
 A few banks have taken steps to introduce Interest-free Education Loan to poor and
meritorious students to help bear monthly educational expenditure including food,
accommodation etc. The loan is distributed to the selected students in monthly
installments till their completion of studies up to the Masters Degree level.
 A good number of banks have created separate Foundation/Trusts as non-profitable,
nongovernmental organization, solely devoted to the cause of charity, social welfare
and other benevolent activities towards the promotion CSR objectives. These banks
are providing a certain percentage of the pre-tax profit/net profit each year towards its
CSR activities.

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 CHAPTER-04
CSR PRACTICE OF PRIVATE COMMERCIAL BANKS IN
BANGLADESH
4.1 CSR Contribution of Commercial Banks of Bangladesh:
Corporate social responsibility is associated with corporate governance and ethical business
procedure. Good corporate governance is expected to underpin effective and efficient
corporate social responsibility within firms. Banking sector of Bangladesh is contributing to
economy hugely now days. It has become one of the major sectors of Bangladesh. As playing
a major role in the economy gives them major responsibility to the society. Every bank is
practicing corporate social responsibility on their own way. In this paper we have selected
three banks Exim Bank and National Bank & Prime Bank Ltd to compare and contrast the
corporate social responsibility of different banks in Bangladesh. The purpose is not only to
find out the CSR activities but also their implications and effectiveness on the society.
Corporate social responsibility or corporate governance is one of the major qualities for
evaluating or valuing a firm or bank.
For comparing and contrasting we have selected three banks called EXIM (Export Import)
Bank, National Bank & Prime Bank Limited. These two banks CSR activities are gathered
and analyzed. The information regarding the CSR of these two banks is taken from the annual
report and from their official website.
4.2 Exim Bank Ltd:
Corporate Social Responsibility is becoming an increasingly important activity to business in
our country as well as other countries around the globe. Many of the corporations have
progressively recognized the benefits of providing CSR programs in their various locations.
In recent years CSR has become a fundamental business practice and has gained much
attention from all the concerned of larger companies of our country. EXIM Bank believes
that a strong CSR program is an essential element in achieving good business practices and
effective leadership. An organization's impact on the economic, social and environmental
landscape directly affects their relationships with its stakeholders, in particular investors,
employees, customers, business partners, government and communities. The country's long -
standing traditions of respect for family and social networks and high value placed on
relationships, social stability and education are well revered by EXIM Bank.
EXIM Bank believes in togetherness with its entire stakeholder in a broader inclusive sense
to the endless pursuit of glory and success. Since inception in 1999, the term "social

Page 18 of 40
responsibility" is much more emphasized than the term 'profit maximizing'. EXIM Bank
always proceeds with resilient support to lessen the desolation of the underprivileged and
distressed sector of the country. In this connection, EXIM Bank has established EXIM Bank
Foundation in the year 2006 to carry out CSR activities in the most planned and orderly
manner.
4.2.1 EXIM Bank Foundation and CSR Activities:
At least 2% of our annual profit of every year is put aside for the foundation to conduct
Corporate Social Responsibilities (CSR) activities. The mainstream CSR activities that are
carried out through this foundation are:
4.2.1. A Healthcare service:
Bangladesh is the most densely populated poor developing country of the world. A
significant portion of the population lives below the poverty line. Appropriate and modern
medical facility is unreachable to them. Obviously it is not possible for the Government to
provide proper medical services for all. Moreover, private modernized healthcare services are
beyond the ability of most of the people. So, the poor and helpless has few places to move for
health care facilities which are never so healthy in true sense. Considering this situation,
EXIM Bank has treated healthcare sector as the most significant sector to deal with. The
programs those have been taking care of are:
4.2.1. B Scholarship program for brilliant poor student:
This is a stipend package for poor and meritorious students that take care of the beneficiaries
throughout their student life. EXIM Bank Scholarship Program, launched in 2006 with 61
poor and meritorious students selected from different reputed educational institutions of
Dhaka City including Govt. Laboratory High School, Viqarunnissa Noon School and
College, Dhaka University, BUET, Dhaka Medical College, etc. enrolled as many as 1000
students from around 150 reputed educational institutions across the country by 31 December
2008. They are enrolled in the this programme to be taken care of for their whole educational
life subject to their fulfillment of the eligibility criteria that include satisfactory academic
results, non-involvement in student politics, financial insolvency etc. So far Tk. 19.3 million
has been disbursed as scholarship under this programme.
4.2.1. C Education Promotion Scheme (Interest free Loan):
Under Education Promotion Scheme, quard or interest-free loan is provided for poor and
meritorious students to help them bear monthly educational expenditure including academic
expenses, food, accommodation, etc. The quard is disbursed to the selected students in
monthly installments till their accomplishing the master degree. Under this programme the
Page 19 of 40
students are required to repay the amount (only the principal amount) in long-term monthly
installments after they have joined a confirmed job accomplishing their education properly.
By 31 December 2008, Tk. 19.7 million was sanctioned to take care of around 138 poor and
meritorious students from a number of reputed educational institutions like Dhaka University,
Chittagong University, Dhaka Medical College, BUET, Bangladesh Agricultural University,
Shahjalal University of Science and Technology etc.
4.2.1. D Helping people affected by natural calamities
Another vital area we are dealing with as part of our CSR activities is helping people survive
natural calamities. Under this welfare program, EXIM Bank provides relief in cash and kind
for flood, fire or cyclone victims and cold-stricken people. The aim of these CSR activities is
to help the target group overcome their provisional handicap and contribute to the socio-
economic growth as soon as possible.
4.2.1. E Helping people in slum areas:
Besides natural calamities, fire breaks out sometimes in slum areas that guts the shanties and
renders the affected people totally helpless. In that situation, we help the victims fight against
the hard days and return to normal life.
4.2.1. F Donation to educational institutions to setup computer lab:
We have donated to Dhaka University and Chittagong University to set up two computer labs
that help the students of those universities acquire ICT knowledge. This will certainly help
the students to be ready to take the challenges of this information society.
4.3.3 Corporate Social Responsibilities (Sibilates Wise) of EXIM Bank Ltd:
In the year 2016-18 EXIM Bank Ltd in various sector of the country as a part of CSR as
below:
(fig. in Millions)
Sector 2016 2017 2018
Education 33.4623 1.5 60.003
Health 0.1 2.8 25.505151
Disaster/Relief 10.972995 14.15 201.91
Prime Minster Relief Fund 5.48 8.2 6.00
Environment 0.01 0.95 2.79
Sports & Culture 0.982 60.608615 44.00
Others 0.07 9.701615 -
Sources: Annual Report 2016-18

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4.3 National Bank Ltd:
National Bank Limited foundation was established in 1989 to fulfill the responsibilities of
welfare for the society. National Bank Public School and College in Moghbazar, Dhaka has
been established where about 997 students are studying in the school section from class 1 to
class 10, while 121 students are at the college section . In 2010, 93 students appeared at the
SSC examination and 92 at the H.S.C examination and in both the examinations 100% came
out successfully.
The bank has been accommodating prospective graduates of recognized universities for
completing their internship. NBL also awarded scholarship to the brilliant children of the
employees of the bank and contributed Tk, 8.12 Lac to various educational sectors. Sports
and cultural activities.
4.3.1 National Bank Corporate Social Responsibility:
4.3.1. A Health:
Health is the greatest wealth in this world and key to success of the individual, organizations
and the society. Our efforts enable employees and others to live healthier through education
and medical services. The Bank endeavored to enhance employee benefits and rolled out
Vaccination Camps in coordination with its healthcare partner. In order to encourage a
healthy lifestyle, the Bank continues its efforts.
4.3.1. B Employment
NBL believes in employee development and career progression. NBL considers empowering
the people; invest in their development and reward people according to their contribution to
overall corporate performance. NBL are regularly investing for training and development of
its employees. It has training center where various training programs, designed to meet the
changing requirements of its employees & organization are conducted. These training
programs include orientation sessions for new employees; programs conducted by various
skill-enhancing, role specific functional academies, leadership mentoring programs and other
management development programs for mid-level and senior executives. In 2018, 292
personnel were newly recruited along with investment of total sum of Tk.35.53 million on
training and development of 1466 officials amid 23 training and workshop program
conducted by NBTI. NBL also provides medical benefits to the employees and their family
members regularly.

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4.3.1. C Art, Culture & Sports:
NBL exclusively recognizes the significance of art, culture and sports in the social life of the
peoples of Bangladesh having rich cultural history. In view of that, Bank generously supports
the activities towards promoting the Art, culture, sports and heritage in the country. NBL has
a long tradition of being associated with the sports. Besides sponsoring different sports events
across the country, the Bank also extends financial support to the cultural events at the
different areas around the country. In 2018, we have spent about Tk. 126.52 million for
promoting and arranging different sports and cultural activities around the country.
4.3.1. B Education:
Education, being one of the building blocks of the nation has got an integral focus in our CSR
strategy. Our extensive support towards Community Investment Programs in education and
poverty alleviation continued during the year. The Bank has established “National Bank
Public School & College” at Moghbazar, Dhaka in 1989 with the purpose of expanding total
education and serving the nation with dedication. The bank awards crest and monthly
scholarship among the children of the bank’s officials every year for excellent academic
result in SSC, HSC examinations. The Bank has also been accommodating prospective
graduates of recognized universities for completing their internship regularly.
4.3.1. C Disaster Relief:
In response to disasters where healthcare emerges as one of the critical areas of intervention
we have responded to the needs of the affected communities to create sustainable solutions.
Traditionally, NBL helps peoples and the society during the times of needs. We are regularly
contributing to the Prime Ministers Relief Fund for the sake of helping the poor and helpless
people at the time of necessity. In 2018, an amount of Tk.99.98 million has been spent for
disaster and relief functions along with Tk.150.00 million to Prime Ministers Relief Fund for
the help of the victims on different disasters. In 2018, an amount of Tk.14.00 million only has
been spent for the people of Naria Upazila who have become homeless due to the erosion on
the Padma River within the purview of CSR activity of our Bank.
4.3.1. D Environmental stewardship:
Environmental protection has got priority around the globe during recent years and we are
moving towards responsible lending and integrating social & environmental impact into risk
assessment. Recognizing the ecological importance, NBL is introducing internal environment
management phase by phase. We are conscious of our usage of resources and working for
saving electricity, water & paper consumptions. Besides, the bank introduces environment
friendly financing to address the environmental challenges of the country in line with social
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& regulatory requirements. We have established green banking unit to address the banks’
environmental While financing any project, we check the supporting documents regarding
environmental clearance from concerned Authorities. To ensure environmental protection, we
also encourages establishing Effluent Treatment Plants (ETP) of industrial set up to protect
the earth from pollution.
4.3.1. E Others:
National Bank Limited has always maintained their corporate social responsibility in various
ways. It has always appreciated various kinds of fair, festivals and other gatherings organized
by different private or public sectors. In 2010 NBL has donated Tk. 8.70 lac in venous
activates.
National bank has contributed significantly to the government effort in collection of revenue.
In 2010 it has contributed to national exchequer an amount of Tk. 1,37.50 crore as tax and
VAT on its earnings. Besides the bank deducted tax, vat, excise duties etc. from various
payments and deposited the same to government exchequer.
4.3.2 Corporate Social Responsibilities (Sibilates Wise):
In the year 2016-18 National Bank Ltd in various sector of the country as a part of CSR as
below:
(fig. in Millions)
Sector 2016 2017 2018
Education 37.50 9.04 13.62
Disaster/Relief 386.37 616.89 29.55
Prime Minster Relief Fund 275.00 600.00 57.19
Health 72.18 463.79 11.50
Environmental stewardship 8.85 34.95 32.87
Sports & Culture 32.65 330.90 1265.28
Others 217.22 67.62 208.53
Sources: Annual Report 2016-18

4.3.4 Future Plan:

NBL remains focused on long term sustainability and strengthening the foundations of future
growth. It will continue to advocate and influence positive and affirmative sustainability
actions in future. We are planning to envisage the future, looking at economic, regulatory and
stakeholder scenarios in order to develop our next vision and action plans.

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4.4 Prime Bank Ltd:
The biggest CSR of Prime Bank is to establish Prime Bank Foundation to execute its
corporate social responsibilities activities in a greater scale. Prime Bank Limited and Prime
Bank Foundation are proud to continue CSR activities for the greater interest of country’s
socio economic development:
4.4.1 Prime Bank Corporate Social Responsibility:
4.4.1. A Investment in Education:
 Education Support Program: Believing education as a tool for social change, Prime
Bank Foundation is proud to have another year of success of its Education Support
Program launched in 2007. It is a long term, renewable scholarship program for
underprivileged but meritorious students from across the country. In 2009 reporting
year, 198 underprivileged but meritorious students, the highest in one year since its
inception, have been included to provide with financial support in the form of
monthly stipends for the persuasion of their graduation/post-graduation level studies
in the country’s public sector universities and colleges. With the inclusion of these
students, the total number of poor but meritorious students who are the recipients of
Prime Bank Foundation stipends stood at 490.
 Prime Campus: Prime Campus, an English medium school in Uttara, Dhaka, was
created by Prime Bank Foundation in 2008 as an alternative to the expensive English
primary schools at an affordable charge schedule.
Our commitment to corporate social responsibility ensures we remain true to our heritage of
integrity; maintain a long term point of view to make economically sound, environmentally
responsible and socially supportive decisions. More specifically, we maintain an unwavering
commitment to honesty, integrity and fairness in all our CSR practices; show compassion by
becoming involved with and supporting local and national communities; and consistently act
in a manner that fosters our stewardship and sustainability.
4.4.1. B Work with Handicap Population:
Investment in eradicating and preventing different disabilities such as drug addicts, blindness
etc; setting up vocational training centers; undertake mass awareness raising campaigns etc.
4.4.1. C Dristy Daan Project:
Setting a target of sight restoration of 1200 poor/ultra poor citizens of the country, the Prime
Bank Foundation started off the Dristy Daan project in 2007. A total of 1357 poor/ultra poor
cataract patients were operated till date.

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4.4.1. D Health Care:
Support setting up state-of-the-art hospital like Vellore CMC Health Care, Universal Health
Care Centers; Eye Hospitals; Health Support to garment workers; more preventive activities;
infant, child feeding and breastfeeding; support to facilities providing treatment and care of
non-communicable diseases such as heart, and diabetes; activities related to prevention of
maternal mortality and morbidities; setting up trauma centers etc.
4.4.1. E Health Management:
Developing SOPs; improving supervision; leadership training; nursing training; setting up
accrediting body in the private sector; provide equipment to existing voluntary health
facilities etc. Develop a CSR strategy of PBF, partnership support has been offered by one
organization.
The bank has extended finance for establishing countrywide health centers and a teachers’
training college under the supervision and implementation of Diabetes Association of
Bangladesh.
The bank has also provided financial support to an innovative, non-conventional yet a useful
and much needed socio-medical project, popularly known as, "healthline" (accessible by
dialing "789" from any mobile phone under Grameen Phone network) by Telemedicine
Reference Center Limited (TRCL), the only registered telehealth and electronic health service
provider in Bangladesh. The bank’s finance was made available for upgrading of existing
project as well as set up offshore health line call centers for Bangladeshi workers based in
Kingdom of Saudi Arabia and the United Arab Emirates. The bank also financed TRCL to
launch an Intensive Diabetes Management (IDM) services program in Bangladesh under its
brand name “amcare”.
4.4.1. F Environment:
Activities related to the prevention of environment degradation and promotion of
environment; support people living in the coastal and ‘char’ areas; carbon trading etc.
Another important undertaking by the bank also merits mentioning, which involves financing
of a geo-textiles manufacturing project. Geo-textiles products are being used in ample
quantity in construction of bridge and approach road, and building protection for riverbank,
coastal, and embankment. Bangladesh being a riverine country is always in need of geo-
textiles products, and implementation of such an import-substitute product manufacturing
facility would definitely help the country to save drainage of foreign exchanges.

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4.4.1. G Support to Martyr Family:
The loss of lives in the BDR carnage shocked the entire nation. Prime Bank came forward to
support the Martyr families and donated Tk 2.5 million to Prime Minister’s Relief Fund. PBL
also took responsibility to support two such families @ Tk 0.48 million per year for ten years
starting from 2009.
4.4.1. H Games & Sports:
 The Bank participated in major sponsorship programs in the area of sports viz. Golf,
Tennis to popularize the same among the public;
 Financial assistance was provided to Bangladesh Cricket Board for development of
the game.
4.4.1. I Other CSR activities of the Bank:
 Donations of Passenger cum bed lift to Sylhet Diabetic Association Hospital.
 Sponsoring 20 KVA Diesel Generator for Department of Development Studies,
Dhaka University
 Construction of Shahbag Foot Over Bridge
 Awareness Campaign at the three international airports of the country against swine
flu.
 Improvement of Porter and Luggage Handling Services at the Kamalapur Railway
Station, Dhaka.
 Blankets and winter-clothes distribution among the winter distressed people of the
society.
4.4.2 Corporate Social Responsibilities (Sibilates Wise): (fig. in Millions)
Sector 2016 2017 2018
Education 0.025 20.00 0.065
Disaster/Relief 23.825 89.4625 50.00
Prime Minster Relief Fund 18.92 - 30.4
Health 0.01 0.35 5.07
Environmental stewardship 0.4522 - 1.01
Sports & Culture - 20.255 5.443
Others 3.73105 1.00 0.48
Sources: Annual Report 2016-2018

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 CHAPTER 5
ANALYSIS & INTERPRETATION
5.1 Comparison of selected banks according to different category:
In our country Commercial banks generally contribute as CSR expenditure to education,
health, humanitarian & disaster management, culture & sports, rehabilitation, poverty
reduction & social development, environment, information technology and miscellaneous
sector. Comparison among selected banks according to different CSR category is described in
this section.
5.1.1 Education:
Education is the most important CSR area in Bangladesh. In this table represent the ten
commercial Banks CSR contribution for Education overall the three years.

Year EXIM Bank National Bank Prime Bank

2016 33.4623 37.50 0.025
2017 1.5 9.04 20.00
2018 60.003 13.62 0.065

70
60.003
60

50
37.5 2016
40 33.4623
2017
30 2018
20
20 13.62
9.04
10
1.5 0.025 0.065
0
EXIM Bank National Bank Prime Bank

Interpretation
In the area every bank has participation. PBL & NBL are comparatively ahead than others. MBL
& EXIM also showed a good participation in this sector. PBL & NBL are seen as small
contributor in this area.

Page 27 of 40
5.1.2 Disaster/Relief:
Disaster relief is the most important sector for CSR practice where the highest number of
banks participated to help the sufferings people who are affected by the natural calamities.
The commercial banks come forward to help these people who are affected by the natural
disaster in this table present the CSR contribution of different banks in the area of
humanitarian and disaster management.

Year EXIM Bank National Bank Prime Bank

2016 10.972995 386.37 23.825
2017 14.15 616.89 89.4625
2018 201.91 29.55 50.00

700

600

500

400 EXIM Bank

National Bank
300 Prime Bank

200

100

0
2016 2017 2018

Interpretation
In the area every bank has participation. PBL & EXIM are comparatively ahead than others. NBL
2017 also showed a good participation in this sector. PBL & EXIM are seen as small contributor
in this area.

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5.1.3 Prime Minster Relief Fund:
PM Relief fund is also an important sector of CSR. In this table shows the commercial banks
social Relief fund performance.

Year EXIM Bank National Bank Prime Bank

2016 5.48 275.00 18.92
2017 8.2 600.00 0.00
2018 6.00 57.19 30.4

600

500

400
EXIM Bank
300 National Bank
Prime Bank
200

100

0
2016 2017 2018

Interpretation
In the area every bank has participation. PBL & EXIM are comparatively ahead than others. NBL
2017 also showed a good participation in this sector. PBL & EXIM are seen as small contributor
in this area.

Page 29 of 40
5.1.4 Health:
Health is another important sector for CSR area practiced by commercial banks in
Bangladesh. All commercial banks work and try to assure that they can give better medical
service to the helpless and poor people. This table presents health areas contributions of ten
banks.

Year EXIM Bank National Bank Prime Bank

2016 0.1 72.18 0.01
2017 2.8 463.79 0.35
2018 25.50 11.50 5.07

500
450
400
350
300 EXIM Bank
250 National Bank

200 Prime Bank

150
100
50
0
2016 2017 2018

Interpretation
In the area every bank has participation. PBL & EXIM are comparatively ahead than others. NBL
2017 also showed a good participation in this sector. PBL & EXIM are seen as small contributor
in this area.

Page 30 of 40
5.1.5 Environmental stewardship:
Environment is the most essential element for our life and our nature. Commercial banks are
also work for improve environmental situation of our country. In this table shows the ten
banks they are practice in CSR for environment.

Year EXIM Bank National Bank Prime Bank

2016 0.01 8.85 1.4
2017 0.95 34.95 0.00
2018 2.79 32.87 0.4

35

30

25

EXIM Bank
20
National Bank
15 Prime Bank

10

0
2016 2017 2018

Interpretation
In the area every bank has participation. PBL & EXIM are comparatively ahead than others. NBL
2017 also showed a good participation in this sector. PBL & EXIM are seen as small contributor
in this area.

Page 31 of 40
5.1.6 Sports & Culture
Commercial banks in our country being socially responsible sponsor for sports regularly.
culture is another important sector for CSR area which is practiced by commercial banks in
Bangladesh. In this table shows the CSR contribution of the ten commercial banks in sports
& Culture.

Year EXIM Bank National Bank Prime Bank

2016 0.982 32.65 0.00
2017 60.608615 330.90 20.255
2018 44.00 1265.28 5.443

1400

1200

1000

800 EXIM Bank

National Bank
600 Prime Bank

400

200

0
2016 2017 2018

Interpretation
In the area every bank has participation. PBL & EXIM are comparatively ahead than others. NBL
2018 also showed a good participation in this sector. PBL & EXIM are seen as small contributor
in this area.

Page 32 of 40
5.1.7 Others: The commercial banks do not contribute any specific sectors they are
contributing many different CSR sectors which is import for our society, our culture and our
social development. In this table shows the commercial banks CSR expenditure in other
sectors.

Year EXIM Bank National Bank Prime Bank

2016 0.07 217.22 3.73105
2017 9.701615 67.62 1.00
2018 0.00 208.53 0.48

250

200

150 EXIM Bank

National Bank

100 Prime Bank

50

0
2016 2017 2018

Interpretation
In the area every bank has participation. PBL & EXIM are comparatively ahead than others. NBL
2016 also showed a good participation in this sector. PBL & EXIM are seen as small contributor
in this area.

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5.2 Comparison of CSR contribution in proportion to profit:
All the banks like to demonstrate that they are contributing to society, however if we compare
the amount with their income, it shows that the amount is very little. Table 25shows the
relationship between profit before tax and CSR contribution of these six banks. Most of the
banks have contributed a very insignificant amount to CSR in proportion of their profit before
tax .Most of the banks have contributed a very insignificant amount to CSR in proportion of
their profit before tax.

Table 2: Comparison of CSR contribution in proportion to profit (BDT in millions)

2015 2016 2017 2018

PBT CSR % of PBT CSR % PBT CSR % PB CS %

Exp Exp of Exp of T R of
Banks profit Ex
prof pr p prof
it ofi it
t

PBL 8,875. 68.80 0.78 - 113.3 - 10,625 292. 2. N/A N/ N/A

66 % 12834. 8 0.8 .32 28 75 A
91 8% %

DBBL N/A N/A N/A 1,006. 53.30 5.2 1,063. 83.7 7. N/A N/ N/A
74 9% 93 2 87 A
%

NBL 4,547. 329.5 7.24 4,817. 523.5 10.8 3,547. 787. 22. 4,51 11 24.6
70 % 10 3 7% 00 50 20 8.80 15. 9%
% 6

IBBL 10,34 410.7 3.97 11,910 309.1 2.6 11,074 476. 4. 10,5 52 4.9
7.31 % .65 9 0% .76 42 30 31.7 4.5 8%
% 1 2

MBL 3,501. 49.40 1.41 3,350. 85.90 2.5 4,255. 83.1 1. 4,41 53. 1.2
68 % 78 6% 70 0 95 0.57 00 0%
%

EXIM 3,432. 26.10 0.76 2,723. 69.45 2.5 3,520. 132. 3. 4,21 23 5.6
21 % 00 5% 59 97 78 6.96 9.8 9%
% 4

Sources: Annual Reports (2015-2018) of Sample Banks

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Among the all banks NBL contribution is the highest, being 24.69% of their profit before tax
in the year 2018, 22.20% in 2017, 7.47% in 2016, 3.35% in 2014. In the year 2013 the
highest contribution (17.59%) was made by Trust Bank Ltd. EXIM was in second position
(5.69%) in 2014, DBBL (7.87%) in 2013, NBL (10.87%) in 2012, TBL (6.25%) in 2011,
IBBL (2.82%) in 2010 and TBL (4.79%) in 2009.On the other hand DBBL is the lowest
contributor 0.53%, 0.79%, 0.53%, during the year 2014, 2013 and 2012 respectively. In 2009,
2010 and 2011 the lowest contributor was Prime bank Ltd (0.30%) and One Bank Ltd
(0.16%), (0.26%) respectively.

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 CHAPTER-6
FINDINGS, RECOMMENDATIONS & CONCLUSION
6.1 Findings:
This study has found out that CSR activities so far are merely implemented for maintaining
business policy without really nurturing social and generous intentions and social
accountability. Most corporate organizations, including sample banks of this study, practice
CSR because of their business enlargement or for promoting organizational image and
recognition. The major findings are:
 Common CSR practices in Bangladesh by different organization are centered on
mainly poverty alleviation, healthcare, education, charity activities, cultural
enrichment, youth development, women empowerment, patronizing sports and
disaster management etc.
 Every bank of the study contributed highest amount in education, health and disaster
relief
 Commercial banks are paying more to their CSR activities but not so much as their
earnings increase.
 Participation of different areas of CSR activities of different banks is limited. There
are many areas like engaged in clean water management, engaged in forestation,
waste management, and old person’s homes ,accommodation for the slum dwellers,
women’s rights and anti-dowry practices, birth control products, training for unskilled
labors etc where the banks don’t pay proper attention.
 NBL is the leading contributor of CSR. They touched highest number of areas and
also donates highest amount in recent times.
 PCBs are more active in CSR contribution.

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6.2 Recommendations
For the Banking Companies:

 CSR activities should be taken as more serious issue rather than a promotional tool.
 The variability of perceptions indicates specific areas where to intervene and set
priorities. All the controversial issues should be taken note of and settled through a
multi stakeholder initiative.
 Environmental concerns and Information technology should receive greater attention
by the banks.
 Gender aspects should be more carefully addressed and monitored for their
implementation.
 CSR expenditure should be increased direct proportion to profit.
 Health and safety issues deserve greater attention given that failure in these areas
impact negatively on the productivity and endanger human life.
 Other banks should follow NBL as a pioneer of CSR activities.

Page 37 of 40
6.3 Conclusion:
Social responsibility is a concept well known in the corporate world and beyond that.
Business all over the world have practiced only profit making actions at past but not for long
as the enterprise started to develop complexities and wideness in size 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. The idea is that, the business has social obligations and
above and beyond making a profit is corporate social responsibility. However, it is regretful
that though internationally it is being practiced widely, Bangladesh is still lagging behind.
Bangladesh is a developing country. Because of global competitiveness and demand, the CSR
practices and standards are being implemented in Bangladesh. But we are yet go a long way.
There are challenges to implement CSR properly in Bangladesh. Ultimately CSR practices
should be better practiced in Bangladesh for better and enhanced performance.

Page 38 of 40
References
• National Bank Limited. (2016-2018). Annual Reports (2016-2018). Retrieved May
25, 2018 from http://www.nationalbank.org/annual_report
• A. K. Masud (2011). CSR Practices of Private Commercial Banks in Bangladesh: A
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