corporate Responsibility

For HSBC, corporate responsibility (CR) means managing our business responsibly and
sensitively for long-term success. As part of our CR, HSBC strives to be a catalyst for
progress in the communities we serve.

Focusing on education and the environment, HSBC builds strong, enduring relationships
with a wide range of organizations, providing the resources and tools to sustain long-term
results. HSBC's 2009 social investment was $21.5 million for North America (U.S. and
Canada combined) and we were honored to have been recognized by more than 15 of our
partner organizations for our philanthropy.

The Community Investment department manages HSBC's social investment primarily

through stewarding HSBC's contributions and leading employee engagement initiatives.

CSR Practice in Bangladesh: Harmony Between Business and Society

corporate Social Responsibility or CSR is the most talking terminology in recent times
among corporate world, commercial community and capitalistic industry, and its
practices are being integrated into international business practices and hence are
becoming one of the determining factors for market access. According to United Nations
Industrial Development Organization, CSR is generally understood as being economic,
environmental and social imperatives (Triple-Bottom-Line-Approach), while at the same
time address the expectation of shareholders and stakeholders.

The concept and practice of CSR is comparatively new strategy in formal sense for the
corporate sector of Bangladesh. The background coexisted with export earning sectors
especially RMG sector. Rising story of RMG during 1990s paved the way to the foreign
buyers to entering in this labour incentive business scenario , most of underprivileged
women and children were involving within scenario with dedicating labour and toil that
have been recorded a new economic foundation for the country. Aftermath the buyers
from North America and Western Europe had strengthened the condition to ensure and
maintain quality and working environment through stressing on good governance , labor
practice , satisfactory working condition , banning on child labour , environment safety
along with other socio- economic factors to the Masterminds of RMG sector. That is the
background and overall environment under which CSR is considered to have made its
entry into Bangladesh in effect by RMG industry.

In the prospect of Bangladesh, a hullabaloo could lift up: whether corporate sectors are
practicing CSR or doing charitable work and philanthropy? So if philanthropy is
something different, what about CSR? How can we define it and more significantly point
out it’s implementation and implication in Bangladesh?

Dr. Mohammed Farashuddin ,ex-governor of Bangladesh Bank explains “CSR

intertwines strong commitment and responsibility to the people who are part of
organization, the group of people within which you control and it comprises a number of
key features and have to be responsive of the operational conditions and labour standards,
the environment within which your employees is working how treat them ,upholding the
dignity of human life, that is very important in terms of gaining a proper understanding of
CSR”. He further states with explaining vast ideology of CSR from his own observation
“I considering the CSR’s visions have mostly maximized the responsibility of corporate
houses and multinational companies to the working force that are toiling, to the
environment where they exist and to the community and groups who are inclusion of
total social structure. Similarly, it is not any good enough to donate and performing
charity works while polluting the environment or workers suffering from diseases and
passing inhuman condition”.

Mohiuddin Babor, a renowned CSR expert and Head of Media & Communications of
Robi expresses CSR as corporate economic responsibility which has multidimensional
impacts, he adds ‘the economic aspect of CSR doesn’t stand for financially sound
condition, moreover encompasses employment report and factors in CSR report. The
economic dynamics of CSR basically have to consider direct and indirect results on the
adjoining conditions including social communities and stakeholders that could define
corporate economic responsibility. The economic impacts can be beneficial collectively
for stakeholders, govt, customers, subscribers, suppliers and the communal growth in
which the companies and corporate houses conducting business and it is mostly
significant for those who are the market leaders”. Dr. Mohammed Farashuddin includes
paying taxes another economic responsibility to the companies. He comments “Over the
past few years we did not observe the true and authenticity of paying taxes, but in recent
times govt is very strict in this regard. Paying taxes regularly can be good practice of
economic responsibility since performing it companies turn into contributor for
development.”

Bitopi Das Choudhury, Head of Corporate Affairs, Standard Chartered Bank notes on the
companies CSR activities “as the way to perform responsibility on the health, stability,
and prosperity of the communities in which they operate and it is also sole responsibility
while the companies are regarded as corporate citizens. She further discusses on the CSR
activities of SCB that highlighting on youth development, sports and health. According to
her, young generation is dispossessed of entertainment and extra curriculum activities,
accordingly there is also lack of proper patronization on sports especially in local and
district level, SCB corporate duties mostly engrossing to grass level so that the talents
and skills may come from rural and district level. She also adds “it is committed to
organized globally standard CSR that including legal advise, organization governance,
compliance, fair operating practices, fair HR practice, equality along with beneficiary
policies to the society and the communities over more than 70 countries and territories
across the globe, making us one of the world’s most international banks.
Sami Hafiz, Corporate Sustainability & Sponsorships Manager, The Hongkong and
Shanghai Banking Corporation Limited mentions, “CSR policy of HSBC Bangladesh is
based on the HSBC Group’s policy as we are part of the Group. Our belief is that
Corporate Social Responsibility (CSR) should be something ingrained in the corporate
culture and be sustainable. That is why we name our CSR programs as Corporate
Sustainability. The Bangladeshi programs focus on two major factors where about 75%
of the budget is allocated. These are a. Education especially education for
underprivileged children and b. Environment”. Debashis Roy, Deputy General Manager
CSR, Grameenphone explains “Consumer rights and responsibility to working force are
important categories on the CSR practice, Responsibilities to employees and consumers
are foremost concerns in GPs’ corporate accountability. Discrimination at work place is
very common phenomena, nevertheless the companies have to be pursued CSR in a
ethical manner and kept away from favoritism, injustice and discrimination”. He also
adjoins “responsibility to employees in GP includes taking care of the personnel’s
welfare and safety at work and upholding their skills, competences and proficiencies with
motivation for work, equally responsibility to customers.

Now a days CSR activity are too much focused by Media, the companies are more
interested in focusing their products rather than to perform social responsibilities- many
experts opined it, in this controversy Sami Hafiz defends “We do not view it this way as
CS is ingrained in our culture and is part and parcel of what we do. Our Group Chairman,
Stephen Green has said that “Our goal is to be the leading brand in sustainability”. When
this is spoken by one of the world’s largest financial institutions’ chairman, you will
definitely pay attention. Many of the activities which we undertake, we do not even
publicize.” Debashis Roy strongly protests this controversy and explains “GP aims to
ensure meaningful social investment through effective projects into development issues
of this country, primarily the hub on education, poverty alleviation, health and
empowerment. Project and policies are initiated on long term basis accompanied with
sustainability and advancement, simultaneously each of these CSR projects settles the
voluntary service from the GP employees.”

Currently, CSR initiative in Bangladesh is a greeting start, particularly where issues of

rights and ethical behavior enticing the central to the lifeblood of an organization. Sami
Hafiz shares his views on contributions of Bangladesh Bank and govt “The present
government has already taken initiatives to encourage other organizations to come
forward including launching of the 10% income tax rebate on the CS funds allocation, the
allocation of US$100 million to combat climate change and many others. In the financial
sector, our regulator, Bangladesh Bank, is playing an active role in monitoring all Bank’s
CSR initiatives as well as encourage others to take a more active role in supporting their
communities”.

Right from the Jamshedji Tata in the 19 century and continuing through to Rattan tata,
their current chairman believes in nation building and empowerment of mass people
thorough development programmes, that is exceptional and probably we can say that
TATA is the only company whose ideology combining social consideration with business
strategy and regarded the mastermind of corporate world. We are expecting to look such
example from our own corporate houses. By ensuring the commitment to the society,
appointment of CSR position at a perfect standard-making decision level, development
relationships with all stakeholders, cooperation a social or CSR audit with the company’s
annual report, corporate sectors of Bangladesh could be make a perfect model like
TATA.