Business is an attached and entrenched part of the society. In addition to its economic role in society, business also has several other roles and accountabilities towards society. Many reputed multinational companies doing business and interacting with the society as well. The objective of the study is to highlight the current status of CSR practice of MNCs in Bangladesh and activities of GrameenPhone is used as example.
The empirical findings of MNCs’ management of CSR in routine stakeholder relations, with employees, consumers, environment and communities are presented. The case study design was adopted as a research strategy to study the CSR phenomenon in Bangladesh because GrameenPhone Ltd. is the pioneer in the relevant sector. An in-depth study through multiple methods, for example: exploratory study, interview, were conducted to organize data. The samples of the study for direct interview consist of 34 managers mostly from top management or department head at the corporate head office. The research is based on ‘non probability’ sampling method. Sample units were selected based on the potential for information about CSR practices. Primarily Annual reports of last five years and various CSR publications were used to analyze current practices in the field.
What is CSR?
Corporate social responsibility, also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business or corporate social performance, can be defined as the "economic, legal, ethical, and discretionary expectations that society has of organizations at a given point in time". The economic responsibilities refer to society's expectation that organizations will produce goods and services that are needed and desired by customers and sell those goods and services at a reasonable price. The legal responsibilities relate to the expectation that organizations will comply with the laws set down by society to govern competition in the marketplace. Organizations have thousands of legal responsibilities governing almost every aspect of their operations, including consumer and product laws, environmental laws, and employment laws. Regulation in itself is unable to arrange every aspect of a corporation's operations. The ethical responsibilities concern societal expectations that go beyond the law, such as the expectation that organizations will conduct their affairs in a fair and just way. The rise of ethics training inside corporations, some of it required by government regulation, is a driver credited with changing the behavior and culture of corporations. Finally, the discretionary responsibilities of corporations refer to society's expectation that organizations be good citizens.
The Rationale for CSR
The rationale for CSR has been articulated in a number of ways. In essence it is about building sustainable businesses, which need healthy economies, markets and communities. The key drivers for CSR are:
▪ Ethical consumerism - over the last two decades can be linked to the rise of CSR. Industrialization in many developing countries is booming as a result of technology and globalization. Consumers are becoming more aware of the environmental and social implications of their day-to-day consumer decisions and are beginning to make purchasing decisions related to their environmental and ethical concerns.
▪ Transparency and trust - business has low ratings of trust in public perception. There is increasing expectation that companies will be more open, more accountable and be prepared to report publicly on their performance in social and environmental arenas.
▪ Increased public expectations of business - globally companies are expected to do more than merely provide jobs and contribute to the economy through taxes and employment. As corporations pursue growth through globalization, they have encountered new challenges that...