CSR practices of private commercial bank’s in Bangladesh: A comparative study Md. Abdul Kaium Masud†
CSR movement has gathered great momentum over the past number of years and is now regarded as being at this most prevalent. CSR is presently one of the most discussed topics by government, by non-government and by business itself. The purpose of the study is to provide deep understanding of the practices of CSR of PCBs in Bangladesh. The study has been taken to observe different regulatory framework (CSR areas) of CSR of PCBs and its contribution. This study found CSR practices of PCBs are quite scant rather than profit. The study reveals that PCBs are trying to swell their contribution in accordance with Bangladesh Bank proper guidelines.
Key Words: Corporate Social Responsibility, Private Commercial Bank, Profit, Sustainability.
Lecturer (Accounting), Dept. of Business Administration, IBAIS University, Bangladesh, Email: firstname.lastname@example.org
The old proverb, “Everybody talks about society, but nobody does anything about it” is not valid in this century. The role of business worldwide and specifically in the developed economies has evolved over the last few decades 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. One can identify so many reasons for shifting the role of business from classical concept to a responsible business concept, but negative impression of stakeholders on the enterprise would get a higher priority among others. In one hand, enterprises create wealth and job opportunities for the society and on the other; they are pollute and destroy environment and ecology with devastating impact on human health and biodiversity worldwide (Alimullah (2006). To address the social problems or the problems of the stakeholders, the business community evolved a new approach in their business strategies named CSR and through CSR enterprises are intent to strike a balance between economic and social goals, where resources are used in a rational manner and social needs are be addressed responsibly. CSR can be viewed as a comprehensive set of policies, practices, and programs that are integrated into business operations, supply chains, and decision making processes throughout the company and include responsibilities for current and past actions as well as adequate attention to future impacts. CSR focuses vary by business, by size, by sector and even by geographic region. The area of CSR is quite big and it includes all the good practices that increase the business profitability and can preserve interest of all stakeholders. Bangladesh is a developing country. Because of global competitiveness and demand, the CSR practices and standards are being implemented in Bangladesh (Alimullah, 2006). But we are yet go a long way. However, it is regretful that though internationally it is being practiced widely, Bangladesh
is still lagging behind (Azim et al. 2011). There are challenges to implement CSR properly in Bangladesh. Ultimately CSR practices should be better practiced in Bangladesh for better and enhanced performance. Currently in Bangladesh, CSR is a matter of self interest for the corporate sector (Azim A & Islam, 2009). The study has taken an attempt to observe the CSR activities and practices of Private Commercial Banks in Bangladesh. Bangladesh Bank is the main regulatory authority of banking sector of the country. Now a day Bangladesh Bank is very concern of the matter. Bangladesh bank has taken initiative to encourage private commercial banks in CSR activities for this NBR issued rules on tax rebate for CSR activities. Objectives of the study:
To gather the knowledge about CSR activities of private CBs of Bangladesh.