A Research Report on Corporate Social Responsibility Practices in Bangladesh: A Study on Exim Bank PLC

Posted on 14th Dec 2024 01:27:53 AM Management


1.1 INTRODUCTION

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 worldwide and specifically in the developed economies has evolved from classical ‘profit maximizing’ approach to a ‘socially responsible’ approach, where banking business is 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 before. Hence the pressure is mounting on local businesses to converge on international standards of socially responsible business. As a member of the global economy, our country is also aware of the need to take positive initiative to establish an image of environmentally and socially responsible businesses.

‘Corporate Social Responsibility’ or CSR can be defined as Social Responsibility of Corporate to the society. Today CSR is not about philanthropy or charitable work. It refers to something more fundamental. It is about how companies take responsibility for their actions in the world at large. 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. CSR increase the business profitability and can preserve interest of all stakeholders. CSR was more of a charity by affluent or socially responsible business organizations without expecting any financial return. The driving forces of CSR are new concerns and expectations from citizens, consumers and as investors. Increased concern about the damages caused to the environment by economic activities; transparency of business activities brought about by the media and modern information and communication technologies are all contributing to the changing scenario regarding CSR. 

1.2 BACKGROUND OF THE STUDY

The background of the study is an attempt to establish the benefits of CSR to the banking business and the real motives of practitioners engaging in CSR. The research will be a vital contribution to the existing body of knowledge for CSR in the financial services sector in the Bangladesh.

The background of the study regarding this reaches paper are-

  • To achieve a clear idea about the CSR activities of Exim Bank PLC
  • To find out problem and prospects of CSR activities of Exim Bank PLC
  • To throw light on the concept of CSR.
  • To find out CSR practice of banking sector in Bangladesh.
  • To recommend some necessary steps to boost CSR activities.
  • Provide an understanding of the CSR dynamics within the Exim Bank PLC
  • Review the business case for engagement in CSR
  • Establish the business motivation for CSR and the specific issues that drive the implementation of CSR

1.3 NEED FOR THE STUDY

Organizations are profit maximizing entities. However, with changing structure of the business environment, the role of organizations has changed dramatically. Today, organizations are an intrinsic part of social life. Sunder (1997) has proposed a broader definition on the role of organizations, describing them as being a “set of contracts” among employees, customers, managers, shareholders, suppliers, auditors etc.This definition directs organizations to be socially responsible. Hence organizations are social agents contracting with other agents, as a part of chain; their aim goes beyond simple profit-maximization. It is assumed that organizations construct the business environment and agents are the members of social society. Therefore, each individual either voluntarily or involuntarily plays the role of an agent. 

1.4 RATIONAL OF THE STUDY

CSR activities of the corporate house like banking sectors are very argent in the developing country like Bangladesh to achieve the significant development in favor of national image. Though the public commercial banks and government specialized banking corporations have been playing a vital role in this segment according to the government amendments, the private commercial bank also contributing to this segment in a large extent being a responsible social institution to develop the living standard of people of this lag behind area. But the query comes to our mind, whether these PCBs are operating their CSR activities in the right area or not? Whether any significant achievement has achieved our country in this segment or not? Are the people very happy with their CSR activities? In this very study we are looking forward to finding these questions answer correctly.

1.5 SCOPE OF THE STUDY

The scope of this study was based on the information available from the direct interview of employees engaged in banks. The analysis and interpretation prepared in this report was conducted on the executive of banks. The analysis included all the statistical analysis and their interpretations. Vertical and horizontal analysis was also included to show the overall condition of CSR and its relation with different variables. Some suggestions and recommendations were also made in this report as this was the part of our study.

1.6 LIMITATIONS OF THE STUDY

There are some limitations that I have faced in preparing this report. Basically I faced difficulties in collecting data from the different sources. To collect primary data some individual showed no interest in interviewing them. For secondary data, I faced problem of unorganized record of documents keeping by different sources. Preparing the report, I faced some difficulties which are- 

  • Lack of proper information in the websites of the Banks.
  • Lack of necessary information in the official publications of Bank companies.
  • Inexperience and time constraint are the other limitations. 
  • Secondary data were collected from the Annual Reports which may contain biased information.
  • CSR issues and strategy are sensitive in nature and therefore, executives are not readily open to freely discuss some of the key issues.
  • Availability of the interviewee as senior management level officers is often very busy to contribute to research.

This project has been prepared with limited resources. Due to this reasons the justifications stated may not reflect the actual scenario.

Contact us to read the full 'Research Report' internshipreport12@gmail.com

ABBREVIATIONS

AD       Authorized Dealer

BB        Bangladesh Bank

BRPD   Banking Regulation and Policy Department

CC        Cash Credit

CIB       Credit Information Bureau

CSR      Corporate Social Responsibility

DBI      Department of Banking inspection

DD       Demand Draft

EBL      Exim Bank PLC

FDBP    Foreign Demand Bill Purchased

FE        Foreign Exchange

FER Act            Foreign Exchange Regulation Act

HO       Head Office

IBC       Inter Bank Collection

IBCA    Inter Bank Credit Advice

IBDA    Inter Bank Credit Division

ICD      Industrial Division

L/C       Letter of Credit

LIM      Loan against Imported Merchandise

LRA      Lending Risk Analysis

MC      Micro Credit

MT       Mail Transfer

OBC     Other Bank Collection

OD       Over Draft

PAD     Payment against Document

PO       Payment Order

SOD     Secured Overdraft

STD      Short Term Deposit

TIN       Tax Identification Number

TOD     Temporary Overdraft

TT        Telegraphic Transfer

UCPDC Uniform Customs and Practices for Documentary Credit

 

CONTENTS

CHAPTER-1 INTRODUCTION

1.1 Introduction

1.2 Background of the study 

1.3 Need for the study

1.4 Rational of the study 

1.5 Scope of the study 

1.6 Limitations of the study 

CHAPTER-2 REVIEW OF THE LITERATURE 

2.1 Introduction 

2.2 Review of the literature 

2.3 Conclusion 

CHAPTER-3 METHODOLOGY OF THE STUDY

3.1 Introduction 

3.2 Definition of method 

3.3 Data collection procedure 

3.4 Data process and analysis 

3.5 Conclusion 

CHAPTER-4 DATA ANALYSIS AND INTERPRETATION

4.1 Introduction 

4.2 CSR mission of Exim Bank PLC

4.3 CSR vision of Exim Bank PLC

4.4 Actual CSR activities of Exim Bank PLC

4.5 Concept of Beneficiary about CSR

4.6 Problematic Aspects of CSR Practices in Exim Bank PLC

4.7 Prospects of CSR Practices in Exim Bank PLC

CHAPTER-5 FINDINGS, RECOMMENDATIONS AND SUGGESTIONS, CONCLUSION  

5.1 Findings

5.2 Recommendations and Suggestions

5.3 Conclusion

References

Appendices



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