Posted on 2nd Jan 2025 12:00:31 AM Finance
Abstract
Corporate social responsibility (CSR) is now not a matter of the developed countries only but it is getting increased attention in developing countries like Bangladesh also. A strong perception has developed in recent years among the business managers in Bangladesh that they need to manage their organizations in a socially responsible way for economic viability and long term sustainability in the competitive marketplace. The paper aims to clearly understand the nature of CSR, investigate its evolution in Bangladesh, identifies the opportunities and challenges of CSR practices of banking sector in our country, and also make some recommendations to overcome those challenges and make the CSR practice a success. Primary and Secondary data collection methods were used to conduct the study. From the study it is anticipated that there will be tremendous growth of CSR initiatives by many national and multinational companies in future.
Key words: Corporate Social Responsibility, Social performance, Challenges and opportunities, Societal Marketing.
1.1 Introduction
Social concerns are not a new area of interest for the business world. Corporate social responsibility (CSR) simply refers to strategies by which corporations or firms conduct their business in a way that is ethical and society friendly. CSR can involve a range of activities such as working in partnership with local communities, socially sensitive investment, developing relationships with employees, customers and their families, and involving in activities for environmental conservation and sustainability.
Nowadays, CSR also sometimes interchangeably used as corporate responsibility, corporate citizenship, corporate shared value, socially responsible business, corporate sustainability, responsible business and corporate social opportunity. It is a concept whereby business organizations consider the interest of society and broader environment by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders as well as their surrounding environment. These conscious behavior shows that the organizations have to comply with rules and regulations and voluntarily take initiatives to improve the well-being of their employees and their families, customers as well as for the local community, society and environment at large.
In a world where populations are growing, natural resources are stressed, communities are forced to do more with less, and our consumers’ expectations are expanding, we understand that sustainability is core to our business continuity and depends on how we create long-term value. Experts belief that a business can only be sustainable if the people and communities that it touches are sustainable and enriched along the way.
That means, for any business to sustain and grow in the long term, it cannot see itself as being isolated from the community around it. The community must mean people and the broader environment in which we live. Thus business should invest responsibly, avoiding projects where the potential for environmental damage outweighs the economic benefits, and ensure the welfare of different internal and external stakeholders.
In the 19th century, several industrialists in Europe and the US were noted for their concern for society, housing, welfare, charity to workers and their families. With the advent of the 20th century and the general adoption of legislation and social welfare systems, the spirit of charity and philanthropy then prevailing gave way to more formal relations and institutional structures. (European Foundation for the Improvement of Living and Working Conditions, 2003)
However, CSR is still in its infancy in developing countries and is likely to continue evolving in the future. Though the concept of corporate social responsibility (CSR) has been evolving for decades, no single all-encompassing meaning has as yet been achieved.
The concept of CSR is still very new in Bangladesh. In recent years there is considerable pressure from various agencies for companies to act responsibly and be accountable for the impacts they have on social, political and ecological environments.
CSR is important, therefore, because it influences all aspects of a company’s operations- from sourcing to final servicing. Conscious consumers want to buy products from companies they know, believe, & trust, suppliers want to form business partnerships with companies they can rely on, employees want to work for companies they respect & get honor, reputed large investors want to support firms that they perceive to be socially responsible, and welfare, nonprofits and NGOs want to work together with companies seeking practical solutions to common shared goals. The study tries to provide a broad view of CSR, its evolution particularly in Bangladesh, the opportunities originated from CSR practice and the challenges faced by financial organizations in Bangladesh while practicing and implementing CSR programs.
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 research paper are–
1.3 Statement of the Problem
Corporate Social Responsibility is a form of corporate self-regulation integrated into a business model. CSR it is about the relationship of corporations with society as a whole. The multinational companies are working all most every area of society that brings social welfare. Generally, they work in the area of human development, environmental development, urbanization, protection of customer rights, educational sector, and cultural sector, community development etc. In Bangladesh, there are so many banks are available that are performing CSR activities.
1.4 Research Questions
1.5 Justification for the Study
There is an increase in the quest for social responsibility from the business sector because of its importance to the development of any country (Terungwa, 2011). Therefore, corporate social responsibility is not a threat to achievement of economic goals of a corporation; rather CSR is an opportunity and can be the basis of economic development of firms in terms of competitive advantage in global market (Belal, 2008). It is consequently needful for companies to be socially responsible so as to build their reputation, which may in turn affect their consumers' patronage. This research can find the condition of CSR projects in the companies and give recommendation to the government to make a rule which will be mandatory by all profitable companies.
1.6 Scope of the Study
The discussion of the study is based on empirical evidences. So that accessibility of data hinders the study to make more depth to visualize CSR information. Due to lack of knowledge and awareness of the stakeholders, reporting on CSR is still debating. It is mentioned here that the author has the particular interest to screen the standard guidelines to report CSR activities for commercial banks in Bangladesh.
1.7 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. As I depended on only the secondary sources for preparing the report, I had to knock various researchers for collecting information. For secondary data, I faced problems of unorganized record of documents keeping by different sources.
Preparing the report I faced some difficulties which are-
CONTENTS
1. INTRODUCTION
1.1 Introduction
1.2 Background of the study
1.3 Statement of the Problem
1.4 Research Questions
1.5 Justification of the study
1.6 Scope of the Study
1.7 Limitations of the Study
2. OBJECTIVES
3. THEORETICAL FRAMEWORK
3.1 Definition of Corporate Social Responsibility
3.2 Evolution of CSR in Bangladesh
3.3 CSR in Bangladesh
3.4 Opportunities of CSR of Banking Sector in Bangladesh
3.5 Challenges of CSR of Banking Sector in Bangladesh
4. LITATURE REVIEW
5. METHODOLOGY
5.1 Sources of Data Collection
i. Primary data
ii. Secondary data
5.2 Data Analysis
i. Hypothesis Testing Analysis
ii. Regression Analysis
6. DESCRIPTIVE ANALYSIS AND EMPIRICAL FINDINGS OF CSR
6.1 Descriptive Analysis
6.1.1 Highlights of CSR Activities in Banks
6.1.2 Trends of Sectorial Pattern of Direct CSR Expenditure Reported by the Banking Sector
6.1.3 A Comparative Analysis of CSR Practices by the Ten Selected Private Commercial Banks
6.2 Hypothesis Testing
6.3 Regression Analysis
7. FINDINGS, RECOMMENDATIONS AND CONCLUSION
7.1 Findings of the Study
7.2 Recommendations
7.3 Conclusion
Bibliography
Appendix
Questionnaire
Corporate, Social, Responsibility, CSR, Opportunities, Challenges, Banking, Sector, Bangladesh, Theoretical, Framework, Hypothesis, Testing, Analysis
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