CSR Practice in Bangladesh: Harmony Between Business and Society

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.

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Author: Tithe Farhana

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.

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