Professional Documents
Culture Documents
Submitted to:
Dr. M A Mannan Professor
Submitted by:
Md. Shahidul Islam ID: 210
A company has a responsibility to make a profit and grow the business- in capitalistic market, economies; management fiduciary duty to create value for shareholders is not a matter for serious debates. Precisely, a company and its personnel also have a duty to obey the law and play by the rules of fair competition. A company has to perform some social responsibilities for the betterment of society which in turn indirectly enhance companys reputation and market expansion.
Business Ethics:
In simple words, ethics means the sense of understanding of a person what is right and wrong. But business ethics has special meaning. Business ethics is the application of ethical principles and standards to business behavior. Business ethics is also known as corporate ethics. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organization. The range and quantity of business ethical issues reflects the interaction of profitmaximizing behavior with non-economic concerns. Interest in business ethics accelerated dramatically during the 1980s and 1990s, both within major corporations and within academia.
Business leaders want their companies to be regarded as exemplary corporate citizens through doing business ethically and meeting the social activities carefully. A companys social responsibility strategy should cover the following elements. These are as follows-
CSR strategy
Figure: Elements of CSR strategy of a company Source: Ronald P. Hill (2003), Corporate Social Responsibility: An Examination of Individual Firm Behavior, p-348
1. Actions to ensure ethical strategy: Company efforts to employ an ethical strategy and observe ethical principles in operating the business. A sincere commitment to observe ethical principles is essential because unethical strategies and conduct are incompatible with good corporate citizenship and socially responsible actions.
2. Actions to support charitable causes, participate in community service: There are many companies who are making charitable contributions, donating money and the time of company personnel to community service endeavors, supporting various worthy organizational causes and reaching out to make a difference in the lives of the disadvantaged. There are some companies in Bangladesh such as Beximco Ltd, Monno Ceramics ltd, DBBL etc.
3. Actions to protect the environment: Social responsibility as it applies to environmental protection means doing more than what is legally required. From a social responsibility perspective, companies have an obligation to be steward of the environment. This also means using the best science and technology to achieve environmental standards.
4. Actions to enhance employee well-being: A company should take action to create a work environment that enhances the quality of life for employees and makes the company a great place to work. Many companies have included engaging job assignments, career development programs and monitoring, rapid career advancement, appealing compensation incentives, adding decision making authority, flexible work schedule etc.
5. Actions to provide workforce diversity: Actions to build a workforce that is diverse with respect to gender, race, national origin, and perhaps other aspects that different people bring to the workplace. Most companies in USA have established workforce diversity programs. Multinationals companies are particularly inclined to make workforce diversity a visible strategic component.
It is the ethical thing to do It improves the firm public image It is necessary in order to avoid excessive regulation
Socially responsible actions can be profitable Improved social environment will be beneficial to the firm It will be attractive to some investors It can increase employee motivation It helps to corrects social problems caused by business It aids the attraction and retention of staff It attracts green and ethical investment It attracts ethically conscious customers It can lead to a reduction in costs through re-cycling It differentiates the firm from its competitor and can be a source of competitive advantage It can lead to increased profitability in the long run
DBL involves itself in charity, social welfare and other benevolent activities towards the promotion of the objective of its foundation which would act as a catalyst in creating awareness on development issues and as a facilitator for building bridges with the common goal of sustainable development of the society, providing direct assistance to various development projects and people. Dhaka Bank Ltd. has formed a five member CSR committee headed by the Managing Director to oversee the overall activities and management of the CSR fund of the bank. Dhaka Bank Foundation, established in 2002 as a non-profitable, non-governmental organization, is solely devoted to the cause of charity, social welfare and other benevolent activities towards the promotion of the objective of the foundation.
Dhaka Bank has taken the decision to provide 2% of the pre-tax profit each year as its CSR activities. CSR activities of DBL are as follows-
Health
Donation of passenger lifts and two haemodialysis machines to BIRDEM Hospital and Tk. 1.2 million per year from 2006 for supporting operating costs.
Donation of Tk. 10 million to Centre for Women and Child Health Hospital for setting up pathological laboratory.
Setting up of a 10-bed ward at the proposed Ahsania Mission Cancer and General Hospital, sponsoring Society for the Welfare of Autistic Children (SWAC).
Disaster relief
Among Dhaka Banks contribution as corporate social responsibility, a few initiatives are donation to Asiatic Society of Dhaka.
Relief operation for flood victims at a cost of Tk. 5.0 million. The bank distributed 10 kg rice, 1 kg pulse, and 1 kg salt to each of the 10,000 distressed families of Araihazar, Sirajdikhan and Belkuchi.
Social welfare
Renovation of the auditorium of Dhaka Reporters Unity. Sponsoring of Anti Drug Debate Festival, Distribution of winter cloths by the employees of the bank.
Sponsoring of Bangladesh Under-19 cricket team. Awareness creation for Road Safety, Blood Donation, Eye Donation, Prevention of AIDS.
Provided financial assistance for Educational Development Trust of Scholastica to support and nurture academically gifted students.
Environment
Sponsored the city beautification program initiated by Dhaka City Corporation by refurbishing
Dhaka Bank Fountain in front of Ministry of Foreign Affairs and Dhaka Bank Park in front of
Dhaka Bank Head Office, beautification at Jashimuddin Crossing at Uttara costing 1.5 m, and also in front of Dhaka Bank Head Office costing 1.2 m.
Business Ethics is the criteria of measuring judgment of what company should do or not. It is guideline of taking proper decisions and implementation. Corporate Social Responsibility (CSR) plays very significant role of Expansion Companys growth involving local community and providing the quality of life of its stakeholders. Every company whether it is big or small should have CSR strategy compatible with its corporate strategy. It seems to be unnecessary expenditure to general people but it has great impact of companys long term profit and reputation. It varies from company to company, region to region, country to country. DBL has a special CSR committee who continuously oversee the activities and monitoring its proper utilization of fund. So it can be said that CSR is a part and parcel of corporate strategy. It is an indirect investment of company.
References
1. Arthur A. Thompson, A.J Strickland, J. E. Gamble and Arun K. Jain (2010), Crafting and Executing Strategy: The Quest for Competitive Advantage (16th Edition), Tata McGraw Hill, New Delhi, P:323-351 2. Cooter, R. and T. Ulen (1988). Law and Economics. New York, Harper Collins. 3. Desai, M. (1991). Issues concerning setting up of social work specializations in India. International Social Work, 34, 8395 4. Enderle, Georges (1999). International Business Ethics. University of Notre Dame Press. p. 1. 5. F. Milton (1970). "The Social Responsibility of Business is to Increase Its Profits". The New York Times Magazine. Retrieved March 11, 2001 6. Macmillan, F. (2006). Public interest and the public domain in an era of corporate dominance, pp. 4669 7. Smith, N. H. (1997). Strong Hermeneutics: Contingency and Moral Identity. London: Routledge. 8. Storey, D.J. (1985). "THE PROBLEMS FACING NEW FIRMS [1]". Journal of Management Studies 22 (3): 327. 9. Watson T.J (2003). 'Ethical Choice in Managerial Work: The Scope for Managerial Choices in an Ethically Irrational World', Human Relations, 56(2): 16785 10. www.tutor2.net/ CSR/corporate-social-responsibility-.htm 11. www.dhakabank.com/ CSR/about_mission.php.htm 12. www.reportbd.com/ CSR/Dutch, city.htm 13. www.wikipedia.en/ CSR/Modern_Business_Ethics.htm