Introduction

Business houses, right from the inception of human race, have been regarded as
constructive partners in the communities in which they operate. Though they
have been instrumental in creating employment, wealth, products and services,
yet the pressure on business to play a role in social issues involving
employees, stakeholders, society, environment, government etc. is continuously
increasing. The society is questioning the existence of business houses,
especially in the wake of the scandals and scams conducted by the business
houses like UTI, Enron, and WorldCom. In response to it, the organizations
around the globe are forced to wake up to the need for being committed towards
Corporate Social Responsibility.
Over the years this concept of Corporate Social Responsibility (CSR) has
gained unprecedent momentum in business and public debate and has become a
strategic issue crossing the departmental boundaries, and affecting the way in
which a company does business. It has become so important that many
organizations have rebranded their core values to include social
responsibility. Almost all corporate websites/ policies/reports talk about
their endeavors for CSR which has become a way of ensuring that the
organization is fulfilling all the obligations towards society and thus is
eligible for the license to operate. It assures that the organization can grow
on sustainable basis.

These activities of CSR ranging from small donations to bigger projects for
social welfare sustainable practices differ from organization to organization
depending on the resources available to an organization for undertaking
sustainable practices. Business practices of big and successful companies,
with plenty of resources at their end, have set the trend for being committed
to sustainable practices. Such business houses around the globe show their
commitment to social responsibility. In India, the initiatives of Dabur India
Limited, for example, which commenced 'Sundesh' in 1993, a non-profit
organization, with an aim to promote research and welfare activities in rural
areas are appreciable. On the same track to fulfill its urge to do something
for community, Bharat Petroleum Corporation Limited has adopted 37 villages as
their responsibility to develop in all walks of life. It has made efforts to
make them self-reliant, provided them fresh drinking water, sanitation
facilities, medical facilities, vocational training and literacy camps. Around
its industrial facilities, Tata Group has created towns and cities like
Jamshedpur, Mithapur, Babrala for the benefit of its employees. Cadbury India,
Glaxo and Richardson Hindustan are some of the companies which are helping
farmers to grow crops which in turn shall serve as raw materials for them
(Tripathi & Reddy, 2006).
Although the implementation of such activities involves time, effort and
resources yet the business houses have realized that it (CSR) is one of the
important ways in which an organization can distinguish itself from its
competitors. The tangible and intangible benefits associated with for
organization are immense. A powerful tool like CSR not only enhances the brand
image and reputation of the business but also leads to improvement in sales
and customer loyalty, and increased ability to attract and retain employees.
By capitalizing on it, the organizations can improve their financial
performance and attract more investment with immense economic value. The word
CSR has, as a result, occupied very important place in the plans and

strategies of the organizations in the present era.(1)

Definition of Corporate Social Responsibility

Corporate social responsibility (CSR), also known as corporate responsibility,
corporate citizenship, responsible business, sustainable responsible business
(SRB), or corporate social performance- is a form of corporate
self-regulation integrated into a business model. Ideally, CSR policy would
function as a built-in, self-regulating mechanism whereby business would
monitor and ensure its adherence to law, ethical standards, and international
norms. Business would embrace responsibility for the impact of their
activities on the environment, consumers, employees, communities, stakeholders
and all other members of the public sphere. Furthermore, business would
proactively promote the public interest by encouraging community growth and
development, and voluntarily eliminating practices that harm the public
sphere, regardless of legality. Essentially, CSR is the deliberate inclusion
of public interest into corporate decision-making, and the honoring of a
triple bottom line: People, Planet, Profits. The practice of CSR is subject to
much debate and criticism. Proponents argue that there is a strong business
case for CSR, in that corporations benefit in multiple ways by operating with
a perspective broader and longer than their own immediate, short-term profits.
Critics argue that CSR distracts from the fundamental economic role of
businesses; others argue that it is nothing more than superficial windowdressing; others yet argue that it is an attempt to preempt the role of
governments as a watchdog over powerful multinational corporations. Corporate
Social Responsibility has been redefined throughout the years. However, it
essentially is titled to aid to an organization's mission as well as a guide
to what the company stands for and will uphold to its consumers.(2)
Other definitions of CSR:
The notion of companies looking beyond profits to their role in society is
generally termed corporate social responsibility (CSR).It refers to a company
linking itself with ethical values, transparency, employee relations,
compliance with legal requirements and overall respect for the communities in
which they operate. It goes beyond the occasional community service action,
however, as CSR is a corporate philosophy that drives strategic decisionmaking, partner selection, hiring practices and, ultimately, brand
development.(3)
South China Morning Post, 2002)
The social responsibility of business encompasses the economic, legal,
ethical, and discretionary expectations that society has of organizations at a
given point in time.(4)
Archie B. Carroll, 1979
CSR is about businesses and other organizations going beyond the legal
obligations to manage the impact they have on the environment and society. In
particular, this could include how organizations interact with their
employees, suppliers, customers and the communities in which they operate, as

well as the extent they attempt to protect the environment.(5)

The Institute of Directors, UK, 2002
CSR is a means of analyzing the inter-dependent relationships that exist
between businesses and economic systems, and the communities within which they
are based. CSR is a means of discussing the extent of any obligations a
business has to its immediate society; a way of proposing policy ideas on how
those obligations can be met; as well as a tool by which the benefits to a
business
for
meeting
those
obligations
can
be
identified.

Corporate

Social

Responsibility:

Unlocking

the

value

According to the results of a global survey in 2002 by Ernst & Young, 94 per
cent of companies believe the development of a Corporate Social Responsibility
(CSR) strategy can deliver real business benefits, however only 11 per cent
have made significant progress in implementing the strategy in their
organization. Senior executives from 147 companies in a range of industry
sectors across Europe, North America and Australasia were interviewed for the
survey. The survey concluded that CEOs are failing to recognize the benefits
of implementing Corporate Social Responsibility strategies, despite increased
pressure to include ethical, social and environmental issues into their
decision-making processes. Research found that company CSR programs influence
70 per cent of all consumer purchasing decisions, with many investors and
employees also being swayed in their choice of companies. "While companies
recognize the value of an integrated CSR strategy, the majority are failing to
maximize the associated business opportunities," said Andrew Grant, Ernst &
Young Environment and Sustainability Services Principal. "Corporate Social
Responsibility is now a determining factor in consumer and client choice which
companies cannot afford to ignore. Companies who fail to maximize their
adoption
of
a
CSR
strategy
will
be
left
behind."(6)

Arguments Against
Activities

Business

Performing

Social

Responsibility

The best-known argument against business performing social responsibility

activities has been advanced Milton Friedman, one of America's most
distinguished economists. Friedman argues that making business managers
simultaneously responsible to business owners for reaching profit objectives
and to society for enhancing social welfare sets up a conflict of interest
that could potentially cause the demise of business as it is known today.
According to Friedman, this demise will almost certainly occur if business is
continually forced to perform socially responsible actions that directly
conflict
with
private
organizational
objectives."
Friedman also argues that to require business managers to pursue socially
responsible objectives may, in fact, be unethical, because it compels managers
to spend money on some individuals that rightfully belongs to other
individuals.

In a free enterprise, private property system, a corporate executive is an

employee of the owners of the business. He has direct responsibility to his
employers. That responsibility is to conduct the business in accordance with
their desires, which generally will be to make as much money as possible while
conforming to the basic rules of society, both those embodied in law and those
embodied in ethical custom. Insofar as his actions reduce returns to
stockholder, he is spending their money. Insofar as his actions raise the
price
to
customers,
he
is
spending
the
customer's
money.
An example that Friedman could use to illustrate his argument is the Control
Data Corporation. Former chairman William Norris involved Control Data in many
Social responsible programs that cost the company millions of dollars- from
building plants in the inner city and employing a minority workforce to
researching farming on the Alaskan tundra. When Control Data began to incur
net losses of millions of dollars in the mid-1980s, critics blamed Norris's
"do-gooder" mentality. Eventually, a new chairman was installed to restructure
the
company
and
return
it
to
profitability.(7)

Corporate

Social

Responsibility

in

Bangladesh

CSR concepts and practices in Bangladesh have a long history of philanthropic

activities from time immemorial. These philanthropic activities included
donations to different charitable organizations, poor people and religious
institutions. Till now, most of the businesses in Bangladesh are family owned
and first generation businesses. They are involved in community development
work in the form of charity without having any definite policy regarding the
expenses or any concrete motive regarding financial gains in many instances.
Moreover, most of the SMEs fall under the informal sector having low
management structure and resources to address the social and environmental
issues. These limitations drive the top management of local companies to think
only about the profit maximization rather than doing business considering the
triple bottom line: profit, planet and people (CSR definition of Lotus
Holdings).
The discussions on CSR practices in Bangladesh in its modern global terms, are
relatively new, but not so for the concept itself. Because, being a part of
the global market, it is difficult to ignore CSR standard specifically in the
export sector.
In general, it is true that in Bangladesh, the status of
labor rights practices, environmental management and transparency in corporate
governance are not satisfactory, largely due to poor enforcement of existing
laws and inadequate pressure from civil society and interest groups like
Consumer Forums. Globally, as CSR practices are gradually being integrated
into international business practices and hence is becoming one of the
determining factors for market accesses, it is becoming equally instrumental
for local acceptability. A focus on CSR in Bangladesh would be useful, not
only for improving corporate governance, labor rights, work place safety, fair
treatment of workers, community development and environment management, but
also
for
industrialization
and
ensuring
global
market
access.
Since, CSR entails working with stakeholders it is important to work from
within and diagnose the stakeholders; concerns so that CSR is truly embedded
in the companies. By now, many CSR dimensions are practiced in Bangladesh.
The SMEs largely depend upon export. The US and EU buyers set guidelines to

Readymade Garment (RMG) industry to ensure the standards. The 1992 Harkin's
Bill and subsequent consumer and industry boycott of RMG products by USA and
the consequent remedial moves by local RMG sector is one example. Moreover,
some buyers from EU visited the sites of recently collapsed garments
factories. A temporary ban was also imposed on shrimp export to the EU on
health and hygienic standard and appropriate remedial action followed in that
instance too. But, some of the exporters found difficulty in convincing the
US/EU buyers to have positive attitude towards Bangladesh due to inadequate
CSR
practices.
Businessmen need to recognize the implications of CSR for business activities.
Companies are facing the challenges of adapting effectively to the changing
environment in the context of globalization and in particular in the export
sector. Although Consumer Rights Movement, enforcement of government
regulations and a structured view regarding the economic importance of CRS are
not yet so widespread in the corporate world in Bangladesh, companies have
gradually been attaching more importance to CSR in the local market as well.
They are increasingly aware that CSR can be of direct economic value.
Companies can contribute to social and environmental objectives, through
integrating CSR as a strategic investment into their core business strategy,
management instruments and operations. This is an investment, not a cost,
much like quality management. So, business organizations can thereby have an
inclusive financial, commercial and social approach, leading to a long term
strategy
minimizing
risks
linked
to
uncertainty.
CSR in Bangladesh can also contribute a lot to community development. The
corporate house can develop the community by creating employment, providing
primary education, contribution to infrastructure development like road and
high-ways and addressing environmental concerns. This is more relevant for a
country like Bangladesh where the government interventions in these fields
augmented by corporate alliance can go a long way in developing the economy,
society
and
environment.
Lack of enforcement of Industrial Laws and Regulations, weak unions, absence
of consumer rights groups and high level of corruption within the regulatory
bodies make CSR violation rampant in Bangladesh. Two most significant foreign
exchange sources is the RMG sector and the overseas manpower export.
Unbelievably low compensation, working hours, health/hygiene/sanitation
conditions, fire safety and various types of abuse are so common and to the
extent of inhumanity that will shock any conscientious individual to the core.
Recently, the RMG sector employees have embarked on a industry wide movement
to
establish
their
rights.
Overseas workers are mostly exploited by recruiting agencies whereas these
rural and mostly illiterate people have to sell all their belongings becoming
paupers and borrow money at very high interest. Owing to cheating by the
recruiters and unlawful behavior by the overseas employers, many of them are
compelled to come back as beggars, some after long confinement in overseas
jails. Hardly any remedy is available from the law enforcing agencies. Many
industrial units run with half-century old machinery producing fatal air, soil
and water pollutions. More modern factories also don't care to install
Effluent Treatment Plants. Starting from FMCGs, vegetables, fruits and all
other consumable goods, adulteration, abnormal ripening at times with
poisonous elements, keeping fish fresh with applying deadly formalin and all
other malpractice is rampant and carefree. Good governance and efficient law

enforcing

agencies

can

only

solve

these

plights.

Although a developing country, because of global competitiveness and demand,

the CSR practices and standards are being gradually implemented in Bangladesh.
But there is a long way to go. There are challenges to implement CSR properly
in Bangladesh. Ultimately CSR practices should be better practiced in
Bangladesh for better and enhanced performance. In the publication "Good
Governance and Market-Based Reforms: A Study of Bangladesh, Fara Azmat and Ken
Coghill relates Good Governance with CSR by discussing the good governance
indicators of regulatory quality, rule of law and control of corruption in the
context of Bangladesh and analyses how lack of good governance indicators
affects the success and sustainability of reforms and contributes to the lack
of
business
ethics
and
CSR
in
Bangladesh.(8)

Some Example of Performing Corporate Social Responsibility

Activities
Corporate Social Responsibility of IBM:
# Education- IBM realizes the worldwide power and importance of education.
Through major initiatives such as Reinvestment Education, KidSmart, and
project FIRST, the company hopes to promote knowledge and skills that will
ensure
that
communities
thrive
around
the
globe.
# Adult training and workforce development- IBM invests in helping others to
use technology as a powerful tool in education and job training programs for
adults. There is a special focus on using technology to broaden opportunities
and strengthen programs available to adults in need of new skills and
employment.
# Arts and Culture- IBM's support of the arts steam from its strong commitment
to bettering its communities. By joining with libraries, museums, and other
cultural institutions in exciting partnerships that leverage IBM expertise,
the company demonstrates the critical role of technology plays in enhancing
the
arts.(9)

Corporate Social Responsibility of GRAMMENPHONE:

#
Safe
Motherhood
and
Infant
Care
ProjectGrameenphone Safe Motherhood & Infant Care Project is thus designed to ensure
free, yet quality, safe motherhood and infant care services to poor mothers
and their infants throughout the country. It also aims to assist in necessary

infrastructure
especially

development
in
the

and

extension of
hard-to-reach

basic
and

healthcare
remote

services,
areas.

# Education- In collaboration with Grameen Shikkha, an organization of the

Grameen Bank family, Grameenphone provides scholarship to some 100 bright but
underprivileged students at different academic levels through a scholarship
fund annually. It also provides educational support to a number of special
schools - Tauri Foundation, HANS, CDC, and SEID Trust with an objective to
aid in the learning process of the gifted children in our society.
Grameenphone is also a proud partner of the Enrichment Program of Bishsho
Shahitto Kendro through which free books are distributed. It recently
initiated a CSR project to publish and distribute illustrated publications on
the Liberation War for school-going children, with the objective to inspire
them with the heroics of our freedom-fighters.
# Fight against HIV/AIDS- One of the eight Millennium Development Goals for
Bangladesh is to halt the spread of HIV and AIDS by 2015. Hence, Grameenphone
is committed to work closely with Bangladesh Government and concerned
development agencies to achieve that target, with the aim to raise awareness
and advocate for necessary policy reforms on HIV/AIDS through different
communication channels.(10)

Corporate

Social

Responsibility

of

AKTEL:

# Aktel in Bishwa Estema- Aktel had taken initiative of executing various

activities in Bishwa Estema, the 2nd largest Muslim gathering in the world
after Holy Hajj in which millions of people came from different parts of the
world to participate in this pilgrimage. Among the initiatives, are to provide
instant primary aids to the pilgrims through free medical check-up by a team
of certified doctors' at the Aktel voluntary medical service point from
morning to night. Aktel also served free pure drinking water for the pilgrims
of
Bishwa
Estema.
# Aktel stands besides cold affected underprivileged people- On a CSR campaign
Aktel has distributed blankets to the underprivileged people of the country.
(11)

Corporate

Social

Responsibility

of

Dutch-Bangla

Bank:

#
EducationDutch-Bangla
Bank
provides
a
lot
of
scholarship
to
underprivileged students for their education. It has given support many
students for higher education. It also arranges Olympiad of Mathematics to
develop
students'
mathematical
knowledge.
# Environmental Development- To develop environment of Bangladesh it has taken
tree
plantation
programs
across
the
country.
# Social Development- It has taken some necessary steps against dowry and
drugs
which
are
the
curse
of
Bangladesh. (12)

Corporate

Social

Responsibility

of

UNILEVER

BANGLADESH

# Public Health- Unilever Bangladesh (pvt.) limited implements many programs

on public health. They already have taken initiative for free dental check up.
They create consciousness among the rural people about Health by their many
activities.
# Arts and Cultural development- In Bangladesh for cultural development
Unilever Bangladesh (pvt.) limited has done many things giving sponsor to many
cultural
organization.(13)

References
1. Business Intelligence Journal - January,2009
2. Wikipedia,
3. Michael McComb, 'Profit to be found in companies that care,' South China
Morning Post, April 14, 2002, p. 5.

4. Archie B. Carroll, 'A Three-Dimensional Conceptual Model of Corporate

Performance,' Academy of Management Review, 1979, Vol. 4, No. 4, p. 500.

5. Ruth Lea, 'Corporate Social Responsibility: IoD Member Opinion Survey,'

The Institute of Directors, UK, November, 2002, p10.

6. Corporate Social Responsibility, ASOCIO Policy Paper June 2004

7. Samuel C. Certo & S. Trevis Certo, Modern Management, 10th edition.
8. www.ammado.com, Website of Ammado Foundation.
9. Report on Corporate Social Responsibility of IBM, 2009
10.

Annual CSR publications of Grameenphone, 2009

11.

Aktel CSR Campaign, 2009

12.

CSR activities of Dutch-Bangla Bank,2009

Report on Corporate Social Responsibility of Unilever Bangladesh, 2009

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