Table of Contents

EXECUTIVE SUMMARY .................................................................................................................................. 1

1. INTRODUCTION ............................................................................................................................................ 2
2. OBJECTIVE OF THE STUDY ....................................................................................................................... 2
2.1 BROAD OBJECTIVE ........................................................................................................................................ 2
2.2 SPECIFIC OBJECTIVE ..................................................................................................................................... 2
3. WHAT IS CORPORATE SOCIAL RESPONSIBILITY (CSR)? ................................................................ 3
4. CSR ACTIVITIES IN BANGLADESH ......................................................................................................... 4
5. COMPANY PROFILE (MERCANTILE BANK LIMITED)....................................................................... 6
5.1 COMPANY BACKGROUND .............................................................................................................................. 7
5.2 VISION .......................................................................................................................................................... 7
5.3 MISSION ........................................................................................................................................................ 7
5.4 OBJECTIVES (STRATEGIC OBJECTIVES) .......................................................................................................... 7
5.5 CORE VALUES................................................................................................................................................ 7
5.5.1 Customer delight ................................................................................................................................... 7
5.5.2 Innovation ............................................................................................................................................. 7
5.5.3 Ethical Values ....................................................................................................................................... 8
5.5.4 Caring for Human Resources ................................................................................................................ 8
5.5.5 Commitment ......................................................................................................................................... 8
5.5.6 Socially Responsible ............................................................................................................................. 8
5.5.7 Shareholders Value ............................................................................................................................... 8
5.6 CORPORATE PRIORITIES ................................................................................................................................ 8
5.7 MERCANTILE BANK FOUNDATION (MBF) .................................................................................................... 9
5.7.1 Objectives of Mercantile Bank Foundation .......................................................................................... 9
6. CSR ACTIVITIES OF MERCANTILE BANK LIMITED ........................................................................ 11
6.1 SEGMENT WISE CSR ACTIVITIES ................................................................................................................. 12
6.2 Mercantile Bank Award-2017 ................................................................................................................ 13
6.3 Education Scholarship Program ............................................................................................................. 14
6.4 Responsibility to the Society.................................................................................................................. 15
6.5 Education: teaching the young and spreading knowledge ..................................................................... 17
6.6 Health and Medical ................................................................................................................................ 17
6.7 Arts & Culture ....................................................................................................................................... 18
6.8 Celebration of Bangla New Year-1424 .................................................................................................. 18
6.9 Traditional Games and Sports ................................................................................................................ 18
6.10 Care to Environment: Encouraging new thinking ................................................................................ 18
6.11 Contribution to the Economy ............................................................................................................... 19
6.12 Involving Employees in the CSR Approach ........................................................................................ 19
6.13 Raising CSR awareness among the Group’s employees ...................................................................... 19
6.14 Informing and encouraging dialogue ................................................................................................... 19
7. COMPANY PROFILE (PRAN-RFL GROUP) ........................................................................................... 20
7.1 COMPANY BACKGROUND ............................................................................................................................ 21
7.2 CORPORATE MISSION .................................................................................................................................. 21
7.3 VISION ........................................................................................................................................................ 21
7.4 VALUES ....................................................................................................................................................... 21
7.5 ACHIEVEMENTS........................................................................................................................................... 22
8. CSR ACTIVITIES OF PRAN-RFL GROUP ............................................................................................... 23
9. COMPARISON OF CSR ACTIVITIES WITH OTHER COUNTRIES .................................................. 24
 9.1 CSR ACTIVITIES IN BANGLADESH............................................................................................................... 24
9.2 CSR ACTIVITIES IN INDIA ........................................................................................................................... 25
9.3 CSR ACTIVITIES IN UK ............................................................................................................................... 26
10. RECOMMENDATION ................................................................................................................................ 27
11. CONCLUSION ............................................................................................................................................. 28
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 Executive Summary
Corporate Social Responsibility (CSR) or Sustainable Responsible Business 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 their
adherence to law, ethical standards and national or international norms. Business would
embrace responsibility for the impact of their activities on the environment, consumers,
employees, communities, stockholders and all other members of the public sphere. It is a
commitment to improve community well-being through discretionary business practices and
contributions of corporate resources. However, it is not charity but it is a core business strategy
of an organization.

Today Corporate Social Responsibility is becoming an increasingly important activity to

businesses nationally and internationally. CSR is the way in which an organization strikes a
balance between economic, social and environmental imperatives on the one hand and the
expectations and welfare of the shareholders on the other. This implies that Social
responsibility is the responsibility of an organization for the impacts of its decisions and
activities on society and environment, through transparent and ethical behavior that is
consistent with sustainable development and the welfare of the society.

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 1. Introduction
Corporate Social Responsibility (CSR), in recent times, has become an integral part of
business. The contribution of organizations in this regard is of paramount importance
considering their unique position in the economy. CSR practices by organizations not only
improve their own standards but also affect the socially responsible behaviors of other
businesses. CSR ensures trade-off between economic and social goals to encourage the
efficient use of resources. CSR is not just charity and compliance issue rather it is an attempt
to respond to all the stakeholders’ expectations more efficiently and in a responsible manner.
The stakeholders of the business include the employees, customers, suppliers, government,
interest groups (such as environmental groups) and wider societal interests on whom the
operations of the business may have an impact.

2. Objective of the study

2.1 Broad Objective

The broad purpose of the study is concerned with the revelation of gradual adoption of CSR
activities by the companies in Bangladesh in pursuit of sustainable growth and development in
the country in comparison with other countries around the globe.

2.2 Specific Objective

The specific objectives which are related with the study are given below:
➢ To Study the concept of CSR
➢ To Focus on the Present Status of CSR in Bangladesh.
➢ To Study the Major areas of CSR initiatives of Mercantile Bank Limited and Pran
RFL Group.
➢ To evaluate and inspect the role of CSR activities of Mercantile Bank Limited and
Pran RFL Group in Bangladesh.
➢ To recommend how to increase the CSR activities in Bangladesh for the sake of
sustainable of growth and development.

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 3. What is Corporate Social Responsibility (CSR)?
CSR can be defined as the ways in which a business seeks to align its values and behavior with
those of its various stakeholders. Corporate social responsibility (CSR) is a business approach
that contributes to sustainable development by delivering economic, social and environmental
benefits for all stakeholders. CSR is a concept with many definitions and practices. The way it
is understood and implemented differs greatly for each company and country. Moreover, CSR
is a very broad concept that addresses many and various topics such as human rights, corporate
governance, health and safety, environmental effects, working conditions and contribution to
economic development. Whatever the definition is, the purpose of CSR is to drive change
towards sustainability.

Clients

Suppliers Employees

CSR

Community
Shareholders & the
Environment

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 4. CSR Activities in Bangladesh
Corporate social responsibility (CSR) and its practices in Bangladesh have a long history of
mainly philanthropic activities. CSR as the concept is understood today i.e. including health &
safety, human rights, child labor, environmental and climate issues is relatively new but there
are a number of signs that it is becoming increasingly important in Bangladesh in all businesses
sectors.

In essence, CSR is positive rapport with the society. In a Bangladesh context, several
multinational companies and local companies practice CSR. Most of the business concerns in
Bangladesh do not rate high in practicing CSR unless being pressured by the foreign buyers
specially in case of export-oriented business.

CSR in Bangladesh can 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 being augmented by corporate alliance can go a long way in developing the
economy, society and environment.

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.

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. By
now, many CSR dimensions are practiced in Bangladesh. The SMEs largely depend upon
export. An Ideal example is the consumer boycott imposed on purchasing Bangladesh
Readymade Garments on the ground that these are produced by under-aged child labor. The
US and EU buyers set guidelines to Ready Made Garments (RMG) industry to ensure the
standards.

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The 1992 Hrkin'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, 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 are 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 wild shock any conscientious individual to the core. Recently,
the RMG sector employees have embarked on an 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 of lend money at very high
interest. Owing to cheating by the recruiters and unlawful behavior by the overseas employers,
many of them get 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 conveyable 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 Bangladesh is a developing country.
Because of global competitiveness and demand, the CSR practices and standards are being
implemented in Bangladesh. But we are yet go a long way. There are challenges to implement
CSR properly in Bangladesh. Ultimately CSR practices should be better practiced in
Bangladesh for better and enhanced performance.

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5. Company Profile (Mercantile Bank Limited)

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5.1 Company Background
Mercantile Bank Limited emerged as a new commercial bank to provide efficient banking
services and to contribute socio-economic development of the country. The Bank commenced
its operation on June 2, 1999. The Bank provides a broad range of financial services to its
customers and corporate clients. The Board of Directors consists of eminent personalities from
the realm of commerce and industries of the country.

5.2 Vision
Would make finest corporate citizen

5.3 Mission
Will become most caring, focused for equitable growth based on diversified deployment of
resources and nevertheless would remain healthy and gainfully profitable bank

5.4 Objectives (Strategic objectives)

➢ to increase shareholders' value
➢ to achieve economic value addition
➢ to be market leader in product innovation
➢ to be one of the top three financial institutions in Bangladesh in terms of efficiency
➢ to be one of the top five financial institutions in Bangladesh in terms of market share in
all significant market segments we serve

5.5 Core values

5.5.1 Customer delight
Customer satisfaction pervades all our activities. We appreciate that Customer’s satisfaction is
critical for our success.

5.5.2 Innovation
➢ Spurring innovation for reinforcement of our business.
➢ Origination and materialization of change management for attainment of perfection and
we believe change is always constant.

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5.5.3 Ethical Values
We continue to be responsible, ethical, sincere and transparent in our thoughts and actions.

5.5.4 Caring for Human Resources

Realization of latent potentialities of employees, respecting individual worth and dignity to
ensure smooth career progression as well as welfare orientation in Human Resources
management policy and practices.

5.5.5 Commitment
We always keep high on the agenda our commitment towards valued depositors as their
trustworthy custodian and to maintain the same spirit for all other stakeholders.
5.5.6 Socially Responsible
➢ Constant endeavor to act and respond in a socially responsible manner keeping in mind
society and our country.
➢ To care for our environment.

5.5.7 Shareholders Value

Creation and Maximization of values for our shareholders.

5.6 Corporate Priorities

➢ Ensure customers satisfaction by meeting their demands with excellent customer
services.
➢ Enlarge customers freedom by designing need-based banking products and services.
➢ Manage credit risk by diversified loan portfolio with emphasis on SME and Agriculture
financing.
➢ Mitigate different risks through efficient risk management techniques.
➢ Strengthen Internal Control and Compliance (ICC) system to establish a very
systematic and effective compliant culture.
➢ Combination of skilled human resources and state-of-art technology in providing
banking services.
➢ Focus on green banking by ensuring ecofriendly financing.

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5.7 Mercantile Bank Foundation (MBF)
Bank’s CSR activities are planned and implemented as business strategies after considering
what they should do and how they should do it as a Foundation. Its CSR activities assist to
solve societal issues and contribute to both economically and socially. Mercantile Bank
Foundation (MBF) believes that their responsibility extends beyond their core business to the
society in which they operate. Actually, MBF has been promoting a dialogue between the Bank
and its community people. Core focus of the Foundation is to work for the distressed and
disabled people around the country throughout its course of compassionate operation.
Mercantile Bank Foundation is committed to helping exponentially more people improve their
lives by having access to core services like education and healthcare, because they believe that
accessible and affordable core services is foundational to breaking the cycle of poverty. In
order to achieve this goal, MBL is a strong and dynamic organization which follows an adaptive
approach through effective program and service.

5.7.1 Objectives of Mercantile Bank Foundation

Mercantile Bank Foundation has been formed with the aim of achieving some underlying
objectives including:
➢ To take possible initiatives in increasing social wellbeing and poverty alleviation.
➢ To support the education by establishing new educational institutions, providing
stipends/scholarship to the poor but brilliant students.
➢ To provide awards to the Scholars in different significant arenas for their outstanding
contribution, as they uphold nation’s pride brightly even across the geographical
boundaries.
➢ These arenas are:
✓ Bengali Language and Literature
✓ Education
✓ Culture
✓ Liberation War based Research
✓ Economics and Economics related Research
✓ Healthcare
✓ Science and Technology
✓ Industry and Commerce
✓ Journalism

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 ✓ Agriculture based Research and Development
✓ Sports
➢ To assist research activities on Bengali Literature through Bangla Academy
➢ To assist the unemployed young to make them self-sufficient
➢ To assist the rootless and distressed orphans and mentally retarded children through
taking appropriate steps for their mental perfection and self-support
➢ To support in establishing hospitals, clinics, etc. for improvement of the health sector,
to donate one-time financial endowment to poor artists, literature-patron, for ailing fatal
disease-affected poor patients, to support poor fathers for arranging their daughter’s
marriage and to support writers and publishers through purchasing their books.

Mercantile Bank Foundation has been working constantly since 2000 just after a year of its
inception as a responsible corporate citizen. MBL’s social responsibilities are overseen by the
Mercantile Bank Foundation. MBL contributes 1% of its Operating Profit or BDT 4.00 million,
which one is maximum, to the Mercantile Bank Foundation every year, and from this amount,
the Foundation cares the distressed and disabled people of the country. MBF has relentlessly
pursued a range of activities with the sole purpose of benefitting its target people.

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 6. CSR Activities of Mercantile Bank Limited
In Mercantile Bank, financial sustainability goes hand in hand with the development of the
communities and environment in which they operate. Corporate Social Responsibility (CSR)
is the continuing commitment by business to behave ethically and contribute to economic
development while improving the quality of life of the workforce and their families as well as
of the local community and society at large. Mercantile Bank believes that investing in today
is building for tomorrow. MBL Family always tries to be a responsible partner of their
customers, shareholders employees, communities, and other stakeholders attaching highest
priority to ethical conduct and integrity. This includes monetary donations and aid given to
nonprofit organizations and communities. Donations are made in areas such as the arts,
education, housing, health, social welfare and the environment, among others, but excluding
political contributions and commercial event sponsorship.

Social responsibility is an ethical framework and suggests that an entity, be it an organization

or individual, has an obligation to act for the benefit of society at large. It is a duty for every
individual has to perform so as to maintain a balance between the economy and the ecosystems.
In Bangladesh, as one of the key stakeholders, Mercantile Bank can play a vital role in
development and response to the society through its regular practice. Its sustainability strategy
is connected to its vision, would make nest corporate citizen. They leverage on the connections
and relationships they have formed in order to win hearts and achieve prosperity for all. Guided
by their Core Values of Teamwork, Integrity, Growth, Excellence and Efficiency, and
Relationship Building, their place should be at the heart of the communities they serve. MBL’s
Corporate Responsibility initiatives are firmly based on the three key pillars of our Society,
Economy, and Environment.

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 Society Economy

Environment

Corporate social responsibility (CSR) is a broad term used to describe a company's eorts to
improve society in some way. For Mercantile Bank, CSR is a commitment to improve
community well-being through discretionary business practices and contributions of corporate
resources. However, it is not charity but it is a core business strategy of an organization. Always
they presume to contribute to the community through different projects, but their main focus is
to help millions of underprivileged children and poor people in Bangladesh. Bank promotes
CSR activities, apart from its own fund, through Mercantile Bank Foundation, which acts as a
helping hand to the distressed people of the country. Investment in CSR programs is always
supported and encouraged by the Board of Directors of the Bank. The funding policy has
focused on five major areas: Community outreach, Health & Medical research, Education Arts
& Culture and development of Sports.

6.1 Segment wise CSR Activities

Segment wise contribution under CSR activities of Mercantile Bank in 2017 is furnished
below: (BDT in Million)

Segments Jan - Jun, 2017 Jul - Dec, 2017 Total In %

Education 30.54 33.16 63.70 34%
Health 9.12 2.32 11.44 6%
Disaster Management 14.10 66.81 80.91 43%
Sports, Art & Culture 2.60 2.60 1%
Others 10.64 16.96 27.60 15%
Total 64.40 121.85 186.25 100%

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 Segment wise contribution under CSR activities

15%
1% 34%

43% 6%

Segments Education Health Disaster Management Sports, Art & Culture

6.2 Mercantile Bank Award-2017

Mercantile Bank Foundation always tries to continue broadening the scope of its impact
through its pioneering social programs. It is continuously exploring methods of extending the
reach and effectiveness of its activities in order to fulfill its long-term vision. From foundation,
MBL each year on its founding anniversary award some noted intellectual personalities of the
society for their outstanding performance in their respective fields.

In continuation, during 2017, the Foundation of the Bank provides awards to 11 (eleven)
Scholars for their outstanding contribution in different areas under the heading “Mercantile
bank Award-2017”. The Award includes a Gold Medal (2 Vori), a Crest and one-time financial
endowment worth BDT 1.00 lac. Hon’ble Commerce Minister of People's Republic of
Bangladesh, Mr. Tofail Ahmed, M.P was the Chief Guest of the program. Mr. Fazle Kabir,
Governor Bangladesh Bank was present as special guest and Shahidul Ahsan, Ex-Chairman of
the Bank presided over the program. The Scholars who have been honored with Mercantile
Bank Award-2017 are as under:
Arenas Scholars Rewarded
Freedom Fighter and Liberation war based research Mofidul Hoque
Bengali Language and Literature Kobi Asad Chowdhury
Culture Chhayanaut
Education Dr. Syed Anwar Hussain
Healthcare Dr. Samanta Lal Sen
Journalism Iqbal Sobhan Chowdhury
Economics and Economics based research Dr. Debapriya Bhattacharya
Commerce and Industry Salahuddin Alamgir (CIP)
Science and Technology Bangladesh Atomic Energy Commission
Social Development Shuchona Foundation
Sports Kolshindur Village (Football)

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6.3 Education Scholarship Program
As a part of Mercantile Bank’s CSR activities Education Scholarship Program began its
journey from 2011. Education Scholarship program is an explicit expression of MBL’s motive
towards building the nation through extending hands of assistance to the future generation of
the country. In this circumstance, Mercantile Bank Foundation launched a Scholarship program
in the name and style, “Mercantile Bank Abdul Jalil Education Scholarship” for the meritorious
and poor students across the country under the category of J.S.C, S.S.C and H.S.C.

In this year, Mercantile Bank Foundation is proud to have another year of success of its
Education Scholarship Program. In 2017, MBL provided scholarships among the students who
have successfully passed (with minimum CGPA of 4.50) J.S.C, S.S.C and H.S.C to continue
their further studies. Through this program, we engage to build self-respect and capabilities to
make career, educational and life-changing journey. The details information of the education
scholarship program is as under:

Category Monthly Scholarship (BDT) No. of Beneficiary Tenure

J.S.C 1,000.00 597 1 Year
S.S.C 1,250.00 295 1 Year
H.S.C 1,750.00 210 1 Year

Number of Students
Division J.S.C S.S.C H.S.C Total
Dhaka 186 74 57 317
Chittagong 251 96 45 392
Rajshahi 9 17 20 46
Khulna 17 9 19 45
Sylhet 10 7 16 33
Barisal 100 75 46 221
Rangpur 24 17 7 48
Total 597 295 210 1,102

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 Division wise informattion of scholarship awardees

4%

20% 29%

3%
4%
4%

36%

Dhaka Chittagong Rajshahi Khulna Sylhet Barisal Rangpur

In 2017, MBL awarded scholarship worth BDT 16.00 million among 1102 students. We aspire
to increase the number of beneficiary students in the coming days. For awarding scholarship,
we sought application eligible candidates all over the country through advertisement in leading
national dailies and selected 1102 awardees by a selection committee. The scholarship was
given to the selected students through a formal award giving ceremony organized by MBL.

6.4 Responsibility to the Society

6.4.1 Community outreach: a helping hand for populations at-risk

Responsibility to the society is included in everyday activities through various projects and
events, thus realizing the mission of the Mercantile Bank. Along with the ongoing programs,
Mercantile Bank Foundation is actively involved in numerous activities which are undertaken
to support the society people. In addition, Bank has to directly participate in social activities to
help the development of specific areas/segments. MBL as a legal corporate entity is fully aware
of its responsibility about how its operational activities impact on its stakeholders, the
economy, the society, its staff and last but not least, the environment.

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6.4.2 Donation to Flood Effected People
MBL has donated BDT 30.00 million to Prime Minister’s Relief Fund for -flood affected
people as part of Corporate Social Responsibility. MBL has also donated BDT 3.06 million to
individual -flood affected people in different areas.

6.4.3 Donation to Relief Fund

MBL has donated BDT 50.00 million to Prime Minister’s Relief Fund for Rohinga refugee.

6.4.4 MBL continues Financial Support to BDR Mutiny affected Families

BDR mutiny in February, 2009 caused an irretrievable loss to the nation. MBL has widened its
arms to share the sufferings of the revolt-affected families. In continuation, this year also MBL
donated BDT 0.96 million to two BDR mutiny-affected families.

6.4.5 Donation to Child Day Care Centre

MBL has donated BDT 0.40 million to Child Day Care Centre of Private Banks, Motijheel.

6.4.6 Distribution of Winter Clothes

MBL has donated 50,000 Pieces Winter Clothes to Prime Minister’s Relief Fund for clod
affected people as part of Corporate Social Responsibility. MBL has also distributed winter
clothes among the individual distressed peoples of the cold affected areas of the country.

6.4.7 Blood Donation Program

In continuation of previous year, this year Mercantile Bank arranged ‘Blood Donation
Program’ in its anniversary with the help of ‘Bangladesh Thalassaemia Hospital’.

6.4.8 Miscellaneous financial contribution

Beside above Mercantile Bank contributed to following arena-
➢ Donation of BDT 25.00 million to ‘Jatir Janak Bangabandhu Memorial Trust’.
➢ Donation of BDT 1.00 million to ‘Society for the Welfare of Autistics (SWAC)’.
➢ Donation of BDT 1.00 million to ‘DIPTO’.
➢ Donation of BDT 1.00 million to ‘Feni Chamber of Commerce and Industry’.
➢ Donation of BDT 0.60 million to ‘Economic Reporter’s Forum (ERF)’.
➢ Donation of BDT 0.10 million to ‘National Press Club’

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6.5 Education: teaching the young and spreading knowledge
MBL is continuing its supports to the education sector. In 2017, Bank contributed BDT 63.70
million to individual students and institutions. The Bank encourages the employees to have
professional degrees and also gives opportunities to the employees who wish to get higher
studies in abroad. The Bank provides cash money incentives to the employees who passed the
Banking Diploma. Following are the major contribution of MBL in same arena-

➢ Donation of BDT 25.00 million to ‘Prime Minister Education Relief Fund’.

➢ Financial support to ‘Assistance for Blind Children (ABC)’, Dhaka.
➢ Donation of BDT 1.88 million to Feni University, Feni.
➢ Donation of BDT 2.00 million to Shamsul Hoque Adrasha High School.
➢ Donation of BDT 0.50 million to Janakallyan Adrasha High School, Noakhali.
➢ Donation of BDT 1.50 million to Pragati Balika Bidda Niketon, Feni.
➢ Donation of BDT 0.70 million to Nurnesa Hafiza Madrasha, Noakhali.
➢ Donation of BDT 0.20 million to Goni Mondol High School, Chandpur.
➢ Donation of BDT 0.10 million to Alhaj Hazrat Ali Degree College, Barisal.
➢ Donation of BDT 0.80 million to Morshed Alam High School

6.6 Health and Medical

From the beginning, Bank provides financial support to different medical and health
institutions. Apart from institutional support, the Bank also provides financial assistance to
individuals for their treatments. In 2017, Bank contributed BDT 11.44 million to different
individuals and hospitals. Following are the major contribution of MBL in same arena:

➢ Financial aid of BDT 7.70 million to 123 individual’s patients for their treatment.
➢ Donation of BDT 1.00 million to Sonaimuri Andha Kallan Samity Eye Hospital,
Noakhali.
➢ Donation of BDT 1.32 million to Shaheda Gafur Ibrahim General Hospital, Patuakhali.
➢ Donation of BDT 1.30 million to Samsul Alam Laila Begum Community Clinic
Hospital, Chittagong.
➢ Donation of BDT 0.10 million to Fazila Foundation for free Clinic Project, Chittagong

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6.7 Arts & Culture
Mercantile Bank always supports promotion of art and culture. As a recognized benefactor of
culture, MBL takes some non-profit initiatives every year. Cultural institutions have been
donated to organize cultural events in different times. Moreover, the Bank supports the writers,
musicians and other performers in their inventive and creative activities. As earlier, in 2017
MBL contributes to organize and celebrate different cultural and traditional festivals.

6.8 Celebration of Bangla New Year-1424

MBL has celebrated the Bangla New year-1424 as it has been doing since inception. All its
offices were decorated to a colorful festive look. Customers in the Branches were invited to
share the joy of festival and they were entertained with sweets as a traditional ritual. Apart from
that, MBL also donated to various cultural and educational institutes to celebrate the Bangla
New Year.

6.9 Traditional Games and Sports

MBL always encourages the development of games and sports of the country. In different
times, the Bank has contributed to organize a variety of traditional games and sports. In 2017,
Bank contributes to different institutions/clubs to arrange games and sports.

6.10 Care to Environment: Encouraging new thinking

about Environmental Challenges Environmental sustainability is a key part of MBL’s social
responsibility efforts. Banks have established environmental policies, goals and practices that
help guide their activities inside and out. Environmentally-oriented thinking is incorporated
into a range of banking operations, lending, products and services and community activities.
Banks’ activities range from participation in conservation initiatives in communities across the
country, to commitments to well-recognized domestic and international standards and
reporting agreements. MBL believe that every small ‘GREEN’ step taken today would go a
long way in building a greener future. We have established a separate unit to turn our Bank as
a ‘Green Bank’. With a view to developing green banking practices in the country, an indicative
Green Banking Policy and Strategy framework has been developed for the bank. As an
environment-responsive bank a lot of measures have been adopted including green financing,
creating awareness among the employees for efficient use of water, electricity and paper, giving
preference to ecofriendly while financing and reuse of equipment. Green Banking is to provide

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innovative green products to support the activities that are not hazardous to environment and
help to conserve the environment. MBL always try to manage the impact of operations and
develop initiatives to improve its environment conducive footprint. After reducing the use of
electricity and paper at the office, some of our branches and ATM’s are now run on solar power.

6.11 Contribution to the Economy

The Bank has contributed to the economy by generating employment of over 2,192 full time
employees. It also plays an imperative role in creating job opportunities by financing to the
productive sectors. In 2017, the Bank mobilized resources of BDT 220,516.63 million from
the surplus economic unit and deployed BDT 199,660.72 million to deficit group. The Bank
plays its responsibility to the Government of Bangladesh paying corporate tax regularly. As
per tax law, the bank deducts at source income tax, VAT, excise duty from various payments
and services for ultimate credit to government exchequer. This year, 42.50% Tax is to be paid
to the National Exchequer from its operation profit. The Bank has made provision of BDT
1,300.00 million for corporate tax in 2017 against BDT 1,260.00 million in 2016.

6.12 Involving Employees in the CSR Approach

As a Corporate Citizen, Mercantile Bank Limited is striving to play its responsibility in this
regard. The involvement of employees in the CSR approach is one of the most effective ways
to CSR awareness. In the new CSR strategy, we have developed activities to keep employees
up-to-date with our CSR goals and principles. We believe that they will put their knowledge to
both at work place and in their private lives.

6.13 Raising CSR awareness among the Group’s employees

MBL arranged workshop programs to raise the awareness of its employees regarding key CSR
issues and its policies in this area. To build on this training, environmental awareness-raising
actions have been set up locally.

6.14 Informing and encouraging dialogue

MBL's employees are also kept update about day-to- day CSR events and are invited to
exchange on new issues and the Groups actions in this area.

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7. Company Profile (Pran-RFL Group)

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7.1 Company Background
Bangladesh is known as the country of six seasons. It has an ideal weather for agriculture and
hence, the cultivation of fruits and vegetables. The opportunity to utilise this scope for business
inspired the late Amjad Khan Chowdhury to put his mastery to excellent use. He had a vision
that would not only serve the society and its people but would also create a business that would
redefine the food manufacturing industry. And thus, Pran-RFL Group was born in the year of
1981. A successful period of 5 years led to the diversification of Pran-RFL Group’s operations
into agriculture in 1986 through contract farming, with the coordination of AMCL,
(Agriculture Marketing Company Limited).

Pran-RFL Group further cemented its place in the industry through a food processing plant at
Ghorashal in 1992. Coming through this period of endeavor, Pran-RFL Group has now
established itself as one of the top manufacturing companies and has set the grounds for
development for any potentialities.

7.2 Corporate Mission

To generate employment & earn dignity & self-respect for compatriots throughout profitable
enterprises.

7.3 Vision
Improving Livelihood

7.4 Values
➢ Discipline
➢ Commitment to Work
➢ Fair Judgement
➢ Service Orientation
➢ Continuous Improvement

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7.5 Achievements
Pran-RFL Group is the largest exporter of processed foods starting export in 1997 with canned
pineapple to France which eventually increased into currently 134 countries from South East
Asia, Middle East, and Africa mainly along with Europe and North Africa. The exponential
growth of export earnings for the group hit $150 million in 2016 which were $51 million in
2011 achieving 183 percent growth in 5 years. Through stronger presence in the international
market, Pran-RFL Group strives to equal their local sales and export which is at 1:4 ratio
currently with total sales revenue of $500 million. They have a strong export base in India
accounting one-third of our export following with the Gulf and African countries as the biggest
buyer of our products. Through capital transfer, they are willing to strengthen their base in
South East Asia region further.

Pran-RFL Group achieved six national export trophies for the fiscal years 2011-12 and 2012-
13:

➢ PRAN Dairy Limited: Gold (FY 2012-13)

➢ PRAN Agro Limited: Silver(FY 2012-13)
➢ PRAN Foods Limited: Bronze (FY 2012-13)
➢ PRAN Export Limited: Gold (FY2011-12)
➢ PRAN Agro Limited: Silver(FY2011-12)
➢ PRAN Foods Limited: Bronze (FY2011-12)
➢ PRAN UHT Milk- Best Brand Award 2016 - Bangladesh Brand Forum
➢ UDC Business Awards 2011 - Agriculture Marketing Company Limited (AMCL)

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 8. CSR Activities of Pran-RFL Group
The establishment of Pran-RFL Group was based on the vision of providing products that
enhance health, nutrition, and well-being of society. Along the way it has contributed to
increased rural livelihood in its domestic country, improvement in the standard of living, a
boost of the national foreign reserve and employment generation. Pran-RFL Group is keenly
aware of its responsibility for society and this awareness is reflected in its activities.

Pran Food’s principal source of raw food material is contract farming. It greatly contributes to
an economic improvement of rural livelihood by means of employment generation and overall
improvement of the condition of the rural localities. Growers are provided with quality inputs
(seeds, fertilizers, pesticides), improved and advanced cultivation techniques, access to
finance, crop insurance, advanced storage and collection system and access to the international
market for their products.

Pran-RFL Group believes in providing benefits that are sustainable in the long-run. The
provision of tools, knowledge, and finance nurture self-sufficiency. Also, Pran-RFL Group
supports the farmers working by providing them with financial assistance on every level.

Pran-RFL Group’s contributes to government expenditure in education, infrastructure

development, public employment generation and cash transfer under safety nets. It is also one
of the largest corporate taxpayers in its domestic country.

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 9. Comparison of CSR Activities with other countries
9.1 CSR Activities in Bangladesh
CSR is very much important for developing countries like as Bangladesh. However, where it
needs its full pace, especially in the least Developed countries like Bangladesh, but the concept
of CSR is almost neglected by different companies. Though CSR plays a vital role in the
developed countries, but in Bangladesh, it has yet to establish as a field of study.

Here the main problem is to illiterate people as well as have too little idea about the CSR policy
and practice. In the context of Bangladesh, we can see that the advent of globalization and as
national and territorial boundaries gradually dissolves; businesses are increasingly facing
competition, both in the domestic as well as in the international market. So, the national and
international business would like to maximize their profit ignoring the practices of CSR. And
the second things the companies are not receiving any pressure from the society, which is
related to CSR. It is important to note that any analysis of social disclosures would be
incomplete if it fails to capture the socio-political and economic contexts in which the
disclosures are made.

Another important section is to absence of corporate culture is very poor and or stock market
is new. Most of the company’s exclusive focus on annual reports may lead to an incomplete
picture of CSR practices. From our study we have so many findings but as we can say that
Asian companies are decades behind their western counterparts in accepting the concept of
their social responsibility to the society. Some companies are violent our environment Act. So,
there must be some provisions in the companies Act 1994 regarding social and environmental
disclosure.

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9.2 CSR Activities in India
As per as Corporate Social Responsibility is concerned, the Companies Act, 2013 is a landmark
legislation that made India the first country to mandate and quantify CSR expenditure. The
inclusion of CSR is an attempt by the government to engage the businesses with the national
development agenda. The details of on corporate social responsibility is mentioned in the
Section 135 of the Companies Act, 2013. The Act came into force from April 1, 2014, every
company, private limited or public limited, which either has a net worth of Rs 500 crore or a
turnover of Rs 1,000 crore or net profit of Rs 5 crore, needs to spend at least 2% of its average
net profit for the immediately preceding three financial years on Corporate social responsibility
activities. The CSR activities in India should not be undertaken in the normal course of business
and must be with respect to any of the activities mentioned in Schedule VII of the act.

The corporations are required to setup a CSR committee which designs a CSR policy which is
approved by the board and encompasses the CSR activities the corporations are willing to
undertake. The act also has penal provisions for corporations and individuals for failure to
abide by the norms. The details of the same are highlighted in the act.

The Indian companies in the last two years have invested majorly in education & skill
development, healthcare & sanitation, rural development projects and environment after being
mandated to allocate a portion of their profits towards community development.

In a written reply to Rajya Sabha, Corporate Affairs Minister Arun Jaitley on 1st March 2016
said a total of 460 listed firms have so far disclosed spending Rs 6,337.36 crore in 2014-15.
This included 51 PSUs that spent Rs 2,386.60 crore. Of the 460 companies, 266 firms spent
less than 2 per cent of the average profit.

In 2017, 967 CSR projects out of the overall 1,895 were executed through implementing
agencies with an expenditure amounting to Rs 3,014 crore, higher than even the direct
implementation quota. Maharashtra, Haryana and Gujarat lead in terms of CSR funding
received. The average project cost in Haryana is the highest at Rs 8.4 crore, followed by Andhra
Pradesh (Rs 6 crore) and Gujarat (Rs 3.6 crore).

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9.3 CSR Activities in UK
The impact of business on the economy, the environment and society are increasingly being
thrust into the spotlight with investor calls for transparency and customers discussing corporate
activity on social media. Businesses report an increase in drivers to move towards more
environmentally and socially sustainable business practices. Cost management is the main
driver globally, followed by customer demand and because it’s the ‘right thing to do’.

The vast majority of businesses are involved with local charities, either through donating time,
money or products/services. Businesses are also working to reduce their environmental impact,
with increasing numbers calculating the carbon footprint of their operations.

Increased scrutiny from stakeholders and demand from the public for greater transparency is
putting pressure on companies to become more socially and environmentally responsible.
Across the world, CSR and broader business objectives are becoming more aligned. The
benefits of adopting more environmentally and socially sustainable business practices are
becoming ever more tangible, for example through tax relief on charitable activity or lower
energy bills due to efficiency measures introduced. Despite the overall recognition of cost
benefits, it's interesting to see that British businesses seem far more reactive in their approach
to CSR and are largely responding to stakeholders' needs.”

UK respondents, drawn from senior executives from all industry sectors in mid-market
businesses, cited the following as the key drivers of corporate social responsibility:
➢ Client/consumer demand (62%)
➢ Recruitment/staff retention (49%)
➢ Cost management (48%).
➢ Public attitudes/building brand (44%)
➢ Because it’s ‘the right thing to do’ (40%)

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 10. Recommendation
CSR is widely accepted as a strategically important issue for the sustainable growth and
competitiveness of business now-a-days. In the developing and least developed countries like
Bangladesh, CSR activities may play crucial roles in saving the environment, promoting human
rights within the work place and providing welfare through their financing policies. However,
the status of CSR has not been satisfactory in Bangladesh largely due to lack of awareness,
poor enforcement of existing laws and inadequate pressure from civil society and interest
groups. To reap the best reward of CSR activities in our country, the following measures should
be undertaken:

➢ The Companies Act, 1994 should be amended to make companies to mandate and
quantify CSR expenditure.

➢ Companies should be made aware of CSR benefits as it increases their competitiveness.

➢ Central CSR enforcement body should be established to oversee the CSR activities of
companies as well as the due application of CSR expenditure.

➢ While spending CSR funds, special attention should be given to the development of
education sector across the country.

➢ All stakeholders in the society should be made aware of the CSR activities in regards
to its influence for the socio-economic development of the country.

➢ Environment is a growing concern all over the world. So, CSR activities should be
carried out aiming at sustainability of the environment.

➢ Motivational awards may be introduced encouraging the companies for their

outstanding contribution towards CSR activities.

➢ Disclosure of CSR activities in the financial statements should be made mandatory by

the companies.

➢ To appoint a CSR position at the strategic decision-making level to manage the

development of policy and its implementation.

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 11. Conclusion
The role of business worldwide and specifically in the developed economies has evolved over
the last few decades from classical ‘profit maximizing’ approach to a socially responsible
approach, where businesses are not only responsible to its stockholders but also to all of its
stakeholders in a broader inclusive sense. CSR ensures trade-off between economic and social
goals to encourage the efficient use of resources. CSR is not just charity and compliance issue
rather it is an attempt to respond to all the stakeholders’ expectations more efficiently and in a
socially responsible manner. However, a proper guideline by Government regarding CSR
contribution, involvement of large corporation in CSR activities and mandating CSR
disclosures in the annual report will fulfill the intended goals of the corporate organizations
and also ensure a successful and sustainable development of the society. So, the CSR initiatives
of business organizations in the society, especially in a developing country like ours, need to
be duly emphasized.

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