CSR Reporting
CSR Reporting
1. Introduction
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 social
responsibly approach, where businesses are not only responsible to its stockholders but
also to all of its stakeholders in a broader inclusive sense. However, it is regretful that
though internationally it is being practiced widely, Bangladesh is still lagging behind in
corporate social responsibility (CSR) activities (Azim et al. 2011). In fact, CSR is a matter
of self interest for the corporate sector in Bangladesh, (Azim & Islam, 2009). Still, among
the corporate houses banks have shown comparatively better tendencies to accomplish
CSR activities. Bangladesh Bank as the central bank in Bangladesh has taken initiatives
to motivate the banking companies to play role toward the welfare of the society by
ensuring CSR. Keeping this fact in mind, this study is an attempt to explore to what
extent the listed banks in Bangladesh is engaged in CSR activities.
The study is conducted with the objectives of exploring the areas of CSR activities of
banks and to compare the performances of the bank in relation with CSR activities and
related disclosures. Till now researches have been done on CSR practices of different
The remaining parts of the paper are presented as follows: The next section reviews the
relevant literature. Section three describes the objectives of the study. Section four
includes the detail of research methodology employed in this study followed by section
five dealing with results and discussions of the study. The last section includes
limitations of the study, implications of the study and scope of further research and
conclusion of the study.
3. Literature Review
Corporate Social Responsibility (CSR) is a concept whereby companies integrate social
and environmental concerns in their business Operations and in their interaction with
their stakeholders on a voluntary basis (Gray et al. 1987). According to (Rana et al.
2012), Social responsibility is a concept well known in the corporate world and beyond
that. Business all over the world have practiced only profit making action sat past but not
for long as the enterprise started to develop complexities and wideness in size and
actions so was their reach getting bigger and bigger .A company‟s sense of responsibility
towards the community and environment (both ecological and social) in which it operates
called corporate social responsibility. Companies express this citizenship (1) through
their waste and pollution reduction processes, (2) by contributing educational and social
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programs, and (3) by earning adequate returns on the employed resources. In contrast
to this, Christian Aid (2004) defines CSR as “an entirely voluntary, corporate driven
initiative to promote seas a substitute for regulation at either a national or international
level.”
Dusuki & Dar (2005) argued that Corporate Social Responsibilities outline the standard
of behavior to which a firm must subscribe to impact society in a positive and a
productive manner at the same time as abiding by values which exclude profit seeking at
any cost. In a study “Corporate Social Disclosure in Bangladesh: A Study of the
Financial Sector”, Azim et al. (2011) argued that corporate social responsibility is not the
only ethical dilemma that financial institutions face in an atmosphere of corrupt corporate
practice. These institutions are also concerned with commitment for sustainable
development. A well-functioning finance sector in any country can contribute directly to a
healthy economy. This sector plays an important role in a country‟s economic
development. Increasingly, are under pressure, often from activist non-governmental
organizations, to take on specific corporate social responsibility (CSR) obligations. But
the fact that CSR is being demanded, and occasionally conceded, does not ensure
clarity about either its rationale or the ways in which it should be undertaken (Bhagwati,
2010). Obalola (2008) in his study found Nigerian Insurance industry has a strong
support for social responsibility and the translation of this support into action through
involvement in some community based projects. Evidence from the study also suggests
that social responsibility is still largely perceived as a philanthropic gesture. Visser
(2005) argued that CSR in developing countries to represent „the formal and informal
ways in which business makes a contribution to improving the governance, social,
ethical, labor and environmental conditions of the developing countries in which they
operate, while remaining sensitive to prevailing religious, historical and cultural contexts.
Hossain and Haque (2005) found a significant statistical difference in sales revenue and
in employee size between companies having environmental disclosure and companies
not having environmental disclosure prevails in Bangladesh. Victoria and Mahboob
(2009) explored the nature and extent of CSR reporting in the conventional banking
sector in Bangladesh and to assess the need to improve CSR by such firms. Wise &
Mahboob Ali (2010) further extend their work by concentrating to the nature and extent
of corporate social responsibility disclosure in the banking sector in Bangladesh. Samina
(2012) in her study Practice of Corporate Social Responsibility in Islamic Banks of
Bangladesh tried to find the present level of mandatory and voluntary CSR of the full
fledged Islamic banks in Bangladesh. Thus, there is a research gap to find the sector
wise CSR of the listed commercial banks in Bangladesh and the relevant disclosures in
annual reports.
Thus, this study attempts to reveal the extent to which the banks in Bangladesh are
practicing CSR and disclosing relevant information in their annual reports in six different
areas called a) Education b) Health c) Environment d) Culture & Heritage e) Social
welfare and f) Sports.
The population of the study is 30 listed banks in Bangladesh. From the population the
following sixteen sample banks have been taken randomly.
We reviewed the annual reports of all the sample banks for the years 2007 to 2012 to
identify the CSR activities. The study has divided CSR activities into six major sectors
namely a) Education b) Health c) Environment d) Culture & Heritage e) Social welfare
and f) Sports. An un-weighted index has been prepared under the above mentioned 6
heads with 96 items. If a bank performs any CSR activity of 96 items it is assigned 1 and
if it does not do so it is assigned 0. Then, the CSR scores have been revealed for each
of the sample banks for the year 2012 from the annual reports of the sample banks.
The scores of each category of the CSR have been tabulated and then graphically
presented to find the sector wise as well as bank wise CSR performances and relevant
disclosures.
Education is the prerequisite for over all development of any country. Keeping this in
mind, every bank performs some CSR activities in education sector and discloses
relevant information in its annual report. Such activities include scholarship program for
brilliant poor students, donation to educational institution, operating computer learning
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center etc. Scores of banks according to their CSR activities in education are highlighted
in the following graph.
Figure 1: CSR and related disclosures of the sample banks in education in the
year 2012
CSR in e duca t ion
7
6
6
5
4 4 4
4 Cont ribut ion t o educ at ion
3 3 3 3 3 3
3 sec t or
2 2 2 2 2 2
2
1
0
DBBL
Pubali BL
BBL
I BL
UCBL
SI BL
FSI BL
EXI M BL
MBL
BAL
PBL
JBL
SBL
Shahj ala
MTBL
Southeast
From the diagram we see that DBBL performed higher CSR activities and disclosed
relevant information in the annual report than other banks in the year 2012 with a score
of 6 out of 11. BBL, UCBL and EXIM bank are in the second position scoring 4. The least
CSR activities in education score is 2.
5.2 Health
Health is one of the prime parameter to achieve the development goal. Health needs are
increasing day by day due to rapid growth of population. For that reason every bank
performs some CSR activities in health sector. There are included free eye camps,
donation for treatment to the individual, donation to hospital etc. Scores of banks
according to their CSR activities in health are highlighted in the following graph.
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Figure 2: CSR and related disclosures of the sample banks in health in the year
2012
CSR in He a lth
10 9
9
8 7 7
7
6 5 Cont ribut on t o healt h
5 4 4 4
sec t or
4 3 3 3
3 2 2 2 2
2 1 1
1
0
DBBL
Pubali BL
BBL
I BL
UCBL
SI BL
FSI BL
EXI M BL
MBL
BAL
PBL
JBL
SBL
Shahj ala
MTBL
Sout heast
From the diagram we see that DBBL has the highest score of 9 out of 18 in the year
2012 in health sector. Prime bank and Jamuna bank are in second position with a score
of 7 while Mercantile bank scored 5 and placed in third position among the sixteen
banks.
5.3 Environment
Environment pollution has become a large problem in our country. For that reason few
banks have come forward to protect the environment and they have performed some
CSR activities in the environment sector. Such activities included finance to CNG
conversion and CNG filling station, not to finance any tobacco related business, provide
finance for innovative green products etc.
4.5 4
4
3.5 3 3 3
3
2.5 2 2 2 Cont r ibut ion t o t he
2 envir onm ent sect or
1.5 1
1
0.5 0 0 0 0 0 0 0 0
0
L
IM L
ba L
FS L
BL
L
al L
D L
L
L
M L
L
U L
AL
e a BL
ha S L
B
EX I B
Pu I B
IB
B
PB
hj IB
JB
B
BB
TB
B
B
M
C
B
th S
li
a
st
ou
S
S
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Yunus, Kabir & Rahman
The diagram above shows the CSR activities of sixteen banks in environmental issues.
Here DBBL has a good position; they have highest participation in this sector in the year
2012. BAL, JBL and MBL have performed well where most of the banks have not
performed any CSR activities in this sector. Only eight banks have performed out of
sixteen banks.
To uphold our culture and heritage some banks have taken initiatives and performed a
few CSR activities though most of the banks have not performed at all in this area. Such
activities include donation to Muktijuddah Jadughar, donation to cultural institution,
donation to Ekushey book fair etc.
6
5
5
4 4
4
Cont ribut in t o c ult ure &
3
2 2 herit age sec t or
2
1
1
0 0 0 0 0 0 0 0 0 0
0
L
M L
U L
IM L
L
L
FS L
L
ba L
L
L
L
L
al L
L
EX I B
B
B
B
Pu I B
B
B
B
PB
IB
A
B
JB
h j SI B
TB
B
C
B
B
M
B
th S
li
D
st
al
ea
ha
ou
S
S
The diagram shows the CSR activities of sixteen banks in culture and heritage. Among
the banks MBL has a good contribution as they have disclosed their participations in this
area in the year 2013 which is the highest. UCBL and BBL are in the second position in
term CSR in culture and heritage whereas DBBL is in the fourth position. Most of the
banks have not performed any CSR activities in this area.
As a third world country Bangladesh has a lot of problems. Government often find
themselves as helpless when it comes to solve such problems. Banks as social entities
of this country are considered as a part of the affluent section of the society and hence
they are expected to contribute more meaningfully towards the betterment of the society.
If all banks come forward to contribute to the society, it will help to create their social
branding as well as helping the society. Banks are seen to perform more CSR activities
in this area.
The following diagram presents CSR activities of sixteen banks in the area of social
welfare in the year 2012.In the sector every bank has participation. DBBL is
comparatively ahead than others. UCBL is in the second position. MBL and JBL also
performed well.
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Figure 5: CSR in Social Welfare in the year 2012
14 13
12
10 9
8 8
8 7 Cont ribut ion t o social
6 5 w elfare sect or
4 4 4 4 4 4
4 3 3 3 3
2
0
DBBL
Pubali BL
BBL
UCBL
I BL
SI BL
FSI BL
EXI M BL
Shahj alal
MBL
BAL
PBL
JBL
SBL
MTBL
Sout heast
5.6 Sports
Financial support is mandatory for improving the performances of sports of the country
and to perform better at international level .Keeping this in mind, Government of
Bangladesh has taken initiatives to attach each bank with a particular event of sports.
So, financial institutions have to play a role to encourage and support the sports.
Performances of the sample banks in this regard follow:
3. 5
3 3 3
3
2. 5
2 2 2 2 2
2 Cont ribut ion t o sport s
1. 5 sec t or
1 1
1
0. 5
0 0 0 0 0 0
0
DBBL
Pubali BL
BBL
I BL
UCBL
SI BL
FSI BL
EXI M BL
Shahj alal
MBL
BAL
PBL
JBL
SBL
MTBL
Southeast
The diagram shows the CSR activities of different banks in the sports sector. In the
sector UCBL, BAL and PBL have highest participation in the year 2012. MBL, JBL and
DBBL are in the second position. Many of the banks have not performed any CSR in this
sector.
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5.7 Ranking of the Banks on the Basis of total CSR and Relevant Disclosure
The sample banks have been ranked on the basis of their total CSR activities in
education, health, environment, culture & heritage, social welfare and sports as follows:
The study in table 1 shows the total CSR activities of sixteen sample banks. Among the
sixteen banks DBBL is clearly ahead than others with a disclosure score of 35 out of 96.
Mercantile bank is in the second position with a score of 26 while Jamuna bank scored
25 to secure the third position. Shahjalal Islami Bank is in the last position by performing
and disclosing only 7 items out of total 96 CSR items considered in this study to
formulate CSR index. Most of the other banks failed to perform and disclose CSR
activities to a satisfactory level.
From the study it is clear that participation of different banks in different areas of CSR
activities is limited. An unweighted index has been prepared where there are 96 items
under the 6 heads of CSR. Most of the banks‟ participations in CSR are limited to 10 to
35. Thus the highest disclosure is 36.46% while the lowest is 10.41%. Dutch Bangla
Bank Limited (DBBL) has the highest participation (Scored 35 out of 96) in CSR
activities, where Mercantile Bank Limited (MBL) disclosed a total of 26 and placed in the
second position whereas Jamuna Bank Limited (JBL) secured the third position with a
disclosure score of 25. Other banks‟ participations are lower to them. Hence, banks‟
CSR performances and related disclosures are far lower than expected. Out of the total
6 heads of CSR, DBBL has been found to score the highest in second areas called
Education, Health, Environment and Social welfare. Mercantile Bank Limited has the
highest contributions and disclosure scores in cultural and heritage retention. Bank Asia
Limited and Prime Bank Limited jointly top the table of CSR in Sports.
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Most of the banks have shown better contribution in education and health sector as the
part of their social responsibilities as it is seen that the percentage of highest average
score achieved to the score allocated is 26.72% found in Education sector and 20.49 %
in health sector.
Sample banks have the least contribution in Environmental and Culture & Heritage
related CSR as it found from the study that the percentage of lowest average score
achieved to the score allocated is 8.93% found in Environment protection and 9.42% in
Culture & Heritage retention. It is matter of pride that the banks are very concern to
contribute to meet the emergency situations specially like cyclones (Aila) and flood
affected areas, warm cloth distribution etc. Every bank contributed to our prime minister
Relief fund especially for flood affected people, BDR mutiny and fire affected people of
garments.
The study revealed that the banking sector in Bangladesh has been playing vital role for
the welfare of the society. As it is seen from this paper that the sample banks have given
most priority to contribute in the education sector of Bangladesh understanding the
importance of it for the building of a good nation at the same time their contribution for
the protection of environment is phenomenal. This study has a distinguishing feature
from earlier study as it opens a new avenue to understand the areas in which CSR
activities of the banks in Bangladesh are poor though special attention is required.
Though utmost efforts have been given to reveal the sector wise CSR activities of the
listed banks in Bangladesh, exclusion of factors like how much the banks contribute in a
specific area of CSR out of the total fund in that sector and the output derived from their
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contribution constrained the expected results of the study. In this regard, there is wide
scope for future research to find the effect of CSR activities in the socio economic
development of Bangladesh as well as survey can be conducted to explore the impact of
such activities of banks on their clients in choosing the banks with good CSR
performances.
References
Alam, SMS, Hoque, SMS & Hosen, MZ 2010, ‘Corporate Social Responsibility of Multi
National Corporations in Bangladesh: A Case study on Grameenphone‟, Journal of
Patuakhali Science and Technology University, vol. 02, no. 01, June, pp. 51-61
Azim, MI, Ahmed, S, & Islam, MS 2009, ‘Corporate Social Reporting Practice: Evidence
from Listed Companies in Bangladesh‟, Journal of Asia-Pacific Business, vol.10,
no. 2, pp. 130 –145
Azim, MI, Ahmed, E, & D'Netto, B 2011, „Corporate Social Disclosure in Bangladesh: A
Study of the Financial Sector‟, International Review of Business Research Papers,
vol. 7, no. 2, pp. 37-55.
Bhagwati, J 2010, „Whose Corporate Social Responsibility‟, Economics Time, October
29, 2010
Dusuki, AW, & Humayon D, 2005, „Stakeholders‟ Perception of Corporate Social
Responsibility of Islamic Banks: Evidence from Malaysia Economy‟, Proceedings of
the Sixth International Conference on Islamic Economics, Jakarta, Indonesia, on
21-24 November 2005.
Farook, S 2007, „On Corporate Social Responsibility of Islamic Financial
Institutions‟,Journal of Islamic Economic Studies, vol. 15, no. 01, pp. 31-46.
Gray, RH, Owen, D & Maunders, K 1987, „Corporate Social Reporting: Accounting and
Accountability‟, Prentice-Hall International, London
Victoria,W & Mahboob, AM, 2009, „Corporate Governance and Corporate Social
Responsibility in Bangladesh with special reference to Commercial Banks‟, AIUB
Business & Economics Working Paper Series, July 2009.
Obalola, M 2008, „Beyond philanthropy: corporate social responsibility in the Nigerian
insurance industry‟, Social Responsibility Journal, vol. 4, no. 4, pp.538 – 548
Rana, M, Kalam, A, & Halimuzzaman, M 2012, „Corporate Social Responsibility of
Dutch-Bangla Bank Limited: A Case study‟, Bangladesh Research Publication
Journal, vol. 7, no. 3, pp: 241-247
Samina , QS 2012, „Practice of Corporate Social Responsibility in Islamic Banks of
Bangladesh‟, World Journal of Social Sciences, vol. 2, no. 6, pp. 1 – 13.
Visser, W 2005, „Citizenship in South Africa: A Review of Progress since Democracy‟,
The Journal of Corporate Citizenship, vol. Summer 2005, no.18, pp. 29-38
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Appendices
Appendix 1 Index of CSR
Items Yes No
1. Education:
i. Scholarship among the brilliant student of SSC & HSC
Exam
ii. Scholarship program for brilliant students
iii. Donation to educational institutions
iv. Establishment of educational institution
v. Establishment of library
vi. Operating computer learning center
vii. Encourage science oriented education
viii. Scholarship to meritorious female students
ix. Journalist scholarship
x. Scholarship program for underprivileged but
meritorious students
xi. Sponsoring the Ganit Utsab
Sub total
2. Health:
i. Ophthalmological program
ii. Free eye camp
iii. Donation for treatment to the individual
iv. Donation to hospital
v. Blood donation program
vi. Autism
vii. Kidney foundation
viii. Free treatment to disabled and paralyzed patient
ix. Hicare
x. Health support to garments workers
xi. Setting up trauma centers
xii. Finance for establishing countrywide health center
xiii. Provide telehealth and electronic health service
xiv. Donation for ambulance
xv. Donation to Liver foundation
xvi. Medicare service for the rural people
xvii. V.V.F. operation
xviii. Donation to heart foundation
Total
3. Environment:
i. Finance to CNG conversion and CNG filling station
ii. Solarizing SME offices
iii. Biogas plant
iv. Do not finance any tobacco related business
v. Seed crushing projects
vi. Donation to BAPA & BPN
vii. Beautification of Dhaka City
viii. Support people living in coastal and „char‟ area
ix. Finance to geo textile manufacturing project
x. Aware the employee use of water, electricity, paper
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etc
xi. Preference to eco friendly reuse equipments
xii. Provide innovative green products
xiii. Solarizing a village
xiv. Tree plantation program
Total
4. Culture and heritage:
i. Donation to Muktijuddha jadughar
ii. Donation to Book fair
iii. Bengali spelling competition
iv. Birth anniversary of Tagore
v. Donation to cultural institution
vi. Donation to theater
vii. Donation to Wrishiz Shilpi Goshti
viii. Assist research activities on Bengali literature
ix. Support the writer and publisher
x. Financial endowment to literature patron
xi. Financial endowment to poor artist
xii. Arranging art competition
Total
5. Social welfare:
i. Support to acid victim
ii. To stand beside the freedom fighter
iii. To unlock potentials of disadvantaged girls
iv. To stand beside helpless family
v. Warm cloth distribution
vi. Helping people in slum areas
vii. Support to victim families of divesting fire
viii. Standing beside BDR victims
ix. Awarded to eminent personalities
x. Financial assistance to the affected families at
Mirsharai
xi. Donation to Bangladesh human rights commission
xii. Donation to Travel show for channel 1
xiii. Donation for SME fair
xiv. Donation for Remittance fair
xv. Donation for Bangladesh Apparel & textile exposition
xvi. Donation for South Asian Young Enterprise
convention
xvii. Donation to Bangladesh retired govt. welfare
association
xviii. Undertake mass awareness raising program
xix. Setting up vocational training center
xx. Construction Shahbag foot over bridge
xxi. Improvement of porter and luggage handling service
xxii. Support the unemployed young to make self sufficient
xxiii. Assist the rootless and distressed
xxiv. Support the poor for arranging daughter‟s marriage
xxv. Support the various professional bodies
xxvi. Established old home
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xxvii. Online inter city bus ticketing service
xxviii. Contribution in developing communication and road
safety
xxix. Donation for IRRI
xxx. Support to make UISC
Total
6. Sports:
i. Contribution to south Asian games
ii. Contribution for giving prize to the players
iii. Contribution to Golf Tournament
iv. Support to Cricket Team
v. Donation to Hocky Tournament
vi. Donation to Football Team
vii. Contribution to Tennis
viii. Contribution to Bangladesh Martial Arts Association
ix. Contribution to Soccer Club
x. Donation to Bangladesh Olympic Association
xi. Contribution to Boat Rowing
Total
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Appendix 7: CSR in Sports
Name of Banks CSR CSR Ranking Average of Percenta
Score Score All Banks‟ ge of
Allocated Achieved Score Average
(CSA) (CSA) Achieved to Total
Allocated
Score
Brac Bank Ltd. 11 1 3
United 11 3 1
Commercial Bank
Ltd.
Bank Asia Ltd. 11 3 1
Prime Bank Ltd 11 3 1 1.32 12%
Mercantile Bank 11 2 2
Ltd.
Jamuna Bank 11 2 2
Ltd.
Dutch Bangla 11 2 2
Bank Ltd.
Mutual Trust 11 0 -
Bank Ltd
Standard Bank 11 0 -
Ltd.
Southeast Bank 11 0 -
Ltd.
Social Islami 11 0 -
Bank Ltd.
Shahjalal Islami 11 0 -
Bank Ltd.
Exim Bank Ltd. 11 0 -
First Security 11 1 3
Islami Bank Ltd.
Islami Bank Ltd. 11 2 2
Pubali Bank Ltd. 11 2 2
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40 35
35
30 26 25
25 23 22
20 Tot al c ont ribut ion of
18
20
Banks
15 11 11
8 9 9 10 10
8
10 7
5
0
DBBL
Pubali BL
BBL
UCBL
I BL
SI BL
FSI BL
EXI M BL
MBL
BAL
PBL
JBL
SBL
Shahj ala
MTBL
Sout heast
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