Case study: Corporate Social Responsibility of Dutch Bangla Bank Abstract: In this article, we have tried to give a comparative picture of corporate social responsibilities (CSR) of DBBL. We also defined what corporate social responsibilities and tried to show how important it is in this 21st century. Along with these, a short description of DBBL’s activities are included to make clear the CSR of its. Throughout the article, the activities of DBBL on CSR have worked as standard and helped in finding the shortcomings of the bodies in Bangladesh.
They have been helping in tracing out different ways for improvements. In conclusion we can say that there are not only problems but also opportunities for further improvement by the business world of this country in the field of CSR. Table of content Topic Page number Introduction 4 Corporate social responsibility 5 Views of social responsibility 7 Why are we choosing DBBL 8 Mission, Vision, Objective 9 Social responsibility & Economic performance 10 Recognition 14 SWOT assessment 15 Recommendation 17 Conclusion 18 Bibliography 19
Introduction: Social responsibility is a concept well known in the corporate world and beyond that. Business all over the world have practiced only profit making actions at 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. As every person has his own social responsibilities towards the society so does the business firms. The idea is that, the business has social obligations and above and beyond making a profit is corporate social responsibility.
However, it is regretful that though internationally it is being practiced widely, Bangladesh is still lagging behind. The difference between the world standard and the practice in Bangladesh shows the lacking here and the scope for development. Corporate Social Responsibility: Definitely social responsibility includes the responsibility of social people, groups, societies, and business organization. Here raises the question: why is there more interest in, and debate about the social responsibility of business and than about the social responsibility of the other institutions?
It is of course legitimate to raise the issue of social responsibility of business. But we hear rather less about the social responsibility of, say, the churches, the media, trade unions, the professions, universities, or even the government. When people collectively organize themselves in organizations of one kind or another, do those impersonal legal entities really acquire social responsibilities, which differ from those of other collective entities?
Many people are uneasy about the profit motive, suspecting that profits emerge only from exploitation. They fear that free enterprise encourages greed and selfishness. They are reluctant to accept the logic of Adam Smith’s famous theory of invisible hand, which holds that business people the general interest more effectively by pursuing their own interests than by directly trying to ‘do good’. I suggest that, this is why we are here little about the social responsibilities of churches, charities and so on.
Business, in contrast, is assumed to have a problem about its social responsibilities because it is driven by profit-motives. So it can be said that, Corporate Social Responsibility (CSR) means that companies integrate social and environmental concerns in their business operations and in their interaction with business relevant groups on a voluntary basis. In general, CSR is characterized by the following aspects: •Responsible entrepreneurship Voluntary initiatives going beyond legislative requirements and contractual obligations • Activities to benefit the employees, business relevant groups (including the society as such) or the environment • With a positive contribution to the individual target group while minimizing negative effects on other (including environment) • Regular activities rather than one-time-events (i. e. related to business strategy vs. ad hoc) CSR is not only about fulfilling a duty to society; it should also bring competitive advantage.
Through an effective CSR program, companies can: • improve access to capital • sharpen decision-making and reduce risk • enhance brand image • uncover previously hidden commercial opportunities, including new markets • reduce costs • attract, retain and motivate employees Views of Social Responsibility There are two views of social responsibility. Those are • The Classical View • The Socioeconomic view The Classical View The view that management only responsibility is to maximize profits.
Some big companies such as Beximco Group, Abul Khair Group don’t contribute broadly in corporate social responsibility. The Socioeconomic View This is the modern views of today’s global business of economy. In this view management’s social responsibility goes beyond making profit to include protecting and improving society’s welfare. Some companies such as Abdul Monem Limited, Unilever, Dutch Bangla Bank etc. spends huge amount of money for the society. Why are we choosing Dutch-Bangla bank (DBBL):
Dutch-Bangla Bank Limited (DBBL) is Bangladesh’s most innovative and technologically advanced bank. DBBL stands to give the most innovative and affordable banking products to Bangladesh. Amongst banks, DBBL is the largest donor in to social causes in Bangladesh. It stands as one of the largest private donors involved in improving the country. DBBL is proud to be associated with helping Bangladesh as well as being a leader in the country’s banking sector. Mission:
Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a commitment to social responsibility. “Profits alone” do not hold a central focus in the Bank’s operation; because “man does not live by bread and butter alone”. Vision: Dutch-Bangla Bank dreams of better Bangladesh, where arts and letters, sports and athletics, music and entertainment, science and education, health and hygiene, clean and pollution free environment and above all a society based on morality and ethics make all our lives worth living.
DBBL’s essence and ethos rest on a cosmos of creativity and the marvel- magic of a charmed life that abounds with spirit of life and adventures that contributes towards human development. Core-objectives: Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs and satisfaction and to become their first choice in banking. Taking cue from its pool esteemed clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that upholds and epitomizes its vaunted marquees “Your Trusted Partner”
Social Responsibilities and Economic performance The ethos of DBBL for pursuing its activities in social arena has got further momentum with your enthusiasm and support. Dutch-Bangla Bank Foundation (DBBF) is consistently pursuing its objective of being active in those social areas where it is needed most. The Foundation carries out diverse social and philanthropic activities in the field of education, health, conservation of nature, creation of social awareness, rehabilitation of distressed people and such other programs to redress human sufferings.
It also promotes different socio-cultural and sports activities. Board of Directors in order to discharge its corporate social responsibilities in a greater perspective continued its contribution amounting to 5. 00% of Bank’s profit after charging loan loss provision to Dutch-Bangla Bank Foundation (DBBF). DBBL is socially responsible in various ways. It is helping the society in the following ways: [pic] • Education • Health • Information technology • Disaster • Donation Here is the description of all the activities of DBBL does as CSR in different field. Education
To grant, pay or give, award scholarship, stipends, prizes, rewards, allowance and other financial assistance or help in cash or kind to students with a view to help them in prosecuting their study in universities, schools, colleges, educational institutions, technical institutions, art schools, institutions of teaching commercial and training, research or educational works in Bangladesh or abroad subject to such terms and conditions as shall from time to time be prescribed by the Board of Trustees for advancement and promotion of education. Below are some of the recent activities of DBBL in the form of CSR in education Sector. DBBL awards Fellowships to pursue M. Phil, Doctoral & Post Doctoral Degree • Dutch-Bangla Bank donates Tk. 9. 73 crore to Dhaka University • DBBL has awarded scholarship to meritorious including 10 physical disabled students • DBBL has awarded scholarship to 200 meritorious and needy students • Scholarship program for the meritorious and needy students • Blind Education and Rehabilitation Organization (BERDO) • DBBL donates books for Bangabandhu Sheikh Mujib Medical University • DBBL has donated books for Dhaka University Central Library Health
To establish, promote, set-up, maintain, assist, financial support and /or aid to or to help in the setting up and / or maintaining and / or running schools and other institutions, orphanages, widow homes, lunatic, asylums, old homes, poor houses or other establishments for relief and /or help to the poor, old and infirm people and / or destitute or to give, provide and / or render help and assistance in cash or kind to poor and or destitute, widows, etc; or to give, provide and I or render help and assistance to and / or implement any scheme for providing livelihood and upliftment of the poor.
Below are some of the recent activities of DBBL in the form of CSR in Health Sector. • DBBL distributes the Treatment Cards to 50 HIV/AIDS positive patients • HIV/AIDS Assistance Program • Smile Brighter Program • Support to ACID & Dowry Victims • Vesico Vaginal Fistula (V. V. F) operation to improve women reproductive health • DBBL donates a DNA detection machine to Bangabandhu Sheikh Mujib Medical • University • DBBL has donated an amount of Tk. 9. 6 crore to Diabetic Association of Bangladesh • DBBL stands by disabled and underprivileged children • DBBL has donated an Endoscope machine to National Medical College & Hospital • DBBL Smile-Brighter program starts in Dhaka City • DBBL provides medical supports to HIV/AIDS patients • DBBL has organized a 4 day-long plastic surgery operation in Faridpur Information Technology Dutch-Bangla Bank Limited (DBBL) undertakes a project with BASIS (Bangladesh Association of Software and Information Services) to award the best IT uses by Bangladeshi companies.
In this regards, DBBL’s contribution in supporting this event was 50% of the estimated cost with Tk. 6. 25 Lakh. Disaster To give, provide and/ or render monetary and / or other help and assistance for the relief of persons and animals affected by natural and other calamities such as flood, fire, famine, cyclone, earth-quake, storm, accident, pestilence, drought, epidemic, etc. Below are some of the recent activities of DBBL in the form of CSR during Disaster. • DBBL has donated Tk. 5 lakh for the victims of devastating landslides in Chittagong • DBBL donates 130 bundels of GCI sheets to Noakhali district • DBBL donates 700 bundels of high grade GCI sheets to Gaibandha and Rangpur district • DBBL has distributed blankets among the cold effected people Donation DBBL always donate large sum of money in different organizations, hospitals, sports, etc. Below are the some of the recent and big donation s of DBBL. • Tk. 4 crore for setting up a modem cancer hospital to Ahsania Mission Cancer Society. • Tk. 1 crore for setting up a modern cancer hospital to Bangladesh Cancer Society. Tk. 3 crore to Bangladesh Olympic Association • Tk. 1. 20 crore for setting up a pediatric hospital to provide service to low income people. • Tk. 15,00,000/= to Rotary Club of Metropolitan Dhaka to purchase a modern equipment for the hearing impaired children DBBL Recognition DBBL has received Asian CSR Award-2005 Dutch-Bangla Bank Limited has won Asian CSR Award-2005 for its outstanding program on Corporate Social Responsibility (CSR). Mr. Yeasin Ali, Managing Director, DBBL is seen receiving Asian CSR Award-2005 from the Chief Guest, Dr.
Juwono Sundarsono, the Honorable Minister for Defense, the Republic of Indonesia at a ceremony held on September 09, 2005 in Jakarta. SWOT Assessment Dutch-Bangla Bank started operation is Bangladesh’s first joint venture bank. The focus of the bank has been financing high-growth manufacturing industries in Bangladesh. It was the first bank in Bangladesh to be fully automated. DBBL’s other focus is Corporate Social Responsibility (CSR). DBBL is the pioneer in this sector and termed the contribution simply as ‘social responsibility’. The company’s strategic goals are: To delight their customers • To build new era in banking • To expand market boundaries • To provide superior shareholders returns and to be a responsible business. Corporate social Responsibility (CSR) activities require a total understanding of stakeholder’ expectations and DBBL takes actions to meet these expectations where they are realistic and legitimate. ’ The c o m p a n y a l s o recognizes the importance of clear sense of corporate vision and values. Its group and local teams work effectively with core business functions to ensure CR is properly managed throughout the entire company.
Figure1 – summarizes t h e m a i n strengths, weaknesses, opportunities and threats which are assessed below. Recommendation: Dutch-Bangla Bank now performs their social responsibility in some selected sector. Its have a separate foundation called Dutch-Bangla Bank foundation. The bank donates mainly towards social awareness programs, medical and educational fields. DBBL also maintains the largest scholarship program in Bangladesh whereby college/university education tuition and expenses are fully paid for unconditionally by the bank.
But they can expand their business and broaden their sector of social responsibility by the following terms: Primary school sector: primary school sector is very backward in our country. DBBL can nourish their social responsibility in this root sector. They can offer scholarship or patronize this sector and thus country can benefited as well as take a role of social responsibility by this sector. SME Sector: SME is also a root sector where this bank can apply credit formula or patronizing this sector.
Thus it can probably expand its social image. They also can supply credit at a low interest rate that can improve this sector according to its social responsibility. Microcredit sector: microcredit is very popular among root people in our country. The main advantage of microcredit is that a person can take loan without any security. If DBBL starts o give microcredit than it will help the people a lot. On the other hand it will increase the social image of DBBL. CONCLUSION: As a third world country Bangladesh has lot of problems.
Government often find themselves helpless when it comes to solving of these problems. As business owners of this country are considered as a part of the affluent section of the society they can contribute more meaningfully towards of the betterment of the society. If more company came forward to contribute to the society like DBBL, it will help to create their social branding as well as helping the society. So we can say DBBL is a pioneer in Corporate Social Responsibility in our country. Bibliography http://en. wikipedia. org/wiki/Dutch_Bangla_Bank www. dbbl. bd. com