Report of the Body

7/30/2019 Report of the Body

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Chapter One

Introduction

1.1 Origin of the assignment

1.2 Background of the assignment

1.3 Objectives of the assignment

1.4 Scope of the assignment

1.5 Methodology of the study

1.6 Limitations of the study

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Introduction

Corporate Social Responsibility (CSR), also known as Corporate responsibility, Corporate

Citizenship, Responsible Business, Social Action Program, Sustainable responsible

Business(SRB),or corporate Social Performance(CSP). It is a form of corporate self-regulation

integrated into business model.

There is an illusion/myth that Corporate Social Responsibility (CSR) is just another name for

Philanthropy. But, CSR is not just Philanthropy .

Its more than that. A corporate citizens job will not end by just donating some money and

cleaning our hands that any rich person with compassion can do. The major responsibility

includes giving a helping hand to the under privileged and disadvantaged in all possible ways.

Corporate Social Responsibility is a concept whereby companies integrate social and

environmental concerns into their business operations and in their interaction with their

stakeholders (employees, customers, shareholders, investors, local communities, government),

on a voluntary basis. CSR demands that businesses manage the economic, social and

environmental impacts of their operations to maximize the benefits and minimize the downsides.

Key CSR issues include governance, environmental management, stakeholder engagement, labor

standards, employee and community relations, social equity, responsible sourcing and human

rights. It has become a multi-billion dollar public relations specialty in the business world.

1.1Origin of the Assignment:

The assignment entitled Corporate Social Responsibility: A study on the banking sector of

Bangladesh has been prepared as a group fulfillment of MBA Program authorized by theDirector of MBA Program, Department of Business Administration, Stamford University

Bangladesh.

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1.2 Background of the Assignment:

Banking sector is very much essential for the overall development of a country. Especially

commercial banks play an important role in the field of economic growth as well as social

growth. Now-a-days the concept of Social Responsibility is flourishing rapidly in a constructive

way in banking sector. Earning the highest level of trust requires the balanced provision of value

to four constituents: customer, shareholders, market environment & society and employees.

Through this process, bank aims to contribute to the sustainable development of society as a

whole, and to fulfill corporate Social Responsibility (CSR). Bank has taken various initiatives in

various areas for attaining greater social goal. To reinforce CSR activities, bank has focused in

the areas of employment, education, sports, social & cultural activities and disaster relief.

1.3 Objectives of the Assignment:

This assignment examines the corporate social responsibility in the area of banking sector. It

deals with early history of corporate social responsibility, banking mission, social accounting

system and social audit. Besides these, it has some special objectives. These are:

To get an idea in banking role in sustainable development.

Evaluate transparency and accountability of corporate as well as public entities.

To learn business ethics, safety and ergonomic issues.

To learn banks responsibility to community.

To know standard conduct that includes employment fair policy and all core labor

standards.

To know the social accounting and auditing system in the area of corporate social

responsibilities.

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1.4 Scope of the Assignment:

This assignment mainly focuses on the corporate social responsibility practices in the context

of Bangladesh. The proposed study covers different issues of the current position of the

commercial bank in the area of social responsibilities.

A small part of the assignment is prepared with the help of primary data such as interviews.

The interview process was rigorous to obtain accurate information and actual perceptions of the

respondents.

To make the assignment fruitful I tried my best to cover different issues. These issues are:

- Sustainable Development

- Business Ethics

- Human Rights

- Legal Compliance

- Corporate Governance

- Fair Employment

- Health & Safety

- Labor Standards

- Community Relations

- Environmental Responsibilities

1.5 Methodology of the study:

According to the instruction of our supervisor, we would like to prepare information about

assignment. So the assignment is descriptive in nature. To fulfill the objectives of this

assignment, total methodology has divided in to two Major parts:

a) Data Collection Procedure:In order to make the assignment more meaningful and presentable, two sources of data

and information have been used widely.

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The Primary Sources are as follows:-

Face to face interviews

Relevant file study as provided by the officers concerned.

Communicate with other respective personnel

The secondary Sources are as follows:-

Annual report of Jamuna Bank Limited and other commercial Banks

Study related books and journals

Web sites

b) Data Processing & Analysis:

Collected information have then processed & compiled with the aid of MS Word, Excel &

other related computer software. Necessary tables have been prepared on the basis of

collected data and various statistical techniques have been applied to

analyses on the basis of classified information. Detail explanation and analysis

have also been incorporated in the report.

1.6 Limitations of the Study:

To prepare a assignment on the topic like this in a short duration is not easy task. In preparing

this assignment some problems and limitations have encountered which are as follows:

a) The main constraint of the study was insufficiency of information, which was required

for the study.

b) Most of the data are collected from secondary sources. So, the information may irrelevantdue to time constrains.

c) Due to time limitation, many of the aspects are not discussed in the present report.

d) Lack of opportunity to access to internal data.

e) To whom I interviewed, did not want to provide necessary information.

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Chapter Two

Literature Review

2.1 Corporate Social Responsibility: What it is?

2.2 Models of Corporate Social Responsibility

2.3 The Measurement of Corporate Social Responsibility (CSR)

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Literature Review

2.1 Corporate Social Responsibility: What it is?

Corporate Social Responsibility (CSR) refers to operating a business in a manner that accounts for the

social and environmental impact created by the business. CSR means a commitment to developing

policies that integrate responsible practices into daily business operations, and to reporting on progress

made toward implementing these practices.

Definitions

Corporate Social Responsibility (CSR) is becoming an increasingly important initiative of businesses

both nationally and internationally. There exists no universally accepted definition of CSR. As per

WikiPedia, Ideally, CSR policy would function as a built-in, self-regulating mechanism whereby

business would monitor and ensure its support to law, ethical standards, and international norms.

Consequently, business would embrace responsibility for the impact of its activities on the environment,

consumers, employees, communities, stakeholders and all other members of the public sphere.

Furthermore, CSR-focused businesses would proactively promote the public interest by encouraging

community growth and development, and voluntarily eliminating practices that harm the public sphere,

regardless of legality. Essentially, CSR is the deliberate inclusion of public interest into corporate

decision-making, and the honoring of a triple bottom line: People, Planet, Profit. The definition of CSR

by the World Business Council for Sustainable Development offers an acceptable definition. They state

that "corporate social responsibility 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 (CSR: Meeting Changing Expectations,

1999, Page 6)." Lotus Holdings defines CSR as, The integration of the interests of the stakeholders all

those affected by a companys conduct into the companys business policies and actions, with a focus

on the social, environmental, and financial success of a company, the so-called triple bottom-line with the

goal being to positively impact society while achieving business success. The reference site Source

Watch defines, Corporate social responsibility (CSR) is commonly described by its promoters as

aligning a company's activities with the social, economic and environmental expectations of its

stakeholders.

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Assignment on CSR Basics Business Blogger Sunil B. says, CSR is about authority and accountability,

duty and delivery, risk and reputation, transparency and trust, obligation and opportunity, but ultimately

its about Sustainability. Its about how the world works for the better.

Common CSR policies include:

Adoption of internal controls reform in the wake of Enron and other accounting scandals;

Commitment to diversity in hiring employees and barring discrimination;

Management teams that view employees as assets rather than costs;

High performance workplaces that integrate the views of line employees into decision-making

processes;

Adoption of operating policies that exceed compliance with social and environmental laws;

Advanced resource productivity, focused on the use of natural resources in a more productive,

efficient and profitable fashion (such as recycled content and product recycling); and

Taking responsibility for conditions under which goods are produced directly or by contract

employees domestically or abroad.

In the past five years great strides have been made toward integrate CSR into the core culture

of major companies. Early CSR reports often focused on philanthropy as a driver of CSR. That

notion has been supplanted by a broad commitment to protecting and improving the lives ofworkers and the communities in which companies do business. CSR reports now typically

address issues impacting virtually every area of operations: governance and ethics; worker

hiring, opportunity

and training; responsible purchasing and supply chainpolicies, and energy and environmental

impact.

The boundaries of corporate social responsibility are given below:

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Figure 2.1: Boundary of Corporate Social Responsibility

2.2 Models of Corporate Social Responsibility:

Corporate social responsibility presented four different models which were: Ethical models,

Statist Model, Liberal Model and Stake holders Model. These models are stated below:

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Source: http://ir-site.panasonic.com/annual/2007/html/10_csr/index.html


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Ethical Model:

The Cadbury Brothers in England and the TATA Family in India have been mentioned in the

study as pioneers which initiated corporate philanthropy in the 19th century eventually

contributing towards social development. It was also mentioned that Mahatma Gandhipropagated an active role for companies in socio-economic development during the 20th

century.

Statist Model:

This model is related to state leadership in corporate responsibility, which emerged in the

countries with socialist ideology, where state-owned enterprises assumed responsibility for the

well-being of workers in the workplace and beyond.

Liberal Model:

The liberal model encapsulates the philosophy of Milton Friedman (CPD, 2002) which argues

that companies are solely responsible to their owners. This model doctrine upholds that it is

sufficient for business to obey the law and generate wealth, which through taxation and private

charitable choices can be directed to social ends.

2.3 The Measurement of Corporate Social Responsibility (CSR)

There is much interest and a growing literature on the measurement of what is meant by

corporate social responsibility. MHCInternational has used a framework of measurement, fUSA

by Prof. Donna Wood, and applied this framework to dozens of companies. The work is

described in detail elsewhere.

Briefly, CSR is measured following a business organization's configuration into three levels:

Principles of social responsibility

Processes of social responsiveness

Outcomes as they relate to the firm's societal relationships

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Level I: Principles of Social Responsibility

The level of application of these principles is institutional and is based on a firm's basic

obligations as a business organization. Its value is that it defines the institutional relationship

between business and society, and specifies what is expected of any

business. This level of the CSR model itself is all about the relationship between business and

society at large and it has three major elements:

Legitimacy concerns business as a social institution, and frames the analytical view of the

interrelationship of business and society.

Public Responsibility concerns the individual firm and its processes and outcomes within

the framework of its own principles in terms of what it actually does.

Managerial Discretion whereby managers and other organizational members are moral

actors. Within every domain of corporate social responsibility, they are obliged to

exercise such discretion as is available to them, toward socially responsible outcomes.

Level II: Processes of Social Responsibility

Corporate social responsiveness is a business's capacity to respond to social pressures. This

suggests the ability of a business organization to survive through adaptation to its business

environment. To do so, it must know as much as possible about this business environment, be

capable of analyzing its data, and must react to the results of this analysis. But the environment

of business is not static; it is a complex and ever changing set of circumstances. This

environment can be unchanged for decades, if not centuries, and then it falls apart and is

reformed like a kaleidoscope with increasing rapidity. The ability to successfully scan, interpret,

and react to the business environment requires equally complex mechanisms.

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Three elements are identified as basic elements of this level of the CSR model:

Business Environment Scanning indicates the informational gathering arm of the business

and the transmission of the gathered information throughout the organization.

Stakeholder Management. A stakeholder is defined as any group or individual who can

affect or is affected by the achievement of the firm's objectives for example: Owners;

Suppliers; Employees; Customers; Competitors; Domestic

and Foreign Governments; Nonprofit organizations; Environmental and Consumer

Protection Groups; and Others. Stakeholder Management refers to mapping the

relationships of stakeholder to the firm (and among each other) whilst finding, listening

and meeting their seeking to balance and meet legitimate concerns as a prerequisite of

any measurement process.

Issues Management having identified the motivating principles of a firm and having

determined the identities, relationships, and power of stakeholders, the researcher now

turns to the main issues which concern stakeholders.

Level III: Outcomes

The main focus of measurement is the third level of the CSR model. To determine if "CSR

makes a difference", all of the stakeholders relevant to an issue or complex of issues must be

included in any assessment of performance. There are, again, three main categories:

Internal Stakeholder Effects are those that affect stakeholders within the firm. An

examination of these might show how a corporate code of ethics affects the day to day

decision making of the firm with reference to social responsibility. Similarly, it can be

concerned human resource policies such as the positive or negative effects of corporate

hiring and employee benefits practices.

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External Stakeholder Effects concern the impact of corporate actions on persons or

groups outside the firm. This might involve such things as the negative effects of a

product recall, the positive effects of community related corporate philanthropy, or

assuming the natural environment as a stakeholder, the effects of toxic waste disposal.

External Institutional Effects refer to the effects upon the larger institution of business

rather than on any particular stakeholder group. Several

environmental disasters made the public aware of the effect of business decisions on thegeneral public for example. This new awareness brought about pressure for environmental

regulation which then affected the entire institution of business rather than one specific firm.

In the form of a diagram, the AA1000 framework on social accounting looks like this:

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Figure 2.2: Account Ability Guidelines

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http://www.accountability.org.uk/


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Chapter Three

Corporate Social Responsibility Practices in Jamuna Bank Limited

3.1 Corporate Social Responsibility: Bangladesh Perspective

3.2 Importance of CSR

3.3 Area of Social Responsibilities of Jamuna Bank Limited

3.4 Corporate Social Responsibility Practices in Jamuna Bank

Foundation

Corporate Social Responsibility Practices in Banking Sector

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3.1 Corporate Social Responsibility: Bangladesh Perspective:

Bangladesh has always held great promise. The people of Bangladesh fought a historic War of

Liberation in 1971, one of the bloodiest wars in the history of mankind, against Pakistan with an

aim to establishing a socio-economically just and equitable society where each citizen would

have all the opportunities to flourish his/her future in a conducive environment. After its

independence of 40 years, since 1971, the country has earned both positive achievements and has

been labeled with many negative images, either imaginary or genuine. The Bangladeshi people

are still struggling to make tangible progress in the socio-economic arenas. This report highlights

the need for Corporate Social Responsibility (CSR) in establishing its positive image globally.

3.2 Importance of CSR:

It is being widely recognized by the corporate sector that augmented corporate social

responsibility (CSR) designed to respond to huge unmet needs of the society can be one of the

important means in the achievement of long term and persistent business value. The high level ofawareness of CSR has also strongly come about as a result of the United Nations Development

Goals (MDG), in which a major goal is the increased contribution of assistance from a range of

organizations to help alleviate poverty and hunger, and for business to be more aware of their

impact on society.

The concept of corporate social responsibility is important for:

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Good economic performance

Good Social Practice

Good environmental practice

3.3 Area of Social Responsibilities in Banking Sector:

Despite stiff competition in the banking industry, it is essential for a company to behave in a

responsible manner towards both the environment and society. This belief exists on two pillars.

First, to be successful on a long-term basis, they need to trust their shareholder-customers,

shareholders, employees and society. Behaving responsibility towards society and the

environment strengthens this trust. Second, by taking ecological and social risks and reward into

account they strengthen their corporate values. Their commitment has always been to behaveethically and to contribute towards changing the quality of life of their people, the local

community and generally the society. Corporate social responsibility focuses on:

Figure 3.2: Area of Social Responsibility

Source: www.energyint.org.uk/index.cfm?page=1045

Elements of

Social

Responsibility

Environment

Market

Place

Work place

Community

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3.4 Corporate Social Responsibility Practices in Jamuna Bank Foundation

We Are For The People Under Challenge

I Financial support for construction of Liberation War Museum

Alhaj MA. Khayer, Founder Chairman, Jamuna Bank Limited handed over a Pay Order for Tk.

50.00 (Fifty) Lac to Honourable Prime Minister of the People's Republic of Bangladesh for the

noble cause of construction of the Liberation War Museum (Muktijuddha Jadughar) on behalf of

Jamuna Bank Ltd. as a part of CSR activities.

Donation to the Honorable Prime Minister's Relief and Welfare Fund for thebereaved

family members of the victims of thedevastating blaze at Nimtoli and buildingcollapse in

Bagunbari in the city

Alhaj Md. Rezaul Karim Ansari, Director (Immediate

past Chairman of the Bank) handed over a Pay Order

for Tk 25.00 (Twenty Five) Lac to Honourable Prime

Minister of the People's Republic of Bangladesh for thebereaved family members of the victims of the

devastating blaze at Nimtoli and building collapse in

Bagunbari in the city as a part of CSR activities.

Model Village (Adarsha Gram) at Thakurgaon

A Model Village (Adarsha Gram) has been established at Singpura village under the Thakurgaon

district sponsored by Jamuna Bank Foundation. The objectives of the establishment of the Model

Village is to promote the life-standard of remote village dwellers and unprivileged people of the

society as CSR activities of Jamuna Bank Limited, The inaugural ceremony of the Model Village

was attended among others by Al-Haj Nur Mohammad, (Chairman, JBF), Engineer AKM

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Mosharraf Hussain, (Director, Jamuna Bank Limited), Mr. Md. Belal Hossain, (Chairman,

Jamuna Bank Limited) and Mr. Md. Sirjul Islam Varosha, (Director, Jamuna Bank Limited). The

function was presided over by Mr. Md. MotorRahman, Managing Director of the Bank and

Member-Secretary of the Foundation.

Anti Drug Seminar & Rally

The Foundation as a part of its anti-drug movement distributes Drug Awareness Posters, No

Smoking Stickers etc. and on regular interval publishing ras GFTI snw csj^ ^ra sn^i" in widely

circulated daily newspapers and published Poster in this regard, which are displayed in the

Branches and Head Office of the Bank with a view to make aware the people for saying no to

drug. Foundation as a part of social responsibility also organized Seminar on Anti Drug to the

following venue:

BIAM Auditorium, Dhaka on June 25,2010

As a part of CSR activities and to create awareness against drug among the people of the

society JBF arranged Anti-Drug Rally the following places:

Press Club, Dhaka on November 06,2010

BograonJune25,2010

Free Eye Camp

The Foundation is always beside all walks of people of the society, who have eyes but have no

such ability to get medication/treatment To bring those people, Foundation organized free eye

camp in different areas of Bangladesh, with free medicine in the following areas:

Laksham Public Hall, Comilla on March 14, 2009. Treatment of 536 persons were given, 65

persons were referred for operation and 37 patients were operated upon during day long

program, Mr. Md. Tajul Islam MP, Director of the Bank was Chief Guest, presided over by AI-

Haj Nur Mohammed, Chairman of the Foundation, Managing Director & CEO Mr. Md. Motior

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Rahman was also present Rampal High School, Munshigonj on March 20,2009. Treatment of

481 patients were given, provided free of cost operations of 16 patients in Lions Eye Hospitalon

21-05-2009 free of cost. Mr. M. Idris Ali MP was Chief Guest, presided over by AI-Haj Nur

Mohammed, Chairman of the Foundation and Managing Director & CEO Mr. Md. Motior

Rahman was also present. Kazipur Rani Dinomoni High School, Sirajgonj on 09-05-2009.

Treatment of 512 patients were given. Mr. Sakhawat, Abu Khair Mohammad, Director of the

Bank was Chief Guest, presided over by AI-Haj Nur Mohammed, Chairman of the Foundation

and Managing Director & CEO Mr. Md. Motior Rahman was also present Nanking Darbar Hall,

Rajshahi on April 18,2009. Treatment to 503 patients were given. AI-Haj Nur Mohammed,

Chairman of the Foundation was Chief Guest and Managing Directors CEO Mr. Md. Motior

Rahman was also present Rupgonj, Narayangonj on April 04, 2009. Treatment to 512 patients

were given. Mr. Golam Dastagir Gazi, Bir Protik, MP & Director of the Bank was Chief Guest,

presided over by AI-Haj Nur Mohammed, Chairman of the Foundation, Managing Director &

CEO Mr. Md. Motior Rahman was also present.

Payment of Tk.0.50 Crore only to Bangladesh Olympic Association for participating in the

11 th SA Games Dhaka 2010 as Co-Sponsor

The 11 th SA Games Dhaka 2010 was arranged by Bangladesh Olympic Association from

January 29, 2010 to February 9, 2010, which was a historic event for Bangladesh to get an

opportunity to arrange such kind of prestigious program in Bangladesh for the first time of its

kind.

This event was witnessed by more than a billion viewers worldwide through different media and

participated by Ministers and dignitaries. On this occasion, Tk.0.50 Crore was contributed by

Jamuna Bank Limited as Co-Sponsor of the event.

Tk.15.00 lac for purchasing Card for the Cricketers of Bangladesh National Cricket Team

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One of the member banks of Bangladesh Association of Banks, Jamuna Bank Limited donated

Tk.l 5.00 lac for the cricketers of Bangladesh National Cricket Team for wining against New

Zealand in five one day international series. Honarable Prime Minister of the People's Republic

of Bangladesh handed over the cheques among the cricketers of Bangladesh Nation Cricket

Team.

Financial Assistance to Mr. Binod Bihari Chowdhury a national hero, a valiant freedom

fighter who fought against British rulers and also a co-fighter of Shaheed Masterda Surja

Sen

JB Foundation provides financial assistance every month to Mr. Binod Bihari Chowdhury, a

great freedom fighter who fought against British rule and who was a Co-fighter of Shaheed

Masterda Surja Sen. The financial assistance will continue for rest of the time of his life in

recognition of contribution towards freedom movement against the British rulers. In this regard

a Program was arranged by the Foundation to honour the great freedom fighter. On the occasion

the Governor of Bangladesh Bank, Dr. Atiur Rahman was the chief guest and was presided over

by AI-Haj Nur Mohammed, Chairman of the Foundation, Al-haj M. A. Khayer, Director &

Founder Chairman of the Bank and Managing Director & CEO Mr. Md. Motior Rahman were

also present in the program. Mr. A. Q. Siddiqui, Chairman of Bangladesh Commerce Bank

Limited, Mr. Mohiuddin Ahmed, Ex-Foreign Secretary, Journalist Mr. Abul Momen and otherdignitories were also present as guests of honour.

Financial Assistance for two martyred Army Officers in BDR Carnage at Peelkhana,

Dhaka and one Army Personnel killed in Helicopter crash at Ghatail, Tangail

A bloodbath took place at the BDR Headquarters in the city on February 25-26,2009. Around 57

officers were killed in the carnage. To assist two of the family of martyred army officers and

one Army Personnel killed in Helicopter crash at Ghatail, Tangail the Foundation donated Tk.l

4.40 lac as a part of its corporate social responsibility.

Relief for AILA affected People at Dakop Thana of Khulna

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A Severe Cyclonic Storm known as Aila was formed on 25 May 2009.330 people were killed

by Aila and at least 8,208 more were missing, while about 1 million were rendered homeless.

Health officials in Bangladesh confirmed a deadly outbreak of diarrhoea on 29 May, with more

than 7,000 people being infected and four dying. In Bangladesh, an estimated 20 million people

were at risk of post-disaster diseases due to Aila. Damage totaled $40.7 million (USD).

Jamuna Bank Foundation responded immediately and distributed rice, dal, potato, medicine

etc.among the 7,000 affected family of Dakop Thana under Khulna District. Mr. Sakhawat, Abu

Khair Mohammad, Director, AI-Haj Nur Mohammed, Chairman of the Foundation, Engr. A. K.

M. Mosharraf Hussain, Director and Mr. Kanutosh Majumder, Director of the Bank distributed

the grants among the people in presence of UNO, Officer in-Charge and Vice Chairman of the

Upazilla.

Jamuna Bank OLD HOME & OLD AGED REHABILITATION COMPLEX

Jamuna Bank Foundation has unveiled the plaque of Old Home at Mekail Nagar, Keranigonj.

AI-Haj Nur Mohammed, Chairman of the Foundation presided over the function. Mr. Sakhawat,

Abu Khair Mohammad, the former Chairman of the Bank and former Vice Chairman Mr. Ismail

Hossain Siraji, Director Engr. A. K. M. Mosharraf Hussain, Director Mr. Kanutosh Majumder

were present and Managing Director, Mr. Md. Motior Rahman was also present. A local

business man AI-Haj Zulhash was present in the occasion who donated 10 bigha land for

establishing this Old Home. In this regard a master plan was also approved by the Foundation to

establish a 10 (ten) storied building, which would be constructed to accommodate people having

no place in the earth to stay. Here old aged people but poor will be able to stay free of cost,

option is there for middle income and high income class who may stay with minimum cost. Mrs.

Lailun Nahar Ekram, the founder of M/S Engineers & Consultants Ltd., one of the senior and

pioneer Architect Firm of the country sketched the master plan without any cost due to her

willingness to do something for the people of the locality. Under this plan a School will be

constructed to facilitate the children of local community, Market will be established for

facilitating the people of the village as well as local people having community center, shops etc.

A Training Center will be constructed to provide training among the unprivileged students of

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the local area with an objective to make them eligible for carrying on jobs relating to technical

know how. All infrustructal facility will be established in phases.

Jamuna Bank AFTER CARE CENTRE

Jamuna Bank Foundation has organized series of seminars/ symposia in different areas of the

country 'on the menace of drugs' with a view to unite, make aware of severe impact of drugs and

to build awareness against drug addiction among the people of the society/community and also

employees of the Bank. In view of helping the society, the Foundation established a hospital

having 3,400 sft floor space in one of the drug prone area, Mirpur with an object to establish

more such kind of hospitals nationwide.

The hospital is furnished with 10 (ten) nos. beds along with modern equipments, 24 hours

nursing facility and has doctors to support the hospital round the clock. Dr. Atiur Rahman,

Governor of Bangladesh Bank inaugurated the hospital, where the Chairman of the Foundation,

AI-Haj Nur Mohammed was present and presided over the meeting. AI-Haj Rezaul Karim

Ansari, Immediate past Chairman of the BODS, AI-Haj M. A. Khyer, Director, Mr. Kanutosh

Majumder, Director were also present in the meeting. Mr. Md. Motior Rahman, Managing

Director & CEO was also present on the occasion.

AI-Haj Nur Mohammed, Chairman of the Foundation along with AI-Haj Rezaul Karim Ansari,

Immediate past Chairman of the BODS and Mr. Md. Motior Rahman, Managing Director

visiting the After Care Center at Mirpur Foundation inaugurated the first Sewing Machine

Training Centre having 1,300 sft floor space at Senpara Parbata, Rokeya Sharani, Mirpur,

Dhaka to assist the unprivileged women of the society with a view to creat skilled women work

force for country's garments industry. The vision of the Foundation is to eradicate

unemployment from the country, prepare skilled work force for uninterrupted productionprocess, eventually bring in more foreign currency into the country and strengthen GDP and

Socio-economic condition.

Blood Donation Program:

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During 2010 Jamuna Bank Foundation organized Blood

Donation Program at National Press Club, Dhaka and

Hotel Agrabad, Chittagong on June 11, 2010 & June 05,

2010 respectively. Alhaj Rejaul Karim Ansari,

Immediate past Chairman of the Board of Directors and

Gazi Golam Murtoza, Immediate past Vice Chairman of

the BODS were present in the program as Chief Guest

and Special Guest respectively. AI-Haj Nur Mohammed, Chairman of the Foundation presided

over the programs. Mr. Md. Motior Rahman, Managing Director was also present.

Scholarship & Crest Awarding Program at IDEB Multipurpose Hall, Kakrail, Dhaka among

unprivileged but meritorious students and off springs of JBL employees who got GPA-5 in 2010

JB Foundation every year organizes Scholarship & Crest Program with a view to motivate the

students who are unprivileged but meritorious having ambition to do something for building the

nation. At the same time the Foundation also organized the Scholarship & Crest distribution

Program for children of the JBL employees. During this year total 66 (Sixty Six) students have

received Scholarship with monetary benefit to purchase books and tuition fees.

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Art Competition Program

An Art Competition Program was held at Bangladesh

Shishu Academy, Dhaka on 18-12-2010 for the School-

going Students on the occasion of Great Victory Day

the 16th December-2010 under the auspicious of

Jamuna Bank Foundation. Alhaj Rejaul Karim Ansari,

Immediate past Chairman of the BODS was present at

the program as Chief Guest. Alhaj Nur Mohammed, Chairman, JBF presided over the program.

Md. Motior Rahman, Managing Director, Jamuna Bank Limited was also present in the above

program.

"Sewing Machine Training Center"

With this broader drearn, the Foundation chalked out a plan to establish Sewing Machine

Training Centre countrywide phase by phase. In this arena Jamuna Bank Foundation is playing a

significant and pioneering role to implement such kind of Training Centre. As a process of

building healthy nation Jamuna Bank Foundation has established Sewing Machine Training

Centres in the following areas in 2010;

Rupgonj Area, Narayangonj Rangpur Badda, Dhaka, Bashikpur, Laxmipur Sirajgonj

Munshigonj, Laxam, Comilla Muksudpur, Gopalgonj

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Countrywide distribution of Blankets

among winter distressed people JB

Foundation every year distributes free

blankets countrywide among winter

distressed people as a part of its social

responsibility.

Contribution to Jamuna Bank Foundation

The Board of Directors of Jamuna Bank Limited in its 85th meeting held on 10-07-2007

approved for formation of Jamuna Bank Foundation and the Bank shall contribute to the fund of

the foundation at the rate of not less than 0.50% of Pre-Tax profit of the Bank every year.The

interest to be earned on the deposit of the Foundation shall also be added to its Fund.

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Key Financial Indicators, Ratios & Highlights

Donation of Jamuna Bank foundation

JBL JBL (Consolidated)

Taka In BDT Million Taka In BDT Million

Performance during the year

Interest income 5201 .50 3788.9 37.28 5207.52

Interest expenses 3725.17 2888.74 28.95 3726.52

Net interest income 147633 900.16 64.01 1481.00

Investment income 1152.80 1361.49 -15.33 1152.80

Other income 1112.46 666.34 66.95 1112.46

Operating income 3741.59 2927.99 27.79 3746.26

Operating expenses 1335.61 1013.74 31.75 1335.61

Extra-ordinary income 0.32 - - 0.32

Profit before provision and tax 2406.30 1914.25 25.70 2410.97

Provision for loans and assets 341.4 351.05 -2.75 344.44

Profit after provision before tax 2064.90 1563.2 32.09 2066.53

Contribution to Jamuna bank

foundation

10.32 7.82 31.97 10.32

Tax including deferred tax 988.20 632.26 56.30 990.18

Profit after contribution to foundation 1066.38 923.12 15.52 1066.03

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Chapter Four

Interview Analysis

4.1 Introduction

4.2 Interview with Bankers

4.3 Remarks

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Interview Analysis

4.1 Introduction:

We have arranged two interview sessions with the Chairman of Jamuna Bank Foundation andSenior Officer of Jamuna bank limited. In this session, we have set out some open-end questions

to know their opinion in the area of Corporate Social Responsibility. The questions that were

asked to them were:

List of Questions

Question No. Questions

1. Whats your view about the practices of social responsibility in bankingsector of Bangladesh?

2. According to you what should be the range of CSR performed by

commercial banks as a fast growing private sector?

3. Does your bank follow any guidelines on performing CSR?

4. Do you think that the area of social investment by your bank should be

extended?

5. Do you think that Banks should publish a social report or have an ethical

audit in addition to the general annual report?

6. What are the reasons for adopting sustainable finance practices?

4.2 Interview with Bankers:

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In fact the experience of taking interview was not sweeter one. Did not allow us to take an

interview with the directors. Although we have given our utmost effort we could have only

reached up to the level of Chairman and a senior officer. The interviews that we took from two

bankers are given below.

4.2.1 Interview with Al-haj Nur Mohammed, Chairman of Jamuna Bank Foundation.

About the practices of social responsibility in banking sector Al-Haj Nur Mohammed said that

banking sector plays an important role in the social development from the very beginning of the

society. The concept of corporate social responsibility introduce recently with a wide range of

grapes. But in the earlier stage it exists in the corporate sector in a narrow way. Then about the

range of CSR performed by commercial bank his opinion was that the range of the CSR is a

relative. There is no actual boundary because it depends on the social needs and corporate

capabilities. When the question of guidelines on performing CSR came he argued that there is no

guideline for CSR. But, their management team decides what should be the area and how to

contribute. They establish Jamuna Bank Foundation to distribute their part of profit in a most

prominent way. In response to the question on the area of social investment by their bank he

informed us that every year they extend their contribution to different sector depending upon

priority basis. And while he was asked whether banks should publish a social report, he

disagreed and saying that they include CSR in the annual report to inform the shareholder that

their investment develops the society. Another thing is that there is no productive user of Social

Report. And finally he said the reason for adopting sustainable finance practices was enhanced

reputation.

4.2.2 Interview with Md. Masud Rana Senior Officer of Jamuna Bank Ltd.

About the practices of social responsibility in banking sector, Md. Masud Rana thinks, as a part

of the society its their responsibility to participate in socio-economic development. In answer to

the next question, he thinks that corporate social responsibility is a moral issue. So, its area could

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not be specifically determined. He also said that social contribution should give importance on

priority basis. In response

to the third question, he said that banking sector should have the guidelines regarding CSR but at

present they dont have. In response to the forth question, he said that every year they extend

their contribution to different sector depending on priority basis. In response to the fifth question,

his answer is no. Because, they include CSR program in the annual report as an important part.

He said that social audit may be introduced but should not be made mandatory. His overall

valuation of CSR practices by bank is for both enhanced reputation and responsibility too.

4.3 Remarks:

From the analysis of their interview, we can highlight the following aspects:

Setting achievable goals and ensuring appropriate monitoring systems in the corporate to

look into the corporate social affairs

Promoting transparency and accountability of corporate as well as public entities

Monitor and enforce laws related to environmental protection, health & safety issue Provide policy guidelines for smooth functioning of the corporate entity

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Chapter Five

5.1 Findings

5.2 Conclusion

5.3 Recommendation

5.4 References

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Findings, Conclusion and Recommendation

5.1 Findings:

The variability of the opinions of different commercial banks provides huge scope for policy and

learning interventions to promote and strengthen corporate responsibility in Bangladesh. My

overall findings of Jamuna Bank Limited are given below:

a) The employees have a very poor idea about corporate responsibility. They are

busy how to restore their image in the market place.

b) The variability of perceptions indicates specific areas where to intervene and set

priorities.

c) Environmental concerns should receive greater attention by the bank.

d) Gender aspects should be more carefully addressed and monitored for their

implementation.

e) Bank should be more transparent in recruitment process. But there is evidence

that JBL is biased.

f) To skill up the students, banking sector should introduce internship program. A

few numbers of bank provide this type of opportunities but emphasize on

nepotism.

g) More attention should be given toward consultation and communication with

local communities.

h) There is a problem that all contribution or donations made by the bank is from

post tax income. So, it does not motivate to contribute more in the social sector.

i) Most of the banker treats social investment as their enhancement of reputation

not as a social responsibility.

j) There is no uniform guideline by the governing bodies regarding CSR.

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5.2 Conclusion:

The ultimate conclusion is that corporate responsibility is not just philanthropy and obeying the

laws. The emergent concerns are the impact of JBL activities on society and the needs and goals

of all stakeholders. Banks should not attempt to minimize the expectations of the society; rather

they need to respond to them more efficiently.

The corporate responsibility practices can play positive role in improving competitiveness in the

corporate entities in Bangladesh as well as improve working and living environment for the

workforce.

5.3 Recommendation:

On the basis of our observational study, we have suggested the following:

a) Formulate uniform rules and regulations : Government or regulatory bodies

should formulate uniform rules and regulation regarding CSR practices in

banking sector.

b) Tax Shield : All social contribution by the JBL should be tax exempted. As

a result, social contribution will increase gradually.

c) Change corporate values : In most of the cases, social contribution treated

as enhance reputation only. But, JBL has to change his values and try to

think its his responsibility too.

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References

A journey through the Decade, 2011 by, M. Shamsul Arefin

Annual report -2010, Jamuna Bank Ltd.

CSR Network. (Visited: 4 July 2010)

"What is CSR?", 8 June 2009,

(Visited: 4 July 2010)

KPMG India. "Corporate Social Responsibility (CSR)", 2010,


STENUM GmbH. "Corporate Social Responsibility, Take Responsibility - Add

Value!", 2009,


B, Sunil. "About CSR, and how it is not just philanthropy", 7 December 2008,


Source Watch. "Corporate Social Responsibility", 22 January 2010,


Barnett, Tim. "CORPORATE SOCIAL RESPONSIBILITY, Reference for Business,

Encyclopedia of Business", 2nd ed.,


Wikipedia. "Corporate social responsibility", Last Updated on 3 July 2010,


O'Brien, Jim. CSR Consulting, 2009, (Visited: 5 July

2010) (Diagram at Definition Section)

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Rahman, Ziaur. "Corporate Social Responsibility (CSR) - Global and Bangladeshi

Perspectives", 7 June 2009,


Mondol, Edward Probir. "Why Corporate Social Responsibility? -The Context of

Bangladesh", 20 July 2009,


Business Link. "The business benefits of corporate social responsibility",


As You Sow Foundation. "Corporate Social Responsibility",


Documents

Report of the Body