CORPORATE SOCIAL RESPONSIBILITIES (CSR)

Introduction of Corporate Social Responsibilities

One of humankind’s greatest challenges this century will be to ensure sustainable, just and
balanced development. The needs of current and future generations cannot be met unless
there is respect for natural systems and international standards protecting core social and
environmental values. In this context, it is increasingly recognized that the role of the
business sector is critical. As a part of society, it is in business’ interest to contribute to
addressing common problems. Strategically speaking, business can only flourish when the
communities and ecosystems in which they operate are healthy.
There is growing recognition of the significant effect the activities of the private business
sector have—on employees, customers, communities, the environment, competitors,
business partners, investors, shareholders, governments and others. It is also becoming
increasingly clear that firms can contribute to their own wealth and to overall societal
wealth by considering the effect they have on the world at large when making decisions.
Business opinion polls and corporate behavior both show increased levels of
understanding of the link between responsible business and good business. Also, investors
and financial markets are beginning to see that CSR activities that integrate broader
societal concerns into business strategy and performance are evidence of good
management. In addition to building trust with the community and giving firms an edge in
attracting good customers and employees, acting responsibly towards workers and others
in society can help build value for firms and their shareholders.
It must be recognized up front that CSR still creates a degree of confusion and
controversy. Is the promotion and implementation of socially and environmentally
preferable corporate conducts a function of business or government? Is the implementation
of CSR practices a cost or a value-enhancer? Is it just public relations? In part, the
problem stems from definitional issues, and a perception in some quarters that CSR is
more about philanthropy, rather than “doing business” and responding to shareholder
interests. The central thesis of this guide is that CSR is an integral part of the new business
model.
Businesses are an integral part of the communities in which they operate. Good executives
know that their long-term success is based on continued good relations with a wide range
of individuals, groups and institutions. Smart firms know that business can’t succeed in
societies that are failing—whether this is due to social or environmental challenges, or
governance problems. Moreover, the general public has high expectations of the private
sector in terms of responsible behavior. Consumers expect goods and services to reflect
socially and environmentally responsible business behavior at competitive prices.
Shareholders also are searching for enhanced financial performance that integrates social
and environmental considerations, both in terms of risk and opportunities.
Governments, too, are becoming aware of the national competitive advantages to be won
from a responsible business sector. At the same time, leading industry associations, such
as the World Business Council for Sustainable Development, have also suggested that
countries as well as companies might gain a competitive advantage from corporate social
responsibility. In much of the developing world, governments and business understand
that their respective competitive positions, and access to capital, increasingly depend on
being seen to respect the highest global standards.
Even companies which may have a good reputation can risk losing their hard-earned name
when they fail to put systematic approaches in place to ensure continued positive

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performance. The effect of a tarnished reputation often extends far beyond that one firm:
entire sectors and, indeed, nations can suffer. Hardly a month goes by without some
example of a major corporation suffering a reduced market position as a result of
questionable behavior, with many others subsequently finding themselves to be a part of
the collateral damage. These firms frequently expend considerable time and money
attempting to regain their reputation, with mixed results.

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Define the term Corporate Social Responsibilities

As per working definition, ISO 26000 Working Group on Social Responsibility, Sydney,
February 2007, “Social responsibility (is the) responsibility of an organization for the
impacts of its decisions and activities on society and the environment through transparent
and ethical behavior that is consistent with sustainable development and the welfare of
society; takes into account the expectations of stakeholders; is in compliance with
applicable law and consistent with international norms of behavior; and is integrated
throughout the organization.”
Corporate social responsibility (CSR) is also known by a number of other names. These
include corporate responsibility, corporate accountability, corporate ethics, corporate
citizenship or stewardship, responsible entrepreneurship, and “triple bottom line,” to name
just a few. As CSR issues become increasingly integrated into modern business practices,
there is a trend towards referring to it as “responsible competitiveness” or “corporate
sustainability.” A key point to note is that CSR is an evolving concept that currently does
not have a universally accepted definition. Generally, CSR is understood to be the way
firms integrate social, environmental and economic concerns into their values, culture,
decision making, strategy and operations in a transparent and accountable manner and
thereby establish better practices within the firm, create wealth and improve society. As
issues of sustainable development become more important, the question of how the
business sector addresses them is also becoming an element of CSR. The World Business
Council for Sustainable Development has described CSR as the business contribution to
sustainable economic development. Building on a base of compliance with legislation and
regulations, CSR typically includes “beyond law” commitments and activities pertaining
to:
- corporate governance and ethics;
- health and safety;
- environmental stewardship;
- human rights (including core labour rights);
- sustainable development;
- conditions of work (including safety and health, hours of work, wages);
- industrial relations;
- community involvement, development and investment;
- involvement of and respect for diverse cultures and disadvantaged peoples;
- corporate philanthropy and employee volunteering;
- customer satisfaction and adherence to principles of fair competition;
- anti-bribery and anti-corruption measures;
- accountability, transparency and performance reporting; and
- supplier relations, for both domestic and international supply chains.
These elements of CSR are frequently interconnected and interdependent, and apply to
firms wherever they operate in the world. It is also important to bear in mind that there are

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two separate drivers for CSR. One relates to public policy. Because the impacts of the
business sector are so large, and with a potential to be either positive or negative, it is
natural that governments and wider society take a close interest in what business does.
This means that the expectations on businesses are rising; governments will be looking for
ways to increase the positive contribution of business. The second driver is the business
driver. Here, CSR considerations can be seen as both costs (e.g., of introducing new
approaches) or benefits (e.g., of improving brand value, or introducing products that meet
sustainability demands). The remainder of this guide addresses the second of these drivers.
Since businesses play a pivotal role both in job and wealth creation in society and in the
efficient use of natural capital, CSR is a central management concern. It positions
companies to both proactively manage risks and take advantage of opportunities,
especially with respect to their corporate reputation and the broad engagement of
stakeholders. The latter can include shareholders, employees, customers, communities,
suppliers, governments, non-governmental organizations, international organizations and
others affected by a company’s activities (see Part 3, which is exclusively devoted to
stakeholder engagement).
Above all, CSR is about sensitivity to context—both societal and environmental—and
related performance. It is about moving beyond declared intentions to effective and
observable actions and measurable societal impacts. Performance reporting is all part of
transparent, accountable—and, hence, credible—corporate behavior. There is considerable
potential for problems if stakeholders perceive that a firm is engaging in a public relations
exercise and cannot demonstrate concrete actions that lead to real social and
environmental benefits.

Why has Corporate Social Responsibilities important?

In the flat world, with lengthy global supply chains, the balance of power between global
companies and the individual communities in which they operate is tilting more and more
in favor of the companies…. As such these companies are going to command more power,
not only to create value but also to transmit values, than any other institution on the planet.
Many factors and influences have led to increasing attention being devoted to the role of
companies and CSR. These include:
Sustainable development: United Nations’ (UN) studies and many others have
underlined the fact that humankind is using natural resources at a faster rate than
they are being replaced. If this continues, future generations will not have the
resources they need for their development. In this sense, much of current
development is unsustainable—it can’t be continued for both practical and moral
reasons. Related issues include the need for greater attention to poverty alleviation
and respect for human rights. CSR is an entry point for understanding sustainable
development issues and responding to them in a firm’s business strategy.
Globalization: With its attendant focus on cross-border trade, multinational
enterprises and global supply chains—economic globalization is increasingly
raising CSR concerns related to human resource management practices,
environmental protection, and health and safety, among other things. CSR can play
a vital role in detecting how business impacts labor conditions, local communities
and economies, and what steps can be taken to ensure business helps to maintain
and build the public good. This can be especially important for export-oriented
firms in emerging economies.

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Governance: Governments and intergovernmental bodies, such as the UN, the

Organization for Economic Co-operation and Development (OECD) and the
International Labor Organization (ILO) have developed various compacts,
declarations, guidelines, principles and other instruments that outline norms for
what they consider to be acceptable business conduct. CSR instruments often
reflect internationally-agreed goals and laws regarding human rights, the
environment and anti-corruption.
Corporate sector impact: The sheer size and number of corporations, and their
potential to impact political, social and environmental systems relative to
governments and civil society, raise questions about influence and accountability.
Even small and medium size enterprises (SMEs), which collectively represent the
largest single employer, have a significant impact. Companies are global
ambassadors of change and values. How they behave is becoming a matter of
increasing interest and importance (see box below).
Communications: Advances in communications technology, such as the Internet
and mobile phones, are making it easier to track and discuss corporate activities.
Internally, this can facilitate management, reporting and change. Externally,
NGOs, the media and others can quickly assess and profile business practices they
view as either problematic or exemplary. In the CSR context, modern
communications technology offers opportunities to improve dialogue and
partnerships.
Finance: Consumers and investors are showing increasing interest in supporting
responsible business practices and are demanding more information on how
companies are addressing risks and opportunities related to social and
environmental issues. A sound CSR approach can help build share value, lower
the cost of capital, and ensure better responsiveness to markets.
Ethics: A number of serious and high-profile breaches of corporate ethics resulting
in damage to employees, shareholders, communities or the environment—as well
as share price—have contributed to elevated public mistrust of corporations. A
CSR approach can help improve corporate governance, transparency,
accountability and ethical standards (see matrix below).
Consistency and Community: Citizens in many countries are making it clear that
corporations should meet the same high standards of social and environmental
care, no matter where they operate. In the CSR context, firms can help build a
sense of community and shared approach to common problems.
Leadership: At the same time, there is increasing awareness of the limits of
government legislative and regulatory initiatives to effectively capture all the
issues that CSR address. CSR can offer the flexibility and incentive for firms to act
in advance of regulations, or in areas where regulations seem unlikely.
Business Tool: Businesses are recognizing that adopting an effective approach to
CSR can reduce the risk of business disruptions, open up new opportunities, drive
innovation, enhance brand and company reputation and even improve efficiency.

Key potential benefits for firms implementing CSR: Key potential benefits for firms
implementing CSR include:

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Better anticipation and management of an ever-expanding spectrum of risk.

Effectively managing governance, legal, social, environmental, economic and
other risks in an increasingly complex market environment, with greater oversight
and stakeholder scrutiny of corporate activities, can improve the security of supply
and overall market stability. Considering the interests of parties concerned about a
firm’s impact is one way of better anticipating and managing risk.
Improved reputation management. Organizations that perform well with regard
to CSR can build their reputation, while those that perform poorly can damage
brand and company value when exposed. Reputation, or brand equity, is founded
on values such as trust, credibility, reliability, quality and consistency. Even for
firms that do not have direct retail exposure through brands, their reputation for
addressing CSR issues as a supply chain partner—both good and bad—can be
crucial commercially.
Enhanced ability to recruit, develop and retain staff. This can be the direct
result of pride in the company’s products and practices, or of introducing improved
human resources practices, such as “family-friendly” policies. It can also be the
indirect result of programs and activities that improve employee morale and
loyalty. Employees are not only front-line sources of ideas for improved
performance, but are champions of a company for which they are proud to work.
Improved innovation, competitiveness and market positioning. CSR is as much
about seizing opportunity as avoiding risk. Drawing feedback from diverse
stakeholders can be a rich source of ideas for new products, processes and markets,
resulting in competitive advantages. For example, a firm may become certified to
environmental and social standards so it can become a supplier to particular
retailers. The history of good business has always been one of being alert to trends,
innovation, and responding to markets. Increasingly, mainstream advertising
features the environmental or social benefits of products (e.g., hybrid cars,
unleaded petrol ethically produced coffee, wind turbines, etc.).
Enhanced operational efficiencies and cost savings. These flow in particular
from improved efficiencies identified through a systematic approach to
management that includes continuous improvement. For example, assessing the
environmental and energy aspects of an operation can reveal opportunities for
turning waste streams into revenue streams (wood chips into particle board, for
example) and for system-wide reductions in energy use, and costs.
Improved ability to attract and build effective and efficient supply chain
relationships. A firm is vulnerable to the weakest link in its supply chain. Like-
minded companies can form profitable long-term business relationships by
improving standards, and thereby reducing risks. Larger firms can stimulate
smaller firms with whom they do business to implement a CSR approach. For
example, some large apparel retailers require their suppliers to comply with worker
codes and standards.
Enhanced ability to address change. A company with its “ear to the ground”
through regular stakeholder dialogue is in a better position to anticipate and
respond to regulatory, economic, social and environmental changes that may occur.
Increasingly, firms use CSR as a “radar” to detect evolving trends in the market.
More robust “social license” to operate in the community. Improved citizen and
stakeholder understanding of the firm and its objectives and activities translates

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into improved stakeholder relations. This, in turn, may evolve into more robust and
enduring public, private and civil society alliances (all of which relate closely to
CSR reputation, discussed above). CSR can help build “social capital.”
Access to capital. Financial institutions are increasingly incorporating social and
environmental criteria into their assessment of projects. When making decisions
about where to place their money, investors are looking for indicators of effective
CSR management. A business plan incorporating a good CSR approach is often
seen as a proxy for good management.
Improved relations with regulators. In a number of jurisdictions, governments
have expedited approval processes for firms that have undertaken social and
environmental activities beyond those required by regulation. In some countries,
governments use (or are considering using) CSR indicators in deciding on
procurement or export assistance contracts. This is being done because
governments recognize that without an increase in business sector engagement,
government sustainability goals cannot be reached (see box below).
A catalyst for responsible consumption. Changing unsustainable patterns of
consumption is widely seen as an important driver to achieving sustainable
development. Companies have a key role to play in facilitating sustainable
consumption patterns and lifestyles through the goods and services they provide
and the way they provide them. “Responsible consumerism” is not exclusively
about changing consumer preferences. It is also about what goods are supplied in
the marketplace, their relationship to consumer rights and sustainability issues, and
how regulatory authorities mediate the relationship between producers and
consumers.
Based on a two-year study, the World Business Council for Sustainable Development has
drawn several conclusions about the benefits of CSR to companies” • A coherent CSR
strategy, based on integrity, sound values and a long-term approach, offers clear business
benefits to companies and helps a firm make a positive contribution to society;
- A CSR strategy provides businesses with the opportunity to show their human
face;
- Such a strategy requires engagement in open dialogue and constructive
partnerships with governments at various levels, intergovernmental
organizations, non-governmental organizations, other elements of civil society
and, in particular, local communities;
- When implementing a CSR strategy, companies should recognize and respect
local and cultural differences, while maintaining high and consistent global
standards and policies; and
- Being responsive to local differences means taking specific initiatives.

What is the relationship between CSR and the law?

There is a close relationship between CSR and the law. The main instrument governments
use to address a firm’s social, environmental and economic impacts is the law. Many
countries have a wide range of laws, whether at the national, state or local levels of
government, relating to consumers, workers, health and safety, human rights and
environmental protection, bribery and corruption, corporate governance and taxation. A

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firm’s CSR approach should begin by ensuring full compliance with those laws already in
place. No matter how good a CSR policy may be, failure to observe the law will
undermine other good efforts. Looking ahead, the CSR activities of firms can be seen as a
proactive method of addressing potentially problematic conduct before it attracts legal
attention.
A key feature of the emerging CSR debate is the difference between a “compliance”
mentality (i.e., only doing those things that are required) and a “value driven” mentality
(i.e., using a CSR approach to innovate and seek new markets). Some commentators argue
that a compliance-based approach does not help business, because it tends not to drive
innovation and the “out of the box” thinking they see as necessary in the rapidly changing
business world. That said, a number of specific legal aspects are worth mentioning.
Performance reporting and the law. In many jurisdictions there are laws in place
requiring firms in particular sectors to publicly disclose certain of their practices
and activities. The U.K. Companies Act 2006, for example, requires publicly-listed
companies to report on a number of specific issues where they are necessary to
understanding the company’s business. These include environmental matters
(including the impact of the company’s business on the environment), the
company’s employees, social and community issues, and risks through the
company supply chains. Similar provisions also exist in France and across the EU.
Corporate governance and disclosure. Social and environmental issues are
increasingly being seen as integral components of the corporate governance
agenda.20 In many countries firms issuing securities are required to publicly
disclose their corporate governance practices and comply with local guidelines on
the subject. A 2005 report by the international law firm Fresh-fields, Bruckhaus
and Deringer21 concluded that under the current legal systems of many countries,
directors might be in breach of their fiduciary duties if they did not take into
account environmental, social and governance issues.
Bribery. CSR also stresses that firms should adopt responsible practices wherever
they operate. National laws making it illegal to bribe foreign officials to obtain or
retain business on the subject are often based on the 1997 OECD Convention on
Combating Bribery of Foreign Public Officials in International Business
Transactions,22 and the 2003 UN Convention Against Corruption.
Requirements under different jurisdictions. It is important to be aware of the
varying legal requirements of different countries. In the U.K., for example,
legislation requires pension fund trustees to publish a comment in their investment
statements on the extent to which their investment policies address social, ethical
and environmental issues. As noted above, in European countries laws require
companies to report on their social and environmental performance. In the U.S., a
number of firms have been sued under the Alien Tort Claims Act (e.g., Doe v.
Unocal), which raises the possibility that corporate liability could be established
through transnational civil litigation. The U.S. has also significantly revised its
corporate governance legislation in recent years, in particular, passing the
Sarbanes-Oxley Act in 2002 which establishes stricter standards for all U.S. public
company boards, management and public accounting firms. At the United Nations,
a Special Representative on Business and Human Rights to the Secretary-General
was appointed in July 2005. The Special Representative is expected to identify
standards of corporate responsibility and accountability, enhance understanding
and recognition of these standards, and issue recommendations on future United

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Nations work regarding business and human rights issues. Mention should also be
made in this context of the many business codes of conduct that exist. These codes,
often developed by a specific industry sector, are usually voluntary and not legally-
binding. Nonetheless, they can be used in a legally-binding manner in a contractual
context (e.g., in a supply chain). Here, various legal questions may arise, including
in relation to whether national, regional or international standards take precedence.

Implementing corporate social responsibility

There is no “one-size-fits-all” method for pursuing a corporate social responsibility (CSR)

approach. Each firm has unique characteristics and circumstances that will affect how it
views its operational context and its defining social responsibilities. Each will vary in its
awareness of CSR issues and how much work it has already done towards implementing a
CSR approach.
That said, there is considerable value in proceeding with CSR implementation in a
systematic way—in harmony with the firm’s mission, and sensitive to its business culture,
environment and risk profile, and operating conditions. Many firms are already engaged in
customer, employee, community and environmental activities that can be excellent starting
points for firm-wide CSR approaches. CSR can be phased in by focusing carefully on
priorities in accordance with resource or time constraints. Alternatively, more
comprehensive and systematic approaches can be pursued when resources and overall
priorities permit or require. The bottom line is that CSR needs to be integrated into the
firm’s core decision making, strategy, management processes and activities, be it
incrementally or comprehensively.
The impulse for harmonization also stems from the wider social context. As will be
described below, there are a number of governmental and partnership developed initiatives
that have emerged to provide guidance on governmental and societal expectations of
business. By using these instruments—such as the OECD MNE Guidelines or the UN
Global Compact—business users can be confident that they are basing their efforts on
internationally-endorsed approaches.
What follows below is a broad framework for implementing a CSR approach that builds
on existing experience as well as knowledge of other fields, such as quality and
environmental management. The framework follows the familiar “plan, do, check and
improve” model that underlies such well-known initiatives as those of the International
Organization for Standardization (ISO) in the areas of quality and environmental
management systems. The framework is also intended to be flexible, and firms are
encouraged to adapt it as appropriate for their organization.

CSR implementation framework and corporate governance

A well-designed CSR implementation framework integrates economic, social and

environmental decision making throughout a firm—from the board of directors to front-
line officials and supply-chain partners—and is therefore intimately connected with
effective corporate governance. A properly governed firm can reap optimal benefits for
itself and its shareholders, and in turn for those who are affected by the firm’s activities.
At all levels of a firm, inadequate direction and control of its activities and assets can
jeopardize its very ability to operate.

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This guide proposes an implementation framework comprising six key tasks (see chart
below). In recognition of the fact that firms are at different levels of sophistication and
development with respect to CSR, it is understood that firms may choose to forego a
particular aspect or task when it has already been undertaken.
[
The framework is intended to help boards of directors, CEOs, managers, employees and
others assess a firm’s effects on society and the challenges and opportunities associated
with taking these impacts into account in decision making and business activities. As
understood here, a firm’s CSR approach should be an integral part of its core business
objectives and strategy. Just as importantly, it is also part of a wider trend towards
exploring ways to ensure that the individual and collective activities of the business sector
advance progress towards internationally-agreed challenges, and create an environment
where business is itself sustainable.

CSR and small businesses

In most regions of the world—in both the developed and developing world—the great
majority of businesses are classified as “small and medium sized enterprises” (SMEs).
Whether micro one-person businesses or firms with around 200 employees, SMEs are also
the largest employers. While individually their contributions and impacts on surrounding
communities and the environment may be small, collectively these impacts are large.
Because SMEs are many and tend to have a lower public profile than their larger
counterparts, on-governmental organizations (NGOs) may not target them for failing to
take their societal impacts into account. However, the support of the community around
small firms is usually more essential for their success than it is for large businesses. In
fact, larger firms in the CSR spotlight may seek out as business partners small local firms
with CSR approaches in place.
A Canadian Federation of Independent Business survey of its members found that doing
things right, even at a cost, is important for small businesses. For example, the survey
revealed that “SMEs [small and medium-sized enterprises] are strongly committed to
environmental protection, which is evident through their significant progress achieved
during the past decade.
The distinct challenges facing small business—such as being pressed for time, money and
resources—are well known. But while these challenges are great, smaller businesses are
also recognizing the value of embracing CSR.
The CSR implementation framework set out in this guide is built around the “plan, do,
check and improve” model, which is a sound approach for firms of any size. However,
many of the steps may be too elaborate for small businesses.
To address the needs of small business owners and their employees, tips for simplifying
the process are provided throughout in boxes marked with the magnifying glass icon. In
addition, a list of suggestions for CSR activities particularly suited to small businesses is
located on page XX. The suggestions may also be of interest to those in larger firms.
Reflecting the importance of SMEs, there are an increasing number of specially developed
toolkits for small business. These include:
- Introduction to Corporate Social Responsibility for Small & Medium-
Sized Enterprises. This is a free, online, European Commission toolkit for
SMEs that includes a self-awareness test, case studies and other materials;

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- The World Business Council for Sustainable Development has a web-based e-

learning tool named Chronos, which is applicable to SMEs;
- The GRI Sustainability Reporting Cycle: A handbook for small and not-so
–small organizations. This handbook offers five phases for a reporting cycle
that overlaps with the implementation framework described below;
- CSR Europe’s SMEkey – Unlocking Responsible Business toolkit;
- “Going for Green: A Manufacturer’s Guide to Lean and Green,” a
publication of the Canadian Chamber of Commerce;
- The CSR Management System developed by the Vincular Centre for CSR,
Chile, with input and support from the Chilean government and business
associations; and
- The United Nations Environment Programme (UNEP) has developed an
“Efficient Entrepreneur” family of tools, including a special calendar that gives
month-by-month tips.
The dilemmas and challenges of SMEs have also been the subject of research by
organizations. The ISO. A 2006 ISO SME Task Group report entitled “The Global Use of
Environmental Management Systems by Small and Medium Enterprises” is of particular
interest. The World Bank Institute “Virtual Resource Centre” also provides an overview of
many other materials that could be valuable for SMEs.35 In many countries SME toolkits
have also been developed by business associations, in cooperation with government and
other partners, and these may provide useful guidance.
These examples are given to illustrate the range of guidance tools that are available to an
SME. However, as with larger firms, it is important for SMEs to exercise care in
developing their own approach to CSR. Given the existence of authoritative instruments
such as the OECD MNE Guidelines (which are applicable to firms of all sizes), for
reasons of efficiency and consistency it will be important to adopt existing internationally-
approved language and principles as far as possible.

Corporate Social Responsibilities in Bangladesh

Historically, the business leaders, government and policy makers in Bangladesh placed
economic imperatives before social justice in order to accelerate the pace of economic
growth (Quazi, 1994). The community also supported this national priority and
overlookedthe negative consequences of business operations (such as environmental
pollution) for the sake of national prosperity. However, there has been increasing pressure
on national and multinational corporations in Bangladesh to consider the social
implications of their actions (Belal, 2001). For example, product safety has become so
devastating in Bangladesh that the government has launched a campaign to combat
businesses that are responsible for widespread adulteration of consumer goods. Numerous
businesses have been heavily fined for violating product safety regulations and the r
government has also brought hundreds of corrupt politicians to justice.
A review of the CSR practices reveals that a number of corporations are showing an
increased commitment to CSR beyond profit making and compliance with regulation. For
example, CARE Bangladesh, Katalyst (funded by DFID, SDC, SIDA and CIDA) and
Bangladesh Enterprise Institute (BEI) are working at the forefront of CSR programs in

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Bangladesh. Katalyst has been developing programs for CSR and have prepared a
Corporate Social Audit (CSA) catering to small/medium enterprises. Similarly CARE had
initiated successful CSR programs with BATA where the company is using the extensive
network of CARE to promote its environmentally-friendly products door-to-door in rural
communities. While these initiatives are more discretionary in their nature, they have
resulted in the creation of jobs and value-added services to communities which BATA
and CARE are showcasing as CSR programs in action.
Table 1 provides a summary of CSR actions reflected by a sample of 17 prominent multi-
national corporations and large locally-based firms operating in Bangladesh. Information
on these firms was obtained from a review of annual reports, mainstream media and
company websites. These 17 companies were identified following a web search of
companies using such keywords as corporate social responsibility, corporate social
accountability, philanthropy, corporate giving and charity in the Bangladesh context. The
websites were also scanned for programs or events connected to the above set of words.
Aside from a few local corporations, the bulk of CSR programs were carried out by MNCs
or companies in which MNCs have a considerable equity position. Some banks and
consumer products companies have directly, or through their established foundations,
undertaken CSR programs (even though they may not have coined them as such). Several
pharmaceutical companies had social responsibility highlighted among their values
mentioned on their website. Upon further inquiry into their annual reports, they had shown
commitment by funding activities such as city beautification projects, employing
physically handicapped people, sponsoring medical camps, education scholarships,
providing medicines and support for disaster recovery programs.
Table 1:

Organizational Major findings Type of action

Commitment to
CSR Firm
CARE/BATA Promotion of CSR through commercial Discretionary
partnerships.
Katalyst Providing ethical consulting services to Ethical
SMEs in order to raise awareness of CSR.
Renata Ltd Funding city beautification projects, Ethical/ discretionary
employing physically handicapped people,
sponsoring medical camps.
Unilever Empower the economic situation of women Ethical/ discretionary
Bangladesh through trainings, scholarships, IT
education (Fair & Lovely program).
Dutch Bangla Bangladesh business award winner and Ethical/ discretionary
Bank Asian CSR award. Sustainable CSR
activities have focused on improvement of
health, education and poverty alleviation’ in
Bangladesh.
British Providing free basic IT education (Dishari), Legal/ discretionary
American re-forestation program and their philosophy
Tabacco is that “success and responsibility go
together”.
HSBC Contributing to support some disability Ethical
Bangladesh centers.

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 CORPORATE SOCIAL RESPONSIBILITIES (CSR)

Square Signatories of UN Global Compact in Ethical/ discretionary

Pharmaceuticals Bangladesh. Their social commitments are
Ltd in the area of supporting acid burn victims,
Meril-Prothom Alo festivals, sporting
events, etc
Ibn Sina Social commitments include running free Discretionary
Pharmaceuticals Friday health clinics, offer disaster
management grants, etc.
Rangpur Dedicated corporate governance and social Discretionary
Foundry responsibility strategies.
Advanced Introduced issues of responsibility to Ethical
Chemical shareholders and other stakeholders.
Industries Statement by the chairman on ‘responsible
citizenship and harmonious existence with
the environment,’ and also mentioned that
ACI is ‘ever-conscious of its Corporate
Social Responsibility.
Southeast Bank Foundation to undertake their CSR Ethical/ discretionary
Ltd activities, however, the programs run by
Southeast were more geared towards
Corporate Giving, a component of CSR
activities, but full blown CSR activities
were not present where they had actually
extended support to other trusts and
foundations to run different CSR programs.
Beximco Large local corporation with donations of Ethical/ discretionary
Pharmaceuticals medicine support for AIDS patient and
disaster recovery supports.

Table 1 shows that firms implemented CSR for mostly ethical or discretion reasons. Of the
17 firms investigated, 10 had implemented CSR for discretionary reasons, nine for ethical
reasons, and one firm implemented for legal reasons. A search of websites for the 17
companies using such key words as corporate social responsibility, corporate social
accountability, philanthropy, and corporate giving revealed that only three firms (Concord
Real Estate, Partex Group and Monno Ceramic) reported no CSR related information—
suggesting a reliance on traditional economic imperatives. Interestingly, five of the 17
firms were observed to implement different types of CSR initiatives for different strategic
reasons—indicating that even though such firms could be ethically motivated, they were
still keen to exploit any economic benefits associated with their CSR activities. However,
overall, these findings show that corporations in Bangladesh are concerned with CSR, and
are implementing CSR initiatives to build social equity within their employees, the
community and relevant stakeholders—even if the motivation is altruistic.

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ICMAB (Dhaka Campus): 20051043