csr activities of banks
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An Assignment On
CSR Activities of Banks
Subject: Accounting Principles (1102)
Submitted To
Kazi Zahidul Haque
Lecturer, Accounting
Department of Business Administration
Dhaka City College
Submitted By
Ambitious
15th Batch
Section: E
Group No: E-4
Date of Submission: 30 May 2013
Group Members
Name ID No
Rony Paul 301
Marzia Afrose 302
Samia Alam 303
Mahia Islam 304
Ayesha Siddiqua 305
Reazul Islam 306
Khaleda Akter Toma 307
Nusrat Jahan 308
Nahid Hasan 309
Jannatul Fardous Joty 310
Aysha Siddika 311
Bank
Finance is the life blood of trade, commerce and industry. Now-a-days, banking
sector acts as the backbone of modern business. Development of any country
mainly depends upon the banking system.
What is a Bank?
The term bank is either derived from Old Italian word banca or from a French
word banque both mean a Bench or money exchange table. In olden days,
European money lenders or money changers used to display (show) coins of
different countries in big heaps (quantity) on benches or tables for the purpose
of lending or exchanging.
A bank is a financial institution which deals with deposits and advances and
other related services. It receives money from those who want to save in the
form of deposits and it lends money to those who need it.
Oxford Dictionary defines a bank as "An establishment for custody of money,
which it pays out on customer's order."
There’s some authors definition about banking:
Author Definition
Justice Atkin
"The bank undertakes to receive money and to collect
bills for its customer's account. The proceeds so
received are not to be held in trust for the customer,
but the bank borrows the proceeds and undertakes to
repay them. The promise to repay is to repay at the
branch of the bank where the account is kept, and
during banking hours. It includes a promise to repay
any part of the amount due against the written order
of the customer addressed to the bank at the
branch..... Bankers never do make a payment to a
customer in respect of a current account except upon
demand."
The Privy Council
(England)
“ A company which carries on as its principal
business the accepting of deposits of money on
current account or otherwise, subject to withdrawal
by cheque, draft or order is called a Bank.”
Characteristics / Features of a Bank:
1. Dealing in Money
2. Individual / Firm / Company
3. Acceptance of Deposit
4. Agency and Utility Services
5. Profit and Service Orientation
6. Banking Business etc.
Functions of Bank:
Banking Sector in Bangladesh:
The number of banks in all now stands at 49 in Bangladesh. Out of the 49
banks, four are Nationalized Commercial Banks (NCBs), 28 local private
commercial banks, 12 foreign banks and the rest five are Development
Financial Institutions (DFIs).
Sonali Bank is the largest among the NCBs while Pubali is leading in the
private ones. Among the 12 foreign banks, Standard Chartered has become the
largest in the country. Besides the scheduled banks, Samabai (Cooperative)
Bank, Ansar-VDP Bank, Karmasansthan (Employment) Bank and Grameen
bank are functioning in the financial sector. The number of total branches of all
scheduled banks is 6,038 as of June 2000. Of the branches, 39.95 per cent
(2,412) are located in the urban areas and 60.05 per cent (3,626) in the rural
areas. Of the branches NCBs hold 3,616, private commercial banks 1,214,
foreign banks 31 and specialized banks 1,177.
Bangladesh Bank regulates and supervises the activities of all banks. The
Bangladesh Bank is now carrying out a reform program to ensure quality
services by the banks.
The banking sector of Bangladesh compared to its economic size is moderately
bigger than many other economies of equal level of development and per capita
income. There are forty-seven commercial banks operating in this small
economy. Although over the last thirty years, the country achieved noticeable
success regarding the access to banking services, in 1972 population per branch
was 57,700 and in the year of 2010, it was 20,162 per branch. The statistics
indicates that getting banking services is not a significant problem for the
country. Being the central bank of the country, Bangladesh Bank is responsible
to regulate, monitor and supervise all the banks operating in the country.
Bangladesh Bank perform both onsite and offsite supervision of banking
operation. For offsite supervision, Bangladesh Bank has to rely on various
financial statements and other documents as specified by Bangladesh Bank sent
by all the scheduled banks.
Types of Bank in Bangladesh:
The banks of Bangladesh are different in types and functions. They are:
1.Central Bank, (Bangladesh Bank)
2.Foreign Commercial Banks, (HSBC, Standard Chartered Bank, City Bank etc)
3.Private Commercial Banks, (BRAC Bank Limited, Agrani Bank Limited,
Islami Bank Bangladesh Ltd etc)
4.State-owned Commercial Banks, (Rupali Bank, Sonali Bank, Janata Bank etc)
5.Specialized Development Banks. (Grameen Bank) etc.
Corporate Social Responsibility
What is CSR?
Different organizations have framed different definitions - although there is
considerable common ground between them. My own definition is that CSR is
about how companies manage the business processes to produce an overall
positive impact on society.
Take the following illustration:
Companies need to answer to two aspects of their operations. 1. The quality of
their management - both in terms of people and processes (the inner circle). 2.
The nature and quantity of their impact on society in the various areas.
Outside stakeholders are taking an increasing interest in the activity of the
company. Most look to the outer circle - what the company has actually done,
good or bad, in terms of its products and services, in terms of its impact on the
environment and on local communities, or in how it treats and develops its
workforce. Out of the various stakeholders, it is financial analysts who are
predominantly focused - as well as past financial performance - on quality of
management as an indicator of likely future performance.
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.
Benefits of CSR:
Consumers increasingly don't accept unethical business practices or
organizations who act irresponsibly. Advances in social media (giving everyone
a voice) mean that negative or destructive practices quickly fuel conversations
online. Organizations are accountable for their actions like never before.
1. The Business Benefits of CSR:
CSR should not be viewed as a drain on resources, because carefully
implemented CSR policies can help your organization:
Win new business.
Increase customer retention.
Develop and enhance relationships with customers, suppliers and
networks.
Attract, retain and maintain a happy workforce and be an Employer of
Choice.
Save money on energy and operating costs and manage risk.
Differentiate yourself from your competitors.
Generate innovation and learning and enhance your influence.
Improve your business reputation and standing.
Provide access to investment and funding opportunities.
Generate positive publicity and media opportunities due to media interest
in ethical business activities.
2. Social Benefits From CSR:
The voluntary corporate commitment of companies has been increasingly
moving for over a decade both nationally and internationally into the spotlight
of politicians. All over the world, governments and societies are facing major
economic, social and environmental challenges. Climate change, demographic
trends, the scarcity of resources and an increasingly globalised economy and
labor market are changes which need to be addressed within the context of
sustainable development. Neither politics nor business or any other social group
can overcome these challenges alone. Owing to the looming financial limits of
state action, politicians, the public, consumers and investors are expecting
companies to take an active and responsible role in shaping social progress.
Entrepreneurial CSR activities cannot, however, simply replace the
responsibility of the lawmaker. The first objective of a company is to be
successful in its core business. This success is the basis for the social activities
of a company and therefore also the prosperity and employment of national
economies.
Corporate Social Responsibility is the way to accomplish this. In its most basic
definition, CSR is a business entities contribution to the development of a
society. According to the International Institute for Sustainable Development,
key areas that CSR addresses are environmental protection and the wellbeing of
employees, the community and civil society in general, both now and in the
future.
When a company takes it upon itself to commit to a certain responsible
investment, it effectively communicates to its stakeholders “Investors,
employees, suppliers, creditors, trade unions, community members, consumers,
government agencies, concerned non-governmental organizations and the public
sphere” that it recognizes the importance of social welfare and can be counted
on to be part of the solution, make ethical decisions and do the right thing.
Society at large benefits greatly with different CSR efforts by being ensured of
product safety and quality, having access to corporate-sponsored community
education, employment, housing and anti-poverty programs, being beneficiaries
of employee volunteer outreach activities and receiving charitable contributions.
Other Benefits:
1. Increased employee loyalty and retention;
2. Gaining legitimacy and access to markets;
3. Less litigation
4. Increased quality of products and services;
5. Bolstering public image and reputation and enhanced brand value;
6. Less volatile stock value;
7. Avoiding state regulation; and
8. Increased customer loyalty;
CSR Activities of Banks
1. Mutual Trust Bank.
2. National Bank.
3. National Credit & Commerce Bank.
4. One Bank.
5. Premier Bank.
Mutual Trust Bank
Limited
MUTUAL TRUST BANK LIMITED
Mutual Trust Bank Ltd. firmly believes that the stakeholders of the bank are not
only its sponsors, shareholders, depositors and other customers of the bank, but
also the common people of the country including the less privileged and special
people. As such, the bank plays an important and participative role, whenever
any natural crisis befalls the nation. MTB regularly contributes to the
development efforts of the government and other recognized agencies including
charitable, educational and healthcare institutions, throughout the country,
manifested through donations, sponsorships etc. MTBL plays an important and
participative role, whenever any natural crisis befalls the nation. MTBL
regularly contributes to the development efforts of the government and other
recognized agencies including charitable, educational and healthcare
institutions, throughout the country, manifested through donations, sponsorships
etc.
Disaster relief:
Donated Tk. 1 million for the cyclone ‘Aila’ affected people to the Prime
Minister’s Relief & Welfare Fund.
Education:
MTB distributed scholarships in 2008 to 54 poor but meritorious students
of the University of Dhaka.
The bank extended financial assistance to East west University,
University of Dhaka History Society.
Social welfare:
The bank also extended financial assistance to Bangla Academy,
Disabled Foundation, Lion’s Club District 315B, Rotary Club of Dhaka
Central, IBA Alumni Association, Bhawaiya Sangeet Shilpi etc.
Sponsored International Theatre Festival, Annual Sports of Glorious
School, International Symposium on Climate Change, Seminar on Food
Security in South Asia organized by the University Of Dhaka & Ohio
State University.
Chart: CSR of Mutual Trust Bank Ltd
0
2000000
4000000
6000000
8000000
10000000
12000000
Social Welfare Education Relief Fund
10270000
300000
1250000
National Bank
Limited
NATIONAL BANK LIMITED
The National Bank LTD is the first private sector fully owned by Bangladeshi
entrepreneurs. At present, NBL has been carrying on business through its 149
branches spread all over the country. Alongside, banking activities, NBL is
actively involved in sports and games as well as in various Socio-Cultural
activities.
Education:
Established National Bank Public School & College.
Providing scholarships to the meritorious students.
Donated to Dhaka University to construct Senate Building.
Donated to Dhaka University for Convocation.
Disaster relief:
Donated for the landslide victims in Chittagong.
Donated to Prime Minister‘s Welfare Fund for ‘Aila’ victims.
Sports:
Donation to Bangladesh Football Federation, Bangladesh Olympic
Association, National Shooting Federation.
Sponsored Volleyball league-2008.
Sponsored Citycell Federation Cup, Citycell B-League.
Social welfare:
Donated to Asiatic Society, Center for National Culture, Central
Kochikachar Mela, and Liberation War Museum.
Donated to Mother & Child Hospital, a Haemodialysis Machine for the
treatment of kidney patients to BIRDEM.
Loan for fisheries since 1994 in Mymensingh, Khulna & Jessor. A
dedicated branch is opened at Valuka of Mymensingh.
Disbursed Collateral free loan to poor people named micro loan.
Continuing Disbursement of agro-credit to marginal peasants at lower
interest rate.
Provided a lucrative amount of loan to “Borendra Bohumukhi Unnayan”
to increase the agro-production and development of socio-economic
position.
Strengthened the credit facility provided to small & medium industries
for employment generation.
Continuing Disbursement of agro-credit to marginal peasants at lower
interest rate.
Chart: CSR of National Bank Ltd
0
1000000
2000000
3000000
4000000
5000000
6000000
Education Employment Relief Fund Social Welfare Sports
6000000
2700000
1400000
650000 560000
National Credit &
Commerce Bank
NATIONAL CREDIT & COMMERCE BANK LIMITED
NCC Bank recognizes that its activities have an impact on the environment in
which the bank and its subsidiaries do business. The bank also realizes that the
basis for any good business is trust and that society expects the highest
standards of the bank when it comes to the question of ethics and CSR. NBL
has always given due importance to its responsibility to the society. In order to
institutionalize its duty to the society, the bank has established a foundation.
Established NCC Bank Foundation in 2007 devoted to the cause of charity,
social welfare and other benevolent activities towards the betterment of the
society. The Board of Directors of the bank has pledged to contribute 1% of
operating profit to this Fund every year.
Disaster relief:
• Distributed blankets to the destitute people of southern part of the country.
• Donation to Aila affected people.
Education:
• Scholarship to 5 meritorious student of faculty of Business studies (DU).
• Sponsored a science fair at Vikarunnessa Noon School.
• Distributed teaching materials to poor students of Dahagram and Angorpata
enclaves.
• Donation to construct a semi-paka building at Darul Ulum Debahata Kaumi
Madrasa & Orphanage.
• Donation to construct 1st floor at Feni South East College.
• Donation to construct class room at Mahbubul Haque High School,
Mohammadia Hefzakhana, Orphanage, Nurani Islami Kindergarten.
• Donation to construct academic building at Nurunewaz High school.
• Donation to construct a semi-paka building at Nurpur Khaeria Ebtedai
Madrasha.
Sports:
• Sponsored Bank Inter district Volleyball Tournament 2007.
• Sponsored NCC Bank Vatiary Golf Tournament & DU convocation since
2007.
• Published attractive souvenir regarding ICC World Cup Cricket & World
Cup Football.
• Sponsored Bangladesh Cycling Federation.
Social Welfare:
• Through NCC Bank Foundation subsidy has been extended to a City
Hospital.
• Extended credit facilities under flexible terms for cultivating maize in the
Country’s northern part.
Chart: CSR of NCC Bank Ltd
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
Education Sports Social Welfare
4000000
550000 600000
One Bank Limited
ONE BANK LIMITED
The bank has decided to constitute One Bank Foundation to enable the Bank to
undertake CSR more proactively by taking planned initiatives and serve the
needy and distressed community at large. The bank is setting up ONE Bank
Foundation to undertake CSR more proactively by taking planned initiatives
and serve the needy and distressed community at large.
Disaster relief:
• The bank undertook the tasks of assisting poor in various forms such as
helping victims of natural disaster by providing food, shelter and self-
employment where possible.
• Contributed to the Prime Minister’s Relief Fund for ‘Aila’ victims.
Environment:
• The bank vowed to be environmentally and socially responsible within the
organization by focusing on the well-being and sustained development of the
people working in the bank as well as their aspirations, efforts and achievement
and further capacity building.
• The bank has been keeping watch on the environmental and social impact of
proposed undertakings. The Bank take confirmation of compliance by clients by
way of Clearance Certificate from Department of Environment to the effect that
concerned projects will not have any adverse impact on environment.
Sports:
• Donated vehicles for development of sports like cricket.
• Sponsored JMB (Jamuna Multi-purpose Bridge) Cup Football Tournament
(2008 & 2009) on the occasion of National days.
Social Welfare:
• Stipends to poor but meritorious students, adult schools, vocational training
centers as well as building infra-structures etc.
• Sponsored painting exhibition at Shilpokola Academy.
• Arranging free eye camps and other health related assistance.
• Introduced School banking to promote the savings habit among the children.
• Payment of remuneration of Tk. 20,000/- per month to a doctor for
extending medical service to the poor of Joypara, Dohar, Dhaka.
• Distribution of 3000 pieces blankets among destitute people in Noakhali
and Gokil, Bogra amounting to Tk. 7.50 lac
• Contribution of Tk. 5 lac to the FBCCI Foundation for their “Employment
Project” under name and style “One Business One Family”.
Chart: CSR of One Bank Ltd
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
5000000
Relief Fund Sports Environment Social Welfare
5000000
200000500000
1000000
Premier Bank
Limited
PREMIER BANK LIMITED
The bank is earnestly committed to its Corporate Social Responsibilities and out
of these responsibilities it is conducting various charitable, social welfare and
development activities
Health:
• Sponsoring National Vitamin A + Campaign conducted by the Government
in May, 2008.
• Sponsoring Breast Feeding Week: 01-07 August, 2008 conducted by
Breastfeeding Foundation.
• Sponsoring Bangladesh Physiotherapy Association on occasion of 3rd
National Conference of the organization in November 2008.
Sports:
• Sponsoring 03 national events to Bangladesh Basketball Federation for Tk.
15.00 lac.
• Sponsoring Bangladesh Sports Writers’ Association for Tk. 6.00 lac on the
occasion of Annual Award Giving Ceremony of the organization in November
2008.
Social welfare:
• Sponsoring International Day against Drug Abuse and illicit trafficking
2008.
• Sponsoring Fisheries development Campaign-2008 organized by Dept.
Fisheries, Bangladesh in September 2008.
• Donation to Birshrestha Motiur Rahman Foundation, ‘Kendrio Khelaghar
Asor’.
Chart: CSR of Premier Bank Ltd
0
500000
1000000
1500000
2000000
2500000
Sports Social Welfare Health
2100000
800000 750000
Recommendation 1. Mutual Trust Bank contributed BDT. 1 crore for the tragedy of Savar to
the Prime minister’s Relief fund as their Corporate Social Responsibility.
The other banks such as, Premier Bank and National Bank should come
forward increase to this fund.
2. In the education sector Premier bank should more contribute to the poor
and scholar students and One Bank should also develop this sector.
3. Our country has a great performance in sports sector. Premier Bank
contributes to develop this performance. If the other Banks contribute in
this sector, it will develop more the sports sector in our country.
4. In health sector Bangladesh has least opportunity. Premier bank have
contributes in this sector. So all other Banks should contribute to this
sector.
Conclusion
It is concluded that CSR is about business, government and civil society
collaboration with the bottom line is the achievement of win-win situation
among the three entities. From the social point of view, CSR should benefit
community because the latter has a very complex structure as it consists of
individuals with various levels of control of resources physically and intangibly.
The analysis on the theories allows the understanding of CSR that goes beyond
its traditional meanings; therefore, CSR necessitates a multidisciplinary
approach in its perspective and practice. Since the current meaning of CSR is
complex, knowing the theories allows scholars to have a better understanding
about corporation-society relations, in which theories and practices of CSR are
influenced by numerous economic and non-economic as well as internal and
external forces.
Appendix:
Books & Articles:
1. Corporate Social Responsibility And Its Role In Community
Development: An International Perspective By Maimunah Ismail.
2. CSR review of Banks By Bangladesh Bank.
3. Report on the CSR of Banks of Bangladesh.
4. Corporate Social Responsibility and the Society By: Saheli
Chakraborty.
Websites:
1. google.com
2. alibaba.com
3. reportbd.com
4. bangladesh-bank.org
5. onebank.com.bd
6. www.nccbank.com.bd
7. premierbankltd.com
8. www.nblbd.com
9. www.mutualtrustbank.com
10. wikipedia.com
11. Wikiask.com
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