6 | P a g e 1. Introduction CorporateSocialResponsibilityalsocalledcorporateconscience,citizenship,social performance, or sustainable responsible business, is a form of corporate self regulation integrated into a business model. Corporate social responsibility (hereafter CSR) has become an important center ofconcentration amongcompanies. A recent global survey shows that 76%of managers believe that corporate social responsibility contributes positively to long-term shareholder value, and 55% of them agree that sustainability helps their companies build a strong reputation. By the time being the definitions and explanations of CSR have become more positive, with increasing understandingofthebenefitsthatcanbeobtainedthroughsuccessfulimplementationby organizations.Nowadays,mostofthemultinationalcompaniesalsohaveaseniormanager explicitly charged with developing and coordinating the CSR functions.

AsuccessfulCSRprogramcannotbeachievedindividually.CSRincludestheparticipationof the society, nature andethics in making strategythat can improve the competitive position of a company.CSRtakescareoftheinterestofallstakeholdersratherthanthatofthestockholders only.By incurring CSR expenditure, a firm can strengthen its competitiveness, counter therisk oflosingtheexistingmarketsharesandestablishitspresenceinemergingones.Insteadof thinkingCSRasaregulatoryordiscretionarycost,businessexecutivesacrosstheglobeare starting to see it as an investment that brings long-term benefits for the company. The impacts of CSRarepervasive.CSRsignificantlyimprovesbusinesshousereputationandconfidenceof customers and business partners, and motivates the employees to work for a company they could feel proud of. Indevelopedcountriesithasbeenobservedthatthefinancialinstitutionsandotherbusiness sectorsareencouragedtocontributeinvariousformsofCSRactivities.Therearealsolotsof legalbindingswhichindirectlyforcesthecompanytocontributetoCSRactivities.The governmentalsooffersmanytypesofincentivestothosewhotakepartinCSRactivities. However,itisregretfulthatthoughinternationallyitisbeingpracticedwidely,Bangladeshis stilllaggingbehindinCSRactivities.Infact,CSRisamatterofselfinterestforthecorporate sector in Bangladesh. Still, among the corporate houses banks have shown comparatively better tendencies to accomplish CSR activities. Bangladesh Bank as the central bank in Bangladesh has taken initiatives to motivate the banking companies to play role toward the welfare of the society by ensuring CSR. Keeping this fact in mind, this study is an attempt to explore to what extent a bank in Bangladesh is engaged in CSR activities. The study is conducted with the objectives of exploring the types of CSR activities carried out by differentorganizationsinBangladesh.ConcentrationofthisstudyhasbeengiventotheCSR activities done by the financial organizations especially by the Dutch Bangla Bank Limited. 7 | P a g e 2. Objectives

The main objective of this paper is to explore the corporate social responsibilities in Bangladesh andtoevaluatethepracticeofCSRinbankingsectorsofBangladeshwithspecialfocuson Dutch Bangla Bank Limited. Other secondary objectives are mentioned as under: i.ToacquiresubjectiveperceptionsaboutvariousCSRtasksoffinancialsectorin Bangladesh. ii.TofindoutthemajorareaswhereCSRactivitiesareperformedbythebanksin Bangladesh. iii.TocompareandanalyzethecontributionofDutchBanglaBankLimitedinCSR activities in different areas with other banks. 3. Methodology of the Study

The study is based on secondary data which arecollected fromannual reports of the concerned bankandCSRrelatedpublications,researchpapers,andstudyonCSR,websitesofbanksand otherfinancialinstitutionsaswellasfromthewebsitesofregulatorybodies.Thisreportis focused on CSR activities carried out by the Dutch Bangla Bank Limited in Bangladesh. 4. Literature Review

CorporateSocialResponsibilityisaconceptwherebycompaniesintegratesocialand environmentalconcernsintheirbusinessoperationsandintheirinteractionwiththeir stakeholdersonavoluntarybasis(Grayet.al.1987).Accordingto(Ranaet.al.2012),social responsibility is a concept well known in the corporate world and beyond that. Business all over theworldhavepracticedonlyprofitmakingactionsatpastbutnotforlongastheenterprise started to develop complexities and wideness in size and actions so was their reach getting bigger and bigger. A companys sense of responsibilitytowards the community and environment (both ecologicalandsocial)inwhichitoperatescalledcorporatesocialresponsibility.Companies expressthiscitizenship(1)throughtheirwasteandpollutionreductionprocesses,(2)by contributingeducationalandsocialprogramsand(3)byearningadequatereturnsonthe employed resources (Yunus, Kabir & Rahman). In contrast to this, Christian Aid (2004) defines CSRasanentirelyvoluntary,corporatedriveninitiativetopromoteseasasubstitutefor regulation at either a national or international level. Dusuki & Dar (2005) argued that Corporate Social Responsibilities outline the standard of behavior to which a firm must subscribe to impact societyinapositiveandaproductivemanneratthesametimeasabidingbyvalueswhich exclude profit seeking at any cost. Helg (2007) noted that CSR has the potential to make positive contributions to the development of society and businesses. Drucker (1954) has found a close link between firm's profitability and its social responsible activities. He stated that It is not enough to do well; it must also do good. But in order to do good a business must first do well. Drucker's view incorporated the views of Friedman and Freeman. 8 | P a g e Inrecenttimes,CorporateSocialResponsibilityhasbecomeanever-increasingandinteresting field of study by researchers and practitioners. However, a complete definition of CSR is, indeed, elusive and opinions vary. Oketch (2005) defined CSR as a function that transcends but includes makingprofits,creatingjobsandproducinggoodsandservices.Someresearchersarguethatit hascometomeanthepositiveactionsthatacompanytakestodischargeitsresponsibilitiesto external stakeholders; while other definitions include financial performance as an aspect of CSR. Inlinewiththis,awiderangeofbehaviorsarecategorizedunderCSRincludingcause-related marketing,sponsoringcharitableevents,offeringemployeevolunteerismprograms,making charitabledonations,utilizingenvironmentalinitiativesanddemonstratingacommitmentto healthandsafetyissues(Maignan&Ralston,2002).Carroll(1979)designedafour-part conceptualization of CSR that included economic, legal, ethical and philanthropic elements. Carrollmodelentailsthatallbusinessresponsibilitiesrelyupontheeconomicresponsibility, whichincludesmaximizingprofitabilityandmaintainingastrongcompetitiveposition.Legal responsibilitiesstatefirm'scompliancewithlawsandregulationswhiledoingbusiness.Ethical responsibilitiesreplicatesocietalstandards,expectationsandnormsthathavenotbeen specificallylegislated.Finally,philanthropicresponsibilitiescompriseactionsthatarein responsetosociety'sexpectationthatbusinessesbegoodcorporatecitizens.Theseare distinguishedfromethicalresponsibilitiesinthattheyareofacharitablenatureandassuch,a company is not considered unethical if it does not provide them (Carroll 1991). AverypopulardefinitionofCSRbyLordHolmeandRichardWattsintheWorldBusiness CouncilforSustainableDevelopmentspublicationMakingGoodBusinessSensethe continuing commitment by business to behave ethically and contribute to economic development whileimprovingthequalityoflifeoftheworkforceandtheirfamiliesaswellasthelocal community and society at large (www.wikipedia.com). Tilltoday,mostofthebusinessesinBangladesharefamilyownedandfirstgeneration businesses.Businessesareinvolvedincommunitydevelopmentworkintheformofcharity withouthavinganydefinitepolicyabouttheexpensesoranysolidmotiveregardingfinancial gainsinmanyinstances.(Mondol,2007).ItisevidentthattheimportanceofCSRinthefirst world,questionsregardingtheextenttowhichcorporationsoperatingindevelopingcountries haveCSRobligationsarestilltobeworkedout.(JamaliandMirshak,2007).Therehasbeen increasingpressureonnationalandmultinationalcorporationsinBangladeshtoconsiderthe socialimplicationsoftheiractions(Belal,2001).CSRpracticesinBangladesharestillin infancy.Companiesaregettingawareofitbecausebeingapartofglobalmarket,itisreally difficulttoignoreCSRstandardparticularlyintheexportsector.Mostofthecompanies operatinginBangladeshespeciallyfinancialinstitutionsaretryingtoinvolvedirectlyor indirectly with CSR. In a study Corporate Social Disclosure in Bangladesh: A Study of the Financial Sector Azim et al.(2011)arguedthatcorporatesocialresponsibilityisnottheonlyethicaldilemmathat financialinstitutionsfaceinanatmosphereofcorruptcorporatepractice.Theseinstitutionsare also concerned with commitment for sustainable development. A well-functioning finance sector in any country can contribute directly to a healthy economy. This sector plays an important role in a countrys economic development. Increasingly, are under pressure, often from activist non- 9 | P a g e governmentalorganizations,totakeonspecificcorporatesocialresponsibilityobligations.But thefactthatCSRisbeingdemandedandoccasionallyconcededdoesnotensureclarityabout eitheritsrationaleorthewaysinwhichitshouldbeundertaken(Bhagwati,2010).Obalola (2008)inhisstudyfoundNigerianInsuranceindustryhasastrongsupportforsocial responsibilityandthetranslationofthissupportintoactionthroughinvolvementinsome community based projects. Evidence from the study also suggests that social responsibility is still largelyperceivedasaphilanthropicgesture.Visser(2005)arguedthatCSRindeveloping countriestorepresenttheformalandinformalwaysinwhichbusinessmakesacontributionto improving the governance, social, ethical, labor and environmental conditions of the developing countries in which they operate, while remaining sensitive to prevailing religious, historical and cultural contexts. VictoriaandMahboob(2009)exploredthenatureandextentofCSRreportinginthe conventional banking sector in Bangladesh and to assess the need to improve CSR by such firms. Wise & Mahboob Ali (2010) further extends their work by concentrating to the nature and extent of corporate social responsibility disclosure in the banking sector in Bangladesh. Thus, this paper attempts to reveal the extent to which the companies in Bangladesh specially the bankingcompaniesarepracticingCSRwithamajorfocusonDutchBanglaBankLimited (DBBL) and disclosing relevant information in their annual reports.

5. CSR Practice in Bangladesh

InBangladeshbusinessorganizationswhetheritissoleproprietorship,partnership,privateor public companies, MNCs all had been contributing to the welfare of society in the form of CSR in informal and small extent till 2008.There are many Bangladeshi and foreign NGOs those have been working for the welfare of the society as well but their work do not fall under the definition ofCSRinstraightway.On1stJune2008BangladeshBank(BB)declaredaguidelineinthe nameofmainstreamingcorporatesocialresponsibilityinbanksandfinancialinstitutionsin Bangladesh. Through this circular CSR had been brought under the regulatory watch for the first timeinBangladeshinitiallyforthebanksandfinancialinstitutions.Lateron5thJuly2011 National Board of Revenue (NBR) circulated a Statutory Regulatory Order (SRO) numbered 229 on Corporate Social Responsibility. NBR has given an opportunity to all the private, public and MNCstoget10%taxrebateadvantageontotaltaxliabilityofthecompaniesbyspendingin some specified sectors or purposes defined by it. Both BB and NBR have not made the spending inthenameofCSRmandatoryforthecompanies.Ratherregulatorybodiesareproviding incentive and reward for spending in CSR activities. Bangladeshhasalonghistoryofphilanthropicactivitieswhichincludeddonationstodifferent charitableorganizations,poorpeopleandreligiousinstitutions.Manyschools,collegesand religiousinstitutionswereestablishedwithcharitabledonationsfromwealthyphilanthropists. ButsustainabilityandCSRpracticeinbusinessorganizationsisanewconceptinBangladesh. Therearelabor,industrialandenvironmentallawsinthecountryenforceabletobusinessand industrialsectors.Butpoorenforcementoftheexistinglawsandinadequatepressurefromthe stakeholdersleadstounsatisfactorystatusoflaborrightspractices,environmentalmanagement and corporate governance. 10 | P a g e GloballyCSRandsustainabilityarebecomingintegralpartofbusinesspractices.Health, environmentandlaborrightsissueshavebecomeimportantconditionsformarketaccessesto westerncountries.SoBangladesh,likeotherexportingcountries,needstocomplywithcertain international health, environment and labor standards. Bangladesh is a major garments exporting country and core buyers are the USA and EU. Importers have imposed compliance standards for ReadymadeGarment(RMG)industrytoensureminimumworkingconditionstandard.Under pressure from the US trade unions, the USA Congress enacted the Harkins Bill (1992) to force RMGexportersofBangladeshtocomplywithlaborpracticesincludingprohibitionofchild labor. Responding to the demand of importers, local producers had taken many steps to improve thesituationsincludingrelocationofindustriesoutsideofresidentialareas,speciousfactory building with safety measures, few benefits for workers and elimination of child labor. Few years back, a temporary ban was also imposed on shrimp export to the European Union in the ground of health and hygienic standards. This also leads to appropriate remedial action including change in production and processing system. Lackofenforcementofindustriallawsandregulations,weakandinefficientlaborunionsand absence of strong consumer rights groups, civil society and inactiveness of the regulatory bodies makeCSRviolationrampantinBangladesh.In2002,CentreforPolicyDialogue(CPD)had conducted a preliminary survey of the state of Corporate Responsibility (CR) in Bangladesh. The surveyinterviewedworkers,companyexecutivesandpublicrepresentativesabouttheir experiences and perceptions on CR. Some of the findings of the survey were that the companies appear stronger on policy rather than on practice. Around 2/3rd of the companies have sustainable developmentpolicy,whichrequiresattentiononcorporategovernance,humanrights, international labor standards and AIDS etc.Some of the concluding remarks of the report were thatexternalforcesarethemaindriversforCSRinBangladesh,educatingbusinessleadersin CSRneededassustainableandprofitablebusinessmodelsandthereisscopeforpartnership between the corporate businesses and civil society (CPD, 2002). 6. Social Responsibility Regulatory Environment in Bangladesh AlthoughCSRisacomparativelynewthoughtinBangladeshicorporateculture,consciousness ofithasquicklyincreased.ThebankingsectorneedstothinkoftheirCSRforthreebasic reasons.Atfirst,thereisanescalatingdemandfromstakeholderstodoso(Belal2001).The company that does not expand and promote its CSR strategy to all stakeholders may have to face increasing threats to its reputation. Secondly, CSR makes sound business sense which enhances the status of an organization, and improves stakeholder return (Kabir 2003). Finally, Bangladesh Bank issued different notifications to the bank and bound them to follow the guidelines. Due to inspiration and guidelines from Bangladesh Bank since 2008, many bankshave engaged inCSRactivities.NewCSRreportingformatalsocontributedtosuddenincreaseinCSR expenditurebycommercialbanksin2010andthereafter.InBangladesh,bankinginstitutions play the dominant support and the fundamental role for industrial and commercial activities. Atpresent,inadditiontotheCentralBankofBangladeshthereis4stateownedcommercial banks,13specializedbanks,40domesticprivatebanks,9foreignbanks.Aswiththelineof 11 | P a g e global practice, the CentralBank ofBangladesh(BangladeshBank) hasbeenassigned with the responsibilityofplayingacustodianroleofbankingsectorsinBangladesh.BBregulates bankingcompaniesinaccordancewithBankingCompaniesAct1991,anditsfurther amendments.Atthesametime,bankingorganizationslistedinthecapitalmarketmusthaveto follow the rules of SEC for trading in the stock exchanges in addition to the Banking Companies Act 1991. The Bangladesh Companies Act 1994 sets the general structure for corporate financial reporting.However,noprovisionsregardingCSRexistintheCompaniesAct1994.According to IASCF (2003), there is no separate Bangladesh Accounting Standard (BAS) concerning social andenvironmentalreporting.However,aftertheadoptionofInternationalFinancialReporting Standards(IFRS)inBangladeshon5July2006,PresentationofFinancialStatements(BAS1) encouragelistedcompaniestocirculateadditionalstatementsontheirnon-financialactivitiesif management believes they will facilitate users in making economic decisions (Azim 2011). In2011,aseparateSROonCSRwasincorporatedinIncomeTaxOrdinance1984.Wherean incentive of 10% rebate on expenditure for CSR within the limit of BDT 8 crore or 20% of total incomewhicheverislower,wasoffered.AsperthisSROcompaniescanenjoythetaxrebate facility on the expenditure for the purpose of CSR only if they spend in 20 defined areas selected by NBR. Private companies, public companies and MNCs are spending their CSR budget on the below mentioned areas to get the tax rebate advantage: Donation through any government bodies to the Cyclone, Earthquake, Hurricane, Flood etc. affected peopleOld home foundation and managementWelfare of mentally or physically disable peopleEducational institution for street / homeless childrenBuilding houses for people living in slumsDonationtosocialorganizationsinvolvedinbuildingpublicawarenessaboutwomen-right and dowry systemDonation to social organizations involved in the welfare of orphan / homeless childrenDonation to social organizations involved in research about liberation war, campaign to uphold the spirit of liberation war and welfare of freedom fightersImprovingseweragefacilitiesinChittagonghill-track,alluvialland,riverbreakage areasDonationtoorganizationsengagedinthetreatmentofhare-lipped,cataract,cancer& leprosyDonation to organizations serving treatment to the Acid VictimsSpecializedhospitalestablishedforservingthepoorpeoplefreemedicalfacilitiesand improving the quality e.g. Cancer, Lever, Kidney, Thalasemia, Eye and CardioDonation to public universitiesDonationforpromotingtechnicalandvocationaleducationforpoormeritorious students through any government approved educational institutionDonation to government or MPO included private educational institution to establish lab and arrange training for IT, Computer and English educationDonation to the organizations engaged in promoting technical and vocational education for unskilled and semi-skilled workers for manpower export 12 | P a g e Donationtoorganizationsengagedininfrastructuredevelopmentandtrainingfor national sports levelDonationtobuiltorunderconstructednationallevelmuseumsestablishedinthe memory of the liberation warDonation to any national level institution set up in memory of Father of the NationDonationtothenon-profitableorganizationsestablishedfortreatment,increasing awareness and rehabilitation of HIV, AIDS or intoxication affected peopleDonationtothenon-profitableprivateorganizationsestablishedforthewelfareof women and children saved from human trafficking InBangladesh,CSRisstillvoluntarywiththeexceptionofexpendituresonenergyusage requiredundertheCompaniesActof1994andtheSecuritiesandExchangeRulesof1987, whichrequireaseparateexpenditureinnotestothefinancialstatementsrepresentingthetotal amountspentonenergy.Recently,BBencouragescommercialbankstotakepartinCSR activitiesenthusiastically,whichmightpavethebankingsectorstobecomemorestructuredon theideasofCSRissues(BangladeshBank2008).BBalsoadvisedbankingandotherfinancial institutionstomovetowardsimplementationofCSRprogram(BangladeshBank2009,2010), establishaseparateCSRdesk(BangladeshBank2010)andpromotinggenderequalityinthe workplace in order to ensuring basic human rights and socio economic growth (Bangladesh Bank 2011).AccordingtoBangladeshBank(2010),CSRinitiativesnowstartsinamodestwayas supplementstousualannualfinancialreports,eventuallyitwillbegrownasacomprehensive reports format like Global Reporting Initiative (GRI). 7. CSR Activities of Banking Sectors

7.1 Education

Educationistheprerequisiteforoveralldevelopmentofanycountry.Keepingthisinmind, every bank performs some CSR activities in education sector and discloses relevant information initsannualreport.Suchactivitiesincludescholarshipprogramforbrilliantpoorstudents, donation to educational institution, operating computer learning center etc. 7.2 Health

Healthisoneoftheprimeparametertoachievethedevelopmentgoal.Healthneedsare increasingdaybydayduetorapidgrowthofpopulation.Forthatreasoneverybankperforms some CSR activities in health sector. There are included free eye camps, donation for treatment to the individual, donation to hospital etc.

7.3 Environment

Environmentpollutionhasbecomealargeprobleminourcountry.Forthatreasonfewbanks have come forward to protect the environment and they have performed some CSR activities in theenvironmentsector.SuchactivitiesincludedfinancetoCNGconversionandCNGfilling station,nottofinanceanytobaccorelatedbusiness,providefinanceforinnovativegreen products etc. 13 | P a g e

6.4 Culture and Heritage

To uphold our culture and heritage some banks have taken initiatives and performed a few CSR activities though most of the banks have not performed at all in this area. Such activities include donationtoMuktijuddahJadughar,donationtoculturalinstitution,donationtoEkusheybook fair etc. 7.5 Social Welfare

As a third world country Bangladesh has a lot of problems. Government often find themselves as helplesswhenitcomestosolvesuchproblems.Banksassocialentitiesofthiscountryare consideredasapartoftheaffluentsectionofthesocietyandhencetheyareexpectedto contribute more meaningfully towards the betterment of the society. If all banks come forward to contribute to the society, it will help to create their social branding as well as helping the society. Banks are seen to perform more CSR activities in this area.

7.6 Sports

Financialsupportismandatoryforimprovingtheperformancesofsportsofthecountryandto perform better at international level .Keeping this in mind, Government of Bangladesh has taken initiatives to attach each bank with a particular event of sports. So, financial institutions have to play a role to encourage and support the sports. AsperBangladeshBanksReviewofCSRactivitiesoffinancialsectorin2013,totalannual direct CSR expenditure of banks increased by Tk. 1,424.80 million than the previous year. (In Million Taka) Year2010201120122013 CSR Expenditure2,329.802,188.333,046.694,471.49 BecauseofSavarRanaPlazaTragedyunlikeinprecedingyears,CSRinitiativesofbanksin 2013 mainly focused on emergency relief in humanitarian distresses. Other focused areas of CSR activities in 2013 were as follows: i.financialinclusionoflessprivilegedpopulationsegmentsandunderservedeconomic sectors ii.promotionofhealth,educationandcultural/recreationalactivitiesforadvancementand well being of underprivileged population segments iii.promotion of environment friendly projects iv.adoption of energy efficient, carbon footprint reducing internal processes and practices in own offices and establishments was going on. Besides continuation and expansion of previous activities in the above areas, some newer drives were seen in the 2013 CSR reports of different banks included: 14 | P a g e i.Undertaking projects in a village called Southkhali, under Shoronkhola thana of Bagerhat district,forpoorindividualsandfarmerstoprovidemotivationalsessiontowardsPalm Plantation and distribution of 5,000 Palm Trees free of costii.Constructionofextensionroadatbothendsofthebridgeconnecting18villagesand stretchingmorethan6kilometersfromChatlakandatoTuraviaShoulmariatRoumari upazila under Kurigram district for smooth traffic movement.iii.Providinglegalassistancetohelplessprisonersandpersonswhodonothavefinancial resources to conduct cases filed against them. iv.OrganizingabookfairprogramforunderprivilegedchildrenatBoiMelainBangla Academy premises.v.Introducingspecialcreditfacilityforthefarmerstobuyagriculturalmachineriesand equipments. vi.SupportingResearch&Development(R&D)activitiesinarchaeologicalsurvey,bio-technology etc. 8. Brief Overview of Dutch Bangla Bank Limited Dutch-Bangla Bank started operation asBangladesh's first joint venture bank.The bank was an effort by local shareholders and the Dutch company FMO. From the onset, the focus of the bank has been financing high-growth manufacturing industries in Bangladesh. The rationale being that themanufacturingsectorexportsBangladeshiproductsworldwide.Therebyfinancingand concentrating on this sector allows Bangladesh to achieve the desired growth. Dutch Bangla Banks other focus is Corporate Social Responsibility. Even though CSR is now a clich,DutchBanglaBankisthepioneerinthissectorandtermedthecontributionsimplyas 'social responsibility'. Due to its investment in this sector, Dutch Bangla Bank has become one of thelargestdonorsandthelargestbankdonorinBangladesh.Thebankhaswonnumerous international awards because of its unique approach as a socially conscious bank. DutchBanglaBankwasthefirstbankinBangladeshtobefullyautomated.TheElectronic-BankingDivisionwasestablishedin2002toundertakerapidautomationandbringmodern bankingservicesintothisfield.Fullautomationwascompletedin2003andherebyintroduced plasticmoneytotheBangladeshimasses.DutchBanglaBankalsooperatesthenation'slargest ATM fleet and in the process drastically cut consumer costs and fees by 80%. Moreover,DutchBanglaBankchoosingthelowprofitabilityrouteforthissectorhassurprised many critics. Dutch Bangla Bank had pursued the mass automation in Banking as a CSR activity and never intended profitability from this sector. As a result, it now provides unrivaled banking technology offerings to all its customers. Because of this mindset, most local banks have joined Dutch Bangla Bank banking infrastructure instead of pursuing their own. Even with a history of heftytechnologicalinvestmentsandevenlargerdonations,consumerandinvestorconfidence hasneverwaned.Dutch-BanglaBankstocksettherecordforthehighestsharepriceinthe DhakaStockExchangein2008.AsperBangladeshBanksCSRactivitiesratingthisbankis currentlyholdingthetoppositionofthechartdisclosedbytheBBsAnnualCSRinitiatives report. 15 | P a g e 9. CSR activities by Dutch Bangla Bank Limited DBBLasaresponsiblecorporatebodyisfullyawareofitsresponsibilityabouthowits operationalactivitiesimpactitsstakeholders,theeconomy,thesociety,itsstaffandthe environment.Conductingbusinessinanethicalway,creatingopportunitiesforbusinessand economicgrowth,empoweringpeopletofulfilltheiraspirations,ensuringprotectionof environment while financing businesses and supporting the distressed people of the society are at theheartofsocialcausepolicyofDBBL.DBBLsinceitsinceptionin1996hadadoptedthe policy of contributing to the social cause. It has been continuing its effort during the last 18 years as a pioneer in the banking sector and has become the leader much ahead of the other banks. To that end in view the Bank established Dutch-Bangla Bank Foundation which has been rendering services to various fields relentlessly where it is necessary covering the areas of education, health care,naturalcalamitiesaswellasman-madedisaster.TheBankdreamsofacountryfreefrom hungerandasocietyfreefromvices.Itisnotpossiblewithouteducation.Assuchthebank placesmuchimportanceoneducation.Meritoriousstudents,particularlyinruralareasare droppedeveryyearbecauseoffinancialconstraint.Buttheycouldcontributetothenation building if they could have some financial assistance. Keeping this thing in mind DBBL has been awardingscholarshiptothemeritoriousstudentsinneedoffinancialaidsinceitsbeginning. ConsideringthenumberofsuchstudentsishugetheBankhasplannedtoincreasethe scholarshipnumbertoaninsurmountablelevelof30,000involvinganamountofTaka1.02 billion annually from the year 2016. 46%37%4%10%1%2%Contribution of DBBL in Different Sectors in 2014Education HealthSocial DevelopmentDisasterSocial Awareness Miscellaneous 16 | P a g e 9. 1 Contribution to education Sector Humanisthemostimportantelementofanykindofdevelopment.Tomakethehumana resourceeducationisamust.Keepingthisviewinmind,Dutch-BanglaBankhasbeengiving priority to the education sector. Awarding scholarship to meritorious students in need of financial aid, financial support for organizing the prestigious Ganit Olympiad, Physics Olympiad, helping developmentofeducationalinfrastructuralfacilities,providingessentialeducationalequipment etc. are some of the aspects included in the program. 9.1.1 Scholarship Program Dutch-BanglaBank,underitssocialcauseprogram,hasbeenawardingthescholarshipstothe meritoriousstudentsinneedoffinancialaidstudyingatdifferentlevelsofeducationsinceits beginning. DBBL awards new scholarships every year along with renewal of existing awardees. The Bank has given scholarships to the deserving students from huge applications following a set of criteria suchas the applicants academic results, financial capability, physical conditions etc. Around90%ofthescholarshipshavebeengiventotheruralstudentsand50%tothefemale students. Realizing the fact that every year many meritorious students, mostly in rural areas, are compelledtodiscontinuetheirstudybecauseofpoverty,thebankhasincreasedthenumberof scholarship massively. Accordingly, 26,439 students of HSC and graduation level were awarded scholarshipunderthisprogramin09differentphasesuptoDecember2014.Withintheyear 2016 the number will reach to an insurmountable figure of 30,000 per year involving an amount of taka 102 crore annually. 9.1.2 The Math olympiad, dutch-Bangla Bank - Prothom Alo Ganit utsab DBBLhasbeenprovidingfinancialsupporttotheprestigiousGanitUtsabunderthetitleof Dutch-BanglaBank-ProthomAloGanitUtsabforthelastelevenyears.About25,000students fromdifferentschoolsandcollegesofthecountryparticipatedintheGanitUtsabin2014.The program was held in 22 different regions. Among the 25,000 participants more than 800 students qualified for the national program and participated in the 12th Bangladesh Ganit Olympiad. Then ganitcampwasarrangedwiththewinnersoftheNationalOlympiadandfinallyateamof06 (six)memberswereselectedandtheyparticipatedinthe55thInternationalMathematical Olympiad (IMO) held in South Africa in 2014. 9.1.3 Donation for organizing Bangladesh Physics Olympiad Physics is the mother ofall sciences, theroot ofall concepts. Making physics thrive will cause sciencetodevelopbeyondjustschoolstudies.ThePhysicsOlympiadwillarouseinterest regardingscienceinthemindsofthenewgenerationanddrawthemtowardsit,aswellas encouragethemtolearnin-depthaboutthisfieldofknowledge.Keepingthisviewinmind, Bangladesh Physics Olympiad Committee has been arranging Bangladesh Physics Olympiad for thelastfouryearssuccessfully.DBBLhasbeenprovidingfinancialsupportforlast2 consecutiveyearsattherateofBDT2,500,000in2013andBDT2,500,000in2014for organizingBangladeshPhysicsOlympiadalongwithparticipationintheInternationalPhysics Olympiad(IPhO).The4thPhysicsOlympiadwasheldin10regionswhere7,000students 17 | P a g e participatedintheprogram.Itisagreatsuccessthatalotofstudentsof Bangladeshhavebeen attracted in Physics and Science through arranging Bangladesh Physics Olympiad. 9.1.4. Educational Infrastructural development DonationtoSholakuricollege,Modhupur,tangailSholakuriunionissituatedinModhupur Upozila of Tangail District. It has 42 villages and about 35,000 people live in this area. Most of themareethnic-GaroandKutch.TherewasnocollegeinSholakuriandsurroundingareas.In ordertospreadthelightofeducationtothedisadvantagedpeople,Dutch-BanglaBankgranted financialsupportofTk.10,000,000.Donationwasalsogiventofaujdarhatcadetcollege Chittagong started its journey in the year 1958. 9.2 Contribution to Health Sector HealthisoneoftheprimeparameterstoachieveMillenniumDevelopmentGoal(MDG).The needforhealthcareisincreasingeverydayduetorapidgrowthofpopulation.Dutch-Bangla Bank has identified health care as a priority sector and helped create better health care facilities atacheapercostforthedisadvantagedpopulation.InthisconnectionDutch-BanglaBank extended its support for the following programs in 2014: 9.2.1 Contribution for health infrastructure development donation to Dhaka Ahsania Mission Cancer & General Hospitaldonation toCombined Military Hospital (CMH)donation to SHEBA health center 9.2.2. Smile-Brighter Program Smile-Brighter program is an initiative taken byDBBL tobring back smile on the face of the boys and girls with cleft-lip and cleft-palate through plastic surgery at free of cost. DBBL spent Taka 49.43 million for cleft-lip and cleft-palate operation under Smile-Brighter program since 2003. 9.2.3 Cataract operation for underprivileged blind people Visual impairment isanimmense social problem in our country. Cataract is the major cause of blindnessand80%ofthemcanresumevisionthroughcataractoperation.Alargenumberof ruralpoorpeoplearedeprivedoftheopportunitytodoawaywiththeproblem.Keepingtheir sufferingsinmind,Dutch-BanglaBankFoundationstartedtheprogramofoperating12,000 underprivilegedblindpeoplebyprovidingsophisticatedcataractsurgery(IntraOcularLens) throughoutthecountryinphasessince2008.About6,505cataractoperationshavesofarbeen completed successfully among which 1,500 operations were done in the year 2014. 18 | P a g e 9.2.4 Support for medical treatment DBBL provide one-time financial assistance to those who have been suffering from diseases for longtimeandarenotabletobearthetreatmentcost.Intheyearof2014intotalBDT1.78 milliondonationsweremadetodifferentpersonstomeetthecostoftreatmentofcancerand other diseases. 9.3 Contribution in disaster Management DBBL stands by the distressed people at the time when natural calamities occur. DBBL provides support to the affected people in cash and kind for their rehabilitation after the natural calamities likecyclone,flood,tornado,landslide,rivererosion,anddevastatingfire.Thedonationinkind includesfood,medicine,waterpurifyingtablets,blankets,GCIsheetsetc.Someofthe contributionsofDBBLinthissectorin2014areasfollows.TheBankhasbeendistributing blankets among the poor people of the country for the last many years. In this connection DBBL donatedtotal1,42,000blanketsworthTk.9,08,80,000/-(Takaninetymillioneighthundred eighty thousand) only in the year 2014. donation of blankets to the cold affected people of the country donation of BDT 50,000,000 only for relief and rehabilitation of the flood affected people 9.4 Contribution to Social Development DBBLhasbeenprovidingdonationstodifferentnon-profitorganizationsandreligious organizations with a purpose of welfare of the society from the beginning of their CSR program. In 2014 it has contributed to the below organizations:donationtoPROYAShforconstructingthe4thand5thfloorofthePROYAShacademic building at Dhaka cantonment donation ofBDT 20,000,000 to Lakhu Konthe Gao Sonar Bangla donation to Police lines Jame Masjid, Madaripur donation for constructing a 5-storied Mosque complex at Mirpur DOHS 9.5 Contribution to sports sector BangladeshAthleticFederationisanationalorganizationwhichisworkinghardforthe developmentoftheathletesofthecountry.Thosepotentialandrisingathletesweretrainedup with the modern scientific trainingsand intensive cares so that they would reach to the level of international / world class standards and thus they were expected to achieve the name and fame ofBangladeshbywiningawardintheSAFGames,AsianGames,CommonwealthGamesand World Olympic Games. To arrange such sophisticated training course, the organization needed a largeamountoffinancialassistancefromthedonors.Inthisconnection,DBBLdonatedTk. 1,000,000/-(Takaonemillion)onlytoBangladeshAthleticFederationfororganizing03-year long term training program for the Athletes. 9.6 Contribution to city beautification 19 | P a g e Dutch-Bangla Bank constructed a monument in the crossing of Hotel Ruposhi Banglaand State Guests House Jamuna. DBBL is also engaged in beautification of the road islands and footpaths fromKakrailCrossingtoHotelRopashiBanglaCrossingofDhakametroasapartofcity beautification project. Taka 11,31,000/- (Taka one million one hundred thirty one thousand) only was spent in last year for maintenance of the monument and fountain. 9.7 Contribution for creating awareness on different social issues DBBL has been engaging in creating awareness through electronic and print media since long on differentsocialissueslikeHopeandlovemakeuslovely,Willpowerisenoughtodoagood job,Upholdjustice,Goodbehaviorwithmentallyretardedpersons-amoralduty,Humanfor humanity, Drug addiction- a menace to destroy life, Plant tree- save environment etc. The short dramasfocusingonabovesocialissuesaretelecastedregularlyinprimetimeatseveral electronicmediafortheviewers.Besides,somebillboardsareplacedinvitallocationsofthe citywithcolorfuladvertisementofthosesubjects,forcreatingawarenessamongthemass people.ConsideringthisDutch-BanglaBankspentTaka10,800,000onlyin2014forcreating awareness. Hope and Love make us lively Willpower is enough to do a good job Uphold justice Good behavior with mentally-retarded persons, a moral duty Human for Humanity Drug addiction - a menace to destroy life Plant tree, save environment Donation on account of miscellaneous purposes 10. Discussion and Analysis OutofthetotalsixheadsofCSRasmentionedearlierinthispaper,DBBLhasbeenfoundto scorethehighestinsecondareascalledEducation,Health,EnvironmentandSocialwelfare. MercantileBankLimitedhasthehighestcontributionsanddisclosurescoresinculturaland heritageretention.BankAsiaLimitedandPrimeBankLimitedjointlytopthetableofCSRin Sports.Mostofthebankshaveshownbettercontributionineducationandhealthsectorasthe partoftheirsocialresponsibilitiesasitisseenthatthepercentageofhighestaveragescore achieved to the score allocated. Banks have the least contribution in Environmental and Culture &HeritagerelatedCSRasitfoundfromthestudythatthepercentageoflowestaveragescore achieved to the score allocated. Itismatterofpridethatthebanksareveryconcerntocontributetomeettheemergency situationsspeciallylikecyclones(Aila)andfloodaffectedareas,warmclothdistributionetc. EverybankcontributedtoourprimeministerRelieffundespeciallyforfloodaffectedpeople, BDR mutiny and fire affected people of garments. The study revealed that the banking sector in Bangladesh has been playing vital role for the welfare of the society. As it is seen from this paper thatthebankshavegivenmostprioritytocontributeintheeducationsectorofBangladesh understandingtheimportanceofitforthebuildingofagoodnationatthesametimetheir contribution for the protection of environment is phenomenal. 20 | P a g e From the above table it can be drawn that Banks spending on CSR was increased by 46.78% in 2013 whereas in 2012 therewasa39.22% increase in comparison to 2011. From 2010 to 2013 there was an increasing trend in CSR expenditure as per recent data disclosed by BB. ExpenditureofallbanksforCSRactivitieswitnessedasignificantrisein2013despitea downturn in their overall operatingearnings. Expenditure of banks for CSR activities is on rise because the central bank has been able to motivate them for doing something for the welfare of deprived section of the society. BB also monitors regularly whether banks are maintaining rules andregulationsfortheirexpendituresunderCSRactivities.Besides,banksarenowmore conscious about their responsibilities for the underprivileged section of the society. BanksgenerallyspendaportionfromtheirnetoperationalprofitsforCSRactivities.To encourage banks for CSR activities, BB is awarding points to banks on management component whilecomputingCAMELSratingwheretherewillultimatelybeapositiveimpactonoverall rating of a bank. According to BB, the total operating profits of banks stood at BDT 7,225 core in 2013 and BDT 4,466 crore in 2012 whereas their total operating profits were BDT 9,121 crore in2011.Dutch-BanglaBankspentthehighestBDT78.54croreunderCSRactivitiesin2012, Islami Bank Limited was in second position which spent BDT 47.61 crore and Janata Bank was inthirdpositionthatspentBDT42.68crore.DirectCSRexpenditureofDBBLispresentedas under as per recent data of BB. In2013totalexpenditureinCSRbydifferentbanksinBangladeshwasBDT4,422millionas perBB.If wecompareonly DBBLs expenditure as the highest spenderin CSR activities with all of the banks of the country we can find the below table: Year DBBL Expenditure in Taka All Banks Expenditure in Taka Percentage 2010168,860,0002,329,778,0007.25% 21 | P a g e 2011341,830,0002,188,329,74315.60% 2012527,670,0003,046,685,87717.32% 2013785,400,0004,422,387,45017.76% We can see there was a 48.84% increase in the DBBLs direct CSR expenditure in comparison to 45.15% of overall banks direct CSR expenditure in 2013. This analysis also left the footprint of DBBLs being the highest contributor to the society in the form of direct CSR expenditure. 11. 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