csr in islamic bank bd

7/29/2019 CSR in Islamic Bank BD

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CORPORATESOCIAL

RESPONSIBILITY


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Report on

CSR OF ISLAMI BANK

BANGLADESH LIMITED

Course Title: Business Communication

Submitted to:

Nigar Sultana

LecturerDepartment of Marketing

Jahangirnagar University

Submitted by:

Mostafa Zaman

Class Id: 1941Department of Marketing

2nd Semester, 2nd Batch


Date of Submission: 21th September ,2011


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Table of Content


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Content Page no.

Executive Summary 6

1.0 Introduction 7

1.1 Origin of the report 71.2 Scope 7

1.3 Research Methodology 7

1.4 Limitations 8

1.5 Problems and purpose 8

2.0 CSR 9

2.1 Corporate Social Responsibility(CSR) of 10

2.2 Objectives 11

2.3 Target Area 122.4 Target Group 12

2.5 Deposit and Investment of IBBL is forsocial welfare

13

3.0 Responsibility towards shareholders 13

3.1 Compliance 13

3.2 Corporate governance 13

3.3 Relationship with the Shareholders 13

4.0 Responsibility towards employes 14

4.1 In-house CSR of the IBBL 14

5.0 Responsibility towards customers 14

6.0 Responsibility towards suppliers 14

7.0 Responsibility towards community 14

8.0 Health and Medicare Programs 15

8.1 Islami Bank Hospital 15

8.2 Organizing Health Camps 16

9.0 Islami Bank Medical College, Rajshahi 16

9.1 Scholarship Program 16

10.0 Humanitarian Help Programs 17

11.0 Bangladesh Sangskritic Kendra (CulturalCentre):

17

11.1 CSR in cricket world cup 2011 18

12.0 Responsibility towards environment 18

13.0 Current News 18

14.0 Awards & Achievements of IBBL 19

15.0 Bibliography 19


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List of illustration

Figure Page no.

Figure 2.0 10

Figure 8.0 15

Figure 11.0 18

Letter of Transmittal

September 21, 2011

Lecturer

Department of Marketing



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Subject: Submitting the report on CSR Of Islami Bank Bangladesh Limited

Dear Madam,

I am submitting a well-structured and comprehensive report on CSR Of Islami Bank

Bangladesh Limited on due time. Despite many constraints like scope and access to

information, i have tried to create something satisfactory.

I have tried to follow your guideline in every aspects of preparing this report.

I hope this report will entice your kind appreciation.

Sincerely,

Mostafa Zaman

Roll- 1941

2nd Semester, 2nd Batch

Department of Marketing


Executive Summary

A corporation cannot run only for profit. It has to perform some social welfare since it needs

social support. From this concept the idea of corporate social responsibility has been risen. Now

days it has become a buzz word in corporate world. Many corporations are giving more

emphasize on this sector.

Islami bank Bangladesh limited is one of the leading commercial bank of Bangladesh.it is one of

the largest sariah based bank that performs various kinds of corporate social responsibilities in


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various fields. Every year it spends a remarkable sum of money for CSR activities in Bangladesh.

They contribute in social, environmental, national, educational, cultural, sports sectors with

sponsorship.

In this report we have tried to focus on these activitiesn of IBBL. We investigate different sector

of IBBL CSR division and collect data that we include in this report. we think IBBL one of the

best performers in this sector

CSR is a vital part for all the companies and corporations.Islami bank Bangladesh ltd.

always does a good number of CSR activities.

It has so many projects for the poor people of our country who are deprived of their basic

needs. It has taken some measures to help those people by providing and organisinghealth camps and free medicine.

It has some other projects to raise the environmental equality for our present as well as

our next generation.

This report is generated under the academic supervision of our course teacher Nigar Sultana,

Department of marketing, Jahangirnagar University, Savar, Dhaka. This report is prepared for our

Business communication course. The topic is CSR OF Islami Bank Bangladesh Limited.


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In this report, at first I cover the preliminary concept of CSR. Then I go for its

practical maintenance which is the main focus of this report. I explained thebenefit ofCSR OF Islami Bank Bangladesh Limited for Bangladesh.

At first I prepared a questionnaire about the topic of CSR OF Islami Bank

Bangladesh Limited. I want to understand the marketers for taking business idea

about CSR through the questionnaire.

I visited the website about CSR. This idea is now very important for the

corporations. I visited the CSR branch ofIslami Bank Bangladesh Limited.

In this report I try to my level best to focus all the point ofCSR. I have described

all the point individually and collected data very carefully.

For preparing this report I used Microsoft word and for presenting data very

beautifully I used Microsoft excel.

The major limitations encountered are:

Lack of experience on preparing reports.

Unavailability of the information due to their privacy.

Electricity problem of our country.

Green marketing is a buzz ward in this new era of marketing.Modern business is now more inaugurated with this system. Butgreen marketing is not so much spread in Bangladesh. Greenmarketing must be attributed in our world. But the main problemis the businessmen are not conscious about this business.


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Now, the purpose of the report is to run green marketing inBangladesh and find out the proper solution for furtherimprovement of the green marketing.


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Globally, the notion of Corporate Social Responsibility (CSR) is fast gaining

acceptance as the contribution that businesses can and should make

voluntarily towards environmentally sustainable and socially equitable

development. Besides the usual financial reporting, non-financial or

sustainability reporting is accordingly also fast gaining usage.

Stated briefly, CSR is about (i) taking stock of the economic, social, and

environmental impacts of a business, (ii) mitigating the negative impacts and

bolstering the benign impacts, (iii) taking up action programs and community

investments to reduce social exclusion and inequality and to address the key

sustainable development challenges (meeting the needs of the present

generation without impairing the ability of future generations to meet theirs

is a generally accepted meaning of sustainable development ).

Figure 2.0

Because of their ethical and public interest dimensions, many of the desiredsocial and environmental practices are compulsorily mandated by laws and

regulations (e.g., safe and healthy work environment, equal opportunity and


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fair treatment in respect of gender and ethnicity in hiring and career

advancement, avoidance of forced labor or child labor, and so forth). CSR

programs and actions go beyond such mandatory compliances into voluntary

engagements to promote equitable, sustainable development. Besides

the self-evident ethical case, a strong business case for CSR ( as

investment in a strategic asset or distinctive capability, rather than an

expense) is also getting clearer with developing practice; seen as

benefiting a business by :

building reputation, brand value, customer loyalty, employee

motivation and retention;

mitigating risks in own operations and in assessing suppliers and

clients;

cutting down wastes (of energy, raw materials etc.), driving upefficiency;

gaining new markets for products and services, in the

communities/ social groups benefited by the CSR actions.

Islami Bank Bangladesh Limited is dedicated itself towards the welfare of the

society. It has formed a separated foundation named Islami Bank Foundation

with a fund of Taka 38.00 million in order to conduct social-welfare activities

on a broad scale. Since then, Islami Bank Foundation is carrying the social

welfare, education, health and medicare activities on behalf of Islami Bank

Bangladesh Limited (IBBL).

The aims and objectives of the Foundation are to serve distressed

humanity, promote people oriented mass education, extend health and

Medicare facilities to the poverty-stricken people in urban and rural

areas, create facilities for productive self-employment and develop

human resources for improving economic condition and quality of life,

assist healthy growth of art, culture and literature, science and

technology, sports, research and propagation of Islamic teachings. The

Foundation has taken up a number of schemes covering the whole of

Bangladesh.

Islami Bank Foundation has some special projects for CSR activity,


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these are:

Islami Bank Hospital

Islami Bank Medical College, Rajshahi

Community Hospital

Monoram: Islami Bank Crafts & Fashion

Service Centre

Islami Bank Institute of Technology

Islami Bank International School and College

Islami Bank Physiotherapy and Disabled

Rehabilitation Centre

Centre for Development Dialogue

Bangladesh Sangskritic Kendra (Cultural

Centre)

Initially the Scheme was started as a Pilot Scheme in the rural areas of


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certain districts under the direct supervision of the nearby Branches of

the Islami Bank Bangladesh Limited.

The Scheme is being gradually extended to all the Districts through

different Branches of the Bank.

Able bodied & industrious rural poor having age between 18 to 50

years and the permanent resident of the project area.

Farmers having cultivable land maximum 0.50 acres and the

Sharecroppers.

Persons engaged in very small off-farm activities in the rural areas.

Destitute women and distressed people.

Persons having liabilities with other banks/institutions are not eligible

for investment under the Scheme.

Islami Bank Bangladesh Limited (IBBL) excels as a dedicated embodiment of

socio-economic welfare, not the tool of machination of interest. Islami

banking itself is a manifestation of welfare both for its partners and the

society as it is born to serve. Its commitment is endowed upon the entersociety regardless of caste, creed and any other denomination.

IBBL has been discharging its responsibility to safeguard the interest of theshareholders in line with the objectives of the Bank by complying Shariah &law of the land strictly, building a strong & efficient management andenhancing shareholders value & financial performance.


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IBBL has been operated as the best Shariah compliant Bank in the country.Besides, the Bank has been paying huge amount of tax to the nationalexchequer every year. Last year, the Bank paid tax to the exchequer for anamount of Tk.3,245.11 million and became the second highest corporate taxpayer of the country.

The Bank is committed to ensure the highest standard of corporategovernance and effective application of its principles as well as upholding thebest banking practices as a part of discharging its responsibilities tosafeguard the interest of shareholders.

Shareholders are communicated the comprehensive details about thepeformance, financial results and important ativities of the Bank throughAnnual Report. Information regarding different activities and performance ofthe Bank is also availavle in the Banks website. Various announcements onprice sensitive information and other discloseures are made throughnewspaper, website and media. Shareholders are also encouraged toevaluate Banks performance and to give their valuable suggestions in theAGMs. Members of the Board of Diectors are actively involved with various programsof the Bank.

IBBL has succeeded to develop a group of highly motivated professionals,working for the benefit of the people, based upon accountability,transparency and integrity. The Bank always aware of continuousdevelopment of knowledge, competencies and attitude of the employees;comfortable and modern working environment as well as justified andcompetitive compensation packages for them.

The in house CSR is well maintained through indiscriminate dispensation;

provisions of modern, healthy and safe work place; developing employeescompetence and skill; widening scope of learning imparting training, taking

care of environment; encouraging employees aesthetic talent; industry-

compatible wage structure etc.

Customers are the core of Banks existence. To encourage people, from alleconomic categories for becoming banks customer, to ensure improvedcustomer service, to help them run business efficiently, to encourage them infollowing Islamic principles in their business entities and to make them realpartners of the Bank, the Bank takes various initiatives:


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Suppliers play a fundamental role in the Banks micro environment. As anessential component of overall business function, suppliers regarded asinclusive partners. The Bank develops its relationships with suppliersorganizations on the basis of value and trust.

Present investment of the Bank in the industrial sector is Tk. 13,762.80million which is about 50% of the total investment of the Bank. At presentabout 10,000 employees are working in IBBL and millions in its financedprojects.

Banks strategy towards discharging community responsibility focuses on: (1)Health, (2) Education, (3) Sports, arts & culture, (4) Women empowermentand (5) Humanitarian Assistance.

The Foundation has, therefore, taken up the following Programs to extend

health, Medicare and sanitation facilities to the urban and rural areas:

Establishment of Medical Centers

Supporting charitable dispensaries

Lump-sum help for medical treatment

Tube well Installation

Sanitary Latrine construction etc.


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Figure 8.0

With the objective of providing low-cost curative services to the less affluent

segment of the society, the Foundation has so far set up Hospitals at three

Divisional Headquarters in Dhaka, Rajshahi and Khulna. Services of eminent

general practitioners and specialists in various fields of treatment likeMedicine, Surgery, Gynae, Pediatric, E.N.T. Urology, Neuro-surgery, Skin,

Orthopedic etc. are harnessed in these hospitals.

A significant number of people, especially the rural poor, suffer from various

eye diseases; but due to non-availability of eye specialists in the rural areas

as well as financial inability, the patients can not get proper treatment.. Last

year, 11 Eye Camps were organised providing services to 660 patients.

The number of Doctors in Bangladesh is not sufficient compared to the total

population. The Govt. Medical Colleges are also a very few and a good

number of meritorious students cannot get admitted into the Govt. Medical

Colleges due to insufficient number of seat capacities. Though some private

medical colleges have been established mostly in and around the capital but

the tution fees and other charges are so high that the students of poor and

middle class families can not afford it. Keeping in view the objective to enable

the students of poor and middle class families to be a doctor, Islami Bank

Foundation has established a medical college in Rajsahi, a metropolitan cityof northern part of the country. In the meantime, the classes of the students

of 1st 2nd and 3rd batch are going in full swing. The construction work of the

hospital building at Naodapra, the own site of the college, is also going on.

Islami Bank Foundation (IBF) provides scholarship and lump-sum financial

assistance for education purpose to the meritorious but poor students under

its Scholarship Program. Since inception of the Program 6459 students

received scholarship/grant for Tk. 60.14 million till 2010. Apart from IBF, thebank has been providing scholarship to the very poor students secured GPA 5

in SSC & HSC examinations from the year 2010 under its direct Scholarship


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program. 200 students (100 boys & 100 girls) are enjoying Higher Secondary

Scholarship @ Tk. 1000/- per month for 2 years and another 200 students

(100 boys & 100 girls) are enjoying Graduation Level Scholarship @ Tk.

1500/- per month for 4 years.

These program aims at providing help to distressed people who are unable to

meet their basic needs like food, clothing, shelter and medicine. The old

widow and children without guardians get preference. Besides, the program

extends assistance to orphanages, provide fund for the marriage of poor girls,

assist indebted people, help distressed wayfarers etc.

Culture is very important leading factor of a nation. A nation is considered

developed which is culturally advanced. Now-a-days, no state is conquered

through applying physical force but through ideas, thinking, norms, belief,

etc. Like many other Muslim countries, the elite, affluent section and new

generation of Bangladesh are presently motivated by western culture which is

very harmful for the nation. Islami Bank Foundation has, therefore,established Bangladesh Sangskritic Kendra ( Cultural Centre ) in Dhaka for

upholding and promoting national culture and heritage of the country.

Islami Bank Foundation, through its various welfare activities, has been

working to serve the destitute and distressed people as well as for the socio-

economic development of the country.

Islami Bank Foundation wants to expand the on-going projects throughout the

country and also wishes to undertake new ones for the overall developmentof the country. The Foundation is looking forward for sincere assistance and

co-operation from philanthropic persons and institutions from home and

abroad to materialize its noble and cherished objectives. Zakat and Donations

may be credited to Islami Bank Foundation Account Nos. 02101005 (Zakat)

and 02101014 (Donation) maintained with lslami Bank Bangladesh Ltd., Head

Office Complex Branch, 40, Dilkusha Commercial Area, Dhaka-1000,

Bangladesh.


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figu

Figure 11.0

Bangladesh was one of the co-hosts of ICC cricket world cup 2011 and IBBL

being one of the leading nation building corporation, considers it as the

prestigious event to extent its all out cooperation to make the operation

historic success by being a part of this glorious and majestic event that

echoes with all the million people of our great nation. Considering the above,

the historic ICC cricket world cup 2011 euphoria colossally beholds the

beaming galore of Islami bank through sponsorship of Dhaka City

beautification with BCB.

RESPONSIBILITY TOWARDS ENVIRONMENT

The main theme of environmental responsibility is to create No Harm to the

environment in view to remain it healthy for future generation. Recently, the

issue of climatic change is being addressed seriously all over the world. It is

identified that Bangladesh being a southern delta is under serious threat of

natural disaster.


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Islami Bank Foundation Sanctioned Tk.6 lac for Relief and

Rehabilitation Program

Science Fair and Prize Giving Ceremony

Certificate awarding ceremony

Islamic Bank Bangladesh Limited (IBBL) is awarded The Best Bank of

Bangladesh for the year 1999, 2000, 2004, 2005 to 2010 and The Best

Islamic Financial Institution in 2008, 2009 by The Global Finance, a

reputed London based quarterly magazine.

www.islamibankbd.com

www.google.com

Islami bank CSR department

63, dilkusha c/a, Dhaka.

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csr in islamic bank bd

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