May

CORPORATE

SOCIAL

RESPONSIBILITY

23/04/2011

Report on

CSR OF ISLAMI BANK BANGLADESH LIMITEDCourse Title: Business Government & Society Course Code: MKT-103 Submitted to:

Barota Chakraborty Lecturer

Department of Marketing Jahangirnagar University Submitted by:

Nexus

Department of Marketing 1st semester,2nd Batch Jahangirnagar University Date of Submission: 23 April,2011

WE ARE......Nexus GroupS.LNameI.D

1Sultana Begam640

2Ashik Abdullah678

3S. M. Riazul Islam 659

4Md. Billal Hossain661

5Mostafa Zaman1941

6Zakaria Khan667

7M Alamgir Hossain1942

Letter of TransmittalApril 23, 2011 Barota Chakraborty Lecturer Department of Marketing Jahangirnagar University Subject: Submitting the report on CSR OF Islami Bank Bangladesh Limited Dear Madam,

We are 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, we have tried to create something satisfactory.We have tried to follow your guideline in every aspects of preparing this report. We have concentrated on the most relevant and logical areas to make our report coherent as well as practical.

We hope this report will entice your kind appreciation.

Sincerely,

________________

Sultana Begam

(On behalf of the group members)

Roll- 6401st semester,2nd Batch Department of MarketingJahangirnagar University

AcknowledgementAll the praise is for Allah, the most merciful and beneficent, who blesses us with the knowledge, gave me the courage and allowed me to accomplish this task.As our assigned topic was to prepare the report on CSR OF Islami Bank Bangladesh Limited for our course 103 of BBA program, we visited Islami Bank Bangladesh Limited as well as websites to complete our report and its really a great opportunity for us to acquire valuable knowledge for this interesting subject. At the very beginning, we want to express our profound gratitude to our respected course teacher Barota Chakraborty, to provide us with such a nice opportunity to prepare this kind of a report on Business Government & Society.We would also like to take this opportunity to express our wholehearted gratitude to our fellow friends who offered encouragement, information, inspiration and assistance during the course of preparing this report.

This report suffers from many shortcomings, nevertheless we have exerted our best efforts in preparing this report. we seek excuse for the errors that might have occurred inspite of our best effort.

So lastly, we would again like to express our heartfelt thanks to our course teacher for providing the theoretical knowledge and valuable guidelines related to recruitment process.Table of ContentContentPage no

Executive Summary

1.0 Introduction

1.1 History of modern Islamic banking:

1.2 Concepts in Islamic Banking:

1.3 Islamic laws on trading:

1.4 Principles:

1.5 How it makes profit:

1.6:Islami Banking System in Bangladesh:

1.7:New Order of islami banking:

2.0:Profile of ISlami bank Bangladesh limited:

2.1:Services:

2.2Developing EIBS System:

2.3Major services of EIBS are:

2.4:IBBL ATM Networks:

2.5:Aims and Objectives of IBBL:

2.6:IBBL Products:

2.7:RECENT DEVELOPMENTS:

2.8:IBBL's World Rating:

3.0:CSR:

3.1:Corporate Social Responsibility(CSR) of IBBL:

3.2:Objectives:

3.3:Target Area:

3.4:Target Group:

3.5:Deposit and Investment of IBBL is for social welfare:

4.0:RESPONSIBILITY TOWARDS SHAREHOLDERS

4.1:Compliance:

4.2:Corporate governance:

4.3:Excellence in performance:

4.4:Relationship with the Shareholders:

5.0:RESPONSIBILITY TOWARDS EMPLOYEES

5.1:Maintaining No Discremination:

5.2:In-house CSR of the IBBL:

5.3:Providing Modern, healthy & safe workplace:

5.4:Developing & improving employees competencies & skills:

5.5:Creating a learning & development environment:

5.7:Remuneration and Benefits:

5.8:Caring Employer:

5.9:Industrial Relationship:

6.0:RESPONSOBILITY TOWARDS CUSTOMERS

6.1:Financial Inclusion

6.2:Screening customers

6.3:Responsible Customer Services

6.4:Relationship with the Customers

7.0:RESPONSIBILITY TOWARDS SUPPLIERS

7.1:Ethical Procurement Practices

7.2:Sustainable Procurement Policy

8.0:RESPONSIBILITY TOWARDS COMMUNITY

8.1:Health and Medicare Programs :

8.2:Islami Bank Hospital

8.3:Community Hospital

8.4:Organizing Health Camps

8.5:Assistance to other initiatives

8.5:Assistance to other initiatives

9.0:Educational Programs

9.1:Islami Bank Medical College, Rajshahi

9.2:Islami Bank International School and College

9.3:Health Education

9.4:Technical Education

9.5:General Education

9.6:Assistance to other Educational Institutions

9.7:Scholarship Program

9.8:Education facility in abroad

9.9:Academic Award & Reception Program

10.0:Humanitarian Help Programs

10.1:Relief and Rehabilitation Programs

10.2:Islami Bank Physiotherapy and Disabled Rehabilitation Centre

10.3:Mobilisation of Charitable Fund

10.4:Relief & Rehabilitation

10.5:CSR activities for the general people

10.6:Rehabilitation of baggers

10.7:Assistance to other organizations and individuals:

10.8:Service Centre

10.9:Dawah Programs

10.10:Income Generating Programs

10.11:Monoram: Islami Bank Crafts & Fashion

10.12:Islami Bank Institute of Technology

10.13:Centre for Development Dialogue

10.14:Women Empowerment Program

10.15:Financial Security

10.16:Access to Finance:

10.17:Training & Rehabilitation

11.0:CULTURE & SPORT

11.1:Bangladesh Sangskritic Kendra (Cultural Centre):

11.2:Sports, Art, Literature & Cultural Program

11.3:CSR in cricket world cup 2011

12.0:RESPONSIBILITY TOWARDS ENVIRONMENT

12.1:Industrialization and preservation of environment

12.2:Measures taken within the organisation

12.3:Measures taken within the customers

12.4:Measures taken with the community

13.0:Current News

14.0:Story of Palash-1

14.1:Story-2

15.0:CSR expenditure by banks

16.0:Awards & Achievements of IBBL

17.0: Bibliography

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 a 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 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 1.0:Introduction:

Islami Bank Bangladesh Ltd., which was incorporated on 14th March, 1983, went into operation on 30thMarch, 1983 and introduced a full package of banking services in August 1983, Islami Bank BangladeshLimited is considered to be first interest-bank in South East Asia.IBBL is a public limited company with limited liability under the companies Act, 1913.It is a joint venturemultinational bank with sixty four percent of equity being contributed by the foreign sources.

Capction1: Head-office building

Regardintshareholding structure of the bank, the local shareholders hold shares in theratio of thirty six to sixty four.In December, 1997 the number of its shareholders stood at6863,its shares are quoted in the two stockmarkets of the country namely Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE),Being in high demand the shares are presently sold at three time higher than the face value. Authorizedcapital of this bank is Tk. 500 million. At present IBBL has a paid-up capital of Taka 317.98 million andReserve Fund to Taka 930.17 million.The Bank is managed by 23-member Board of Directors elected by the shareholders, An Extensive committee consisting of 8 Directors and a Management Committee consisting of the top Executives of theBank also oversee the day-to-day function of the Bank.

A representative from the Shariah Council alsotake part in the above committee. Powers and functions are suitably distributed amongst these bodies. Thebank has also a 10 -member Shariah council consisting of Fuquah, Islamic Economists and a Lawyer. Thecouncil gives decision on Islamic issues, which are generally followed in the Bank. The Council conductsaudits the operation of Bank branches each year on selective basis and put forward report identify the deviations and suggestions for purification of the banking transactions. Besides these committees andCouncil, types of activities for improvement of the Banks overall position.

With 251 branches and 10,068 staffs, IBBL is the largest private banking network in Bangladesh.

1.1:History of modern Islamic banking:

The first modern experiment with Islamic banking was undertaken in Egypt under cover without projecting an Islamic imagefor fear of being seen as a manifestation of Islamic fundamentalism that was anathema to the political regime. The pioneering effort, led by Ahmad El Najjar, took the form of a savings bank based on profit-sharing in the Egyptian town of MitGhamr in 1963. This experiment lasted until 1967 (Ready 1981), by which time there were nine such banks in the country. arket.

1.2:Concepts in Islamic Banking:

Islamic banking refers to a system of banking or banking activity that is consistent with Islamic law ( Sharia ) principles and guided by Islamic economics . In particular, Islamic law prohibits usury , the collection and payment of interest , also commonly called riba in Islamic discourse. In addition, Islamic law prohibits investing in businesses that are considered unlawful, or haraam (such as businesses that sell alcohol or pork, or businesses that produce media such as gossip columns or pornography, which are contrary to Islamic values). In the late 20th century , a number of Islamic banks were created, to cater to this particular banking market.

1.3:Islamic laws on trading:

The Qur'an prohibits gambling (games of chance involving money). The hadith , in addition to prohibiting gambling (games of chance), also prohibits bayu al-gharar (trading in risk, where the Arabic word gharar is taken to mean "risk").The Hanafimadhab (legal school) in Islam defines gharar as "that whose consequences are hidden." The Shafi legal school defined gharar as "that whose nature and consequences are hidden" or "that which admits two possibilities, with the less desirable one being more likely." The Hanbali school defined it as "that whose consequences are unknown" or "that which is undeliverable, whether it exists or not." IbnHazm of the Zahiri school wrote " Gharar is where the buyer does not know what he bought, or the seller does not know what he sold. The modern scholar of Islam, Professor Mustafa Al-Zarqa, wrote that "Gharar is the sale of probable items whose existence or characteristics are not certain, due to the risky nature that makes the trade similar to gambling." There are a number of hadith who forbid trading in gharar , often giving specific examples of gharhar transactions (e.g., selling the birds in the sky or the fish in the water, the catch of the diver, an unborn calf in its mother's womb etc.). Jurists have sought many complete definitions of the term. They also came up with the concept of yasir (minor risk); a financial transaction with a minor risk is deemed to be halal (permissible) while trading in non-minor risk ( bayu al-ghasar ) is deemed to be haram . [5]

What gharar is, exactly, was never fully decided upon by the Muslim jurists. This was mainly due to the complication of having to decide what is and is not a minor risk. Derivatives instruments (such as stock options) have only become common relatively recently. Some Islamic banks do provide brokerage services for stock trading and perhaps even for derivatives trading.

1.4:Principles:

Islamic banking has the same purpose as conventional banking except that it operates in accordance with the rules of Shariah , known as Fiqh al-Muamalat (Islamic rules on transactions). The basic principle of Islamic banking is the sharing of profit and loss and the prohibition of riba (interest). Amongst the common Islamic concepts used in Islamic banking are:

#Profit sharing ( Mudharabah )

# safekeeping ( Wadiah )

# joint venture ( Musharakah )

#cost plus ( Murabahah )

# leasing ( Ijarah )

1.5:How it makes profit:

In an Islamic mortgage transaction, instead of loaning the buyer money to purchase the item, a bank might buy the item itself from the seller, and re-sell it to the buyer at a profit, while allowing the buyer to pay the bank in installments. However, the fact that it is profit cannot be made explicit and therefore there are no additional penalties for late payment. In order to protect itself against default, the bank asks for strict collateral. The goods or land is registered to the name of the buyer from the start of the transaction. This arrangement is called Murabaha . Another approach is IjarawaIqtina , which is similar to real-estate leasing . Islamic banks handle loans for vehicles in a similar way (selling the vehicle at a higher-than-market price to the debtor and then retaining ownership of the vehicle until the loan is paiThere are several other approaches used in business deals. Islamic banks lend their money to companies by issuing floating rate interest loans. The floating rate of interest is pegged to the company's individual rate of return. Thus the bank's profit on the loan is equal to a certain percentage of the company's profits. Once the principal amount of the loan is repaid, the profit-sharing arrangement is concluded. This practice is called Musharaka . Further, Mudaraba is venture capital funding of an entrepreneur who provides labor while financing is provided by the bank so that both profit and risk are shared. Such participatory arrangements between capital and labor reflect the Islamic view that the borrower must not bear all the risk/cost of a failure, resulting in a balanced distribution of income and not allowing lender to monopolize the economy.

And finally, Islamic banking is restricted to Islamically acceptable deals, which exclude those involving alcohol, pork, gambling, etc. Thus ethical investing is the only acceptable form of investment, and moral purchasing is encouraged.

Islamic banks have grown recently in the Muslim world but are a very small share of the global banking system. Micro-lending institutions founded by Muslims , such as Grameen Bank , use conventional lending practices, and are popular in some Muslim nations, but some do not consider it to be true Islamic banking.

Islamic banking should be synonymous with full-reserve banking , with banks achieving a 100% reserve ratio. However, in practice, this is rarely the case .

1.6:Islami Banking System in Bangladesh:

DHAKA the globally-booming Islamic finance is making strides and gaining popularity in Bangladesh, with experts predicting that the shari`ah-compliant industry will continue in steady steps to become the mainstream banking system in Muslim South Asian nation.

The future of the Islamic banking systems is so bright, the executive committee of Islami Bank Mominul Islam Patwary, Chairman of Bangladesh Limited, told IslamOnline.net.

The Islamic banking is seeing impressive growth in Bangladesh.Bangladesh entered the Islamic banking system only in 1983, with the establishment of Islami Bank Bangladesh.Since then, five more full-fledged private Islamic banks and 20 Islamic banking branches of conventional banks have been established.Patwary says that his bank is now one of the top performer banks in terms of business and profits among the 48 commercial banks operating in the country.

Islamic Bank Bangladesh Limited has gained first position in the all private banks in term of deposits, investment, export & import and remittance collection.According to the Bangladesh Bank (BB), the central bank of the country, the deposits of the Islamic banking systems are now 25 percent of all private banks deposits and its investments are 30 percent.Bahauddin Mohammad Yousuf, vice chairman of Al-Arafah Islamic Bank, has an explanation for Bangladeshs Islamic finance boom.He says that for a Muslim, whose religion prohibits earning or paying interests, Islamic banking makes it possible to operate interest-free business.People of this country are religious, Patwary, of the Islami Bank, agrees.Islam forbids Muslims from usury, receiving or paying interest on loans.Islamic banks and finance institutions cannot receive or provide funds for anything involving alcohol, gambling, pornography, tobacco, weapons or pork.Shari`ah-compliant financing deals resemble lease-to-own arrangements, layaway plans, joint purchase and sale agreements, or partnerships.Bangladesh is the worlds third largest Muslim majority country, with Muslims making up more than 80 percent of the nations 148 million population.

1.7:New Order of islami banking:

Bankers believe that the Islamic banking is set for even more progress, if a law governing Islamic Banking policies is introduced. If an Islamic banking Act is introduced, the Islamic banking systems will even further flourish, Patwary said.

Experts predict that with the rapid rise of Shari`ah-based systems, the industry will ultimately turn to be the `ah-based systems will be mainstream Banking and the conventional banks will be the minority systems in the OIC countries including Bangladesh within 2002,M AzizulHaque, a leading expert on Islamic banking in Bangladesh, told IOL. AzizulHaque, who is also chairman of the Shari`ah Council of Dhaka, believes that Bangladesh will follow the rest of the world to the Islamic banking sector. He explains that the growth rate of Islamic banking in the OIC countries for example is 15 to 20 percent while that of conventional banks is 10 to 15 percent. Islamic finance is one of the fastest growing sectors in the global financial industry.

In defiance of the credit crunch, the global Islamic finance market has grown about 15 percent in each of the past three years and is now worth about $700 billion worldwide. Currently, there are nearly 300 Islamic banks and financial institutions worldwide.

Its assets are predicted to grow to $1 trillion by 2013.AzizulHaque expects that higher growth rates in the next decade will force the global financial systems to Islamic banking. There is not any sort of apprehension regarding the success of Islamic banking, the renowned economic expert said. Capitalization could not solve the global economic problems. The world is looking for a new economic order. Islamic economic system will be that new economic order.2.0:Profile of ISlami bank Bangladesh limited

Head Office: Islami Bank Tower, 40, Dilkusha Commercial Area, Dhaka - 1000, Bangladesh.

Known As:IBBL

SWIFT Code: IBBLBDDHStock Code: ISLAMIBANKCategory: CommercialType

: PrivateOrigin

:LocalEstablishment: March, 13, 1983

Branches: 2512.1:Services: # Personal Banking-Deposite Scheme

Al-Wadeeah Current Account, Mudaraba Savings Account, Mudaraba Special Savings (Pension) Account, Mudaraba Hajj Savings Account, Mudaraba Savings Bond Scheme, Mudaraba Foreign Currency Deposit Scheme (Savings), MudarabaWaqf Cash Deposit Account, Mudaraba Monthly Profit Deposit Scheme, MudarabaMuhor Savings Deposit Scheme.

# International Banking

# Deposit & Credit Scheme

# SME Banking

# Foreign Currency A/C

# Rural Credit

# Micro Credit

# Industrial Financing

# Islami Bank Bond

2.2Developing EIBS System:

IBBL has developed its own integrated banking system namely as EIBS (electronic Integrated Banking System) with the following objectives:

To support True Islamic Banking System.

To develop in-house software which encourage local talents to design & develop, maintain enhance the banking system.

To give an opportunity to the young, energetic fresh graduates to design, develop and maintain a complete banking solution of International Standard.

2.3Major services of EIBS are:

Supports Sharia Based Banking

Supports all operations of General Banking

Full support to Investment operations

Foreign Exchange operation

Central MIS

Online Banking

IBBL Banking

ATM

SWIFT

SMS Banking 2.4:IBBL ATM Networks:

Caption: IBBL ATM booth

Islami Bank Bangladesh Limited now has its own ATM network with 48 booths. IBBL also has 85 shared ATM booths with ETN covering major cities and districts of the country. IBBL is on its way to expand their ATM network country wide. IBBL card holder can withdraw cash, pay BTTB, GrameenPhone, CityCell and Aktel bill and monthly installments of MSS, Hajj, Muhor and HDS schemes through ATM.

2.5:Aims and Objectives of IBBL:

To conduct interest-free banking.

To establish participatory banking instead of banking on debtor-creditor relationship.

To invest on profit and risk sharing basis.

To accept deposits on Mudaraba& Al-Wadeah basis.

To establish a welfare-oriented banking system.

To extend co-operation to the poor, the helpless and the low-income group for their economic upliftment.

To play a vital role in human development and employment generation.

To contribute towards balanced growth and development of the country through investment operations particularly in the less developed areas.

To contribute in achieving the ultimate goal of Islamic economic system.

2.6:IBBL Products:Banking Services, Retail Banking, Corporate Banking, Investment Banking, ATM ServicesIBBL Retail Banking Products

As a consumer bank Islami Bank Bangladesh Limited provide consumer loans, Islami deposit schemes, Accounts, ATM Card services, Locker & Other Banking Services.

2.7:RECENT DEVELOPMENTS:IBBL is continuously building its branch network, which expanded also with additional 20branches over the last one and half year. Recently the bank introduced Brokerage Houseoperation under the license of Dhaka Stock Exchange Ltd.

in its public service functions. In order to face the recent challenges in the banking sector under new capital adequacy accord, the bank formed a committee namely Basel- II Implementation Unit with senior executives of the bank headed by Managing Director.

A core team has been formed with four executives including one IT expert to prepare for Internal Rating Based (IRB) approach at the first instance after switch over from Standardized Approach for investment risk Introduction of first issue of Mudaraba. Perpetual Bond during FY 2007 amounting TK. 3,000 million is a milestone in the banking sector.

The bank increased its online branches to 97 from 74 and connected 87 branches to data center from previous 31 branches. In the year 2007, 44 branches brought under ATM network from 10 branches in its previous fiscal. However, the bank is yet to review its position of capital adequacy under parallel run.

2.8:IBBL's World Rating:

As per Bankers' Almanac (January 2001 edition) published by the Reed Business Information, Windsor Court, England, IBBL's world Rank is 1771 among 3000 banks selected by them. This position was 1902 among 4500 selected banks as on January 1999 edition. IBBL's country Rank is 5 among 39 banks as per ratings made by the above Almanac on the basis of IBBL's Financial Statements of the year 2001.

3.0:CSR:

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 ).

Because of their ethical and public interest dimensions, many of the desired social and environmental practices are compulsorily mandated by laws and regulations (e.g., safe and healthy work environment, equal opportunity and 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 up efficiency;

gaining new markets for products and services, in the communities/ social groups benefited by the CSR actions.

3.1:Corporate Social Responsibility(CSR) of IBBL:

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).

3.2:Objectives:

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, 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)

3.3:Target Area:

Initially the Scheme was started as a Pilot Scheme in the rural areas of 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.3.4:Target Group:

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.

3.5:Deposit and Investment of IBBL is for social welfare:

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 enter society regardless of caste, creed and any other denomination. Islamic bank maintains a huge portfolio of sustain able CSR activities in its own organization and towards the society and environment through its main stream banking activities as well as community investment. Islamic banks CSR in deposit and investment portfolio is really momentous of great appreciation.

4.0:RESPONSIBILITY TOWARDS SHAREHOLDERSIBBL has been discharging its responsibility to safeguard the interest of the shareholders in line with the objectives of the Bank by complying Shariah & law of the land strictly, building a strong & efficient management and enhancing shareholders value & financial performance.

4.1:Compliance:

IBBL has been operated as the best Shariah compliant Bank in the country. Shariah Advisory Board of the Bank has been contributing their best towards invention of the ways and means to overcome the problems being faced by the bank in complying shariah principles time to time and to introduce new Shariah products. The Bank is also well compliant with the laws and instructions of the regulatory authorities of the country.

Besides, the Bank has been paying huge amount of tax to the national exchequer every year. Last year, the Bank paid tax to the exchequer for an amount of Tk. 3,245.11 million and became the second highest corporate tax payer of the country.

4.2:Corporate governance:

The Bank is committed to ensure the highest standard of corporate governance and effective application of its principles as well as upholding the best banking practices as a part of discharging its responsibilities to safeguard the interest of shareholders.

a) The Board of Directors, Executive Committee and Audit Committee are functioning under their respective discretion. The Management Committee (MC) in the Head Office, formed with the Senior Executives headed by MD, takes day to day required decisions. Beside MC, there are various committees in the HO, formed with the executives, for different types of management.

b) Duties are segregated in various wings/divisions/departments in the Head Office as well as in the branches/other offices.

c) Discretionary power has been given to every tire of the management in a befitting manner for smooth functioning of the Bank.

d) IBBL has developed several manuals for its general banking, investment operations, foreign exchange & foreign trade and other operational and policy issues.

e) The Bank has very specific and transparent Human Resources Policy under which recruitment, promotion, development etc. of the employees are being governed.

4.3:Excellence in performance:

IBBL has been enjoying the leading position in the banking sector of the country since long. Performance of the bank at a glance is shown in the following table:

(fig. in million taka)

Particular20092010growth

No. of deposit Account4,591,4634,939,1138%

Deposit243,653291,34720%

No. of Investment Account455,840507,13811%

Investment239,000292,08422%

Operating Profit8,46311,43435%

Import161,230246,28153%

Export106,424148,42139%

Foreign Remittance194,716214,62910%

Shareholders equity20,105.5423,49417%

Return on Equity16.93%19.00%12%

Return on Assets1.34%1.47%9.70%

The Bank has consistently endeavoured to create and enhance shareholders value. Over the last five years the Bank has consistently grown its bottom line while improving key performace indicators such as ROE, ROA, EPS and NPA. This strong and consistent performance of the Bank has enhanced the confidence placed by its shareholders as demonstrated by the Banks share price movement significantly.

Particular20062007200820092010

No. of Shareholder20,96026,48833,68652,16458,923

No. of Share34,560,00038,016,00047,520,00061,776,00074131200

Book value per Share263236228271317

Earning per Share36.8430.0443.3045.9160.21

Gross Dividend25%25%30%30%35%

Share Price (closing at DSE)404.00537.00467.00591.00800.50

Price Earning Ratio10.9717.8810.7812.8713.29

IBBL won many awards for its good performance.

4.4:Relationship with the Shareholders:

Shareholders are communicated the comprehensive details about the peformance, financial results and important ativities of the Bank through Annual Report. Information regarding different activities and performance of the Bank is also availavle in the Banks website. Various announcements on price sensitive information and other discloseures are made through newspaper, website and media. Shareholders are also encouraged to evaluate Banks performance and to give their valuable suggestions in the AGMs.

Members of the Board of Diectors are actively involved with various programs of the Bank.

5.0:RESPONSIBILITY TOWARDS EMPLOYEES

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 continuous development of knowledge, competencies and attitude of the employees; comfortable and modern working environment as well as justified and competitive compensation packages for them.

5.1:Maintaining No Discremination:The recruitment process of the Bank strictly follows IBBL Recruitment Policy and maintains transperency in all stages to protect the right of the eligible candidates and the interest of the bank without discriminating gender, race or socio-economic background.

IBBL strictly maintains No Discremination among the employees in connection with their posting, promotion, reward, punishment etc. Every year a good number of eligible employees get promotion to the higher rank on the basis of merit.

5.2:In-house CSR of the IBBL:

The in house CSR is well maintained through indiscriminate dispensation; provisions of modern, healthy and safe work place; developing employees competence and skill; widening scope of learning imparting training, taking care of environment; encouraging employees aesthetic talent; industry-compatible wage structure etc.

5.3:Providing Modern, healthy & safe workplace:

Bank premises are taken with adequate space and interior decorations are made to keep the office environment healthy and work-friendly. Female employees are also provided with comfortable working environment along with other required facilities. Safe drinking water is supplied to the employees in the office premises. Fire fighting equipments are also available in all offices.

5.4:Developing & improving employees competencies & skills:To develop professional knowledge, skill and attitude of the employees, the bank has got its own training academy Islami Bank Training & Research Academy (IBTRA) where training courses are conducted round the year. Apart from regular training courses, Executive Development Program (EDP) are also conducted exclusively for the executives on different important issues. The employees are also sent to other institutions home and abroad for higher training. During the year 2010, a total of 8,767 employees were imparted training on different professional courses.

Sl.ProgramNo. of training courses No. of officials trained

1Training & Workshop conducted by IBTRA 2127,821

2Training in other institutions (home)166498

3Training in other institutions (abroad)2748

4Executive Development Program5400

Total4108, 767

5.5:Creating a learning & development environment:

IBBL has given highest importance in developing knowledge base of the employes and hence created a learning environment within the organization.

a. All the departments and branches are instructed to conduct discussions among the employees once in a week in the respective offices on different topics related to Islamic economics, banking and social responsibilities from a given yearly syllabus.

b. Employees are encouraged to complete Diploma in Islamic Banking from IBTRA and Diploma in Banking from Institute of Bankers Bangladesh by allocating points for both the diploma (5+5) in promotion criteria. Besides, each of the employees is given cash incentive of Tk. 5,000/- and Tk. 7,500/- for completing 1st and 2nd part of 02 (two) diplomas respectively. In the reporting year, 99 (ninety nine) & 67 (sixty seven) employees awarded with diploma 1st part & 2nd part respectively.

c. All the employees are trained up to get them use-to in modern technology like computer, e-mail, internet, fax, mobile banking, ATM card etc.

a. Every encouragement is given to develop employees aesthetic and sporting talents. IBBL Officers Welfare Association organizes annual sports and cultural competition in regional level culminating in national final. Last year, Essay Competition was also invited among the employees. Enthusiastic participation by the employees in the competitions resulted in the discovery of many latent talents in different events.

b. Apart from competitions, family get-together and Picnic of the employees are organised every year at regional basis in view to enhance team spirit and bonding relationship. Directors and senior executives remain present in the programs to encourage the employees. Last year, 20 picnics were organised in different parts of the country. The Bank provided subsidy to the Association for an amount of Tk. 6.00 million to organize picnics and sports & cultural competitions.

5.7:Remuneration and Benefits:

The Bank has developed a complete pay-scale for the employees, which is upgraded and adjusted with the prevailing market after every two/three years. Giving due attention to the lower level employees, the ratio of the pay between highest and lowest level in the pay-scale has been maintained only 13:1 (DMD:MCG).

a. Apart from regular pay packages, IBBL has got policies for its employees to make their life secured during the superannuation period. Under the policies, Contributory Provident Fund, Superannuation Fund and Gratuity Fund have been developed. During the year 2010, 12 employees retired from the Bank and they were provided with an amount of Tk. 15,532,487/-, Tk. 12,232,000/- & Tk. 24,265,600/- from the above Funds respectively.

b. To meet-up housing need and to ensure comfortable life, employees are provided with investment at a discounted rate against house building and purchasing household durables under Staff House Building Investment Scheme (SHBIS) and Staff Household Durable Scheme (SHDS) respectively. During the reporting year 277 & 409 employees were provided with investment facilities of Tk. 951.89 & Tk. 9.97 million under the schemes respectively.

c. The executives of the Bank are provided with car either from bank management or under Car Scheme for the Employees of the Bank.

5.8:Caring Employer:

The Bank, as a caring employer stands beside the employees at the events of sadness and happiness in their life.

a. In instances of critical illness of the employees and their families, financial assistances are extended from Benevolent Fund and Employees Welfare Fund. During the year 2010, an amount of Tk. 4.59 million has been provided to 41 employees from the funds.

b. Arrangements have been made with some medical centres/hospitals for 30% - 40% discount against medical diagnosis and check-up for the employees.c. Families of the deceased employees are given Tk. 30,000/- instantly after death for burial purpose. During the year 2010, total Tk. 210,000/- was spent in the purpose. Benefits from Superannuation Fund @ Tk. Tk.9.25 lac, Tk.13.25, Tk.18.50 lac & Tk.25.00 lac are given to the families of deceased Sub-staff, Asset. Officer, Officer and Executive respectively. Last year 9 employees died in harness and their families were given a total of Tk. 8,145,000/-.d. In instances of parmanent disability in harness, Sub-staff, Asstt. Officer, Officer & Executive are provided with Tk.7.75 lac, Tk.11.00 lac, Tk.15.50 lac & Tk.21.00 lac respectively.

e. The meritorious wards of the employees secured GPA 5 & 4 in SSC & HSC are encouraged with Cash Award every year. A total of Tk. 87,72,000/- was given to 1030 wards of the employees since inception of the program of which Tk. 18,77,000/- was given to 167 wards in the reporting year.

f. Sports and Cultural competitions are also conducted for the family members of the employees every year.

5.9:Industrial Relationship:The Bank adheres strictly to the ILO labor practices and standards as well as local labour laws and regulations. Employees are allowed to operate trade union activities in the Bank. In recognition of the need for industrial harmony the Bank has established continuous dialogue with the employees union and officers association.

6.0:RESPONSOBILITY TOWARDS CUSTOMERSCustomers are the core of Banks existence. To encourage people, from all economic categories for becoming banks customer, to ensure improved customer service, to help them run business efficiently, to encourage them in following Islamic principles in their business entities and to make them real partners of the Bank, the Bank takes various initiatives:

6.1:Financial Inclusion

a. The Bank extends opportunity for opening accounts to the people, regardless of their economic status, with a very nominal amount. One can open a savings account with Tk. 500/-, a current account with Tk. 1,000/- and a special savings scheme (pension scheme) with minimum monthly instalment of Tk. 100/- only. The rural poor are allowed to maintain savings account by depositing weekly instalment of Tk. 10/- only under Banks Rural Development Scheme (RDS). Moreover, this small savings are collected by the Bank officials from their door-steps every week. This policy creates a wider base of depositors for the Bank. Number of depositors of the Bank as on 31-12-2010 was 4.93 million which was highest among the private sector banks.

b. The Bank has got several welfare investment schemes for the poor and fixed income earner group. The rural poor and the small businessmen are provided with investment facilities without security under Rural Development Scheme (RDS) and Small Business Investment Scheme (SBIS) respectively. The fixed income earner group are provided with investment to meet-up their housing need and for household durables under Housing Investment Scheme (HIS)/Real Estate Investment Program (REIP) and Household Durable Scheme (HDS) respectively. Unemployed qualified doctors are encouraged to go for self-employment and to serve in the rural and semi-urban areas by providing investment facilities only against their original certificates under Investment Scheme for the Doctors (ISD). The Bank takes special care to the women entrepreneurs by a separate scheme for them namely Women Entrepreneurs Investment Scheme (WEIS). The bank has got other investment schemes namely Micro Industrial Investment Scheme (MIIS) and Agriculture Implements Investment Scheme (AIIS) for development in the micro and rural economy. Investment under the above schemes as on 31-12-2010 are shown below:

SchemesRDSSBISMIISAIISHBISREIPHDSISDWEISTotal

No. of existing client445,35026,604

313213966,38320,36048566500,059

Outstanding as on 31-12-10 (in million Taka)5,110.051,703.44

47.44127.15418.9210,154.95961.6415.27204.2318,743.09

c. SME is considered as the engine of growth in any economy which generates a huge employment relative to big industries. Therefore, SME is essentially required to be flourished in the country like Bangladesh. Keeping this in view, the Bank, from its inception, has been encouraging investment in SMEs. To expedite SME investment, the Bank has opened 30 SME & Agriculture Branches especially in the rural areas of the country. Area-wise Banks SME investment as on December 31, 2010 is shown below:

Area/SectorNo. of AccountAmount in million taka

Industrial concern6,49243,900

Trading concern68,88333,952

Service Concern205 604

Total75,58078,456

d. IBBL has been playing very important role in channelling foreign remittances from the senders abroad to door-step of the receivers in the remotest areas of the country within quickest period. Through its wide-ranged network of 251 branches and utilising mobile phone technology, IBBL serves a huge number of rural families by channelling a total amount of foreign remittance of Tk. 214,629.00 million last year which was 25.60% of total inward foreign remittance of the country.

e. The rural poor are encouraged to make savings of at least Tk. 10 per week and allowed tomaintain Mudarabah Savings Account (RDS) at IBBL. It also allows opening Mudarabah Special Savings Scheme (pension scheme) with a minimum monthly installment of only Tk. 100.f. Small Business Investment Scheme (SBIS) has been taken up for self-employment of educatedyouths and to provide investment facilities to small businessmen and entrepreneurs without collateral security.g. Rural Development Scheme (RDS), to create income generating and productive self-employment opportunities through extension of security-free micro investment facilities in agriculture and off-farm activities. The poor beneficiaries are also provided with health and education support under profit-free quart scheme.h. Micro Industries Investment Scheme (MIIS) taken to encourage establishment of microindustries in different areas of the country by the potential entrepreneurs.6.2:Screening customers

a.IBBL reviews the compliance of prospective customers business with the islamic laws and the principles of csr. Impact of customers business on economy, society and environment are also reviewed. B.The bank tries to ensure that the marketing campaigns & documents of banks customers are ethically balanced promoting business without an exclusive focus on profits that may induce inappropriate behaviour/consumption and unsuitable products inconsistent with islamic, social and cultural norms.C.The bank adopted various screening process to prevent third parties from using the bank to engage in criminal activities such as money laundering.6.3:Responsible Customer Services

a. IBBL screens all contract forms by the Shariah Supervisory Board to avoid imposition of onerous terms and conditions to the clients, especially whom are in a weaker bargaining position relative to the Bank.

b.Each of the customers are offered due process and responsible terms & conditions of investment, taking into consideration his ability to repay and the effect on his financial and overall well-being, through assessment of his present disposable income capacity.

c.Every branch of the Bank keeps a Complaint Box to facilitate the customers, lodging complaints against services of the Bank or against particular employee(s). A Customers Complaint Cell has been formed with the Managing Director as convenor and the Wings & HRD heads as members. All the complaints since received duly verified and resolved meticulously.

d.Regular meetings are held with the selected customers in different level of Management to discuss on their business issues and to suggest them for further improvement.

i. The beneficiaries of Rural Development Scheme (RDS) are gathered centre wise every week to conduct transactions and to aware on different social, economical and environmental issues. Every branch conducts Centre Leaders Development Program (CLDP) once in a year. During the year 2010 a total of 937,485 centre meetings and 97 CLDP were organised.

j. The clients of RDS, those do not have access to safe drinking water and/or sanitary latrine, are provided with Quard (cost-free loan) for installation of hand tube-well and water sealed latrine under RDS Support Program. Last year an amount of Tk. 2.19 million is provided to 998 RDS clients for the purpose.

k. As the largest private commercial bank having about 05 (five) million customers, IBBL is very much conscious regarding improvement in its customer services. To ensure quality and accurate service to the customers, IBBL bring full automation in its operations and by this time, established online connectivity with all of its branches throughout the country. The customers of the Bank has by now been extended online ATM services through 48 own ATMs and 109 shared ATMs. The Bank has already started Web Portal, SMS Banking and Spot Cash services.

6.4:Relationship with the Customers

IBBL considers the customers as its partners and develops relationship through its employees as well as by organising various programs in different occasions:

a.The Bank observes Service week/fortnight every year. During the period, several customer-gatherings are organized in the branches which bring a cluster of customers face to face with the Bank Management. These meetings make the Management experienced with customers views, aspirations and suggestions for improvement of Banks services. Bank employees also pay visit to the customers establishments. This program strengthens the bond of relationship between the Bank and Customers. During the year of review, the program was observed 30 days from 11/04/2010 to 10/05/2010 and a total of 233 gatherings were organised involving 59,000 customers.

b.All the branches organize Iftar Mahfil during the month of Ramadan every year accommodating highest possible number of clients. Last year, 231 branches organised the program and the Head Office organised one for the corporate customers. Apart from the above, the Bank organizes clients gatherings time to time upon different requirements.

c.Every year the Bank distributes New Years souvenir - calendar, diary, card etc. among the customers. In addition, greeting cards on various occasions are also exchanged with them.

7.0:RESPONSIBILITY TOWARDS SUPPLIERSSuppliers play a fundamental role in the Banks micro environment. As an essential component of overall business function, suppliers regarded as inclusive partners. The Bank develops its relationships with suppliers organizations on the basis of value and trust.

7.1:Ethical Procurement Practices

The Bank holds ethical conduct as a priority in building suppliers relations. By engaging the employees involved with procurement functions, the Bank strives to maintain the unimpeachable standard of integrity in all business relationship. The Bank is of the view that the ethical behaviour must be promoted and supported by appropriate systems and procedures. Bank expects the highest ethical standard from its suppliers also. In view of the above the Bank follows the following process:

a.The Bank has a purchase committee that delegates the responsibility for procurements across the number of people instead of one or a few ensuring that the concerned employees and the Bank are trusted and respected.

b.All procurements follow a transparent tender procedure; price negotiations are conducted by designated teams and committees. Suppliers information is treated with confidentiality and fair dealing.

c.Timely payment to the suppliers is ensured without any harassment or unethical dealings. Last year, 99% of the bills/invoices against supply/services rendered during the year are settled.

7.2:Sustainable Procurement Policy

IBBL recognises its responsibility to carry out procurement activities in an environmentally and socially responsible manner.

a.In accordance with Banks Corporate Procurement Strategy, it strives to incorporate environmental and social considerations into the procurement process.

b.The Bank recognises its responsibility to encourage suppliers to minimize negative environmental and social effects associated with the products and services they provide. The suppliers are also encouraged to maintain ethical standard throughout the process of procurement.

c.The Bank encourages departments and branch offices to review their consumption of goods and services in order to reduce usage, recycle and reuse in a bid to operate according to sustainable business principles.

d.Under the sustainable procurement policy, processes are implemented to ensure an equitable share of wealth to a large number of suppliers through enhancement of supplier base by inviting fresh enlistment after every two years. Existing suppliers are also re-enlisted to evaluate their strengths and weaknesses as well as to categorise suppliers base on their historical performance.

e.The Bank follows a concerted policy of non-discrimination against small scale suppliers, whilst 58% of the suppliers portfolio can be categorised as micro level entrepreneurs.

f.Under sustainable policy, the Bank introduced outsourcing of time intensive activities such as packing of stationary and complementary items etc.

8.0:RESPONSIBILITY TOWARDS COMMUNITYThe Bank is very much conscious regarding its responsibility towards the communities within which it operates.

The most important contribution of the Bank in this regard is the creation of huge employment opportunities in its financed projects as well as in its own organization. Present investment of the Bank in the industrial sector is Tk. 13,762.80 millions which is about 50% of the total investment of the Bank. At present about 10,000 employees are working in IBBL and millions in its financed projects.

Apart from this, it takes several programs in view to improve the lives of the people especially to the less fortunate segments of the community. Banks strategy towards discharging community responsibility focuses on: (1) Health, (2) Education, (3) Sports, arts & culture, (4) Women empowerment and (5) Humanitarian Assistance.

8.1:Health and Medicare Programs :

Health and Medicare facilities are the basic and fundamental rights of each individual but most of the people of our country are still deprived of it. 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.

Such Assistance is also extended to the members of Rural Development Scheme (RDS) of IBBL. Under Health and Medicare Programs preventive measures have also been taken. Special steps have been taken for construction of sanitary latrines and installation of tube wells in the villages covered under to whom Islami Bank Bangladesh Ltd. is providing finance for income generation activities.8.2:Islami Bank Hospital

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 like Medicine, Surgery, Gynae, Pediatric, E.N.T. Urology, Neuro-surgery, Skin, Orthopedic etc. are harnessed in these hospitals. Standard diagnostic, medical and surgical equipment are in used in these hospitals. The Foundation plans to establish Hospitals at each Divisional Headquarters of the country.

8.3:Community Hospital

Besides establishing Hospitals at the Divisional Headquarters, IBF has a plan to assist local initiatives in setting up Hospitals at District level. Establishment of Four such Hospitals is planned during 1999.

8.4:Organizing Health CampsA 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. Keeping in view of the issue, IBF organises a number of Mobile Eye Camps in different parts of the country every year at a very nominal or low cost depending upon patients financial position. Last year, 11 Eye Camps were organised providing services to 660 patients.

Circumcision (Sunnat-e-Khatna) is an important sunnah for the male Muslims and also considered essential for human health in modern science. IBF has, therefore, organised Circumcision Camps every year for the boys from poor families. In these camps, circumcisions are done free of cost in addition each of boys is given one lungi. Last year, circumcision of 2850 poor boys was done.8.5:Assistance to other initiatives

IBF has its regular program of assisting a number of Charitable Dispensaries, being operated by local initiatives mainly in the rural areas. Every year about two lac patients are provided treatment facilities from these dispensaries. Last year, 131 dispensaries were provided with a total amount of Tk. 4,169,950/-. Apart from this, IBBL extended donations of Tk. 1.50 million and Tk. 1.00 million to Salvation for the Deserving (SFD) and Bangladesh National Society for the Blind (BNSB), two organizations dedicated for rehabilitation of the disables and blinds.

IBBL also extends financial assistances to the poor and incapable patients for their costly treatments directly from Bank and through IBF on regular basis. During the year 2010, an amount of Tk. 1.25 million has been provided directly from Bank and Tk. 60.36 million through IBF to a total of 721,160 poor patients.

Healthcare:

stakeholders perceptionAbstract:

Background: In the Bangladesh society, a few organizations are contributing through their activities on Corporate Social Responsibility (CSR). It is a general belief that the contribution of Islami Bank Bangladeshi Limited in CSR is highest among the financial institutions. It is an observation that IBBLs CSR contribution in the healthcare sector is very significant. Objective: This paper explores the stockholders perception of CSR contribution in the healthcare sector by Islami Bank Bangladesh Limited (IBBL). Method:

Data were collected through a survey. Likert scale was used to explore the significance of stakeholders perception.

Results: This paper reports the findings of a qualitative study on perceptions of CSR by IBBL in the healthcare sector of a heterogeneous group of stakeholders. The findings reveal the perception of stakeholders towards the social contribution of Islami Bank Central Hospital (IBCH), an Institution for CSR in healthcare by IBBL. The stakeholders believe that this hospital is significantly contributing to the society through its support in the healthcare sector. It is also found that the hospital is proactive in providing healthcare support to the community through its highly standard human resources, world class medical equipment, outstanding management team and superb customer care support.

Conclusion: This exploratory study makes a contribution to the relatively new body of work on CSR in Bangladesh, especially in the healthcare sector by IBBL and hopefullywill encourage further research on the topic. This study will also contribute to improve thegovernance, social, ethical, and environmental conditions of the healthcare sector.

CSR by Islami Bank in healthcare stakeholders perception

While a huge work has emerged during the past three decades on corporate social responsibility (CSR), the focus has been generally given on CSR in developed countries. Literature on CSR is Bangladesh is limited. In this paper, hear it has been explored, the perception of the stakeholders of CSR by the Islami Bank Bangladeshi Limited (IBBL) during 2009 through pilot study. For the purpose of this paper, CSR in developing countries has been defined, borrowing from Visser at el as follows:

The formal and informal ways in which business makes a contribution to improving the governance, social, ethical, labour and environmental conditions of the developing countries in which they operate, while remaining sensitive to prevailing religious, historical and cultural contexts.

A number of businesses in Bangladesh are contributing in Healthcare CSR, but the CSR activities performed by IBBL in the healthcare sector seem to be the most significant. IBBL is addressing the social concerns in the healthcare sector targeting the poor and middle income people of Bangladesh.

The first part of the paper provides the research context through a brief profile of Bangladesh; the second part provides a brief literature review to determine what is known about CSR in Bangladesh, and the third part discusses the main findings of the study carried out in 2009 to explore the perceptions of a divers group of stakeholders of Bangladeshi citizens in relation to CSR activities of IBBL.

Methodology

This pilot study was carried out in Dhaka, Bangladesh during 2009 on the stakeholders perceptions of CSR by IBBL in healthcare sector. The study had a qualitative design, which enabled the researchers to obtain richer data, and a deeper understanding of the stakeholders perception through an investigation. In this study, non-random sampling method was used, which means that the researchers deliberately sought out a given population (in this case, the authors identified the stakeholders through convenience sampling). The professional networks of one of the researchers were used to recruit the participants from a CSR workshop held at a local private university in Dhaka, Bangladesh.

The survey was participated by 37 (21 male and 16 female) stakeholders (associated with IBBLs CSR in the healthcare sector); 20 of them were direct beneficiaries; 3 social scientists; 4 journalists; 4 employees (of Islami Bank hospital); 2 environmentalists and 4 community members. It should be taken into account that there could be a significant level of self-selection in these samples, as it is likely that the respondents attended the said workshop because of their interest in CSR.

The survey was divided in two parts: the first contained three questions designed to explore the participants understanding of the notion of CSR by IBBL in healthcare sector. It contained the following questions:

1. What is your overall perception of Corporate Social Responsibility (CSR) by IBBL in the Healthcare sector?

2. What are the areas, IBBL can improve its CSR in healthcare?

3. What are the strengths of CSR activities by IBBL you noticed so far?

The second part of the survey used a Likert Scale, ranging from Strongly Agree to Strongly Disagree, to identify numerical patterns in the respondents reactions to the following statements:

1. IBBL is playing a very significant role in CSR through its contribution in the healthcare.

2. It is just a public relations exercise to make IBBL look good.

3. CSR by IBBL goes against the banks business interests because it reduces the companys profit margins.

4. CSR by IBBL in the healthcare is really addressing the social concerns.

The purpose of the second part of the survey was to obtain further information on the respondents perceptions of CSR by IBBL in the healthcare sector and associated principles and concepts, to supplement the information provided in the first part.

The section below explores the stakeholders perception of CSR on IBBLs contribution and its impact in the society.

Perception of CSR by IBBL

There were a variety of views regarding the CSR activities by IBBL in the healthcare sector and most of them are very positive, which indicate IBBLs commitment to the society. A few examples are given below:

a) I am personally benefited by the low cost [and good quality] treatment at Islami Bank Central Hospital (IBCH), which otherwise, I would not be able to afford. I broke my leg last year and I am fully cured now. I appreciate this kind of CSR activities by IBBL (R1, male, beneficiary).

b) My daughter got operated at the Islamic Bank Central Hospital; she is in good health now. They got a caring team of healthcare professionals. I am grateful for having the opportunity for good medical treatment provided by IBBL (R5, female, beneficiary).

c) CSR activities of IBBL are noticeable in the Bangladesh media. However, the bank can concentrate on more media presence as it is doing enormous CSR activities in the healthcare sector (this would encourage other organizations to do CSR). (R12, male, journalist).

The above views against the 1st question reveal that the stakeholders found IBCH services are low cost (very suitable for poor and middleclass families) and they also care their patients a lot. This is a real example of CSR activities that significantly contributing to the society by IBCH.

What are the areas, IBBL can improve its

CSR in healthcare?

a) I had my daughter born at the Islami Bank Central Hospital. In addition to their great customer support, they provided my daughter a New Born Baby Kit. I think they are already doing (CSR) excellent in the healthcare sector (R10, female, beneficiary).

b) I had a surgery at Islami Bank Central Hospital and found the doctors and other staffs are really supportive. But I had an attendant with me to communicate with the hospital staff to update me about the progress of the treatment. I would expect, they develop a system so that every patient may stay in the hospital with out the support of an attendant, which became a culture in Bangladesh (R17, male, beneficiary).

c) I am fully aware about the waste management system of Islami Bank Hospital. They are effectively disposing the clinical wastes (like, body fluid, drainage bags, vials, culture dishes, gauze, bandages, organs, tissues) as well as laboratory waste (like, slides, needles, blades, syringes; radioactive waste such as Iodine-125, iodine -131). This accountability by Islami Bank Central Hospital clearly shows that they are in compliance with international norms and practices which conforms the pattern of CSR (R15, male, environmentalist).

The stakeholders, in response to the 2nd question, express that the CSR activities by IBCH is of very high quality and there is little to improve in their services at this point.

What are the strengths of CSR activities

by IBBL you noticed so far?

a) I got medical check-ups at different hospitals in last two decades. I found that the doctors and nurses of Islami Bank Central Hospital are of very high quality, pieces equipment are of international standard; the infrastructure is adequate. This is a real example of healthcare and real example of CSR (R19, male, beneficiary).

b) Islami Bank Central Hospital is situated in my locality. It is a great support and blessings for the community and the first place, where we rush for the emergency medical assistance. We always found the emergency medical team very supportive and they really exhibit socially responsible behavior (R25, male, community representative).

c) As a patient of diabetics, I take my regular treatments and check-ups from the Islami Bank Central Hospital. They response at the quickest possible time,whenever I arrive their. The cleanliness is superb; security is very strong; monitoring is timely (R27, female, beneficiary).

The above views responding the 3rd question exhibit that the Islami Bank Central Hospital (IBCH) is exhibiting socially responsible behaviour, contributing the community and always ready to provide world class service to the community.

The CSR by IBBL is supported by Garriga and Mele23 conceptual framework which has four major theories. The CSR by the IBCH conform the ethical and the integrative perspectives of Garriga and Melees theory.

Likert Scale responses

The Likert scale responses also revealed very positive attitudes to IBBLs role in CSR through its contribution in the healthcare. All respondents agreed (100%) that IBBLs contribution to CSR is very effective in healthcare support to the poor and middleclass families (29 strongly agreed and 8 agreed). An overwhelming majority of respondents (35/37; 95%) do not believe that IBBL is doing CSR as a public relation tool.

Consistent with the findings discussed in the previous section, most respondents (31/37; 84%) disagreed with the instrumentally based statement that CSR goes against IBBLs business interests because it reduces profit margins. Only 4 participants agreed with this assertion, and 2 ticked the Indifferent option.

With regard to the statement that CSR by IBBL in the healthcare is really addressing the social concerns, almost all the respondents (36/37; 97%) agreed with it, and only one of them ticked Indifferent.

This appears to reveal a good faith by the respondents towards IBBLs social concerns in healthcare.

In conclusion, the above responses exhibit generally variable attitudes and receptiveness of the stakeholders towards the CSR by IBBL in the healthcare sector. However, the participants who attended the survey, all of them attended the CSR workshop at a private university in Bangladesh; therefore, they would be more likely to have positive attitudes towards CSR (and of the Central Hospital of Islami Bank, as it earned a reputation for its CSR in last few years).

Bangladesh Journal of Medical Science Vol.09 No.4 Oct10

9.0:Educational Programs

Education is the backbone of a nation. Awareness building, skill training, access to information-all depends on education. But it is regrettable that the rate of literacy is still very low in Bangladesh. Most of the children are deprived of the light of education due to poverty, lack of sufficient educational institutions, non-availability of text books and equipments etc. In a ward, the unfavorable socio-economic conditions are responsible for this chaotic situation.

The Foundation has, therefore, taken up the following Programs to improve the country's educational scenario:

Support to Model ForqaniaMaktab

Scholarship/lump grant for poor and Meritorious Students

Financial support to Educational Institutions

9.1:Islami Bank Medical College, Rajshahi 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 city of 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.

9.2:Islami Bank International School and College

As Dhaka, the capital of Bangladesh, is turning to be a Mega City, a large number of English Medium Schools are creeping up which follows curriculum not conforming fully to the need of the country. As an attempt to combine modern education (which are secular) with religious education for a total development of the children, Islami Bank Foundation has established an English medium Model School and College in Dhaka. Establishment of a Bangla medium school affordable by lower and middle class economic strata of the society is also being envisaged.

9.3:Health EducationIBF established 01 (one) Medical College, 01 (one) Health Technology Institute and 01 (one) Nursing Training Institute in Rajshahi. From these three institutions 5-year MBBS, 4-year diploma in Health Technology and 3-year diploma in Nursing have been awarded respectively. These institutions are running with a total of 770 students employing 106 doctors/teachers and 111 other staffs. IBF also organises Midwifery Training Program for the traditional birth attendants working especially in the rural or semi-urban areas to develop their expertise in handling normal delivery safe and healthy manner in view to reduce mortality rate of the mothers and the babies. During the last year, 13 training programs have so far been organized accommodating 310 traditional birth attendants.

9.4:Technical EducationIBF has been operating 06 (six) Technical Institutes- two in Dhaka, one each in Bogra, Sylhet, Khulna and Chittagong. Meantime, the institutions have got affiliation of Bangladesh Technical Education Board for awarding 4-year diploma courses on various technical subjects like computer, electrical, mechanical etc. All the institutions are running satisfactorily with a total number of students about 1861 employing 62 teachers and 22 other staffs.

9.5:General EducationIBF has been operating 01 (one) English medium school, 01 (one) Bangla medium school and 01 (one) girls madrasha in Dhaka with a total number of 2521 students employing 106 teachers and 49 staffs.

9.6:Assistance to other Educational InstitutionsUnder the Education Program, IBF extends regular financial assistance to 571 mosque based Forqania Maqtabs (elementary religious school) being operated by local initiatives in different districts of the country. About 27,000 children are being taught in those maqtabs. Last year, an amount of Tk. 71,37,500.00 was spent against the said institutions. The Bank encourages people for acquiring knowledge and conducting researches on different important issues. Different research organizations and individuals were provided with financial assistance for research purposes. To develop learning habit among the people, IBF operates one Mobile Library in Dhaka City. The Bank has also donated 06 (six) computers valuing Tk. 2.50 lac to two colleges situated in rural areas of Jessore and Rajshahi last year.

9.7:Scholarship Program

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, the bank has been providing scholarship to the very poor students secured GPA 5 in SSC & HSC examinations from the year 2010 under its direct Scholarship 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.

9.8:Education facility in abroad International-Islamic-university, Malaysia Salford-university-Manchester,UK

Salford University in Manchester, UK and International-Islamic-university, Malaysia launch degree in Islamic banking and finance. Islami Bank has a coda in this university. Islami bank decides to give scholarship every year to some meritorious students.

9.9:Academic Award & Reception Program

IBBL gives award to the meritorious students for outstanding results in SSC, HSC and MBA (Banking & Finance) examinations. During the year of review, the students secured Golden A+ in SSC and HSC examinations numbering 9000 and 1340 respectively, were awarded by the Bank by organising Reception Programs in different districts. The MBA (Banking & Finance) students secured 1st, 2nd & 3rd position in final examination (2008 & 2009) from different universities, numbering 25, were given cash award by the Bank.

10.0:Humanitarian Help Programs

These programme 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 programme extends assistance to orphanages, provide fund for the marriage of poor girls, assist indebted people, help distressed wayfarers etc.

10.1:Relief and Rehabilitation Programs

Participation in relief and rehabilitation activities in natural disasters and in emergency forms an important programme of Islami Bank Foundation. During calamities like flood, tornado, tidal surge etc. the Foundation mobilises its own people as well as donates to the relief fund opened at the government level. The Foundation also tries its best to extend hands of assistance and co-operation to the Muslim brethren elsewhere in the world.

10.2:Islami Bank Physiotherapy and Disabled Rehabilitation Centre

In Bangladesh there are a great number of unfortunate disabled persons who have no other means to maintain themselves without resorting to beggary. The burden of the society might be lessened and these people can be helped to become self-reliant through imparting special skills. Keeping this in view, Islami Bank Foundation has decided to rehabilitate these unfortunate disabled persons through establishing a centre named "Islami Bank Physiotherapy and Disabled Rehabilitation Centre" This Centre while making temporary arrangement for food and shelter for the disabled, will arrange for health check up, physiotherapy and occupational therapy and look for job placement through internship in various factories and trading houses.

10.3:Mobilisation of Charitable Fund

To encourage the people involving in humanitarian activities, IBBL devised a deposit product namely Cash Waqf Deposit Scheme. Under the Scheme, one can deposit a minimum amount of Tk. 50,000/- as waqf by opening a mudaraba savings account in his name giving authority to the Bank to spend the profit amount so derives from the waqf deposit time to time in particular humanitarian purpose(s). Balance of Cash Waqf Deposit of the Bank as on 31-12-2010 was Tk. 203.00 million. Apart from the above, the Bank approaches the people to contribute Zakat, Sadaqah etc. to Islami Bank Foundation to facilitate the operations of its various humanitarian and welfare programs.

10.4:Relief & Rehabilitation

IBBL always comes forward to assist the victims of natural or social disasters. During the year 2010, the Bank contributed an amount of Tk. 2.50 million to the Prime Ministers Relief Fund for the victims of Nimtoly Fire Tragedy. Besides, Tk. 1.92 million was paid to the families of 4 martyard Army officials killed in BDR mutiny as their annual family expenditure. Consequent upon the tornado, tidal surge and river erosion during the period between September-October 2010 in the coastal areas, the Bank extended relief work directly in the effected areas under the districts Noakhali and Coxs Bazar for an amount of Tk. 3.00 million. Islami Bank Foundation (IBF) established 07 (seven) cyclone centre cum community places in the name of Islami Bank Service Centre in the river-side and coastal areas. People take shelter in these Service Centres during cyclone and heavy storm. IBF has been operating Fael Khair Agro-Inputs Program (FKAIP), a profit/interest free quard program for the SIDR victims in the southern part of Bangladesh since June 2008 under an agency arrangemnt with Islamic Development Bank (IDB) for an amount of US$ 9.00 million equivalent to BDT 616.00 million (approx.). The FKAIP has been operated in 23 upazilas under 12 districts. About 52,000 victim families have been brought under the program and are provided with quard without any service charge or profit. Operating costs for the program are being borne from IBFs own Fund.

10.5:CSR activities for the general people

Responsibility towards society is observed through a wide portfolio of projects like racing out banking to the poor and fixed income group, labor industry in project finance for greater job creation, enhancing the page of micro credit, community health programs and perpetual institution like creation and maintenance of hospitals, clinics and health camps, imparting technical and moral talents of education, scholarship programs, woman empowerment, disaster relief and sustainable, pragmatic and dignified charities etc. Moreover, IBBL took different social responsibility activities. It took responsibility to give taka 1.92 crore to the four martyrs army familyin Pilkhana BDR carnage, contributed to different disaster stricken people including Sidre, Aila and Nimtolli blaze.

10.6:Rehabilitation of baggers

Islami Bank Foundation launched a program to help beggars. Islami Bank Foundation tries to reach thousands of beggars in Bangladesh and show how it can help the poorest of the poor. The program aims to improve living standards for more than 2,500 beggars across the country and help them to find ways to lift themselves out of poverty.

10.7:Assistance to other organizations and individuals:

The Bank provides financial assistance to needy and heavily indebted individuals to meet up their various emergency family needs directly as well as through IBF.

10.8:Service Centre

To save the people of coastal and river belt from natural disaster, erosion etc. a special project has been taken in the name and style of "Service Centre". Under this programmepucca structure constructed in coastal areas, river belts and off-shore islands would be used for integrated social development of the people as well as provide safe shelters during natural calamities. Two such Service centres (in Noakhali and Manikgonj) have already been established.

10.9:Dawah Programs

One important objective of Islami Bank Foundation is to disseminate the true knowledge and teachings of Islam. The Foundation has, therefore, taken up various schemes to enlighten the common people as well as the elite and make them familiar with the concept of Islam. Islamic research magazines and other Islamic Literatures are being distributed among the Academicians, Journalists, Justices, Lawyers, High Officials, Bankers, Literatures and important Libraries and Institutions of the country. The Foundation is also working among the prisoners for their moral reforms.

10.10:Income Generating ProgramsAccess to required finance and other related inputs may help many to become self employed. In absence of such opportunity the unemployed youths entangle themselves in various anti-social activities. Islami Bank Foundation has, therefore, taken up the following Self-employment projects:

Rickshaw

Sewing

Poultry Keeping

Rural Health Work

Milch Cow/Goat rearing

Small Trade

10.11:Monoram: Islami Bank Crafts & FashionThe project has been taken up as a sales outlet of home-made garments, handicrafts and other items produced by the distressed women. The main objective of the project is to create conducive and healthy atmosphere in which women can contribute to the family income by working within the limits of Shariah. The other objective of this project is to develop designs of women-wear, which will conform, to the principles of decency and modesty as laid down by Islam and at same time compare well with the modern-day-fashions.

10.12:Islami Bank Institute of TechnologyThe large number of unemployed youth of the country may be turned as assets through taking up Human Resource Development (HRD) Programme.

The youths with skills in various sectors of technology may become self-employed in the land and can also get employment opportunities abroad. Islami Bank Foundation has, therefore, established 3 Technical Institutes, two in Dhaka and another in Bogra, which are rendering training facilities in Computer, Secretarial Science, Driving, Electrical, Refrigeration and Air Conditioning, Radio & TV, Tailoring and Garments etc.

10.13:Centre for Development Dialogue Alongside with the governmental efforts at National level and multilateral and bi-lateral institutions at the international level, Non Govt. Organizations (NGOs) in different parts of the world especially in the developing countries are playing increasing role in experimentation with Development models. Most of the organizations unfortunately, try with development techniques from a standpoint, which often turn antagonistic to the belief and social norms of the people. The renowned foreign and national NGOs have their established training center(s) where they train their own people and also rent out the facilities to others. Islami Bank Foundation has decided to establish a training center of its own named Centre for Development Dialogue" which will create opportunity for imparting training facilities for its own staff members as well as the staff members of other development organizations..

10.14:Women Empowerment Program

IBBL is very much conscious about the prevailing conditions of the women in our society. Keeping this in view it takes various programs for empowering the women like awareness building, training, financing etc. :

10.15:Financial SecurityMohor is an important component of financial security of a married woman in Muslim society. But, now a day it is seriously neglected and, in maximum cases, it remains unpaid. To encourage the husbands making easy payment of the liability, the Bank introduced a deposit scheme namely Mudaraba Mohor Deposit Scheme under which husbands open accounts in the name of respective wife and deposit monthly instalments till attainment of the desired amount. Balance of Mohor Deposit Scheme as on 31-12-2010 is 221.78 million. Apart from this, rural poor women are organised under Rural Development Scheme and encouraged to make savings at least Tk. 10/- per week with the Bank. This women need not to go to the Bank for depositing the small amount rather it is collected by the Bank officials from their door-steps. This tiny deposit becomes a good equity for the poor women after few years. Present balance of the deposit of 445,350 RDS members is Tk. 1774.78 million.

10.16:Access to Finance:The Bank devices an investment Scheme exclusively for the women namely Investment Scheme for the Women Entrepreneurs. Under the Scheme, female entrepreneurs are encouraged to take investment in soft terms and to engage with business enterprises efficiently. Up to 31 December 2010, a total of 566 women entrepreneurs take investment from the Bank keeping the outstanding at Tk. 204.23 million.

Number of female members under banks Rural Development Scheme (RDS) is 445,350 which is 85% of total RDS members. The members are aware and trained up on various economical, social and environmental issues by the bank officials in the centre meetings conducted weekly basis regularly. They are also provided with investment facilities without security. Outstanding investment of RDS is Tk. 5,110.05 million.

10.17:Training & RehabilitationIslami bank Foundation has established a rehabilitation centre for the distressed women namely Islami Bank Distressed Women Rehabilitation Centre. Distressed and destitute women are given shelter, education, training and employment opportunities there. Since inception of the project, about 318 distressed women have been rehabilitated. A fast food shop is established by the skilled women to subsidise the centre. IBF facilitates marketing of the goods made by the distressed women through establishing a sales outlet Monorom for ready-made garments and handicrafts.

11.0:CULTURE & SPORT

11.1:Bangladesh Sangskritic Kendra (Cultural Centre):Culture is very