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NAME OF TERM PAPER CSR ACTIVITES: PRACTISE IN BANGLADESH

TABLE OF CONTENTS

CHAPTER 1 .............................................................................................................................2 INTRODUCTION .........................................................................................................................2 1.1 Introduction .............................................................................................................2 1.2 Ways to follow CSR ................................................................................................2 1.3 Catagories of CSR ...................................................................................................4 CHAPTER 2 .............................................................................................................................5 DIMENSION OF CSR ...................................................................................................................5 2.1 Dimension ................................................................................................................5 CHAPTER 3 .............................................................................................................................6 ARGUMENTS FOR AND AGAINST CSR .......................................................................................6 3.1 Arguments in favor of CSR .....................................................................................6 3.2 Arguments against CSR...........................................................................................7 3.3 Debates over CSR ....................................................................................................9 CHAPTER 4 ...........................................................................................................................10 COMPANY WHO IMPLEMENTED CSR IN BANGLADESH ...........................................................10 4.1 CSR in Grameenphone ..........................................................................................10 4.1.1 Proverty Allevietion .......................................................................................10 4.1.2 Healthcare .......................................................................................................10 4.1.3 Empowerment.................................................................................................10 4.1.4 Education ........................................................................................................10 CHAPTER 5 ...........................................................................................................................11 CONCLUSION ...........................................................................................................................11 5.1 Conclusion .............................................................................................................11

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Chapter 1

Introduction 1.1 Introduction

Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable — to itself, its stakeholders, and the public. Consumers consider more than quality goods and services when choosing a brand. Many are prioritizing corporate social responsibility (CSR), and holding corporations accountable for effecting social change with their business beliefs, practices and profits. In fact, some will even turn their back on their favorite companies if they believe they're not taking a stand for societal and environmental issues. "Corporate responsibility is simply a way for companies to take responsibility for the social and environmental impacts of their business operations," said Jen Boynton, vice president of member engagement at 3BL Media. To illustrate how critical CSR has become, a 2017 study by Cone Communications found that more than 60 percent of Americans hope businesses will drive social and environmental change in the absence of government regulation. Most consumers surveyed (87 percent) said they would purchase a product because a company supported an issue they care about. More importantly, a whopping 76 percent will refuse to buy from a company if they learn it supports an issue contrary to their own beliefs. "CSR creates a filter for the actions of a company," said Wendy Burk, CEO of Cadence Travel. "It keeps organizations accountable and ethical." But consumers aren't the only ones who are drawn to businesses that give back. Susan Cooney, head of global diversity, equity and inclusion at Symantec, said that a company's CSR strategy is a big factor in where today's top talent chooses to work. "The next generation of employees is seeking out employers that are focused on the triple bottom line: people, planet and revenue," said Cooney. "Coming out of the recession, corporate revenue has been getting stronger. Companies are encouraged to put that increased profit into programs that give back."

1.2 Ways to follow for CSR:

There are several ways to enroll with corporate social responsivities. These depend on following factors: 2

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Develop a vision

Socially responsible behavior in business starts with an awareness of who you are and what you believe as an organization. Once one can answer the questions of personal core beliefs, business strategies and model of success, then one can begin searching for programs and initiatives that fit well with one’s organization's mission statement. Remember: whatever CSR initiatives one adopt have to match up with one’s company's culture and core values. If they don't, there will be a disconnect, and one’s customers and employees will notice.



Considering perfection:

Once one has decided to evaluate socially responsible initiatives and programs for one’s organization, take a moment to consider how well the programs fit with one’s current products and processes. When looking for socially responsible programs, strive to promote one’s business as well as business practices. If, for example, one’s business wants to promote a concern for the environment, create a highly visible connection between what one says and how one act. In this ever-more-transparent age, any hypocrisy, or even a perception of hypocrisy, can seriously damage one’s CSR efforts. Companies that launch a plant-a-tree program one week to great fanfare, only to make the news the following week in a toxic-waste scandal, clearly don't get what CSR is all about.

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Launch strong and monitor intensely

Once you have designed one’s CSR program you'll want to create awareness and implement initiatives effectively. Big banners, clever advertising, and slogans that create a stir can get one’s message out, but monitoring the program's success, and how well it meshes with established business practices, are what really count. In fact, assessing how well one can monitor the program long-term may help to decide whether it's right for you at this time.

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Considering customer needs and preference:

Evaluate CSR programs in the context of meeting your customers' needs, because one needs them to be on board. The good news is that most people support ethical business practices. Customers want to buy from and support businesses that are doing good in the world. However,

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keep one’s customers' needs in mind when promoting or adopting costly programs, or programs that don't fit one’s with customers' needs, values, and philosophies.

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Use CSR to enhance talent recruitment

By practicing or implementing programs that promote corporate social responsibility, one’s organization will attract enthusiastic, educated, and talented employees who value our initiatives and philosophies. When one’s organization is populated with people who embrace and involve themselves with one’s CSR program, and who truly believe in its values, it is easier to seamlessly integrate, maintain, and promote such programs into day-to-day operations. This can create a virtuous circle, as success begets success, powered by people who are committed to and aligned behind the vision.

1.3 Categories of CSR:

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Environmental Based

Environmental based initiatives taken by a firm can involve reducing pollution, greenhouse gas emissions, and the sustainable use of natural resources.

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Human rights based:

Human rights based initiatives taken by a firm can involve providing fair labor practices (i.e., equal pay for equal work), fair trade practices, and disapproving child labor.

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Charity Based:

Charity based initiatives taken by a firm can involve funding educational programs, supporting health initiatives, donating to worthy causes, and supporting community beautification projects.

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Community Based:

Community based initiatives taken by a firm involves improving the firm’s business operation while participating in sustainable practices. For example, using a new manufacturing process to minimize wastage. 4

Chapter 2

Dimension of CSR 2.1 Dimensions

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Economic Responsibilities

A business exists to make a profit for shareholders. If it fails to do so, it likely won’t be able to pay its employees, taxes and other obligations. A corporate social responsibility program (CSR program) cannot be implemented until a business is profitable.



Legal Responsibilities

Following the law is the foundation of corporate responsibility. A company cannot benefit society if it does not adhere to labor and tax laws or applicable industry regulations.

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Ethical Responsibilities

Once a company is profitable and meets its legal responsibilities, it can move up the ladder to ethical responsibilities, which might include paying higher wages, offering employees better benefits, avoiding trade with unscrupulous companies or providing jobs to those who would otherwise have difficulty finding work.

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Philanthropic Responsibilities

As a company meets its economic, legal and ethical responsibilities, it can consider taking on philanthropic responsibilities. Corporate philanthropy ranges in size and scope, and can include everything from donating time to a local charity to building a children’s hospital.

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Chapter 3

Arguments for and against CSR 3.1 Arguments in favor of CSR:

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Protect the interests of stakeholders:

Labor force is united into unions which demand protection of their rights from business enterprises. To get the support of workers, it has become necessary for organizations to discharge responsibility towards their employees. Caveat emptor, no more holds true. Consumer today is the kingpin around whom all marketing activities revolve. Consumer does not buy what is offered to him. He buys what he wants. Firms that fail to satisfy consumer needs will close down sooner or later. Besides, there are consumer redressed cells to protect consumers against anti-consumer activities. Consumer sovereignty has, thus, forced firms to assume social responsiveness towards them. Firms that assume social responsibilities may suffer losses in the short-run but fulfilling social obligations is beneficial for long-run survival of the firms. The short-term costs are, therefore, investments for long-run profitability.

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Long-run survival:

Business organizations are powerful institutions of the society. Their acceptance by the society will be denied if they ignore social problems. To avoid self-destruction in the long-run, business enterprises assume social responsibility.

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Self-enlightenment:

With increase in the level of education and understanding of businesses that they are the creations of society, they are motivated to work for the cause of social good. Managers create public expectations by voluntarily setting and following standards of moral and social responsibility. They ensure paying taxes to the Government, dividends to shareholders, fair wages to workers, quality goods to consumers and so on. Rather than legislative interference being the cause of social responsibility, firms assume social responsibility on their own.

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Avoids government regulation: 6

Non-conformance to social norms may attract legislative restrictions. Government directly influences the organizations through regulations that dictate what they should do and what not. Various agencies monitor business activities. For example, Central Pollution Control Board takes care of issues related to environmental pollution, Securities and Exchange Board of India considers issues related to investor protection, Employees State Insurance Corporation promotes issues related to employees’ health etc. Organizations that violate these regulations are levied fines and penalties. To avoid such interventions, organizations have risen to the cause of social concerns.

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Resources:

Business organizations have enormous resources which can be partly used for solving social problems. Businesses are the creation of society and must work in the best interest of society, both economically and socially.

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Professionalization:

Management is moving towards professionalism which is contributing to social orientation of business. Increasing professionalism is causing managers to have formal management education and qualifications. Managers specialize in planning, organizing, leading and controlling through their knowledge and subscribe to the code of ethics established by a recognized body. The ethics of profession bind managers to social values and growing concern for society. Thus, there is increasing awareness of social responsibility. To grow in the environment of dynamism and challenge, business concern does not decide whether or not to discharge social responsibilities but decides how much social responsibility to discharge. A good business anticipates developments and acts in accordance with the currently conceived social responsibilities to achieve the future targets.

3.2 Arguments against CSR: Corporate social responsibility is limited on the following grounds:



Business is an economic activity:

It is argued by the opponents of social responsibility that basic function of a business enterprise is to look into economic viability of its operations. It is for the Government to look after 7

interests of the society. The prime responsibility of assuming social responsibility should, therefore, be of the Government and not of the business enterprises.

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Quantification of social benefits:

What measures social responsibility and to what extent should a business enterprise be engaged in it, what amount of resources should be committed to the social values, whose interest should hold priority over others and numerous other questions are open to subjective considerations, which make social responsibility a difficult task to be assumed.

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Cost-benefit analysis:

Any social-benefit program where initial costs exceed the benefits may not be taken up by enterprises even in the short-run. Lack of skill and competence: Professionally qualified managers may not have the aptitude to solve the social problems.



Transfer of social costs:

Costs related to social program are adjusted by the business concerns in the following ways:

(a) High prices: The costs are passed to consumers by increasing prices of goods and services. (b) Low wages: If managers maintain the level of prices, the social costs may be reflected in reduction of wages. (c) Low profits: If wages are stabilized, profits would be reduced, which will lower dividends to the shareholders. Low profits will reduce managers’ desire to further engage in corporate social responsibility

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Sub-optimal utilization of resources:

If scarce resources are utilized for social goals, this would violate the very purpose of existence of an organization.

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3.3 Debate over CSR: After considering the arguments in favor and against the concept of CSR, some points are still left unanswered. These are:



Operational definition of CSR:

The traditional view on CSR provided no information on business concerns about social values. The modern approach also provides no clear guidelines to managers. Business executives follow their own values and interests about social expectations. Actual meaning of CSR is, however, difficult to determine.



No view of competitive corporate environment:

Every business operates in the larger business system. It cannot come out of that system and transformation of society within the existing parameters of business system seems to be illusory. Business power is not unified and, therefore, even if they wish, they cannot fully meet the needs of the society. Redirecting resources towards needs of the society can perhaps be possible if government rewrites rules under which business corporations will operate.

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Limited ability:

The proponents of CSR assume that business units have unlimited ability to fulfill social desires. However, it is not so. Business firms have limited ability to respond to social changes. Social actions will increase the costs and prices, which will place these firms at a competitive disadvantage in relation to firms who are not socially responsive.

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Lack of uniformity in business policies:

Solving social problems is not feasible in competitive business environment unless all firms follow the same policy. Government can intermediate and make all competitors pursue the same policy on social problems

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Moral responsibility:

Business firms feel that they have economic responsibility to produce goods and services. Their economic responsibilities justify their reason for existence. 9

Chapter 4

Company who implanted CSR in Bangladesh At Grameenphone, they live by the saying “Development is a journey, not a destination.” Their work is not just about ensuring connectivity; it is about connecting with people and building a relationship based on trust with our subscribers, business partners, employees, shareholders as well as the wider community.

4.1 CSR at Grameenphone: 4.1.1 Poverty alleviation: 

Village Phone (Every freedom counts)

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Community Information Center (Every opportunity counts)

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CellBazar (Every enterprise counts)

4.1.2 Healthcare: 

Free Eye Camps (Every sight counts)

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Fight against HIV/AIDS (Every voice counts)

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Cancer Management for the Poor (Every fight counts)

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NID Awareness Campaign (Every drop counts)

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Blood Bank at Rafatullah Community Hospital (Every smile counts)

4.1.3 Empowerment: 

Partnership with Special Olympics Bangladesh (Every win counts)

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Skill Development Center (Every hand counts)

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Rehabilitation of Acid Victims (Every confidence counts)

4.1.4 Education: 

Scholarship Program (Every dream counts)

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True Liberation War Stories (Every inspiration counts)

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Education Center cum Cyclone Shelter (Every help counts)

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Chapter 5

Conclusion 5.1 ...