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Social Responsibilities of Human Resource Manager in Bangladesh

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A Study
On
Social Responsibilities of Human Resource
Manager in Bangladesh

Prepared For:

Md. Ataur Rahman


Faculty Member of Business Administration

Prepared By:

Mir Md. Farhadur Reza 091600029


Md. Amir Hamza 091600024
Rafaza Sultana 083600035
Course Title: Human Resource Management
Course Code: HRM: 517

Date of Submission: January 8, 2010

Eastern University
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January 8, 2010
Md. Ataur Rahman
Faculty of Business Administration
Eastern University
Dhanmondi, Dhaka.

Dear Sir

The Report is on “Social Responsibilities of Human Resource Manager in Bangladesh”, is


done as a part of Human Resource Management course. We are grateful to you for giving
us the opportunity to undergo such an experience to study in different practical aspects of
Social Responsibilities of Human Resource Manager in Bangladesh. While writing this
report, we have tried to pursue the instructions, which you had assigned.

We sincerely hope that this report meets your approval and its appraisal would
demonstrate our ability to prepare a formal report. We would be glad to furnish you with
clarifications, if required.

Sincerely yours

__________________ ____________________
Rafaza Sultana Md. Amir Hamza
083600035 091600024

___________________
Mir Md. Farhadur Reza
091600029

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Table of Contents
Topics Page No.
Chapter-1:
1.0 History of the Organization ……………………………………………….. 01
1.1 Objectives of the Organization ……………………………………. 02
1.2 Functions of the Organization …………………………………….. 03
1.3 Organ gram of the Organization …………………………………… 04
1.4 Present / Existing Program ………………………………………… 04
1.5 Future Program …………………………………………………….. 06
Chapter-2:
2.0 Research Methodology …………………………………………………….. 07
2.1 Objectives of the Study ……………………………………………. 07
2.2 Collection of Data ………………………………………………….. 07
2.2.1 Primary Data ……………………………………………... 07
2.2.2 Secondary Data …………………………………………... 07
2.3 Data Analysis ………………………………………………………. 07
2.4 Limitations of the Study ……………………………………………. 08
Chapter-3:
3.0 Social Responsibilities of Human Resource Manager in Bangladesh ……… 08
3.0.1 Definition of Social Responsibility ………………………………. 09
3.0.2 Objectives of Social Responsibility ………………………………. 11
3.0.3 Importance of Social Responsibility ……………………………… 12
3.0.4 Functions of Social Responsibility ……………………………….. 17
3.0.5 Factors affecting Social Responsibility …………………………… 18
3.0.6 Forces affecting Social Responsibility ……………………………. 19
3.0.7 Model affecting Social Responsibility ……………………………. 20
3.0.8 Arguments for Social Responsibility ……………………………… 21
3.0.9 Arguments against Social Responsibility …………………………. 22
3.1.0 Types of Social Responsibility ……………………………………. 23
3.1.0.1 Willful / Innovated Social Responsibility ……………….. 23
3.1.0.2 Usual Social Responsibility ……………………………… 23

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3.1.1 Role of Top Management for Discharging Social Responsibility …. 24
3.1.2 Role of Trade Union Leader for Discharging Social Responsibility .. 24
3.1.3 Role of Employees for Discharging Social Responsibility …………. 26
3.1.4 Role of Government for Discharging Social Responsibility ……….. 26
3.1.5 Motivation for Social Responsibility ………………………………. 27
3.1.6 Training for Social Responsibility …………………………………. 27
3.1.7 Benefits of Social Responsibility …………………………………... 29
Chapter-4:
4.0 Conclusion and Recommendations ………………………………………… 31
4.1 Conclusion …………………………………………………………. 31
4.2 Recommendations …………………………………………………. 32
4.3 References …………………………………………………………. 33

Appendix
Questionnaire ……………………………………………………………. 34

(Chapter-1):
1.0 History of the Organization
Energypac Engineering Limited is an ISO 9001: 2000 & 14001: 2004 certified leading
manufacturer of Electro mechanical goods in Bangladesh. Energypac produces quality
products by ensuring modern design and international testing facilities.
Energypac is the largest Power Engineering Company in Bangladesh. Energypac, today, is
Bangladesh's largest private sector entrepreneur in power engineering equipments &

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extensively engaged in designing, manufacturing and marketing high technology electrical
products and services related to power generation, transmission, distribution as well as
executing turnkey projects. We are operating our business in this field for the last 25 years
and now we are the largest and strongest manufacturer in this field. We provide a full
range of support including regular advance product information and shared promotional
material, quality products, safety and reliability. We feel an extra commitment to
providing quality care & our prices are very much competitive.
Since 1982, Energypac Engineering Limited provided professional engineering and
management services to a wide variety of satisfied clients. During this time, Energypac
has earned a reputation for stability and longevity.
With multiple office locations and diversely qualified staff, Energypac Engineering
Limited can accommodate multiple project commitments and offer a broad range of
experience and expertise. As a progressive business, Energypac Engineering Limited is
able to pass on to its clients such benefits as rapid response time and a daily preoccupation
with the delivery of high quality products and services.
Energypac Power Generation Ltd. was founded in the year 1995 and today it has
established itself as a major supplier of standby and base load generators, low voltage
electrical accessories, Busbar systems and luminaries and fixtures including energy saving
lamps in a commitment to conserve energy. The company aims to provide reliable, safe,
and environmental friendly power to the industrial, commercial, and residential facilities
of Bangladesh and has indeed, succeeded in significantly contributing to the country’s
power engineering, management, generation and distribution system.
CIPP, one of the core businesses of Power Gen, has earned the company a total of
162MW gas engine power plant projects on turnkey basis. A total of 173.31MW of our
Diesel generators within the range of 30Kw and 1400Kkw are in trouble free operation
nationwide.
Our recently formed Oil & Gas Division in association with world reputed Companies
like Parker Drilling Company, Messina Incorporated, Emme Gas etc. , aims to provide
service and support to Oil & Gas Exploration, Production, Transmission and Distribution
sector of Bangladesh including CNG refueling station etc. Energypac Power Generation

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Ltd has taken up another recent project of importing and marketing China’s largest selling
brand, JAC automobiles.
EPGL has experienced spectacular growth over these past 12 years .It has now nearly 200
highly motivated employees determined to bring about the various technological
innovations and their implementations and thus help the country in quality goods and
services. Our Quality products, competent manpower, countrywide operation have earned
us an ever-increasing popularity among our valued customers and clients.

1.1 Objectives of the Organization

Their Objective is to become the country leader for Power Solutions and establish
themselves as the largest and most lucrative service providers in the global market.
Energypac Power Gen Ltd. has acknowledged the responsibility to eradicate the deficit in
country’s power generation system and to improve the quality of the lives of our
employees and the communities we serve. The company aims to achieve this mission not
only through best quality products but also through excellence in its service.

Energypac is a very well known name in the electrical power generation and distribution
equipment market in Bangladesh. Since 1982 Energy Pac has already placed as number
one choice for its products and service to the customers countrywide. Besides serving our
existing customers in Bangladesh, We have extended our range of products and services
to the largest range of products and services to the largest range power market in
Government or private owned utility enterprises and customers at home and abroad.

Our vision is to be leading electro-mechanical company in southeast Asia and put a solid
footing in the export market by virtue of our continual development process, our
defecation to earn satisfaction of customers and our commitment to serve quality products
and services.

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1.2 Functions of the Organization

Since its inception two decades ago, Energypac has grown exponentially. We founded by
a team of capable, experienced and competent personnel and also we have established an
epitome of excellence in a tiny span of time. We work with a diverse set of industries and
economic sectors and perform around the clock to meet our client requirements. Now we
are ready to provide more diverse products and services to our customers through our
different subsidiaries and concerns.

 Energypac Engineering Ltd.


 Energypac Power Generation Ltd.
 Energypac Electronics Ltd.
 Energypac Agro Ltd.
 Tecadvantage Ltd.
 Energypac Seafoods Ltd.
 Energypac Fashions Ltd.

1.3 Organ gram of the Organization

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1.4 Present / Existing Program

FEW ACHIEVEMENTS OF ENERGYPAC


UTILITY : UNDER PGCB & BPDB
BARAPUKURIA SUB-STATION
33/11 KV
RURAL TYPE SUB-STATION
BARAPUKURIA 33 KV SWITCHING STATION
GREATER RAJSHAHI :
ALAIPUR SUB-STATION
33/11 KV 10/13.33MVA
HORISHPUR SUB-STATION
33/11 KV 10/13.33MVA

RAHIM STEEL MILLS SUB-STATION


132/33/11 KV 20/25 MVA 10/13.33 MVA

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Summit Uttaranchal Power Company Limited :
Ullapara – 11/33 KV, 12.5/15 MVA Sub-Station for 11 MW Power Plant.
Maona, Gazipur – 11/33 KV, 20/25 MVA Sub-Station for 33 MW Power Plant.
Summit Purbanchal Power Company Limited :
Rupgonj- 11/33 KV, 20/25 MVA Sub-Station for 33 MW power plant
Jangalia- 11/33 KV, 20/25 MVA Sub-Station for 33 MW Power Plant.
Doreen Power house & Technology Ltd :
Mahipal, Feni- 11/33 KV, 12.5/15 MVA S/S
Doreen Power Generation Systems Ltd :
Feni – 11/33 KV, 25/30 MVA S/S for 22 MW Power Plant
Narsingdi - 11/33 KV, 25/30 MVA S/S for 22 MW Power Plant
Tangail - 11/33 KV, 25/30 MVA S/S for 22 MW Power Plant
Desh Cambridge Kumargaon Power Co. Ltd :
Kumargaon, Sylhet – 11/33 KV, 12.5/15 MVA S/S for 10 MW Power Plant
Under DESCO :
Bashundhara East West Properties Ltd. – 11 KV Switching Station
ECPVL :
Hobigonj – 11/33 KV, 16/20 MVA S/S for 11 MW Power Plant
Prima Energy Ltd :
Bogra – 11/33 KV, 25/30 MVA S/S for 22.52 MW Power Plant
United Group/Malancha Holdings Ltd :
DEPZ – 11/33 KV, 16 MVA S/S for 40 MW Power Plant
CEPZ - 11/33 KV, 16 MVA S/S for 40 MW Power Plant
Regent Power Ltd :
Barabkunda, Chittagong- 11/33 KV, 28/34 MVA S/S for 22 MW Power Plant.

1.5 Future Program


ON GOING PROJECTS
* T.K. Group
132/20KV,20/25MVA Sub-station

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* GPH ISPAT LTD
33/11KV,16/20MVA Sub-station
KHULNA ZONE- 33/11KV,2*10/13.33MVA
PATHERBAZAR(REN.)
GOLLAMARI (NEW)
SHIROMNI (EXTN. & REN.)
MIRERDANGA (EXTN. & REN)
CHANDANIMAHAL (EXTN. & REN.)
BARISAL ZONE:-33/11KV,2*10/13.33MVA
DABDABIA (NEW)
RUPATALI (EXTN. & REN.)
PALASHPUR (EXTN. & REN.)
KUSTIA ZONE:-33/11KV,2*10/13.33MVA
HOUSING (EXTN. & REN.)
MAZAMPUR (EXTN. & REN.)
FARIDPUR ZONE:-33/11KV,2*10/13.33MVA
HARUKANDI (NEW)
KAMARPUR (EXTN. & REN.)
GOALCHAMOT (EXTN. & REN.)
JESSORE ZONE:-33/11KV,2*10/13.33MVA
BASEPARA (NEW)
NEW TOWN (EXTN. & REN.)
KHAIRTALA (EXTN. & REN.)

(Chapter-2):
2.0 Research Methodology
2.1 Objectives of the Study
The main objective of the study is to identify the Social Responsibilities of Human
Resource Manager in Bangladesh. To identify what are the social activities that is done by

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the Human Resource manager in Bangladesh. There are so many companies in
Bangladesh who are doing some activity for the Social Responsibility. Energypac Power
Generation is one of them. In this report we tried our best to find out those
Responsibilities of a Human Resource Manager.

2.2 Collection of Data


We had collect out data mainly from two sources like from Primary Source and Secondary
sources. Like:

2.3 Primary Data


We have discussed with the Human Resource Manager of Energypac about their Social
Responsibility. Those data we measured as a primary data for this report. We gathered
some information’s after having a verbal discussion.

2.4 Secondary Data


We have taken the help of their website of Energypac Power Generation Ltd to collect
data and relevant information about Social Responsibilities of their company. Those data
is measured as Secondary data source of this report.

2.5 Data Analysis


After collecting data from those above two relevant sources, we also analyze those data to
prepare this report. All the information was not related with Social Responsibility. From
those data we only consider those data that is related with the Social responsibility and
other related information required to prepare this report.

2.4 Limitations of the Study


There was some limitation to prepare this report. As the topics of this report are much
more related with the top management activity and Human resource activity so it was a bit
difficult to collect the data from the top management. They don’t spare much time to give
data to prepare this report. But we tried our level best to prepare this report.

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(Chapter-3):

3.0 Social Responsibilities of Human Resource Manager in Bangladesh

CORPORATE SAFETY COMMITMENT POLICY:


Energypac’s most valuable resource is our people and importance our employee’s health
and safety and caring for environment. Energypac commitment is to company with all
occupational health, safety and environmental laws and develop best feasible operating
procedure. Everyone’s evolvement is necessary for us to best serve our customers, our
People and our environment. Energypac will continue its effort to make sure that each
employee understand the safety policy and we will provide necessary training in safe,
work practice and to provide the resources, equipment and support necessary to achieve
its goal.

ENVIRONMENT, HEALTH & SAFETY (EH&S) POLICY :


Energypac Engineering Ltd is committed to protect the natural environment and provide
clean, safe and healthy facilities and work practices. This commitment includes that:

Compliance
We will comply with applicable local legal requirements, Energypac Engineering Ltd,
customers’ requirements related to significant aspects & risks associated with our
activities and will implement programs and procedures to assure compliance.

Health Protection, Health Promotion, Risk Reduction, Prevention, and Resource


Management
We will employ management systems to look for ways to minimize risk and protect our
employees and the communities in which we operate by employing clean technology,
including safe technologies and safe operating procedures, as well as being prepared for
emergencies. We will ensure the participation of all employees in EH&S issues and
provide appropriate EH&S training and educate employees to be safety and
environmentally responsible on the job. We will strive to minimize releases to the air,

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land, or water through use of cleaner technologies and the safer use of chemicals. We will
minimize the amount and toxicity of waste generated and will ensure the safe treatment
and disposal of waste. We will manage scarce resources, such as water, energy and forests
in an environmentally sensitive manner.
Communication
We will communicate our commitment to EH&S quality to our employees, vendors,
customers and community. We will solicit their input in meeting our EH&S goals.
Continuous Improvement
We will continuously seek opportunities to improve our adherence to these principles, and
will periodically report progress to our stakeholders.

3.0.1 Definition of Social Responsibility

Many definitions abound on Social Responsibility. Any responsibility we have,


particularly towards members of the society with whom we interact or towards the society
in general, are called your social responsibility. The definition of Social Responsibility by
the World Business Council for Sustainable Development offers an acceptable definition.
They state that "corporate social responsibility is the continuing commitment by business
to behave ethically and contribute to economic development while improving the quality
of life of the workforce and their families as well as of the local community and society at
large." Others have defined Social Responsibility as being the integration of business
values and strategies with values, where interests of all stakeholders (people or entity
directly or indirectly connected to the business itself) are reflected in companies policies
and actions. Philanthropic `community development goals' and business objectives were
for many years seen as separate goals, however, satisfying similar objectives.
In recent years, the impact of business on the society has become a crucial issue. Business
corporations are considered accountable to society for their actions. Now it is said that
businesses are accountable not only to the shareholders but also to a wide range of
stakeholders – including business partners, employees, customers, suppliers and the
overall community. This kind of social view gave birth to the concept of Corporate Social
Responsibility. Business deals in a society. It has to procure its raw materials, labor and

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other inputs from the society and with the help of all these, it will produce the finished
products and sell those to the people in the society. Business cannot work independently.
Like an individual, it also has to live in an environment surrounded by socio-cultural,
economic, technological, competitive, legal and political forces. In order to survive, it has
to adjust itself within these forces. As a result, just like any other social units, it has to live
like a member of a community or a citizen of a country. It has to abide by several rules
and ethical considerations so that it does not do anything that is harmful for the society.
As a body that deals with the society and utilizes the people or other resources of the
society, it has some duties and responsibilities to the society also. In order to perform their
task in the society, businesses must act as the ‘socially responsible citizens’.
What should be the responsibilities of a firm was a major issue of debate among the
academicians over a long period of time. Friedman (1970) argued that there is only one
social responsibility of business and that is to use resources and engage in activities
designed to increase its profits so long as it stays within the rules of the game, which is to
say, engages in open and free competition without deception or fraud. But Carroll (1979)
did not support this view in total. Carroll’s view extended the responsibility of the
business beyond only economic responsibility.

According to Carroll, the managers of business organizations have four responsibilities


and these are economic, legal, ethical and, discretionary (table 1).

Table 1: Carroll’s four responsibilities of DESCRIPTION


business RESPONSIBILITY
Economic (must do) To produce goods and services of
value to the society so that the firm
can repay its creditors and
shareholders.
Legal (Have to do) Government in laws that
management is expected to obey.
Ethical (should do) To follow the generally held beliefs

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about behavior in a society.
Discretionary (might do) Purely voluntary obligations a
corporation assumes. Examples are
philanthropic contributions, training
the hard core unemployed, and
providing day care centers.

3.0.2 Objectives of Social Responsibility

Emphasizing the alignment of corporate social responsibility (CSR) with business


strategy, this program will enable you to integrate social responsibility throughout your
firm in ways that benefit both society and your business. You will learn how to develop an
overarching CSR strategy suited to the unique requirements of your organization—one
that addresses the social, economic, and environmental effects of doing business. As you
work to enhance your current strategy or build a new direction for your firm, you will
enhance your ability to set priorities, measure results, and communicate the value of these
efforts throughout the organization. Specifically, you will improve your ability to:

Create competitive advantage through CSR


Assess risks and opportunities before making capital investments or other business
decisions Align CSR strategies with organizational goals and capabilities Evaluate current
initiatives and consolidate efforts around key objectives Present the business case for CSR
initiatives Implement CSR at all levels of the company Understand how CSR directly
impacts current and future regulatory practices Foster successful interaction with key
internal and external stakeholders as well as governments and nongovernmental
organizations (NGOs)

3.0.3 Importance of Social Responsibility

Corporate Social Responsibility Bangladesh


CSR concepts and practices in Bangladesh have a long history of philanthropic activities
from time immemorial. These philanthropic activities included donations to different

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charitable organizations, poor people and religious institutions. Till now, most of the
businesses in Bangladesh are family owned and first generation businesses. They are
involved in community development work in the form of charity without having any
definite policy regarding the expenses or any concrete motive regarding financial gains in
many instances. Moreover, most of the SMEs fall under the informal sector having low
management structure and resources to address the social and environmental issues. These
limitations drive the top management of local companies to think only about the profit
maximization rather than doing business considering the triple bottom line: profit, planet
and people (CSR definition of Lotus Holdings).
The discussions on CSR practices in Bangladesh in its modern global terms, are relatively
new, but not so for the concept itself. Because, being a part of the global market, it is
difficult to ignore CSR standard specifically in the export sector. In general, it is true that
in Bangladesh, the status of labor rights practices, environmental management and
transparency in corporate governance are not satisfactory, largely due to poor enforcement
of existing laws and inadequate pressure from civil society and interest groups like
Consumer Forums. Globally, as CSR practices are gradually being integrated into
international business practices and hence is becoming one of the determining factors for
market accesses, it is becoming equally instrumental for local acceptability. A focus on
CSR in Bangladesh would be useful, not only for improving corporate governance, labor
rights, work place safety, fair treatment of workers, community development and
environment management, but also for industrialization and ensuring global market
access.
Since, CSR entails working with stakeholders it is important to work from within and
diagnose the stakeholders; concerns so that CSR is truly embedded in the companies. By
now, many CSR dimensions are practiced in Bangladesh. The SMEs largely depend upon
export. The US and EU buyers set guidelines to Readymade Garment (RMG) industry to
ensure the standards. The 1992 Harkin’s Bill and subsequent consumer and industry
boycott of RMG products by USA and the consequent remedial moves by local RMG
sector is one example. Moreover, some buyers from EU visited the sites of recently
collapsed garments factories. A temporary ban was also imposed on shrimp export to the
EU on health and hygienic standard and appropriate remedial action followed in that

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instance too. But, some of the exporters found difficulty in convincing the US/EU buyers
to have positive attitude towards Bangladesh due to inadequate CSR practices.
Businessmen need to recognize the implications of CSR for business activities.
Companies are facing the challenges of adapting effectively to the changing environment
in the context of globalization and in particular in the export sector. Although Consumer
Rights Movement, enforcement of government regulations and a structured view
regarding the economic importance of CRS are not yet so widespread in the corporate
world in Bangladesh, companies have gradually been attaching more importance to CSR
in the local market as well. They are increasingly aware that CSR can be of direct
economic value. Companies can contribute to social and environmental objectives,
through integrating CSR as a strategic investment into their core business strategy,
management instruments and operations. This is an investment, not a cost, much like
quality management. So, business organizations can thereby have an inclusive financial,
commercial and social approach, leading to a long term strategy minimizing risks linked
to uncertainty.
CSR in Bangladesh can also contribute a lot to community development. The corporate
house can develop the community by creating employment, providing primary education,
contribution to infrastructure development like road and high-ways and addressing
environmental concerns. This is more relevant for a country like Bangladesh where the
government interventions in these fields augmented by corporate alliance can go a long
way in developing the economy, society and environment.
Lack of enforcement of Industrial Laws and Regulations, weak unions, absence of
consumer rights groups and high level of corruption within the regulatory bodies make
CSR violation rampant in Bangladesh. Two most significant foreign exchange sources is
the RMG sector and the overseas manpower export. Unbelievably low compensation,
working hours, health/hygiene/sanitation conditions, fire safety and various types of abuse
are so common and to the extent of inhumanity that will shock any conscientious
individual to the core. Recently, the RMG sector employees have embarked on a industry
wide movement to establish their rights.
Overseas workers are mostly exploited by recruiting agencies whereas these rural and
mostly illiterate people have to sell all their belongings becoming paupers and borrow

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money at very high interest. Owing to cheating by the recruiters and unlawful behavior by
the overseas employers, many of them are compelled to come back as beggars, some after
long confinement in overseas jails. Hardly any remedy is available from the law enforcing
agencies. Many industrial units run with half-century old machinery producing fatal air,
soil and water pollutions. More modern factories also don’t care to install Effluent
Treatment Plants. Starting from FMCGs, vegetables, fruits and all other consumable
goods, adulteration, abnormal ripening at times with poisonous elements, keeping fish
fresh with applying deadly formalin and all other malpractice is rampant and carefree.
Good governance and efficient law enforcing agencies can only solve these plights.
Although a developing country, because of global competitiveness and demand, the CSR
practices and standards are being gradually implemented in Bangladesh. But there is a
long way to go. There are challenges to implement CSR properly in Bangladesh.
Ultimately CSR practices should be better practiced in Bangladesh for better and
enhanced performance. In the publication “Good Governance and Market-Based Reforms:
A Study of Bangladesh, Fara Azmat and Ken Coghill relates Good Governance with CSR
by discussing the good governance indicators of regulatory quality, rule of law and control
of corruption in the context of Bangladesh and analyses how lack of good governance
indicators affects the success and sustainability of reforms and contributes to the lack of
business ethics and CSR in Bangladesh.
CSR has been defined in general terms as ‘the obligation of the firm to use its resources in
ways to benefit society, through committed participation as a member of society, taking
into account the society at large and improving the welfare of society at large independent
of direct gains of the company’ (Weile et al., 2001: 288). In this respect, CSR, as related
to the problems of the agricultural input sector of Bangladesh, is used to explain the need
of the businesses to be socially responsible and focus on economic, social, legal, ethical
and environmental issues. Farmers are being cheated into buying underweight, low quality
inputs sometimes at higher prices, which do not benefit yields. The contaminated inputs
also cause damage to soil fertility, which eventually results in decreased yields. While the
economic aspect is represented by the resultant effect of a price hike on the farmers, the
social impact is due to the decrease in farmers’ income. The legal and ethical components
are represented by the private sector not complying with the laws and rules and not

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meeting the obligations placed on them by the state and the society. Finally, the
environmental consideration is also important because of the effect of contaminated and
unbalanced inputs on the soil and on soil fertility.
As discussed above, lack of effective good governance in Bangladesh has resulted
significantly in lack of business ethics and poor CSR culture. According to Wilson (cited
in McIntosh and Thomas, 2002: 7), the key idea behind CSR and corporate citizenship is
that responsible behavior makes good business sense. In Bangladesh the private sector
seems to focus on earning profits in the short term, ignoring the issue of responsible
behavior and the desirability of earning the trust of consumers which are important for the
long-run success of their operations. The incidence of selling adulterated underweight low
quality products at high prices and above all, hoarding to reap dishonest profit, all confirm
this. In the absence of socially responsible behavior in the private sector, there is need to
enhance capacity-building on the part of the state to intervene and implement sanctions
effectively to enforce compliance. CSR does not develop and is not sustained
independently of the context in which business operates. Importantly, the context includes
the legal infrastructure created by the state and the enforcement effort imposed by the
state. In the absence of an effective state intervention in the public interest, private
entrepreneurs are less constrained to behave in the public interest and in conformity with
CSR. Thus lack of capacity or lack of will, or both, by the state weakens the incentives for
private sector entrepreneurs to practice CSR.
In addition, private sector entrepreneurs lack expertise and are not efficient and competent
enough to take advantage of the open economy. The government has recognized the need
for educating the private sector and is undertaking some programmes. However, this is not
done on a large scale and nor is the potential exploited sufficiently for NGOs to be
involved to educate the private sector on business ethics and issues of CSR.
There is limited research on CSR in Bangladesh. As of 2002, TERI-Europe contracted
Centre for Policy Dialogue (CPD) to conduct an initial survey of the state of Corporate
Responsibility (CR) in Bangladesh. The survey covered experiences and perceptions of
workers, company executives and public representatives. Some of the conclusions of the
survey were that the companies appear stronger on policy rather than on practice, around
2/3rd of the companies have policies on sustainable development, the aspects requiring

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attention are corporate governance, AIDS, human rights and international labour
standards. Some of the conclusions of the report were that external forces are the main
drivers for CR in Bangladesh, need for educating business leaders in CR as sustainable
and profitable business models, CR for the environment is of low concern and there is
scope for partnership between the corporate sector and civil society.
As mentioned earlier, there are many evidences of corporate philanthropy in Bangladesh,
which is different in character from fully developed CSR practice by a company, however
small, medium or large in size – local or multination.

Some commentators have pointed out that only multi-national companies and a few of the
leading national companies in Bangladesh have the resources to implement CSR. Some
others argue that CSR is primarily a political and strategic agenda pushed by policy
makers, NGOs and big business. Furthermore, it is argued that only export-oriented
companies whose customers are in Europe or North America need CSR to comply with
the ‘Overseas’ CSR requirements of their buyers. This is not a worthwhile debate to
pursue rather it is more relevant to pursue; the status of practice of CSR in Bangladesh in
a cross section of companies so that effort may be directed towards promoting CSR for
better business in Bangladesh to meet global and local needs. This CSR survey has been
undertaken to gain insight into the same.© CSR Bangladesh 2009

3.0.4 Functions of Social Responsibility

Corporate Social Responsibility means companies taking the initiative themselves to


reflect social and environmental concerns within their activities and in their relationships
with the various corporate stakeholders. In a highly competitive corporate market, more
and more consumers are concerned about the social responsibility of the companies from
whom they are buying products. It starts from the individual buyer and small purchases of
coffees and teas, to cosmetics and clothes-but people all around the world are starting to
agree on the concept of fair companies that are positively impacting the society in which
they function. People are increasingly wanting products that:

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 Are created with sustainable development in mind,
 Support the growth of stronger, local communities,
 Leave minimal environmental footprints,
 Are created in great workplaces that promote diversity,
 Are responsive to the customers' health and wellness needs.
As Bangladesh prepares for the global market and as our economy proceeds along the
foreign trade zone, it has become crucial for us to keep up with global trends. We not only
need to make products that sell internationally-but our companies need to function with
global concepts in mind. As a result, we need to portray ourselves as a socially
responsible society, in which our companies are doing their part.
Furthermore, even in Bangladeshi companies today, CSR practice has become an
important trend. Banks, textile mills, and garment factories around the country are
emphasizing their CSR work and it has been highlighted as the "next big thing" by
imminent personalities of Bangladesh.
There is no doubt that Bangladeshis are socially oriented people. Most companies are
engaged in social work that involves giving donations to the poor, building a village
school, or employing the needy. However, most of this work is done sporadically, not so
much in a systematic manner. Not so much that it can be pitted as a sales point overseas or
in the country-so the company is a "global focus on CSR well done".

3.0.5 Factors affecting Social Responsibility

There are some driving forces behind CSR that include new concerns and expectations
from citizens, consumers, public authorities and investors in the context of globalization.
Social criteria are increasingly influencing the investment decisions of individuals and
institutions, both as consumers and as investors. Increased concern about the damages
caused to the environment by economic activities, transparency of business activities
brought about by the media and modern information and communication technologies are
all contributing to the changing scenario regarding CSR. CSR is a concept whereby
companies integrate social and environmental concerns in their business operations and in
their interactions with their stakeholders on a voluntary basis. Social responsibility means

22
not only fulfilling legal expectations but also going beyond compliance and investing
'more' into human capital, the environment and in rapport-building with stakeholder. A
number of companies with good social and environmental records indicate that these
activities can result in better performance and can generate more profit and growth. CSR
has some internal dimensions such as: human resources management, health and safety at
work, adaptation to change and management of environmental impact and natural
resources. The external dimensions include local communities, business, partners,
suppliers and consumers, human rights and global environmental concerns. Again, CSR
may be as simple as sponsoring social service-oriented entertainment events. In essence,
CSR is about making a positive rapport with the society.
Motivation factors for CSR
l Ethical consumerism
The rise in popularity of ethical consumerism over the last two decades can be linked to
the rise of CSR. . Consumers are becoming more aware of the environmental and social
implications of their day-to-day consumer decisions and are beginning to make
purchasing decisions related to their environmental and ethical concerns.

3.0.6 Forces affecting Social Responsibility

Globalization and market forces


As corporations pursue growth through globalization, they have 'encountered new
challenges that impose limits to their growth and potential profits. Some companies use
CSR methodologies as a strategic tactic to gain public support for their presence in global
markets, helping them sustain a competitive advantage by using their social contributions
to provide a subconscious level of advertising.
l Social awareness and education
The role among corporate stakeholders to work collectively to put pressure on
corporations is changing. Through education and dialogue, the development of
community in holding businesses responsible for their actions is growing.
Ethics training

23
The rise of ethics training inside corporations, some of it required by government
regulations, is another driver credited with changing the behaviour and culture of
corporations. Increasingly, companies are becoming interested in processes that can add
visibility to their CSR policies and activities.

Laws and regulation


Another driver of CSR is the role of independent mediators, particularly the government,
in ensuring that corporations are prevented from harming the broader social good,
including people and the environment.
Crises and their consequences
Often it takes a crisis to precipitate attention to CSR. For example, Magellan Metals in the
West Australian town of Esperance was responsible for lead contamination killing
thousands of birds in the area. The company had to cease business immediately and work
with independent regulatory bodies to execute a cleanup.
Stakeholder priorities
Increasingly, corporations are motivated to become more socially responsible because
their most important stakeholders expect them to understand and address the social and
community issues that are relevant to them

3.0.7 Model affecting Social Responsibility

24
3.0.8 Arguments for Social Responsibility

Critics of CSR as well as its proponents debate a number of concerns related to it. These
include CSR's relationship to the fundamental purpose and nature of business and
questionable motives for engaging in CSR including concerns about insincerity and
hypocrisy.
Economist Milton Friedman famously argued that the only social responsibility of
business is to maximize profit. To do anything else, the logic went, is to slide dangerously
towards socialism. The incomparable strength of a free market is its ability to allocate
resources efficiently and misguided managers who struggle nobly to enhance social
welfare forget their proper function in the market: to compete and win. Still worse,
managers, who pursue the dream of CSR, are using other people's money. Investors invest
their hard-earned savings to managers in order to make more money. That is why they
invest. So, managers, who spend money to pursue CSR projects, are "stealing" from the
investors. Some critics argue that CSR distracts the attention of businesses from their
fundamental economic role to social welfare and others argue that it is nothing more than
a superficial window-dressing in an attempt to pre-empt the role of the government as a
watchdog over powerful multinational corporations.

25
In response, CSR defenders note that the business organizations do not live in a vacuum;
they owe their very existence to the societies they inhabit. Corporations are allowed status
as a single agent in the eye of law as a fictional person (persona ficta) and are granted
limited liability and unlimited longevity. Moreover, they are granted access to society's
labour pool and its storehouse of natural resources, in both of which every member of
society has a stake.
In reality, the critics of CSR quietly make exceptions to their aggressive denials of it and
usually end up embracing a slimmed-down version. For example, they show concern
when managers abuse their power by gathering up lavish perks and compensation.

Companies with good ethical reputation attract and retain better employees; customers
and suppliers are drawn to companies which enjoy better reputation for integrity; and
employees are more loyal to their company when they have a good impression of its
ethics. Research shows a failure of trust implies a loss in profit and benefits for everyone.
Amartya Sen argues that failures of trust entail failures of economic efficiency.

3.0.9 Arguments against Social Responsibility

While the individuals interviewed all work within organizations that acknowledge CSR is
an important part of operations, even within leading companies uncertainty persists about
many aspects of CSR. As part of the corporate culture, the ability to quantify return on
investment is essential. While the potential benefits of CSR policies listed above are vast,
expressing them in terms of financial gain and linking them directly to investment in these
policies can be a difficult task. While one interviewee argued that making this link is
counterintuitive and that corporations should act responsibly because it is “the right thing
to do,” two interviewees expressed that this link is necessary to gain company support of
investment in social and environmental initiatives. The difficulty of quantifying the
benefits derived from investment in CSR can make it difficult to advance CSR within an
organization. Some challenging questions raised include:-

26
What is it? Often corporations are looking for a crystal clear definition, but this does not
exist. Given that so much external debate surrounding CSR exists, how are companies
expected to understand something that has no common definition?
Why is CSR a separate issue? Some have a difficult time understanding why CSR is
being treated as a separate issue from all other business activities. Is CSR not just good
business sense?
Where is the financial link? How will investment in CSR lead to increased financial
returns?
Who is evaluating performance? With an array of standards for evaluating CSR,
companies are unable to benchmark their performance. How do we know if what we are
doing is “good”?

3.1.0 Types of Social Responsibility

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3.1.0.1 Willful / Innovated Social Responsibility
3.1.0.2 Usual Social Responsibility
3.1.1 Role of Top Management for Discharging Social Responsibility
Profit Maximization and Legal Compliance
Traditional economic rationale holds that, by providing goods and services, creating jobs
and contributing to economic prosperity, corporate success leads to an improved quality
of life (measured in terms of GDP). Any action within the boundary of law that will
contribute to the bottom line defines the ultimate “responsibility” of the corporation.
Milton Freidman is amongst the strongest proponents of this view: What does it mean to
say that the corporate executive has a “social responsibility” in his capacity as a
businessman? If this statement is not pure rhetoric, it must mean that he is to act in some
way that is not in the best interests of his shareholders. For example that he is to refrain
from increasing the price of a product in order to contribute to the social objective of
preventing inflation, even though the price increase will be in the best interests of the
corporation. In each of these cases the corporate executive would be spending someone
else’s money for the general social interest. Business leaders are not social advocates.
They have been trained and hired to run successful companies, which, according to this

28
perspective, are evaluated solely with respect to profit maximization. Corporate laws and
regulations serve as the boundary to the mean by which corporations are able to drive
profitability, but beyond this, corporations have no social responsibility.

3.1.2 Role of Trade Union Leader for Discharging Social Responsibility


Defining the role of the corporation is a fundamental issue at the heart of the corporate
responsibility debate. Public corporations have a legal responsibility to maximize
shareholder profits, but a shift in corporate mentality led by social expectations and
pressure is causing business leaders to rethink their responsibilities. Three perspectives of
CSR have emerged:
 The first views CSR as limited by legal obligations and profit maximization.
 The second views it as “the right thing to do” for the well being of the
environment and society; and
 The third views it as a method of value creation.

A Commitment to the Environment and


Society as “The Right Thing to Do”
The traditional image of profit maximizing corporate leadership may be changing. There
is evidence of a growing contingent of corporate leaders with a greater social and
environmental conscience and purpose. Net Impact, for example, is a group of 11,000
“new generation leaders, committed to using the power of business to improve the world.”
This organization began in 1993 as a student-led initiative when a group of Washington-
based MBA students founded Students for Responsible Business. Their goal was to create
a network of individuals who were interested in applying their business skills to both
make money and have a positive social impact. In 1999, the group evolved into a non-
profit professional organization under the title “Net Impact” and now supports more than
100 professional and student chapters in 90 cities and 70 graduate schools. Furthermore, a
recent study conducted by the Stanford School of Business, examining the attitudes of 279
European and North American MBA students, confirms that “more than ninety percent of
the MBA’s in the sample were willing to forgo financial benefits in order to work for an
organization with a better reputation for corporate social responsibility and ethics.”

29
Several emerging MBA programs, such as the Program in Business and Sustainability at
the Schulich School of Business, York University, focus on teaching future business
leaders to maintain profitability while protecting the natural environment and maintaining
social and ethical responsibilities.9 Additionally, the Rotman School of Business at the
University of Toronto recently launched the AIC Institute for Corporate Citizenship to
provide business leaders with the tools necessary to practice smart social risk-taking and
reconcile shareholder interests with those of the wider community. Corporate leaders are
increasingly announcing that the operation of their companies is focused on economic,
social and environmental gain and that they have an obligation to all stakeholders affected
by company operations.

3.1.3 Role of Employees for Discharging Social Responsibility


Another emerging perspective is one that views corporate social responsibility in a less
altruistic light. Today’s CEO increasingly argues that integrating social, environmental
and financial goalsis imperative to what Freid man describes as the fundamental role of
the corporation: To make as much money for their shareholders as possible.13 Operating
in the context of sustainability and social responsibility, Russell Horner, CEO of global
paper producer Catalyst Paper states, “We’re here to make more for our shareholders.
This is just a different approach to value creation.” Third-party forest certification, such as
the Forest Stewardship Council (FSC), supports sustainable forest practices that aim to
ensure the long-term productivity of Canada’s forest, thereby sustaining the forestry
industry, as well as the communities affected by forestry operations. Mitigating the
overexploitation of natural resources and the destruction of the environment will
ultimately result in a company’s long-term viability and success. These financial
motivators drive companies like Catalyst Paper and Tembec to invest in sustainable
business practices and adopt long-term approaches to business although this may come at
a present cost. These values are embedded in company operations as “the right thing to
do” for the environment and society but most importantly for business. This holistic

30
approach to value creation is a step towards what has been referred to as “the
sustainability revolution.

3.1.4 Role of Government for Discharging Social Responsibility


Global paper producer, Catalyst Paper states that “in the conduct of our day-to-day
business there are many individual and collective decisions that we can take that are better
choices — choices that measure themselves against a realm of social, moral and ethical
decisions. The decisions that arise from them don’t have to cost more, although
sometimes they do. That too is a conscious decision.”

3.1.5 Motivation for Social Responsibility


The rise in popularity of ethical consumerism over the last two decades can be linked to
the rise of CSR. . Consumers are becoming more aware of the environmental and social
implications of their day-to-day consumer decisions and are beginning to make
purchasing decisions related to their environmental and ethical concerns.

3.1.6 Training for Social Responsibility


Overview of Social Responsibility Training
Social Responsibility Training (SRT®) is a school and community-based prevention
program designed to teach high-risk students, parents, and families about decision and life
skills in a systematic class processes that enhance responsibility and behavioral growth in
a progressive fashion. Social Responsibility Training classes are open ended so students,
parents or families can enter at any time.
Referral Sources for Social Responsibility Training Participants
 Teachers
 Counselors
 Principals
 Juvenile Court systems

31
 Drug Courts
 Child Protective Services
 Catholic Social Services
 Probation and Parole Officers
Common Reasons for Referral
 Poor grades
 Truancy
 Behavioral problems
 Substance use
 Parenting issues
 Family problems
 Criminal Justice System Involvement

32
Multi-Systemic Community Application of Social Responsibility Training.

Social Responsibility Training participants support and help each other regardless of the
reason for referral. This program offers leadership capability and mentor training for
youth and parents that have completed the program. Social Responsibility Training
encourages community coordination and bringing systems together to support youth and
family success.

3.1.7 Benefits of Social Responsibility


In discussing the benefits derived from CSR, respondents shared different successes that
their organizations had experienced. These include the following:
Community relations: For companies operating directly with communities, public
consultation is an important factor that leads to increased opportunities and smoother
operations.
Cost savings: Increased energy efficiency and waste minimization are examples of
projects that have reduced company costs. While some of these costs are realized in the
longer term, they are tangible and quantifiable benefits of CSR policies.
Employee retention/low turnover rate: Most respondents felt that increased employee
satisfaction and loyalty is a major benefit derived from increased corporate responsibility.
Young recruits are becoming increasingly environmentally and socially conscious and
have been shown to take these matters into consideration when selecting employment.
Current employees who are satisfied with corporate practices and “proud” are more likely
to stay with the organization over the long term.
Customer satisfaction and trust: For service providing companies, customer trust is
essential to corporate success.
Competitive advantage: Acting as both a driver and a benefit, gaining a competitive
advantage within industry is essential. Some companies view this as gaining an important

33
part of market share (goods and services) and others see this as increased access to future
business opportunities.
Public approval: Often industries are judged by their weakest link. Extractive industries,
in particular, must work to improve their collective performance and overall sustainability
and reputation to maintain their social license to operate.
Conflict resolution: A company with a good social and environmental record will be able
to minimize the negative impacts of adversity.
Some executives and some investors still may not be convinced about the value of CSR
programs. They may ask: What is the upside? What is the ROI (Return on Investment)?
Perhaps these are unfair questions, like asking for the ROI or metrics for funds spent on
adequate insurance coverage, or the exact return for advertising and marketing "spend."
The benefits of CSR include:
• Protecting tangible and intangibles. A company's brands, intellectual property and
goodwill may represent a significant amount of its present and future economic value.
• Attracting and retaining key employees. Talented personnel weigh a company's CSR
policies among other factors when deciding where to work, and how long to stay there.
"Greening" businesses may add to their bottom line. Reduced energy use, employee
travel/commutation, supplier packaging, paper procurement policies and recycling, may
reduce operating expenses in a readily measurable way, with a clear positive impact on
the bottom line.
• Building market share. Companies are deriving revenue from "ethically sourced" and
"fair trade" products.
Recently, some stakeholders, including nongovernmental organizations (NGOs) that focus
upon human rights issues have called for a legal framework to make CSR programs
mandatory. They are concerned that existing CSR obligations are insufficient, and
voluntary CSR programs are inadequate. For example, instances of noncompliance with
CSR standards are periodically reported despite the existence of individual corporate CSR
programs and sector-based joint CSR initiatives. Delisting of companies affiliated with
CSR initiatives for inactivity, or threatened expulsion from voluntary membership in
financial/investment sector initiatives, for failing to meet requirements will not suffice to

34
resolve perceived shortcomings. Their solution: mandatory, global, legally required, and
actionable CSR.
In this context, the article will briefly summarize the past and expected future work of
John Ruggie, the United Nations' Special Representative for Business and Human Rights.
Last month, Ruggie's mandate was renewed for three more years by a resolution of the
United Nations Human Rights Council. As part of his initial mandate, Ruggie analyzed
existing CSR programs and initiatives and related legal and policy constructs, and
engaged in extensive global stakeholder dialogues.

(Chapter-4):
4.0 Conclusion and Recommendations
4.1 Conclusion
In past, the concept of social responsibility of business used to be considered as a
phenomenon related to developed countries. The case is not the same anymore. This study
identifies the CSR practices of some organizations dealing in Bangladesh and finds
that the corporate sector of Bangladesh is performing corporate social responsibility
activities with issues like health, education, natural environment, women empowerment,
disabled people, cultural development and infrastructure development of the country.
From this discussion it can be said that the business sector of Bangladesh is trying to aid
in the general social problems of the country. These days, almost all the societies of the
world are faced with new and complicated social and economic problems. Definitely, it is
the responsibility of every government to try to solve the problems of the country, but in
many developing economies, poor governments cannot deal with that in a good extent. In
these cases, corporate sector can help in the solution of these kinds of problems. Though it
can be said that the activities of these organizations are helpful for the overall
development of the country and that is why it can be said that these activities are
praiseworthy, a question can be raised in this case whether these discretionary
responsibilities should get more importance than the legal and ethical responsibilities. It is
a good sign that the government is encouraging the corporate sector for performing CSR
activities in a greater extent but it is also important to set and implement proper

35
regulations so that the business organizations become aware of the issues like employee
rights, consumer rights and environment. Definitely it is very important to work for the
welfare of the society but it is more important to ensure that the activities of any social
unit should not harm the society in any manner. A greater emphasis on the legal and
ethical responsibilities can ensure this matter.
This study has its own limitations. The number of companies taken as samples is low. A
wider study with more sample companies may reveal a clearer picture of this issue.

4.2 Recommendations
This paper provides an overview of several prominent indexes, standards and guidelines
for CSR and gives a corporate perspective on CSR. Discussions with corporate leaders
confirmed that they perceive their social responsibility to be an increasingly integral part
of business operations and long-term viability. While the degree to which each company
implements CSR policies and programs varies, all the corporate leaders believe that their
organizations are addressing or beginning to increasingly address and account for their
social and environmental activities.
Opportunities
• The GRI is increasingly seen as globally accepted standard of reporting and provides
good guidance to companies.
• Reporting provides increased measurability of investments made in environmental and
social initiatives.
• The information is used internally to encourage and motivate employees, and externally
to promote CSR practices.
• Reporting provides desired information to key stakeholders.
• Reporting enables the organization to understand and track its initiatives.
• Transparency increases public and investor trust in the organization.
Challenges
• A truly universal reporting standard has yet to be established.
• There are substantial financial, time and human resource costs associated with report
development.

36
• Accurate data collection processes are difficult, and take time, to establish.
• There is a lack of credibility in reports due to variation in report quality.
• Reports are sometimes perceived as a mere PR exercise or “greenwash.”
• The voluntary provision of information may invite criticism of corporate activities,
which companies are not willing to endure.

4.3 References
Alam, M. (2006), Stakeholder Theory, in Hoque, Z. (ed.), Methodological Issues in
Accounting Research: Theories and Methods, Spiramus, London.
Bhuiyan, M.N.U. and Anwar, A.S.M. (1997), Business Ethics for Sustainable Business
Development, Journal of the Institute of Bankers Bangladesh, Vol. 44 & 45, pp.1-14.
Carroll, A. B. (1979), A three dimensional conceptual model of corporate performance,
Academy of Management Review, October, pp. 497-505.
Center for Policy Dialogue (2002), Corporate Responsibility Practices of Bangladesh:
Results from a Benchmark Study, CPD Occasional Paper Series, Paper 18, CPD, Dhaka.
www.energypac.com
www.energypac-bd.com
www.google.com.bd

37
APPENDIX
Questionnaire
1. What is the History of Energypac Power Genetration Ltd?
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
2. What are the Objectives of this Organization?
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
3. What are the Functions of this Organization?
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
4. What are your Present / Existing Program?
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
5. What is your Future Plan?
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
6. As a Human Resource Manager what is your Social Responsibility?

38
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
7. Did you think of Social Responsibility have benefit?
 Yes
 No

8. Which types of Social Responsibility do you follow?


 Economic Responsibility
 Legal Responsibility
 Ethical Responsibility
 Discretionary Responsibility
9. Do you motivate your employee for Social Responsibility?
 Yes
 No
10. Do you have any kind of Training facility for Social Responsibility?
 Yes
 No
11. What should be the Role of Trade Union Leader for Social Responsibility?
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
12. What Government can do for Social Responsibility|?
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………
13. Have you any Social Responsible plan for the flood victim people in Bangladesh?
 Yes
 No
14. Does your company have any individual fund for Social Responsible activity?
 Yes

39
 No
15. What is your suggestion to become a Social Responsible person?
………………………………………………………………………………………
………………………………………………………………………………………
………………………………………………………………………………………

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