Introduction

Corporate social responsibility is an ideology that business has a social duty other
than just seeking and making profit. Since the societys expectations from business
(for example, safe and meaningful jobs, clean air and water, charitable donations, safe
products) has increased a lot in recent times this concept has gained more acceptance
in the business community. Due to its widespread popularity it has become a
relatively new and growing concern for most organizations all around the globe.
Especially in Bangladesh, where there are lots of organizations which do not feel any
kind of responsibility towards the society, this is a very important issue that should be
encouraged more often. Once these organizations start being more responsible
towards our society and environment a lot of todays societal problems would be
tackled. Understanding the significance of this issue, I have profoundly studied the
degree of social responsibility organizations in Bangladesh have.
Since my research topic is Social Responsibility of Business Organizations in
Bangladesh, I have examined the views of business organizations in Bangladesh
regarding corporate social responsibility and particularly concentrated on the socially
responsible organizations in Bangladesh and what kind of benefits they yield by being
socially responsible. In addition to this I found out what advice managers of socially
responsible organizations have for these businesses that are still avoiding their
responsibilities.
The purpose of my research was to convince organizations that being socially
responsible they could actually help themselves. Thus my research could encourage
those organizations who are still evading responsibility to play a part in societys
wellbeing.

I have tried to give the readers an approximate sketch of the status of business
organizations regarding corporate social responsibility (CSR) in Bangladesh, and indepth analysis of the benefits that socially responsible organizations earn. I hope my
research will help readers understand the importance of this issue and convince them
that by being socially responsible they can actually make our society a better place.

Background
In the present age of globalization, citizens around the world have become
increasingly aware that the private sector influences their daily lives in innumerable
ways. In many cases, publicity about the societal impact of global business has been
negative: oil spills, sweatshop exploitation of labor, and encouragement of cash
cropping in the developing world. All these negative impacts have given widespread
popularity to the concept of Corporate Social Responsibility.
The term corporate refers to body corporate i.e. an artificial person or a legal entity
in the eye of law. Having a legal standing every corporate body is allowed to carry on
its legitimate business in a society. Since a corporate body enjoys certain privileges
during its continuance of business, social responsibility is expected from corporate
entity towards employees, environment and society as a whole.
This concept of Corporate Social Responsibility (CSR) is not a new one even though
it gained importance in recent times. The idea was considered in the early part of the
twentieth century, but it received enormous motivation with the 1953 book: Social
Responsibilities of the Businessman by Howard R. Bowen, who suggested that
businesses should consider the social implications of their decisions. Bowen
advocated that CSR was industrys obligation to pursue those policies, to make those
decisions, or to follow those lines of actions which are desirable in terms of objectives
and values of society (19).Thus, CSR is considered as seriously considering the
impact of the companys actions on society.
Over the past decade, CSR has become an ever more pervasive term in the business
parlance. While it apparently has been adopted by major organizations throughout the
world, the fact is that we have little clarity as to what is meant by the term. There is no
agreement on the definition of CSR. There are no national or global standards for
3

CSR, there are different standards as to what CSR is designed to do, and therefore the
term has a muddled meaning.
Organizations may exercise social responsibility toward their stakeholders, toward the
natural environment, and toward the general society welfare. Some organizations
acknowledge their responsibilities in all three areas while others emphasize one or
two areas of social responsibility only. However, there are many who acknowledge no
social responsibility at all.
People who argue in favor of CSR claim that since organizations create many of the
problems that need to be addressed, such as air and water pollution and resource
depletion, they should play a major role in solving them. They also argue that because
organizations are largely defined entities with most of the same privileges as private
citizens, businesses should not try to avoid their obligations as citizens. Moreover,
they point out that while the governmental organizations have stretched their budgets
to the limit, many large businesses often have surplus revenues that could potentially
be used to help solve social problems.
On the other hand, some people argue that widening the interpretation of CSR may
undermine the economy by detracting from the basic mission of business: to make
profit for the owners. Another objection to deepening CSR of businesses points out
that organizations already have too much power and that their activity in social
programs gives them even more power. Another argument focuses on the potential for
conflict of interest. Finally, critics argue that organizations lack the knowledge to
understand how to assess and make decisions about worthy social problems.
Nevertheless, the arguments in favor of CSR outweigh the arguments against and it is
an established point that CSR does more good than harm.
It is easier to name the many types of programs and activities under the banner of
CSR than it is to draw quantifiable conclusions about them. Since CSR encompasses
4

both discrete programs such as employee volunteer projects and more nebulous
principles like cultural sensitivity, some types are easier to measure than others.
Measurement of CSR can be broken down into three separate categories. First,
measuring the order of magnitude of CSR at the present time: how many companies
are implementing some kind of CSR, on what scale, and in what specific ways?
Second, quantifying the social and environmental impact of existing programs -- in
other words, quantifying corporate social and environmental performance (CSP).
Third, identifying, measuring, and explaining cause and effect relationships between
companies' CSR activities and their financial performance.
The government can also take initiative to shape CSR practices through both direct
and indirect channels. Direct influence is most frequently manifested through
regulation, where as indirect influence can take a number of forms, most notably
taxation policies, where socially responsible organizations enjoy the benefits of
paying lower taxes.
In Bangladesh it has been an encouraging sign that corporate cultures as well as
adoption of CSR policies are improving day by day. Although many people including
entrepreneurs of local organizations are not properly aware of this concept, the
concept is getting recognition by multi national companies, joint venture
organizations and even few local organizations. Organizations like Standard Chartered
Bank and British American Tobacco (BAT) are the pioneers in establishing practices
of CSR in Bangladesh. Besides CSR policies of Dutch Bangla Bank, Dhaka Bank,
Grameen Phone, and Singer Bangladesh Ltd. have created an image that can influence
other corporate entities to adopt CSR polices of their own. Such CSR policies can
play a significant role to boast up the economy of our country.
The demands for CSR placed on contemporary organizations by an increasingly
sophisticated and educated public are probably stronger than ever. Organizations that
5

are still evading such policies need to work out their strategic plans for implementing
CSR policies. Only when these organizations become more responsible the process of
enhancing the competitiveness of Bangladeshi organizations in the global market is
possible.

Research Areas
I have acutely investigated the following questions which I identified to be relevant to
my topic:
1. What is the general view of business organizations in Bangladesh regarding
social responsibility?
2. What are the effects of organizations that avoid social responsibility on
society?
3. Which organizations in Bangladesh are established as socially responsible
organizations and why?
4. What are the long run benefits for society and organizations that are socially
responsible?
After careful analysis of the questions I have found the following information which
are arranged in the sections that follow:
General View of Business Organizations Regarding CSR in Bangladesh
It has been an encouraging sign that corporate cultures as well as adoption of CSR
policies are improving day by day in Bangladesh. Although many people including
entrepreneurs of local organizations are not properly aware of this concept, the
concept is getting acknowledgment by multi national companies, joint venture
organizations and even few local organizations. Organizations like Standard Chartered
Bank and British American Tobacco (BAT) are the pioneers in establishing practices
of CSR in Bangladesh. Besides CSR policies of Dutch Bangla Bank, Dhaka Bank,
Grameen Phone, and Singer Bangladesh Ltd. have created an image that can influence
other corporate entities to adopt CSR polices of their own. Such CSR policies can
play a significant role to boast up the economy of our country. At the same time,
corporate standard would be improved if CSR is under pinned by a dependable
7

business case that links social and environmental responsibility with economic
success.
It has been revealed through a study report published in 2003 that the tendencies
toward adoption of CSR policies are increasing in Bangladesh. 46.7 percent of the
companies have drafted corporate policies. More than 80 percent of the organizations
claimed that they adhere to a fair remuneration policy, however, it has been found that
around or less than 40 percent of the companies do not have well articulated policy as
regards to workers rights and safety, and equal rights of workers.
The study also showed that 68.9 percent of the companies have an established
framework for human resources which ensure respect for core labor standards,
management of employee relations and communications, training for skill
development, health and safety and equal opportunities. However in 66.7 percent of
the cases these policies are not applicable for part-time employees.
These data show that although the initiatives have been taken to draft the policies in
favor of CSR, they are not being implemented fully by most organizations and that is
the main problem. Organizations, therefore, need to fashion an approach to CSR the
same way they develop any other business strategy because in that way they can play
a role in boosting up our countrys economy.
Effects of Organizations that Avoid Social Responsibility
There are still many industries in Bangladesh that have constantly evaded the need for
CSR policies. In addition to that they are playing a major role in polluting our
environment and destroying the ecological balance. Some cases of such negligence
are described in the following sections:
Ship-Breaking Industry
In Chittagongs ship-breaking industry, thousands of underpaid workers take apart
entire ships with little more than their bare hands and blow torches.
8

Ship-breaking is the process of taking apart vessels that are no longer serviceable or
useful so that parts and scrap metal may be sold. The scrap metal market is growing
and lucrative (a $1 billion per year industry), and the ship breaking yards offer
employment to unskilled workers, along with valuable raw materials. According to
the International Labor Organization (ILO), in Bangladesh eighty percent of all
recycled scrap metal comes from ship scraps. Yet despite these figures, ship breaking
remains an unregulated, polluting, and dangerous practice
Scrap workers are exposed to extreme heat, toxic and flammable gases, and dangerous
chemicals. According to the ILO, the average ship contains seven tons of asbestos,
along with mercury, Polychlorinated Biphenyls (PCBs), lead, chromium, cadmium,
dioxins and toxic sulfuric fumes. The workers are not provided with any protective
gear or guidelines.
The main Chittagong ship breaking area called Fauzdarhat is located on a 10-mile
(16km) stretch of the Bay of Bengal that was once covered by a mangrove forest. It is
the second-largest ship breaking operation in the world. With a tidal flux ideal for the
beaching of large vessels, Chittagong scraps around fifty percent of the worlds largescale ships. Since the number of end-of-life tankers is expected to grow in coming
years, this business and its hazards are also expected to rise.
Since the inception of ship breaking in 1969, the areas environment has dramatically
deteriorated. The coastal waters are now polluted with asbestos, heavy metals, high
concentrations of oil in the soil and water from numerous oil spills, PCBs, Polycyclic
aromatic hydrocarbons (PAHs) which cause malignant tumors, and Tributyl Tin (a.k.a
TBT or Organotins), a nerve toxin and endocrine disruptor that accumulates in the
blood, liver, kidneys, and brain. A research report on the areas pollution has been
published by Det Norske Veritas (DNV), an international risk consulting firm.
Tanneries near Buriganga River
9

Most of our environmental problems begin at the tanneries located in Hazaribagh, a

densely-populated area of Dhaka, the main leather-tanning district of Bangladesh. The
majority of the 249 tanneries of Bangladesh are clustered here on 25 hectares,
processing 220 metric tons of hide a day, leather in such demand for export that the
industry now ranks fourth in foreign exchange earnings, vital to the economy.
The settings for these tanneries are wastelands where some 7.70 million liters of
untreated liquid waste and 88 metric tons of untreated solid waste are dumped each
day. The problems are obvious from the heaps of leather cuttings, fat, flesh and hair,
from the nauseating stench of blood, rotting flesh, and chemicals, and from the acid
corrosion on the nearby tin roofs. Moreover, the working conditions are crowded and
hazardous, and the working day a brutal 12 hours.
Most tanneries simply dump decaying flesh waste outside to rot. The water, some 40
to 50 liters for each kilo of hide, is poured down a drain or onto the ground. The
effluent carries putrid rotting flesh, blood and skin, as well as toxic chemicals - salt,
alkali, sulfuric acid, bleach, dyes, and formic acid - straight into the ground, or
through pipes to a low area to the west, where they seep into the soil of the
surrounding residential area, and are pumped into the nearby Buriganga River.
Much of the surrounding area is inhabited by the poor, who dwell in makeshift
housing and cook their meals on fuel foraged from the dried leather wastes. Many
people wash and bathe in the nearby Buriganga River, even though it is contaminated
by liquid wastes powerful enough to kill the fish. Sulfuric acid vapor wafts into the
air, corroding tin roofs and dulling even the gold and silver ornaments in nearby
shops. Hydrogen sulfide permeates the air with an odor like rotten eggs.

10

The problems are easy to see, but solutions hard to find. The tannery industry is
categorized as "red" by the Department of Environment of the Bangladesh
government, meaning it is one of the country's worst. But the methods of the industry,
and the extensive damage inflicted on the workers and surrounding residents, have
long been accepted as a necessary price of economic expansion. After all, the leather
tanneries of Bangladesh have always operated this way.
Tannery owners feel they can't afford to invest in individual waste treatment facilities,
because there is little organization among them. Government authorities, also
operating on marginal budgets, feel that controlling the pollution is the responsibility
of the private, not public, sector. So tons of uncontrolled waste continue to pile onto
the landscape and flow into the river.
Brick Industry
Brick-making for housing in urban and rural areas, as also for roads and bridges is a
key aspect of air pollution in the cities and villages of Bangladesh. Fired-clay bricks
form a significant portion of the materials used in the construction industry. They are
the major raw materials for all infrastructure projects such as roads, bridges and
buildings. Though the demand for bricks, in the past, was urban-based, with the rise
of rural incomes and building of houses by the affluent in their villages, the use of
bricks for dwelling house construction has spread to the countryside. High prices and
scarcity of alternate building material such as stone, corrugated iron sheets, wood etc
are raising the demand for bricks. In Bangladesh the brick industry is a major source
of urban and now rural air pollution, contributing to land degradation and river
erosion, and is a significant cause of deforestation as timber is used to fire brick kilns
where natural gas is not available

11

Socially Responsible Organizations in Bangladesh

As already mentioned, Standard Chartered Bank and British American Tobacco (BAT)
are the pioneers in establishing practices of CSR in Bangladesh. Organizations like
Dutch Bangla Bank, Dhaka Bank, Grameen Phone, and Singer (Bangladesh Ltd.) are
also renowned for their CSR practices in Bangladesh. Some other organizations who
are also known for their works of CSR are Chevron Bangladesh, Citigroup
Bangladesh, Expeditors Bangladesh Ltd., etc. The sections that follow provide
outlines of the kind of CSR activities some of these organizations are involved in:
British American Tobacco:
BAT has been one of the pioneers in implementing CSR projects in Bangladesh. They
have actively participated in programs such as tree plantation and sponsoring many
sports and recreational activities. Also they are part of programs that discourage
under-age smoking and ILO programs to eliminate child labor in Bangladesh. Their
Green Dhaka Clean Dhaka campaign has gained great popularity and is seen as one
of the best socially responsible campaigns.
Dutch Bangla Bank
Dutch-Bangla Bank Limited (DBBL) practice include the professional activities of helping
individuals, families, groups, organizations, and communities to enhance or restore their
capacity for optimal social functioning and of .creating societal conditions favorable to this
goal. Their programs include Scholarship program for the meritorious and needy students,
Blind Education and Rehabilitation Organization (BERDO), HIV/AIDS Assistance Program,
Smile Brighter Program for children with cleft lips, Support to ACID & Dowry Victims, Vesico
Vaginal Fistula (V.V.F) operation to improve women reproductive health, Disaster
Management Program, and Donation to different organization.

Grameen Phone
Some of the programs that GP is involved in include the Village Phone Program,
promoting different socio-cultural activities and sports events in the country, restoring
12

the exterior of the historic Old Railway Station Building in Chittagong as per its
original architectural design. It has also sponsored a scholarship fund for the poor and
meritorious students of the Finance and Banking Department of Dhaka University in
cooperation with the Finance and Banking Alumni Association. Moreover, GP has
donated 16 computers to two schools for underprivileged children.
In the sports arena, GP is currently sponsoring the Bangladesh National Cricket Team
for a period of two years through 2005-2007, and also sponsored the National Under19 and Under-17 cricket teams. It was also one of the main sponsors of the live
telecast of ICC World Cup Cricket 2003. GP also sponsored the President Cup Golf
Tournament, and sponsors the visits of newspaper reporters abroad to cover major
sports events.
Singer Bangladesh Ltd.
Activities of Singer include the Sewing Academy for the underprivileged women of
the society, employment of the underprivileged, Family Assurance Plan for the
customers, and the ILO Child Labor Elimination Program.
Singer also contributes to the promotion of sports and culture in Bangladesh.
The donation of Singer products to various institutions works for the betterment of
underprivileged people, which Singer views as its corporate responsibility.
Singer equally provides sponsorship of extracurricular activities of educational
institutions of the country, such as the debate competition organized by the Debating
Club of North South University, Dhaka.
Chevron Bangladesh
Chevron a US based company in Bangladesh is involved in many CSR projects such
as awarding scholarships to meritorious and needy students, sanitation programs in
Bibiyana Natural Gas Field area to ensure hygienic sanitation in the region, the

13

Smiling Sun healthcare centre, and donation of books and accessories to many
universities and schools.
Citigroup Bangladesh
Citigroup Bangladesh has taken the initiative to provide insurance coverage to
Bangladeshi nations living in Saudi Arabia. Moreover they have been actively
involved in donating for earthquake victims in South Asia. Furthermore, they arrange
workshops and educational summits, and seminars in Bangladesh as well as in other
countries where Bangladeshi scholars have the opportunity of exposure.
Benefits for Society & Organizations
Benefits for society:
Since this whole concept of Corporate Social Responsibility revolves around the
betterment of the society the array of benefits for the society is very wide. It can be in
such forms as donations during disasters, free or subsidized healthcare facilities,
scholarships for educational purposes, financial benefits for the poorer segment of the
society, programs for underprivileged people in our society, less pollution, and cleaner
and greener cities, etc.
Benefits for Organizations:
The organizations which are actively involved in CSR projects could also gain a lot of
benefits in return. These are
1. Access to Capital: Companies that are committed to CSR often have
access to capital that would not otherwise be available, due to the
increase in Socially Responsible Investment (SRI).
2. Reduced Operating Costs / Increased Operational Efficiency: Contrary
to widely-held opinion, improved environmental management systems
do not automatically result in greater cost. Over time, they improve
operational efficiency by reducing waste production and water usage,
14

increasing energy efficiency and in some cases, selling recycled

materials.
3. Enhanced Brand Image and Reputation: A strong reputation in
environmental and social responsibility can help a company build the
trust of stakeholders. However, it needs to result from real practices
and policies and integrity towards the companies responsibilities.
4. Increased Sales and Customer Loyalty: consumers not only want good
and safe products, but they also want to know that what they buy was
produced in a socially and environmentally responsible way.
5. Increased Productivity and Quality: companies that improve working
conditions and labor practices among their suppliers often experience a
decrease in merchandise that is defective or cant be sold.
6. Increased Ability to Attract and Retain Employees: People want to
work for a company that is in accordance with their own values and
beliefs. Employees are not just worried about promotion and salary any
more. Many people have altruistic values which are fulfilled when they
are working for a socially responsible organization.
7. Potentially, reduced regulatory oversight: The more committed an
organization shows it is to CSR the more lenient the government is
towards that organization regarding rules and regulations.
8. Reducing risk, and increased risk management: The more a company is
committed to CSR, the less they are exposing themselves to business
risk.
This could be reputation risk following bad press, e.g. the highly
publicized Nike sweatshops, financial risk, or environmental risk

15

Hypothesis
Organizations are supposed to enjoy certain benefits by being socially responsible.
However in Bangladesh there are still many organizations that have the least intention
if any and idea about implementing CSR projects. If these projects are beneficial to
the businesses then why are there still so many businesses that avoid social
responsibility? That is why I focused on whether organizations in Bangladesh gain
any benefit by helping the society. My Hypothesis is that by being socially
responsible an organization can make profit in the long run and at the same time
benefit the society.

16

Methodology
This research was based upon two main sources for information: Primary Information
and Secondary Information.
Primary data:
Instead of just reading books, articles and drawing conclusion on the topic, I
personally went to the source to interview and survey the current status of the
business organizations regarding CSR.
For collecting my primary data firstly, I have interviewed managers of two of the
most popular socially responsible organizations. The first interviewee is a Senior
Executive Officer at Dutch-Bangla Bank (Nababpur Branch), Mr. Ibnul Hasan,
and the second person is a Deputy Manager (Marketing Department) at Singer
Bangladesh Ltd., Mr. Salim Ahmed. I found out their thoughts about CSR in
Bangladesh as well as the kind of benefits their organizations are providing to the
society and how it is helping their respective organizations.
I asked them various questions but the three that I want to highlight the most areo How far did social responsibility of business organizations in
Bangladesh improve and what were the benefits of it for the
organizations and the society as a whole?
o What are their individual views about this concept of CSR and what
kind of contribution did their organizations make to the society?
o What were the advantages of these contributions to the society and
their respective organizations?
Their response has been very enthusiastic and positive.
Secondly, I have surveyed 30 employees of socially responsible organizations
mainly at Grameen Phone, British American Tobacco (BAT), Dhaka Bank,
17

Expeditors Bangladesh Ltd., Citycell, and Citibank. I have used the convenience
sampling technique for surveying my target group (employees of socially
responsible organizations).
The quality of response I received from them was very dependable. There were
hardly any who filled the questionnaire without proper thinking and most people
were very enthusiastic to fill out the questionnaire about a topic like CSR. In fact,
some were so eager about the topic that they shared their further thoughts with me
about the topic. Overall I had a very positive and keen response from my target
group.
The data obtained from the questionnaires are tabulated and represented
graphically in the data analysis section of my paper to give the readers a better
mathematical understanding of the topic.
Secondary data:
For secondary information I have read relevant books, journals, and articles and
also collected information from internet articles and journals on Corporate Social
Responsibility (CSR) in general, and particularly about Social Responsibility of
Business Organizations in Bangladesh. The text and article I mainly consulted are:
Kreitner, Robert. Management. 9th ed. New York: Houghton Mifflin Co., 2004.
Imam, Md. Hasan. Corporate Social Responsibility. The Chartered Secretary
VIII (2006): 39-43.
Furthermore, the websites I manly used for my research paper are:
Phillips, Rachel, and Lisbeth Claus. Corporate Social Responsibility and Global
HR. SHRM Global Forum 23 May 2002. 2 Aug. 2006.
<http://www.shrm.org/global/publications/focus/CSR2002.asp>.

18

"Introduction to Corporate Social Responsibility." Business for Social

Responsibility 11 May 2001. 3 Aug. 2006.
<http://www.bsr.org/BSRlibrary/TOdetail.cfm?DocumentID=138>.
A complete list of the all the articles, journals and books I have used is provided in the
Bibliography section of my research paper.

19

Data Presentation & Analysis

The table and chart given below compares the responses of my survey group i.e. 30
Question Numbers
1
2
3
4
5
6
7
8
9

Option a.
21
19
23
23
22
20
23
12
20

Option b.
5
6
5
2
7
4
4
6
6

Option c.
4
5
2
5
1
6
3
12
4

Total Responses
30
30
30
30
30
30
30
30
30

employees of socially responsible organizations. . Each questionnaire contained nine

questions which were all closed ended and had three optional answers. A sample of
the questionnaire is provided in the appendix of this paper.
Table 1: Summary of response of my survey group

20

The sections that follow elaborately discuss the kind of responses I got from my
survey group for each question separately:
1.

Do you think business organizations should be socially responsible?

The table and pie-chart given above represent the frequency and distribution of
responses about the question regarding whether organizations should be socially
responsible or not.
Firstly, it can be seen from the chart that the majorities, 70% of the employees, feel
that organizations should be socially responsible because organizations have a duty
towards society. This high rate of response is probably because they feel that being a
part of this society and the inevitable cause of many societal problems the
Yes, because of
duty towards
society
21

Yes, because it is better

for the organization
5

No, because it is a
waste of resources
4

Total
Response
s
30

organizations should contribute for the betterment of the society.

Secondly, it was found that 17% of the employees think that organizations should
contribute because it is better for the organization itself. This view is probably backed
by the numerous benefits that their organizations are yielding by being socially
responsible.
Finally, I also found few employees, only 13%, who thought that organizations should
not be socially responsible because it is a waste of the companys resources which
could be used to make more profit. These employees are probably felt that businesses
should just stick to their main aim that is making profit because they lack the ability to
pursue social goals.

21

Overall, most employees answered this question in favor of making business

organizations socially responsible.
2. How do you feel being a member of a socially responsible organization?
Proud, playing a part in
society's wellbeing
19

Proud, because my
organization is well recognized
6

I feel the resources

are being misused
5

Total
Responses
30

Given above are the data table and pie-chart which represents the comparison of
responses I received for the question about how the employees felt being a member of
a socially responsible organization.
The comparison shows that a large number of employees, 63% feel proud of being a
member of a socially responsible organization because they can play a role is societys
wellbeing. This is probably because it satisfies their altruistic value by being able to
help the society in some way.
Another reason for the employees to be proud was that they were working for a well
recognized organization. 20% of the employees shared this view and this is probably
22

because their organization is much respected among the society and being a member
of this organization they also earn respect.
However, there are still few, 17% who did not feel proud and rather thought that the
resources are being misused. These people are those who felt businesses cannot
follow social goals.
Again, a majority of people (83%) said that they are proud to be a part of a socially
responsible organization.
3. Do you think the organization is benefited in any way by being socially
responsible?
Yes, better society means
better business environment
23

No, resources are

being wasted
5

No comments
2

Total
Responses
30

The above table and pie-chart compares the responses I received for the question
about the benefits for an organization which is socially responsible.
Once again the pattern of responses is similar to the first two questions. Again a
majority, 76% agreed that it is benefiting the organization since better society means a
23

batter place for doing business. These employees probably used their experience in
the business environment to answer this question and said that it benefited because
they probably have seen it happen.
However, a smaller segment 17% still disagreed and their view is that the organization
is not benefited rather its resources are being misused. These people are those who
feel organizations cannot achieve social goals.
Moreover, there is a small segment 7% who choose no comments and are probably
not knowledgeable about the fact that an organization gains benefit or does not by
being socially responsible.
4. Do you think being a socially responsible organization has an effect on the
corporate image of your organization?
Positive image
23

Negative image
2

No effect
5

Total Responses
30

The responses for the question about the corporate image of the organization are
compared in the above table and presented graphically in the 3D pie-chart.

24

It is seen that again majority 76% feels that it helps in building a positive image for
the organization. This is probably because their organization gained high respect and
recognition by undertaking CSR projects.
However, there are some 17% who feel that there is no effect on the organizations
image. Probably these are employees who feel that their organizations have received
no special respect or recognition for undertaking CSR projects.
There are still few, only 7% who think that it is actually having a negative impact on
the corporate image. Probably they think that their organizations have not able to
fulfill social projects they have undertaken very well and that are giving them a
negative reputation.
Nevertheless, majority agreed that being socially responsible is helping the
organization to cultivate a positive reputation.
5. Do you think the projects your organization has undertaken benefited the
society?
Yes, it helped a lot

No, it had no effects

It had negative effects

Total Responses

22

30

25

The data table and the bar-graph on the previous page compare the responses of 30
employees about the benefit of their organizations CSR projects to society.
A strikingly high number of people (22 out of 30) responded that those CSR projects
have been very helpful to the society. Probably these employees had seen the kind of
benefits the society received and thus responded accordingly.
However, some people (7 out of 30) believed that these projects have not been very
helpful. They probably feel that the projects their organizations have undertaken were
not good enough to give benefits to the society.
Also there was 1 respondent who felt it had negative effects on the society. This
person probably has some valid experience or data which gave him such an
exceptional perspective. Nevertheless, most people agreed that the projects have been
very fruitful for the society.
6. Do you think you are personally benefited by working for a socially
responsible organization?
It provides lots of
benefits
20

No benefits
4

Benefits for the organization but

not for employees
6

Total
Responses
30

26

The responses to the question about whether the employees gained any personal
benefit by working for a socially responsible organization are compared in the table
and chart in the previous page.
Most employees 67% said that they received many personal benefits. Probably their
organizations had some incentives for them which made them feel this way.
A smaller segment, 13%, however disagreed and said there are no benefits and rather
thought of CSR projects as a waste of valuable resources. Probably, these are people
who feel that businesses cannot fulfill social goals.
Also, 20% of the respondents thought that there are no direct benefits for the
employees being a member of a socially responsible organization, but the
organization itself is benefited.
Nonetheless, most people agreed that there are benefits associated with being socially
responsible whether it is for the individual workers or the company as a whole.
7. Do you think other organizations should become socially responsible as well?
Yes, for the good
of the society
23

No, since it would

increase competition
4

No, since it is a
waste of resources
3

Total Responses
30

27

In response to this question about other organizations becoming socially responsible

the responses were again in favor of being socially responsible.
Most people (23 out of 30) thought that other organizations should become socially
responsible for the betterment of the society. Others 4 (out of 30) and 3 (out of 30)
respondents commented against it. 4 people thought it would increase competition
among the socially responsible organizations probably because then the companies
would lose sight of the actual cause and run after doing CSR projects for publicity
purposes. The other 3 respondents thought it would be waste of resources since they
are advocates against the concept of social responsibility.
Overall, most answers are favoring the concept of becoming socially responsible.
8. Do you think government should force organizations to become socially
responsible?
Yes, because they can
solve society's problems
12

Yes, because it would prevent

irresponsible behavior
6

No, because it is the

organization's own
choice
12

Total
Responses
30

28

The responses to this question about government interference were somewhat equally
divided. The doughnut-chart graphically represents this comparison.
Firstly, it is seen that 40% of people think that government should interfere because
businesses have the ability to solve societal problems. Probably these employees feel
that the organizations have enough power and resources to solve many of our social
problems.
Secondly, another 40% think that government should not interfere because it is the
organizations own choice. They feel organizations should have the power to decide
what is better for them.
Finally, there is another smaller group 20%, who feel government should interfere to
stop organizations from behaving irresponsibly. These people feel that it is
governments duty to prevent sweat-shop organizations and industrys which are
polluting our environment.

29

The responses to this question is rather divided in opinion but still a majority of
people are in favor of government taking action to enforce organizations to become
socially responsible.
9. Should government give any incentive to socially responsible organizations?
Yes, to
encourage them
20

No, they have too much

benefits already
6

No, since they are

wasting resources
4

Total Responses
30

The table and chart from the previous page compares the responses of 30 employees
of socially responsible organizations about whether socially responsible organizations
should be given incentives or not.
Most respondents (20 out of 30) said that yes, it should be given to encourage these
organizations. They feel that such initiative by the government would cause the
organizations to be more socially active and also attract new organizations to do social
works.
However, some (6 out of 30) disagreed and their view was that organizations have too
many benefits already. They feel that the benefits the organizations are receiving
would act as an encouragement in itself and create more CSR projects.
30

But there are few respondents, 4 out of 30 respondents, who thinks that the
organizations are wasting there resources and government should not waste any
resource on them. They are the advocates against corporate social responsibility who
feel businesses lack the ability to pursue social goals.
Nonetheless, the majority is in the support of government providing incentives for the
socially responsible organizations.
In summary, after carefully analyzing all the responses of my survey group which
were 30 employees from socially responsible organizations, I have found out that
most employees agree that being socially responsible gives a wide array of benefits to
the organization and also certain benefits to the society. Moreover, I found that in
general the employees hold a positive view about the concept of social responsibility.
My findings from the data analysis were further strengthened by the information I got
from taking the interviews of two managers at two of the most recognized socially
responsible organizations Dutch-Bangla Bank and Singer Bangladesh Limited. These
are covered in the next topic of my research paper.

Data from Interviews:

I have personally interviewed managers of two of the most popular socially
responsible organizations. The first interviewee is a Senior Executive Officer at
Dutch-Bangla Bank (Nababpur Branch), Mr. Ibnul Hasan, and the second person is a
Deputy Manager (Marketing Department) at Singer Bangladesh Ltd., Mr. Salim
Ahmed. I found out their thoughts regarding Corporate Social Responsibility in
Bangladesh as well as the kind of benefits their organizations are providing to the
society and how it is helping their respective organizations.
In response to the question about improvement of social responsibility of the
organizations in Bangladesh Mr. Hasan said that there has been a dramatic
31

improvement in the adoption of social policies by many organizations. He added that

most managers are now thinking about this concept of CSR and trying to implement it
in their organizations. However, he also stressed on the point that many organizations
that have very little knowledge about this concept still exist and these organizations
are the main sources of our societal problems. Moreover he talked about the kind of
CSR projects that his organization has undertaken and how it had benefited the
society. Furthermore, he added that by doing these CSR projects his organization has
been largely benefited and also being an employee of such an organization he has
received many personal benefits.
My second interviewee, Mr. Salim Ahmed also agreed with Mr. Hasan on most points.
However his view regarding those organizations which have not yet implemented
CSR projects is that the managers of the organizations have the knowledge about this
concept and are rather avoiding their responsibility towards society. He said that they
are playing games with the society because they do not want to involve in any social
activities. Furthermore, he added that although his organization enjoys lots of benefits
by being socially responsible, he does not receive any direct benefit for being an
employee there.
Thus, there are some discrepancies regarding the personal benefits for employees of
socially responsible organizations. However, both the managers agreed that these CSR
projects are benefiting the organization as a whole and at the same time helping the
society.

32

Summary of Research Findings

After careful analysis and comparison of the primary data (from survey and
interviews) with the secondary data (provided in the Research Areas) I have found
that in most cases there are evidences that being socially responsible provides a wide
array of benefits for the organizations and is also benefits the society.
The hypothesis I put forward was based on what I expected since I had some prior
idea about this topic and I knew being socially responsible is associated with some
benefits for the organization and the society. Nevertheless seeing the numerous
irresponsible behaviors of many organizations in Bangladesh I wanted to find out if
this benefit was also achieved in Bangladeshi context.
Therefore, after analyzing the data I can now say that my hypothesis which is by
being socially responsible an organization can make profit in the long run and at the
same time benefit the society matches my findings. Since long-run profitability is the
same as the benefits an organization is earning and also my findings show that these
CSR activities are helping the whole society I can say that I have proved my
hypothesis to be true for the Bangladesh scenario.

33

Recommendations
After profoundly studying this topic I want to give the following recommendations to
organizations that have still not implemented CSR practices:

If the managers of these organizations are still not aware of the concept of
CSR they should know about it and learn about the benefits their organizations
can gain by implementing it.

If the managers are aware of CSR and avoiding it on purpose they should
know they are dampening their companys image by not being socially
responsible and thus take action accordingly.

For organizations which have already implemented CSR projects I would recommend
them:

To continue the good work and help society and

Invite other organizations to follow their examples because by doing so the

business environment will be greatly improved.

Finally, I have few recommendations for our government:

The government should intervene in the affairs of irresponsible businesses and

make strict rules so that they would behave more responsibly.

Also, the government should give some incentives to organizations that are
socially responsible to encourage their good work and attract new
organizations that would become socially responsible in order to gain the same
benefits.

34

Conclusion
My research topic which is Social Responsibility of Business Organizations in
Bangladesh is a very significant issue in Bangladesh nowadays due to the
irresponsible behavior of many businesses which are creating many of our societal
problems. The importance of this concept drove me to choose this topic and do a
profound study about the topic. I started my research with the hypothesis that by
being socially responsible an organization can make profit in the long run and at the
same time benefit the society, which I have proved right after in depth secondary and
primary research on the topic. My findings showed me that managers and employees
feel that being socially responsible benefits the organization and at the same time
helps the society. Therefore, I hope my research work will help the readers understand
the importance of this issue and convince them that by being socially responsible they
can actually make our society a better place.

Bibliography
35

Ahmed, Salim. Deputy Manager, Marketing Division, Singer Bangladesh Limited.

Personal Interview. 25 Jul. 2006.
Bowen, Howard. Social Responsibilities of the Businessman. New York: Harper
and Row, 1953.
Hasan, Ibnul. Senior Executive Officer, Nababpur Branch, Dutch-Bangla Bank
Limited. Personal Interview. 27 Jul. 2006.
Imam, Md. Hasan. Corporate Social Responsibility. The Chartered Secretary
VIII (2006): 39-43.
"Introduction to Corporate Social Responsibility." Business for Social
Responsibility 11 May 2001. 3 Aug. 2006.
<http://www.bsr.org/BSRlibrary/TOdetail.cfm?DocumentID=138>.
Kreitner, Robert. Management. 9th ed. New York: Houghton Mifflin Co., 2004.

Phillips, Rachel, and Lisbeth Claus. Corporate Social Responsibility and Global
HR. SHRM Global Forum 23 May 2002. 2 Aug. 2006.
<http://www.shrm.org/global/publications/focus/CSR2002.asp>.

Social Responsibility and U.S. Corporations in Bangladesh. U.S. Trade Center

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