STAMFORD UNIVERSITY BANGLADESH
A Thesis Report on Reporting of Corporate Social Responsibility in Bangladesh
Submitted To: Md. Abdul Mannan Assistant Professor Dept. of Business Administration Stamford University Bangladesh
Submitted By: Newaz Ahmed
ID No: 02205618 Batch: 25 (F) Major in Accounting Department of Business Administration Stamford University Bangladesh
Date of Submission: 13th February, 2010
13th February, 2010
Md. Abdul Mannan Assistant Professor, Department of Business Administration Stamford University Bangladesh. Subject: Submission of Internship Report Dear Sir, Here is the report you requested on 13th February, 2010 on “Reporting of Corporate Social Responsibility in Bangladesh”. I have detailed in this report on various facts related to “Corporate Social Responsibility” (CSR) such as the nature & concept of CSR, evolution of CSR, Current state of CSR practices and Reporting them in the annual reports by the listed companies in Bangladesh. I also provide a summary of OECD Guidelines for Multinational Corporations which can be applied to Bangladeshi Companies. Additionally, I have in addition to measuring the extent and volume of disclosures by using content analysis; I also explore the socio-economic context in which these disclosures take place. I have put some constraints and their probable solution about these constraints for the success of CSR practices and reporting them by the Bangladeshi Companies.
Yours Sincerely Newaz Ahmed ID No: 02205618 Department of Business Administration Stamford University Bangladesh
Student’s Declaration I hereby speak out that the thesis report namely “Reporting of Corporate Social Responsibility in Bangladesh” by me after the finishing of 3 (three) months of an inclusive study of the existing practices of the reporting of corporate social responsibility by the listed companies in Bangladesh. I also declare that this paper is my original worked and prepared for academic purpose which is a part of BBA and The Paper Appear May Not Be Used In Actual Market Scenario.
.......................... Newaz Ahmed Id# BBA 02205618 BBA Program 25 (F) Batch Department of Business Administration Stamford University Bangladesh
II
Supervisor’s Declaration I hereby declare that the concerned report entitled Reporting of “Corporate Social Responsibility in Bangladesh” is an original work by Newaz Ahmed, Id# BBA 02205618, major in Accounting, Department of Business Administration, Stamford University Bangladesh, completed his thesis report under my supervision and submitted for the partial fulfillment of the requirement of the degree of Bachelor of Business administration (BBA) at Stamford University Bangladesh.
.......................... Md. Abdul Mannan Assistant Professor, Department of Business Administration Stamford University Bangladesh.
III
ACKNOWLEDGEMENT I am very much grateful to my honorable supervisor Md. Abdul Mannan for assigning this report and to help me all the way through in completion of this report successfully, which enrich my academic career. I have the pleasure to submit this report on “Corporate Social Responsibility in Bangladesh” for your kind evaluation.
Above all thanks to my friends and relatives who always encourages me to prepare myself to be honest and efficient in my academic and professional career. All the relevant things I have tried our best in order to serve the every objective of this report. To make the best understand of the theoretical portion, relevant tables and diagram has been produced.
And finally, I would like to say that I have tried heart and soul to prepare this report accurately. However, there might be some errors and mistakes due to my limited aptitude and time constraint. In this regard, I seek your kind consideration as I am in the process of learning.
IV
EXECUTIVE SUMMARY
The type and ownership of the business, the economic, social and cultural environment in society differs, but the determination of businesses to play a role in the development of their home country and in others where they trade, is manifest. Companies are expected to play a role as good citizens in making a contribution to the maintenance of the fabric of society that sustains the framework of law and civilization, within which they do business. Now, business organizations are considered as “Corporate Citizens”. They are now emphasizing on adopting social, ethical and environmentally responsible approaches to business activity. Most of the corporate social responsibility (CSR) studies conducted so far have been in the context of developed countries. A very few studies were done related to the developing countries and especially in Bangladeshi context, the number of studies is much inadequate. The main objective of this report is that in addition to measuring the extent and volume of disclosures by using content analysis, it explores the socio-economic context in which these disclosures take place. Human rights violation, child labor, gender discrimination, and environmental pollution- these are considered as very common phenomena in this country. From the analysis it reveals that most of the listed companies in Bangladesh did not provide any information regarding the environment, human resources, community, and consumers in 2008-09. Though some progressive companies disclosed some information, that information was not at all adequate in discharging social responsibilities. All the information provided by these companies was qualitative in nature and the disclosure level was very poor.
V
Table of Contents Particulars
Chapter One: Introductory 1.1: Origin of the Report 1.2: Objectives 1.3: Methodology 1.4: Scope 1.5: Limitations 1.6: Report Preview
Chapter Two: Nature, Concept and Extent of CSR
Page no 1-6 2 3 4 5 5 6 7-28
2.1: Introduction
8
2.2: Literature Review 2.3: Evolution of CSR 2.4: Nature and Concept of CSR 2.5: Why Companies Report CSR?
11
Chapter Three: Overview of the State of CSR in Bangladesh 3.1: Current State of CSR 3.2: Stakeholders Perceptions about CSR
15 19 24 29-38 30 33
3.3: Status of Environmental Reporting in Bangladesh
36
3.4: Corporate Governance and CSR in Bangladesh
37
Chapter Four: OECD Guidelines- One Tool for Corporate Social Accountability
39-65
4.0: OECD Guidelines- One tool for Corporate Social Responsibility
40
4.1: Concepts and Principles
42
4.2: General Policies 4.3: Disclosure 4.4: Employment and Industrial Relations 4.5: Environment 4.6: Combating Bribery 4.7: Consumer Interests 4.8: Science & Technology 4.9 : Competition 4.10 : Taxation 4.2: What is the International Mechanism for implementing the
43 44 46 48 50 52 53 54 55 55
Guidelines? 4.3: A Pyramid of Global CSR as a Framework
Chapter Five: Findings and Analysis 5.1: Separate “Corporate Social Responsibility” Disclosure 5.2: Sustainable Development
5.3: Management System & Certification Schemes 5.4: Employee Relations 5.5: Community Relations 5.6: Shareholder Relations 5.7: Compliance of Corporate Governance 5.8: Environmental Responsibilities 5.9: Welfare Activities & Other Socio-economic Issues 5.10: Technology 5.11: Contribution to National Exchequers 5.12: Business Ethics/ Ethical Standard 5.13: Human Rights 5.14: Legal Compliance 5.15: Fair Employment 5.16: Health & Safety 5.17: Labor Standard Chapter Six: Opportunities and Challenges for CSR in Bangladesh 6.1: CSR Implications and Applications 6.2: CSR for Public Sector 6.3: The Range of Public Sector Activities
6.4: Prospects for the Future Development of CSR 6.5: A Challenge for Companies Everywhere
Chapter Seven: Concluding Part 7.1: Conclusion 7.2: Recommendations
7.3: References Appendix-1 Appendix-2 Appendix-3
60 66-74 67 68 68 69 69 70 70 71 71 72 72 72 73 73 73 73 74 75-88 76 79 83 84 88 89-99 90 91 95 101 102 103
