Case study: Corporate Social Responsibility of Dutch Bangla Bank Prepared by:
Prepared for: MjB Course: Mgt-210
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Abstract: In this this arti articl cle, e, we have have trie tried d to give give a comp compar arat ativ ivee pict pictur uree of corp corpor orat atee soci social al responsibilities (CSR) of DBBL. We also defined what corporate social responsibilities and tried to show how important it is in this 21 st century. Along with these, a short description of DBBL’s activities are included to make clear the CSR of its. Throughout the article, the activities of DBBL on CSR have worked as standard and helped in finding the shortcomings of the bodies in Bangla Banglades desh. h. They They have been helpin helping g in tracin tracing g out differ different ent ways ways for improvem improvement ents. s. In conclu conclusio sion n we can say that there there are not only proble problems ms but also opportu opportunit nities ies for furthe further r improvement by the business world of this country in the field of CSR.
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Table of content Topic
Page number
Introduction
4
Corporate social responsibility
5
Views of social responsibility
7
Why are we choosing DBBL
8
Mission, Vision, Objective
9
social responsibility & Economic performance
10
Recognition
14
SWOT assessment
15
Recommendation
17
Conclusion
18
Bibliography
19
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Introduction: Social responsibility is a concept well known in the corporate world and beyond that. Business all over the world have practiced only profit making actions at past but not for long as the enterprise started to develop complexities and wideness in size and actions so was their reach getting bigger and bigger. As every person has his own social responsibilities towards the society so does the business firms. The idea is that, the business has social obligations and above and beyond making a profit is corporate social responsibility. However, it is regretful that though internationally it is being practiced widely, Bangladesh is still lagging behind. The difference between the world standard and the practice in Bangladesh shows the lacking here and the scope for development.
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Corporate Social Responsibility:
Defini Definitel tely y social social respon responsib sibili ility ty includ includes es the respon responsib sibil ility ity of social social people, people, groups groups,, societies, and business organization. Here raises the question: why is there more interest in, and debate about the social responsibility of business and than about the social responsibility of the other institutions? It is of course legitimate to raise the issue of social responsibility of business. But we hear rather less about the social responsibility of, say, the churches, the media, trade unions, the professions, universities, or even the government. When people collectively organize themselves in organizations of one kind or another, do those impersonal legal entities really acquire social responsibilities, which differ from those of other collective entities?
Many people are uneasy about the profit motive, suspecting that profits emerge only from exploitation. They fear that free enterprise encourages greed and selfishness. They are reluctant to accept the logic of Adam Smith’s famous theory of invisible hand, which holds that business people the general interest more effectively by pursuing their own interests than by directly trying to ‘do good’. I suggest that, this is why we are here little about the social responsibilities of churches, charities and so on. Business, in contrast, is assumed to have a problem about its social responsibilities because it is driven d riven by profit-motives.
So it can be said that, Corporate Social Responsibility (CSR) means that companies integrate social and environmental concerns in their business operations and in their interaction with business relevant groups on a voluntary basis.
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In general, CSR is characterized by the following aspects: •
Responsible entrepreneurship
•
Voluntary initiatives going beyond legislative requirements and contractual obligations
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Activities to benefit the employees, business relevant groups (including the society as such) or the environment
•
With a positive contribution to the individual target group while minimizing negative effects on other (including environment)
•
Regular activities rather than one-time-events (i.e. related to business strategy vs. ad hoc)
CSR is not only about fulfilling a duty to society; it should also bring competitive advantage. Through an effective CSR program, companies can: •
improve access to capital
•
sharpen decision-making and reduce risk
•
enhance brand image
•
uncover previously hidden commercial opportunities, including ne w markets
•
reduce costs
•
attract, retain and motivate employees
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Views of Social Responsibility There are two views of social responsibility. Those are •
The Classical View
•
The Socioeconomic view
The Classical View
The view that management only responsibility is to maximize profits. Some big companies such as Beximco Group, Abul Khair Group don’t contribute broadly in corporate social responsibility.
The Socioeconomic View
This is the modern views of today’s global business of economy. In this view management’s social responsibility goes beyond making profit to include protecting and improving society’s welfare. Some companies such as Abdul Monem Limited, Unilever, Dutch Bangla Bank etc. spends huge amount of money for the society.
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Why are we choosing Dutch-Bangla bank (DBBL): Dutc Dutchh-Ba Bang nglla
Bank Bank
Limi Limitted
(DBBL DBBL))
is
Bang Bangllades adesh' h'ss
most most
innov nnovat ativ ivee
and and
technologically advanced bank. DBBL stands to give the most innovative and affordable banking products to Bangladesh. Amongst banks, DBBL is the largest donor in to social causes in Bangladesh. It stands as one of the largest private donors involved in improving the country. DBBL is proud to be associated with helping Bangladesh as well as being a leader in the country's banking sector.
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Mission: Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a commitment to social responsibility. "Profits alone" do not hold a central focus in the Bank's operation; because "man does not live by bread and butter alone".
Vision: Dutch-Bangla Bank dreams of better Bangladesh, where arts and letters, sports and athlet athletics ics,, music music and entert entertain ainment ment,, science science and educat education ion,, health health and hygien hygiene, e, clean clean and pollution free environment and above all a society based on morality and ethics make all our lives worth living. DBBL's essence and ethos rest on a cosmos of creativity and the marvelmagic of a charmed life that abounds with spirit of life and adventures that contributes towards human development.
Core-objectives: Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs and satisfaction and to become beco me their first choice in banking. Taking cue from its pool esteemed clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that upholds and epitomizes its vaunted marquees "Your Trusted Partner"
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Social Responsibilities and Economic performance The ethos of DBBL for pursuing its activities in social arena has got further momentum with your enthusiasm and support. Dutch-Bangla Bank Foundation (DBBF) is consistently pursuing its objective of being active in those social areas where it is needed most. The Foundation carries out diverse social and philanthropic activities in the field of education, health, conservation of o f nature, creation of social awareness, rehabilitation of distressed people and such other programs to redress human sufferings. It also promotes different socio-cultural and sports activities. Board of Directors in order to discharge its corporate social responsibilities in a greater perspective continued its contribution amounting to 5.00% of Bank's profit after charging loan loss provision to Dutch-Bangla Bank Foundation (DBBF).DBBL is socially responsible in various ways. It is helping the society in the following ways:
•
Education
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Health
•
Information technology
•
Disaster
•
Donation
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Here is the description of all the activities of DBBL does as CSR in different field .
Education To grant, pay or give, award scholarship, stipends, prizes, rewards, allowance and other financial assistance or help in cash or kind to students with a view to help them in prose prosecut cuting ing their their study study in univer universit sities ies,, school schools, s, colleg colleges, es, educati educationa onall instit instituti utions ons,, techni technical cal instit instituti utions ons,, art school schools, s, instit instituti utions ons of teachi teaching ng commer commercia ciall and traini training, ng, resear research ch or educat education ional al works works in Bangla Banglades desh h or abroad abroad subjec subjectt to such such terms terms and condi conditi tion onss as shal shalll from from time time to time time be pres prescr crib ibed ed by the the Boar Board d of Trus Truste tees es for for advancement and promotion of education.
Below are some of the recent activities of DBBL in the form of CSR in education Sector. •
DBBL awards Fellowships to pursue M. Phil, Doctoral & Post Doctoral Degree
•
Dutch-Bangla Bank donates Tk. 9.73 crore to Dhaka University
•
DBBL has awarded scholarship to meritorious including 10 physical disabled students
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DBBL has awarded scholarship to 200 meritorious and needy students
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Scholarship program for the meritorious and needy students
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Blind Education and Rehabilitation Organization (BERDO)
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DBBL donates books for Bangabandhu Sheikh Mujib Medical University
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DBBL has donated books for Dhaka University Central Library
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DBBL has donated a Pick-up Van to Bangladesh Agricultural University
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DBBL awards scholarships to the meritorious and needy Students
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Health
To establish, promote, set-up, maintain, assist, financial support and /or aid to or to help in the setting up and / or maintaining and / or running schools and other institutions, orphanages, widow homes, lunatic, asylums, old homes, poor houses or other establishments for relief and / or help to the poor, old and infirm people and / or destitute or to give, provide and / or render help and assistance in cash or kind to poor and or destitute, widows, etc; or to give, provide and I or render help and assistance to and / or implement any scheme for providing livelihood and upliftment of the poor.
Below are some of the recent activities of DBBL in the form of CSR in Health Sector. •
DBBL distributes the Treatment Cards to 50 HIV/AIDS positive patients
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HIV/AIDS Assistance Program
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Smile Brighter Program
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Support to ACID & Dowry Victims
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Vesico Vaginal Fistula (V.V.F) operation to improve women reproductive health
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DBBL donates a DNA detection machine to Bangabandhu Sheikh Mujib Medical University
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DBBL has donated an amount of Tk. 9.36 crore to Diabetic Association of Bangladesh
•
DBBL stands by disabled and underprivileged children
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DBBL has donated an Endoscope machine to National Medical College & Hospital
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DBBL Smile-Brighter program starts in Dhaka City
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DBBL provides medical supports to HIV/AIDS patients
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DBBL has organized a 4 day-long plastic surgery operation in Faridpur
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Information Information Technology Dutch-Bangla Bank Limited (DBBL) undertakes a project with BASIS (Bangladesh Association of Software and Information Services) to award the best IT uses by Bangladeshi companies. In this regards, DBBL's contribution in supporting this event was 50 % of the estimated cost with Tk. 6.25 Lakh.
Disaster To give, provide and / or render monetary and / or other help and assistance for the relief of persons and animals affected by natural and other calamities such as flood, fire, famine, cyclone, earth-quake, storm, accident, pestilence, drought, epidemic, etc.
Below are some of the recent activities of DBBL in the form of CSR during Disaster. •
DBBL has donated Tk. 25 lakh for the victims of devastating landslides in Chittagong
•
DBBL donates 130 bundles of GCI sheets to Noakhali district
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DBBL donates 700 bundles of high grade GCI sheets to Gaibandha and Rangpur districts
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DBBL has distributed blankets among the cold-affected people
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Donation DBBL always donate large sum of money in different organizations, hospitals, sports, etc. Below are the some of the recent and big donation s of DBBL . •
Tk.4 crore for setting up a modem cancer hospital to Ahsania Mission Cancer Society.
•
Tk.1 crore for setting up a modern cancer hospital to Bangladesh Cancer Society.
•
Tk. 3 crore to Bangladesh Olympic Association
•
Tk.1.20 crore for setting up a pediatric hospital to provide service to low income people.
•
Tk.15,00,000/= to Rotary Club of Metropolitan Dhaka to purchase a modern equipment for the hearing impaired children
DBBL Recognition DBBL has received Asian CSR Award-2005
Dutch-Bangla Bank Limited has won Asian A sian CSR Award-2005 for its outstanding program on Corporate Social Responsibility (CSR). Mr. Yeasin Ali, Managing Director, DBBL is seen receiving Asian CSR Award-2005 from the Chief Guest, Dr. Juwono Sundarsono, the Honorable Minister for Defense, the Republic of Indonesia at a ceremony held on September 09, 2005 2 005 in Jakarta.
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SWOT
Assessment
Dutch-Bangla Bank started operation is Bangladesh's first joint venture bank. The focus of the bank has been financing high-growth manufacturing industries in Bangladesh. It was the first bank in Bangladesh to be fully automated. DBBL's other focus is Corporate Social Responsibility (CSR). DBBL is the pioneer in this sector and termed the contribution simply as 'social responsibility'. responsibility'. The company’s strategic goals are:
To delight their customers their customers
To build new era in banking
To expand market boundaries market boundaries
To provide superior superior shareho lders r etu rns and to be a responsi responsible ble
business.
Corporate social Responsibility (CSR) activities require a total understanding of stakeholder stakeholder’’ expectations and DBBL takes actions to meet these expectations where they are are real realis isti ticc and and legi legiti tima mate te.’ .’ The The c o m p a n y a l s o reco recogn gniz izes es the importance of clear sense of corporate corporate vision and values. Its group and local teams work effectively with core business functions to ensure CR is properly managed throughout the entire company.
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Figu Figure re1 1 - summ summar ariz izes es t h e m a i n strengths, weaknesses, opportunities and threats which are assessed below. assessed below.
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Recommendation:
Dutch-Bangla Bank now perform their social responsibility in some selected sector. Its have a separatr foundation called Dutch-Bangla Bank foundation. The bank donates mainly towards social awareness programs, medical and educational fields. DBBL also maintains the largest scholarship program in Bangladesh whereby college/university education tuition and expenses are fully paid for unconditionally by the bank. But they can expand their business and broaden their sector of social social responsibility by the following terms: Primary school sector: primary school sector is very backward in our country. DBBL
can nourish their social responsibility in this root sector. They can offer scholarship or patro patroniz nizee this this sector sector and thus country country can benefit benefited ed as well well as take a role role of social social responsibility by this sector. SME Sector: SME is also a root sector where this bank can apply credit formula or
patronizing this sector. Thus it can probably expand it’s social image. They also can supply credit at a low interest rate that can improve this sector according to it’s social responsibility. Microcredit sector: microcredit is very popular among root people in our country. The
main advantage of microcredit is that a person can take loan without any security. If DBBL starts to give microcredit than it will help the people a lot. On the other hand it will increase the social image of DBBL.
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CONCLUSION: As a third world country Bangladesh has lot of problems. Government often find themselves helpless when it comes to solving of these problems. As business owners of this country are considered as a part of the affluent section of the society they can contribute more meaningfully towards of the betterment of the society. If more company came forward to contribute to the society like DBBL, it will help to create their social branding as well as helping the society. So we can say DBBL is a pioneer in Corporate Social Responsibility in our country.
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Bibliography http://en.wikipedia.org/wiki/Dutch_Bangla_Bank http://www.oppapers.com/essays/Swot/184552 www.dbbl.bd.com Management, 8th Edition; by Stephen P.Robbins/ Mary Coulter
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