Socio-Economic Development Through Education: A Study of the Role of CSR with Special Reference to the Commercial Banks

Abstract

The study examines the impact of education on underprivileged students who have been awarded scholarships under corporate social responsibility (CSR) interventions for higher education by banks in Bangladesh. This study aims to explore the dynamics and purpose of CSR activities of banks, the relationships between banks and scholarship awardees, the employment and unemployment conditions of stipend holders after completion of higher education, and the social and economic impact of education among scholarship awardees.

The study has been guided by the gift theories of Marcel Mauss (1924), Katy Gardner (2016), and Marshall Shahlins (1974), as well as works by Schuller et al. (2004), Bag, D.C (1984), Fong & Sung (2011), and Erickson, F (2009) on education as human, social, and identity capital, the impact of education on backward communities, education in migration and upward mobility, and learning as a means of acquiring culture. An integrated methodology combining qualitative and quantitative research methods were used, including various tools and techniques for data collection, data analysis, sampling, and case study, in-depth interview, key informant interviews, and survey methods.

The study covered 100 scholarship awardees for graduation with an equal ratio of male and female through purposive sampling, covering all eight divisions, including 40 districts in Bangladesh. Of the 100 respondents, 51% were from the divisions of Rajshahi and Rangpur, known as north Bengal, which have historically faced financial backwardness known as "monga" for a variety of reasons.

The field of corporate social responsibility (CSR) has become significant issue of discussion in social sciences and business literatures in account of growing contribution of CSR interventions since last few decades. As a result, globally corporate bodies and international development organization has attempted to define 'CSR' and incorporate it into business practices more pragmatic way. Bangladesh Bank, a central bank of the country has formulated guidelines and policies for mainstreaming of CSR activities of banks since 2008 including targeting vulnerable and undernourished men, women, and children living in poverty and underprivileged students and street children. The policy of Bangladesh Bank emphasized CSR interventions in education, health, income-generating activities, and infrastructure development to achieve sustainable development goals such as no poverty, zero hunger, good health and well-being, quality education, and women's empowerment. The study found that the allocation of CSR funds and the activities of banks have gradually increased since its inception, and the education sector gained momentum in CSR fund allocation, reaching 42% in 2018 out of total expenditures. Financial assistance through scholarship is the major way of funddeployment towards underprivileged students for the accomplishment of higher education.

The study found that most of the respondents expressed their deep gratitude, acknowledged the contribution of CSR efforts, and maintained banking relations with scholarship-awarded banks for long time as a sign of loyalty, gratitude, and acknowledgment for extended financial assistance at critical time. The study observed that the majority of respondents have kept their accounts with scholarship-giving banks for a long time.

The study found that education provides students with opportunities for social mobility and enhancetheir social and economic status. The research further revealed that scholarship awardees have a bettechance of employment after completing higher education, which, in turn, contributes to povertalleviation, healthy lives and well-being, easy affordability of education for other members of familychanges of housing pattern, increasing ownership of land, enhance capacity to spend in social ceremonies and participation in community development activities, repayment of loan and savingsincrease per capita income and GDP of respondents, their family and country as a whole.

The study also explored the significant impact of education on the social development of the scholarshiprecipients, their families, and society in the form of human capital, social capital, identity capital,cultural diversity, social status, social awareness, women's empowerment, beliefs and practices oreligion, kinship relations, migration etc.

In conclusion, this study is unique in exploring the dynamics of CSR interventions of banks and the impact of education on social and economic advancement of underprivileged students in Bangladesh.The study provides insights into the allocation of CSR funds and the activities of banks and emphasizethe importance of education as a tool for bringing socio-economic and socio-political inclusion of mass people and improving personal well-being. The findings of the study can be useful for policymakers, researchers, and practitioners in the field of corporate social responsibility, education, and social development.