A Comparative Study on Corporate Social Responsibility Activities Between Islami Bank Bangladesh Limited and Sonali Bank Limited

Abstract

Corporate Social Responsibility (CSR) has been gaining favorable grounds during last few years in Bangladesh and today it is undoubtedly seen as an integral part of doing business globally. The banking sector has already emerged as the most important player in practicing Corporate Social Responsibility in Bangladesh. It is inspiring to note that Corporate Social Responsibility is being mainstreaming in Bangladesh. In the recent years, there has been a strong emphasis on corporate social responsibility. Corporate Social Responsibility is a concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. Companies also integrate social and environmental concerns in their business operations and interaction with their stakeholders on a voluntary basis. Social responsibility is a concept of giving back to the society what business gets from it. Corporate Social Responsibility (CSR) promotes a vision of business accountability & transparency to a wide range of stakeholders, besides shareholders and investors. Key areas of concern are environmental protection and the wellbeing of employees, the community and civil society in general, both present and in the future. Banks have no exception to this golden principle. Because the duty of the bank is in the nature of trust and they are custodian of public funds. Islamic society not only keeps away the people from acquisition and greediness but also promote generosity and charity as part of their duties. The explicit teaching of Islam is to create brotherhood, love and affection among human beings, cooperation, and a sense of accountability and responsibility for all members of the society. There are a lot of verses in the Holy Quran by which spending of the wealthy people are encouraged for others who are needy. Allah states that the wealth of the rich people should be given to kindred, wayfarers, orphans and the needy so that “it may not (merely) make a circuit between the wealthy among you.” The Prophet (peace be upon him) says “The generous man is near Allah, near Paradise, near men and far from Hell, but the miserly man is far from Allah, far from Paradise, far from men and near Hell. Indeed, an ignorant man who is generous is dearer to Allah than a worshipper who is miserly.” In Islam rendering an account to discharge accountability is identified as part of ibadah (Servitude to Allah) and amal saleh (virtuous deeds) in attaining al-Falah (benefit for the people in this world and the hereafter). According the Holy Quran, Allah will test the solvent people/entity about their Corporate Social Responsibility. So the banking companies which are the super most class of the society based on financial strength must have to perform their corporate social responsibility to change the fate of the disadvantaged class of the society. That‟s why the research title 'A Comparative Study on Corporate Social Responsibility Activities Between Islami Bank Bangladesh Limited and Sonali Bank Limited' is very much rational. The research thesis has been prepared by dividing it into five chapters. In chapter one, the subject matters regarding research reality has been discussed. The subject matters regarding research reality includes Introduction, Research Proposal, Rationality, Objectives, Methodology, Scope, Time Frame and Limitations of the Research, sources & analysis of data and Literature Review. In chapter two, the history & basic concepts of corporate social responsibilities i.e. United Nations initiatives, development era, key milestones of CSR, initiatives, applications, realities and prospects of CSR in Bangladesh, logic for & arguments against CSR, stakeholders, categories and benefits of CSR have been discussed. In chapter three, the history of establishment & development of Islamic banking in Bangladesh & in the World, basic issues of Islamic banking i.e. definition, types, characteristics and impacts of riba and an overview on Islami Bank Bangladesh Limited, Sonali Bank Limited including other full-fledged Islamic banks operating in Bangladesh. In chapter four, the corporate social responsibility activities of Islami Bank Bangladesh Limited and Sonali Bank Limited have been discussed based on six dimensions i.e. Human Resources Development Dimension, Medicare Services Dimension, Environmental and Social Safety Dimension, Humanitarian and Philanthropic Dimension, Financial Inclusion Dimension and Other Dimensions. The CSR expenditure status of IBBL and SBL as per Bangladesh half yearly CSR report has also been presented in this chapter. In chapter five, the collected data have been scrutinized, analyzed and processed to get the findings. To conduct the research, data has been collected from the primary and secondary sources. The primary data has been collected from the beneficiaries, bank officials and experts/scholars etc. through the direct interview and questionnaire method. Therefore, four groups of stakeholders (beneficiaries & employees of IBBL & SBL) have been covered to compare the corporate social responsibility activities of Islami Bank Bangladesh Limited & Sonali Bank Limited. Considering the findings of the research, necessary suggestions and recommendations have been made to improve the CSR performance of Islami Bank Bangladesh Limited & Sonali Bank Limited. Finally, conclusion, survey questionnaires and bibliography have been inserted in this chapter. The banking sector of Bangladesh has been playing a vital role for fostering Corporate Social Responsibility and widening the hands of cooperation for the distressed people of the country. Banking industry is considered as the nucleus of the financial system of any country. As the root of Bangladesh economy, the banking sector of Bangladesh has been playing corporate social responsibility role side by side of its operational roles to be established as a developed economy of the world. Lastly, I do believe that all the concerned groups including the researchers, academicians, policy makers, government, regulators, students and the respective banks will be benefited from this research.