The purpose of business is to make money. However, the profit motive is sometimes viewed as less than virtuous because it emphasizes self-interest. Nevertheless, self-interest is not the same as selfishness, which emphasizes one's own interests at others' expense. Self interest is simply a concern for financial reward and is arguably necessary if society is to be maximally productive and efficiently allocate its resources. Business is an inseparable and embedded part of the society. In addition to its economic role in society, business also has several other roles and responsibilities towards society viz. responsible conduct of business activities while pursuing economic gains; the social and environmental responsibilities of the business towards its stakeholders; and business’s contributions that would benefit the society at large. Companies around the globe are recognizing the importance of engaging in Corporate Social Responsibility (CSR) that is crucial to their survival and growth. It is evident that when an organization integrates appropriate CSR practices in its strategy that embed the societal and environmental concerns, these practices undoubtedly bring tangible benefits to the business along with a sustainable competitive advantage. It is mandatory for companies to conform to the legal responsibilities as they are prescribed by law. So, organizations have no alternative but to comply with the basic law of the land. On the other hand, Ethical responsibilities of corporations are taken as additional responsibilities going beyond legal compliance and profit making and include those that firms believe are the right things to do. Ethical responsibility originates from humanistic, religious and moral orientation of corporations. The voluntary responsibilities to the society refer to the discretionary nature of obligations rooted in the altruistic principles which are not required by law. The motivation for such sense of responsibilities arises from the reciprocal obligation of giving back to the society in exchange of profit and power that companies receive from society. This school of thought gave rise to CSR which is seen as continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce, their families, local community, and society at all, including the environment. Even though Bangladesh is one of the world’s poorest countries, CSR activities in Bangladesh have risen significantly in importance. It is believed that the interest in CSR initiatives in Bangladesh has been fueled by MNCs’ global activities.

1. 1
Surma Tower, Sylhet
An Assignment onAn Assignment onAn Assignment onAn Assignment on
Present Scenario of Corporate Social ResponsibilitiesPresent Scenario of Corporate Social ResponsibilitiesPresent Scenario of Corporate Social ResponsibilitiesPresent Scenario of Corporate Social Responsibilities in Bangladeshin Bangladeshin Bangladeshin Bangladesh
Course title: Business Ethics and Corporate Social Responsibilities
Course code: BUS-350
Submitted to:
Md. Awal Hossen
Lecturer
Department of Business Administration
Leading University, Sylhet
Prepared by:
Torch Bearer’s
IDIDIDID NameNameNameName
1201010247 Abu Ahmed Shahib
1201010230 Ehsan Ahmed Chowdhury
1201010205 Mahmudul Karim Newaz
1201010248 Syed Ali Hasan
1201010219 Abdul Motin
1101010291 Sourav Roy
1201010202 Masum Hussain
Section: E
Semester: 9th
Batch: 30th
Department of Business Administration
Leading University, Sylhet
Date of Submission: 27 December, 2014

2. 2
AcknowledgementAcknowledgementAcknowledgementAcknowledgement
At first, we are grateful to Almighty Allah for creating us
in such a beautiful country like Bangladesh and also for
controlling our life. For the mercy of Him, we have got such
courage to start this assignment on “Present Scenario of CorporatePresent Scenario of CorporatePresent Scenario of CorporatePresent Scenario of Corporate
Social ResponsibilitiesSocial ResponsibilitiesSocial ResponsibilitiesSocial Responsibilities in Bangladeshin Bangladeshin Bangladeshin Bangladesh’’
After that we would like to give thanks to our honorable
Head of the Department Prof.Prof.Prof.Prof. Dr. Tofayel AhmedDr. Tofayel AhmedDr. Tofayel AhmedDr. Tofayel Ahmed for giving
us the opportunity to study in this subject. We would like to
express our thanks to the librarian of Leading University for all
his help that we have received.
Our respected parents who gave us mental support and
inspiration for our assignment, there is a special thanks for
them.
We also would like to give a lot of thanks to our honorable
course teacher, Md. Awal HossenMd. Awal HossenMd. Awal HossenMd. Awal Hossen for giving us a wonderful
opportunity to make such an interesting and valuable
assignment and giving us a clear concept about the assignment.
At last but not the least, without the help of our friends
and classmates it was quite impossible to prepare such kind of
assignment. They gave us some necessary information about
this topic which was unknown to us. So, we would like to give
thanks to all of them.

3. 3
Abstract
The purpose of business is to make money. However, the profit motive is sometimes viewed
as less than virtuous because it emphasizes self-interest. Nevertheless, self-interest is not the
same as selfishness, which emphasizes one's own interests at others' expense. Self interest is
simply a concern for financial reward and is arguably necessary if society is to be maximally
productive and efficiently allocate its resources. Business is an inseparable and embedded
part of the society. In addition to its economic role in society, business also has several other
roles and responsibilities towards society viz. responsible conduct of business activities while
pursuing economic gains; the social and environmental responsibilities of the business
towards its stakeholders; and business’s contributions that would benefit the society at large.
Companies around the globe are recognizing the importance of engaging in Corporate Social
Responsibility (CSR) that is crucial to their survival and growth. It is evident that when an
organization integrates appropriate CSR practices in its strategy that embed the societal and
environmental concerns, these practices undoubtedly bring tangible benefits to the business
along with a sustainable competitive advantage.
It is mandatory for companies to conform to the legal responsibilities as they are prescribed
by law. So, organizations have no alternative but to comply with the basic law of the land. On
the other hand, Ethical responsibilities of corporations are taken as additional responsibilities
going beyond legal compliance and profit making and include those that firms believe are the
right things to do. Ethical responsibility originates from humanistic, religious and moral
orientation of corporations. The voluntary responsibilities to the society refer to the
discretionary nature of obligations rooted in the altruistic principles which are not required by
law. The motivation for such sense of responsibilities arises from the reciprocal obligation of
giving back to the society in exchange of profit and power that companies receive from
society. This school of thought gave rise to CSR which is seen as continuing commitment by
business to behave ethically and contribute to economic development while improving the
quality of life of the workforce, their families, local community, and society at all, including
the environment. Even though Bangladesh is one of the world’s poorest countries, CSR
activities in Bangladesh have risen significantly in importance. It is believed that the interest
in CSR initiatives in Bangladesh has been fuelled by MNCs’ global activities.
In Bangladesh, there is a consistent need for the Bangladeshi community to live in a safe,
clean and healthy environment. Companies can no longer act as isolated entities that can run
separately from the society and the environment in which they operate and with which they
interact, disregarding the impact of their activities on the economy, the society, and the
environment; these companies are assuming and acknowledging their responsibility not only
towards shareholders through profit maximization but also towards all stakeholders through
enhancing the welfare of the society and adopting environmentally-based behavior.
However, there exists a substantial lack of awareness of CSR among Bangladeshi companies.
The current practices in Bangladesh have suffered from the lack of responsible behavior
towards the employees, the economy, the society, and the environment. Consequently, the
current situation addresses the urgent managers’ need to understand what CSR is and assess
the multiple benefits of its programs, and how they may help and end up in a win-win
situation if CSR is implemented adequately.

4. 4
ContentsContentsContentsContents
SubjectSubjectSubjectSubject page nopage nopage nopage no
1. Definition of Corporate Social Responsibility 5
2. Bangladesh Economy 7
3. Corporate Social Responsibility in Bangladesh 8
4. Components of Corporate Social Responsibility 10
5. Benefits of Corporate Social Responsibility 11
6. Roles of companies in social progress 13
7. A brief profile of GrameenPhone Ltd 15
a. Findings 16
b. Employee Dimension 16
c. Customer Dimension 17
d. Environment and Community care Dimension 17
8. Limitations and Constraints 19
9. Recommendations 21
10. Conclusion 22
11. References 23

5. 5
Definition of Corporate Social ResponsibilityDefinition of Corporate Social ResponsibilityDefinition of Corporate Social ResponsibilityDefinition of Corporate Social Responsibility
There is no universally accepted definition of CSR. There are different type of views on what
CSR is and what it is not. Having become a buzzword in boardrooms and the media, CSR is
more often misunderstood as giving back to the society and considered to be synonymous
with philanthropy. The dominant school of thought is that CSR is no philanthropic activity
and a business must earn for what it invests. The company does it for its own long term good.
Drawing a parallel with Publicity and Public Relations it is argued that philanthropy could
earn publicity but CSR, like Public Relations is a long term investment with assured returns.
It advocates that CSR constitutes a series of initiatives taken by a company in its enlightened
self-interest.
It would be motivating to derive a meaning of the concept with the dissection of each of the
words. CSR is not a difficult concept and can be explained as:
• Corporate - means organized business;
• Social - means everything dealing with people, the society at large;
• Responsibility - means accountability between the two.
Some people define CSR as meaning open and transparent business practices that are based
on ethical values and respect for employees, communities and the environment. It is designed
to deliver sustainable value to the society at large as well as to the shareholders. Now, there is
no single, commonly accepted definition of CSR, even across global corporate bodies. It
refers to business decision making linked to ethical values, compliance with legal
requirements, and respect for people, communities and their environments. CSR is seen as
more than a collection of discrete practices and occasional gestures or initiatives motivated
by marketing, public relations or other business benefits. Rather, it is viewed as a
comprehensive set of policies, practices and programmes that are integrated throughout
business operations and decision-making processes.
Corporate Social Responsibility (CSR) is a reality of recent decades. CSR is the continuing
commitment of business to behave ethically and contribute to economic development while
improving the quality of life of the workforce and their family as well as of the local
community and society at large. Business owes its responsibilities towards society; first as a
result of the impact of its own operations and secondly, as the unit of the society in which it
operates. The former is related to what the organization does to the society by way of its
specific operations, whereas the latter deals with what the society demands from it.
Accordingly, CSR needs to be:
(i) More inwards than outwards,
(ii) More related to the character and culture of the corporate rather than its size or
profitability,
(iii)More related to making and distributing profits and sustainability,
(iv) More business process oriented than philanthropic,
(iv)Focused on day to day activities by every employee of the organization rather than
limited to the typical presence of key individuals in the company along with the
various social partners of the corporate. CSR appears in many forms some are
directly related to employees and their families whereas some others point
towards outside workplace without any connection to its employees. It takes
various forms such as:

6. 6
• Corporate Philanthropy
• Corporate Support
• Sponsorship
• Corporate Partnerships
• Responding in Emergency
CSR also refers to business decision making linked to ethical values, compliance with legal
requirements and respect for people, communities and the environment. It is a comprehensive
set of policies, practices and programmes that are integrated throughout business operations
and decision-making processes that are supported and rewarded by the top management.
Though various definitions have been attached to the term, it can be stated that CSR, in its
broadest sense, delineates the relationship between business and society and the role of
business in sustainable development. The fundamental idea behind CSR is that a corporation
or company incurs responsibilities to society beyond maximization of profit and beyond
meeting the minimal requirement of the law. CSR also has numerous facets. Corporations are
overwhelmed by many issues in the name of CSR: stakeholder demands, environmental
issues, issues of sustainability, diversity, labour conditions, ethical investment, and
philanthropy among others. Clearly, there is no one agreed concept. An important distinction
should be made, however, between internal and external CSR practices.
Internal CSR refers to programmes that focus on the core business and on the workforce,
such as:
• Human Resources (HR) practices
• Health, Safety and Environmental ( HSE) practices
• Codes of Conduct
• Fulfilling and Motivating Work Environment
• Employee Development Programmes
• Local Content Policies
• Assessing and Increasing the Social and Environmental Impact of a Company
• Environmental Management Systems ( EMS)
• Product Responsibility
External CSR refers to social and environmental programmes directed towards the external
environment, including:
• Community development programmes
• Sponsorships corporate SOCIAL responsibility
• Donations
• Contributions to Civil Society Organizations ( CCSO)
• Educational programmes at various levels
• Supply -chain management
• Cluster development
• Involvement in the development debate

7. 7
Bangladesh Economy:Bangladesh Economy:Bangladesh Economy:Bangladesh Economy:
Bangladesh is a developing country, with per capita income of just about $1,190 US/year.
Nevertheless, the economy is growing rapidly, with a 5-6% annual growth rate from 1996 to
2008 (BMZ, 2010). The economic growth has averaged roughly six percent since 2004.
However, the economic development is one of the prime factors, which can resolve many of
its current problems. The growth of businesses the market economies have created great
opportunities for Bangladesh for further development. Economic development refers to
changes that affect a local economy's capacity to create wealth for local residents. From 1990
Bangladesh commenced a move towards a free market economy. A floating exchange rate
mechanism was introduced from 2003. Yet the capital market in Bangladesh is
underdeveloped. The market lacks appropriate laws, transparency and the corporate
disclosure system is faulty. It provides little protection to minority share holders' rights and
often action against listed companies is difficult.
Although the country is moving towards a free market economy neither government nor
private initiatives have been sufficient to promote good corporate governance leading to an
acceptable level of corporate social responsibility. As a member of the global economy,
Bangladesh is also aware of the need to take positive initiative to establish an image of
environmentally and socially responsible businesses.
CSR as a concept is being gradually interwoven into the psyche of local business, however,
the process is slow and only in its infancy. The primary and most important benefit from
implementing mechanisms such as a code of corporate governance is likely to be felt at the
national level with an improved global perception of Bangladeshi business procedures
including improved ethical business practices. In turn, this could lead to a process of
revitalization of the Bangladeshi economy.
Many of the companies carrying out CSR activities are members of textile associations such
as the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA). Though the
government has no explicit policy on CSR, Bangladesh Bank has made it mandatory for
Banks to practice CSR, and some of the ministries, such as the Ministry of Commerce and the
Ministry of Information, are encouraging private industry to engage in CSR activities, which
are also tax deductible.
Companies also enjoy the support of two private institutions with CSR expertise: the
Bangladesh Enterprise Institute (BEI) and the CSR Center Bangladesh. The BEI facilitates
partnerships and programs in the private sector that are working to achieve Bangladesh's
development goals, and it also organizes the local Global Compact network. According to the
Bangladesh Enterprise Institute (2004) there are numerous potential benefits and rewards for
Bangladesh by improving corporate governance, including corporate social responsibility,
practices. Moreover companies are not adequately implementing social and environmental
standards and provide tools to help them improve their performance. It also serves as a

8. 8
network for the exchange of views and experiences. Both institutions provide a good contact
point for companies seeking to become involved in CSR activities in Bangladesh.
Corporate Social Responsibilities in BangladeshCorporate Social Responsibilities in BangladeshCorporate Social Responsibilities in BangladeshCorporate Social Responsibilities in Bangladesh
CSR concepts and practices in Bangladesh have a long history of philanthropic activities
from time immemorial. These philanthropic activities included donations to different
charitable organizations, poor people and religious institutions. Till now, most of the
businesses in Bangladesh are family owned and first generation businesses. They are
involved in community development work in the form of charity without having any definite
policy regarding the expenses or any concrete motive regarding financial gains in many
instances. Moreover, most of the SMEs fall under the informal sector having low
management structure and resources to address the social and environmental issues. These
limitations drive the top management of local companies to think only about the profit
maximization rather than doing business considering the triple bottom line: profit, planet and
people.
The discussions on CSR practices in Bangladesh in its modern global terms, are relatively
new, but not so for the concept itself. Because, being a part of the global market, it is difficult
to ignore CSR standard specifically in the export sector. In general, it is true that in
Bangladesh, the status of labor rights practices, environmental management and transparency
in corporate governance are not satisfactory, largely due to poor enforcement of existing laws
and inadequate pressure from civil society and interest groups like Consumer Forums.
Globally, as CSR practices are gradually being integrated into international business practices
and hence is becoming one of the determining factors for market accesses, it is becoming
equally instrumental for local acceptability. A focus on CSR in Bangladesh would be useful,
not only for improving corporate governance, labor rights, work place safety, fair treatment
of workers, community development and environment management, but also for
industrialization and ensuring global market access.
Since, CSR entails working with stakeholders it is important to work from within and
diagnose the stakeholders; concerns so that CSR is truly embedded in the companies. By
now, many CSR dimensions are practiced in Bangladesh. The SMEs largely depend upon
export. The US and EU buyers set guidelines to Readymade Garment (RMG) industry to
ensure the standards. The 1992 Harkin's Bill and subsequent consumer and industry boycott
of RMG products by USA and the consequent remedial moves by local RMG sector is one
example. Moreover, some buyers from EU visited the sites of recently collapsed garments
factories. A temporary ban was also imposed on shrimp export to the EU on health and
hygienic standard and appropriate remedial action followed in that instance too. But, some of
the exporters found difficulty in convincing the US/EU buyers to have positive attitude
towards Bangladesh due to inadequate CSR practices.
Businessmen need to recognize the implications of CSR for business activities. Companies
are facing the challenges of adapting effectively to the changing environment in the context
of globalization and in particular in the export sector. Although Consumer Rights Movement,
enforcement of government regulations and a structured view regarding the economic
importance of CRS are not yet so widespread in the corporate world in Bangladesh,
companies have gradually been attaching more importance to CSR in the local market as
well. They are increasingly aware that CSR can be of direct economic value. Companies can
contribute to social and environmental objectives, through integrating CSR as a strategic
investment into their core business strategy, management instruments and operations. This is

9. 9
an investment, not a cost, much like quality management. So, business organizations can
thereby have an inclusive financial, commercial and social approach, leading to a long term
strategy minimizing risks linked to uncertainty.
CSR in Bangladesh can also contribute a lot to community development. The corporate house
can develop the community by creating employment, providing primary education,
contribution to infrastructure development like road and high-ways and addressing
environmental concerns. This is more relevant for a country like Bangladesh where the
government interventions in these fields augmented by corporate alliance can go a long way
in developing the economy, society and environment.
Lack of enforcement of Industrial Laws and Regulations, weak unions, absence of consumer
rights groups and high level of corruption within the regulatory bodies make CSR violation
rampant in Bangladesh. Two most significant foreign exchange sources is the RMG sector
and the overseas manpower export. Unbelievably low compensation, working hours,
health/hygiene/sanitation conditions, fire safety and various types of abuse are so common
and to the extent of inhumanity that will shock any conscientious individual to the core.
Recently, the RMG sector employees have embarked on a industry wide movement to
establish their rights.
Overseas workers are mostly exploited by recruiting agencies whereas these rural and mostly
illiterate people have to sell all their belongings becoming paupers and borrow money at very
high interest. Owing to cheating by the recruiters and unlawful behavior by the overseas
employers, many of them are compelled to come back as beggars, some after long
confinement in overseas jails. Hardly any remedy is available from the law enforcing
agencies. Many industrial units run with half-century old machinery producing fatal air, soil
and water pollutions. More modern factories also don't care to install Effluent Treatment
Plants. Starting from FMCGs, vegetables, fruits and all other consumable goods, adulteration,
abnormal ripening at times with poisonous elements, keeping fish fresh with applying deadly
formalin and all other malpractice is rampant and carefree. Good governance and efficient
law enforcing agencies can only solve these plights.
Although a developing country, because of global competitiveness and demand, the CSR
practices and standards are being gradually implemented in Bangladesh. But there is a long
way to go. There are challenges to implement CSR properly in Bangladesh. Ultimately CSR
practices should be better practiced in Bangladesh for better and enhanced performance. In
the publication "Good Governance and Market-Based Reforms: A Study of Bangladesh, Fara
Azmat and Ken Coghill relates Good Governance with CSR by discussing the good
governance indicators of regulatory quality, rule of law and control of corruption in the
context of Bangladesh and analyses how lack of good governance indicators affects the
success and sustainability of reforms and contributes to the lack of business ethics and CSR
in Bangladesh.
Components of Corporate Social ResponsibilityComponents of Corporate Social ResponsibilityComponents of Corporate Social ResponsibilityComponents of Corporate Social Responsibility
Corporate Social Responsibility is integrating the economic, legal, ethical and philanthropic
dimensions expected from organizations by the society in a provided timeframe. It’s
components are exposed below:
1. The Economic Component
First, organizations are the basic economic unit in the society. Intrinsically, companies are
responsible for producing goods and services that meet the needs of society, and later selling

10. 10
these goods in order to make a profit. Companies should be managed in an economically
sustainable way. They should satisfy their agreements with suppliers in time; they should also
remunerate their employees properly, etc. The latter could be a hard task when the companies
in question are having financial difficulties.
2. The Legal Component
Besides the fact that society presumes businesses to have profit, it similarly expects them to
obey the law. The law embodies the rules by which companies are expected to operate upon.
The minimum acceptable requirements in CSR are to adhere to legal requirements.
Eventually, CSR strategies should go beyond the basic requirements. The other two
components or accountabilities illustrate Carroll’s attempt to stipulate the type or nature of
the responsibilities that rise above the mere compliance with the law.
3. The Ethical Component
Carroll emphasized the ethical component of CSR. Ethical responsibilities are expected by
society yet not codified by law. “Ethical responsibilities embody those standards, norms, or
expectations that reflect a concern for what consumers, employees, shareholders, and the
community regard as fair, just, or in keeping with the respect or protection of stakeholders'
moral rights”. Moral values or ethics simply denote the essence of the organization and its
constituent integral parts. Moreover, the business ethics movement has firmly established an
ethical responsibility as a legitimate CSR component.
4. The Philanthropic or Discretionary Component
Lastly, philanthropic or discretionary responsibilities are those particular undertakings and
activities that promote human welfare or goodwill, and which are driven by the aspiration of
businesses to attain social roles that are not required by law and not expected under any
ethical perspective, though they are increasingly strategic and positions the company as a
good corporate citizen. The discretionary responsibilities include, but are not limited to,
philanthropic contributions, financial donations, training of long-standing unemployed,
offering day care for working mothers.
Benefits ofBenefits ofBenefits ofBenefits of Corporate Social ResponsibilityCorporate Social ResponsibilityCorporate Social ResponsibilityCorporate Social Responsibility
Most of the companies that are introducing CSR programs to their businesses are gaining real
and tangible benefits that are in turn impacting positively employees and consumers, as well
as the community and environment in general in many aspects. It is true that such programs
are very costly, but when a cost-benefit analysis is done, short-term and long-term benefits
associated with the implementation of the right CSR programs are found to offset the costs.
These benefits are summarized below:
1: Better business risk management.
Effective management of business risks emanating from the external business environment,
with larger oversight and stakeholder inspection of corporate activities, can enhance the
security of supply and generally market stability. Taking into account the interests of
members concerned about a firm's impact is one proactive approach of anticipating and
managing risk.
2: Improved organizational image.
Reputation of an organization can be greatly improved either with retail brands which is of
high value and/or organizations under the spotlight or with organizations that have indirect
exposure of retails. Values such as credibility and quality are foundations of reputation.
3: Enhanced Talent Management ability.

11. 11
Recruitment and development of staff are enhanced. This can be due to a dignified sense in
the organization’s merchandise and customs and also the result of its operations that
improves the employees’ moral sense and their loyalty.
4: Improved innovation, competitiveness and market positioning.
New markets are better accessed, due from the organization’s innovation and differentiation
of its products and its sound CSR practices.
5: Enhanced operational efficiencies and cost savings.
More efficient organizational operations and cost savings which may result from systematic
approaches that involve constant improvement and bring in changes from wastes to revenues.
6: Improved management of supply chain relationships.
Inter-organizational relationships are strengthened, so as to yield a more profitable deal with
suppliers. To attain this stage, both workers’ and suppliers’ compliance to the organization’s
codes and ethics is required.
7: Enhanced ability to manage change.
A firm that keeps consistent stakeholder dialogue is in a more favorable position to anticipate
and attend to regulatory, economic, social and environmental changes that may arise. CSR is
a tool that helps companies identifies evolving trends in the marketplace.
8: Building Corporate Social Capital in the community.
Disseminating company’s information, including its goals and activities, leads to better
stakeholders’ relations which may consequently develop into stronger and long-term public,
private and civil society alliances.
9: Access to capital.
Better capital access. Financial institutions who are believers of the socio-environmental
criteria may support organizations with similar views. Therefore, providers of capital will
rely on efficient CSR management indicators.
10: Improved relations with regulators.
Regulators’ approval processes are made easier to companies who have made socio-
environmental operations beyond what the regulation requires, yielding to a better corporate
reputation and having close and invaluable interactions.
11: Acting as catalyst for responsible consumption.
Firms with CSR strategies should assume their active role in supporting sustainable
consumption patterns and lifestyles through the products and services they deliver and their
production processes. Responsible consumerism does not only consist of altering consumers’
preferences but also viewing the nature of the supplied goods, their correlation to consumers’
rights and sustainability concerns, and how regulatory authorities manage the relationship
between producers and consumers
Benefits to the Community and the General Public
According to the International Institute for Sustainable Development (2012), positive
outcomes that arise when businesses adopt a policy of social responsibility are not only
viewed on the business level, but also on the community and the general public level. The
main CSR benefits to the community and general public are
• Charitable contributions
• Employee volunteer programs
• Corporate involvement in community education, employment and homelessness
programs
• Product safety and quality

12. 12
Environmental Benefits
The International Institute for Sustainable Development (2012) believes that in addition to the
benefits that CSR offers to the community and general public, there are also environmental
benefits that arise from the adoption and implementation of CSR. The main CSR
environmental benefits are
• Greater material recyclability
• Better product durability and functionality
• Greater use of renewable resources
• Integration of environmental management tools into business plans, including life-
cycle assessment and costing, environmental management standards, and eco-labeling
Roles of companies in socRoles of companies in socRoles of companies in socRoles of companies in social progressial progressial progressial progress
The social commitment of companies is diverse and innovative. The measures provide
benefits not only for the common good, but also within companies. In order to enable growth
and prosperity in the future as well, the most important aspect at the moment is to take
advantage of the employment potentials that exist in Germany - the key words here include
the improved reconciliation of family and working life or the employment of older workers.
Safeguarding the potential of skilled employees is an integral part of sustainable corporate
governance and an expression of the practiced corporate culture. Because the quality of
corporate governance is critical to attracting and retaining talent. Close employee retention
contributes to corporate success and is an important competitive factor. In turn, employees
also benefit from good conditions of employment, flexible and family-friendly working hours
or from specific opportunities for promotion and training: this is where companies become
involved in the social aspects of corporate citizenship.
For companies, the advancement and qualification of their own employees is a top priority:
96 percent1 of companies are already committed to this, with 38 per cent intending to step up
their involvement in the future even more. This shows that as a result of demographic change,
companies are taking significant steps to ensure that they have sufficient numbers of skilled
employees. Such support is often addressed to weak young people with low levels of
education. For these young people, companies arrange extra tuition to enable them to take
part in vocational training. But talented young people can also receive support from the
companies in the form of the dual study programme.
In addition, companies are taking steps to maintain the employability of employees. More
further training opportunities are an important part of safeguarding skilled employees and
maintaining competitiveness. In this way the further training rate of older workers in
particular can be increased even more, while the low-skilled can be developed as an untapped
manpower reserve. Overall, the following applies: satisfied employees stay with the company
for longer.
The companies attach great importance to supporting the youth work in the region. 86
percent are already active in this field, while five percent are planning to become so in the
future. This will also help to secure the subsequent supply of skilled employees. The
companies are involved, for example, in partnerships with schools, offering work experience
during the professional orientation phase or promoting the scientific, technical education of
pupils.
The improved reconciliation of work and family life is also very high on the agenda.
Almost all companies (95 per cent) are already in the process of taking appropriate measures

13. 13
(36 per cent even want to increase their efforts in this field in the future). This helps to
leverage employment potential and retain employees. In addition to all of the commitment
shown by companies and flexible working hours, the main precondition for this however is a
demand-based care infrastructure.
A measure of high priority for employees is health care measures (90 per cent) - with the
figure increasing (another six per cent are planning future measures at least in this area). A
high level of level of absenteeism due to illness is not in the interests of a company. For this
reason, investments in health management pay off for companies. Corresponding
precautionary measures include exercise and stress management training, addiction
counseling or courses on healthy eating. The companies are also increasingly forming mixed
age groups of employees.
The energy revolution and shortage of raw materials are leaving their mark on the
environmental activities of companies: nine out of ten companies are committed to the field
of source efficiency. 41 per cent of companies plan to be even more careful in their handling
of natural resources in the future - fully in keeping with the assumption of responsibility
towards future generations. Companies practice the careful handling of resources in different
ways: they are reducing the use of natural resources and raw materials in production,
substituting difficult-to-access raw materials with alternative substances or recycling
materials. This includes measures in the production process, but also more efficient methods
to reduce water and energy consumption and resource-saving business models, such as the
leasing of investment and consumer goods.
A high proportion of businesses (84 per cent) promote the diversity of their workforce, for
example by specifically recruiting employees with a migration background and forming
intercultural teams. The simplified recognition of foreign professional qualifications has
therefore come at just the right 1 Share of "yes" responses, the sum total of the "even more in
the future" share and the "as much as now" share. 10 time for companies. Many companies
offer these employees specialist further training and job related language training so that they
can become quickly integrated. People with disabilities also improve their prospects by being
employed at companies.
For 86 per cent of companies promoting culture in the regions is also important. Here,
culture is not only an economic and locational factor, but also has fundamental importance
for society: without a cultural life, society becomes impoverished. The interest of business in
a vibrant cultural scene is clearly demonstrated by the high level of volunteer commitment at
many companies to culture, its institutions and artists. One frequent form of support is also
the activities of business-related foundations. In addition to the environment of the location,
supporting culture can also have a positive impact on companies by strengthening customer
and employee loyalty and proving a significant advantage in the "war for talents".
For many companies, social responsibility starts right outside the front door of their
headquarters: in the local sports clubs it is possible to live out and train team spirit,
performance orientation and the spirit of togetherness. The commitment of companies to the
local population is mainly reflected in the sponsoring of sport in the home clubs. For 76 per
cent of companies, the promotion of sport is a traditional aspect of their social commitment.

14. 14
Voluntary corporate programmes benefit employees, companies and the common good.
According to the survey, 76 per cent of companies support the volunteering activities of
their employees, while eight per cent intend to do so in the future. As part of these activities,
employees develop a strong sense of responsibility, exhibit team spirit and benefit from new
experiences outside of their field of work. Ultimately this promotes loyalty to the company.
In turn, businesses raise their profile as a responsible company as perceived by the public,
employees, customers and job applicants.
For companies, one important strategic concern is to prevent corruption in business life: 76
percent of companies state that they are already developing compliance structures within the
company that go beyond legal requirements in order to sensitize employees and assist the
authorities in the detection of cases of corruption. Companies are aware that particularly in
developing and emerging countries, corrupt structures pose a threat to entire economies.
Because anyone who pays once keeps on paying. This results in additional costs which are
ultimately paid by the consumer. The fight against corruption therefore makes an important
contribution to sustainable development.
Supply chain management is taking on increasing significance for internationally active
companies. The issues to be addressed range from the observance of human rights,
environmental protection and product safety to corporate governance. Any violations which
are revealed in this field can jeopardize the value of a brand in an instant. It is therefore
important for companies to check their suppliers, especially when they work together with
partners in developing countries. Because pressure from customers, shareholders and society
to become more environmentally friendly and comply with social standards is increasing.
This development is also reflected in the companies' responses: 69 per cent say yes to the
question of whether they choose suppliers who produce in a socially and environmentally
responsible manner. 28 per cent want to select their suppliers in the future even more strongly
in accordance with these criteria. 16 per cent do not do so yet, but intend to in the future. This
high percentage indicates that companies are adjusting to the changing conditions here.
A brief profile of GrameenPhone LtdA brief profile of GrameenPhone LtdA brief profile of GrameenPhone LtdA brief profile of GrameenPhone Ltd
The company has so far invested more than BDT 10,700 crore (USD 1.6 billion) to build the
network infrastructure since its inception in 1997. Grameenphone is also one the largest
taxpayers in the country, having contributed nearly BDT 7000 crore in direct and indirect
taxes to the Government Exchequer over the years. Since its inception in March 1997,
Grameenphone has built the largest cellular network in the country with over 10,000 base
stations in more than 5700 locations. GP has generated direct and indirect employment for a
large number of people over the years. The company presently has more than 5,000 full and
temporary employees. GrameenPhone Ltd. Recognizes ‘Development is a journey, not a
destination’. In this connection, it is always believed that good development is good business.
While it maintains business focus, taking the nation forward remains top priority. Thus its
relationship with Bangladesh is built on a partnership which strives to achieve common
economic and social goals. GrameenPhone Ltd. has consolidated social investment initiatives
in four core areas related to the Millennium Development Goals namely, Poverty alleviation,
Healthcare, Empowerment and Education.
FindingsFindingsFindingsFindings
The data reveal a variety of CSR practices within the MNC, as well as systematic variation in
global management of CSR practices. Several CSR practices were globally managed across
the MNC levels; and several CSR practices differed across the MNC units or were specific to

15. 15
the local operations. CSR practices within the MNC varied across the stakeholder dimensions
and within stakeholder groups.
In the vision, mission and goals statements this MNC stated their business objectives were to
contribute to the wider societal benefit as well as to business returns. At the policy level the
MNC made a commitment to CSR in all their operations. For example, addressed the future
viability of its business; the caring role of the company and stated its community relations
and environment policy. Corporate citizenship was considered as the part of the company's
values statement. For example: In devising business policy and profitability GrameenPhone
stated their CSR as:
“Development is a journey, not a destination. Our work is not just about ensuring
connectivity; it is about connecting with people and building relationships, based on trust,
with our subscribers, business partners, employees, shareholders, as well as the wider
community. We have always believed that good development is good business.”
Along with providing telecommunication services to over 9 million people, providing direct
income-earning opportunities a large number of people and being one of the top corporate
taxpayers in the country, GrameenPhone takes its CSR activities quite seriously.
Environment, health and safety performance for the group and its initiatives to protect
biodiversity, and transparency of R&D are taken into consideration while devising company
policies. CSR practices of the MNC addressed socio-political, ecological, and environmental
issues at the corporate level. The MNC does not have synchronised collaboration and does
not partner with governments and nongovernment organizations substantially to address
negative impacts of business activities and to solve several social problems. This paper
organizes discussion around different dimensions of CSR; namely Employee Dimension,
Customer Dimension, Environment and community care Dimension.
EEEEmployee Dimensionmployee Dimensionmployee Dimensionmployee Dimension
While the HR functions tend to be largely decentralized and more locally managed in
GrameenPhone, the Head Quarter (HQ) have significant involvement in the management of
some HR-related CSR practices in their global operations, often to varying extents of
effectiveness. For example, GP’s global policies for equal opportunities, bullying and
harassment were available across the global operations through the company’s intranet.
On the other hand, CSR in most HR practices was largely locally managed. For example, in
GrameenPhone equal opportunity practices, salary and benefits packages, or training and
development of employees were largely locally managed by local offices, often with a close
involvement of the Regional Offices. In developing human resources Grameenphone strives
towards developing not only local but also global competencies. It has a promise to provide a
positive, friendly, productive, and respectful work environment. GrameenPhone in their value
statement says about commitment towards its employees – “The grameenPhone has
consistently demonstrated its commitment towards its employees and the environment over
the years. It has been recognized as the practitioner and promoter of socially responsible
business behaviour.”
Customer DCustomer DCustomer DCustomer Dimensionimensionimensionimension
Marketing, like human resource management, is often decentralized in the MNCs in order for
the local units to meet the differentiated needs of the local customers. The MNCs in this
study illustrate variety of integration of CSR in global marketing practices. In
GrameenPhone, CSR towards customers significantly involved the HQ through centralized or
integrated management. Customer safety and security in GrameenPhone were centrally co -
ordinated through routines set by the HQ based on global regulations. In addition, the
national regulations and norms were followed by the units. Customer feedback procedures

16. 16
comprised a mix of formal routines set by the HQ. Customer satisfaction and customer
relations were globally managed through centralized IT networked processes. The brands and
various point-of-contact practices were customised through global and local manuals and
guidelines alongside which the local norms and approaches were also informally followed by
GrameenPhone’s units.
Now a days customers and the business look beyond just the product and services.
GrameenPhone recognizes essential correlation between connectivity and development. They
have connected more than 20 million people all over the country. It made the access to
information available to the people who had little access before intern which tends to
transform lives in a holistic way. For example, the village phone is believed to bring both
social and economic empowerment to the rural women as it contributed to gaining economic
strength.
EEEEnvironment and Community care Dimensionnvironment and Community care Dimensionnvironment and Community care Dimensionnvironment and Community care Dimension
The existing discussions of environment care management in MNC operations place the
responsibility for environment care somewhere between the HQ’s and the local operations.
The HQs took several measures to ensure implementation of environment care at the local
sites either directly by the HQ, or by the local units. GrameenPhone’s central unit centrally
reports their global environment care performance. In addition, the company’s local units
reported their environment care initiatives locally.
Environment care in GrameenPhone is integrated by the HQ into functional areas, viz. global
procurement, product design, and technical operations. Company’s annual report provided
details of the regular monitoring and measure of the key characteristics of its activities that
may impact the environment in global operations.
These included reporting on compliance of international and local regulation several local
issues in Bangladesh, such as addressing local cultural influences. GrameenPhone has
involved in a variety of wider environment care activities, e.g., initiatives to promote
responsible operation like free health care, tree plantation, preservation of ecosystems and
partnership with the government agencies for saving environment. These policies were
directly managed centrally but considering indigenous factors. Environment care in global
operations of GrameenPhone involved extensively integrated multilevel internal reporting
and audit. These systems operated alongside processes for participating voluntarily in
numerous local environment care issues.
Community care by firms is typically localized at the sites of operation, i.e., the HQ and the
subsidiaries in the case of MNCs. The MNC studied here revealed several patterns of
localization and centralization of community work. Operations in Bangladesh of the MNC
have several impressive community care activities to their credit. GrameenPhone has
considered Health is one of the key focus areas and consolidated its social investments. In
collaboration with USAID GrameenPhone has established a network of 318 smiling sun
clinics in 61 districts. They also launched the GrameenPhone safe motherhood and infant care
projects for economically disadvantaged mothers and their infants nationwide.
GrameenPhone adopted several other community care initiatives throughout Bangladesh. Its
local unit conducts charity and community support activities locally without much
involvement of HQ. GrameenPhone reports centrally, its worldwide community activities.
Some CSR practices were shared across HQs and its international units, e.g., the campaigns
against counterfeit drugs, HIV-AIDS. CSR practices were integrated into customer service,
marketing, GrameenPhone information services, and quality procedures. GrameenPhone’s
units locally undertook activities such as innovative rural marketing for providing access to
avail technology for the poor people in remote villages.

17. 17
Considering education as the basic human rights GrameenPhone has considered it as one of
the key focus areas in social investment. GrameenPhone provides 100 merit scholarships to
meritorious but underprivileged students at different academic levels in collaboration with
‘Grameen Shikkha’ a project of Grameen Bank. It also helps financially a number of special
schools with a view to support in the learning process of the gifted children in our society.
Grameenphone is also a proud partner of the enrichment program of ‘Bishsho Shahitto
Kendro’ through which free books are distributed.
In all countries, the law stipulated the conduct of employment relationships, but the varying
scope of regulation across countries resulted in diverse behaviour across the units within the
MNC. For example, the working time, pay determination, recognition of employee unions,
consultative structures, and redundancy provisions, were defined by local legislation.
Furthermore, many practices, though designed to be managed transnational, could not be
implemented in the global operations, as these did not appear to ‘fit’ with the cultural or
institutional contexts of the subsidiaries. GrameenPhone appears to be equal opportunity
employer and find employee counseling, bullying and grievance procedures, or the Customer
Listening Forums promoted by the HQ to ‘fit’ with the local business environment.
The above analysis of empirical findings across global and local CSR practices in the MNCs
reveals a fine-grained interplay of global, national-home country, host-country level
environmental factors, and firm’s strategic choices and design for the management of CSR in
global operations. This study suggests that the normative prescriptions for increased global
CSR benefit from the recognition that global management of CSR requires strategic and
systematic design for global management of CSR practices. Furthermore, the study suggests
global CSR requires supportive environmental factors throughout the MNCs’ multilevel
environment, i.e., the regulatory, normative and cognitive elements of the institutional
environments at multiple levels of the MNC need to collectively support CSR practices for
their global management. While the present study has supplied useful information about CSR
Practices in Bangladesh, it has several limitations that must be acknowledged. Annual
Reports analyzed did not provide sector specific (CSR) expenditure in the income statement.
Therefore, the researchers had to rely on interview and other CSR publications for analysis.
Limitations and ConstraintsLimitations and ConstraintsLimitations and ConstraintsLimitations and Constraints
Main CSR limitations could be summarized in the lack of awareness of the CSR is, the
unavailability of time and financial resources to contribute to CSR, and the lack of interest
and desire to respond to CSR’s regulations.
a) Lack of Awareness about CSR
Some small businesses are not aware of what CSR stands for, and have little or no
understanding of the concept; hence, it is not included in the scope of their activities and
operations. Some companies may be aware of it yet they view it as a superfluity, “a luxury
which they cannot afford especially in difficult economic times”. In such a case, the costs
associated with CSR programs’ implementation are the main obstacle to integrate new CSR
policies and initiatives in the business. In this context, companies with limited resources are
most likely to consider the high costs of such programs rather than the outweighing benefits
such as increased productivity, employee retention that may offset the costs incurred.
b) The Free Market Perspective as a Limitation
The Free Market perspective also draws a limitation on CSR as it is viewed as
disadvantageous for the following reasons which are intrinsic to the Free Market perspective:
• The only social responsibility of business is to create shareholder wealth.

18. 18
• The efficient use of resources will be reduced if businesses are restricted in how they
can conduct their affairs.
• The pursuit of social goals dilutes businesses’ primary purpose.
• Costs will be passed on to customers.
• It will reduce economic efficiency and profit.
• Directors have a legal obligation to manage the company in the interest of the
shareholders-and not for other stakeholders.
• CSR behavior imposes additional costs which reduce competitiveness.
• CSR places unwelcome responsibilities on businesses rather than on the government
or individuals.
c) Predefined Initiatives
Barriers are present along the CSR life cycle, that is, in the company’s standpoint about CSR
and its resources availability conditions, in the process of creating and designing effective
CSR policies and programs, and in the companies’ implementation of the predefined
initiatives. In fact, translating written policies and putting programs into reality is a very
challenging task that requires the firm to identify a senior official or committee to be
responsible for the CSR implementation, and for allocating the various resources necessary to
implement such programs. Specific departments, who have CSR assignments such as
environmental, health and safety protection, worker relations, supplier relations, community
relations, customer relations etc., must report to the assigned senior official or committee.
CSR responsibilities must be integrated into the job descriptions and performance appraisal
systems within the company.
d) Lack of Recognition of CSR by the Top Administrators
Particularly top managers may not recognize the importance of CSR programs; they may
underestimate this issue, even considering it one of HR or public relations or even marketing
department duties and tasks. Hence, the top management’s commitment from initial CSR
assessment to strategy and commitment development is equally essential for the successful
CSR integration. For instance, some senior managers and policy-makers tend to choose one
single isolated issue and bring it up erroneously as “CSR Management” via highlighting and
using it in their marketing and advertising campaigns in the purpose of enhancing the
corporate image. Furthermore, managers may fail to think systemically about CSR, i.e. they
may engage exclusively in the economic valuation of the CSR programs while missing out
the big picture and thinking of CSR as an integrated system.
The aforementioned limited approaches to CSR, along with the total absence of CSR
leadership, may drive stakeholders to view the firm as not being genuine and authentic in its
CSR endeavor; a fact that would surely backfire on the firm in the long-term. Managers will
fail to truly realize the benefits of CSR if they don’t possess a full understanding of CSR and
its implications, and if they don’t have a genuine desire to pursue CSR concept in
management and leadership exploring the Multiple Benefits of CSR.
e) Lack of Commitment from the Personnel of an Organization
Barriers to the implementation of CSR policies and programs do not only originate from the
upper level management, they are also found at the bottom of the organization. For instance,
when designing employee-related programs, known as work-life balance programs, managers
should involve and actively engage employees in the program and its details in order to
minimize their resistance to the programs’ implementation. So, if the employee did not get a

19. 19
proper education about the program or the policy, chances are that he/she would not be
familiar with it, would not be comfortable benefiting from it or even would not understand it;
therefore, he/she would not be able to implement it properly and back up the CSR culture.
Accordingly, the program or policy will not reach its intended benefits in the absence of
employee engagement and commitment.
RecommendationsRecommendationsRecommendationsRecommendations
i. Create a CSR policy: It would be helpful if the government created a CSR policy
setting out expectations that the government has of companies to work on CSR issues,
and providing guidance on the kinds of activities possible.
ii. Awareness building Programme: It would be useful if there was a greater awareness
amongst businesses about corporate social responsibility and the kinds of CSR
activities they could undertake.
iii. Worker's Rights ensured: Those undertaking CSR must ensure that they are
complying with the law in relation to labor rights and any legal obligations they may
have in protecting the local community and environment.
iv. Capacity building: Companies should consider seeking assistance from outside
bodies in considering what CSR activities they should or could undertake.
v. Research and information sharing on CSR: Research into CSR achievements
amongst Bangladesh companies
vi. Corporate CSR strategy: Companies should be encouraged to integrate CSR into
their core values and articulate a specific CSR strategy. They should not wait for
government pressure; they should boldly practice CSR activity for their sustainable
business.
vii. Stakeholder engagement: In originating the CSR strategy companies should identify
those with a stake in the activities undertaken and develop a policy for
communicating with them.
viii. Performance management and governance: Evaluation measures are an integral
part of the CSR strategy. When companies formulate their CSR strategies it should
clearly state the indicators of performance, and in the course of strategy
implementation performance shall be monitored to ensure that the CSR goals are
being achieved. There should be a separate unit or department and at least a
designated senior person within the company, who ensures governance in CSR
implementation.
ix. Public disclosure: Business should aim to disclose their CSR engagement to the
public. Transparent reporting will improve the companies' credibility; it will open up
opportunities for coordination of CSR initiatives across businesses, and facilitate
better research and inter-stakeholder dialogue resulting in general improvement of
CSR.CSR practicing Companies should disclose information about the exact
percentage of their profits goes into CSR activities, in their Annual Report. This
voluntary disclosure has a positive impact on how an organization performs and may
legitimize the organization's behavior by influencing other stakeholders. It also
signifies the recognition of that organization's accountability to society.

20. 20
ConclusionConclusionConclusionConclusion
In view of the above it can be concluded that CSR is no longer exclusively practiced in
developed countries; companies in the developing countries like Bangladesh are showing
interest and commitment to CSR as well. Although most people appreciate the recent
advancement of CSR, some argue that corporations are still not doing enough or are only
acting in self interest. These people say that multinational corporations are acting ethically in
areas that are highly regulated, such as North America, but at the same time, they are acting
in an opposite manner in other parts of the world (such as using cheap or child labour). In
addition, while corporations must have good CSR policies in order to maintain their
reputation, they are also expected to maximize profits for stakeholders such as shareholders,
employees, and customers.
Therefore, people argue that businesses do not put in a sufficient amount of resources to
achieve what they have promised in their CSR policies. Because CSR is becoming more
commonplace among corporations, there are concerns that some companies promote an
image of CSR whether or not they have a true strategy in place and the results to show for.
Accountability and transparency are key to conducting business in a responsible manner.
Furthermore, stakeholder expectations, critical social issues, norms, and values, and
institutional and sociological requirements also change over time. CSR is behavior that has to
be congruent with prevailing social norms, values and expectations of the society. As CSR
practices and stakeholder expectations vary across countries as well the MNCs must consider
the indigenous factor while devising CSR policy matters.

21. 21
References:References:References:References:
a. Annual Report, Grameen Phone, 2008
b. www.grameenphone.com
c. Bangladesh: Government action on CSR in the pipeline, Business Respect,
d. Online version, viewed on 20 Jul 2009 16:05 GMT (http://www.businessrespect.net
/page.php?Story_ID=2042)
e. Robert L. Heath and Lan Ni (2008),' Corporate Social Responsibility' University of Houston ,
http://www.instituteforpr.org/topics/corporate-social-responsibility/
f. Amin, khairul. (Sun, 09/09/2012-11:18pm) "Schoolers fall ill from Beximco gas" cited in,
http://news.priyo.com /business/2012/09/09/schoolers-fall-ill-b-59396.
g. US AID 2011, Current Conditions: Bangladesh, viewed 5 August 2011,
<http://www.usaid.gov/bd/programs/environ.html>.