Thesis Paper On “Corporate Social Responsibility of Banking Institutions in Bangladesh”

Thesis Prepared to: SHILPI DAS Lecturer Stamford University Bangladesh

Thesis Prepared by: MD. SEEAM SUNNY ID: BBA 030 09475 (Accounting) Batch: 30th Stamford University Bangladesh

Date of Submission: 26-10-2009

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Declaration

I am Md. Seeam Sunny. I am a student of Bachelor of Business Administration from Stamford University of Bangladesh and my major is accounting. My batch is 30th and my ID is BBA 030 09475. Here, I like to declare that these thesis report on “Corporate Social Responsibility of Banking Institutions in Bangladesh” which I have not submitted for any other degree before.

___________________
Md. Seeam Sunny BBA 030 0 9475 Batch 30th (Accounting) Stamford University Bangladesh Siddeswari

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Certificate of Head of the Department

This is to certify that Md. Seeam Sunny, ID No. BBA 030 09475, student of BBA department, major in Accounting has successfully completed the thesis paper on “Corporate Social Responsibility of Banking Institutions in Bangladesh” under the supervision of Shilpi Das as the partial fulfillment for the award of BBA degree.

___________________ Farjana Yeshmin Assistant professor Accounting Department Stamford University Bangladesh

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Supervisor’s Certificate

This is to certify that Md. Seeam Sunny, ID No. BBA 030 09475, student of BBA department, major in Accounting has successfully completed the thesis paper on “Corporate Social Responsibility of Banking Institutions in Bangladesh” under the supervision of Shilpi Das as the partial fulfillment for the award of BBA degree.

___________________
Shilpi Das Lecturer Stamford University Bangladesh

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Letter of Transmittal

October 26th, 2009 Shilpi Das Lecturer Stamford University Bangladesh Subject: Submission of thesis report. Dear Madam, It is my great pleasure to submit my thesis report “Corporate Social Responsibility of Banking Institutions in Bangladesh”. I have tried my level best in order to analyze this topic based on all the recent updated information as much as possible. I have gathered a lot of experience about the activities during my thesis period for analyzing my topic. It was great to gather some knowledge about banking industry sector in Bangladesh. I have tired my level best to make this report an outstanding one. But still there might be shortcoming regarding this report. It will be my pleasure to clarify any matter regarding this report. I thank to you for allowing me the opportunity to undertake the task and for your sincere guidance and cooperation.

Sincerely Md. Seeam Sunny BBA 030 09475 Batch 30th (Accounting) Stamford University Bangladesh

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Acknowledgement

A report book or term paper that requires a lot of information from various concerns is not the work of it authors or prepares only. To prepare a report by collecting the data of many kinds one or group is to depend upon many people and institutions concerned. It is my pleasure to get the opportunity to do my thesis report on “Corporate Social Responsibility of Banking Institutions in Bangladesh”. Now a day in this competitive business environment, CSR practice is so much important. I express my cordial gratitude to lecturer of department of business administration of Stamford University Bangladesh Shilpi Das for guiding me in the analyzing and preparing this report by providing all kinds of recent updated information which make the report an excellent one. Finally, I like to thanks those people who helped me directly and indirectly to collect the necessary data and information to complete the thesis report.

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Executive Summary

The dynamics of business has crossed its boundaries set decades back and have introduced strong motives of societal well-beings in dispensing business and fiduciary duties. The wind of globalization has also touched Bangladesh and CSR is being interwoven into the psyche of local businesses. However, the change process is slow and only in its infancy due to not having the proper acceptance at the senior professional ranks or the board. The definition of Corporate Social Responsibility (CSR) by the World Business Council for Sustainable Development offers an acceptable definition. They state that "corporate social responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large”. A study of CSR in Bangladesh provides a bird's eye view of how CSR engagements are being structured and whether CSR initiatives are home grown within organizations or being partnered with other specialized entities. A bank executive suggested that CSR has been taken one step up at our organization. We call it sustainability and each bank account holder is also being judged whether he/she is socially responsible to conduct business with this bank or not. Starting in 2008, the company policy is to have a sustainability fund of 0.75% of net profits to show their commitment to sustaining a CSR initiative. In this report, I have chosen following banks as a sample: AB Bank Ltd, Bank Asia Ltd, BRAC Bank Ltd, Dutch-Bangla Bank Ltd, Dhaka Bank Ltd, Eastern Bank Ltd, EXIM Bank Ltd, Islami Bank Bangladesh Ltd, Mutual Trust Bank Ltd, Mercantile Bank Ltd, National Bank Ltd, Trust Bank Ltd, NCC Bank Ltd, One Bank Ltd, Pubali Bank Ltd, Premier Bank Ltd, Southeast Bank Ltd, United Commercial Bank Ltd, Social Investment Bank Ltd. From analyzing there CSR practices, I have seen that total disbursement of those banks for CSR practice in 2008 was approximately Tk.278.33 million. Given the

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corporate culture in Bangladesh, CSR practices may be worked into smaller entities that are open to suggestions and based on available experience larger corporations can build their CSR practices. The market review presented above showed that the corporate bodies pay less attention to CSR due to not being particularly convinced that it can add to strengthening company image and ensure sustainability. Finally, for CSR to take shape in Bangladesh it is vital to dissect real life cases pertaining to CSR and partnerships within Bangladesh and beyond and develop a community of CSR practitioners and facilitators/consultants.

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Table of content
 Chapter One: Introduction *Title of the Report ………………………………………………………. 11 *Background of the Report ………………………………………………. 11 *Origin of the report ……………………………………………………… 11 *Objective of the Study …………………………………………………... 12 *Methodology of the Study ………………………………………………. 12 *Limitations of the Study …………………………………………………. 13  Chapter Two: Banking Sector of Bangladesh *History of Bank in Bangladesh ……………………………………………15 *Functions of bank in Bangladesh ………………………………………….18 *Types of Bank in Bangladesh …………………………………………….. 19 *Services of Bank in Bangladesh ………………………………………….. 23  Chapter Three: Literatures Review *CSR an Ethical Way to Boost Earnings …………………………………. 27 *Environmental Reporting: Corporate Social Responsibility ………………28 *10pc Tax Waiver on CSR Spending ……………………………………… 29 *Proper CSR Practice Eliminate RMG Unrest …………………………… 30 *CSR key to sustainable development: President ………………………… 31

 Chapter Four: Corporate Social Responsibilities *Definition ………………………………………………………………… 33 *Milestones of CSR …………………………………………………………35 *Arguments against Corporate Social Responsibility …………………… 46 *Approaches of CSR ……………………………………………………… 51 *CSR and Questionable of Motives ……………………………………… 54 *Motivations to adopt CSR ……………………………………………… 55  Chapter Five: CSR of Banking Institutions in Bangladesh *CSR Activities by banks in Bangladesh ………………………………… 60 *Disbursements in case of CSR practices by banks ………………………. 111

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 Chapter Six: Conclusion and References *Conclusion ………………………………………………………………... 114 *References …………………………………………………………………115 *Photo Gallery …………………………………………………………… 116

Chapter One Introduction

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Title of the Report:
Corporate Social Responsibility of Banking Institutions in Bangladesh

Background of the Report:
Corporate Social Responsibility stands for business contribution to sustainable development and covers companies’ active participation in different fields: human rights, human resources, relations with clients, suppliers, and other stakeholders, corporate governance, environment and contribution to community and society. The purpose of this report is to see what are the banks in Bangladesh doing in respect of CSR practice and how much are they spending on it.

Origin of the Report:
Today practical experience is as much essential as academic education that enables someone to be successful business executive especially in the glove, competitive business environment. In order to gather knowledge and experience regarding the organization culture and behavior, the business students have to submit thesis report for the successful completion of their bachelor degree. Stamford University Bangladesh is known for the global standard education. This thesis report of mine title “Corporate Social Responsibility of Banking Institutions in Bangladesh” is a process of gathering knowledge regarding the CSR related activities by banks. Hence, this report is proposed by my academic supervisor Shilpi Das, lecturer of Stamford University Bangladesh. In this regard, I would like to add that this report is completely confidential and prepared with a view to expose myself theoretical exposure and knowledge.

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Objective of the Study:
The general objective of this report is to complete the degree. As per requirement of BBA program of Stamford University Bangladesh, one student needs to work on the report to acquire knowledge about the real competitive environment. There are some specific objectives of this report these are: To become familiar with CSR To observe existing practice of CSR by banks To know about other activities related to social welfare carried out by banks To find the possible information sources.

Methodology:
In the ensuring proper management of the business processes to produce an overall positive impact on society, CSR is very important issue. In order to study this issue, collections of data were made from the secondary sources and liked published materials from primary sources like Dhaka Stock Exchange (DSE). Internet and few books related to the CSR were also very much used for collecting information on CSR. Annual reports 2008 of following banks are taken in this report: AB Bank Ltd Bank Asia Ltd. BRAC Bank Ltd Dhaka Bank Ltd. Dutch- Bangla Bank Ltd. Eastern Bank Limited Exim Bank Ltd. Islami Bank Bangladesh Ltd Mercantile Bank Limited Mutual Trust Bank Ltd. National Bank Ltd. NCC Bank Ltd. One Bank Ltd. Pubali Bank Limited

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Premier Bank Southeast Bank Ltd. Trust Bank Ltd.

United Commercial Bank Ltd. Social Investment Bank Ltd.

Limitations in Research:
I have faced several problems while completing my thesis paper. I wanted to take

more banks but due to following reasons I could not take*Access to information *Access to resources *Time management *Access to experts for editing, proofreading, and guidance *Support from organizations and participants *As a student, so there may arise some faults though I have tried my level best. *This study completely depended on annual reports *Another limitation of this report is company policy of not disclosing some data and information for obvious reason which could be very much useful.

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Chapter Two Banking Sector of Bangladesh

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History of Bank in Bangladesh:
The banking system at independence consisted of two branch offices of the former State Bank of Pakistan and seventeen large commercial banks, two of which were controlled by Bangladeshi interests and three by foreigners other than West Pakistanis. There were fourteen smaller commercial banks. Virtually all banking services were concentrated in urban areas. The newly independent government immediately designated the Dhaka branch of the State Bank of Pakistan as the central bank and renamed it the Bangladesh Bank. The bank was responsible for regulating currency, controlling credit and monetary policy, and administering exchange control and the official foreign exchange reserves. The Bangladesh government initially nationalized the entire domestic banking system and proceeded to reorganize and rename the various banks. Foreign-owned banks were permitted to continue doing business in Bangladesh. The insurance business was also nationalized and became a source of potential investment funds. Cooperative credit systems and postal savings offices handled service to small individual and rural accounts. The new banking system succeeded in establishing reasonably efficient procedures for managing credit and foreign exchange. The primary function of the credit system throughout the 1970s was to finance trade and the public sector, which together absorbed 75 percent of total advances. The government's encouragement during the late 1970s and early 1980s of agricultural development and private industry brought changes in lending strategies. Managed by the Bangladesh Krishi Bank, a specialized agricultural banking institution, lending to farmers and fishermen dramatically expanded. The number of rural bank branches doubled between 1977 and 1985, to more than 3,330. Denationalization and private industrial growth led the Bangladesh Bank and the World Bank to focus their lending on the emerging private manufacturing sector. Scheduled bank advances to private agriculture, as a percentage of sectoral GDP, rose from 2 percent in FY 1979 to 11 percent in FY 1987, while advances to private manufacturing rose from 13 percent to 53 percent. The transformation of finance priorities has brought with it problems in

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administration. No sound project-appraisal system was in place to identify viable borrowers and projects. Lending institutions did not have adequate autonomy to choose borrowers and projects and were often instructed by the political authorities. In addition, the incentive system for the banks stressed disbursements rather than recoveries, and the accounting and debt collection systems were inadequate to deal with the problems of loan recovery. It became more common for borrowers to default on loans than to repay them; the lending system was simply disbursing grant assistance to private individuals who qualified for loans more for political than for economic reasons. The rate of recovery on agricultural loans was only 27 percent in FY 1986, and the rate on industrial loans was even worse. As a result of this poor showing, major donors applied pressure to induce the government and banks to take firmer action to strengthen internal bank management and credit discipline. As a consequence, recovery rates began to improve in 1987. The National Commission on Money, Credit, and Banking recommended broad structural changes in Bangladesh's system of financial intermediation early in 1987, many of which were built into a three-year compensatory financing facility signed by Bangladesh with the IMF in February 1987. One major exception to the management problems of Bangladeshi banks was the Grameen Bank, begun as a government project in 1976 and established in 1983 as an independent bank. In the late 1980s, the bank continued to provide financial resources to the poor on reasonable terms and to generate productive self-employment without external assistance. Its customers were landless persons who took small loans for all types of economic activities, including housing. About 70 percent of the borrowers were women, who were otherwise not much represented in institutional finance. Collective rural enterprises also could borrow from the Grameen Bank for investments in tube wells, rice and oil mills, and power looms and for leasing land for joint cultivation. The average loan by the Grameen Bank in the mid-1980s was around Tk2,000 (US$65), and the maximum was just Tk18,000 (for construction of a tin-roof house). Repayment terms were 4 percent for rural housing and 8.5 percent for normal lending operations. The Grameen Bank extended collateral-free loans to 200,000 landless people in its first 10 years. Most of its customers had never dealt with formal lending institutions before. The most remarkable accomplishment was the phenomenal recovery rate; amid the prevailing pattern of bad debts throughout the Bangladeshi banking

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system, only 4 percent of Grameen Bank loans were overdue. The bank had from the outset applied a specialized system of intensive credit supervision that set it apart from others. Its success, though still on a rather small scale, provided hope that it could continue to grow and that it could be replicated or adapted to other development-related priorities. The Grameen Bank was expanding rapidly, planning to have 500 branches throughout the country by the late 1980s. Beginning in late 1985, the government pursued a tight monetary policy aimed at limiting the growth of domestic private credit and government borrowing from the banking system. The policy was largely successful in reducing the growth of the money supply and total domestic credit. Net credit to the government actually declined in FY 1986. The problem of credit recovery remained a threat to monetary stability, responsible for serious resource misallocation and harsh inequities. Although the government had begun effective measures to improve financial discipline, the draconian contraction of credit availability contained the risk of inadvertently discouraging new economic activity. Foreign exchange reserves at the end of FY 1986 were US$476 million, equivalent to slightly more than 2 months worth of imports. This represented a 20-percent increase of reserves over the previous year, largely the result of higher remittances by Bangladeshi workers abroad. The country also reduced imports by about 10 percent to US$2.4 billion. Because of Bangladesh's status as a least developed country receiving concession loans, private creditors accounted for only about 6 percent of outstanding public debt. The external public debt was US$6.4 billion, and annual debt service payments were US$467 million at the end of FY 1986. Money and Banking-Currency Fluctuation At independence the value of the taka, Bangladesh's unit of currency, was set between 7.5 and 8.0 to US$1. With the exception of FY 1978, the taka's value relative to the dollar declined every year from 1971 through the end of 1987. To help offset this phenomenon, Bangladesh first used the compensatory financing facility of the International Monetary Fund (IMF--see Glossary) in FY 1974. Despite the increasing need for assistance, the Mujib government was initially unwilling to meet the IMF's conditions on monetary and fiscal policy. By FY1975, however, the government revised its stance; declaring a devaluation of the taka by 56 percent and agreeing to the establishment by the World Bank of the Bangladesh Aid Group (see Foreign Assistance, this ch.). Between 1980 and

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1983, the taka sustained a decline of some 50 percent because of deterioration in Bangladesh's balance of payments. Between 1985 and 1987, the taka was adjusted in frequent incremental steps, stabilizing again around 12 percent lower in real terms against the United States dollar, but at the same time narrowing the difference between the official rate and the preferential secondary rate from 15 percent to 7.5 percent. Accompanying this structural adjustment was an expansion in the amount of trade conducted at the secondary rate, to 53 percent of total exports and 28 percent of total imports. In mid- 1987, the official rate was relatively stable, approaching Tk31 to US$1.

The Functions of Banking:
The most important functions of banking may be classified as follows: (1) To assemble capital and make it effective (2) To receive deposits and make collections (3) To check out and transfer funds (4) To discount or lend (5) To exercise fiduciary or trust powers (6) To issue circulating notes (7) To be succeeded bank must first of all prove its value to the community (8) The services which a bank performs are so generally taken for granted that the public is unaware of the real extent of the facilities offered (9)Banks are equipped to utilize funds, for either a short or long period of time, safely, and with some profit (10)By receiving deposits and making collections the bank saves the depositor much personal effort (11) To convert check in a relatively short time into cash available for the depositor's use, and all this with no direct assistance from the customer and at a very slight expense to him or none at all, is indeed service (12) It is the willingness of the bank to collect promissory notes, drafts and other negotiable paper in a similar way

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(13)In addition to taking care of funds without charge and making collections, the bank provides the means of withdrawing and transferring funds readily by giving its customer a book of blank checks (14)By lending money the bank benefits the community to the extent that it supplies funds to assist worthy business. Temporary working capital to assist in the commercial, agricultural or industrial life of a community is very important

Numbers and Types of Banks in Bangladesh:
The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are Nationalized Commercial Banks (NCBs), 28 local private commercial banks, 12 foreign banks and the rest five are Development Financial Institutions (DFIs). Sonali Bank is the largest among the NCBs while Pubali is leading in the private ones. Among the 12 foreign banks, Standard Chartered has become the largest in the country. Besides the scheduled banks, Samabai (Cooperative) Bank, Ansar-VDP Bank, Karmasansthan (Employment) Bank and Grameen bank are functioning in the financial sector.The number of total branches of all scheduled banks is 6,038 as of June 2000. Of the branches, 39.95 per cent (2,412) are located in the urban areas and 60.05 per cent (3,626) in the rural areas. Of the branches NCBs hold 3,616, private commercial banks 1,214, foreign banks 31 and specialized banks 1,177. Bangladesh Bank (BB) regulates and supervises the activities of all banks. The BB is now carrying out a reform program to ensure quality services by the banks. *BB *NCBs *PCBs *Specialized Banks

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Bangladesh Bank Bangladesh Bank (BB) has been working as the central bank since the country's independence. Its prime jobs include issuing of currency, maintaining foreign exchange reserve and providing transaction facilities of all public monetary matters. BB is also responsible for planning the government's monetary policy and implementing it thereby. The BB has a governing body comprising of nine members with the Governor as its chief. Apart from the head office in Dhaka, it has nine more branches, of which two in Dhaka and one each in Chittagong, Rajshahi, Khulna, Bogra, Sylhet, Rangpur and Barisal.

Name & Telephone:
Nationalised Commercial Banks (NCBs) 1. Sonali Bank 9550426-34, 8614588 2. Janata Bank 9560072-80, 9560042-43 3. Agrani Bank 9566153-54, 9566160-69, 9555179-80 4. Rupali Bank 9551624-25, 9554122, 9552183-4

Private Commercial Banks (PCBs) 1. Pubali Bank 9569050-2, 9551614-7 2. Uttara Bank 9566067-9, 9551162-63, 9565732 3. National Bank Ltd. 9563081-5, 9561201 4. The City Bank Ltd. 9565925-34 5. United Commercial Bank Ltd. 9560585 6. Arab Bangladesh Bank Ltd. 95608878, 9560312-6 7. IFIC Bank Ltd. 9562062, 9563020-29 8. Islami bank Bangladesh Ltd. 9552897,-8, 9563040, 9563046-9

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9. Al Baraka Bank Bangladesh Ltd. 9563768-9, 9565031-2 10. Eastern Bank Ltd. 9556371, 9556361-2 11. National Credit & Commerce

19. Standard Bank Ltd. 9667224, 9667802 20. One Bank Ltd. 9564249, 7551799, 9564255-6 21. EXIM Bank 9553925, 9553872, 9566418 22. Bangladesh Commerce Bank

Bank Ltd 9561902-4 12. Prime Bank Ltd. 9567265-70, 9564677

Ltd.9559831-32, 9668170 23. Mutual Trust Bank Ltd.

13. South East Bank Ltd. 9550081-5, 9551575, 9557714, 9551411

9569318, 7113239 24. First Security Bank Ltd.

14.Dhaka Bank Ltd. 9556587-10, 9556583,

9560229, 9564733 25. The Premier Bank Ltd.

15. Al-Arafah Islami Bank Ltd. 26. Bank Asia Ltd. 16. Social Investment Bank Ltd. 9559014, 9554855 27. The Trust Bank Ltd. 17. Dutch-Bangla Bank Ltd. 9568537-39 28. Shah Jalal Bank Limited (Based on 18. Mercantile Bank Ltd. 9559333 Islamic Shariah) 9556011 9870011-4191 8117055, 8117066

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Foreign Banks 1. American Express Bank 9561751-52, 9561496-97, 2. Standard Chartered Grindlays Bank 9561465, 9550181-90 3. Habib Bank Ltd. 9551228, 9555091-2, 9563043-5 4. State Bank of India 9554251, 9553371 5. Credit Agricole Indosuez (The Bank) 8111959 6. National Bank of Pakistan 9560248-9 10. HSBC Ltd. 11. Shamil Islami Bank of Bahrain EC 9666701-5 12. Standard Chartered Bank 9561465, 881718-9 9. Hanvit Bank Ltd. 8813270-73 8. City Bank NA 9550063-64 7. Muslim Commercial Bank Ltd. 9563649, 9563650

Others 1. Ansar VDP Unnayan Bank 8313198, 8322181 2. Bangladesh Samabai Bank Ltd. (BSBL) 3. Grameen Bank 8015755-8 4. Karmasansthan Bank 9563311

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Services of Bank in Bangladesh:
*Accounts, Current, FDR, PDS, Deposit Scheme Current Account: Generally this sort of account opens for business purpose. Customers can withdraw money once or more against their deposit. No interest can be paid to the customers in this account. If the amount of deposit is below taka 1,000 on an average the bank has authority to cut taka 50 from each account as incidental charge after every six months. Against this account loan facility can be ensured. Usually one can open this account with taka 500. One can open this sort of account through cash or check/bill. All the banks follow almost the same rules for opening current account. *Savings Bank Account Usually customers open this sort of account at a low interest for only security. This is also an initiative to create people's savings tendency. Generally, this account is to be opened at taka 100. Interest is to be paid in June and December after every six months. If money is withdrawn twice a week or more than taka 10,000 is withdrawn (if 25% more compared to total deposit) then interest is not paid. This account guarantees loan. Almost all the banks follow the same rules in the field of savings account, except foreign banks for varying deposit. On an average, all the banks give around six percent interest. *Special Services >Some Banks render special services to the customers attracting other banks. >Internet Banking Customers need an Internet access service. As an Internet Banking customer, he will be given a specific user ID and a confident password. The customer can then view his account balances online. It is the industry-standard method that used to protect communications over the Internet. To ensure that customers' personal data cannot be

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accessed by anyone but them, all reporting information has been secured using Version and Secure Sockets Layer (SSL). >Home Banking Home banking frees customers of visiting branches and most transactions will be automated to enable them to check their account activities transfer fund and to open L/C sitting in their own desk with the help of a PC and a telephone. >Electronic Banking Services for Windows (EBSW) Electronic Banking Service for Windows (EBSW) provides a full range of reporting capabilities, and a comprehensive range of transaction initiation options. The customers will be able to process all payments as well as initiate L/Cs and amendments, through EBSW. They will be able to view the balances of all accounts, whether with Standard Chartered or with any other banks using SWIFT. Additionally, transactions may be approved by remote authorization even if the approver is out of station. >Automated Teller Machine (ATM) Automated Teller Machine (ATM), a new concept in modern banking, has already been introduced to facilitate subscribers 24 hour cash access through a plastic card. The network of ATM installations will be adequately extended to enable customers to nonbranch banking beyond banking. >Tele Banking Tele Banking allows customers to get access into their respective banking information 24 hours a day. Subscribers can update themselves by making a phone call. They can transfer any amount of deposit to other accounts irrespective of location either from home or office. >SWIFT SWIFT is a bank owned non-profit co-operative based in Belgium servicing the financial community worldwide. It ensures secure messaging having a global reach of 6,495 Banks

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and Financial Institutions in 178 countries, 24 hours a day. SWIFT global network carries an average 4 million message daily and estimated average value of payment messages is USD 2 trillion. SWIFT is a highly secured messaging network enables Banks to send and receive Fund Transfer, L/C related and other free format messages to and from any banks active in the network. Having SWIFT facility, Bank will be able to serve its customers more profitable by providing L/C, Payment and other messages efficiently and with utmost security. Especially it will be of great help for our clients dealing with Imports, Exports and Remittances etc.

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Chapter Three Literatures Review

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*CSR an Ethical Way to Boost Earnings
Corporate social responsibility (CSR) practices by companies will help exporters increase their earnings. At the function, organized by Dhaka Chamber of Commerce and Industry (DCCI), they also urged the businesses to adopt CSR in businesses to build reputation and reduce risks. "If we can start CSR in our organizations, our products will get more acceptability on the international market, which means export earnings will increase," said Aftabul Islam, former DCCI president. CSR plays a vital role in exporting products to the rest of the world, Islam said in his speech to a seminar at the DCCI auditorium as chief guest. DCCI and German Technical Co-operation (GTZ) co-organized the seminar on how CSR can be a profitable, yet ethical way of doing business. If small businesses strive to grow, they must reach out to a wider global market, the discussants said. In today's world CSR has become a global necessity for taking a leap forward and attaining a larger share of the market, they said. Speaking on the issue, they viewed that every business organization has some social responsibility. DCCI President Zafar Osman said a CSR strategy should be developed in the country, which he said would help alleviate business risks and minimize social disputes. Osman urged all to attach importance to establishing a socially-compliant business environment. "A socially responsible company should arrange training for the staffs and adopt several cost-saving methods," he said. DCCI plans to establish a CSR centre on its premises. Consultant Mohiuddin Babar and Director of Centre for Management Development AMM Khairul Bashar made presentations on CSR at the seminar. CSR encourages businessmen to make profit ethically, said Dietrich Stotz, program coordinator of GTZ-progress. "CSR is important to business nowadays as it advises the businessmen to profit abiding by the ethics of business."

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*Environmental Reporting: Corporate Social Responsibility
CSR reporting may be defined as the external reporting of social, ethical and environmental aspects of a business organization. It essentially concerns the process of communicating the social, ethical and environmental effects of business organizations' economic actions to particular interest groups within society and to society at large. It involves extending the accountability of firms beyond the traditional role of providing a financial account to the owners of capital or shareholders. Such an extension is predicated upon the assumption that companies do have wider responsibilities than simply make money for their shareholders. This article presents partial findings of an extensive research on CSR practices in Bangladesh. Based on a systematic qualitative survey of 87 business firms, representing such sectors as bank, insurance, textiles, pharmaceuticals, fuel, food, engineering, service, jute and miscellaneous, the study aimed to explore the emerging practice of CSR reporting in developing countries with particular reference to Bangladesh by examining the corporate attitudes towards social, ethical and environmental issues as represented in the text of corporate reports in the public domain. Out of the 87 surveyed companies, only a meager 18% of them disclosed on environmental issues. Even then, the disclosure was very general and superficial. Here are some examples of the environmental disclosures: “The Company is always active to keep its environment pollution free. In addition to the implementation of afforestation programs in all mill areas steps have been taken to keep the internal environment of the factory pollution free by installing modern equipment. We have taken adequate measures to control dust, which is generated during the process of manufacturing cement. The corporate attitude, as evident from the above disclosure statements, suggests a rhetorically loaded but practically cautious and unsubstantial approach. The companies are saying that they have taken environmental issues seriously but their sincerity may be questioned in the absence of the development of an appropriate long-term corporate environmental policy and quantitative indicators to measure performance against the

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policy. The above ad hoc disclosures can, at best, be taken as a list of mere intentions without evidence of any appropriate action. The environment of Bangladesh is degrading rapidly. The untreated disposal of industrial wastes, gases and fumes is considered as one of the reasons for this. In spite of this, a large majority of companies (82%) included in this study did not make any environmental disclosure. There is a growing consensus amongst both the academics and development activists regarding the crucial significance and topicality of rendering business organizations to act in a more socially and environmentally responsive manner. As voluntary reporting initiatives often fail to generate the required responses amongst the companies, one cogent view is to argue in favor of mandatory reporting of social, ethical and environmental information as the way forward. Research and practical demonstration on the possible ways and means of ensuring more effective social and environmental disclosures remain generally limited in Bangladesh.

*10pc Tax Waiver on CSR Spending
The government has approved the long-awaited proposal for tax exemption facility at the rate of 10 percent on a part of the corporate income to be spent on complying with corporate social responsibility (CSR). The exemption facility is aimed at encouraging private companies to be involved more in CSR practices. Finance Adviser Mirza Azizul Islam last week gave go-ahead to the tax exemption proposal, which is expected to be published soon as gazette notification. "The government will lose a very insignificant amount of money for giving the tax exemption facility, but the move will encourage many local business groups to launch CSR activities," said a high official of National Board of Revenue (NBR). According to the tax exemption plan, economic, environmental and social development activities will be brought within CSR purview. Agricultural production and processing, crop diversification, employment generation, education and training will be considered as CSR areas under economic sector, while global warming, ecological balance, pure water management, carbon emission, sea water

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level, forestry, city beautification and waste management will be environmental activities. Under social development, companies investing for women rights issues, extending donations to HIV-AIDS campaign agencies, welfare activities for disabled, donations for public universities, relief activities after natural calamities, welfare activities for grassroots children and acid victims will get the tax waiver facility. In order to enjoy the facility, companies will have to follow labor compliant issues and be environmentally conscious. The private sector businesses had long been requesting the government to offer tax waiver on CSR expenditure as they have to pay corporate tax at a rate of 45 percent. Last year the government raised tax exemption limit for donation to charity to Tk. 5 lacs from Tk. 2.5 lacs in a bid to encourage welfare activities.

*Proper CSR Practice can Eliminate RMG Unrest
Proper practice of Corporate Social Responsibility (CSR) in the country's ready-made garment units could help avoid frequent labor unrest, said British High Commissioner Anwar Choudhury. “Had there been proper CSR practice in RMG units, the recent unrest could have been avoided,'' he said, adding that many companies in Bangladesh have been practicing CSR very carefully, but their good practices are not being focused. “Buyers from Europe and North America are explicitly choosing to source goods from socially compliant factories. Having a CSR strategy gives a strong and positive message that the company is ethically and socially responsible and contributing to the country's overall economic development and welfare,” he said. The British envoy stressed the need for immediate and permanent resolution of labor unrest in the garment sector through negotiation between owners and workers for more investment and stronger growth. He was speaking as the chief guest at the inauguration of a seminar on 'The Business Case for Corporate Social Responsibility in Bangladesh' held in Dhaka yesterday. The seminar was organized to mark the launching of the project 'Corporate Social Responsibility-a Guide for Companies Operating in Bangladesh and the CSR Fact Sheets' initiated by the British High Commission and the UK Trade & Investment to promote CSR practice in Bangladeshi business houses. The project is being implemented by Reed Consulting BD Ltd. The High Commissioner termed the 2008 calendar year as the defining year for

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Bangladesh as the country has been approaching towards holding a free and fair election. “Holding of such free and fair election will enhance the image of Bangladesh, which will help a lot, in attracting local and foreign investment into the country,” he said. Choudhury also urged the bureaucrats to be more active for creating business friendly environment to attract more local and foreign investment. “We will appeal to the government to remove all possible blockades for a congenial business environment,” he said at the day-long gathering of business proprietors, executives from different local and multi-national business firms, foreign buyers and their local representatives, leaders of BGMEA, BKMEA and representatives from development partner organizations. He opined for the reduction of poverty through more trade and investment, which will generate more employment in the country.

*CSR Key to Sustainable Development: President
President Iajuddin Ahmed said corporate houses to make contribution to economic development by improving the quality of life of their workforce. "Corporate social responsibility (CSR) is a crucial need for promoting sustainable development and longterm advancement of business," the president said at the Standard Chartered-Financial Express Corporate Social Responsibility Award 2005 ceremony in Dhaka. Unilever Bangladesh Ltd and Dhaka Bank Ltd have been adjudged this year's winners in manufacturing and services sector categories. Economist Wahiduddin Mahmud, chairman of the Standard Chartered-Financial Express Corporate Social Responsibility Award Trust, chaired the program. Osman Morad, chief executive officer of Standard Chartered Bank Bangladesh, and Moazzem Hossain, editor of The Financial Express, also spoke. The president also said as CSR is a growing demand; businesses competing in the global economy can no longer afford to ignore the issue. Iajuddin said Bangladesh has been making relentless efforts to adopt operational principles of corporate governance in line with the international best practices. "The regulatory agencies have incorporate many of the relevant issues into their respective operational framework and the process is still on," he added Wahiduddin Mahmud said companies worldwide are increasingly paying

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attention to CSR in their business approaches by attempting to address social issues and engaging themselves in not-for-profit community welfare activities. Sanjiv Mehta, chairman and managing director of Unilever Bangladesh Ltd, and Shahed Noman, managing director of Dhaka Bank, received the awards.

Chapter Four Corporate Social Responsibilities

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Corporate Social Responsibility:
One of the most frequently asked questions at this era - and probably for all those individuals and organizations dealing with CSR issues is the obvious - just what does "Corporate Social Responsibility" mean anyway? Is it a stalking horse for an anticorporate agenda? Something which, like original sin, you can never escape or what? Different organizations have framed different definitions - although there is considerable common ground between them. My own definition is that CSR is about how companies manage the business processes to produce an overall positive impact on society. Take the following illustration:

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Other definitions The World Business Council for Sustainable Development in its publication "Making Good Business Sense" by Lord Holme and Richard Watts used the following definition. "Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large" The same report gave some evidence of the different perceptions of what this should mean from a number of different societies across the world. Definitions,"CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of

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employees, the community and the government" from Ghana, through to "CSR is about business giving back to society" from the Phillipines. Traditionally in the United States, CSR has been defined much more in terms of a philanphropic model. Companies make profits, unhindered except by fulfilling their duty to pay taxes. Then they donate a certain share of the profits to charitable causes. It is seen as tainting the act for the company to receive any benefit from the giving. The European model is much more focused on operating the core business in a socially responsible way, complemented by investment in communities for solid business case reasons. Personally, I believe this model is more sustainable because: Social responsibility becomes an integral part of the wealth creation process - which if managed properly should enhance the competitiveness of business and maximize the value of wealth creation to society. When times get hard, there is the incentive to practice CSR more and better - if it is a philanthropic exercise which is peripheral to the main business, it will always be the first thing to go when push comes to shove. But as with any process based on the collective activities of communities of human beings (as companies are) there is no "one size fits all". In different countries, there will be different priorities, and values that will shape how business act. And even the observations above are changing over time. The US has growing numbers of people looking towards core business issues. For instance, the CSR definition used by Business for Social Responsibility is: "Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business? On the other hand, the European Commission hedges its bets with two definitions wrapped into one: "A concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. A concept whereby companies integrate social and environmental concerns in their business operations,and in their interaction with their stakeholders on a voluntary basis".

Milestones of CSR between 1960s-1990s

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*CSR milestones in the 1960s 1960’s The earliest reference to social auditing is sometime around the early 1960s in a book by George Goyder called "The Responsible Company". He refers to various activities in the mid and late 1950s and proposes that a social audit can act as both a useful management too and offer stakeholders a platform for challenging and influencing companies. 1961 The World Wildlife Fund WWF, now the World Wide Fund for Nature, is created at Morges, Switzerland; it will become a leading non-governmental actor in international conservation 1962 Rachel Carson publishes "Silent Spring bringing together research on toxicology, ecology and epidemiology to suggest that agricultural pesticides are building to catastrophic levels New wave of environmentalism. 1962 Consumer Bill of Rights - USA

1966 International Covenant on Economic, Social and Cultural Rights adopted by the UN International Covenant on Civil and Political Rights adopted by the UN 1967 In the Sixth General Synod (1967), the Action on Poverty and Economic Justice declared that: "Social value and social justice ought to be given consideration together with security and yield in the investment of funds held by religious organizations. Requests the Instrumentalities with substantial investments to study the social aspects of policies and

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practices with respect to investments and to report on such studies to the Executive Council” creating the foundations for SRI. 1968 The Club of Rome, commissions a study of global proportions to model and analyze the dynamic interactions between industrial production, population, environmental damage, food consumption and natural resource usage (later published as “The Limits to Growth”). 1968 The Intergovernmental (UNESCO) provides a forum Conference for Rational Use and Conservation of Biosphere for early discussions of the concept of ecologically sustainable development. 1969 The US Congress passes the National Environmental Policy Act (NEPA) creating the first national agency for environmental protection - the EPA. 1969 Commonwealth Arbitration Commission adopts the principle of equal pay for equal work regardless of gender. *CSR milestones in the 1970s 1970 The first Earth Day was held as a national awareness campaign on the environment. An estimated twenty million people participate in peaceful demonstrations all across the USA. 1970s Henderson Poverty Index developed in Australia.

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In France, companies with more than 300 employees required by law to produce an employee report “the Bilan Social”. Germany engaged in the social model of corporate management. Council on Economic Priorities and others in USA began to rate companies publicly on their social and environmental performance 1970s Greenpeace, in the 1970s was the first major NGO to adopt policies which shifted the emphasis away from governments and more towards direct action on the corporate sector. 1970s The United Nation’s Code of Practice for Transnational Corporations was an early attempt in the early 70’s to define CSR businesses principles in terms of ethics, product standards, competition, marketing and disclosure of information. 1971 The Man and the Biosphere MAB program is founded by UNESCO; it will have a major role in promoting international scientific cooperation on environmental problems

1972 The United Nations Conference on the Human Environment in Stockholm considers the need for a common outlook and for common principles to inspire and guide the peoples of the world in the preservation and enhancement of the human environment. The concept of sustainable development is cohesively argued to present a satisfactory resolution to the environmental vs. development dilemma. The conference leads to the establishment of numerous national environmental protection agencies and the United Nations Environment Program (UNEP). 1972 An article in The Ecologist magazine, endorsed by a large number of UK scientists, and entitled ‘The Blueprint for Survival”, warns of the "breakdown of society and irreversible

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disruption of life-supporting systems on this planet" and proposes the concepts of “sustainability” and “sustainable development” as an alternative to an ethos of ‘expansionism”. 1972 The first alternative to GDP as a measure of economic progress, the Measure of Economic Welfare, is created by Nordhaus and Tobin. 1974 Rowland and Molina release a seminal work on CFCs in Nature magazine calculating that if use of CFC gases is to continue at unaltered rate the ozone layer will be depleted by many percent after few decades. 1979 J. Coomer (ed.) publishes the book “Quest for a Sustainable Society”. Emphasising that society must recognize limits of growth and to look for alternative ways of growing. 1979 Chair of Tata Steel (India’s largest integrated private sector steel company) asks audit committee to report on “whether, and the extent to which the company has fulfilled the objectives regarding “The social and moral responsibilities”

CSR milestones in the 1980s 1980 The “World Conservation Strategy” is released by IUCN (World Conservation Union) as "the modification of the biosphere and the application of human, financial, living and non-living resources to satisfy human needs and improve the quality of human life". The section “Towards Sustainable Development” identifies the main agents of habitat destruction as poverty, population pressure, social inequity and the terms of trade. It calls for a new International Development Strategy with the aims of redressing inequities,

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achieving a more dynamic and stable world economy, stimulating accelerating economic growth and countering the worst impacts of poverty. 1980 “The Global 2000 Report to the President”, is submitted to US President Jimmy Carter providing comprehensive projection of global environmental impacts and resource supply issues over the next 20 years. The Report recognizes biodiversity for the first time as a critical characteristic in the proper functioning of the planetary ecosystem. 1982 Business in the Community is founded by UK based business organizations focused on corporate social responsibility. 1983 Australia adopts a National Conservation Strategy to implement the objectives of the World Conservation Strategy. 1984 CSR becomes part of management theory at least since E Freeman’s 1984 publication Strategic Management: A Stakeholder Approach 1985 The Antarctic ozone hole is discovered by British and American scientists 1986 The Toxics Release Inventory (TRI) was established under the Emergency Planning and Community Right-to-Know Act of 1986 1987 The Brundtland Commission, appointed by the United Nations to study the connection between development and the environment publishes report: “Our Common Future".

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The report introduces the term “sustainable development” defining it as: “development that meets the needs of the present without compromising the ability of future generations to meet their own needs". 1988 An Inter-governmental Panel on Climate Change (IPCC) is established with three working groups to assess the most up-to-date scientific, technical and socio-economic research in the field of climate change. 1988 The Co-Operative (UK) publishes its first Social Report. Ben and Jerry’s (Ice Cream Company) in USA produces first Social Performance Assessments. Establishment of the Resource Assessment Commission to evaluate best use of resources in Australia 1989 Report published for the UK government – Blueprint for Green Economy by David Pearce et al. Introduction of the concept of natural capital and definition of sustainable development as non-declining per capita human well-being over time.

CSR milestones in the 1990s 1991 IUCN/UNEP/WWF publish “Caring for the Earth: 2nd World Conservation Strategy” focusing on “sustainable society”, “sustainable living” and “sustainability” itself 1992 'Earth Summit' in Rio de Janeiro with 180 country delegations addressed ways to halt the destruction of irreplaceable natural resources and pollution of the planet twenty years

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after the first global environment conference. The Summit agrees the Rio Declaration on Environment and Development which sets out 27 principles supporting sustainable development. Also agreed is a plan of action, Agenda 21, and a recommendation that all countries should produce national sustainable development strategies. The Earth Summit also establishes the UN Commission on Sustainable Development, which meets every year, as well as important UN bodies - the Framework Convention on Climate Change and the Convention on Biological Diversity. The Earth Summit influenced all subsequent UN conferences, which have examined the relationship between human rights, population, social development, and the need for environmentally sustainable development. 1992 A USA based business led membership organization; Business for Social Responsibility BSR is founded 1992 FairTrade is founded with mission to improve the position of the disadvantaged producers in the developing world, by setting the FairTrade standards and supporting their interests.

1993 The World Conference on Human Rights, held in Vienna, underscored the right of people to a healthy environment and the right to development, controversial demands that had met with resistance from some Member States until Rio. 1993 US President Bill Clinton announces (Oct 20th) an ambitious plan to combat global warming through over 50 initiatives affecting all sectors of the economy.

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1994 European Universities Charter for Sustainable Development agreed; promoting university education for the training of decision-makers and teachers, oriented towards sustainable development and fostering environmentally aware attitudes, skills and behavior patterns, as well as a sense of ethical responsibility. 1995 Caux Round Table Principles for Business adopted – The Caux Round Table (CRT) was established as an international network of principled business leaders advocating implementation of the CRT Principles for Business through which principled capitalism can flourish and sustainable and socially responsible prosperity can become the foundation for a fair, free and transparent global society. 1995 The World Business Council for Sustainable Development (WBCSD) sets a permanent base in Geneva to provide business leadership as a catalyst for change toward sustainable development, and to promote the role of eco-efficiency, innovation and corporate social responsibility.

1995 Formation of the World Trade Organization replaced GATT as the organization overseeing the multilateral trading system. Key functions include: handling trade disputes and technical assistance and training for developing countries. 1995

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COP I in Berlin, Germany-Each year, the countries that ratified the Rio Convention held a Conference of Parties (COP). The first of these happened in 1995 and reviewed the adequacy of the Rio Convention's goal of stabilizing greenhouse gas emissions. 1996 The OECD, introduced the concept of environmentally sustainable transportation (EST); “Pollution Prevention and Control, Environmental Criteria for Sustainable Transport” 1996 In January 1996 a group of 57 European companies signed the European declaration of businesses against social exclusion, and established CSR Europe with the support of Jacques Delors President of the European Commission at that time. CSR Europe mission is to help companies achieve profitability, sustainable growth and human progress by placing corporate social responsibility in the mainstream of business practice. 1997 The Kyoto Protocol for the implementation of the Framework Convention on Climate Change is negotiated. After reviewing the original targets of the Rio Convention and finding them to be too weak, the countries came up with new targets. Now, 1990 greenhouse gas emissions would be cut by 5% between 2008 and 2012.Though 5% is a global target, different countries have different targets. The European Union's target is a 8% cut (Germany committed to a 25% cut and the U.K. to 15%). The United States had a target of 7%, while Canada had a target of 6%.)

1997 SA8000 launched by Social Accountability International SAI a U.S.-based, non-profit organization dedicated to the development, implementation and oversight of voluntary verifiable social accountability standards. 1997

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A special UN conference is held to review the implementation of Agenda 21 (Rio+5). This repeats the call for all countries to have sustainable development strategies in place in particular by the time of the next review of Agenda 21 in 2002 (Rio+10). In Europe, changes to Articles 2 to 6 of the Treaty establishing the European Community are agreed in the Treaty of Amsterdam; give sustainable development a much greater prominence. 1997 John Elkington publishes Cannibals with Forks in it he coins the term Triple Bottom Line. 1997 The Global Reporting Initiative launched to develop Sustainability reporting guidelines. 1998 November - Around 170 nations gather at the United Nations global warming conference in Buenos Aires to discuss ways of cutting emissions of greenhouse gases by 2008-2012. Specialists from the US and Canada tell the summit that global warming is killing the world's coral reefs, and with them the swarming sea life they shelter and support. 1999 The UK Government launches its new strategy (May), A better quality of life - A strategy for sustainable development for the UK. In December, Quality of life counts - Indicators for a strategy for sustainable development for the United Kingdom: a baseline assessment is published. 1999 Paul Hawken and Amory and Hunter Lovins publish “Natural Capitalism: The next industrial revolution” 1999 The Global Sullivan Principles launched

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1999 In an address to The World Economic Forum on 31 January 1999, United Nation Secretary-General Kofi Annan challenged business leaders to join an international initiative – the Global Compact – that would bring companies together with UN agencies, labour and civil society to support ten principles in the areas of human rights, labour and the environment. 1999 Creation of the Dow Jones Sustainability Indexes as the first global indexes tracking the financial performance of the leading sustainability-driven companies worldwide 1999 UK Corporations Disclosure Legislation passed. The Turnbull Report on corporate governance added reputation, probity and other non-financial risks to the necessary criteria for reporting risk to shareholders (September 1999) 1999 Environment ministers from 173 countries met in Bonn (Nov 4th) to discuss the Kyoto Agreement, end talks without any breakthroughs and with many difficult issues remaining unresolved.

Arguments against Corporate Social Responsibility:
If the arguments for a socially responsible approach were widely accepted, nobody would even use the label "CSR" because everyone would be doing it. Those of us who spend our time marshalling the case for would do well to spend a little time hearing the case against, and considering what should be the response. Of course, one of the challenges in

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considering cases "for" and "against" CSR is the wide variety of definitions of CSR that people use. We assume here we are talking about responsibility in how the company carries out its core function - not simply about companies giving money away to charity. Below are some of the key arguments most often used against CSR and some responses. *Businesse are owned by their shareholders - money spent on CSR by managers is theft of the rightful property of the owners *The leading companies who report on their social responsibility are basket cases the most effective business leaders don't waste time with this stuff *Our company is too busy surviving hard times to do this. We can't afford to take our eye off the ball - we have to focus on core business *It's the responsibility of the politicians to deal with all this stuff. It's not our role to get involved *I have no time for this. I've got to get out and sell more to make our profit line. *Corporations don't really care - they're just out to screw the poor and the environment to make their obscene profits

*Businesses are owned by their shareholders - money spent on CSR by managers is theft of the rightful property of the owners This is the voice of the laisser-faire 1980s, still being given powerful voice by advocates such as Elaine Sternberg. Sternberg argues that there is a human rights case against CSR, which is that a stakeholder approach to management deprives shareholders of their property rights. She states that the objectives sought by conventional views of social

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responsibility are absurd. Not all aspects of CSR are guilty of this, however. Sternberg states that ordinary decency, honesty and fairness should be expected of any corporation. Response: In the first instance, this case strongly depends on the model of social responsibility adopted by the business being a philanthropic one. The starting point assumption is that, through CSR, corporations simply get to "give away" money which rightfully belongs to other people. If CSR is seen as a process by which the business manages its relationships with a variety of influential stakeholders who can have a real influence on its license to operate, the business case becomes immediately apparent. CSR is about building relationships with customers, about attracting and retaining talented staff, about managing risk, and about assuring reputation. The market capitalization of a company often far exceeds the "property" value of the company. For instance, as much as 96% of Coca Cola is made up of "intangibles" - a major part of which rests on the reputation of the company. Only a fool would run risks with a company's reputation when it is so large a part of what the shares represent. In any case, if shareholders are accorded full property rights one would expect to see the balancing feature of responsibility for the actions taken by the enterprises they often fleetingly own. Since most shareholders remain completely unaware of any such responsibility, it can only fall to the management - the "controlling mind" of the company, to take that responsibility on.

*The leading companies who report on their social responsibility are basket cases the most effective business leaders don't waste time with this stuff. When surveys are carried out of the "Most Respected Business Leaders" you will often find names there, such as Bill Gates of Microsoft, a few years ago Jack Welch of GE, who have not achieved their world class status by playing nice. Welch is still remembered for the brutal downsizing he led his business through, and for the environmental pollution incidents and prosecutions. Microsoft has had one of the highest profile cases of bullying market dominance of recent times - and Gates has been able to achieve the financial status where he can choose to give lots of money away by being ruthless in business. Doesn't that go to prove that "real men don't do CSR"?! Response: There is no denying the force of this argument. We do not live in a Disney world where

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virtue is always seen to be rewarded, and that's a fact. Nevertheless, the picture is not as simple as the above argument makes out. In the first instance, very few businesses operate in a black or white framework, where they are either wholly virtuous or wholly without redemption. There are many aspects in the way Jack Welch restructured General Electric which would play to the kind of agenda recognizable to advocates of social responsibility - in particular that of employee empowerment. Welch has gone on record as saying that he believes the time has passed when making a profit and paying taxes was all that a company had to worry about. And since Welch moved on, General Electric has been busy catching up big time with its EcoMagination initiative. Also, many of the leading companies with regard to their social responsibility are equally successful companies. The same "Most Respected" surveys will usually provide other names at, or near, the top such as IBM and Motorola - and these are companies that have been much more strongly associated with the CSR movement. Coca Cola achieved its place partially because of its profile in social responsibility. When still in charge, Sir John Browne of BP was widely respected as having led BP into a strong position as one of the world's leading companies whilst also showing environmental leadership. The events that latterly tarnished that reputation simply show that skill in execution is key to success - but even those events don't disprove the fact that success in business and commitment to responsibility can go hand in hand. *Our company is too busy surviving hard times to do this. We can't afford to take our eye off the ball - we have to focus on core business. It's all very well for the very big companies with lots of resources at their disposal. For those fighting for survival, it's a very different picture. You can't go spending money on unnecessary frills when you're laying people off and morale is rock bottom. And the odd bit of employee volunteering won't make any difference to our people when they feel cynical and negative about how the company operates. Response: Managing your social responsibility is like any other aspect of managing your business. You can do it well, or you can do it badly. If the process of managing social responsibility leads you to take your eye off the ball and stop paying attention to core business, the problem is not that you're doing it at all - it's that you're doing it badly. Well managed CSR supports the

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business objectives of the company, builds relationships with key stakeholders whose opinion will be most valuable when times are hard, and should reduce business costs and maximize its effectiveness. If you don't believe me, ask yourself if the following statements make sense: Times are hard, therefore it is in my interest to pollute more and run an increased risk of prosecutions and fines, not to mention attracting the attention of environmental pressure groups Times are hard, therefore I can afford to lose some of my most talented people - serving or potential - by erecting barriers on the basis of race, gender, age orientation. And it doesn't matter if employment tribunals occur as a result of my poor employment practices. Times are hard; therefore I need to ignore changing values in my customer base towards socially responsible goods and services. I can keep making things just the way I always have. Times are hard, so I can ignore the fact that the local communities around my plant are poor living environments with low education achievement, meaning that my best staff won't want to live in them and our future staff will need supplementary training in basic skills such as literacy which they should be getting at school. Our company can be an island of prosperity in a sea of deprivation. *It's the responsibility of the politicians to deal with all this stuff. It's not our role to get involved Business has traditionally been beyond morality and public policy. We will do what we're allowed to do. We expect governments to provide the legal framework that says what society will put up with. There's no point, for instance, allowing smoking to remain legal - even making large tax receipt from it - and then acting as though tobacco companies are all immediately beyond the pale. If you think it's so dreadful, you should make it illegal. If not, then let us get on with the job of meeting the demand out there of adults who can choose for themselves. Response: In some areas, this is right - albeit that it is getting increasingly difficult to sustain. If you consider that of all the institutions which are currently getting more powerful in the world, they are essentially the global players - the multinational corporations and the non-governmental organizations. The institutions which are decreasing in power and influence are those tied to the jurisdiction of the nation state - governments first and foremost. It is tempting therefore to look towards the multinationals to take a lead in creating solutions for global problems where the

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governments seem incapable of achieving co-operative solutions. The interest of Unilever in sustainable fisheries comes to mind. However, there is a strong case that says that the democratic deficit created by such a process is too important to ignore. To whom are the multinational corporations accountable? Outside of that "macro" scale, the argument holds up less well. Many companies actually spend considerable time and money seeking to influence the formation of public policy in their area of interest. And since that area of interest can range far and wide - from international treaties on climate change, through to domestic policy on health (such as that relating to smoking) or transport - the fact is the lobbying activities of companies show that they have a role like it or not. And if that lobbying has involved blocking legislation that serves a social end purely in order to continue to profit in the short term, then the company is on very dodgy ground. If CSR is simply about obeying the law and paying taxes, then perhaps the above statement is fair comment. If it is about managing the demands and expectations of opinion formers, customers, shareholders, local communities, governments and environmental NGOs - if it is about managing risk and reputation, and investing in community resources on which you later depend - then the argument is a nonsense. *I have no time for this. I've got to get out and sell more to make our profit line. Response: I have spoken to a lot of business managers about environmental performance, and it always struck me how difficult a sell waste minimization was to managers who really needed to save money. Study after study after study has shown that just about any business you can think of, if it undertakes waste minimization for the first time, can shift 1% of its overall turnover straight onto its bottom line. That is not an insignificant figure. And yet, getting out and selling more products somehow remains more attractive for business managers than making more profit through wasting less. It will take a long time and a change in fundamental attitudes towards doing business before this one shifts. In the mean time, keep looking at the evidence. *Corporations don't really care - they're just out to screw the poor and the environment to make their obscene profits

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Corporations have their share of things to answer for - but I simply don't recognize the cynical caricature of business leaders in many of the people I deal with in business today. The fact is that if you're interested in the real solutions to world poverty or environmental degradation, you have to have some kind of view about how solutions will be found. I haven't yet seen the vision described by the anti-corporatist movement that shows how the problems will be solved by "us" somehow triumphing over "them" - big business. The solutions to these common problems will either be common solutions or they won't be solutions. By all means give careful scrutiny to those who wield the most power. But recognize CSR as a business framework which enables the common solution of wealth creation as if people and the environment mattered.

Approaches of CSR:
An approach for CSR that is becoming more widely accepted is community-based development projects, such as the Shell Foundation's involvement in the Flower Valley, South Africa. Here they have set up an Early Learning Centre to help educate the community's children, as well as develop new skills for the adults. Marks and Spencer is also active in this community through the building of a trade network with the community - guaranteeing regular fair trade purchases. Often alternative approaches to this are the establishment of education facilities for adults, as well as HIV/AIDS education programs. The majority of these CSR projects are established in Africa. A more common approach of CSR is through the giving of aid to local organizations and impoverished communities in developing countries. Some organizations [who?] do not like this approach as it does not help build on the skills of the local people, whereas community-based development generally leads to more sustainable development. *Social accounting, auditing, and reporting Taking responsibility for its impact on society means in the first instance that a company accounts for its actions. Social accounting, a concept describing the communication of social and environmental effects of a company's economic actions to particular interest groups within society and to society at large, is thus an important element of CSR.

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*A number of reporting guidelines or standards have been developed to serve as frameworks for social accounting, auditing and reporting: -Account Ability's AA1000 standard, based on John Elkington's triple bottom line (3BL) reporting -Accounting for Sustainability's Connected Reporting Framework. -Global Reporting Initiative's Sustainability Reporting Guidelines -Good Corporation's Standard developed in association with the Institute of Business Ethics -Green Globe Certification / Standard -Social Accountability International's SA8000 standard -The ISO 14000 environmental management standard -The United Nations Global Compact promotes companies reporting in the format of a Communication on Progress (COP). A COP report describes the company's implementation of the Compact's ten universal principles. -The United Nations Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR) provides voluntary technical guidance on eco-efficiency indicators, corporate responsibility reporting and corporate governance disclosure. -Verite's Monitoring Guidelines The FTSE Group publishes the FTSE4Good Index, an evaluation of CSR performance of companies. In some nations legal requirements for social accounting, auditing and reporting exist (e.g. in the French Bilan Social), though agreement on meaningful measurements of social and environmental performance is difficult. Many companies now produce externally audited annual reports that cover Sustainable Development and CSR issues ("Triple Bottom Line Reports"), but the reports vary widely in format, style, and evaluation methodology (even within the same industry). Critics dismiss these reports as lip service, citing examples such as Enron's yearly "Corporate Responsibility Annual Report" and tobacco corporations' social reports. Potential business benefits The scale and nature of the benefits of CSR for an organization can vary depending on the nature of the enterprise, and are difficult to quantify, though there is a large body of

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literature exhorting business to adopt measures beyond financial ones (e.g., Deming's Fourteen Points, balanced scorecards). Orlitzky, Schmidt, and Rynes[6] found a correlation between social/environmental performance and financial performance. However, businesses may not be looking at short-run financial returns when developing their CSR strategy. The definition of CSR used within an organization can vary from the strict "stakeholder impacts" definition used by many CSR advocates and will often include charitable efforts and volunteering. CSR may be based within the human resources, business development or public relations departments of an organization, or may be given a separate unit reporting to the CEO or in some cases directly to the board. Some companies may implement CSR-type values without a clearly defined team or program. The business case for CSR within a company will likely rest on one or more of these arguments: 1) Human resources A CSR program can be an aid to recruitment and retention,[8] particularly within the competitive graduate student market. Potential recruits often ask about a firm's CSR policy during an interview, and having a comprehensive policy can give an advantage. CSR can also help to improve the perception of a company among its staff, particularly when staff can become involved through payroll giving, fundraising activities or community volunteering. 2) Risk management Managing risk is a central part of many corporate strategies. Reputations that take decades to build up can be ruined in hours through incidents such as corruption scandals or environmental accidents. These can also draw unwanted attention from regulators, courts, governments and media. Building a genuine culture of 'doing the right thing' within a corporation can offset these risks. 3) Brand differentiation In crowded marketplaces, companies strive for a unique selling proposition that can separate them from the competition in the minds of consumers. CSR can play a role in

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building customer loyalty based on distinctive ethical values.[10] Several major brands, such as The Co-operative Group, The Body Shop and American Apparel[11] are built on ethical values. Business service organizations can benefit too from building a reputation for integrity and best practice. 4) License to operate Corporations are keen to avoid interference in their business through taxation or regulations. By taking substantive voluntary steps, they can persuade governments and the wider public that they are taking issues such as health and safety, diversity or the environment good corporate citizens with respect to labor standards and impacts on the environment.

CSR and Questionable Motives:
Some critics believe that CSR programs are undertaken by companies such as British American Tobacco (BAT), the petroleum giant BP (well-known for its high-profile advertising campaigns on environmental aspects of its operations), and McDonald's (see below) to distract the public from ethical questions posed by their core operations. They argue that some corporations start CSR programs for the commercial benefit they enjoy through raising their reputation with the public or with government. They suggest that corporations which exist solely to maximize profits are unable to advance the interests of society as a whole. Another concern is when companies claim to promote CSR and be committed to Sustainable Development whilst simultaneously engaging in harmful business practices. For example, since the 1970s, the McDonald's Corporation's association with Ronald McDonald House has been viewed as CSR and relationship marketing. More recently, as CSR has become mainstream, the company has beefed up its CSR programs related to its labor, environmental and other practices. All the same, in McDonald's Restaurants v Morris & Steel, Lord Justices Pill, May and Keane ruled that it was fair comment to say that McDonald's employees worldwide 'do badly in terms of pay and conditions and true that 'if one eats enough McDonald's food, one's diet may well become high in fat etc., with the very real risk of heart disease. Shell has a much-

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publicized CSR policy and was a pioneer in triple bottom line reporting, but this did not prevent the 2004 scandal concerning its misreporting of oil reserves, which seriously damaged its reputation and led to charges of hypocrisy. Since then, the Shell Foundation has become involved in many projects across the world, including a partnership with Marks and Spencer (UK) in three flower and fruit growing communities across Africa. Critics concerned with corporate hypocrisy and insincerity generally suggest that better governmental and international regulation and enforcement, rather than voluntary measures, are necessary to ensure that companies behave in a socially responsible manner.

Motivations to Adopt CSR:
Corporations are motivated to adopt CSR practices by several different factors those are giving below: 1) Ethical consumerism The rise in popularity of ethical consumerism over the last two decades can be linked to the rise of CSR. As global population increases, so does the pressure on limited natural resources required to meet rising consumer demand (Grace and Cohen 2005, 147). Industrialization in many developing countries is booming as a result of technology and globalization. Consumers are becoming more aware of the environmental and social implications of their day-to-day consumer decisions and are beginning to make purchasing decisions related to their environmental and ethical concerns. However, this practice is far from consistent or universal.

2) Globalization and market forces As corporations pursue growth through globalization, they have encountered new challenges that impose limits to their growth and potential profits. Government

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regulations, tariffs, environmental restrictions and varying standards of what constitutes labor exploitation are problems that can cost organizations millions of dollars. Some view ethical issues as simply a costly hindrance. Some companies use CSR methodologies as a strategic tactic to gain public support for their presence in global markets, helping them sustain a competitive advantage by using their social contributions to provide a subconscious level of advertising. (Fry, Keim, Meiners 1986, 105) Global competition places particular pressure on multinational corporations to examine not only their own labor practices, but those of their entire supply chain, from a CSR perspective.

3) Social awareness and education The role among corporate stakeholders to work collectively to pressure corporations is changing. Shareholders and investors themselves, through socially responsible investing are exerting pressure on corporations to behave responsibly. Non-governmental organizations are also taking an increasing role, leveraging the power of the media and the Internet to increase their scrutiny and collective activism around corporate behavior. Through education and dialogue, the development of community in holding businesses responsible for their actions is growing (Roux 2007).

4) Ethics training The rise of ethics training inside corporations, some of it required by government regulation, is another driver credited with changing the behavior and culture of corporations. The aim of such training is to help employees make ethical decisions when the answers are unclear. Tullberg believes that humans are built with the capacity to cheat and manipulate, a view taken from (Trivers 1971, 1985), hence the need for learning normative values and rules in human behaviour (Tullberg 1996). The most direct benefit is reducing the likelihood of "dirty hands" (Grace and Cohen 2005), fines and damaged reputations for breaching laws or moral norms. Organizations also see secondary benefit in increasing employee loyalty and pride in the organization. Caterpillar and Best Buy are examples of organizations that have taken such steps (Thilmany 2007).Increasingly, companies are becoming interested in processes that can add visibility to their CSR

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policies and activities. One method that is gaining increasing popularity is the use of well-grounded training programs, where CSR is a major issue, and business simulations can play a part in this.[citation needed] 5) Laws and regulation Another driver of CSR is the role of independent mediators, particularly the government, in ensuring that corporations are prevented from harming the broader social good, including people and the environment. CSR critics such as Robert Reich argue that governments should set the agenda for social responsibility by the way of laws and regulation that will allow a business to conduct them responsibly. The issues surrounding government regulation pose several problems. Regulation in itself is unable to cover every aspect in detail of a corporation's operations. This leads to burdensome legal processes bogged down in interpretations of the law and debatable grey areas (Sacconi 2004). General Electric is an example of a corporation that has failed to clean up the Hudson River after contaminating it with organic pollutants. The company continues to argue via the legal process on assignment of liability, while the cleanup remains stagnant. (Sullivan & Schiafo,2005). The second issue is the financial burden that regulation can place on a nation's economy. This view shared by Bulkeley, who cites the Australian federal government's actions to avoid compliance with the Kyoto Protocol in 1997, on the concerns of economic loss and national interest. The Australian government took the position that signing the Kyoto Pact would have caused more significant economic losses for Australia than for any other OECD nation (Bulkeley 2001, pg 436). Critics of CSR also point out that organisations pay taxes to government to ensure that society and the environment are not adversely affected by business activities. Denmark made a law on CSR. 16 December 2008, the Danish parliament adopted a bill making it mandatory for the largest Danish companies, investors and state owned companies to include information on corporate social responsibility (CSR) in their annual financial reports. The reporting requirements became effective on 1 January 2009. The information shall include: *Information on the companies’ policies for CSR or socially responsible investments (SRI)

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*Information on how such policies are implemented in practice and *Information on what results have been obtained so far and management’s expectations for the future with regard to CSR/SRI. CSR/SRI is still voluntary in Denmark, but if a company has no policy on this they must state information to that effect explicitly in their annual financial report. 6) Crises and their consequences Often it takes a crisis to precipitate attention to CSR. One of the most active stands against environmental management is the CERES Principles that resulted after the Exxon Valdez incident in Alaska in 1989 (Grace and Cohen 2006). Other examples include the lead poisoning paint used by toy giant Mattel, which required a recall of millions of toys globally and caused the company to initiate new risk management and quality control processes. In another example, Magellan Metals in the West Australian town of Esperance was responsible for lead contamination killing thousands of birds in the area. The company had to cease business immediately and work with independent regulatory bodies to execute a cleanup. 7) Stakeholder priorities Increasingly, corporations are motivated to become more socially responsible because their most important stakeholders expect them to understand and address the social and community issues that are relevant to them. Understanding what causes are important to employees is usually the first priority because of the many interrelated business benefits that can be derived from increased employee engagement (i.e. more loyalty, improved recruitment, increased retention, higher productivity, and so on). Key external stakeholders include customers, consumers, investors (particularly institutional investors, regulators, academics, and the media).

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Chapter Five CSR of Banking Institutions in Bangladesh

Trust Bank Ltd.
*CORPORATE SOCIAL RESPONSIBILITY (CSR)

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The Board of Directors is planning to establish a technical training institute out of the contribution from this fund. The objective of the proposed training institute will be to prepare technically skilled human resources to meet both domestic and overseas demands. As per initial plan, the training institute will run under affiliation of Bangladesh Technical Education Board and will impart different vocational trainings to the both serving/retired army personnel and unemployed youths of the country. In the mean time the Bank has received request for assistance from Sena Sahayak School, established for the disabled and autistic children. The Bank will consider such humanitarian calls since this falls within the purview of the objectivity of the fund. Besides, in future the Bank will consider other assistance like granting stipend to poor but meritorious students of different educational institutions, establishing healthcare centers for the underprivileged section of the society and offering financial assistance to affected people during natural calamities. *Promoting Sports As part of our CSR, we are currently sponsoring Teakwood game. Passport Application Processing Like previous year passport application processing service has been extended to 4 more branches and 17 branches are now rendering the services. Names of those branches will be available from the list of branches provided inside the Annual Report. In 2008, we delivered 35660 passports. In the mean time we have approached Passport and Immigration Department to include 14 more branches of our Bank for the service. As part of our Corporate Social Responsibility (CSR), the Board of Directors decided to establish a special reserve fund with contribution not exceeding 10 percent of Bank’s total income every year, in accordance with sub-section v of section 29 of Income tax Ordinance, 1984. The objects of the fund will be, among other things: > To establish health care center for retired army staff or army staff in service. > To establish health care center for executives, officers & staff of the Bank.

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> To establish educational institution(s). > To establish school for disabled children of Army Personnel and general public, provide necessary support to the school including stipend to students. > To act for the welfare of retired army staff or army staff in service. > To act for the welfare of the executives, officers & staff of the Bank as well as for the public in general. > To contribute during natural calamities e.g. flood, cyclone, earthquake etc. > To provide scholarship to the children of retired and serving Army personnel, Bank’s officers and staff as well as meritorious students of the general public. > To contribute for any humanitarian purpose as may be decided by the Board of Trustees. In addition, with a view to promote sports in the country the Bank has decided to sponsor a national sports event. Accordingly, the Bank is sponsoring Bangladesh Teakwood Federation for promoting Teakwood in the country. With the financial assistance of the Bank, Teakwood Federation has organized tournaments, provided training to the young players and purchased different equipment & required for training.

Southeast Bank Ltd.
*Corporate Social Responsibility

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Southeast Bank’s banking practice is based on a network of relationship with its employees, customers, suppliers, business associates, shareholders, regulatory authorities, and the community. The Bank’s corporate social responsibility is about addressing the needs of all the stake holders in a way that advances its business and makes a positive and meaningful contribution to the society. 01. Employees The Bank’s business is dynamic and growing. This dynamism and growth comes from its skilled and experienced human resource that can be found at every level of the organization. The Bank offers its employees very competitive pay package and bonus that are reviewed on a continuous basis in line with the market forces. It provides the employees a safe and congenial work environment. It also offers its employees handsome retirement benefits by way of Contributory Provident Fund, Gratuity, Superannuation benefits, etc. As a consequence, Southeast Bank has emerged as a Bank with a vision; workplace of choice of many. The Bank’s rapid growth in business presents opportunities for talented employees to take added responsibilities. The employees follow the ethical and other codes of conduct as embodied in the Service Rules and Regulations of the Bank. 02. Customers The need to focus on the need of customers is fundamental to banking business. Southeast bank discharges this vital responsibility by offering financial products and services that truly meets their needs. In discharging this vital responsibility, the Bank always strives to maintain the highest standard of ethics in the conduct of its business. The Bank feels proud that these efforts have earned it the trust of the customers. This trust in turn motivates the Bank to carry out every single transaction with the customers with the highest degree of commitment and transparency without any hidden cost. The Bank looks upon the customers as its partners in business and sincerely endeavors to improve its relationship with them for mutual benefit. 03. Shareholders

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The Southeast bank is fully committed to protect the interest of its shareholders. Their constructive suggestions are implemented for the betterment of the company. It releases enough disclosures for the information of the shareholders in the Annual Reports, halfyearly financial statements, the print and electronic media and in the Bank’s website. It always endeavors to enhance shareholders value by optimizing financial performance at least cost. Since inception, the Bank has paid good dividends to the shareholders. The number of shareholders of the Bank is increasing that testifies their unshakable faith in the Bank. 04. The Bank’s Business Associates The Bank continuously endeavors to create a long-lasting win-win relationship with its suppliers and business associates for mutual growth. Its relationship with them is based on mutual trust and respect. It deals with them in a fair and transparent way. Southeast Bank enjoys credit lines from Correspondents and Foreign Banks and special credit line from ADB and IFC. 05. Environment The Bank continuously strives to ensure that its operations are environment-friendly and discourages financing projects contrary to it. It has extended its helping hands to initiatives of community leaders for environment protection and development. It is one of the leading participants in the beautification of Dhaka City. The beautification of the road-island from Russell Square to Manik Miah Avenue has been done by the Southeast Bank.

06. Regulators Southeast bank firmly believes that it is imperative to comply with the relevant laws, rules and regulations of all regulatory authorities to be a responsible corporate citizen.

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The Bank’s business practices are transparent and are appreciated by the regulators. The Bank operates cautiously observing the anti-money laundering practices. 07. Community Southeast Bank works to promote good community relations to foster a relationship of understanding, trust and credibility. It has a long history of support for charitable causes for education, sports, art, culture, health-cares, community development, relief operations etc.

Pubali Bank Ltd.

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Pubali Bank Limited is very much committed to the Corporate Social Responsibilty (CSR). Social responsibility is designed to respond for the greater interest of the society. The bank believes that without awareness of social responsibility and keeping performance in accordance to the need of country can attain a sustainable development. Since there is no hard and first formula to follow for expressing CSR, each organization is characterized by its own circumstances and vision. Pubali Bak Limited shows its obligation for upliftment of backward of health sector. Pubali Bank takes part in real needs of the society. To promote the health sector is motto of the bank. The bank financially assists various Thrust/ Organizations/ Associations who are involved in providing charitable and voluntary sophisticated and specialized modern medical treatment to the down trodden general mass of the society. It reflects from active participation for establishing Ahsanla Mission Cancer Hospital. The bank munificently donated substantial amount for construction of this Cancer Hosptial. The bank also extends support to the development of the community through promotion of sports, culture, and educational program. The bank ponders to develop human resources and generously nourish scholarship program to the brilliant children of employees of Pubali Bank Limited.

Eastern Bank Ltd.

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EBl’s first strong CSR initiative “EBL – DUAA Inspiration” got materialized this year. A total of 224 students from batch academic year of 58 departments of University of Dhaka received awards for their academic achievements. Among others, EBL also donated a hefty amount to Bangladesh Protibondhi Foundation for building its won premises at Mirpur, Dhaka. More CSR activities will continue in 2009 and beyond. Society, Community and Environment: The Bank realizes the importance of contributing to the public, community, and society as a whole for a sustainable future. The Bank ensures that the customer having production facilities susceptible to damage environment has due environmental clearance certificate from the concerned ministry while granting or renewing credit facilities. Through different CSR activities, EBL always tries to maximize utility for the target group of people. Corporate social responsibility (CSR): EBL’s first strong CSR initiative “EBL-DUAA Inspiration” got materialized this year. A number of 224 students from each academic year of 56 departments of University of Dhaka received awards for their academic achievements. Dhaka University Alumni Association is the official partner of the initiative. The award program was arranged at TSC Auditorium and more than 600 teachers, parents and students attended the event. EBL-DUAA Inspiration is the first private financial grants program that encompasses every department of the University. EBL also donated several desktop and laptop computers to different departments of the university round the year as part of its developmental commitment to the University. EBL also donated a hefty amount to Bangladesh Protibondhi Foundation for building its own premises at Mirpur, Dhaka. Other than this several CSR activities were done – especially in the education sector.

One Bank

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*Bangladesh Flood Bank tried to mitigate the sufferings of the flood stricken people in the villages of Meradia/ Shatarkul (Dhaka), by distributing Family Bags amongst 1,100 families. Each bag contained the following items: Rice: 3 Kg, Pulses: 1 Kg, Salt: 1Kg, Molasses (Gur): 1 Kg, Two pieces of Sari & 2 pieces of Lungi (one large and one small). The recipients very much appreciated our endeavor.

*111 new houses constructed for the flood affected families at Sylhet and Dohar After the Floodwaters had receded, the Bank constructed or repaired 111 houses, at an average cost of Taka fifteen thousand each, in the following two areas: a) Mahmudpur Union council-07, P.0 Horichandi, P.S: Dohar, Dhaka- 53 houses b) Mullargoan Union council, Dhakin Surma, Sylhet Sadar, Sylhet- 58 houses. The Bank spent in flood related relief activities.

*Cricket Bank has been actively supporting the flourishing of Cricket in Bangladesh. To facilitate the movement of cricket officials, the Bank has presented one microbus to the Bangladesh Cricket Control Board. In addition, your bank has been the official tickets sponsor for the New Zealand, India and Zimbabwe cricket (Test and ODI) series, We are very pleased that during our above described association, Bangladesh Team's performance has started to turn around and the victory against India and Zimbabwe has made the nation proud!

Bank Asia Ltd.

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Corporate Social Responsibility Bank Asia, from the very beginning, recognized the need to develop and promote CSR as a part of its culture, identity and business practice. Being socially responsible means not only fulfilling legal obligations but also going beyond compliance and investing more into human capital, the environment and relations with stakeholders. The basic driver of CSR consists of values that have taken place within businesses where they not only feel responsible for creation of wealth but also for social and environmental well being. We are decidedly committed to being an equal opportunity employer, protecting the environment, and finally, serving the community of which we are a part. We strive to achieve further development of balanced corporate performance in the economic, social and ecological arena. The employees are encouraged to be responsible corporate citizens and to conduct business in a manner that promotes sustainable development for both the Bank and the community. it serves. A summary of the CSR activities of the year 2008 of Bank Asia is presented below: 1. Education An educated nation can build a civilized society. Recognizing the importance of education in nation and society building, Bank Asia has initiated an ambitious plan titled “Bank Asia Higher Studies Scholarship” to provide assistance to those students who have merit and dream in their eyes to serve the society, but not the means to pursue higher studies. Under the scheme, the Bank awards poor but meritorious students of rural areas where the Bank has its branches for their higher studies in core subjects, namely Engineering, Medicine, Physics, Chemistry, Business, Economics, Management, Finance, Banking, etc. The scholarships are given basing on the SSC and HSC exam results and the duration of the scholarship is generally 4 to 5 years. But it may be extended depending on the course duration. Under the program, students receive per month. Besides, a lump sum grant is given annually to purchase books and for payment of tuition fees. This scheme was introduced in 2005 and till 2007 thirty students have received the scholarships who are studying in different premier educational institutions of the country. For the year 2008, a total of 50 (fifty) students have been awarded this

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scholarship and presently a grand total of 80 (eighty) students are enjoying benefit of this scheme.

2. Health Care a) Free Ophthalmologic Operations In the year 2005, Bank Asia started a program in collaboration with Bangladesh Eye Hospital (BEH) to help the handicapped and the underprivileged by providing necessary financial support for performing ophthalmologic operation of all born blind children of Bangladesh. The trained doctors of BEH conduct the operations in their modern hospital equipped with latest equipments and technology at Dhanmondi. So far, a total of 929 children have been operated. b) Free Eye Camps In addition to the ophthalmologic operations, the Bank arranges free Eye Camps in the rural areas where free treatments including spectacles are provided to a large number of school going poor boys and girls and other people of the localities concerned. c) Donations to Hospitals The Bank has donated an amount of Tk. 2.00 million to Islamia Eye Hospital (IEH) for the construction of a children ward at the hospital premises. Furthermore, at our persuasion, the Muslim Commercial Bank of Pakistan donated an amount of Tk. 2.00 million to IEH for the same purpose. The Bank has donated an amount of Tk. 1.5 million for purchasing of an ambulance for a hospital run by Bir Shreshta Matiur Rahman Foundation. Besides, we have financially supported Center for Rehabilitation of the Paralyzed (CRP), Savar and Thengamara Mohila Sobuj Shangha (TMSS) for their hospital at Bogra and also to Acid Survivors Foundation.

d) Blood Donation Camps

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The Bank also arranges voluntary blood donation campaign on various national occasions where the officers of Bank and general people participated spontaneously.

3. Information Technology Computer literacy is essential to our growth and development and it needs to be spread to our rural areas. The Bank works with a philosophy to help poor students in rural areas by establishing and operating Computer Learning Centers (CLC) in different schools in providing a technological platform for students, which will help in their endeavors to a brighter future. We have taken this initiative to contribute to the promising IT sector of the country. Already 13 CLCs have been established in different rural schools and are in full operation. About 1,000 students have been enrolled so far in these CLCs out of which 900 students have already obtained certificates. Bank Asia is going to setup another 15 CLCs from where more than 3,000 students are expected to receive education in computer technology every year.

4. Agricultural Growth & Poverty Mitigation Considering the importance of the rural economy in the economic development of the country, agricultural finance occupies a special position in the lending activities of the Bank. In order to provide support to the poor farmers of Bangladesh who play a crucial role in the development of the country, the Bank disburses agricultural loans mainly through its rural branches. Concurrently, credit lines are also extended to different NGOs to support our initiatives for agricultural development and alleviation of poverty in the rural areas. Poverty alleviation is another area where the Bank has laid emphasis from the very beginning. To fulfill the purpose, the Bank has introduced schemes namely “Palli Shawnirvor” and “Kormoshangsthan Prokolpo” under which micro finance is channeled to the target groups through our rural branches. So far, the Bank has extended loans in these sectors up to September 30, 2008 through NGOs and rural branches. About 20,000 poor rural families including the farmers in the countryside have been benefited.

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5. SME Activities For generation of self employment and overall development of the country, the importance of Small and Medium Enterprises (SME) can hardly be over- emphasized. Bank Asia started its structured SME banking from June 2007. In this venture, the Bank has diversified its credit portfolio throughout the country within a short span of time by setting separate units for SME and invested a considerable amount in this sector. The Bank has disbursed for SME financing and the program is being expanded rapidly. 6. Natural Calamities As a responsible corporate citizen, Bank Asia believes that it is committed to the welfare of the community at large. Whenever there is any natural calamity, the Bank responds promptly to aid the affected humanity. In November, the severe cyclonic storm SIDR had devastated a large part of south – eastern belt of the country and though within its limited resources, the Bank did its best to provide relief to the distressed people. The Bank donated to the Chief Advisor’s Relief Fund and Army Chief’s Relief Fund for the SIDR affected people. Besides, the employees of the Bank donated their one-day salary to the relief fund of the Bank. The Bank distributed relief materials from its relief fund among 500 victims at Shoronkhola (Bagherhat), the worst SIDR affected area of the country. We would like to declare our pledge that Bank Asia is always ready to stand by the poor disaster affected people of the country. 7. Dhaka City Beautification Dhaka City Corporation has a project named “Beautification of Dhaka Metropolitan City” and Bank Asia has a spontaneous participation in this program. Under the project, the Bank has taken the responsibility of maintenance of 3.0 km long road island running between US Embassy at Natun Bazar, Kuril and Rail Gate, Bishaw Road, Khilkhet. The long island is planted and plastered with multi varieties of flower plants which have given the surrounding greenery, a cheering and attractive look with beneficial impact on the environment.

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8. Different Social and Cultural Programs As a responsible corporate citizen, Bank Asia regularly arranges and participates in different social and cultural programs like celebration of Pohela Boishakh, International Mother Language Day, Independence Day, Victory Day, etc. Besides, Bank Asia also arranges Ifter Party and Doa Mahfill during holy Ramadan at different branches. People from different social levels participate there. 9. Environment Bank Asia has been one of the pioneers in supporting environment friendly CNG projects by financing CNG conversion and CNG filling stations. The Bank has decided not to finance any tobacco related business or any environmentally hazardous business. Besides, all the offices of Bank Asia are declared as smoking free zone. 10. Financial Support for Deceased Employee’s Family It was a matter of great sorrow that Mr. Nurul Amin, a brilliant officer of the Bank and former manager of Tarail Branch expired on 12th February, while he was on duty. He left behind his wife, one son and a child yet to be born. His untimely death was a great tragedy to his near and dear ones. As part of its responsibility, the Bank has come forward to help the deceased’s family members and it was decided that they would receive financial assistance.

NCC Bank Ltd.

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Corporate Social Responsibility (CSR): NCC Bank has always given due importance to its responsibility to the society. Its Sponsors and Management believe that Banks and financial institutes can do a lot by way of their operation to change. NCC Bank has a long and mention worthy record of discharging its duty to the society. In order to institutionalize the activities, the Board of Directors has established NCC Bank Foundation and has taken a number of programs under its banner. We are pleased to list some of our efforts in this regard. Distribution of Relief Fund: 1. To help the Flood and Sidr victims, the Bank has donated to the Chief Advisor's Relief Fund and Relief Fund of the Chief of Army Staff. 2. The Bank has distributed blankets to the destitute of southern part of the country to help them in coping with severe cold wave. 3. To help the victims of BDR carnage the Bank has donated 4. To extend help to the family of late Lt. Col. Lutfor Rahman Khan, a victim of BDR incident, the Bank will pay for a period of 10 (Ten) years Education: 1. Books of different taste have been distributed to educational institutes of remote areas of the country 2. Scholarship offered to 05 (five) meritorious students of Faculty of Business Studies, University of Dhaka. 3. Under the banner of the NCC Bank Foundation, the Bank distributed education materials to poor students of Dahagram and Angorpata enclaves. 4. Awarded scholarships to talented but distressed students and grant assistance to the off-springs of the Bank's employees. 5. The Bank Sponsors Viqarunnessa Noon School & College Science Fair. Health Care: With a view to assisting destitute in treatment, the Bank extend subsidy to a City Hospital.

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Sports: 1. The Bank sponsored Inter-District Volley- Ball Tournament, NCC Bank Bhatiary Golf Tournament onward & Dhaka University Convocation. 2. The Bank published souvenirs on the occasion of ICC World Cup Cricket and World Cup Football to distribute among the sports loving people free of cost. 3. The Bank has been Sponsoring Bangladesh Cycling Federation to help popularizing Cycling in Bangladesh. Seminars: The Bank has sponsored/co-sponsored a number of Seminars/Symposium on the topics concerning various social and economic issues which paved a way of looking at the picture from different angle.

National Bank Ltd.

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*Employment NBL has been continuously creating new fields of employment every year by way of expansion of its business activities and branch network, the bank created employment for 238 personnel

*Education It was established in 1989 for fulfilling responsibilities for welfare of the society .It has been running the National Bank public School and collage in Moghbazar, Dhaka. In 2008, 53 students appeared at the SSC Examination among them 25 students achieved Golden A+ and 32 students appeared at the H.S.C. examination among them 4 students achievedGoldenA+. The bank has een accommod prospective graduates o recognized universities for completingheirinternship. NBL also awarded stipend and scholarship to the brilliant children of the employees of the bank.

*Sports and Culture: Nation Bank has a tradition of patronizing and sponsoring sports and cultural of the country. The “National Bank Volleyball league ” was arranged under patronization of the Bank. NBL has been arranging annual picnic for gathering and recreation o its executives, officers and staff.

*Disasters relief: It always extends its helping hands and stands by the suffering and helpless people in timesofnaturalcalamities. National Bank Limited donated to help the victims of flood, Lac for relief operation for landslide victims and for Sider victims to the relief fund of the

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Chief advisor and the Army Chief. The Bank has also taken a pilot project for post flood agricultural rehabilitation at Sirajgonj. A Payment Order has been handed over to the Hon'ble Prime Minister as a donation/financial assisrance to the bereaved family members of the martyred Army Officers killed in the BDR , NBL donated to the Hon able Prime Minister to hand over the same to the family members of the martyred Army Officer which will be paid to 5 (five) families for 1 year which will continue for 10 years. *Others: NBL always maintain their corporate social responsibility by in various ways. NBL always appreciate various kinds of fair, festival and other gatherings organized by different private or public sectors.

Islami Bank Ltd.
Being the first Islamic Bank in South-East Asia Islami Bank Bangladesh Limited introduced welfare oriented banking. For the development of a dynamic organization,

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especially ethical commercial financial house like this, corporate communication and public relations, planned publicity and motivational publication are essential. Islami Bank Bangladesh Limited is always played the role as front-runner in managing the perceptions of the society and educating them on the advantageous modes of Islamic Banking in the present critical situation of world economy. Under its multi-pronged approach, since its inception, the Bank has been relentlessly working to familiarize the people with the concepts and operations of Islamic Banking. Hence, publicity and public relations occupy an important place in the day-to-day activities of the Bank. The Bank accomplished various activities regarding publication, publicity and social welfare, the important activities are mentioned below:

Publicity The leading newspapers and magazines of the country published press release of different programs of the Bank, editorials, features, and in-depth reports on the performances of different types of welfare oriented schemes and progress of the Bank during the year. Public Relations Several meetings for exchanging views with renowned journalists and executives of the Bank were arranged. Through these meetings the journalists were informed about distinguished and welfare oriented activities of the Bank and they expressed their enthusiasm towards these activities. Seminar A number of seminars and get together functions were organized to disseminate the concepts of Islamic economics & Banking at different places on the eve of inauguration of 10(ten) new Branches and 10 (ten) SME Service Centres of the Bank. Promotional Activities Different types of books and gifts were distributed amongst the important national and international dignitaries and organizations.

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Beautification/Green Program Under the beautification/Green program of Dhaka City Corporation, Islami Bank Bangladesh Limited is working to enhance beautification of the road in the Dhaka City area starting from Rajarbag Traffic Signal to Kamalapur Railway Station by plantation of beautiful plants and trees on Road Island. Promotion of Environment IBBL is committed to discharge its due social responsibility and is especially concerned about the impact of bank's financed projects on environment. An environmental policy has been formulated in accordance with guideline issued by the government. As per policy, environmental impact will be considered through investment (credit) risks analysis. Environmental Awareness They have around 1053 industrial projects located into 19 different industrial sectors. We believe in Green Industrialization. It's a common practice of our Bank to take clearance from the Government Authorities to establish each project so that no environmental hazards are created by the projects. We take all possible care to protect the environmental pollution by our projects. In this regard we encourage our Dyeing & Printing Projects to establish Effluent Treatment Plants (ETP) to protect water and soil from pollution. All the Brick Fields financed by IBBL have at least 120 feet Chimney to minimize the air pollution. We assure NOC of various Authorities such as, Explosive Department, Fire Services Department, Rupantorito Prakritic Gas (Compressed Natural Gas) Company etc. for setting up gasoline/CNG filling station. We ensure by visiting the projects whether the client compliances all the requirements or not and we do not invest in any project which is hazardous to the environment. Education Support Program Having considered education as a tool for social change, IBBL has made an effort required to remove the access barrier of some of many economic hard-hit meritorious students to their desired level of education. Under this programme IBBL awards

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scholarship among the meritorious wards of Bank's officials and the meritorious students of Banking and Finance Department- University of Dhaka, University of Chittagong and Manarat International University who secure 1st, 2nd & 3rdposition in the M.B.A examination. SOCIAL SERVICES THROUGH ISLAMI BANK FOUNDATION As a responsible corporate citizen, Islami Bank Bangladesh Ltd. is playing a vital role for development of the society through Islami Bank Foundation. The Foundation was established for providing financial assistance to the poor and needy people through various income generating, healthcare, relief and rehabilitation, education, humanitarian, dawa and special programs. A brief summary of activities of Islami Bank Foundation is given below: Health Care Services Islami Bank Hospitals Six Islami Bank Hospitals have been functioning with good reputation: two in Dhaka, two in Rajshahi, one in Khulna and one in Barisal, extending facilities in the field of Medicine, Surgery, Gynae, Pediatric, E.N.T, Urology, Neurosurgery, Skin, Eye, Orthopedic, Cardiology etc. at a cost within the reach of common people. In the year 2008 and 2007 a total number of 5,53,084 and 5,47,226 patients received treatment facilities from Islami Bank Hospitals respectively. Islami Bank Community Hospitals The activities of Seven Islami Bank Community Hospitals at Satkhira, Manikganj, Rangpur, Faridpur, Jhenidah, Dinajpur and Naogaon are going in full swing. Four more community hospitals are going to be started soon in Madaripur, Noakhali, Mymensing and Feni. In the year 2008 and 2007 a total number of 75,967 and 62,640 patients received treatment facilities from Islami Bank Community Hospitals respectively. Mobile Eye Camp

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A good number of people have been suffering from various eye diseases, but due to non availability of eye specialists especially in the rural areas they can not receive proper treatment. Financial inability is one of the important factors and for this reasons many poor people cannot receive proper eye treatment facility. Keeping in view of the above, Islami Bank Foundation has introduced mobile eye camp project to render modern eye treatment facilities to the people of all walks of life. Under this program, poor people are receiving eye treatment facilities at a nominal cost. The rich are also receiving the treatment facilities at a very subsidized rate. In the year 2008 and 2007 a total number of 3,000 & 2,500 patients received eye treatment through Mobile Eye Camp arranged by Islami Bank Fundation respectively. Charitable Dispensaries Islami Bank Foundation has been running a good number of Charitable Dispensaries in rural areas in different parts of the country. Some of the Charitable Dispensaries rendering Allopathic treatment where the others are rendering Homoeopathic treatment. Usually a qualified doctor gives prescription to the patients once or twice in a week without any fee. The patients are also given necessary medicine free of cost. In the year 2008 and 2007 a total number of 1,65,000 and 25,200 patients received treatment facilities through the Charitable Dispensaries respectively. Islami Bank Homeopathy Clinic To render homeopathy treatment facilities to the common people, especially to the poor section of the society Islami Bank Foundation has, therefore, established a Homeopathy Clinic with qualified Doctors at Mirpur, Dhaka. Islami Bank Foundation has planned to establish more Homeopathy Clinics in different parts of the country gradually. A total number of 4,551 and 4,840 patients received treatment facilities from Islami Bank Homeopathy Clinic in the year 2008 and 2007 respectively. Health Education *Islami Bank Medical College The activities of Islami Bank Medical College, Rajshahi is going on satisfactorily. The classes of the students from 1st batch, 2nd batch, 3rd batch, 4th batch, 5th batch and 6th

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batch are running in full swing. The construction work of the south block of the hospital building at Naodapara, the own site of the college has been completed and construction of the Academy building are also going on. A total of 317 and 266 students were studying in the college in the year 2008 and 2007 respectively. *Islami Bank Medical College Nursing Training Institute In Hospitals/clinics, the role of nurses is very important. There is a great dearth of qualified nurses in our country and, therefore, quality treatment services is being hampered to a great extent, Keeping in view the above situation, Islami Bank Foundation has established a Nursing Training Institute in Rajshahi to create the opportunity of respectable employment of the youths as well as to meet the increasing demand of the qualified nurses. A total number of 40 students were studying in the year 2008 and 2007. *Islami Bank Health Technology Institute Proper diagnosis of diseases is very important to render accurate treatment facilities to the patients. In our country there are a good number of hospitals/clinics and diagnostic Centres but most of them do not have necessary qualified technical manpower to do pathological test, radiological test etc. and for this reason the patients have to suffer frequently due to wrong diagnosis of diseases. Islami Bank Foundation has therefore established a Health Technology Institute in Rajshahi in the name and style of "Islami Bank Institute of Health Technology". In the meantime Govt. has given approval to introduce 4 year diploma courses in the Institute. In the institute the following courses would be introduced to meet the increasing demand of the qualified Medical Technologist (a) Pharmacy (b) Dentistry (c) Radiology & Imaging and (d) Pathology.

*Midwifery Training Program In the rural areas the traditional birth attendants conduct the normal delivery. They do not have any formal training in this regard and, therefore, a good number of mothers and babies die during the delivery. Many of them, though do not die, suffer even the whole

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life due to wrong handling of the traditional birth attendants. Considering the above situation Islami Bank Foundation has taken 'Midwifery Training Program' with the help of Islami Bank Hospitals and Islami Bank Community Hospitals. In the year 2008 and 2007 a total number of 300 & 360 traditional birth attendants received Midwifery training respectively. *Technical Education Islami Bank Institute of Technology Five units of Islami Bank Institute of Technology (IBIT) two in Dhaka, one in Bogra, one in Sylhet and another in Chittagong have been working satisfactorily to train up the unemployed youths to make them self-reliant and for technological advancement of the country. In the meantime, IBIT Dhaka (2 units), Chittagong, Sylhet and Bogra have got the affiliation of Bangladesh Technical Education Board. In the year 2008 and 2007 a total number of 1,254 and 849 students were studying in the IBITs respectively. *General Education Islami Bank International School and College As Dhaka, the capital of Bangladesh, is turning to be a Mega City, a large number of English Medium Schools are creeping up which follows curriculum not conforming fully to the need of the country. As an attempt to combine modern education with moral values for a total development of the children, Islami Bank Foundation has established an English Medium International School and College at 147, Green Road, Dhaka. In the year 2008 and 2007 a total number of 348 and 281 students were studying in the school respectively.

*Islami Bank Model School and College Islami Bank Model School and College is one of the important projects of Islami Bank Foundation. To render modern education with moral values the activities of the school

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has been started at Mirpur, Dhaka. A qualified and experienced Head Master has been appointed. In the year 2008 a total number of 348 students were studying in the school. *Islami Bank Mohila Madrasha Islami Bank Mohila Madrasha is another important projects of Islami Bank Foundation. To render religious education with moral values combining with essential education for the World the activities of the Madrasha has been started at Mirpur, Dhaka. A qualified and experienced Vice Principal has been appointed. In the year 2008, a total number of 66 students were studying in the madrasha. *Scholarship Program Scholarship program is one of the important programs of Islami Bank Foundation. Under this program scholarships are being given to the students of Colleges, Madrashas and Universities at home and abroad. Moreover, Scholarship is being offered to the researchers to obtain M.Phil and Ph.D degrees. In the year 2008 and 2007 a total of 433 and 580 persons received scholarship from the Foundation respectively. *Model Forquania Maktab Model Forquania Maktab project is one of the important projects of Islami Bank Foundation. In the rural areas the Maktabs are being managed where the children are learning the Quran as well as English and Bengali alphabets and elementary knowledge of English and Mathematics which are helping them a lot to read in the School and Madrasha. In the year 2008 and 2007, 26,600 and 22,200 students were studying in the Forquania Maktabs respectively.

*Other Programs *Bangladesh Sangskritic Kendra

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To save our youth force from derailment, it is essential to uphold and promote the culture which is of our own. Keeping in view the above, Islami Bank Foundation has established Bangladesh Sangskritic Kendra in Dhaka and Rajshahi. *Islami Bank Women Rehabilitation Centre As part of service to the Distressed Humanity Islami Bank Foundation has established a Centre for Shelter, Training and Rehabilitation of the unfortunate, distressed, shelterless widows and divorced women in the name of "Islami Bank Women Rehabilitation Centre" at Mirpur, Dhaka. A total number of 28 and 57 distressed women received training facilities and have been rehabilitated in the year 2008 and 2007 respectively. *Islami Bank Service Centre Seven Islami Bank Service Centres at (i) Noakhali, (ii) Manikganj, (iii) Feni, (iv) Chandpur, (v) Saint Martin, (vi) Satkhira and (vii) Chapainawabgonj were established to enhance the socio-economic condition of the poor and needy people of the coastal and river belt area in addition to providing safe shelter during natural calamities. A total number of 348 and 350 Group members received investment facilities from the Service Centres during the year 2008 and 2007 respectively. *Monoram-Islami Bank Crafts and Fashions Monoram - Islami Bank Crafts and Fashions has been functioning at the heart of Dhaka City and playing a significant role for uplifting the condition of the poor and distressed women through channeling sales opportunity of their manufactured products. It may be mentioned here that a total number of 3,500 employees are serving in the Islami Bank Foundation Head Office and different project offices. Thus, the Foundation, through its multifarious welfare programmes, is ceaselessly working to serve the distressed humanity and change the socio-economic condition of the under privileged and neglected section of the society. *Staff Welfare Activities The Bank believes in supporting its employees and offering incentives and motivation for their continued welfare and prosperity. With a view to supporting these lofty objectives,

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the bank manages a contributory Provident Fund, Superannuation Fund, Gratuity Fund and a Benevolent Fund for the employees of the Bank. These funds are managed by Separate Board of Trustees. The Superannuation Fund has been established for financial help to the members of the fund and their families in case of death, physical disability of the employee while in service or in any incidence of nature acceptable to the Board of Trustees and retirement from the service.

EXIM Bank Ltd.

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At least 2% of our annual profit of every year is put aside for the foundation
to conduct Corporate Social Responsibilities (CSR) activities. The mainstream CSR activities that are carried out through this foundation are : *Healthcare service. *Scholarship program for brilliant poor student. *Education Promotion Scheme (Interest free loan). *Helping people affected by natural calamities. *Helping people in slum areas. *Donation to educational institutions to setup computer lab. *Beautification of Dhaka City Healthcare service A 5 storied building having 10,000 sft floor space at 840 Kazi Para, Rokeya Sarani,Mirpur, Dhaka-1216 has been hired to set up Exim Bank Hospital. The decoration of this hospital is going on in full swing. A doctor has been recruited who is working as a resident director of the hospital. Other doctors and hospital staffs have been in the process of selection through recruitment notice already published in the national dailies. They will be appointed as soon as the decoration of the hospital is complete. Scholarship program for brilliant poor student This is a stipend package for poor and meritorious students that take care of the beneficiaries throughout their student life. EXIM Bank Scholarship Program, launched in 2006 with 61 poor and meritorious students selected from different reputed educational institutions of Dhaka City including Govt. Laboratory High School, Viqarunnissa Noon School and College, Dhaka University, BUET, Dhaka Medical College, etc. enrolled as many as 1000 students from around 150 reputed educational institutions across the country by 31 December 2008. They are enrolled in the this program to be taken care of for their whole educational life subject to their fulfillment of the eligibility criteria that include satisfactory academic results, non-involvement in student politics, financial insolvency etc. So far Tk. 19.3 million has been disbursed as scholarship under this program.

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Education Promotion Scheme (Interest free loan) Under Education Promotion Scheme, quard or interest-free loan is provided for poor and meritorious students to help them bear monthly educational expenditure including academic expenses, food, accommodation, etc. The quard is disbursed to the selected students in monthly installments till their accomplishing the master degree. Under this program the students are required to repay the amount (only the principal amount) in long-term monthly installments after they have joined a confirmed job accomplishing their education properly. By 31 December 2008, to take care of around 138 poor and meritorious students from a number of reputed educational institutions like Dhaka University, Chittagong University, Dhaka Medical College, BUET, Bangladesh Agricultural University, Shahjalal University of Science and Technology etc. Helping people affected by natural calamities Another vital area we are dealing with as part of our CSR activities is helping people survive natural calamities. Under this welfare program EXIM Bank provides relief in cash and kind for flood, fire or cyclone victims and cold-stricken people. The aim of these CSR activities is to help the target group overcome their provisional handicap and contribute to the socio-economic growth as soon as possible. Helping people in slum areas Besides natural calamities, fire breaks out sometimes in slum areas that guts the shanties and renders the affected people totally helpless. In that situation, we help the victims fight against the hard days and return to normal life.

Donation to educational institutions to setup computer lab

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We have donated to Dhaka University and Chittagong University to set up two computer labs that help the students of those universities acquire ICT knowledge. This will certainly help the students to be ready to take the challenges of this information society. Beautification of Dhaka City In response to the call of the Dhaka City Corporation, EXIM Bank has been sharing a good portion of the mammoth task of beautifying the capital since 2005. To make the capital a modern city enriched with adequate urban amenities, EXIM Bank always joins hands with the government.

Dhaka Bank Ltd.
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It is in the corporate culture of the Dhaka Bank to act responsibly in every sphere of social activity. Living up to our corporate social responsibility is an integral part of our corporate culture and ethics. We are delivering innovative solutions to our valued customers and in the same manner we are also helping different areas of social activity through our corporate social responsibility activities. Dhaka Bank is committed to corporate social responsibilities towards the community.. Last year, the Bank has taken numerous initiatives towards social welfare and community improvements, which includes donation to Kidney Foundation Hospital to install state of the art Dialysis Unit to mitigate the sufferings of the poor women and children of the country. The Bank provided to Center for Women & Child Health (CWCH) and donated to BIRDEM as a gesture of humanitarian consideration for the dialysis treatment of the financially needy kidney patients. In 2008 Dhaka Bank Limited associated with Bangladesh Hockey Federation as Partners in Progress for development of Hockey and donated to Bangladesh Hockey Federation. The Bank also sponsored *Dhaka Bank Victory Day Hockey Tournament *Dhaka Bank Shaheed Dibash Hockey Tournament *Dhaka Bank Independence Day Hockey Tornament *1st Dhaka Bank Cup Golf Tournament *Dhaka Bank 22nd Bangladesh International Junior Tennis Championships *National Hockey Team in Asia Cup *National Hockey Team in Nehru Cup *Dhaka Bank Premier Cricket League at Rangpur In 2008 Dhaka Bank was award l Certificate of Merit from ICAB l Best Bank Award l CSR Award

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BRAC Bank Ltd.
*BRAC Bank donates to ICDDR,B’s Dhaka Hospital

*Under its Corporate Social Responsibility (CSR) programme, BRAC Bank donated to ICDDR,B for completing the extension of the BRAC Bank Short Stay Ward and Emergency Triage Area at its Dhaka Hospital. Mr. Muhammad A. (Rumee) Ali, Chairman of BRAC Bank Limited handed over the cheque to Dr. Alejandro Cravioto, Executive Director of ICDDR,B at a special ceremony held at ICDDR,B recently. Mr. A.E.A Muhaimen, Managing Director and CEO, Mr. Syed Mahbubur Rahman, Deputy Manging Director and other senior officials of BRAC Bank Limited and ICDDR,B were also present at the ceremony. The CSR partnership between BRAC Bank and ICDDR,B goes back to 2007 when BRAC Bank initially contributed to develop the BRAC Bank Short Stay Ward. With the support of BRAC Bank the Short Stay Ward, including the Emergency Triage area, will be fully renovated with air conditioning, sterile washing areas, and secure walled surroundings ensuring a safe and protected environment for patient care. ICDDR,B's Dhaka and Matlab hospitals provide free treatment to 1,20,000 patients each year with a commitment not to turn away anyone arriving for treatment. ICDDR,B and BRAC Bank shall continue to nurture the ongoing partnership which is not only sustainable but also ensures a clear footing for ICDDR,B in BRAC Bank’s corporate social responsibility activities. BRAC Bank has in turn expressed a keen interest to enter into further partnerships of support with ICDDR,B to better address the health needs of people in Bangladesh. *BRAC Bank Supports DMP to Build “One Stop Service Center” at DC Police Office, Tejgaon in Dhaka An “One Stop Service Center” at DC, DMP Office, Tejgaon in Dhaka has been inaugurated recently. BRAC Bank has supported DMP in building this service center. Dhaka Metropolitan Police (DMP) through this center will cater to the needs of mass people of the society. Mr. Shahidul Hoque, Dhaka Metropolitan Police Commissioner & Mr. Syed Mahbubur Rahman, Deputy Managing Director, BRAC Bank

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Limited inaugurated the Service Centre. Mr. Md. Mahabubor Rahman, Former Police Commissioner, Dhaka Metropolitan Police, Mr. Abedur Rahman Sikder, Actin Head of Corporate Affairs of BRAC Bank; and other senior officials of both organizations were also present in the ceremony. *BRAC Bank & Persona Organizes a Workshop on Beauty Solutions

BRAC Bank Limited & Persona Institute of Beauty and Lifestyle has jointly organized a daylong workshop on “Beauty Solutions & Marketing Skills Development for Beauty Parlors” in Dhaka. Mr. Syed Mahbubur Rahman, Deputy Managing Director, BRAC Bank Limited inaugurated the workshop. Out of the two sessions, first session was conducted by Persona Institute of Beauty and Lifestyle where the objective was to train the valued clients of BRAC Bank (who run parlors) with practical demonstration of advance methods of beautification & skin care with special focus on bridal makeover, skin care & hair treatment. Marketing & Customer Service strategy for running a Parlor was also discussed. Ms. Kaniz Almas Khan, Managing Director, Persona Hair and Beauty Limited & Beautician conducted a class on Bridal Makeover. Practical demonstration of maintaining financial statement for Parlors was another session of the workshop, which was conducted by Ms. Parveen S. Huda, Managing Director, Renaissance Consultants Limited. Ms. Tahniyat Ahmed Karim, Head of Human Resources; Mr. Syed Faridul Islam, Head of SME Banking of BRAC Bank Limited were present and delivered their speech as special guests. The daylong workshop closed in a certificate distribution ceremony among the clients participated in the workshop. *BRAC Bank Sponsors a Workshop for Professional Women

BRAC Bank Limited has sponsored a workshop on ‘Emotional Intelligence for Professional Women’ at BRAC Centre Inn on the eve of International Women’s Day. The objective of the workshop was to enhance professional women to be more confident in dealing with professional environment, being aware about their rights at the workplace and learning to deal with the glass ceiling impact. Ms. Tahniyat Ahmed Karim, Head of Human Resources, BRAC Bank Limited closed the session with vote of thanks to all the

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participants. Ms. Wahida Anjoom, Portfolio Manager, Women Entrepreneur Cell (WEC), SME Banking Division, BRAC Bank Limited was also present and delivered the welcome speech. Ms. Parveen Sultana Huda, Convener of Professional & Occupational Women’s Association for Empowerment & Rights (POWAER) conducted the workshop session. Ms. Samia Ahmed, Manager & Theme Leader-SVAW, Women Rights & Gender Equality, Actionaid International represented the NGO sector; Ms. Bitopi Das, CEO, Dream Merchants represented the corporate sector and JCI Bangladesh and Ms. Huma Khan, Counselor, Eurokids School represented the education sector. The participants, including women entrepreneurs and professionals also shared their experiences at the end of the session. The workshop was organized by “POWAER” which was also supported by BDJOBS.COM and JCI Bangladesh, Dhaka Central.

*BRAC Bank Distributes Prizes of Wall Magazine Competition to commemorate the event of International Women’s Day. BRAC Bank Limited has distributed the prizes of Wall Magazine competition to commemorate the event of International Women's Day recently. Mr. Muhammad A. (Rumee) Ali, Chairman, BRAC Bank Limited and Ms. Tamara Hasan Abed, Director, BRAC Bank Limited selected the winners. Mr. Syed Mahbubur Rahman, Acting Managing Director & CEO, BRAC Bank Limited has handed over the First Prize to Credit Card Collection Team for their innovative way of expressing the theme of International Women’s Day; Second Prize to Bashundhara Branch for showing different roles of women and designing it with creativity and Third Prize to Operational Risk Management Department for information regarding achievements by women in such a creative manner. Ms. Tahniyat Ahmed Karim, Head of Human Resources, BRAC Bank moderated the ceremony. *BRAC Bank signs MoU with Apollo Hospitals Dhaka

BRAC Bank Limited has signed a Memorandum of Understanding (MoU) with Apollo Hospitals Dhaka recently. Under this agreement, Apollo Hospitals will provide priority corporate benefits and medical services for the staffs and their family members of BRAC Bank Limited. Mr. Khwaja Shahriar, Head of Corporate Banking, BRAC Bank Limited

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and Mr. Shahjahan Majumder, Acting CEO, Apollo Hospitals Dhaka signed the MoU on behalf of their respective organizations. Other senior officials of both the organizations were also present in the ceremony. *BRAC Bank signs MoU with Square Hospitals BRAC Bank Limited has signed a Memorandum of Understanding (MoU) with Square Hospitals Limited recently. Under this agreement, Square Hospitals will provide special discounted facilities on various diagnostic and hospital services for the staffs and their family members of BRAC Bank Limited.

*BRAC Bank sings an MoU with LABAID BRAC Bank Limited has signed a Memorandum of Understanding (MoU) with LABAID recently. Under this agreement, LABAID will provide special discounted facilities on various diagnostic and hospital services for the staffs and their family members of BRAC Bank Limited. *Contribution to the prime minister’s relief fund *Donation made to save a child’s life *Sponsorship of Viqarunnisa Noon Debating Club *Sponsored women Entrepreneur Association of Bangladesh (WEAB) *Sponsored Women Entrepreneur Association of Bangladesh *Sponsoring DMP for Dhaka Traffic Control and Management *Sponsored BRAC Bank Club Cup Hockey *Sponsored Inter-School Soccer Tournament BRAC Bank supported Bangladesh Cricket Board (BCB) to stage the BRAC Bank series 2008: BD v NZ. This initiative was undertaken to motivate the players of Bangladesh National Cricket Team

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United Commercial Bank Ltd.
*4th UCB Golf-2008 in Bhatiary, Chittagong. UCB Golf Tournament-2008 sponsored by United Commercial Bank Ltd. was held on February 15, 2008 at Bhatiarv Golf & Country Club, Chittagong. Maj. Gen. Md. Abdul Mubeen, ndc, psc and GOC, 24 Infantry Division and Area Commander Chittagong Area & Senior Vice President of BGCC attended the occasion as Chief Guest and distributed prizes amongst the participants at a function arranged at Bhatiarv Golf & Country Club in the after noon. Earlier the tournament was opened by the Chief Guest in the morning.Mr. Md. Jahangir Alam Khan, Chairman, Mr. Hamidul Huq, Managing Director delivered speeches while Hajee M. A. Kalam, E.C. Chairman, Mr. M. A. Sabur, Hajee Yunus Ahmed, Directors, Mr. Shah Alam Sarwar, Addl. Managing Director, Mr. A. K. M. Kamal Uddin & Mr. M. S. Kamaluddin, Deputy Managing Directors of the Bank along with other Executives and dignitaries of Dhaka and Chittagong attended the function followed by a Luncheon arranged by UCBL. *UCB to sponsor Tigers for ICC World T20 United Commercial Bank Limited (UCB) signed a deal with Bangladesh Cricket Board (BCB) to become the official sponsor of the national team for the ICC World Twenty20s to be held in England next month. The Bank will provide the BCB money for sponsorship rights and another if Bangladesh progress to the Super Eights. UCB has exclusive rights to use the tag line ‘United Commercial Bank Official Sponsor of Bangladesh National Cricket Team for ICC World Twenty20’ in all its promotional activities during the tenure of the agreement. M Shahjahan Bhuiyan, the Managing Director of UCB and Syed Farhad Ahmed, Vice-Chairman of BCB’s commercial committee signed agreement on behalf of their respective organizations. Mahbub Anam, the Senior Vice-President of the BCB, Mirza Mahmmood Rafiqur Rahman SEVP, Company. Secretary and Head of Corporate Affairs Division were also present on the occasion. The agreement signing ceremony was held at the Sher-e-Bangla National Stadium in Mirpur where the match and practice jerseys were also unveiled.

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*MOU signing with Hotel Washington, Dhaka United Commercial Bank Ltd. signed an MOU with Hotel Washington, Dhaka with a view to provide special service to its Credit Card holders. Under this agreement Hotel Washington will provide special discount on different services provided by them. This is an exclusive opportunity for the UCB Credit Card holders. Mr. S. H. Shohag, FVP & Head of Cards UCB & Mr. Sayeed Hossain, GM, Hotel Washington signed the MOU on behalf of their Organizations. Mr. Shafiqul Alam, Deputy Managing Director, UCB was also present in the occasion. Among others Mr. Javed Iqbal, Vice President, UCB; Mr. Abu Zafer Mohammad Sharifuddin, Vice President UCB; Mr. Shafiul Islam Sumon, Officer, UCB & Mr. Nafis Waiz, Executive, Corporate Sales, UCB were also present in the Company. *UCB donates on the Govt. releif fund to Chittagong Hajee Yunus Ahmed, Chairman, United Commercial Bank Ltd. handed over a Payment Order of on behalf of the Bank recetly to the Communication Advisor Major General (Retd) M. A. Matin for victims of devastating landslides following torrential rain in Chittagong city and its adjacent areas. Hajee M. A. Kalam, Director, Mr. Hamidul Huq, Managing Director & Executives of the Bank were present on the occasion.

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Social Investment Bank Ltd.
*SIBL donates to Families of Martyred Army Officials *SIBL Runs free medical treatment *Social Investment Bank Limited (SIBL) and East West Medical College, Dhaka are jointly running a free medical treatment program for the poor people from August 10 to August 20, 2008. East West Medical College Chairman Mr. Dr Md Moazzem Hossain inaugurated the treatment functions in a brief program where poor people are given free treatment for Cataract operations, Hernia operations, Tonsillitis, Gall Bladder Stone operations, and Caesarian operations. SIBL officials, East West Medical College physicians and local elites were present in the program August 10, 2008.

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Premier Bank Ltd.
*Premier Bank Donates to the Relief Fund of the Prime Minister The Premier Bank Ltd., one of the best of Third Generation Banks in Bangladesh, has come forward. Recently a cheque of was handed over to Sheikh Hasina, Prime Minister of the Peoples’ Republic of Bangladesh by Dr. H. B. M. Iqbal, Chairman, Board of Directors of The Premier Bank Limited on behalf of the Bank to the Relief Fund of the Prime Minister to help the distressed people who were affected by Cyclone Ayla. This contribution was made as a part of social obligation of the Bank which was delivered at the Prime Minister’s Official Residence “Jamuna”. Other Members of Bankers’ Association of Bangladesh (BAB), an Organization of the Owners’ of Private Banks in Bangladesh were also present on the occasion. *Premier Bank sponsors to Khude Gan Raj Asha As a part of social and Cultural resposnibility Premier Bank Chairman Dr. H.B.M. Iqbal handed over a cheque to Asha, one of the top eleven participants of Khude Gan Raj of Channel-I. Among others Bank's Managing Director M Shah Alam Sarwar, Additional Managing Directors Abu Haniff Khan and Md. Mokhlesur Rahman, Head of FAD Md. Abdul Hai, Head of HRD Bishnu Pada Malaker, Company Secretary Syed Ahsan Habib, Head of PR Md. Mahbubur Rahman and high officials of the bank were also present on that occasion

*Premier Bank sponsors DMBA Pair of Bridge Tournament Managing Director of The Premier Bank Ltd. Abu Haniff Khan was present in the prize giving ceremony of “Premier Bank DMBA Pair of the Year’ 2006 for Q A Alim Memorial Cup” bridge tournament as Chief Guest. At this moment Mr. Khan delivered a speech before the guests. In the concluding session Mr. Khan gave away prizes among the winners together with the President of DMBA, Khondakar Mazharul Haque. It is worth mentioning that “Jamil Pair” was the champion of the bridge competition.

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*Donation to Birshrestha Motiur Rahman Foundation *Sponsoring 03 national events of Bangladesh Basketball Federation *Sponsoring National Vitamin A+ Campaign conducted by the Govt. of Bangladesh *Donation to Kendrio Khelaghar Asar *Sponsoring International Day against Drug Abuse and Illicit Trafficking *Sponsoring journalists of Daily New Nation and Daily Amardesh in connection with *Trade Fair of Bangladeshi products in Athens, Greece participated by Greek*Bangladeshi Commercial and Cultural Chamber. *Sponsoring Fisheries Development Campaign organized by Department of Fisheries, Bangladesh *Sponsoring Brest Feeding Weeks conducted by Bangladesh Breastfeeding Foundation *Sponsoring Bangladesh Sports Writers Association on the occasion of Annual Award Giving Ceremony of the organization *Sponsoring Bangladesh Physiotherapy Association on occasion of 3rd National Conference of the organization

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Mutual Trust Bank Ltd.
*Mutual Trust Bank Limited (MTB) Donates to Prime Ministers Relief and Welfare Fund for the Victims of Cyclone Aila. Mutual Trust Bank Limited (MTB) has donated to the Prime Ministers Relief and Welfare Fund for the victims of Cyclone Aila. Samson H. Chowdhury, Chairman and Anis A. Khan, Managing Director & CEO of Mutual Trust Bank Limited handed over the cheque to the Prime Minister Sheikh Hasina at a simple function held at the Prime MinistersOffice

*MTB also donated to Prime Ministers Relief and Welfare Fund earlier for the victims of the BDR mutiny of the country. *MTB donates 10,000 books on moral values to the school wing students of Viqarunnisa Noon School & College. Mutual Trust Bank Ltd donated 10,000 books on moral values titled `Ishoper Galpo- Mullobodher Prothom Path` to the school wing students of Viqarunnisa Noon School & College on April 9. The books were distributed among the students through a simple ceremony held at the auditorium of Viqarunnisa Noon School & College at 1/A New Bailey Road, Dhaka-1000. On this occasion a discussion meeting was held with Ms. Rokeya Akhter Begum, Principal of Viqarunnisa Noon School & College in the chair. Mr. Quamrul Islam Chowdhury, Deputy Managing Director of Mutual Trust Bank was present as chief guest while Mr. Md. Hashem Chowdhury, Senior Executive Vice President of Mutual Trust Bank attended the function as special guest. In his speech, Mr. Quamrul Islam Chowdhury underscored the necessity of educating the children on moral values so that they can lead the nation with high level of ethical standard in the coming days. He also explained that corruption and terrorism are the main barriers to the development of our nation. In this respect stories of the book can play a vital role to educate the future generations and move the nation forward, he expected. Ms. Rokeya Akhter Begum said in her speech that in this ruined age of moral values, new generations must be inspired with values and in this respect books donated by MTB will help build up a society free from corruption, terrorism and all ambiguity.

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*Mutual Trust Bank Ltd(MTB) in cooperation with Dhaka University Alumni Association, (DUAA) handed over financial grants worth of BDT 2500 each among 67 meritorious and needy students of all institutes of Dhaka University, TSC and Dhaka Medical College at Zia Auditorium of National Museum recently. As a part of corporate social responsibility and to promote, encourage higher education and cultural activities among meritorious and needy students MTB provided financial grants in the form of reward to the meritorious and needy students as honor and recognition of their academic achievements and cultural performance under a joint campaign with DUAA. The scholarship money was handed over through MTB gift cards.

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Mercantile Bank Ltd.
Mercantile Bank Limited (MBL) is fully committed to conduct its business activities in an economically, environmentally and socially sustainable manner. The Bank always fosters the motive in mind to build a ever-lasting warm relationship with the customers, employees, capital providers, community people, regulatory bodies and other stakeholders. Keeping this motive in mind, MBL always cares all of its stakeholders and the community people since its inception. For Community As we all know that banks act as a 'Trustee' for the society. Therefore, MBL behaves in a responsible and ethical manner with the community people. The Bank always contributes towards changing the quality of life of the people as the Bank wishes to see them leading their life in a standard way. The Bank serves by adhering closely the national policies and thereby contributing towards the progress of the nation. In maintaining its responsibilities to the society where it operates its business activities, MBL focuses in the areas of employment, Employment MBL plays an important role in creating job opportunities for the people. Each year, the Bank creates employment opportunities for fresh graduates as well as experienced officials. In 2008, a total of 169 fresh graduates have joined with MBL family. The new recruits have joined as Probationary Officers (82) and Assistant Officer (87). Besides, experienced bankers are also being appointed in the Bank as and when required. At the end of 2008, the Bank has 1,115 officials in its payroll. Moreover, Bank's financing to the SME sector will indeed promote employment generation. Education MBL desires for an educated nation. The Bank through its Foundation, patronizes the education sector of the country. The Bank provides scholarship to the needy and brilliant students of different educational institutions. Best two MBM graduates of BIBM gets education, professional development and contribution to the underprivileged people.

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financial awards from the Bank. In the year under review, the Bank has provided scholarship. The children of the employees of the Bank also get scholarship for brilliant results. MBL has also donated to Bangla Academy for research in Bengali Literature with a view to aid academic research, which would eventually uphold Bangladeshi culture across the Globe. Professional Development Professional education has been encouraged in MBL. The Bank believes that to be more professional one should gather professional knowledge. The Bank is continuing its supports to the professional bodies as it continued earlier. The Bank encourages it employees to complete Banking Diploma Support to Destitute MBL always shares the well and woe of the distressed people. Mercantile Bank Foundation has been set up to give financial support to the underprivileged communities. Through this Foundation, the Bank concentrates on addressing the needs of physically disable people such as blind, acid victims etc. The people of our country are used to be the victims of natural calamities every now and then. The Bank strives to assist the victims of natural disaster by providing financial help in rehabilitation and rescue purpose. For Customers MBL provides the most efficient and need-based services in every aspect of its business by being more innovative and professional. The needs and expectations of the customers drive us to the development of new banking products and services. MBL uses trained personnel and state-of-art technology for delivering prompt services to the customers. A number of banking products has been launched for the people who have traditionally been excluded from the banking services. 'Women Entrepreneurs Development Scheme' has been introduced in the Bank for the women who are experienced but dearth of capital is hindering their initiatives to start business. An agreement with Women Entrepreneurs' Association, Bangladesh (WEA) has been signed to encourage women entrepreneurs to come forward in the business. We have also introduced SME services for the marginal people of our country.

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For Employees MBL, which has 1,115 employees provides due importance for promoting the well-being of its employees by offering attractive remuneration and other fringe benefits. Employees' remuneration and benefits packages are monitored and regularly reviewed to ensure a competitive package in the industry. Incentive bonus from yearly profit is also rewarded to the employees on performance basis. Employees are awarded all sorts of supports to pursue professional educations. The Bank provides its employees personal loan facilities such as car loan, furniture loan and other loan to make their life easier and comfortable. Growth and progression opportunities for employees are available in the Bank. With competitive remuneration packages and employees' well-being is looked after through attractive benefits such as medical coverage, loans at lower rate of interest for housing and car as well as other forms of financial assistance. MBL seeks to provide a standard quality of life to its employees. For Equity Holders MBL is committed to its capital providers to deliver fair returns on their investment. Equity holders are always concerned to see their institution progressive. The Bank runs its business activities keeping in mind as its shareholders wish to see it. MBL is consistently delivering a superior return to its shareholders and investors. For Environment MBL is concerned with conservation and preservation of the environment. The Bank is mindful of its responsibilities to the future generations by playing its part in promoting environmental awareness and in the conservation of the environment. The Bank takes environmental issue very cautiously while financing new projects. It finances only in those projects, which are environment-friendly. Early detection of environmental risks is an integral part of credit appraisal system of the Bank. Ecological damage will sooner or later harm not only the society but also the Bank in the form of loan losses or image problems. In this regard, the Bank sent two officials to the Hague, Netherlands for training on 'Environment and Social Management Course for Financial Institutions' conducted by FMO, Netherlands. The Bank creates awareness among people of the community about the effects of environmental pollution and its consequences.

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For Cultural Activities MBL fosters the culture of various communities. The Bank is relentlessly supporting traditional games and sports by taking some non-profit initiatives. As a recognized benefactor of culture, the Bank provides funding for the publication of art books that familiarize the Bank. A variety of cultural institutions have been benefited by the initiatives of the Bank. The Bank also supports the writers, musicians and other performers in their inventive activities. The Bank patronizes different cultural activities. A number of cultural programs encouraging different communities have been sponsored by the Bank. The Bank has sponsored National Chess Championship, Tennis competition and Swimming competition in different times.. Mercantile Bank Foundation Mercantile Bank Foundation has been established to act as a helping hand to the community people and Bank's commitment towards CSR. The Foundation always plays its role by extending charitable and beneficial social services. The Foundation has been promoting a dialogue between the Bank and its community for over nine years. Through its programs, the Foundation strives to preserve and promote cultural heritage and support artistic expression. It also provides funding for state-of-art research, as well as for innovative projects in the areas of education, social insertion and disability. Objectives of Mercantile Bank Foundation Mercantile Bank Foundation has been formed with the aim of achieving some objectives, which has been stated below: 1. To take possible initiatives in increasing social well-being and alleviating poverty from the country. 2. To support the education by establishing new educational institutions, providing stipends/ scholarship to the poor and brilliant students. 3. To provide awards to the Scholars in eight significant arenas for their outstanding contribution. These arenas are: Bengali Language and Literature, Education and Culture Research on Liberation War, Economy and Economic Research, Commerce and Industry, Medicine, Science and Technology, Journalism and Sports

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4. To assist research activities on Bengali Literature through Bangla Academy. 5. To support the writers and publishers through purchasing their books and distributing these to different educational institutions on the occasion of national and historical days. 6. To assist the unemployed young to make them self-sufficient. 7. To assist the rootless and distressed orphans through taking appropriate steps for their mental perfection and self-support. 8. To support in establishing hospitals, clinics, etc. for the improvement of the health sector, to donate one time financial endowment to the poor artiste, literature-patron and fatal disease-affected poor patients, to support the poor father for arranging his daughter's marriage, to help poor but bright students.

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Dutch-Bangla Bank Ltd.
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 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. Your 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). It is important that citizens of a society enjoy the full benefits that society offers. A society, in turn, flourishes when its citizen can contribute their fullest potential. The wellbeing of individuals is jeopardize when normal developmental processes are interrupted by personal crisis, poverty, unemployment, poor health and inadequate education. DutchBangla Bank Limited (DBBL) is the first Bangladeshi-European joint venture bank in Bangladesh addresses social concerns that threaten the structure of society and redress social conditions that adversely affect the well-being of people and society. DBBL practice thus encompass the professional activities of helping individuals, families, groups, organizations, and communities to enhance or restore their capacity for optimal social functioning and of .creating societal conditions favorable to this goal. DutchBangla Bank Foundation (DBBF) was established on 3rd June, 2001 to perform humanitarian works like rehabilitation of the destitute and neglected portion of the society especially grassroots level poor in right track. Aim and objectives of DBBF are as bellow

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Health DBBL distributes the Treatment Cards to 50 HIV/AIDS positive patients DBBL donates a DNA detection machine to Bangabandhu Sheikh Mujib Medical Unit DBBL has donated to Diabetic Association of Bangladesh DBBL stands by disabled and underprivileged children DBBL has donated an Endoscope machine to National Medical College & Hospital DBBL Smile-Brighter program starts in Dhaka City DBBL provides medical supports to HIV/AIDS patients DBBL has organized a 4 day-long plastic surgery operation in Faridpur

Education DBBL awards Fellowships to pursue M. Phil, Doctoral & Post Doctoral Degree Dutch-Bangla Bank donates to Dhaka University DBBL has awarded scholarship to meritorious including 10 physical disabled students DBBL has awarded scholarship to 200 meritorious and needy students DBBL donates books for Bangabandhu Sheikh Mujib Medical University DBBL has donated a Pick-up Van to Bangladesh Agricultural University DBBL has donated books for Dhaka University Central Library DBBL awards scholarships to the meritorious and needy Students International Mathematical Olympiad 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. DBBL and BASIS organized IT award-giving ceremony in this regard. This was a gala evening (with dinner and cultural program) attended by around 700 dignitaries including government high officials & policy makers, corporate heads,

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representatives from development agencies, IT policy makers, academicians and the IT industry members. In this regards DBBL's contribution in supporting this event. Disaster DBBL has donated for the victims of devastating landslides in Chittagong DBBL donates 130 bundles of GCI sheets to Noakhali district DBBL donates 700 bundles of high grade GCI sheets to Gaibandha and Rangpur districts DBBL donates 700 bundles of high grade GCI sheets to Gaibandha and Rangpur districts

Donation Oprotiroddhaya Bangladesh – a symbol of sacrifice for Great Liberation War has been unveiled DBBL donated a roundtrip air ticket to a physically handicapped employee of BRAC DBBL has donated two modern ambulances to Anjuman Mufidul Islam

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AB Bank Ltd.
*AB participats in the Bank and Non Bank Financial Institutions Fair Dr. Hossain Zillur Rahman, Honorable Advisor, Ministry of Commerce and Education and Dr. Salehuddin Ahmed, Governor, Bangladesh Bank pay a visit to AB Bank stall on the inaugural day at the three-day Bank and Non Bank Financial Institutions Fair 2008 held at Dhaka Sheraton *Niaz Habib hands away the Seraj Memorial Cricket Tournament Mr. Niaz Habib, Deputy Managing Director of AB bank Limited, hands away the Seraj Memorial Cricket Tournament 2008 trophy to the captain of the winning team AKM Shamsuzzoha Eleven at Osmani Stadium in Narayangany *Agreement signing between AB and Bangladesh Table Tennis Federation AB Bank Limited signs an agreement with Bangladesh Table Tennis Federation for arranging Age Group National Table Tennis Training Camps to improve the technique & skill of Table Tennis players of the country and for scouting new talents. The sponsor partner AB Bank Limited will provide clothing and other sports gears for the event. BTTF will also arrange display of AB Bank's Logo on the Clothing of National Table Tennis Team and top 4 teams of each of the National Ranking Teams for Men, Women, Boys and Girls of Bangladesh.At the signing ceremony on 27th April’08, Mr. Kaiser A Chowdhury, President & Managing Director of AB Bank Limited signed the agreement with Mr. Md. Abu Solaiman Chowdhury, President of Bangladesh Table Tennis Federation, in the presence of other officials of both the organizations. A press conference was organized at a city hotel to brief about the preparation for the upcoming eve

*AB sponsor of women cricket team for Asia Cup

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Bangladesh Women's National Cricket team for Asian Cup gets AB Bank sponsorship. The first Women's Asia Cup beginning Colombo on first of May also involves India, Sri Lanka and Pakistan. Under the sponsorship the women tigers will wear jersey featuring AB Bank corporate logo. The bank will provide the team with cricketing gears. At a press conference on Thursday the President and Managing Director of AB Bank said that it was a matter great pride that women are taking up cricket seriously. We are very to support the cause of women sport in Bangladesh. *AB Bank wins Century ERA, Award in Geneva AB Bank has been awarded this year's prestigious Century ERA Award at the 10th BID Quality Convention in Geneva. Companies of 43 countries from America, Europe, Asia and Africa attended the Convention. President and Managing Director of AB Bank Kaiser A. Chowdhury received the award from the Executive President of Business Initiative Directions (BID) Jose E. Prieto on March 10, 2008 at the Intercontinental Geneva Convention Hall. AB Bank received the award in the Gold Category in recognition of its 'commitment to quality, leadership, technology and innovation.' Among the outstanding companies including AB Bank at this year's convention were: Emak (Egypt), Golden Meditech Company (China), Jordan Securities Commission (Jordan), Kreka (Greece), SVG Exports (India), Jack Sound Systems (Thailand), International joint Stock Aviation Company 'Urga' (Ukraine), The Prosperity Trading & Contracting Est. (Bahrain), Alpine Bau-Zagreb (Croatia), Gabriel Kafati SA (Honduras), Matena Associates (Tanzania), Romaqua Group corporation (Romania), Dar Al Arkan Real Estate Development Co. Ltd. (Saudi Arabia), and Ecobank Senegal. Jose E. Prieto said at the award presentation ceremony, 'the awarded companies are symbols of commitment to leadership, technology and innovation which makes them models for other companies of their sectors.'

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Disbursement in case of CSR practices by Banks:

Name
Trust Bank Ltd. Southeast Bank Ltd. Pubali Bank Ltd. Eastern Bank Ltd. One Bank Ltd. NCC Bank Ltd. National Bank Ltd. Islami Bank Ltd.

Cost in Taka
Tk.59.08 million(Special Reserve fund) Tk.10 lac (Sponsored) Tk.14.82 million (Donation) 40 million (Donation) Not Disclosed 7.21 million (Donation) 18 million (Sports) Tk.11 million (Donation) 6.12 million (Donation) 5 million ( Benevolent Fund) 10 million (Superannuation Fund) 19.3 million (Scholarship Program)

EXIM Bank Ltd. Dhaka Bank Ltd. BRAC Bank Ltd. United commercial Bank Ltd. Social Investment bank Ltd. Premier Bank Ltd. 22.2 million (Donation) 9.86 million (Donation) Not Disclosed 2.5 million (Donation) 3.68 million (Donation and Relief Fund)

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Mutual Trust Bank Ltd. Mercantile Bank Ltd. Dutch-Bangla Bank Ltd. Bank Asia Ltd. AB Bank ltd. Total

Not Disclosed 12.17 million (Donation) 30 million (Donation) 7.21 million (Donation) Not Disclosed Tk.278.33 million (approx.)

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Chapter Six Conclusion and References

Conclusion:
CSR has meant different things to different people. Its real impact that connects back to the organization is not properly understood. This lack of understanding is an opportunity and threat at the same time. Apart from the benevolent social services by banking firms, the new concept of CSR is an emerging one. Banking businesses are driven by government, public and

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privates. Globalization has made CSR practice an imperative for Bangladesh business. CSR concentrates on benefits of all stakeholders rather than just the stockholders. Awareness and sense of necessity for practicing CSR is becoming more and more pronounced as the country has to adapt itself to the process of globalization Because of global competitiveness and demand, the CSR practices and standards are being implemented in Bangladesh. But we are yet go a long way. There are challenges to implement CSR properly in Bangladesh. Ultimately CSR practices should be better practiced in Bangladesh for better and enhanced performance. Lack of Good Governance, absence of strong labor unions or consumer rights groups, and inability of the business community to perceive CSR. Finally, CSR has strong societal ramifications in Bangladesh where at least forty percent of the people live in poverty. In order for CSR to gain momentum in Bangladesh, some of the following ideas may be incorporated by banks- CSR must be clearly defined and invite banks to build more innovative CSR practice, CSR education has to be ongoing to keep aware corporate Bangladesh, Banks may support in solving some persistent social issues that may ultimately buy-in the commitment to champion other partnership projects, Banks may introduce CSR newsletters to potential clients, slowly building their interests, Promote CSR through local trade bodies and people's organization.

References:
Websites www.mallenbaker.net www.reportbd.com

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www.bangladeshinfo.com www.csrquest.net en.wikipedia.org Book "Elementary Banking", by John Franklin Ebersole) Magazine Star Business Report

Annual Report 2008 and website of following banks: AB Bank Ltd Bank Asia Ltd. BRAC Bank Ltd Dhaka Bank Ltd. Dutch- Bangla Bank Ltd. Eastern Bank Limited Exim Bank Ltd. Islami Bank Bangladesh Ltd Mercantile Bank Limited Mutual Trust Bank Ltd. National Bank Ltd. NCC Bank Ltd. One Bank Ltd. Pubali Bank Limited Premier Bank Southeast Bank Ltd. Trust Bank Ltd. United Commercial Bank Ltd. Social Investment Bank Ltd.

Photo Gallery:

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