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CHAPTER

1.Executive Summary

Corporate social responsibility is a well known thing in the business world. In general, corporate social responsibility (CSR) also known as corporate responsibility, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate social performance we can also say that, CSR is about how companies manage the business processes to produce an overall positive impact on society. Bangladesh is developing country and the concepts of corporate social responsibility (CSR) and its practices in Bangladesh have a long history of philanthropic activities from time immemorial. Such philanthropic activities included donations to different charitable organizations, poor people and religious institutions. Until now, most businesses in Bangladesh are family owned and first generation ones. They are involved in community development work in the form of charity without having any definite policy regarding the expenses or any concrete motive regarding financial gains in many instances. CSR practices are gradually being integrated into international business practices and hence are becoming one of the determining factors for market access. They are also equally instrumental for better local acceptability on the part of businesses and CSR in Bangladesh would be useful, not only for improving corporate governance, labor rights, work place safety, fair treatment of workers, community development and environment management, but also for industrialization and ensuring global market access. CSR in Bangladesh can also contribute a lot to community development.

CHAPTER 2 INTRODUCTIONS
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2.1 PROBLEM STATEMENT OF THE RESEACH We know that image and profit are the two vital assets in business. Here we have tried to find whether there is any impact of corporate social responsibility on businesss image and profit or not. For evaluating corporate social responsibility we are trying to find out the necessity the scale and nature of the benefits of CSR for an organization can vary depending of the enterprise and are difficult to quantify, and how and in which way they are trying to help public social interests well as benefit for the business and human management development. 2.2 OBJECTIVE OF THE RESEACH
Broad Objective The purpose of the study is to contribute to greater understanding of practices the corporate social responsibility in services and manufacturing oriented organizations in Bangladesh. By maintaining CSR practices, how organizations can create their image and increase their profit in better ways to their competitors. Specific Objective

To understand the present situation in Corporate social responsibility practices in our country. To gather some experience about CSR practices and their impact on business. To recognize the opinion of general people about CSR practice. To identify the key features that may affect on the image and profit of business. To get idea, that what are the effective ways to maintain CSR according to the opinion of general people. To enrich our knowledge about CSR practices as well as what are the activities actually involved in CSR practices and finally implication of those activities?

2.3 BACKGROUND OF THE PROBLEM

Corporate social responsibility also known as corporate responsibility corporate citizenship ,responsible business, sustainable responsible business or corporate social performance is a form of self regulation integrated into a business model .CSR policy would function as a built in ,self regulating mechanism whereby business would monitor and ensure its adhere to law ethical standards ,international norms .consequently business would embrace responsibility for the impact of its activities on the environment ,consumers, employees, communities, stakeholders and all other members of the public sphere. It is our research how much CSR focused business would proactively promote the public interest by encouraging community growth and development and voluntarily eliminating practices that harm the public sphere. In the following there are some examples of CSR practices in our country.

CRR practice of Dutch Bangla Bank Ltd

Education Sector
1. Scholarship Program Dutch-Bangla Bank Limited (DBBL) has been awarding the largest number of scholarships in Bangladesh for the meritorious and needy students every year since 2001. This scholarship is available for different levels of education such as: HSC level: Dutch-Bangla Bank Limited awards new scholarships every year for the meritorious and needy students of this level along with the continuation of existing awardees. The students, who have been studying at H.S.C. level after passing S.S.C. examination in the current year, are eligible to apply for scholarship of this level. The scholarships are renewable for the entire academic period of H.S.C. level. Already 745 Scholarships have been awarded in this level. Graduation level: Every year DBBL awards new scholarships for the meritorious and needy children. 2. Fellowship Program Dutch-Bangla Bank Limited has been awarding fellowship for pursuing M.Phil, Doctoral & Post Doctoral degree since 2006. This fellowship is awarded to those researchers engaged in research in various fields like Social, Biological, Medical, Agricultural and Natural Sciences and also engineering at different public universities of Bangladesh in M.Phil., Ph.D. & Post Doctoral Levels. Every year fellowships are awarded to the researchers for the entire period of research work as required by the university curriculum. Already 159 fellowships have been awarded.

Making technology affordable for masses to facilitate seamless transaction and socioeconomic development

DBBL being the most technologically advanced Bank has established the largest ATM network of the country with a huge investment which is not at all financially rewarding. Still DBBL has taken these initiatives as part of its CSR programs to reach the benefits to the customers enabling them to make seamless transaction 24 hours a day across the country. To widen and spread the benefit of the ATM network DBBL is allowing customers of other banks to use the ATMs at nominal cost. DBBL is committed to spread the network even further to maximize socioeconomic benefits of the country though it is not cost-effective for the Bank.

Commitment to rural area and Supporting SME


DBBL has opened 10 SME service centers mainly in rural area to support SMEs and to bring related low income group under financial intermediation to help them become self reliant and unleash the potential of economic growth in rural area. The centers also facilitate quick transfer of funds from home and abroad to rural people through ATMs at free of cost.

Environment
DBBL complies with environmental standard while financing industrial projects. Projects with likely adverse impact on environment are strongly discouraged by DBBL. We are trying to incorporate sound environmental management process in business operations of projects financed by us that can ensure healthy and sustainable lives for our future generations. DBBL introduced a guideline demanding assessment of environmental and social impacts of the projects to ensure that operations of the projects would be eco-friendly. Environmental degradation and depletion of natural resources are matters of great concern in Bangladesh like anywhere in the world. Environmental degradation is taking place due to poverty, over population and lack of awareness about the environment. It is manifested by deforestation, destruction of wetlands, depletion of soil nutrients etc. Natural calamities like floods, cyclones and tidal bores also result in severe socio-economic and environmental damage. DBBL has been continuously creating social awareness to protect the environment that is essential for present and future generations. With that end in view, DBBL is regularly advertising in print and electronic media to develop an eco-friendly society for sustainable and healthy human life.

Supporting the Society at large


Since inception, as a responsible corporate body, Dutch-Bangla Bank Limited has been playing a pioneering role in implementing social and philanthropic programs to help disadvantaged people of the society. A number of sectors are on the priority list of the Bank. Education, health care, rehabilitation of distressed people and such other programs to redress human sufferings and to improve quality of life are some of the important areas where the Bank carries out its social and philanthropic activities.

Mercantile Bank donates Tk 2.5m to cancer hospital at November 6, 2009

Mercantile Bank Foundation handed over a cheque for Tk 2.5 million as donation to Ahsania Mission Cancer Hospital at a simple ceremony in the city Wednesday. Dhaka Ahsania Mission President Kazi Rafiqul Alam received the cheque on behalf of the organization. Speaking on the occasion, chairman of the bank Md Abdul Jalil MP said banking service is not merely for earning profit, it also plays a role for the welfare of the society. With this view, Mercantile Bank Foundation has been working from its inception. One per cent of profit or Tk 4.0 million, whichever is higher, is transferred to the fund of the Mercantile Bank Foundation from each years profit earned through banking services of Mercantile Bank Ltd and the fund is spent for the welfare of the society. Rafiqul Alam thanked the bank for its donation to the cancer hospital fund as its corporate social responsibility.

Beximco Pharma donates Oseflu capsules for Swine Flu treatment


Leading drug manufacturer Beximco Pharmaceuticals Ltd. (BPL) on September 13, 2009 donated 5000 pieces of Oseflu (Oseltamivir) capsule to ICDDR, B as a gesture of BPLs support for the swine flu affected community of the country. This donation was a part of BPLs ongoing CSR activities as a response to this major public health problem. Beximco Pharma is the pioneer in introducing Oseltamivir preparation is Bangladesh. Back in March 22, 2006, Beximco Pharma introduced Oseflu capsule for the prevention and treatment of human cases of Avian Influenza (H5N1).Besides its use in Bangladesh, Beximco Pharma also supplied Oseflu in ASEAN countries, Central America and Latin America for the treatment of Swine flu affected people. Beximco Pharma has also started a public awareness programmed against swine flu which comprises public awareness posters, inserts, patient information guide, sticker and advertisement in the newspaper. Regarding the donation of the drug, the Beximco Pharmas Managing Director, Nazmul Hassan, MP, said, Beximco Pharma always likes to work together with reputed organizations like ICDDR, B in public health related issues. Bangladesh is under great threat of facing consequences of Swine Flu and its everyones combined effort that can create a strong resistance against this deadly disease in Bangladesh.Dr. Mark Pietroni, Medical Director of ICDDR, B also spoke on the occasion of handing over the medicine and said, We welcome this nice gesture of Beximco Pharma that would be of great help for patients coming to us for the treatment of Swine Flu. As a part of its public awareness programmed, the company has also opened a 24 hour Swine flu Hotline (01711-438-139) for all to provide information on Swine Flu and its management.

Corporate social responsibility: Bangladesh perspective


Speakers at the International Seminar on CSR organized by IUBAT expressed deep concern over
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the working atmosphere in both public and private sector in Bangladesh. They viewed that good corporate governance practices would help running every enterprise in a methodical way enabling them to gain confidence of customers as well as investors. . Terming CSR as the continuous learning process, the experts observed that all organizations will have to develop their collective competence by educating workforce and improving the overall management. They also suggested ways and means to improve the working atmosphere and operation by strictly adhering to key concept of Corporate Social Responsibility (CSR) and disseminating this discipline in the entire organ of the organization concerned.The speakers focused that CSR is related to social management and by strengthening this practice any organization can develop its operational management to achieve the goal. This would help deliver social compliance required for setting global standard for maximizing the value thereby enhancing competitiveness in the entire organization. The first ever seminar on CSR, portrayed a gloomy picture and urged the policy makers at all levels to design a performance roadmap in conformity with set rules and core concept of CSR to develop a good management credential necessary to have a positive impact on the society. They made a clarion call to bring adequate improvement in working methodology and operational activities, in line with global changes to give a big push needed for reforms to ensure consistent product quality and overall improvement in management function. They examined the rationale for the adoption of CSR initiatives in management function, community development, corporate sustainability, accountability and professional development for safeguarding the interest of any organization. (Mozidur Rahman Biswas http://www.thefinancialexpress-bd.com/2009/11/06/83521.html)

CHAPTER 3: Methodology 3.1 Sampling design

Several methods can be used to select a sample from a population. It actually depends on the population. Population is finite or infinite. Many sampling situations in business and economics involved finite population but in some situation the population is either infinite or so large that for practical purposes it must be treated as infinite. Here we would like to identify, how much Corporate Social Responsibility is important for business. So it is too tough to difficult to collect data from every business organizations for the analysis. Sampling from Infinite population, we cannot be listed and numbered. We must use different process for selecting the sample. In That situation, we can use simple random sample from an infinite population. A simple random sample from an infinite population is a sample selected such that the following conditions are satisfied. 1. Each element selected comes from the same population. 2. Each element is selected independently. For the problem of selecting a simple random sample of business visits at different organizations for satisfying the first condition by the organization that are follow the CSR practices. The second condition is satisfied by ensuring that the selection of particular organizations does not influence the selection of any other organizations. That is, the organizations are selected independently. In our survey, basically there are two types of organizations those are services and manufacturing oriented and the opinion of general public that what are the proper ways or sectors for the organizations that they can follow for maintaining CSR practices. So here we randomly collect data about CSR practices from the above three categories for analyzing of increasing image of business whether CSR have a great impact or not.

3.2 Research design

Research design is a plan for collecting and utilizing data so that desired information can be obtained with sufficient precision or so that a hypothesis can be tested properly or we can say an overall plan of action to be followed during an experiment to be sure that the objectives are met. Often the specific procedures to solve problems are included in the research design. In other words, it shows reader how you obtained your results. Under the research design, following things should be covered. How was the data collected or generated? How was it analyzed? And Finally making a procedural outline We need to know how the data was obtained because the method affects the results. Here we try to find data about CSR practice on business for strong image, if we use a multiple choice questionnaire, we will obtain different results. Knowing how the data was collected helps the reader evaluate the validity and reliability of results, and the conclusions we draw from them. We have used a questionnaire where readers will know that it offered respondents a reasonable range of answers to choose from (asking 1.strongly Agree 2. Agree 3.Neutral 4.Disagree 5.Strongly Disagree).So here the responders have provided the answer according to their activities about CSR practice. After collecting all the relevant information on the basis of the above scale, we have made the analysis the data to meet the ultimate object.

3.3 Data collection procedure


For collecting data, we have used two types of sources which helped us to make the report. The sources are as followingPrimary Sources Preliminary information has been gathered through brainstorming serious. A conceptual theoretical and methodological framework has been developed for the study. As primary data, we have made survey about CSR practice in organizations by using questionnaire, taking interview, select sample from them and make analysis on them. Secondary Sources The secondary data has been collected from the various to clarify different conceptual matters and necessary data through internet has been used in this regard. The secondary sources of data are as following-

3.4 Data analysis


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3.4.1 Service: Following Data is collected from the service oriented organization through
questioner on the basis of 5 point scale.
Citizen of society 3 5 5 4 5 4 4 5 5 5 4.5 90.00% App. Csr 2 4 5 3 5 4 4 4 5 4 4 80.00% Raise recognition 5 5 5 5 4 4 5 5 4 4 4.6 92.00% 5 5 5 3 5 4 3 3 3 4 4 80.00% Mandatory Csr policy 3 4 5 3 3 4 3 3 4 2 3.4 68.00% Env.& Social 5 4 5 4 5 4 4 5 5 4 4.5 90.00% Civil Society Consideration 3 4 4 4 5 4 3 4 5 3 3.9 78.00% Prevent Social prob. 5 5 5 4 4 4 4 4 5 3 4.3 86.00% Earning profits 2 4 5 3 3 4 3 4 5 4 3.7 74.00%

Avg %

Table: 1 .CSR response of service oriented companies From our sample it is clearly identified that the CSR has a great impact on business in case of raise the recognition and goodwill and that is got the height priority from the sample of service organization. And they are mainly concern about Environment protection and social concern. But in case of conduct the strategy Civil Society Consideration has get the less priority. The maximum cases the service organization believe that the business organization can prevent the social problem. But in case of earning profit it may have the less impact in short term though it has a long term impact on profit. Unfortunately having the CSR policy percentage is low that is not a good sign for the society.

3.4.2 Manufacturing: Following data is collected from manufacturing company through the
questioner of 5 point scale.
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Citizen of society 5 5 4 3 4 5 4 4 5 4

App. Csr 4 3 5 3 3 4 3 3 3 3 3.4 68.00%

Raise recognition 3 4 5 4 5 5 3 4 4 5 4.2 84.00%

Mandatory 5 3 3 3 4 4 3 3 3 4 3.5 70.00%

Csr.policy 4 4 4 3 3 4 2 5 2 3 3.4 68.00%

Env.& Social 4 4 4 3 4 5 2 4 4 4 3.8 76.00%

Civil Society Consideration 4 4 4 3 3 4 2 3 3 4 3.4 68.00%

Prevent Social prob. 3 5 3 3 4 4 3 4 2 4 3.5 70.00%

Earning profits 3 4 3 4 4 4 4 4 4 4 3.8 76.00%

Avg. %

4.3 86.00%

Table: 2 CSR responses of manufacturing companies From the sample of manufacturing company it is clear that CSR has a great contribution in case of raising the goodwill of any firms and they also believe it. Manufacturing firm believe that company are the citizen of the society though the civil society have a less involvement in case of conduct the strategy of any farm. In earning the profit the csr has the long term impact and that comes from the result of goodwill.

3.4.3 Service and manufacturing: Data are accumulated from the response of service and
manufacturing organization
Citizen of society App.Csr Raise recognition Mandatory Csr policy Env.& Social Civil Society Consideration Prevent Social prob. Earning profits

Avg.res %

3 5 5 4 5 4 4 5 5 5 5 4 3 4 5 4 4 5 4 5 4.4 88.00%

2 4 5 3 5 4 4 4 5 4 3 5 3 3 4 3 3 3 3 4 3.7 74.00%

5 5 5 5 4 4 5 5 4 3 4 5 4 5 5 3 4 4 5 4 4.4 88.00%

5 5 5 3 5 4 3 3 3 5 3 3 3 4 4 3 3 3 4 4 3.75 75.00%

3 4 5 3 3 4 3 3 4 4 4 4 3 3 4 2 5 2 3 2 3.4 68.00%

5 4 5 4 5 4 4 5 5 4 4 4 3 4 5 2 4 4 4 4 4.15 83.00%

3 4 4 4 5 4 3 4 5 4 4 4 3 3 4 2 3 3 4 3 3.65 73.00%

5 5 5 4 4 4 4 4 5 3 5 3 3 4 4 3 4 2 4 3 3.9 78.00%

2 4 5 3 3 4 3 4 5 3 4 3 4 4 4 4 4 4 4 4 3.75 75.00%

Table: 3 Average Reponses of service and manufacturing companies. In the overall sample analysis show that has a big impact in raising the goodwill (88%)of any organization side by side they believe that corporation is the citizen of the society(88%) though the csr application percentage(74%) is not that much satisfactory level. in tears of CSR mandatory question the percentage is low(75%) in compare to others. As like the others the Environment protection has got the height priority (83%). On the other hand to set up the strategy the civil society consideration got the less priority (73%). Unfortunately the sample show that the csr policy is not follows strongly so that the percentage is low (68%).Most of the organization believe that organization can prevent the social problem. But in case of earning profit that percentage is (75%) that is for in short run.

3.4.4 Public response: the public response data is collected from some conscious citizen of
our country through the questioner of 5 point scale

Table: 4 Public responses about CSR practice


Impact On Business goodwill. 4 5 5 4 4 4 4 5 4 5 4 5 5 4 5 3 4 4 4 5 4 4 5 4 5 5 5 5 5 5 Avg % 4.466666667 89.33% 3 3 3 2 2 1 3 2 3 1 2 2 4 2 3 5 2 2 2 2 3 2 3 2 2 4 2 2 2 3 2.466666667 49.33% Follow csr Bd Public interest 4 2 2 4 2 2 4 4 3 1 2 4 3 4 4 1 2 2 1 5 4 4 5 4 4 4 5 2 4 4 3.2 64.00% Use of Soc. Res 3 2 1 4 2 2 4 2 2 2 2 2 1 2 3 1 2 2 2 2 2 2 2 2 2 3 2 2 1 2 2.1 42.00% env. Concern 2 1 3 2 2 2 3 4 3 1 4 3 5 2 4 1 2 1 1 1 1 2 5 2 4 5 1 1 1 2 2.366666667 47.33% Strengt h of soc. Org 3 3 2 4 2 2 4 4 2 1 2 2 4 2 4 1 4 2 2 4 1 2 4 2 2 1 2 1 2 4 2.5 50.00% 1 1 5 4 4 5 5 5 4 4 4 4 4 5 5 3 4 4 5 4 4 4 5 5 4 2 4 3 5 3 3.96666667 79.33% Use hi-tech Strength of law 2 1 1 2 2 2 3 4 2 1 2 2 4 2 4 1 2 2 2 2 1 2 5 2 1 1 2 1 2 2 2.066666667 41.33% 2 3 1 5 4 4 3 5 2 1 2 3 5 5 4 1 2 5 5 5 5 2 5 5 5 5 2 2 5 3 3.53333333 70.67% Gov.role

From the public response it is shown that CSR has a impact on business and this percentage is high (89.33%).But in case of apply CSR peoples believe is too low (49.33%) that mean this application is not too strong though the public interest protection is comparatively high (64%).By the answer of using the social resource properly people are not satisfy with the organizations (42.00%).People think that organizations are not concern about the environment protection (47.00%). The social organization are not that much strong to bargain with the business(50.00%).general people is in favor of using the high-tech in case of production to having a sustainable development. Though the government can play a vital role to ensure the public interest but law or laws implementation is not satisfactory (70.67% and 41.33%).

3.5 Graphical representation: Following graph are conducted on the basis of respondents
data.

3.5.1 Response of service and manufacturing Organizations.

Figure 1: Comparison between the Service and Manufacturing organizations response Here thee horizontal axis represent the component of questioner/ variable and vertical represent that the percentage of response(total among the 45).here the service organizations are ached with the concern of raise recognitions (92%).In others forms the service organization are holding a strong position.

3.5.2 Overall response.

Figure 2: Average response of manufacturing and Service Company.

Here the horizontal axis represent the components or variables, and vertical axis represent the percentage of response (among total 45).here CSR raise the recognition gating the more preference.

3.5.3 Contribution of CSR practices in different area

Figure 3: Contribution of CSR different sector. Here the consumer interest is getting more preference and environment is holding the second concern in compare to the others.

3.5.4 Impact of CSR on profit margin of business


Figure 4: Impact of CSR on operating and net profit margin of business.

3.6 Limitation
To prepare this report we have to faced some limitations which are as followingsThis graph shows that the impact of CSR on operating and net profit margin between Golden lather and DBBL on the basis of provided the respondent data. And it indicating the comparison between two organization those who are practicing the low and high leave of CSR practice.

As CSR practice is not a single task it includes different activities. So it is required long time to identify which variable of CSR is great impact on profit. We have faced the lacking of secondary data. Sources of information were not sufficient to complete the report Availability of recent data is yet another constraint. We surveyed only twenty organizations but it is not sufficient to find out the overall situation of CSR practice in our country. Some organizations may not provide the actual information about CSR practice. They can give positive information about CSR but that may not be. Access to information and Access to resources are not easy task to complete within short time, need to enough to assess those.
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Access to experts for editing, proofreading, and guidance are not available that much to make the report.

Chapter 4: Findings
In our survey, we use some variables of CSR practices to find those variables are followed by the organizations or not. If the organizations follow then what are the benefits from the practices that are the main concern in our report. In case of service oriented organizations, 92% response that CSR is the way to raise the reorganization of the organizations in better way than following the others practices and second position, they think business as the citizen of the society. That means by performing duties and responsibility of the society as a member of the society. On the other hand, 86% manufacturing oriented companies response that for rising image as well as profit, considering the business as citizen of the society. That means as member of the society we have the responsibility for well-being of the society, by performing those responsibilities organizations can raise their profit as well as image. If we consider the opinion of the general public, 89.33% people think that there is a great impact on business but at the same time they also think that the practice of CSR in Bangladesh has an embryonic stage. If we consider the average between the service and manufacturing, 88% response performing activities as citizen,
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organization can raise their profit and image in business world. So here we can easily say that there is impact of CSR practice on business for increasing profit and image in future. Here we get a deviation that is people say that CSR practice in Bangladesh is not that much that increase profit but organizations say that they follow CSR in doing business. So there may have some mismanagement for that reason people cannot appear those practices in our country. Finally we found that the CSR has a greater impact on increasing profit in long-term.

Cheapter5: Conclusion. 5.1 Conclusion.


As the blooming stage of CSR in our country is not practicing in proper way, though some company gating the benefits by practicing this policy. Today the customer is call as a god so protecting the interest of customer through the CSR practice can be the best way to bite the competitor. As the citizen of the society the corporation is using the social recourses so that it has a responsibility towards the society as well. A corporate social responsibility is beneficial for attraction and retention and the right thing to do. Key organizational leader and can take the lead or partner with other followers to work cross-functionally to integrate CSR objectives into how business gets conducted. There are different way to perform the csr practice in business through
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our survey we found some components for csr practice and that can be the grater booster for performing the responsibility to the all parts of the society and business in order to having the sustainable development as well as the interest of business.

5.2 Recommendation:
In case of manufacturing company the authority should have to be concentrated about the product quality and the element should be more potential to maintain the corporate social responsibilities practice. In case of Service Company, authority should maintain the higher service by which clients not only be satisfied by also be highly benefited as corporate social responsibilities practice. All the institutions should know about the corporate social responsibilities and should know the proper practice of corporate social responsibilities.

In case of Medicine Company, producers should have t concern about the peoples health and all the raw material should have to be more health effective.

The embryonic stages of CSR practice need to improve to get more benefit from the society at large.

The contribution to the well being of the society as well as general people should be more to get benefit.

The organizations should involve and consider the general public interest in case of setup strategy regarding the CSR.

The government should more concern about the CSR practice in Bangladesh. The Social and consumer interest protection organization should act more strongly. If the organization has enough capability they should go for high-tech equipment to having the sustainable development.

The law and regulatory authority can enforce and implement strong regulation in order to having the better customer interest.

Appendices

Ten set of Set of service organizations response questioner. Ten set of Set of service manufacturing organizations response questioner.

30 sets of public response questioner.

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