Strategies for Adopting CSR in the Business of Sonali Bank Limited

Strategies for Adopting CSR in the Business of Sonali Bank Limited
Sonali Bank Limited (SBL) is the largest government commercial 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 of Bangladesh.
Banking industry in Bangladesh is now a days very prospective and competitive.
To give a competitive edge, CSR is a very strong and helpful tool for any bank.
Sonali Bank took the tool and work with it before anyone does in the banking
industry in Bangladesh..SBL is one of the most successful banks in Bangladesh
and still growing having enough prospects. Other player in the banking industry
should take a part in this field to gain certain competitive edge.
Today, Corporate Social Responsibility (CSR) goes far beyond the old
philanthropy of the past –donating money to good causes at the end of the
financial year and is instead an all year round responsibility that companies
accept for the environment around them, for the best working practices, for their
engagement in their local communities and for their recognition that brand
names depend not only quality, price and uniqueness but on how they interact
with companies workforce, community and environment. CSR encourages
companies to look at a wider range of stakeholder interests, which can widen
understanding of the potential risks and opportunities for the business while
offering wider social or environmental gains.
SBL 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. They see Corporate Social Responsibility as the business
contribution to sustainable development.
Modern banking system plays a vital role for a nation’s economic development.
Over the last few years the banking world has been undergoing a lot of changes
due to deregulation, technological innovations, globalization etc. These changes
also made revolutionary changes of a country’s economy. Present world is
changing rapidly to face the challenge of competitive free market economy. It is
well recognized that there is an urgent need for better-qualified management
and better-trained staff in the dynamic global financial market. Bangladesh is no
exceptions of this trend. . Banking Sector in Bangladesh is facing challenges from
different angles though its prospect is bright now and in the future.
To meet up the growing needs of skilled and eligible managerial and executive
manpower of in the country, University Of Uttara, has initiated the BBA (Bachelor
Business Administrator) Program which follows the international education
quality standards. The objective of the BBA Program is to prepare individuals to
develop the specific skills and judgment required for effective business

The core objectives of the report in bank are as follows – To gain practical exposures in CSR activities conducted by banks. Moreover due to obvious reasons of lack of my expertise we might not make the report as like as it should be. To apply theoretical knowledge in the practical field. The following main limitations are apparent in the report – We do not have that much practical knowledge to make the report that much meaningful. Internet was used as a theoretical source of information. We could not collect all the necessary information we needed. That is why. To have some practical exposures that will be helpful for my future. Some article has been used as a source of critics and their analysis. LIMITATIONS Analyzing the critical financial business activities of a Bank is not that easy. The availability of information was limited. METHODOLOGY FOLLOWED The report is mainly The “Secondary Sources” of data and information’s are – Annual Report of SONALI BANK LIMITED. But we have tried our best to make is as much better as possible to us.operation. To find out the effect of CSR activities in the country both for the stakeholders and the organization. . we put a limit on our report and conduct the report on only SBL. To observe and analyze the performance of CSR activities of the bank. For this purpose. OBJECTIVES OF REPORT The primary objective of the study is to meet the partial requirements for the fulfillment of the BBA Program. Making the report on the whole banking industry was hardly possible for us. student as well as a professional in rest of my life. The BBA Program is designed to integrate the whole business knowledge and ideas to with gather practical knowledge about actual business environment and activities. with the permission of our instructor. Daily newspaper and the bank’s website is used for sourcing related information about the bank. our course supervisor has assigned me to prepare a report on the topic “Strategies for adopting CSR in the business: Sonali Bank Limited”.

CSR commitments and activities typically address aspects of a firm’s behavior (including its policies and practices) with respect to such key elements as. environmental and economic objectives set the official level of CSR performance. and is generally understood as focusing on how to achieve the integration of economic. and social imperatives. still others argue that it is an attempt to preempt the role of governments as a watchdog over powerful multinational corporations. corporate stewardship. The practice of CSR is subject to much debate and criticism. While business compliance with laws and regulations on social. community development. and stakeholder rights. CSR is generally accepted as applying to firms wherever they operate in the domestic and global economy.And of course as students of BBA Program. business ethics. we might not be able to capture the whole situation in our report for our lacking of experience in this regard. non-governmental organizations.. health and safety. corporate responsibility. short-term profits. CSR usually involves focusing on new opportunities as a way to respond to interrelated economic. corporate accountability. Critics argue that CSR distracts from the fundamental economic role of businesses. CSR also overlaps and often is synonymous with many features of other related concepts such as corporate sustainability. corporate governance. employees. corporate citizenship. and social imperatives while at the same time addressing shareholder and stakeholder expectations. environmental. CSR is often understood as involving the private sector commitments and activities that extend beyond this foundation of compliance with laws. societal and environmental demands in the marketplace. others argue that it is nothing more than superficial window-dressing. From a progressive business perspective. human rights. international organizations. governments. labor protection. in that corporations benefit in multiple ways by operating with a perspective broader and longer than their own immediate. With the understanding that businesses play a key role on job and wealth creation in society. CSR is generally understood to be the way a company achieves a balance or integration of economic. suppliers. and consumer protection. Body Corporate Social Responsibility (CSR) Corporate social responsibility is necessarily an evolving term that does not have a standard definition or a fully recognized set of specific criteria. The societal marketing concept is an enlightened marketing that holds that a company should make good marketing decisions by considering consumers’ . environmental protection. Proponents argue that there is a strong business case for CSR. and other stakeholders is usually a key feature of the concept. supplier relations. Many firms believe that this focus provides a clear competitive advantage and stimulates corporate innovation. environmental. human resource management practices. The way businesses engage/involve the shareholders. customers. etc. CSR is generally seen as the business contribution to sustainable development which has been defined as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.

ethics codes. corporations have redefined their core values in the light of business ethical considerations (e. tools and techniques to social issues. both within major corporations and within academia. social responsibility charters). and society’s long-term interests. The term CSR itself came in to common use in the early 1970s although it was seldom abbreviated. descriptive approaches are also taken.g. In academia. the demand for more ethical business processes and actions (known as ethicism) is increasing. The concept has an emphasis on social responsibility and suggests that for a company to only focus on exchange relationship with customers might not be in order to sustain long term success. It is closely linked with the principles of Corporate Social Responsibility and of Sustainable Development. social marketing uses commercial marketing theories. Simultaneously. meaning those impacted by an organization’s activities. was used to describe corporate owners beyond shareholders from around 1989. In contrast to that. resulting not only in favorable image.g. the field is primarily normative. Rather. Ethical and socially responsible practices are simply good business. the company’s requirements. pressure is applied on industry to improve business ethics through new public initiatives and laws. but ultimately in increased sales. today most major corporate websites lay emphasis on commitment to promoting non-economic social values under a variety of headings (e. marketing strategy should deliver value to customers in a way that maintains or improves both the consumer’s and the society’s well-being. As a corporate practice and a career specialization. the financial community. In the increasingly conscience-focused marketplaces of the 21st century. For example. Business ethics can be both a normative and a descriptive discipline. The term stakeholder. Social marketing applies a “customer orientated” approach and uses the concepts and tools used by commercial marketers in pursuit of social goals like Anti-Smoking-Campaigns or fund raising for NGOs. Most companies recognize that socially responsible activities improve their image among customers. The societal marketing concept was a forerunner of sustainable marketing in integrating issues of social responsibility into commercial marketing strategies. CSR TOOLS Companies interested in advancing corporate social responsibility and in improving their social and environmental performance as part of their business . stockholders. and other relevant publics. BP’s “beyond petroleum” environmental tilt). Development of CSR Business ethics is a form of the art of applied ethics that examines ethical principles and moral or ethical problems that can arise in a business environment. Societal marketing should not be confused with social marketing.wants. Historically. interest in business ethics accelerated dramatically during the 1980s and 1990s. The range and quantity of business ethical issues reflects the degree to which business is perceived to be at odds with non-economic social values. In some cases.

The majority of these CSR projects are established in Africa. including: Accountability’s AA1000 standard.have a wide range of tools available for application. and many other characteristics. A COP report describes the company’s implementation of the Compact’s ten universal principles. Tools can be applied to one or more of the planning. Businesses have options in how they can use the tools. An often alternative approach to this is the establishment of education facilities for children’s. And even within Asia the discussion about CSR is very heterogeneous. as well as HIV/AIDS education program for adults. Tools can vary widely in terms of objectives. . level of formality. and improvement facets of corporate operations. extent of stakeholder involvement. firms can report in accordance with a number of CSR reporting guidelines or standards. costs. Auditing and reporting To demonstrate good business citizenship. companies can use the tools that have been developed by others or they can develop their own tools – either independently or in partnership with other stakeholders. whereas community-based development generally leads to more sustainable development. based on John Elkington’s triple bottom line (3BL) reporting Global Reporting Initiative’s Sustainability Reporting Guidelines Verity’s Monitoring Guidelines Social Accountability International’s SA8000 standard Green Globe Certification / Standard The ISO 14000 environmental management standard The United Nations Global Compact promotes companies reporting in the format of a Communication on Progress (COP). Some organizations do not like this approach as it does not help build on the skills of the local people. partnerships. corporate responsibility reporting and corporate governance disclosure. scope. On the other hand SBL can follow the best practice around the world. For example. checking. implementation. An approach for CSR that is becoming more widely accepted is community-based development projects. The United Nations Intergovernmental Working Group of Experts on International Standards of Accounting and Reporting (ISAR) provides voluntary technical guidance on eco-efficiency indicators. A more common approach of CSR is through the giving of aid to local organizations and impoverished communities in developing countries. Approaches of Adopting CSR Some commentators have identified a difference between the Continental European and the Anglo-Saxon approaches to CSR. SBL develop their own CSR tools and other can follow them at the beginning stage.

Some nations require CSR reporting. 9552007 SWIFT : BSONBDDH Website : E-mail : itd@sonalibank. Many companies now produce externally audited annual reports that cover Sustainable Development and CSR issues (“Triple Bottom Line Reports”) www.26 of 1972) Date of Incorporation : Date of Vendor’s Agreement Registered Office Bangladesh : 03 June. following the Bangladesh Bank (Nationalization) Order No. 33. 1972(PO No. Authorized Capital : Taka 2000. citing examples such as Enron’s yearly “Corporate Responsibility Annual Report” and tobacco corporations’ social reports. but the reports vary widely in format. 2007 : 15 November.00 core Paid-up Capital Taka 1125. though agreement on meaningful measurements of social and environmental performance is difficult. . 44 Motijheel Commercial Area. style. 9552924 88-02-9561410. 2007 About Uttara Model Town Branch Year of establishment: 1985 Name of the Manager: Kazi Nazrul Islam. 34. the SONALI Bank Limited: Background of SBL COMPANY OVERVIEW : SBL Profile Name of the Company Chairman : : Sonali Bank Limited Quazi Baharul Islam CEO and Managing Director : Company Secretary Zaheed Hossain Legal Status : : Pradip Kumar Dutta Public Limited Company Genesis : Emerged as Nationalized Commercial Bank in 1972.839 Number of Branches : 1200 Phone-PABX : FAX : 9550426-31. Critics dismiss these reports as lip and evaluation methodology (even within the same industry). Dhaka.00 core : Number of Employee : 21.

and the main commercial center of the capital. Vision Socially committed leading banking institution with global presence. After corporatization. creating value for the stakeholders and contributing towards socio-economic development of the country.sonali. Premier Bank and Bank of Bhwalpur. Uttara Model Town.8951211. 19 Regional Offices and 198 fully computerized branches. the management of the bank has been given required autonomy to make the bank competitive & to run its business effectively. liabilities and business of Sonali History of Sonali Bank Limited: Soon after independence of the country Sonali Bank emerged as the largest and leading Nationalized Commercial Bank by proclamation of the Banks’ Nationalization Order 1972 (Presidential Order-26) liquidating the then National Bank of Pakistan. 30 Main Divisional Offices. The Bank is headed by the Chief Executive Officer & Managing Director. Sonali Bank Limited is governed by a Board of Directors consisting of 11(Eleven) members. Bangladesh. who is a well-known Banker and a reputed professional. 6 General Manager’s Office. covering all spheres of the economy. 8914639 Mail.. Dhaka. the bank had been discharging its nation-building responsibilities by undertaking government entrusted different socio-economic schemes as well as money market activities of its own volition. Recently it is going to introduce shares. Dhaka-1230 Way of Contact: Tel. Management of Sonali Bank . 42 Principal Offices. Slogan Your trusted partner in innovating banking. ensuring best possible and fastest services to its valud clients and efficient management. Address of the branch: Sonali Bank Limited. As a fully state owned institution.Number of Employees: 40. The bank has been converted to a Public Limited Company with 100% ownership of the government and started functioning as Sonali Bank Limited from November 15 2007 taking over all assets. Mission Dedicated to extend a whole range of quality products that support divergent needs of people aiming at enriching their lives. Sonali Bank at a glance SBL is one of the largest public banks in Bangladesh. The corporate head quarter of the bank is located at Motijheel. It operates through One Head Office.

The Divisions are headed by the DGMs and the departments are by AGMs.50 5.16 [Source: annual report of Sonali Bank on 2006-2011] Training . There are also many sections under every department in the Head Office. To encourage the agricultural sector the rate of interest fixed to 2.25 5. Principal Offices are the local points of the bank’s administrative zone in the districts.00-16.00 9.00-13. The offices are situated at Thana level within the districts.00 13.25 4.38 2.00-12.00 9.00 9.00 5.00 10.00 3.00 13.00 3. It has also overseas branches.75 2.25 5.00-16.00-10.00-11.61 2009 5.00-9. loans & advances etc.00-11. Management hierarchy of Sonali Bank is given below: General Meeting In SBL Conference Functional Structure Sonali Bank Limited is the largest commercial bank of Bangladesh.00-13. Rate of interest of Sonali Bank is given below: Deposit Loan Advance Year Savings Account Short Term Deposit Account Fixed Deposit Account Weighted Average Agricultural Sector Industrial Sector Service Sectors Weighted Average 2006 3.0-11. Dhaka.00 8.12 8.25-8.89 2007 4.00 10.00 13.25 5.46 2. Interest Rate Sonali Bank diversified its rate of Interest on loan and advances in compliance with the interest rate policy declared by Govt. in 2005. A DGM is the chief of the Principal Office and an AGM usually runs a regional office.00 3.65 7.00-12. The corporate are nearly equivalent to the GM office and usually headed by the DGMS.25-7. They provide all the banking services such as general banking.50 6.00-16.25-6.50 6.65 7.00 8.00 10.00 13.25-8.0 percent.00 12. It has 1187 branches throughout the country. which is constituted in terms of the Bangladesh Bank’s Nationalization Order 1972.50 2.00 12.46 2.00 2.16 2011 5.25-7.0 percent and to increase the rate of industrial production and services industry.00 3.25 5. The Head Office of the bank is located at the Motijheel Commercial Area.35 2.00-10.00 9. the rate of interest rate is fixed to 9.00 12.0-16.25-6.25 5.00 13.0 percent and 13.The Board of Directors is the top of Management.58 2010 5.40 2008 5.00 9. The regional offices are under control and supervision of principal offices.

SBL practice thus encompass the professional activities of helping individuals. A society. Accounting. health. Management. The well-being of individuals is jeopardizing when normal developmental processes are interrupted by personal crisis. political and other aspects are also being available here to attract and inspire the readers. families. Aim and objectives of SBLF: . Aim and objectives of SBLF are as bellow. Rajshahi. SONALI BANK LIMITED (SBL) is the first Bangladeshi bank in Bangladesh addresses social concerns that threaten the structure of society and redress social conditions that adversely affect the wellbeing of people and society. It has now been turned into a modern library by extending its facilities. It has been enlarged with the latest books on Banking. in turn. and communities to enhance or restore their capacity for optimal social functioning and of . Library Facilities With the objectives of enriching knowledge and working efficiency of the officers and members of the staff of Sonali Bank. conservation of nature. Sonali Bank Foundation (SBL) is consistently pursuing its objective of being active in those social areas where it is needed most. Computer. 2001 to perform humanitarian works like rehabilitation of the destitute and neglected portion of the society especially grassroots level poor in right track. The Foundation carries out diverse social and philanthropic activities in the field of education. creation of social awareness.00% of Bank’s profit after charging loan loss provision to Sonali Bank Foundation (SBL). poor health and inadequate education. unemployment. Corporate Social Responsibility of SBL Activities of SONALI Bank Foundation (SBL) The ethos of SBL for pursuing its activities in social arena has got further momentum with your enthusiasm and support. Foreign Exchange. Library is situated on the 7th floor of its Head Office Building. In the year 2003 as many as 8430 officers and staff received training in 383 batches of different courses. workshops and seminars conducted by the aforesaid training institution & Staff College. organizations. Your Board of Directors in order to discharge its corporate social responsibilities in a greater perspective continued its contribution amounting to 5. Sonali Bank Limited Foundation (SBLF) was established on 3rd June. Economics. Religion. Industrial Finance. different international journals covering world economy. It is important that citizens of a society enjoy the full benefits that society offers. flourishes when its citizen can contribute their fullest potential. rehabilitation of distressed people and such other programs to redress human sufferings. Dhaka along with four Training Institutes / Centers at Chittagong. Agriculture. It also promotes different socio-cultural and sports activities.Sonali Bank staff college. Moreover. groups. the Bank has a central library.creating societal conditions favorable to this goal. poverty. Economics. Khulna and Bogra have been conducting training program covering total Banking activities in order to impart training to all categories of officers and staff of Sonali Bank. and Literature and on many other disciplines.

boarding and lodging expenses for students going abroad for higher commercial and technical education. clinics. rewards. research or educational works in Bangladesh or abroad subject to such terms and conditions as shall from time to time be prescribed by the Board of Trustees for advancement and promotion of education. accident. support and I aid or help in setting up and / or maintaining and / or running hospitals. maintain. poor houses or other establishments for relief and / or help to the poor. earth-quake. maintain. old and infirm people and / or destitute or to give. promote. To meet traveling. maintain. allowance and other financial assistance or help in cash or kind to students with a view to help them in prosecuting their study in universities. pamphlets. run. centre. To promote. set-up. and / or grant to any person. fire. auditoriums and the like for the running of welfare and other services to the public and to provide meeting-room for socially useful activities and functions. provide and I or render help and assistance to and / or implement any scheme for providing livelihood and enlistment of the poor. set-up. finance. and newspapers in Bangladesh or outside for the spread and advancement of education and culture. etc. set-up. institution or society or organization whatsoever having for its objects or charitable purposes and or incur expenditure in connection therewith. support and / or aid or help in the setting up and / or maintaining and / or running institutions. lunatic. famine. To establish. establish. To open. . promote.To grant. boarding houses. libraries. orphanages. by monetary gifts or otherwise. To give. schools. support or . maintain. prizes. epidemic. organize. assist. storm. award scholarship. art schools. centers and institutions for such education and training. provide and I or render food. pestilence. assist. gymnasium and other training and vocational institutes. To give. asylums. stipends. readingrooms. maintain. etc. maternity and child care centre. support. To publish and or publishing books. establish. pay or give. run. promote. drought. financial support and / or aid to or to help in the setting up and / or maintaining and / or running schools and other institutions. widows. old homes. or to give. colleges. institutions of teaching commercial and training. found. technical institutions. finance. cyclone. provide and I or render monetary and / or other help and assistance for the relief of persons and animals affected by natural and other calamities such as flood. especially in banking subject(s). widow homes. administer. To foster and encourage education and training in the field of banking among the persons employed in banking sector or who wishes to partake training with a view to be engaged in banking service and to establish and found institutions imparting such education and to establish. To open. educational institutions. assist. provide and / or render help and assistance in cash or kind to poor and or destitute. found. periodicals. medicine and other help find assistance in any shape or form to the poor deserving and needy persons.

Bangladesh is one of them. Description of the program: HIV/AIDS is setting its firm foothold in Asian countries. Ghulam Kabir. Dilkusha. medals etc. Among others. Yeasin Ali. In continuation of this program. SBLF has taken a program of supporting HIV/AIDS positive women and children by providing medicines. Md. Govt. Deputy Managing Director (Administration). SBL organized a “Treatment Card” distribution program among the HIV positive patients on June11. Professor Nazrul Islam. To work in collaboration with other Trusts. Tabrez. Bangabandhu Sheikh Mujib Medical University (BSMMU) and Dr.) Dr. Honorable Advisor. Head of Virology Department. clinical support. sblF’s CSR Programs Sonali Bank Limited Foundation has adopted various programs to make fruitful the aims and objectives: Education Information Technology Disaster Donation Recognition for SBL’s CSR Health SBL distributes the Treatment Cards to 50 HIV/AIDS positive patients – As a part of Corporate Social Responsibility. Mr. Managing Director of the bank presided over the function. symposia etc. K. . 2007 in Hotel Purbani International. to create awareness among the people aimed at spreading and upholding the ideals.To promote sports and culture through establishment of Clubs for sports. Health Directorate were present as special guests. and projects aimed at establishing. ASM Matiur Rahman. Md. programs. HIV/AIDS Assistance Program Target group: HIV/AIDS affected women and children. Director General (Health Services). seminars. Associations and bodies having activities. Deputy Managing Director (Operation) and Senior Executives of the bank were also present at the function. values and spirit of the Banking and related products and services. and also organize debates essay and sports competitions to achieve this object. SONALI BANK LIMITED have been extending medical facilities and other support to 50 HIV positive patients since 2004. Foundations. of the People’s Republic of Bangladesh was present as the chief guest and distributed the Treatment Cards to 50 HIV/AIDS positive patients while Mr. Ministry of Health & Social Welfare. food supplement and other essentials. spreading and upholding the ideals of Sonali Bank Limited Foundation. To organize meetings. Mr. S. shields. In Bangladesh HIV/AIDS related activities are limited to build up awareness but there is a little work for affected person. Major General (Rtd. Water Resources and Religious Affairs. recreational and cultural activates and introduce awards. Dhaka. Shahzahan Biswas.

In this connection SBL already spent the amount of Tk. Plan for next five years: If this program becomes success then after evaluation it will be extended for future. If the victims can utilize the money properly then SBL will provide them loan in a reduce interest rate (5%) for their betterment and proper rehabilitation.00 (one crore twenty seven lac fifty thousand) only.per person in this year (2005) which cost totaling Tk. Considering the gravity of the situation SBLF has taken the initiative to bring back smile on the face of the boys and girls with cleft-lip through plastic surgery since 2003.59.8.00 (taka fifty lac) only. Khulna.Under this program treatment cards were already distributed to 23 HIV/AIDS positive patients among them 03 are children. Barisal.00 (eight thousand and five hundred) only.50. the cleft-lipped boys & girls are being operated across the country for restoration of hope and dignity in their lives.00. goat farming. Dinajpur etc.500. Support to ACID & Dowry Victims Target group: Women especially from rural areas who are the victims of Dowry and Acid Violence: Description of the program: To create social awareness.000. So far 700 cleft-lips and / or palate surgery were done. Smile Brighter Program Target group: Boys and girls suffering from cleft-lip and palate whose parents are incapable to bear the operation cost of cleft lip.00 (taka fifty nine lac and fifty thousand) only This is an ongoing program. Tk. As a continuous process. Another advertisement also has published . attending social ceremonies and impediment at the time of getting married. Bogra.00 (Taka seventeen lac twenty five thousand) only has already sanctioned for implementation of the program to support 23 HIV positive patients (HIV/AIDS affected women and children).27. Boys and girls cursed with cleft-lips face a lot of problems in everyday life ranging from disruption of formal education.000.000. Through arrangement of special camps of under this ‘smile brighter’ program in Dhaka. fish farming etc. Description of the program: Cleft-lip is far more a social setback than a health problem. More than 800 numbers of poor cleft-lipped boys & girls have so far been successfully operated across the country. Comilla. SBLF continues with the plastic surgery program at ifs cost throughout the country for those cleft-lipped boys and girls (age up to 20 years) whose parents are unable to afford the cost of plastic surgery.17.10. Cost of each surgery is Tk. Around 1500 cleft-lip and/or palate boys and girls will come under this program in the next 05 years and the expenditure in this regard will be Tk. Sylhet.50.l. Rangpur. Rajshahi.25. Under this program 400 (four hundred) helpless dowry victims and 100 (one hundred) acid victims has already received one time donation of Tk.50. Chittagonj.000/.000. SBLF is supporting the acid and dowry victim women of different parts of Bangladesh by one time donation for their rehabilitation and to maintain small scale business like poultry rearing.

2005. 25. 25 lakh for the victims of devastating landslides in Chittagong Mr. . A. which was the day before last day of BASIS SOFfEXP02005 (November 27-December 01. Managing Director. The award Ceremony was held on 30th November 2005. Notably.) M.000 families of the villages waiting for blankets. 2005 inviting application from the victims where another 500 victims will get Tk. Mozammel Hossain Khan. In this regards. Plan for continuing the program: SBLF has planed to extend the program depending on the situation.00 (taka fifty lac) only.00 lac (Taka Twenty Five Lac) to the Honorable Adviser Major General (Rtd.00 lac for rehabilitating the standard people of the four Upazilas of Gaibandha and Rangpur districts. 6. 4. This was a gala evening (with dinner and cultural program) attended by around 700 dignitaries including government high officials & policy makers.000.25 La Disaster SBL has donated Tk. 50.000. Co-ordination. Matin at Chittagong Circuit House on June 13.60 lac for rehabilitating the homeless people affected by river-erosion of Ramgoti Upazila under Noakhali District on August 14. SBL is seen handing over GCI sheets to Mr. SBL has distributed blankets among the cold-affected people Mr. SBL donates 700 bundles of high grade GCI sheets to Gaibandha and Rangpur districts SONALI BANK LIMITED donated 700 bundles of high grade GCI sheets worth of Tk.000 blankets were distributed to cover each of the 4. analysis and evaluation report of the first phase. corporate heads. Yeasin Ali. Md. Deputy Commissioner of Gaibandha district. Managing Director of the Bank handed over a Payment Order of Tk. SBL donates 130 bundles of GCI sheets to Noakhali district SONALI BANK LIMITED (SBL) donated 130 bundles of GCI sheets worth Tk. SONALI BANK LIMITED is seen distributing blankets among the cold-affected people of Angarpota and Dohogram – the enclaves of Bangladesh. 2005). Tapan Chandra Mazumdar.00.5 Information Technology SONALI BANK LIMITED (SBL) undertakes a project with BASIS (Bangladesh Association of Software and Information Services) to award the best IT uses by Bangladeshi companies. academicians and the IT industry members. Md. Yeasin Ali. 10. 3. representatives from development agencies. SBL and BASIS organized IT award-giving ceremony in this regard. different newspaper on 3rd and 4th of June. 29. 5.00 (ten thousand) each and this will cost totaling Tk. 2007 for victims due to a devastating landslides following torrential rains lashed down in Chittagong city and its adjacent areas. SBL’s contribution in supporting this event was 50% of the estimated cost with Tk. IT policy makers.

motivation.SBL Recognition SBL has received Asian CSR Award-2005 SONALI BANK LIMITED has won Asian CSR Award-2005 for its outstanding program on Corporate Social Responsibility (CSR).Poverty Alleviation Concern for Health FINDINGS AND ANALYSIS Business benefits The scale and nature of the benefits of CSR for an organization can vary depending on the nature of the enterprise. SBL is seen receiving Asian CSR Award-2005 from the Chief Guest. However. retention. While there are different ways to frame the benefits because they are interrelated. they generally include the following: stronger financial performance and profitability through operational efficiency gains improved relations with the investment community and better access to capital enhanced employee relations that yield better results respecting recruitment. SBL has already proved that in Bangladesh. Juwono Sundarsono. and are difficult to quantify. Managing Director. SBL is an organization having a huge number of customers in the local market and very successfully satisfies its stakeholders. and productivity stronger relationships with communities and enhanced licence to operate improved reputation and branding CSR as an Investment Branding Bank and its services. SBL has decided to participate in the category ofEDN. Mr. 2005 in Jakarta SONALI BANK LIMITED has been again nominated for the Asian CSR Awards 2006. the Honorable Minister for Defense. SBL is the number one bank in Bangladesh with respect to CSR activities and has achieved ample growth and success in recent years. Dr.Support and Improvement of Education POV. businesses may not be looking at short-run financial returns when developing their CSR strategy and what exactly SBL follows. Managing potential risks and liabilities more effectively through CSR tools and . Stronger Financial Performance and Profitability Businesses can use CSR and corporate sustainability to produce direct benefits for the bottom line. learning and innovation. the Republic of Indonesia at a ceremony held on September 09. Operational efficiencies can be achieved in other facets of CSR such as streamlining the way that information is provided to the investment community as well as to other stakeholders that demand increased transparency. Not only as a local bank. Yeasin Ali.

To the extent that stakeholder engagement and collaboration involve maintaining an open dialogue. Using corporate responsibility and sustainability approaches within business decision-making can result not only in reduced costs but can also lead to recognizing new market opportunities such as when new branches are opened that can be expanded to other areas. retain employees. and improves their capacity to be more sustainable. An increasing number of mutual funds are now integrating CSR criteria into their selection processes to screen in sounder companies and/or screen out businesses that do not meet certain environmental or social standards. These conditions can serve to help to recruit employees. suppliers. Companies can use stakeholder engagement to internalize society’s needs. Stronger Relations within Communities through Stakeholder Engagement A key feature of CSR involves the way that a company engages. accounting. non-governmental organizations. motivate employees to develop skills. the relationship between the business and the community in which it operates is likely to be more credible and trustworthy. a company’s stock market valuation. Thus.perspectives can also reduce costs. and demonstrating transparency (through measuring. and collaborates with its stakeholders including shareholders. employees. circumstances into their corporate views and decision-making. Improved Relations with the Investment Community and Better Access to Capital The investment community has been exploring the links between corporate social responsibility and financial performance of businesses. and its capacity to access capital from local market. there is a strong argument that CSR can effectively improve a company’s relations with communities and thereby produce some key features that will improve business prospects for its future . regions or markets. and governments. Companies that employ CSR related perspectives and tools tend to be businesses that provide the pre-conditions for increased loyalty and commitment from employees. communities. debt holders. While there are many questions about how far a company’s responsibilities extend into communities relative to the roles of governments and individual citizens. Enhanced Employee Relations. This is a potentially important benefit for companies because it increases their “licence to operate”. reduce absenteeism. and may also translate into marginally less demands for higher wages. a CSR approach by a financial company can improve the stature of the company in the perspective of the investment community. enhances their prospects to be supported over the longer term by the community. This information is being translated into action within the investment community. customers. hopes. and encourage employees to pursue learning to find innovative ways to not only reduce costs but to also spot and take advantage of new opportunities for maximizing benefits. There is growing evidence that companies that embrace the essential qualities of CSR generally outperform their counterparts that do not use features of CSR. Productivity and Innovation A key potential benefit from CSR initiatives involves establishing the conditions that can contribute to increasing the commitment and motivation of employees to become more innovative and productive. and reporting practices). involves. being prepared to form effective partnerships.

community involvement. I have been 8 girl friends I was fired from 14 jobs .73 core for establishing a research center in DU campus by the name of “Sonali Bank Social Science research center. etc. The students and researcher of DU and the country will see it as social contribution of SBL and they will create a buzz marketing and try to campaign SBL’s reputation on effective CSR activities. A Harley Davidson customer…………………………. There are many different areas where a bank can invest to develop CSR attributes (e. Investment decisions on CSR need to take account of various factors and parameters as well as the anticipated cost and benefit stream to be produced by the investment. Brand equity is an unique asset for a business which will be clarified by an example. Buzz marketing later pull customer to SBL and they will fill good image of CSR activities of SBL which will create later a strong brand equity. The bottom line is that a prudent business may tend to regard CSR in the same way it treats most investment decisions. It would be inclined to use the same systematic approach to assess the anticipated benefits and related revenues relative to the costs that it employs for investment proposals. managing.000 students of DU will remember it which will create a positive attitude in the minds of them.” With the activities the 50.g. A rigorous and systematic approach to CSR investment is likely to yield the most positive results for both the business and society as it is likely to demonstrate the most efficient allocation of resources from the perspective of both the firm and society. A Word on CSR as an Investment CSR can be viewed by businesses as a form of investment that helps to differentiate a bank and its products and services.. Now a days brand equity is a unique asset for a business.). health and safety. ” I had been married four times. dealing and enhancing memories. For example SBL donated 9. environmental protection. human resource management. CSR as a concept with various tools can help a company to position itself in the marketplace as a company that is more responsible and more sustainable than its competitors. What then is the right way to look at CSR as an investment – particularly given that it frequently involves intangible and less quantifiable domains. Branding Bank and its services: “A brand is nothing but a set of memories” We are directing. SBL is in the business of managing memories of customer through adopting extra-ordinary innovative CSR activities.Improved Reputation and Branding A potential benefit of CSR is that it can improve a company’s reputation and branding and this in turn improves the prospects for the company to be more effective in the way that it manages communications and marketing in efforts to attract new customers and increase market share.

So with the above seen we see that SBL does so by adopting CSR activities which are fully accorded with their mission and vision. which produces major CSR reports. or interests beyond the enterprise. Examples of companies that have been accused of this motivation include Standard Chartered Bank (SCB). Consumers face so many decisions each day in the market place that brands are an essential convenience to navigating the complexity of life. Disputed business motives Some critics believe that CSR programs are often undertaken in an effort to distract the public from the ethical questions posed by their core operations. Self-interest Some CSR critics argue that the only reason corporations put in place social projects is for the commercial benefit they see in raising their reputation with the . known quantities rather than experiment with new ideas and new products. And in a recession. is subject to much debate and criticism. and the petroleum giant BP.These critics point to the rule of corporate law that prohibits a corporation’s directors from any activity that would reduce profits. Milton Friedman and others argue that there is no place for social responsibility as a business function. brands are even more important because we tend to rely even more on trusted. thus ‘greenwashing’ their image as a socially or environmentally responsible company. Critical analysis CSR is entwined in the strategic planning process of many of our local and multinational banks. enlightened self-interest. which is well-known for its high-profile advertising campaigns on environmental aspects of its operations. Some critics argue that corporations are fundamentally entities responsible for generating a product and/or service to gain profits to satisfy shareholders. a reassurance of consistent quality.I have moved my home 11 times -But I have had only one Harley Davidson “ So for a brand equity a customer can sacrifice everything even four times higher price than other brands even a hard long journey to find the brand. The reasons or drive behind social responsibility towards human and environmental responsibility whether driven by ulterior motives. Other critics argue that the practice cherry-picks the good activities a company is involved with and ignores the others. but comparably do less in developing countries like Bangladesh. So creating a strong brand by adopting effective CSR activities is indispensable. They are doing business in Bangladesh according to there promise which are stated in their mission and vision statement. The global players do much more CSR activities in the developed world. We know A brand is a promise. Still other critics argue that it inhibits free markets or seeks to pre-empt the role of governments in controlling the socially or environmentally damaging effects of corporations’ pursuit of selfinterest.

These critics generally suggest that stronger government and international regulation. while obeying the laws of the countries within which it works. It is about engaging shareholders and other stakeholders and collaborating with them to more effectively manage potential risks and build credibility and trust in society. Companies do not pay the full costs of their impact. who argued that a corporation’s principal purpose is to maximize returns to its shareholders.public or with government. it is about delivering improved shareholder and debt holder value. Failure to invest in these countries decreases the opportunity to increase social welfare. environmental. For example. the costs of cleaning pollution often fall on society in general. are necessary to ensure that companies behave in a socially responsible manner. are unable to advance the interests of society as a whole. providing enhanced goods and services for customers. longevity or infant mortality have been created by economic growth attributed to free enterprise. They point to examples where companies have spent a lot of time promoting CSR policies and commitment to Sustainable Development on the one hand. Investment in less developed countries contributes to the welfare of those societies. Friedman argued that only people can have responsibilities. Other views from this perspective include: Corporations really care little for the welfare of workers or the environment. building trust and . They suggest a number of reasons why selfinterested corporations. rather than voluntary measures. Conclusion Corporate social responsibility is about the integration of social. It is about using innovation to find creative and value-added solutions to societal and environmental challenges. moderate critics suggest that CSR activity is most effective in achieving social or environmental outcomes when there is a direct link to profit. solely seeking to maximize profits. As a result profits of corporations are enhanced at the expense of social or ecological welfare. Critics who believe that CSR runs against capitalism would go further and say that improvements in health. and economic considerations into the decision-making structures and processes of business. Hindrance of free trade These critics are generally supporters of Milton Friedman. whilst damaging revelations about business practices emerge on the other. notwithstanding that these countries have fewer protections in place for workers. This analysis drastically narrows the possible scope of CSR activities. It is about not only complying with the law in a due diligent way but also about taking account of society’s needs and finding more effective ways to satisfy existing and anticipated demands in order to build more sustainable businesses. This approach to CSR requires that the resources applied to CSR activities must have at least as good a return as these resources could generate if applied anywhere else. Ultimately. and given the opportunity will move production to sweatshops in less well-regulated countries.Because of this.

However every player in the industry should adopt and follow or go beyond the current CSR activities. Despite having debate on CSR as a voluntary social welfare or as a marketing tool. So when a bank can touch the inner spirit of the people and can provide standard service. SBL is no doubt emotionally attached with its stakeholders and that is a key success factor for it. Banking is a very much related with relationship management practice with its clients.credibility in the society in which the business operates. . and becoming more sustainable over the longer term. it will more likely to be successful. CSR brings a lot of benefits for a corporation and SBL is a bright example for the local banks.