Corporate and Social Responsibility Issues and

Illustrations

A case study on: Shahjalal Islami Bank

Limited
 Central Women’s University
Department of Business Administration

Submitted to: ASIF-UN-NAHAR

Assistant Professor
Submitted by:
Name: SYEDA MASUMA HOSSAIN
ID: 2021-1-16-005

Date of Submission: 10th of May 2021

 TABLE OF CONTENTS
Theoretical Review.................................................................................................................................. 1
Scenario of CSR in worldwide ................................................................................................................. 3
CSR in Bangladesh ................................................................................................................................... 4
Company Profile...................................................................................................................................... 5
Activities Of CSR performed by Shahjalal Islami Bank ............................................................................ 6
Debate ..................................................................................................................................................... 7
Conclusion ............................................................................................................................................... 8
THEORETICAL REVIEW

Corporate social responsibility is a form of private business where the companies commitment
to handle all of the social, environmental, economic impacts of all its operations responsibly
and also tries to in line with public expectations. Besides that, the main intention of CSR is to
encourage a positive impact through its activities on the environment, consumers, stakeholders,
employees and many other members who are involved in the public sphere.

Corporate social responsibility of Shahjalal Islami Bank Ltd has been considering
responsibilities towards the customers, society, community and shareholders as well. The
foundation of Shahjalal Islami Bank ensures the regulatory compliance to utilize the funds for
Corporate Social Responsibility and in addition to perfectly maintain the fund of zakah.

Moreover, CSR helps to reduce the production cost as less packaging is being made through
practicing CSR.

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There are several kinds of CSR which refers some importance individually. But among them
the main three types of CSR are environmental responsibility, ethical responsibility and human
rights responsibility. The importance and definition of all these three types of CSR are
discussed below:

a) Environmental Corporate Social Responsibility:

Environmental CSR goal is to minimize any kind of damaging effects on the environment from
the business processes. This kind of CSR mainly concerns on some activities like the energy
use, recycling, waste management and so on.

b) Ethical Corporate Social Responsibility:

In the activities of an ethical social responsibility it is the duty of the organization to give proper
respect to the stakeholder rights and to invent a better framework for the development of
employees, owners and managers, suppliers’ evolution strategies and also providing
environmental protection.

In other words, ethical corporate social responsibility is only based on potential relationship
between rights and ethical responsibilities in order to achieve legitimacy.

c) Human Rights Corporate Social Responsibility:

Human rights are connected to the economic and environmental aspects of corporate activity.
Environmental aspects of corporate activity might make some difference on a range of human
rights, such as the right to clean drinking water.

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SCENARIO OF CSR IN WORLDWIDE

CSR movement and initiatives have been emerged into several developing countries those are
China, India, Brazil, South Africa and many more countries.

The world of global corporate social responsibility is growing and changing day by day. There
is a healthy positive correlation between CSR and the employment engagement. The team of
'Human resources management' conducted a resource which compares the company with a
strong sustainability initiatives with those having weaker programs and the outcome shows that
in companies with stronger sustainability company morale was 55% better, along with this the
business processes were 43%more efficient, the image of company was 43%stronger and the
loyalty of employ were also 38% better than before.

Corporate social responsibility is a business approach which is used to some sustainable

development by sending social, environmental and economic benefits.

As a result, CSR helps in making relationships with customers and clients. In other words, it
helps the business or company to get engaged with customers.

Furthermore, the use of CSR can also help to engage with the customers in some new way. As
it leaves a message of something 'good'. Therefore, it can be an easier way to get connected or
interacted with customers or clients. Moreover, by creating this kind of good relationship with
the customers and clients results into potential increase in sales margin and rising profits as
well.

According to some earlier report it is found that social responsibility can be a practice resulting
in consequences, arguing that it might lead to green washing.

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CSR IN BANGLADESH

Bangladesh is a developing country and the economy growth of the country is growing rapidly
from with an annual growth of percentage from 5-7% around. Although the country is
proceeding towards a free market economy neither the government nor the private initiatives
have been sufficient to promote good corporate governance which are leading to an acceptable
level of corporate social responsibility.

Being a member of the global economy, Bangladesh is also aware of the requirement to take
the positive initiatives to prepare an environmentally and socially responsible business.

The way in which CSR is growing is now visualized as a strategic tool for gaining and
maintaining sustainable advantage in the rapidly changing marketplace. There is also a
possibility of arising opportunities when various businesses organizations pick a policy of
corporate social responsibility in Bangladesh.

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COMPANY PROFILE

Shahjalal Islami Bank Limited

Type Public limited company

Industry Banking

Founded Dhaka, Bangladesh

Headquarters Corporate Head Office Shahjalal Islami Bank Tower Plot No: 4,
CWN(C) Gulshan Avenue, Dhaka-1212 Bangladesh
Products Banking services
Consumer Banking
Corporate Banking
Investment Banking

Number of employees 2,156

Commencement of business 10 of May 2001

Revenue 103,483

Net income 22,136

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ACTIVITIES OF CSR PERFORMED BY SHAHJALAL

ISLAMI BANK

The corporate social responsibility activities which Shahjalal Islami Bank is currently doing
are summarized below:

1) Donations to the hospitals which are running as an non-profit making organizations.

2) Tree plantation program arranged by banks 10 branches separately in the year of 2013.

3) House repair in cyclone was also done by the bank (last in Brahmanbaria natural disaster
affected areas), flood affected areas and many more.

4) Blank distribution and cash contribution to prime ministers’ fund to assist in both of the
national and international disasters which was remarkably done during Rana Plaza disaster,
Nepal's huge earthquake, Rohingya aid and so on.

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DEBATE

CSR is curse or blessing? Justify the statement.

By practicing corporate social responsibility (CSR) we are able to do some public and social
welfare. In other words, through CSR we are getting involved into several types of social
activities. We are also capable to increase our brand image. Therefore, from that perspective
we can call CSR as a blessing.

On the other hand, there are some business critics who thinks that CSR is not a blessing because
they assume that we do CSR only to show the people around the world or for publicity rather
than helping the people of the society. They also think we do it on to build up our image
publicly. At the end of the day, it is always observed that in onscreen we are helping poor
people by donating foods and clothes, repairing houses due to cyclone and earthquakes. But in
reality, we are giving harmful products to the consumers, doing fraud to our employees. As
such from that point of view we are engaged with so many negative work and for this reason
CSR is named as a curse.

CSR helps to create motivated employees. As per our business experience we all know that
employees are the most valuable asset of a company with regards to the CSR compliance also.
This means treating well with the employees and giving respect, keeping good working
conditions helps to improve the teamwork. By following these activities business performance
also becomes good.

CSR activities can lead to imposing inappropriate standards which might later constrain the
creation of value in the business. Hence, this will further lead to failures and job losses also.

Through participating in various kind of social activities the employees will feel empowered
to start contributing bigger picture. They might come up with some new and different ideology
about the products or may innovate new problem-solving solutions. In this way, it shows the
CSR helps in increasing creativity.

CSR brings inefficiency in the system. There is no replacement for the power of self-interest
to get people to act.

CSR requires the corporations to set interests of the people into consideration which may result
a conflict into the business objectives of the corporation while making important decisions for
the business.

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CONCLUSION

Corporate social responsibility mainly encourages business accountability to a broad range of

stakeholders, consumers, shareholders and investors. The special key points which CSR is
concerned about are the well-being of people around the society, environmental protection etc.
CSR has so many policies which includes providing good products to the consumers and
minimizing the quantity of harmful waste.

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