Internship Report On Corporate Social Re

CSR Activities of Private Commercial Banks in Bangladesh: A Study on DBBL
1.1. Introduction
Corporate Social Responsibility has been defined as “the integration of business

operations and values whereby the interests of all stakeholders, including customer,
employees, investors and the environment are reflected in the organization’ policies and
actions”. Corporate Social Responsibility also called corporate conscience, citizenship,
social performance, or sustainable responsible business, is a form of corporate self
regulation integrated into a business model. Corporate social responsibility (hereafter
CSR) has become an important center of concentration among companies. A recent
global survey shows that 76% of managers believe that corporate social responsibility
contributes positively to long-term shareholder value, and 55% of them agree that
sustainability helps their companies build a strong reputation. Nowadays most of the
multinational companies also have a senior manager explicitly charged with developing
and coordinating the CSR function.
A successful CSR program cannot be achieved individually. CSR includes the

participation of the society, nature and ethics in making strategy that can improve the
competitive position of a company. CSR takes care of the interest of all stakeholders
rather than that of the stockholders only. By incurring CSR expenditure, a firm can
strengthen its competitiveness, counter the risk of losing the existing market shares and
establish its presence in emerging ones. Instead of thinking CSR as a regulatory or
discretionary cost, business executives across the globe are starting to see it as an
investment that brings long-term benefits for the company. The impacts of CSR are
pervasive. CSR significantly improves business house reputation and confidence of
customers and business partners, and motivates the employees to work for a company
they could feel proud of.
Social responsibility is a concept well known in the corporate world and beyond that. All
over the world have practiced only profit making actions at past but not for long as the
enterprise started to develop complexities and wideness in size and actions so was their
reach getting bigger and bigger. As every person has his own social responsibilities
towards the society so does the business firms. The idea is that, the business has social
obligations and above and beyond making a profit that is corporate social responsibility.
However, it is regretful that though internationally it is being practiced widely,
Bangladesh is still lagging behind. The difference between the world standard and the
practice in Bangladesh shows the lacking here and the scope for development. This report
has been prepared as a requirement of the Project work. The report was based upon the
CSR practices of Dutch-Bangla Bank Limited in Bangladesh. CSR is a means of
discussing the extent of any obligations a business has to its immediate society; a way of
proposing policy ideas on how those obligations can be met; as well as a tool by which
the benefits to a business for meeting those obligations can be identified.
Department of Accounting and Information Systems, Comilla University. Page 1

1.2. Origin of the Study

This report on “Corporate Social Responsibility-A Case Study on Dutch-Bangla Bank
Ltd.” is initiated as a part of' the Internship Program which is required as a student of
Bachelor of Business Administration to conduct a practical orientation in any
organization. For fulfilling the requirements I have done the 90 days internship Program
at the Dutch-Bangla Bank Ltd, Jhawtala SME/Agriculture Branch, Comilla. The report is
generated under the supervision of Mr. Tarik Hossain, Assistant Professor, Department of
Accounting and Information Systems, Comilla University.
1.3. Objectives of the Study
There are two main objectives behind this report. The primary objective of this report is
to use the theoretical concept gained in the classroom situations with the real life
scenarios. This is also a partial requirement of the BBA program to fulfill. The objective
is basically met by remaining attached with a reputed organization and by gaining some
real life experiences, so that it adds value to the knowledge base of me. In case of this
report, the objectives are:
1.3.1. Specific Objective
1. To find out the CSR practice of banking sector in Bangladesh.
1.3.2. Secondary Objective
1. To get a broader overview of Corporate Social Responsibility.

2. To get the importance of CSR from an organization’s point of view.
3. To identify the CSR activities served by Dutch-bangle bank Ltd.
4. To compare the DBBL CSR activities with another bank.
5. To get familiarity with the banking activities and environment.
6. To critically synchronize the result of the performance or profit after practicing
CSR of DBBL.
7. To recommend some necessary steps to boost CSR activities and their reporting.
1.4. Research Methodology

Research is a systematic method of finding solutions to problems. It is essentially an
investigation, a recording and an analysis of evidence for the purpose of gaining
knowledge.
Research comprises of defining and redefining problem, formulating hypothesis or

suggested solutions, collecting, organizing and evaluating data, reaching conclusions,
testing conclusions to determine whether they fit the formulated hypothesis.

The study uses two types of method in case of data collections, one is qualitative method
and another is quantitative method. Qualitative method indicate that data would not be
presented in terms of money, which means all kind of theoretical practices of CSR in
DBBL would be presented here. And Quantitative method indicate that data would be
presented in terms of money, which means all kind of money related practical practices of
CSR in DBBL would also be discussed here.
1.4.1. Methods of Data Collection

In order to make the study more meaningful and presentable, two sources of data and
information will be used widely. The sources of data are:
1.4.1.1. Primary Sources:
 Some primary data are collected by questionnaire.

 Some data are collected from officials and some data are collected from
client(by questionnaire).
 Face-to-face conversation with the respective officials.
 Informal conversation with the Client.
 Practical work experience on different desks of the unit.
 Relevant file study as provided by the officers concerned.
1.4.1.2. Secondary Sources:
 Annual reports of Different Banks 2010,2011,2012,2013.

 Periodical publications by DBBL.
 Different books, training papers, manuals, Newspapers and Journals.
 Bangladesh Bank Annual Report-2012 and website of Bangladesh Bank.
 Article published by DBBL.
1.5. Limitations of the Study

There are some limitations that I have faced in preparing this report. Basically I faced
difficulties in collecting data from the different sources. To collect primary data some
individual showed no interest in interviewing them. For secondary data, I faced problem
of unorganized record of documents keeping by different sources. Preparing the report I
faced some difficulties which are:
 Time will be a major constraint in accumulating all sorts of information in an

organized way.
 Scope of our study is so wide that analytical and comprehensive study is not
possible.
 Acquiring the absolute raw information will be a difficult and large-scale research
will not be possible due to constraints and restrictions of both time period and by
the organization as well.

 The information sources regarding this study are not so much large. It would be
more correct if the study conduct with large information sources.
 As the data, in most cases, are not in organized way, the bank failed to provide all
information.

2.1. Theoretical Background

A Theoretical Background is a clear and logical presentation of the relevant research
work done before in the same area of investigation and the documentation of a
comprehensive review of the published and unpublished work from secondary sources of
data in the areas of specific interest to the researcher.
2.1.1. Published works on CSR
CSR is defined in many ways and no universally accepted definition is in place, however,
the scope of CSR in corporate board rooms to be management ranks have pervaded and
continue to gain momentum. Hill (2006) Explained that CSR is a set of practices that
form a part of good management or business practices much of it is about transparency
and disclosure. Many organizations find that in actuality they already do much of what is
considered “CSR” but often do not have formalized systems to report on those activities.
Further CSR should not be viewed as an add – on activity as it is a concept of good
practice that cuts across an organization (e.g. in HR, Purchasing, Customer Services etc.).
Corporate social responsibility as a construct that ‘‘...encompasses the economic, legal,

ethical, and discretionary expectations that society has of organizations at a given point in
time.’’ Carroll (1979). In his definition, Carroll argued that these responsibilities are not
only performed for the firm’s sake but also for the sake of society at large. This means
that organizations by their very existence can be viewed as entering into a social contract
that obligates the corporation to take the interests of society into consideration when
making decisions (Andreasen and Drumwright, 2001).
Many firms seek to ensure that their employees feel attached to their organization in order
to ensure a low turnover rate. Toward this end, a good corporate social responsibility
(CSR) reputation can generate positive attention from both current and prospective
employees (Turban & Greening, 1996). Hussain and Hussain (2005) provided a
constructive picture between consumer’s perception and organization’s spending pattern
on different CSR activities. They also figured out whether consumers expect to
incorporate only brand name, or only company name or both brand and company name
while organizing CSR activities.
The construct CSR has four intimately related facets – economic, legal, ethical and
philanthropic – with organizations striving to achieve all four at all times. Based on these
components, a socially responsible firm ‘‘should strive to make a profit, obey the law, be
ethical, and be a good corporate citizen’’ (Carroll, 1991). In 1979 he offered a conceptual
model that comprehensively describes essential aspects of corporate social performance.
He addressed three aspects of the model major questions of concern to academics and
managers alike: (1) what is included in corporate social responsibility? (2) What are the
social issues the organization must address? And (3) what is the organization's philosophy

or mode of social responsiveness? Mohr, Webb and Harris (2001) viewed corporate
social responsibility as a company’s commitment to minimizing eliminating any harmful
effects on society and maximizing its long term beneficial impact.
A compelling argument behind why firms are motivated to invest in CSR programs
comes from the domain of stakeholder theory (Argandona, 1998). Stakeholder theory
suggests that organizational survival and success is contingent on satisfying both its
economic (e.g. profit maximization) and non-economic (e.g. corporate social
performance) objectives by meeting the needs of the company’s various stakeholders.
Chowdhury (2004) believes that, as a part of corporate governance. Corporate governance

refers to the system of structures, rights, duties, and obligations by which corporations are
directed and controlled. The governance structure specifies the distribution of rights and
responsibilities among different participants in the corporation (such as the board of
directors, managers, shareholders, creditors, auditors, regulators, and other stakeholders)
and specifies the rules and procedures for making decisions in corporate affairs.
Governance provides the structure through which corporations set and pursue their
objectives, while reflecting the context of the social, regulatory and market environment.
Governance is a mechanism for monitoring the actions, policies and decisions of
corporations. Governance involves the alignment of interests among the stakeholders.
Corporate governance and monitoring is an important control device. The independent
roles of nonexecutive directors in a society are dependent on economic, socio – political
and cultural factors of that society. Asia particularly china, Japan, India, Bangladesh,
Malaysia and Indonesia is characterized by collectivism and paternalism where there is
high loyalty to senior people and juniors and subordinates obey seniors’ wishes and
desires.
Three major themes in research on corporate social responsibility (CSR) of particular

interest
Identified by Zahra (1987); however, is the potential link between CSR and
organizational effectiveness (OE). Data collected from 410 college graduate and
undergraduate students were used to examine that relationship. Using factor analysis,
eight dimensions of CSR and three components of OE were extracted. They performed
Canonical analysis. The result supports the proposition that specific CSR practices affect
select OE outcomes.
McGuire (1988) Using Fortune magazine's ratings of corporate reputations analyzed the
relationships between perceptions of firms' corporate social responsibility and measures
of their financial performance. They found a firm's prior performance, assessed by both
stock-market returns and accounting-based measures, was more closely related to
corporate social responsibility than was subsequent performance. Measures of risk were
more closely associated with social responsibility than previous studies had suggested.

Wartick and Cochran (1985) traced the evolution of the corporate social performance
model by focusing on three challenges to the concept of corporate social responsibility:
economic responsibility, public responsibility, and social responsiveness. They also
examined social issues management as a dimension of corporate social performance.
Their research concluded that the corporate social performance model is valuable for
business and society study and that it provides the beginnings of a paradigm for the field.
Conceptual Framework
2.2. The origin of CSR
The history of CSR is almost as long as that of companies. Concerns about the excesses
of the East India Company were commonly expressed in the seventeenth century. There
has been a tradition of benevolent capitalism in the UK for over 150 years. Quakers, such
as Barclays and Cadbury, as well as socialists, such as Engel’s and Morris, experimented
with socially responsible and values-based forms of business. And Victorian philanthropy
could be said to be responsible for considerable portions of the urban landscape of older
town centers today.
In terms of activism aimed at companies perceived as acting against the general interest:
The first large-scale consumer boycott? England, in the 1790s over slave harvested sugar.
(It succeeded in forcing the importer to switch to free-labor sources.)In 1612, English
jurist Edward Coke complained that corporations “cannot commit treason, nor be
outlawed or excommunicated, for they have no souls.”
2.3. Definitional Analysis of CSR

Corporate social responsibility (CSR), also called corporate responsibility, corporate
citizenship, responsible business and corporate social opportunity is a concept whereby
organizations consider the interests of society by taking responsibility for the impact of
their activities on customers, suppliers, employees, shareholders, communities and other
stakeholders, as well as the environment. This obligation is seen to extend beyond the
statutory obligation to comply with legislation and sees organizations voluntarily taking
further steps to improve the quality of life for employees and their families as well as for
the local community and society at large.
2.4. Concept of CSR

Definitely social responsibility includes the responsibility of social people, groups,
societies, and business organization. Here raises the question: why is there more interest
in, and debate about the social responsibility of business than about the social

responsibility of the other institutions? It is of course legitimate to raise the issue of social
responsibility of business. But we hear rather less about the social responsibility of, say,
the churches, the media, trade unions, the professions, universities, or even the
government. When people collectively organize themselves in organizations of one kind
or another, do those impersonal legal entities really acquire social responsibilities, which
differ from those of other collective entities? Many people are uneasy about the profit
motive, suspecting that profits emerge only from exploitation. They fear that free
enterprise encourages greed and selfishness. They are reluctant to accept the logic of
Adam Smith’s famous theory of invisible hand, which holds that business people the
general interest more effectively by pursuing their own interests than by directly trying to
‘do good’. I suggest that, this is why we are here little about the social responsibilities of
churches, charities and so on. Business, in contrast, is assumed to have a problem about
its social responsibilities because it is driven by profit-motives. So it can be said that,
Corporate Social Responsibility (CSR) means that companies integrate social and
environmental concerns in their business operations and in their interaction with business
relevant groups on a voluntary basis. In general, CSR is characterized by the following
aspects:
 Voluntary initiatives going beyond legislative requirements and contractual

obligations.
 Activities to benefit the employees, business relevant groups (including the
society as such) or the environment
 With a positive contribution to the individual target group while minimizing
negative effects on other (including environment)
 Regular activities rather than one-time-events (i.e. related to business strategy vs.
ad hoc) CSR is not only about fulfilling a duty to society; it should also bring
competitive advantage. Through an effective CSR program, companies can:
 Improve access to capital

 Sharpen decision-making and reduce risk
 Enhance brand image
 Uncover previously hidden commercial opportunities, including
new markets
 Reduce costs
 Attract, retain and motivate employees.
2.5. Views of Social Responsibility

There are two views of social responsibility. Those are:
 The Classical View

 The Socio economic view

2.5.1. The Classical View

The view that management’s only responsibility is to maximize profits.
2.5.2. The Socio economic view

This is the modern views of today’s global business and economy. In this view
management’s social responsibility goes beyond making profit to include protecting and
improving society’s welfare.
2.6. Importance of CSR

The business grew rapidly. In the initial growth phase of a business, the natural emphasis
and attention is on developing from a financial perspective. As a business matures there
becomes a greater responsibility to give back to employees, clients and the wider
community. This is an ethos which has been prevalent throughout our business: a desire
to make a difference and so early on we made the important decision to execute an
extensive corporate social responsibility (CSR) programmed. CSR is an important way to
increase a business’ competitive advantage, protect and raise brand awareness and build
trust with customers and employees. Maintaining this trust isn’t simple and is something
which can easily be damaged or lost. To be successful in the long-term, companies need
to think beyond what’s affecting them today and start focusing on what’s going to happen
tomorrow. This isn’t just about addressing changes to technology or the needs of the
customers, but also taking into account changes in social, environmental and governance
issues.
Corporate Social Responsibility: People, Planet and Profit
It is important to understand the legislative, policy and institutional frameworks that

govern contemporary CSR practices and programmes, and how concepts like the Triple
Bottom Line – understood in the context of People, Planet, Profit (Social, Environmental,
Financial measures) – can benefit the organization and the environment in which the
company conducts its business.
Previously, the terms CSR were used interchangeably. Subsequently, with the change of
the corporate and Broad–Based Black Economic Empowerment landscapes, these terms
have been defined separately. Corporate Social Investment is a sub-component of
Corporate Social Responsibility.
CSR Standards and Practices
ISO 26000 is the recognized international standard body for CSR. The ISO 26000
standards benefit CSR because they provide clarity on an organization’s concepts, terms
and definitions related to social responsibility. ISO 26000 intends to assist organizations
in contributing to sustainable development. The standards provide insight into trends and

characteristics of social responsibility. ISO 26000 therefore aims to integrate, implement

and promote socially responsible behavior throughout the organization and in its
engagement with its stakeholders.
It is important for businesses not only to provide products and services to satisfy the
customer, but also to ensure that the business is not harmful to the environment in which
it operates. In order for an organization to be successful, the business must be built on
ethical practices. Companies are increasingly pressurized to behave ethically. This
pressure comes from customers, consumers, governments, associations and the public at
large. ISO 26000 was created with this in mind, to provide guidance on the international
standards on CSR. It is intended for organizations in both public and private sectors, in
developed and developing countries.
These standards motivate businesses to go beyond legal compliance, recognizing that

compliance with the law is a fundamental duty of any organization and an essential part
of their social responsibility. Being trustworthy and transparent, however, increases
consumers’ preference for a company and its product or service.
The King Report on Corporate Governance (South Africa 2009 – King III) promotes
good social and environmental practices as part of good corporate governance. It is
closely aligned with the standards for international corporate governance. The JSE
(Johannesburg Stock Exchange) Securities Exchange prescribes compliance with King III
for listed companies.
CSR focuses on achieving economic success through responsible corporate governance in

a company’s core area of business. CSR pushes organizations to do better because their
actions affect customers, suppliers, employees, shareholders and the community at large.
Partnerships with the communities, particularly those that have been disadvantaged, can
help companies build productive relationships and stimulate economic growth in
disadvantaged areas.
Around the world, companies are motivated to make their business decisions more
sustainable by applying the principles of CSR within their organizations. Examples
include the protection of human rights, drawing up and implementing employment and
environmental standards, and minimizing corruption.
2.7. Roles of CSR

CSR is the way that businesses manage the economic, social and environmental impacts
of their operations into their values, culture, strategy and operations to maximize the
benefits and minimize the downsides. It is driven by both Government looking for

businesses to make positive contributions and the costs and benefits of the business and
may involve new approaches in their activities of:
 governance;
 ethics;
 health and safety;
 environment;
 human rights, labor, culture, minorities;
 sustainability;
 accountability;
 Customer satisfaction.
An effective approach to CSR can enhance brand and company reputation by improving
efficiency, reducing the risk of business disruptions, and open up new opportunities
driving innovation.
2.7.1. Common roles of CSR in Community Development

CSR has implications on community and CD in many ways. The common roles of CSR in
CD are discussed as follows:
 To share the negative consequences as a result of

industrialization:
This is related to increasing conscience-focused marketplaces necessitating more ethical
business processes. By doing so, small vehicle owners share less the tax burden, hence
could re-channel the money for more productive uses in the community.
 Closer ties between corporations and community:

Through CSR the existence of corporations in the social system is felt beyond a
perception that corporation is a place just to get employment and producers of goods and
services. By doing so, corporations and community would stay in peace and harmony.
This becomes a social capital that is essential in community development.
 Helping to get talents:

Organizations with a reputation for CSR can take advantage of their status and strengthen
their appeal as an attractive employer by making their commitment part of their value
proposition for potential candidates. It is also found that when employees view their
organization's commitment to socially responsible behavior more favorably, they also
tend to have more positive attitudes in other areas that correlate with better performance.
They believe their organizations recognize and reward great customer service, act quickly

to address and resolve customer concerns, and are led by people in senior management
who act in the best interest of customers.
Confidence in senior management is higher in other areas, too, when employees give their
company high marks for being socially responsible. For example, if a large number of
employees perceive that their organization's senior management supports new ideas and
new ways of doing things, this would result on better perception of employees to the
organization, hence their trust and loyalty to the organization. There is a correlation
between a company's success in the market place is often influenced by its capacity for
innovation, the perception of the employees to the organization. It is also a factor in
attracting and retaining talents. In relating to CD, good employees’ perceptions on a
corporation would lead to the community that treats the corporation as an important
economic asset in the community.
 Role in transfer of technology (TOT):

Closer ties help in TOT between MNCs that give concerns on CSR and communities in
the host countries. MNC is a corporation that has its facilities and other assets in at least
one country other than its home country. Such companies have offices and/or factories in
different countries and usually have a centralized head office where they coordinate
global management. Very large multinationals have budgets that exceed those of many
small countries. Barton (2007) focuses on three mechanisms of international technology
transfer: the flow of human resources; the flow of public-sector technology support; and
the flow of private technology from MNCs to developing countries. He argues for greater
mobility within, and globalization of, the world’s scientific enterprise and reasserts an
economic rationale for investing in public-sector research in the developing countries.
Through TOT coupled with CSR processes, the targeted community would gain in the
various aspects of product development and marketing, such as better price and quality,
as well as concern for people’s wellbeing.
 CSR helps to protect environment:

Some of the world's largest companies have made a highly visible commitment to CSR,
for example, with initiatives aimed at reducing their environmental footprint. These
companies take the view that financial and environmental performance can work together
to drive company growth and social reputation. This attitude can only serve to enhance
the employment value proposition such as interest in "going green" gains traction
(Towers Perrin, 2009). “We green the earth” slogan made by some MNCs in Malaysia
who own large golf areas within the vicinity of residential areas is another CSR initiative
seems to protect environment. Many non-profit organizations have been involved in
learning and advocacy of environmental protection of CSR such as those reported by the
United Nations. They are for example a) “Friends of the Earth” who highlights the
environmental impact of some MNCs and campaign for stronger laws on environmental
responsibility; b) “Green Peace mission” is another example of CSR initiative that gives

benefit to society and community in preserving the latter’s rights towards reaping healthy
environment (Wikipedia, 2009).
 CSR is for human right corporate sustainability:

The United Nations have launched the “Global Compact” – an initiative to convince
international companies to commit themselves to universal principles in relation to
protection of human rights (UN Global Compact, 2009). Being the world's largest
voluntary corporate responsibility initiative, the UN Global Compact is also seen a
strategic policy for businesses that are committed to aligning their operations and
strategies within the areas of human rights, labor, and environment. By doing so,
business, as a primary agent driving globalization, can help ensure that markets,
commerce, technology and finance advance in ways that benefit economies and societies
everywhere. Never before have had the objectives of the international community and the
business world been so aligned. Common goals, such as building markets, combating
corruption, safeguarding the environment and ensuring social inclusion, have resulted in
unprecedented partnerships and openness among business, government, civil society,
labor and the United Nations. This ever-increasing understanding is reflected in the
growth of the Global Compact, which today stands as the largest corporate citizenship
and sustainability initiative in the world -- with over 4700 corporate participants and
stakeholders from over 130 countries.
 Interdependency between a corporation and community:

The close link between a corporation and community is another aspect of CSR role in CD
because in long run it creates sustainable development. This could be seen e.g. Shell
Foundation involvement in the Flower Valley in South Africa and Marks and Spencer in
Africa. The CSR projects give aids to local organization and impoverished communities.
This certainly leads to sustainable community development (Wikipedia, 2009).
 A CSR program can be seen as an aid to alleviate poverty:

An example is a Malaysian reality program Bersamamu of TV3 which is sponsored by
Syarikat Faiza Sendirian Berhad (SFSB), a local enterprise-cum-philanthropist who
responds to government’s appeal to help impoverished community to improve their
livelihoods (SFSB, 2009). SFSB gets help from the local media company TV3 for
publicity and audience support. This TV program is focused on the life reality of the poor,
helpless and misfortune people in their survival. Every purchase of Faiza's Product, will
entitle the buyer to make a donation to Tabung Bersamamu TV3 (a fund of the
broadcasting agency). Through this collaboration it may trigger other corporations to help
the nation in its effort to alleviate poverty and, hence, in developing communities.

 A CSR program helps in data gathering for other public

organization function:
For instance in the United States, Intel and IBM (examples of mega ICT firms) assisted
under-staffed police departments with information gathering and processing by installing
cameras with video processing abilities in areas where there are high rates of crimes. Intel
has also conducted initiatives to educate local communities on how they can use
technology to prevent crime or at least to use it to detect who committed the crime
(CSR@Intel, 2009). This is an example of technology companies implement CSR
initiatives that both benefit community and support business objectives.
 For corporate sustainability goals:

In Europe and elsewhere outside the U.S., companies have been taking their social role
seriously for years, often under the banner of corporate sustainability. The EU has
developed a corporate sustainability framework, which identifies a progressive set of
economic, social and environmental objectives that companies are encouraged to achieve.
At Towers Perrin (2009), for instance, they have developed a methodology to assess the
employee perspective on sustainable business practices (SBP). These practices represent a
continuing commitment by a company to behave ethically and contribute to economic
development while improving the quality of life of its workforce and family members, as
well as the local community and society at large. Towers Perrin's SBP index specifically
covers five areas: awareness and perceived importance among employees, employee
sustainable behaviors, social and community performance, environmental performance,
and ethical and legal performance.
2.8. Three Dimensional Aspects of CSR
The purpose of corporate social responsibility (CSR) is to make corporate business

activity and corporate culture sustainable in three aspects:
Economic aspects.
Social aspects.
Environmental and Ecological aspects.
Economic aspects of CSR

The economic aspects of CSR consist of understanding the economic impacts of the
company’s operations. Economic issues have long been overlooked in the discussion on
corporate social responsibility. For many years, the aspect has been widely assumed to be
well managed. However, it is actually the least understood by many of those shaping the
corporate and public policy agendas, and underrepresented the corporate responsibility

agenda. The economic aspects of CSR is often mistakenly considered to be synonymous

with financial issues, which is why it has been assumed easier to implement than the other
two pillars of the temple. However, the economic responsibility is not simply a matter of
companies being financially accountable, recording employment figures and debts in their
latest corporate responsibility report. The economic dimension of the sustainability
agenda should rather consider the direct and indirect economic impacts that the
organization’s operations have on the surrounding community and on the company’s
stakeholders. That is what makes up corporate economic responsibility.
i. The Multiplier Effect

The economic performance of a company has direct and indirect impacts on all of its
stakeholders – including its employees, local governments, non-profit organizations,
customers, suppliers, and the communities in which the companies operates. For example:
a good economic performance makes it possible to develop operations for the long term
and to invest in development and the well-being of employees. The employees of the
company get good salaries, from which they purchase goods and services as well as pay
taxes. These activities fuel the local service industry, government programs and the
community activities. This multiplier effect becomes all the more important if the
company is one of the largest employers in the communities.
ii. Contribution through taxes

Companies are major contributors to the well-being of the area surrounding their
operations, for example through the local tax base. Therefore, the question arises: is it
responsible for a business to see corporate taxes purely as to cost be avoided, rather than
part of their social contract with society? Taxes have a significant impact on the creation
and distribution of wealth: tax avoidance, though perfectly legal, deprives the community
in the area of the company’s operation of well-being.
iii. Avoiding Actions that Damage Trust

A company’s license to operate depends upon the trust and support of the local
communities where it operates. The shift in power from the public the private sector
emphasizes the importance of this trust – and the obligations and responsibilities that
come with it. Some company activities are potentially very destructive to the trust earned
from the community or otherwise cannot be regarded as economically responsible. These
should be avoided or at least carefully considered. Example of such harmful company
behavior include: bribery and corruption, tax avoidance: and concentration of rewards and
incentives of the company’s performance to few individuals only instead of fairer
distribution among the personnel. The company should also stop to consider the
economic effects of changes in locations and/or operations to the community.

Social Aspects of CSR

Social responsibility is the newest of the three dimensions of corporate social
responsibility and it is getting more attention than it has previously had. Many
organizations are becoming increasingly active in addressing social concerns social
responsibility means being accountable for the social effects the company has on people -
even indirectly. This includes the people within the company, in the supply chain of the
company, in the community the company is in and as customers of the company which
means the whole lot of stakeholder. It refers to the management’s obligation to make
choices and take actions that will contribute to the well fare and interests of society as
well as those of the organization. The following aspects have been found to be key the
social aspects of CSR for an organization:
i. Responsibility towards Customers

The idea of treating customers with respect and attention is not new to business: often
being responsible to customers has a direct positive effect on the company’s profits.
There are, however, broader social responsibilities including providing good value for
money. These responsibilities may include such issues as the safety and durability of
products or services; standard or after sales service; prompt and courteous attention to
queries and complaints; adequate supply of products or services; fair standards of
advertising and trading; and full and unambiguous information to potential customers.
ii. Responsibility towards Employees

Businesses are major contributors to the employment generation of the community.
However, social responsibility to employees extends beyond terms and conditions of the
formal contract of employment. Companies need to come up with wider expectations that
today’s employees have for the quality of their working life. Such expectations include
taking care of the personnel’s welfare and safety at work and upholding their skills and
motivation for the work. Beyond these expectations, a socially responsible company
secures a just treatment and equal opportunities for all its employees, regardless of
gender, age, race, or religion.
iii. Responsibility towards the Community

Companies depend on the health, stability, and prosperity of the communities in which
they operate. Often majority of the company’s employees and customers come from the
surroundings area – especially so for SME’s. The reputation of a company at it s location,
its image as an employer and producer, but also as an actor in the local scene, certainly
influences its competitiveness. Many companies become involved in community causes,
for example by providing additional vocational training places, recruiting socially
excluded people, sponsoring local sports and cultural events, and through partnerships
with communities or donations to charitable activities.

Environmental and Ecological aspects of CSR

Environmental concern and sustainable development is a key pillar of the corporate social
responsibility. Environmental and ecological issues have been an important topic of
discussion for the past thirty years in the business world – the longest time of the three
dimensions corporate social responsibility. The knowledge and issues within the
dimensions have progressed across a landscape of changing business realities.
Environmental aspects put in place in the 1970s with the first real understanding of the
environmental impacts of business. Now, in the 21st century, we are faced with new
challenges.
i. Environmental Impact
Corporate activity may have many types of effect s on the environment. Usually
environmental impact refers to the negative effects occurring in the surrounding natural
environmental due to business operations. Such impacts may include: overuse of natural,
non-renewable resources of energy, pollution wastage, degeneration of biodiversity,
climate change, deforestation etc. Since many business – related environmental problem
transcend national boundaries, most companies s are thus actors in global environment.
To obey CSR in case of environmental aspects corporations can take the following steps:
 Measuring Environmental Impact: Environmental impacts can be

measured in several ways through environmentally extended input-output tables,
material input per service unit (MIPS) calculations, ecological footprint and life
cycle assessment, to name a few. Ecological footprint measures the amount of
nature’s resources consumed in a given year, and compares it to the resources
available in the world. Life cycle assessment (LCA or eco-balance) is used to
assess the environmental performance of a product from raw materials in the
beginning of the production process all the way to disposal at the end of use. The
MIPS value is calculated by dividing the amount of material the product or service
causes to move – e.g. the amount of earth moved in mining , not just the metal
used – during its entire life – span by the amount of benefits and value its brings.
 Environmental Management: To truly commit to its environmental

responsibilities a company should change its traditional modes operation towards
a more environmentally oriented one. The environmentally more responsible
perspective could include such issues as an emphasis on increased resource
productivity, cleaner production and active dialogue with the company’s
stakeholders. Many businesses have found that establishing an environmental
management system is the best basis for good environmental performance.
Quality, health and safety issues can also be integrated into the same management
system.

ii. The Win-Win of Environmental Responsibility

Several individual companies have found that improving environmental performance may
also have beneficial effects on the company itself. Using less material and streamlining
processes to create less waste may lower the costs of operation significantly. Moreover,
the close review of operations, which is needed to improve the environmental
performance, may reveal other improvement points, such as risk and material loss. A
responsible public image may also attract more customers. These kinds of improvements
as well as the investments behind them are often referred to as win-win – good for both
the environment and profitability of the company. The principle of win-win situations has
been established for a number of years and most recently recognized in the commission’s
6th Environmental Action program. The program explains, how the European Union and
member State governments can fulfill their role in helping business to identify market
opportunities and undertake win-win investments, the action program also set out a
number of other measures aimed at business: establishment of a compliance assistance
program to help business understand the environmental requirements of the European
Community; development of national, but harmonized, company environmental
performance reward schemes that identify and reward good performers and encourage
voluntary commitments and agreements.
2.9. Dynamics of CSR in Bangladesh

‘Corporate Social Responsibility’ or CSR for short is a relatively new term that has
suddenly gained currency. Hundreds, indeed thousands, of companies are adopting
‘ethical policies’ or ‘codes of conduct’ saying how they intend to behave. More and more
companies are signing up to such initiatives as the United Nations Global Compact or the
Fair Labor Association. They are joining bodies such as World Business Council for
Sustainable Development and CSR Europe. On both sides of the Atlantic there are
myriads of conferences and ‘initiatives’, where corporate ‘CSR Executives’, some even
from companies with a long anti-union record, meet up with campaigns, NGOs and
indeed trade unions. Take the example of McDonald’s. In the 1990s, the hamburger
corporation took two campaigners through a long and exhausting libel court case in
London after they criticized its corporate practices. Then there was the 2004 film ‘Super
Size Me’. Its public image thoroughly dented, today McDonald’s leaflets in the UK show
happy local farmers producing organic crops for healthy meals. Or the oil company
Unocal, which was severely criticized for knowingly using forced labor to construct a
pipeline in Burma, a country run by a vicious regime and subject to an international
boycott. Labor rights’ groups in the US took Unocal through the courts. Unocal now has a
huge area on its website devoted to CSR. In fact, CSR means different things to different
people. However, certain ideas are becoming commonly accepted. One is that CSR is not
about philanthropy or charitable work. It refers to something much more fundamental. It
is about how companies take responsibility for their actions in the world at large.
Conventional CSR Watchdogs include Labor Unions, Consumer Groups,

Environmentalists, NGOs and all ‘Stakeholders’ watching over their interest as opposed
to ‘Stockholders’ only.
The role of business worldwide and specifically in the developed economies has evolved
over the last few decades from classical ‘profit maximizing’ approach to a social
responsibly approach, where businesses are not only responsible to its stockholders but
also to all of its stakeholders in a broader inclusive sense. One can identify so many
reasons for shifting the role of business from classical concept to a responsible business
concept, but negative impression of stakeholders on the enterprise would get a higher
priority among others. In one hand, enterprises create wealth and job opportunities for the
society and on the other; they are pollute and destroy environment and ecology with
devastating impact on human health and bio-diversity worldwide. To address the social
problems or the problems of the stakeholders, the business community evolved a new
approach in their business strategies named CSR and through CSR enterprises are intent
to strike a balance between economic and social goals, where resources are used in a
rational manner and social needs are be addressed responsibly. CSR can be viewed as a
comprehensive set of policies, practices, and programs that are integrated into business
operations, supply chains, and decision making processes throughout the company and
include responsibilities for current and past actions as well as adequate attention to future
impacts. CSR focuses vary by business, by size, by sector and even by geographic region.
The umbrella of CSR is quite big and it includes all the good practices that increase the
business profitability and can preserve interest of all stakeholders. However, Lotus
Holdings defines CSR as “The integration of the interests of the stakeholders – all those
affected by a company’s conduct – into the company’s business policies and actions, with
a focus on the social, environmental, and financial success of a company, the so-called
triple bottom-line with the goal being to positively impact society while achieving
business success.” Thus, the whole range of stakeholders is considered as integral parts
of CSR. One important aspect of CSR is that it is not legal obligation but rather voluntary
social and environmental positive initiative to establish an image of environmentally and
Socially Responsible Business (RSRB) that also encompasses MSMEs as well as giant
corporations. The motivation and drive to pursue is chiefly a result of pressure from well
organized Consumer Rights movement, specifically in developed world that acts as a
watchdog and hardly hesitates to impose Consumer Boycott against a company that
violated established CSR practices. An Ideal example is the consumer boycott imposed
on purchasing Bangladesh Readymade Garments on the ground that these are produced
by under-aged child labor. Despite the fact that in the not so distant past, CSR was more
of a charity by affluent or socially responsible business organizations without expecting
any financial return, today, it very much a planned investment in creating positive image
to enhance profitability. Under CSR concept, companies decide voluntarily to contribute
to a better society and a more sustainable environment. As evolved primarily in the
western world, most of the rising companies there practice CSR to enhance the image and
acceptability in the community (Green Paper, 2001). There are driving forces behind CSR
that include; new concerns and expectations from citizens, consumers, public authorities
and investors in the context of globalization. Social criteria are increasingly influencing

the investment decisions of individuals and institutions both as consumers and as

investors. Increased concern about the damages caused to the environment by economic
activities; transparency of business activities brought about by the media and modern
information and communication technologies are all contributing to the changing scenario
regarding CSR. According to Green Paper, 2001, “Few trends could so thoroughly
undermine the very foundations of our free society than the acceptance by corporate
officials of a social responsibility other than to make as much money for the stockholders
as possible.”

3.1. Brief history of DBBL
Dutch-Bangla Bank Limited (the Bank, DBBL) is a scheduled joint venture commercial
bank between local Bangladeshi parties spearheaded by M Sahabuddin Ahmed (Founder
& Chairman) and the Dutch company FMO. DBBL was established under the Bank
Companies Act 1991 and incorporated as a public limited company under the Companies
Act 1994 in Bangladesh with the primary objective to carry on all kinds of banking
business in Bangladesh. DBBL commenced formal operation from June 3, 1996. The
Bank is listed with the Dhaka Stock Exchange Limited and Chittagong Stock Exchange
Limited. It head office located on Sena Kalyan Bhaban, 4th Floor 195 Motijheel
Commercial Area Dhaka-1000, in Bangladesh. It has 136 branch offices all around the
country. Dutch-Bangla Bank Limited has a wide ATM networks all over the country. It
has set up over 2454 ATM booths in Bangladesh. Dutch-Bangla Bank Limited has been
financing the high growth manufacturing industries in Bangladesh, at the same time it is
working on corporate social responsibility (CSR). Dutch-Bangla Bank Limited is the
pioneer of CSR and for this it is termed the contribution as “Social responsibility”. It is
one of the largest donor and the largest donor bank in Bangladesh. It has been given
numerous international awards because of its contribution as socially responsible bank.
Dutch-Bangla Bank Limited is the first bank in Bangladesh which is fully automated. It
established E-Banking (Electronic Banking) in 2002 to facilitate rapid automation and
bring modern services into this field. Full automation was made in 2003. Firstly, it
introduced plastic money to Bangladeshi people. It is operating the largest ATM fleet
which reduces customer costs and fees by 80%. It is practicing low profitability route for
this sector which has surprised many critics. It has brought much automation in banking
as a CSR activity. For this, it is providing ultra modern banking facilities to its customers
for which most local banks are joining in the infrastructure of banking system of Dutch-
Bangla Bank Limited.

3.2. Corporate Information (At a Glance)
Type Public Limited Company

Traded As DSE: DUTCHBANGLA
Industry Banking
Corporate Office Sena Kalyan Bhaban, 4th Floor
195, Motijheel Commercial Area
Dhaka-1000, Bangladesh.
Incorporation 1995
Commercial Operation June 3, 1996
Authorized Capital 4000 million (2013)
Paid up Capital 2000 million (2013)
Local Partnership of Capital 100%
Equity 12,627.82 million (2013)
Investment 17441.91million (2013)
Deposit 1,45,230 million (2013)
Number of Shares 200,000,000(2013)
Number of Employees 4,666 (2013)
Number of Branches 136 (up to 30.06.2014)
SWIFT Code DBBL BDDH
Website www.dutchbanglabank.com
3.3. Vision
Dutch-Bangla Bank Dreams of Better Bangladesh, where arts and letters, sports and
athletics, music and entertainment, science and education, health and hygiene, clean and
pollution free environment and above all a society based on morality and ethics make all
our lives worth living. DBBL’s essence and ethos rest on a cosmos of creativity and the
marvel –magic of a charmed life that abounds with spirit of life and adventures that
contributes towards human development.

3.4. Mission
Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a
commitment to social cause. “Profit alone” does not hold a central focus in the Bank’s
operation; because “man does not live by bread and butter alone”.
3.5. Core objectives

Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer
needs and satisfaction and to become their first choice in banking. Taking cue from its
pool of esteemed clientele, Dutch-Bangla Bank intends to pave the way for a new era in
banking that upholds and epitomizes its vaunted Marques "Your Trusted Partner".
3.6. Segments Analysis

"Our business segment reporting is intended to measure the true performance of each
business segment as it were a stand-alone business and reflect how the business segment
is managed. This approach is intended to ensure that our business segments' results
include all relevant revenue and expenses associated with the conduct of their business.
3.6.1. Highlights of the key aspects of how our business segments are
managed and reported
 Corporate banking results include interest and non-interest income related to

corporate loans and allied business and related amounts for specific and
general provisions for loan losses.
 Small and Medium Enterprises (SME) banking results include interest and
non-interest income related to SME loans and allied business and related
amounts for specific and general provisions for loan losses.
 Personal banking results include interest and non-interest income related to

personal/ retail loans, debit cards and credit cards and related amounts for
specific and general provisions for loan losses.
 Treasury results include interest and non-interest income related to treasury

operations covering both local currency and foreign currency operations.
3.7. Corporate governance

Corporate Governance is the system of internal controls and procedures used to define
and protect the rights and responsibilities of various stakeholders. The Bank has
adequately complied with all the Corporate Governance Guidelines of Bangladesh Bank
and Bangladesh Securities and Exchange Commission (BSEC). It is ensured by the Board

that all activities and transactions of the Bank are conducted in compliance with
international best practices to protect the highest interest of all the stakeholders.
Maximizing value for shareholders through performance with good governance is the
responsibility of corporate management. In line with the best practice, the corporate
governance systems and practices in DBBL are designed to ensure adequate internal
control in operational process, transparency and accountability in doing business; and
proper and timely disclosures in financial reporting so that value is maximized for all the
stakeholders.
Responsibilities and functions are segregated in a way to strike the right balance between
the Board and the Management. The Board provides leadership and direction of the Bank,
approves strategic plans and major policy decisions and supervises performance of the
management. The Board is responsible for ensuring and encouraging compliance, ethical
standard and integrity throughout DBBL.
The Bank has a policy for delegation of authority. Accordingly, authorities are delegated
to CEO, other senior management and cross functional management committees
comprising head of functional divisions and senior management to review achievements
of key objectives. The Board has also clearly delegated authorities to Board Committees
with specific terms of reference which sets out their objectives and responsibilities.
3.8. Risk Management

Risk is defined by DBBL as risk of potential losses or foregone profits that can be
triggered by internal and external factors. Therefore, the objectives of risk management
are identification of potential risks in our operations and transactions, in our assets,
liabilities, income, and cost and off balance sheet exposures and independent
measurement and assessment of such risks and taking timely and adequate measures to
manage and mitigate such risks within a risk-return framework.
In DBBL, only calculated risks are taken while conducting banking business to strike a
balance between risk and return. Risk is clearly identified, mitigated or minimized and if
possible eliminated to protect capital and to maximize value for shareholders. It is also
ensured that on balance sheet and off-balance sheet, risks taken by the Bank are
consistent with risk appetite and short term as well as long term strategic objectives of the
Bank.

DBBL risk management framework
Identification of
risks / events Decision
Decision making
making

Risk assessment &
Controlling

measurement
Reporting
Decision
Decision making
making


Risk response
Monitoring  Information &
 Mentoring communication
Decision
making
A wide range of tools and techniques are used to address & mitigate all kinds of inherent
and potential risks in banking operations. The Bank attaches highest priority to establish,
maintain and upgrade risk management infrastructure, systems and procedures. In this
regard, sufficient resources are allocated to improve skills and expertise of relevant
banking professionals to manage the risk effectively. The policies and procedures are
approved by the Board and assessed on a regular basis to bring these to the level of
satisfaction required to manage & mitigate the risks adequately and consistently.
Ultimate responsibility for effective risk management of the Bank lies with the Board of
Directors of DBBL. The Board itself and through delegated authority to various
committees of the Board, like Audit Committee, Executive Committee and Risk
Management Committee sets principles and limits, reviews and monitors various risks to
assess adequacy of the system and to ensure that the Bank is operating within approved
systems & procedures. Through delegated authority, management committees, like
ALCO and Credit Committee, also oversee and ensure that sufficient risk management
systems are in place and these are consistently applied to protect the interest of the Bank.
3.9. Products and Services
Dutch-Bangla Bank offers different type of products and services according to their
customers need.
Products Services
 Consumer Banking  Online Banking Service
 Corporate Banking  ATM Service
 Investment Banking  Debit/ Credit Cards
 Internet Banking Service
 SMS & Alert Banking  Remittance Service
 Mobile Banking  SMS/Mobile Service.
 Future line products
 Deposit Plus Scheme (DPS)
 Periodic Benefit Scheme (PBS)
 Bochore Dergun Scheme (BDS)
 Children Education Savings Scheme
(CHESS)
 Pension Plus (PP)
 Term-Deposit Products
 Regular- Deposit products
 Life Line Products
 Health Line
 Education Line
 Professional Line
 Marriage Line
 Travel line
 Festival line
 Home line
 Full Secured Line etc.
3.10. Information Technology

In today’s global business scenario, particularly in banking sector, technology plays a
vital role in executing all sorts of customer friendly banking operations with cost efficient
services. In this sector, competition is rising steadily day by day. As a result, technology
has become an aide of necessity rather than option in financial institutions just to satisfy

the growing service demand of the customer in a cost effective way. Keeping this in view,
the bank has adopted many technology based solutions that has placed our bank at the
zenith of the technological advancement in the banking industry.
With the advance of technology, customers are more powerful and more demanding.
They want to get the service instantly. They do not want to understand the barrier of time
and geographical limitations. Without having a state of the art technology, it is not
possible to satisfy such customers. Being understood that customers are the king, Dutch-
Bangla Bank has set up a comprehensive ICT infrastructure to manage the time and
geographical limitations, to bring employee efficiency, to provide cost effective service to
the customers with the ultimate objective of customer satisfaction.
3.11. Mobile Banking

Dutch-Bangla Bank is working on to take banking within people’s reach using different
channel like ATM and Branch networks. Keeping this in view, DBBL introduces Mobile
Banking for the first time in Bangladesh on 31st March 2011 to bring the unbanked people
in the banking service. Dutch-Bangla Bank mobile banking is a banking process without
bank branch which provides financial services to un-banked communities efficiently and
at affordable cost with a backdrop to serve every segment of customer. The rural,
insolvent, unbanked people of Bangladesh remained isolated from the banking facility
and services due to lower token size and costly transaction. DBBL mobile banking offers
tremendous promise to facilitate the flow of money among rural and poor people at much
lower transaction costs, bringing the bank to those unbanked people of the country.
DBBL is committed to building on current knowledge, sharing best practice, and scaling
successful models across borders, to help create opportunities for people and make a
difference in their lives.
To address this untapped and unprivileged market, DBBL expanded the mobile banking
services all over the country very quickly. Now a total number of 849 employees, 302
Upazila offices and 62,572 agent points are continuously working together to meet all
part of customer requirements. Moreover, 136 DBBL Branches, 2,900 Merchants and
2,454 ATMs are also working as mobile banking access channel for the customers.
Mobile Banking Product & Services:

DBBL Mobile Banking has following Product & Services to properly serve its
Customers:
 Customer registration
 Cash-in (Cash Deposit)
 Cash-Out (Cash withdrawal)
 Foreign/Local Remittance
 Salary/Allowance Disbursement
 Collection - Citizen Bills Payment
 Collection - Business Bill Payment

 Merchant Payment
 Air time Top-up
 Person to Person Fund Transfer (P2P)
 Cash Withdrawal from DBBL Branches
 ATM Withdrawal
 Balance Inquiry
 Statement Inquiry
3.12. Small and medium enterprise (SME) financing

Small and Medium Enterprises (SMEs) play a significant role in the economy in terms of
balanced and sustainable growth, employment generation, development of entrepreneurial
skills and contribution to GDP. DBBL strongly believes that SME sector is one of the
main driving forces of economic growth and it is a market with huge potential.
In order to facilitate the SMEs of our country, the Bank has been financing the SME
sectors since its inception. Full-fledged SME Division was established in DBBL in 2008
to further reinforce SME financing to bring the grass-root entrepreneurs into the main
stream of economic growth. Subsequently, SME Division has been further strengthened
with sufficient manpower and various rules and procedures at different times.
3.12.1. Salient features of DBBL SME products:

 Easy and understandable application process
 Flexible security arrangement
 Fast and hassle free approval and disbursement
 Competitive rate of interest
 Flexible repayment terms
 Automatic payment system
 Partial and full pre-payment facility
 No processing and renewal fees and hidden costs
 Renewal and enhancement facilities
 Collateral free loan up to Tk2.50 million (applicable for women entrepreneurs)
 Rate of interest 10% under refinancing scheme (applicable for women
entrepreneurs)
3.13. Green Banking

Bank since its inception has been maintaining a balanced initiative and supporting activity
to contain things that may adversely affect environment and contribute to pollution. The
practice of efficient uses of resources, encouraging for green financing and environment
friendly initiatives, effective utilization of its on-line communication system etc. have
been maintained Meantime, as directed by Bangladesh Bank.

 An independent Green Banking Policy & Strategy of DBBL has been established
for every individual of the bank working in front and back office to make socially
responsible behavior for the greater interest of the country and planet as whole.
Bank views that a green Bank is an ethical bank or a sustainable bank. The broad
objective of green bank is to use resources with responsibility avoiding spoilage
and giving priority to environment and society.
 A separate dedicated team of Green Banking Cell has been formed consisting of
06 (six) officials from related divisions led by Head of Credit Division who may
contribute with the vested responsibilities in line with the principles towards
implementation and reporting of Green Banking initiatives of the bank. All the
Divisions, Branches and senior level management have been informed on the
principles and responsibilities on their part. The team is actively working covering
the respective areas for compliance.
 The management has allocated fund for an amount of TK. 5.00 million in support
of marketing and capacity building of the bank for green banking activity.
 A green office guide covering set of general instructions have been circulated
among the divisions and branches for meticulous compliance of the instructions
contained and directed towards efficient use of resources, technologies and energy
as well as reduction of wastages.
 A separate fund for an amount of tk.5.00 million has been approved for creation of
a climate change risk fund which to be disbursed in the environmentally
vulnerable areas in case of emergency as a part of Bank’s CSR expenses.
 The bank is under process of a introduction of green banking products for its
customers engaged in the field of environment friendly projects and initiatives.

3.14. Organization Structure of DBBL
Managing Director
Deputy Managing Director
Senior Executive Vice President
Executive Vice President
Senior Vice President
Vice President
Senior Assistant Vice President
Assistant Vice President
First Assistant Vice President

Trainee Officer
Officer Senior Principal Officer
Senior Officer Principal Officer

3.15. Financial Highlights

Financial Highlights
(In million Taka)
Particulars 2013 2012 Growth 2011 2010 2009

(%)
Result of operation
(for the year)
Total revenue 20,050.6 18,213.1 10.1% 14,114.6 10,607.5 8,914.3
Operating profit 4,583.6 5,205.6 -11.9% 4,779.9 4,198.5 2,695.7
Profit before 3,547.0 4,817.1 -26.4% 4,547.7 3,739.1 2,154.4
taxation
Profit after taxation 2,000.8 2,314.1 -13.5% 2,154.9 2,002.3 1,137.7
Financial position (at year end)
Total assets 185,537.4 155,918.8 19.0% 123,267.0 101,181.6 81,480.5
Total risk weighted 112,770.7 102,518.8 10.0% 93,838.2 94,655.8 86,994.9
assets
Total loans and 106,422.8 91,648.9 16.1% 79,660.7 67,657.7 48,411.0
advances
Total deposits 145,203.1 125,433.1 15.8% 100,711.0 83,244.8 67,788.5
Total import 108,259.3 104,306.1 3.8% 83,434.4 87,662.6 53,088.7
Total export 118,045.2 108.878.6 8.4% 92,412.4 73,499.5 41,162.5
Total shareholders’ 12,641.7 10,854.5 16.5% 8,939.6 7,001.0 4,351.8
fund
Total capital 15,403.4 12,284.0 25.4% 10,534.9 9,125.9 5,899.8
Market 20,940.0 22,850.0 -8.4% 32,260.0 45,855.0 29,366.0
capitalization
Particulars 2013 2012 Deviation 2011 2010 2009

Per share (Taka)
Earnings per share 10.0 11.6 ( 1.6) 10.8 10.0 5.7
Dividend per share
Cash 4.0 4.0 - 4.0 3.0 -
Bonus - - - - - 33.3
Net asset value 63.2 54.3 8.9 44.7 35.0 21.8
(NAV) per share
Closing Market 104.7 114.3 ( 9.6) 161.3 229.3 195.8
price per share
Financial ratios (In Percentage)
Loan deposit ratio 73.3% 73.1% 0.2% 79.1% 81.3% 71.4%
Return on average 1.2% 1.7% -0.5% 1.9% 2.2% 1.6%
total assets
risk weighted assets
shareholders’ fund
Ratio on non- 3.9% 3.0% 0.9% 2.7% 2.4% 2.5%

performing loan to
total loan
Capital adequacy 13.7% 12.0% 1.7% 11.2% 9.6% 11.6%
ratio
Cost-income ratio 63.9% 53.9% 10.0% 47.4% 41.4% 44.1%
Key financial information & ratio-last five years

(In million Taka)
particulars 2013 2012 2011 2010 2009

Operating performance (income statement) (for the year)
Total revenue 20,050.6 18,213.1 14,114.6 10,610 8,914.3
Total expenses 15,467.0 13,007.5 9,334.8 6,409 6,218.6
Profit before 4,583.6 5,205.6 4,779.9 4,198.5 2,695.7
provisions
Total provisions 1,036.5 388.5 232.2 462.3 428.0
Profit before 3,547.0 4,817.1 4,547.7 3,739.1 2,154.4
taxes
Provision for 1,546.3 2,503 2,392.8 1,736.8 1,016.7
taxation
Net profit after 2,000.8 2,314.1 2,154.9 2,002.3 1,137.7
taxation
Statement of financial position (Balance Sheet) (As at 31 December)
Authorized 4,000.0 4,000.0 4,000.0 4,000.0 4,000.0
capital
Paid-up share 2,000.0 2,000.0 2,000.0 2,000.0 1,500.0
capital
Total 12,641.7 10,854.5 8,939.6 7,001.0 4,351.8
shareholders’
fund
Deposits 145,230.1 125,433.1 100,711.0 83,244.8 67,788.5
Loans and 106,422.8 91,648.9 79,660.7 67,657.7 48,411.0
advances
Investments 17,441.9 13,428.6 10,897.7 11,001.6 9,685.9
Property, plant 4,382.6 4,676.7 3,981.9 2,934.4 1,773.6
and equipment
(net)
Total assets 185,537.4 155,918.6 123,267.0 101,181.6 81,788.4
Total earning 150,588.8 125,900.0 101,055.7 83,311.2 69,963.3
assets
Total contingent 46,561.9 43,522.8 38,557.5 46,497.8 26,262.8
liabilities
Other business (trade finance) for the year
Import 108,259.3 104,306.1 83,434.4 87,662.9 53,088.7
Export 118,045.2 108,878.6 92,412.4 73,499.5 41,162.5
Asset quality (As of 31 December)

Amount of 4,175.6 2,728.4 2,186.8 1,665.7 1,193.3

classified
Advances (Taka)
Classified loans 3.9% 3.0% 2.7% 2.4% 2.5%
to total loans
(%)
Capital measurement
Core (Tier 1) 10,693.5 9,395.5 7,523.0 6,051.2 4,048.9
capital
Supplementary 4,709.8 2,888.5 3,011.8 3,074.7 1,850.9
(Tier 2) capital
Total capital 15,403.4 12,284.0 10,534.9 9,125.9 5,899.8
(Tier 1 and Tier
2)
Total risk 112,770.7 102,518.8 93,838.3 94,655.8 50,913.5
weighted assets
Tier 1 capital 9.5% 9.2% 8.0% 6.4% 8.0%
adequacy ratio
(%)
Tier 2 capital 4.2% 2.8% 3.2% 3.2% 3.6%
adequacy ratio
(%)
Total capital 13.7% 12.0% 11.2% 9.6% 11.6%
adequacy ratio
Capital surplus 4,126.3 2,032.2 1,151.0 606.9 808.5
Share information
Number of share 200,000,000 200,000,000 200,000,000 200,000,000 150,000,000
outstanding
Earnings per 10.0 11.6 10.8 10.0 5.7
share (Taka)
Market price per 104.7 114.3 161.3 229.3 195.8
share (Taka)
Price earnings 10.5 9.9 15.0 22.9 34.4
ratio (P/E ratio)
(Times)
Market 20,940.0 22,850.0 32,260.0 45,855.0 29,366.0
capitalization
Dividend per
share
Cash (Taka) 4.0 4.0 4.0 3.0 -
Bonus - - - - 33.3
Net asset value 63.2 54.3 44.7 35.0 21.8
(NAV) per share
(Taka)
Number of 6,611 6,637.0 7,457.0 8,409.0 7,508.0
shareholders
Financial ratios (In Percentage)
Gross profit 22.9 28.6 33.9 39.6 30.2
ratio (%)
Debt equity ratio 23.6 11.0 15.1 20.2 34.8

(%)
Loan deposit 73.3 73.1 79.1 81.3 71.4
ratio (%)
Return on 10.8 11.6 10.9 12.2 14.6
average
investment (ROI
%)
Yield on loans 13.5 14.3 13.0 11.6 13.0
and advances
(%)
Return on 17.0 23.4 27.0 35.3 30.3
average equality
(ROE %)
Return on 1.2 1.7 1.9 2.2 1.6
average assets
(ROA %)
Other information
Number of 4,666 5,268 4,015 2,794 1,785
employees
Number of 136 126 111 96 79
branches
Number of ATM 2,454 2,366 1,940 1,100 700
Units
Number of Fast 263 235 153 50 -
Track
Number of 3,405,671 2,755,149 2,026,189 1,352,870 761,120
deposit account
holder
Number of loan 26,852 24,650 15,595 14,917 9,797
account holder

4.1. Bangladesh Bank’s Initiatives

The importance of corporate social responsibility (CSR) is increasing day by day in
today's world. Commercial banks generate profit from the people of the society and in
return, they have some social responsibilities. Therefore, to encourage and formalize CSR
in the financial sector, Bangladesh Bank has taken initiatives by issuing an elaborate
guideline "Mainstreaming Corporate Social Responsibility (CSR) in banks and FIs in
Bangladesh" to the banks and FIs on 01 June 2008. The country can be benefitted if a
nominal portion of the bank's profit is utilized for the welfare and development of the
underserved and disadvantaged section of the society.
To establish a humanitarian banking system by vitalizing the lagging but potential sectors
of the society and undertaking innovative programs for all spheres of life, the CSR
activities of the banks have been brought under the umbrella of mainstream banking and
integrated with the initiatives of reaching financial services to unbanked population of the
country. Under the financial inclusion initiatives, recently the neglected but productive
sectors such as farmers, small entrepreneurs, women entrepreneurs, labor class and other
disadvantaged sections of the society have been prioritized. Recently a separate
department namely 'Green Banking and CSR Department has been established in
Bangladesh Bank to closely monitor the CSR activities of the banks and formulate year
wise reports on it. This department also supervises green banking and financial inclusion
and financial literacy activities of the banks along with CSR works.
The CSR programs run by the banks and NBFIs to complement government's agenda of
poverty alleviation and employment generation programs in the sectors like education,
health, nutrition, sports, disaster management, renewable energy, socio-economic
development of the people of neglected and underserved areas, women empowerment,
welfare of the freedom fighters' families etc. which has added a new dimension to the
poverty alleviation and social safety net. Recent involvement of banks in CSR activities
has made an easy access of hardcore poor, landless peasants, small farmers,
sharecroppers, small traders, poor women to financial services. We have already been
reaping benefits of the impact of financial inclusion and growth.
Bangladesh Bank considers CSR activities of banks and NBFIs as a new dimension of
efficiency. CSR practicing banks will enjoy some incentives in the form of preferential
treatments like giving points to compliant banks on management component 'M' while
deciding on its CAMELS (capital, asset, management, earning, liquidity and sensitivity)
rating. Consequently, CSR practices by banks will improve their own standards in the
market.
To give the financial sector a human face through developing a humanitarian banking
system, some priority sectors have been identified for the CSR activities of banks and
NBFIs. Like:

a) Individually or in participation with locally operated MFIs in self employment

loans and SME credit programs;
b) Urgent creation of productive on-farm/off-farm employment for the regions of
massive seasonal unemployment like that of "manga" stricken areas of the
northern part of Bangladesh;
c) Financing renewable energy projects like biogas and solar panel for rural
households and waste recycling plants, effluent treatment plants (ETP) in the
urban slums;
d) Credit programs for the households in producing various crops including oilseeds,
vegetables, fruits etc; direct or via media financing for the producers; composite
firms for co-production of companion crops with main crops; fisheries/poultry
with in low land water with "Aman" cultivation;
e) Financing mobile phone based/MFI supported programs for prompt delivery of
remittances;
f) Financing programs to promote domestic tourism and markets in cultural
products/events including employment generation activities for the people
engaged in folk music, art and culture.
Later on, some more activities have been included in CSR activities. Like:
 Relief and credit programs to the people affected in natural calamities like 'Sidr'
and 'Aila';
 Providing scholarship for the children of poor freedom fighters and needy students
of rural and underserved areas;
 Setting up a separate CSR desk in the banks, and
 Allocate 30% of the total budget of CSR activities in education sector.
In 2011, for the first time, four scheduled banks fixed up their budgets for CSR activities
having discussed with the stakeholders and justifying the rationale behind allocating
funds for CSR. Banks have set up a dedicated "CSR Desk" as "focal point" for
maintaining direct communication with Bangladesh Bank. Almost all the banks have
embraced CSR formally among which 20 banks (3 NCBs, 16 PCBs, and 1 FCB) have
formed separate trust or foundation to promote CSR activities. Other banks are spending
in CSR from their main budget. About Tk. 3.05 billion was spent in 2012 for CSR
activities which was only Tk. 0.41 billion in 2008 i.e. CSR expenditure increased 7 times
in last four years. At the beginning, banks were not supposed to report to Bangladesh
Bank on their CSR initiatives but now they have to make regular reporting. Since 2009,
Bangladesh Bank is publishing report on overall CSR activities undertaken by the banks
with the title of "Review of CSR Initiatives in Banks". Similar to the commercial banks,
NBFIs are also advised to participate in CSR activities. Some initiatives of the
government and Bangladesh Bank encourage and stimulate banks and NBFIs to
participate in CSR initiatives. Like:

 Bangladesh Bank offered Tk. 2.0 billion refinance scheme under which
entrepreneurs can take loans at 10% interest rate from PCBs for establishing solar
energy and biogas plants, ETP etc.
 Providing 6 per cent interest subsidy for banks against their concessional lending
to the producers of pulse, spice, oil seed and maize;
 Like many other countries, gender discrimination is a barrier for the socio
economic development and human rights in Bangladesh too. According to a
survey on commercial banks, it has been observed that 13% newly recruited, 9%
mid-level and 4% high level employees are women. Gender equality issues of the
banks are brought into the CSR activities and few changes have been incorporated
there recently. These are:
 20 banks extended maternity leave up to six months. Among them, 10 banks have
introduced special policies for allowing maternity leave. In other banks, the duration of
this leave is 3-4 months.
 One of those banks (BRAC Bank Ltd.) has set up a day care centre for the
dependants of the women employees.
 17 banks have introduced policies to prevent work place abuse and harassments
though no such event has been registered till 2011.
 6 banks have arranged special awareness training about gender discrimination

issue.
 15 banks have arranged secure transportation for their women employees.
CSR activities have become an inseparable component in all business practices globally.
Apart from few big ticket expenditures in overall financial inclusion and poverty
alleviation, Banks have increased their participation in helping the underserved and
disadvantaged section of the society including raising awareness of environmental issues.
The depth of CSR activities by the banks has increased too.
Under CSR programs, banks have taken a number of initiatives for mentally and
physically challenged people in every branch through their help desks. Like:
 Separate counter for physically challenged people;

 Supplying educational materials and providing scholarships towards physically
challenged people;
 Free surgery for crippled children and adolescents;
 Temporary free eye camp;
 Financial support for injured freedom fighters;
 Free treatment, education and study material for visual and hearing impaired
people;

 To ensure education and regular support for the autistic children-teenagers

through society for welfare of autistic children and raising awareness programs for
autistic children ;
 Distributing Warm Cloths among Helpless Cold Stricken People
Bangladesh Bank always encourages banks to distribute warm cloths among the helpless
cold stricken people. Banks distributed more than 10 million blankets in this winter
(2012-2013) among them under their CSR program. Bangladesh Bank has recently
opened a 'Green Banking and CSR Department' to expand CSR activities by the banks
and to monitor those closely. This department will supervise green banking, financial
inclusion and financial education activities of the banks apart from CSR activities.
 Savar tragedy and Bangladesh Bank in humanitarian

responsibilities
On 24 April 2013, due to the disastrous collapse of a multi-storied building named Rana
Plaza at Savar near Dhaka, over thousand people, mostly apparel workers lost their lives.
It was one of the deadliest disasters in the country. This building collapse astounded not
only Bangladesh but also the whole world. When the world was benumbed due to
unscrupulous decision of some rapacious businessmen, the hearts of millions of people
were bleeding in solidarity with the victims at the accident, hundreds of volunteers
participated in the rescue work risking their own lives. They waited for no call or
instruction from any source. Any kind of disaster can be confronted if all work together in
this way. Out of the sense of humanitarian responsibility Bangladesh Bank also came
forward to stand by the dead and the injured in their distress. At the instant instruction of
Governor Dr. Atiur Rahman, a team of 14 members comprised of doctors and rescue
workers went to Savar with medicine and ambulance to provide medical assistance to the
victims. At the same time, formal assistance and rehabilitation plans were taken.
Bangladesh Bank arranged a discussion meeting with banks and FIs to help the families
of deceased and injured victims and the volunteers. Governor urged the institutions of
financial sector to be humanistic as a part of their corporate social responsibilities.
At the leadership of Bangladesh Bank, banks and FIs take the following decisions:
 Donate one day's salary of all banks and FIs staffers to Prime Minister’s relief
fund to provide immediate assistance to the families of the injured and deceased
victims of Savar Tragedy;
 Donate money to Prime Minister’s relief fund by banks and FIs within their
capacity;
 Form a long term ‘disaster assistance fund’ in co-ordination of banks and FIs led
by Bangladesh Bank;

 Arrange training and necessary machinery purchase for different organizations

engaged in disaster management to increase their capacity;
 Rehabilitate volunteers participating in the rescue work providing them jobs or
finances as required;
After the accident, banks took blood donation program along with providing ambulance
and medical service, medicine, foods. All banks and FIs set a unique example donating
their officials' one day's salary under their CSR activities at the direction of Bangladesh
Bank. Besides, the donation of about Tk. 1 billion to the Prime Minister's fund by 'BAB'
and 'ABB', organizations of private banks, and 'BLFCA', organization of FIs, has helped
financial sector be more humane. Within this fund, cheques of Tk. 800 million were
handed over to the Prime Minister by the representatives of banks led by Governor on 14
May 2013.
Bangladesh bank is monitoring the assistance activities for the families of deceased and
injured victims of Savar Tragedy. To identify the actual sufferers, a list of injured,
deceased victims and volunteers has been collected from military officers/ Army engaged
in rescue work. The families of the victims and the volunteers will be assisted
consecutively. Thus Bangladesh Bank is making unique instances of a humanitarian
central bank to the world doing various tasks out of conventional responsibilities.
 Formation of disaster management and CSR fund
Bangladesh Bank has raised a fund for increasing institutional capacity in disaster
management and participating in priority based CSR activities. With BB, various
commercial banks and FIs will participate in this program. This fund will be operated by
a committee formed with representatives of scheduled banks and FIs and presided over by
a Deputy Governor of BB. BB will contribute Tk. 50 million to this fund every year.
This fund will mainly be used for the following purposes:
 Permanent and long term planning and project preparation for the development of
work-station environment, security and life standard of the workers of apparel
industry;
 Provide assistance for institutional training to improve competence in different
sectors (i.e. nursing, information technology, technical);
 Provide assistance for infrastructural and technological development to build up
capacity of Bangladesh Fire Service and Civil Defense, hospitals and
organizations providing medical services especially for incurable diseases (i.e.
cancer, heart disease, paralysis, thalassemia, lameness/disablement etc.);
 Give priority to leadership & capacity building and skill development of youths in
drawing up the activities of this fund and take assistance for this from specialized
institutions;
 Provide immediate assistance to confront disasters.

5.1. Sector wise CSR activities of DBBL

DBBL as a responsible corporate body has been playing a pioneering role in
implementing social and philanthropic programs to help disadvantaged people of the
country. Education, healthcare, human resource development, conservation of nature,
creation of social awareness, rehabilitation of distressed people and such other programs
to mitigate human sufferings are some of the important areas where the bank carries out
its social and philanthropic activities. Dutch-Bangla Bank Foundation, established in June
2001, carries out humanitarian activities like rehabilitation of the destitute and neglected
section of the society. DBBL provides 5 percent of its gross profit to the foundation every
year.
A. Contribution to Education Sector

DBBL is providing scholarships in Bangladesh to the meritorious students, especially for
those who cannot continue their study due to financial constraints as well as to the needy
students every year since 2001. The bank was awarded around 4,071 new scholarships in
the year 2013 of Tk. 2,000 per month every year along with continuing scholarships for
those studying at HSC level. So far around 8290 scholarships have been awarded in the
Graduation level. The Graduation level scholarships of Tk. 2,500 per month are
renewable for their entire academic period of graduation level and about 2,518 new
scholarships have been awarded in this level.
SL level of study Amount of scholarship One time grant annually Total grant per
NO. per month (TK.) (TK.) year for each
For reading For clothing awardees (TK.)
materials
01. H.S.C level 2,000.00 2,500.00 1,000.00 27,500.00
02. Graduation 2,500.00 5,000.00 1,000.00 36,000.00
level
M. Phil / PhD/ Post Doctoral Level: The bank also awards 50 fellowships of Tk. 5,000
per month every year to the researchers having Masters Degree and those studying at
different public universities at M. Phil, PhD or post- Doctoral level about 129 fellowships
have been awarded so far.
As part of its corporate social responsibility, DBBL has donated more than Tk. 10 Crore
to Dhaka University for constructing a research centre (Centre for Advanced Research in
Arts & Social Science Bhaban). The research centre, first of its kind in Bangladesh, aims
to play a vital role in higher study in human and social sciences. Researchers and scholars
from home and abroad will be awarded scholarships and fellowships for conducting
higher study.
DBBL has donated to establish a modern Braille printing press to Bangladesh National
Society for the blind for publishing Braille books for the blind Students and has donated
reference books to the library of different educational institutions like BSMMU, Dhaka
University etc.
DBBL also donated a pick-up van to Botanic Garden of Bangladesh Agriculture

University for collection, conservation and utilization of rare and endangered plant
species of Bangladesh etc.
B. Contribution to Health Sector

Cleft-lip problem is not only a health problem but it affects the whole family along with
the victim. Since 2003 DBBL is working with these vulnerable groups under its Smile
Brighter Program to bring back smile on their face and to enable them to start normal life.
This is a continuous program aiming to perform as much operation possible per year.
Total 5,000 poor cleft-lipped boys and girls have so far been successfully operated across
the country till date.
DBBL Foundation provides financial support for operative treatment of rural and poor
women who have been suffering from Vesico Vaginal Fistula (VVF) and other related
problems with a view to ensure their healthy and productive life. A total of 86 patients
have so far been successfully operated across the country till date.
In 2008, DBBL took an initiative of conducting surgery on some 12,000 poor cataract
patients across the country. So far some 2000 poor cataract patients have so far (during
2008 & 2009) been successfully operated across the country under the Cataract operation
for underprivileged rural people program.
Under DBBL’s Medicine and nutrition support for HIV/AIDS patients program, 50 HIV/
AIDS patients including women and children are being provided with ARV (Anti-Retro-
Viral) medicines, vitamins and nutritious food supplement and clinical supports.
DBBL provides free rural medical services for rural poor people especially mother and
children through rural branches such as Shimrail, Donia, Gazipur Chowrasta, Boardbazar,
Savar Bazar, Baburhat, Patherhat, Hathazari branch etc. Medical officers are providing
advices and prescriptions to poor patients of surrounding areas of these branches.
DBBL donated generous amount of money to different health organizations for medical
instruments and medical infrastructural development such as operation theatres,
laboratory, hospital, building etc.
c. Contribution to Disaster Relief

Bangladesh faces various kinds of natural calamities like cold, flood, storm, cyclone etc.
in every year. Considering the sufferings of common people DBBL has introduced
following special programs for the people of the affected areas:

1. Donation of blankets to the cold affected people of the country.

2. Donation for rehabilitation of victims of Rana Plaza tragedy at Savar, Dhaka.
3. Donation to 350 homeless families of Brahmanbaria district affected by Tornado.
4. Financial support for rehabilitation of land slide victims of Chittagong.
5. Rehabilitation of devastating flood victims.
6. Rehabilitation of cyclone ‘Sidr’-hit people.
7. Water purifying tablets, oral saline & Cholera saline for the Flood victims.
8. To ensure hygienic sanitation system DBBL provided 460 numbers of sanitary
latrines for the inhabitants of Angorpota and Dahagram enclave. . DBBL also
provided support for ensuring pure drinking water by providing 50 hand tube
wells for them.
D. Contribution to Sports Sector

DBBL provides financial support for promoting the sports and culture of Bangladesh.
Some mentionable events were:
1. Donation to Bangladesh Olympic Association for organizing the 8th

Bangladesh Games 2013:
8th Bangladesh Games 2013 was the biggest sports event in Bangladesh. The greatest
games were inaugurated by the honorable Prime Minister of Bangladesh on 20th April
2013 and it continued till 28th April 2013. Besides, all members of the cabinet and the
diplomats of others countries remained present on the occasion. The inauguration
program was chaired by General Iqbal Karim Bhuiyan, the President of Bangladesh
Olympic Association and the Chief of Bangladesh Army. Initiatives for arrangement of
the 8 th Bangladesh Games 2013 was taken by the participation and patronization of
various private organizations, industrial organizations and the sports enthusiasts along
with government. The competition held in 31 disciplines such as athletics, archery,
badminton, basket ball, boxing, cycling, fencing, football, handball, golf, gymnastics,
hokey, judo, rowing, shooting, swimming, table tennis, taykoyando, tennis, volleyball,
weight lifting, wrestling, chess, cricket, kabadi, squash rackets etc. About 10,000 players
consisting of seven divisional teams from seven divisions, services team and corporate
team participated in the game along with officials.
Considering the importance of the biggest sport event, Dutch-Bangla Bank donated Taka
5,000,000/- (Taka five million) only to ‘Bangladesh Olympic Association’, for organizing
the 8 th Bangladesh Games 2013.
2. Sponsorship for arranging ‘‘3rd DBBL-BAF Golf Tournament 2013’’:
The Shaheen Golf and Country Club Patenga organized the ‘3rd DBBL-BAF Golf
Tournament 2013’ on 15-16 February 2013. Dutch-Bangla Bank sponsored quite a good
number of golf tournaments before. Besides, DBBL had been sponsoring Golf

Tournament for last two consecutive years in cooperation with Bangladesh Air Force.
Considering the Bank’s long involvement with golf, DBBL sponsored the “3rd DBBL-
BAF Golf Tournament-2013”at a total
Cost of Taka 2,000,000/- (Taka two million) only.
3. Sponsoring inaugural Test Match between Bangladesh and India.
4. Financial support to Bangladesh Hockey Federation.
5. Sponsoring Dutch-Bangla Bank President Cup Golf Tournament.
6. Sponsoring Dhaka Sports Carnival-2007.
E. Contribution to Social Welfare

For the development of the vulnerable segments of Bangladesh, DBBL assisted to
rehabilitate the acid and dowry victim women by providing one-time financial assistance
for establishing small scale agro-based rural economic enterprise to be self reliant. Total
884 women receive financial assistance from DBBL.
DBBL provides financial support for rehabilitation of physically handicapped, mental

impaired, visually impaired, hearing impaired, autistic and street children by ensuring
education and vocational training.
DBBL runs mass awareness programs on different burning issues through print and
electronic media. Some remarkable issues are as follows:
a) Save the nation from curse of Dowry.
b) Stop acid violence
c) Prevent drug Abuse
d) Tree plantation and preservation of environment
e) Right of disable children etc.
f) Financial support to ‘Nirapad Sarak Chai’ for helping the victims of road accident
and mass campaign for prevention of traffic accident.
g) City beautification and preserving environment to develop an eco-friendly society
for healthy human life.
DBBL donate ‘Central kachi-kanchar Mela’ for renovating the

Auditorium:
Central kachi-kanchar Mela is a non profitable well known organization working for the
well-being of children of Bangladesh. It was established in 1956 and has been working
for development of children. It is engaged in art and culture, literature, science and
technology, sports, education and social development. It works also for making an
awareness of children’s rights in Bangladesh. It has an auditorium of its own but as it was
constructed many years ago its condition has become dilapidated. The auditorium was
required to renovate for better functioning.

Considering the importance of the organization, Dutch-Bangla Bank donated Taka 70,
00,000/-(Taka seven million) only to ‘Central kachi-kanchar Mela’ for renovating the
auditorium of the organization at Segunbagicha, Dhaka including its extensive
refurbishment.
F. Contribution to the development of disabled community

1. Donation to ‘PROYASH’ to provide better services to the differently
able children:
PROYASH is an institute established in 2006 at Dhaka Cantonment under the auspicious

of Bangladesh Army with the motto of “Special child special right”. The objective of
PROYASH is to educate and train students with special needs in view of incorporating
them in the mainstream education and thus upholding their right in the society as self-
dependent persons. It provides services to these children through its six branches at Savar,
Chittagong, Bogra, Jessore, Comilla and Rangpur. The institute has expanded its facilities
for the development of these differently able children. To enhance the facilities of the
institute for providing better services to the disabled children, Dutch-Bangla Bank has
donated Taka 35,000,000/- (Taka thirty five million) only to ‘PROYASH’, an institute
under the patronization of Bangladesh Army dedicated for the well-being of children with
special needs.
PROYASH’ decided to extend its existing three storied academic building and construct
the 4 th & 5th floor measuring 22,000 square feet (approx.). Considering the importance of
the organization, in July 2013 Dutch-Bangla Bank provided further donation of Taka
35,000,000/- (Taka thirty five million) only to ‘PROYASH’, Dhaka Cantonment, Dhaka,
for constructing the 4th & 5th floor measuring 22,000 SQ feet (approximately) of
PROYASH academic building where the disabled children will get education and other
services. In this way DBBL made a total donation of Taka 70,000,000/- (Taka seventy
million) only to PROYASH for the overall development of the Institute.
G. Contribution to other Sector

1. Dutch-Bangla Bank - Prothom Alo Ganit Utsab.
2. Donation of a life support Ambulance to Dhaka Metropolitan Police.
3. Donation for participating NASA’s 4 th Annual Lunabotics Mining Competition
2013.
H. Contribution to Environment
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.
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.
I. Contribution for creating awareness on different social issues
1. Hope and Love make us lively

Hope is a sine qua non factor in human life but all hopes cannot be fulfilled. One dream
falls apart and another one rises. Life goes through a topsy-turvy. Amid such a notion,
respect, love and responsibility grow to support the human values. That’s why
men/women come forward for the welfare of society and country as well. DBBL has
taken a move on the theme to make awareness among the masses to promote moral values
and patriotism. A campaign has been launched through electronic media, print media and
bill boards by the DBBL carrying the slogan ‘‘Hope and Love make us lively.”
2. Stop Acid Violence

A section of terrorists resort to violence through abusing acid. It is an outrageous
perversion of the terrorists who fail to satisfy their ill-motive. It is now a social menace.
Females are the worst victim of this menace. Mass awareness is imperative to free the
country from this curse. DBBL has taken a move on the theme to make awareness among
the masses. A campaign has been launched through electronic media, print media and bill
boards by the DBBL carrying the slogan ‘‘Stop Acid Violence.’’
3. Willpower is enough to do a good job

Men are destroying the green environment through cutting trees and killing birds. A lot of
preparations are needed to perpetrate such misdeeds. But we can free the birds from cage
at our own wish. There is no need of pre-planning to do such good jobs, rather willpower
is enough. DBBL has taken a move on the theme to make awareness among the masses.
A campaign has been launched through electronic media, print media and bill boards by
the DBBL carrying the slogan ‘‘Willpower is enough to do a good job.’’

4. Stop demand for dowry

Marriage means dowry. Every year, a lot of women endure physical and mental torture
from the end of husband’s family demanding dowry. A significant number of women die
or embrace physical disability or get divorced. It is a crime as per our law to demand or
receive dowry, but there remains non-compliance. DBBL wants to wipe out such crime
from our society. That’s why a campaign has been launched through electronic media,
print media and bill boards by the DBBL carrying the slogan ‘‘Stop demand for dowry.’’
5. Uphold justice
In the past, the citizens of this country sacrificed a lot to the cause of mother, mother-
tongue and mother-land. Have we properly evaluated their contribution? Established on
the spirit of language movement and liberation war, Bangladesh has not achieved desired
development. Chaos, dishonesty and other vices have engulfed the country. But it cannot
be tolerated further. The young generation should come forward to change the situation
and resist all evil forces. There must be a strong determination in favor of justice and no
compromise with the injustice. This country will be a true ‘Golden Bengal’ with
accomplishment of such promises. That’s why a campaign has been launched through
electronic media, print media and bill boards by the DBBL carrying the slogan ‘‘Uphold
justice.’’
6. Good behavior with mentally-retarded persons, a moral duty

Mentally-retarded persons are neglected in our society. But they are part of our society
and they have due right to live with honor. So there should not be any negligence towards
such persons, rather we should extend cooperation in all aspects to them. A campaign has
been launched through electronic media, print media and bill boards by the DBBL
carrying the slogan ‘‘Good behavior with mentally-retarded persons, a moral duty.’’
7. Human for Humanity

No nation can prosper without performing social responsibility showing love for each
other. To arouse this value, DBBL has launched a campaign through electronic media,
print media and bill boards carrying the slogan ‘‘Human for Humanity.’’
8. Combat AIDS
Many innocent people are being attacked by AIDS due to unawareness. Their conditions
deteriorate day by day due to irregular medical check-up and lack of medicines. Our
society does not treat them properly but they are the part of our society. They should not
be ignored, rather their proper treatment must be ensured. To arouse this value, DBBL
has launched a campaign through electronic media, print media and bill boards carrying
the slogan ‘‘Combat AIDS.’’
9. Drug addiction - a menace to destroy life

Drug addiction has been ruining our youth generation. The age which is supposed to build
a country towards prosperity is being trapped by drug addiction. Drug addicted people are

not only destroying their lives, they are also ruining the family bondage and society
fabrics creating imbalances in the society. DBBL has launched a campaign through
electronic media, print media and bill boards carrying the slogan ‘‘Drug addiction-A
menace to destroy life.’’
10. Plant tree, save environment

We must come forward to plant trees for the sake of environment balance. We need
initiatives and awareness. DBBL has launched a campaign through electronic media, print
media and bill boards carrying the slogan ‘‘Plant tree, save environment.’’
5.2. Financial Highlights of CSR expenditure of DBBL (Last

Five Years)
Years (Taka)
Sector 2013 % 2012 % 2011 % 2010 % 2009 %
Educatio 135672750 45 327155400 62 211934600 62 84700176 50.16 89155640 56

n
Health 21104650 7 36936900 7 27346400 8 45625972 27.02 11144455 7
Social 6029900 2 52767000 10 15920650 10

Develop - - - -
ment
Develop 27134550 9
ment of - - - - - - - -
Disabled
Commu
nity
Commu 6836600 2
nication - - - - - - - -
and road
safety
Disaster 78388700 26 58043700 11 58111100 17 21107500 12.5 25473040 16
Sports 3014950 1 5276700 1 3418300 1 8443000 5 1592065 1
Social 27134550 9 42213600 8 23928100 7 12736520 8

Awarene - -
ss
Miscella 3014950 1 5276700 1 10254900 3 8983352 5.32 3184130 2
neous
Total 301,495,000 100 527,670,000 100 341,830,000 100 168860000 100 159206500 100

6.1. CSR Contributions of Commercial Banks in Different

Areas
Dutch-Bangla Bank Limited (DBBL)
Dutch-Bangla Bank since its inception in 1996 had adopted the policy of contributing to
the social cause. It has been continuing its effort during the last 15 years as a pioneer in
the banking sector. The bank dreams of a country free from hunger and a society free
from vices. It is not possible without education. As such the bank places much importance
on education. Healthcare, human resource development, conservation of nature, creation
of social awareness, rehabilitation of distressed people and such other programs are some
of the important areas where the bank carries out its social and philanthropic activities.
CSR ACTIVITIES OF DBBL

1% Education
1% 9%
Health
Social Development
45% Development of Disabled

26% Community
Disaster
Sports
9% Social Awareness
7%
2% Miscellaneous
Figure 1: CSR activities of DBBL -2013
In the year 2013, they contributed Tk. 301.495 million (see Table 1) in CSR activities
where (see Figure 1) 45% of the money is donated to education sector. They also donated
7% of the money to health, 2% to social development, and 9% to development of disabled
community, 26% to disaster management, 9% to social awareness, 1% to sports, and
remaining 1% to other social activities. So DBBL as a responsible corporate body has
been playing a pioneering role in implementing social and philanthropic programs to help
disadvantaged people of the country.
Islami Bank Bangladesh Limited (IBBL)

IBBL, the first Shariah based Islami commercial bank in the Southeast Asia, is playing a
remarkable role in alleviating poverty across the country through performing enormous
Corporate Social Responsibility (CSR) activities in different vital sectors. IBBL has been
playing a very significant role in performing CSR activities in different sectors, including
education, health, environment, sports, Humanitarian & disaster relief, Arts & Culture,
and other sector.
CSR ACTIVITIES OF IBBL
1% 5%
5%
Education
28%
Health
17%
Humanitarian & Disaster Relief
Sports
Arts & Culture
Environment
15%
Others
29%
Figure 2: CSR activities of IBBL - 2013
15% of the money to health, 29% to Humanitarian and disaster relief, 17 % to sports, 1%
to Arts and Culture, 5% to environment, and remaining 5% to other social activities.
First Security Islami Bank Limited (FSIBL)
FSIBL always extended their assistance for the distressed community in education, health
and various natural calamities as a part of CSR. The bank contributes almost 5% of its
operational profit in this project. Since establishment besides banking activities FSIBL
contributed to countries health, education, disaster preparedness & sports development.
CSR ACTIVITIES OF FSIBL
10%
4% 19%
Education
Health
7% Disaster Management
26% Sports & Culture
Disabled Community
Others
34%
Figure 3: CSR activities of FSIBL - 2013
7% of the money to health, 34% to disaster management, 26 % to sports, 4% to disabled
community, and remaining 10% to other social activities.
Mercantile Bank Limited (MBL)
MBL believes that, true success does not consist in profit maximization only rather in
doing something for the betterment of deprived part of the society. With this vision, MBL
has established a foundation in the name and style, “Mercantile Bank Foundation” in
2000, just after a year of its inception, to work for the distressed and disabled people.
Actually, the foundation has been promoting a dialogue between the bank and its
community people. Since the inception, MBL Foundation took part in several social
welfare activities. MBL has been playing a very significant role in performing CSR
activities in different sectors, including education, health, environment, sports,
Humanitarian & disaster relief, Arts & Culture, and some of the important areas where
the bank carries out its social and philanthropic activities.
CSR ACTIVITIES OF MBL
17%
Education
31%
Health
10% Disaster Management
Sports
Art & culture
1% 7% Others
34%
Figure 4: CSR activities of MBL – 2013
In the year 2013, they contributed Tk. 83.10 million (see Table 1) in CSR activities where
(see Figure 1) 17% of the money is donated to education sector. They also donated 10%
of the money to health, 34% to disaster management, 7 % to sports, 1% to art & culture,
and remaining 31% to other social activities.
Janata Bank Limited (JBL)
Being one of the major State Owned commercial banks in Bangladesh, Janata Bank
Limited has also realized its responsibilities to the society and contributed to the
amelioration of the social life of the destitute people, infra-structure, environment etc.
They believe that it is its responsibility to improve the living standard of the poor people,
to try to alleviate poverty from the society and to contribute in the field of education,
health care, sports etc.
CSR ACTIVITIES OF JBL

1%
Education & Research
3%
7%
Health & Treatment
27%
14% Poverty Reduction &

Rehabilitation
Agriculture
3%
Art & Culture
13%
IT
32%
Natural Calamity
Figure 5: CSR activities of JBL -2013
In the year 2011, it has devoted Tk.292.28 million (see Table 1) for conducting its CSR
activities. The highest concentration sector contributed by JBL is Poverty reduction and
rehabilitation sector. It donated (see Figure 5) 32% of their total CSR donations to
Poverty reduction and rehabilitation sector. They also contributed 3% of total donation to
agriculture sector, one of the important sectors of our country, 27% to education, 13% to
health & treatment, 14% to art and culture, 7% to IT, 1% to natural calamities and 3% to
others sectors.
Rupali Bank Limited (RBL)
CSR initiatives of Rupali Bank Limited aim to make business more committed toward
social needs and national development through ethical, legal and commercial conduct.
RBL is performing CSR activities in different sectors, including education, health,
disaster, sports, industry, literature, and cultural sector.
CSR ACTIVITIES OF RBL
11% 15%
Education
Health
7%
Arts & Culture
1%
Disaster Management
33%
Sports
Liberation War
30% Other
3%
Figure 6: CSR activities of RBL - 2013
In 2013, RBL contributed Tk.23.56 (see Table 1) million to CSR activities. The highest
amount (33%) is being paid to liberation war sector. They also contributed 30% in
disaster management, 15% to education, 7% to health, 1% to Arts & culture, 3% to sports,
and remaining 11% to other social activities.
Table 1 and Figure 7 illustrated the total contribution to CSR activities of six banks in the
year 2013. Among the six banks IBBL has the highest contribution of Tk. 476.42 million
(37%). One of the leading contributors of CSR for the last few years, DBBL is in the
second position by contributing Tk. 301.495 million (23%). Other banks contribution is
quite in contrast to IBBL and DBBL. The lowest contribution made by Rupali Bank Ltd
is 23.56 (1%).
Table 1: Contribution to CSR Activities by Banks - 2013

(In millions)
Sectors DBBL % IBBL % FSIBL % MBL % JBL % RBL %
Agriculture - - - - - - - 10.00 3 - -
Education 135.67 45 133.40 28 23.34 19 14.00 17 79.53 27 3.53 15
Environment - 23.82 5 - - - - - - - -
Health 21.10 7 71.46 15 8.60 7 8.40 10 38.06 13 1.65 7
Social 6.03 2 - - - - - - - - - -
Development
Poverty 27.13 9 - - 4.91 4 - - 94.38 32 - -
reduction
and
Rehabilitatio
n
Arts and - 4.76 1 - - 0.24 1 39.76 14 0.24 1
Culture
Disaster 78.39 26 138.16 29 41.77 34 28.40 34 2.39 1 7.07 30
Management
Sports 3.02 1 81.00 17 31.94 26 5.80 7 - - 0.71 3
Communicat - - - - - - - - - - -
ion and Road
Safety
IT - - - - - - - 20.31 7 - -
Liberation - - - - - - - - - 7.77 33
war
Social 27.13 9 - - - - - - - - - -
Awareness
Others 3.02 1 23.82 5 12.29 10 26.30 31 7.85 3 2.59 11
Total 301.49 100 476.42 100 122.85 100 83.10 100 292.28 100 23.56 100
Contribution to CSR 2013

2% DBBL
IBBL
22% 23%
FSIBL
6% MBL
37%
JBL
10%
RBL
Figure 7: Contribution to CSR by Banks

6.2. Comparative Analysis of CSR Contributions
All the banks like to demonstrate that they are contributing to society, however if we
compare the amount with their income, it shows that the amount is very little. Table 2
shows the relationship between profit before tax and CSR contribution of these six banks.
Most of the banks have contributed a very insignificant amount to CSR in proportion of
their profit before tax. Among the 6 banks DBBL contribution is the highest, being 8.50%
of their profit in the year 2013. FSIBL is in the second position by contributing 8.03% of
their profit. IBBL, the highest contributor of 2013 contribute only4.30% of their profit.
Rupali bank is in the last position by contributing only 0.84% of their profit.
Banks 2013
Contribution Profit % of
to CSR before tax Profit
(in millions) (in millions)
DBBL 301.495 3,547.0 8.50
IBBL 476.42 11,074.76 4.30
FSIBL 122.85 1,529.12 8.03
MBL 83.10 3,228.70 2.57

JBL 292.28 10,625.32 2.75
RBL 23.56 2790.68 0.84
Table 2: Contribution to CSR in Proportion to Their Profit

7.1. Population Size

The population size of this study has been consisted of the official and customer of
DBBL. My target population is all official and client of DBBL, Jhawtala
SME/Agriculture Branch. The stratified probability sampling approach has been selected
for this study. For collection of primary data survey was conducted in june2013.
7.2. Sample Size

The sample frame of this study consists of the official and clients of DBBL. A total of 25
respondents was considered .The stratified probability sampling approach was selected for this
study.
7.3. Analysis of Data

For analysis of data used SSPS & Microsoft Excel in the personal computer. To entry
data coding option was used at the initial stage. The measure of correlation, hypothesis
testing, co-efficient, and descriptive analysis were applied in the analysis of data.
7.4. Types of Data

In this report, both types of data have been used for analysis-
 Qualitative data
 Quantitative data
Qualitative data as like the social awareness, concern about environment etc., statistical
data of different issues and findings of analysis as quantitative data has been used in this
report.
7.5. Budget
Time duration= 90 days
Name Taka
Transportation Cost 2000/-
Printing Cost 400/-
Phone Bill 200/-
Snacks 500/-
Total Expenditure 3100/-

7.6. Work Plan

To conduct the report I took 3 months and my work plan is given below:
Week Tasks
1 Week Hypothesis and Questionnaire
Development
3 Weeks Survey and Personal
Interview
3 Weeks Secondary Data collection
2 Weeks Data analysis and decision
making
3 Weeks Report preparation and
Submission
7.7. Procedure
In the data analysis I have utilized likert scale, which is consisted of strongly disagree,
disagree, neutral, agree and strongly agree. T test is followed in the analysis. Because we
know that if there are being less than 30 of sample size, T test is accepted. Although in
data analysis there are have less than 30 that means 25 of sample size, T test is utilized.
The respondent’s age group

Out of total respondents divided into four groups, there are (i) Below 18 (ii) 18 – 40 (iii)
41 – below 50 (iv) Above 50. Graphically presentations of respondent’s age group are
given below:
Age
90%
80%
70%
60%
50%
40% Age
30%
20%
10%
0%
Below 18 18-40 41 - Below 50 Above 50
The respondent’s gender

The total sample size is 25. Out of that 88% of respondents are male and remaining 12%
are female. In following represented graphically:
Gender
100%
80%
60%
Gender
40%
20%
0%
Male Female
The respondent’s Category

The total respondent is 25. Out of that, 60% are official and 40% are client. In following
represented graphically:
Respondent Category
70%
60%
50%
40%
Respondent Category
30%
20%
10%
0%
Official Client
7.8. Hypotheses to be tested
1. DBBL has greatest contribution in CSR activities.

2. Education sector get more priority than any other sector.
3. ‘Rural Health Service Program’ is helpful for general public.
4. Better health care facilities are provided at a cheaper cost for our disadvantaged
population.
5. Providing relief during various natural calamities.
6. Donation of 1, 00,000 blankets to the cold affected people of the country are
satisfactory.
7. Creating social awareness to protect the environment.
8. Perform proper responsibility in case of beautification of the city.
9. Overall CSR activities of DBBL are satisfactory.
HYPOTHESES TESTING
H1 H2 H3 H4 H5 H6 H7 H8 H9
5=strongly 14 11 5 0 12 1 3 2 5
agree
4=agree 11 14 19 15 13 6 21 16 20
3=neutral 0 0 1 10 0 18 1 5 0
2=disagree 0 0 0 0 0 0 0 2 0
1=strongly 0 0 0 0 0 0 0 0 0
disagree
TOTAL 25 25 25 25 25 25 25 25 25
Mean 4.560 4.440 4.160 3.600 4.480 3.320 4.080 3.720 4.200
Standard 0.507 .507 .473 .500 .510 .557 .400 .737 .408
Deviation
Table: Summary of the respondent towards hypothesis

HYPOTHESIS: 1
H0: DBBL has greatest contribution in CSR activities.
H1: DBBL has no greatest contribution in CSR activities.
H0: µ ≤ 5
H1: µ > 5
Here,  = 4.560, σ = .507
t= ( -)/(S/n) = - 4.342
One-Sample Statistics
Std. Error
N Mean Std. Deviation Mean
DBBL has greatest contribution in
25 4.5600 .50662 .10132
CSR activities
One-Sample Test
Test Value = 5
DBBL has greatest t DF Sig. (2- Mean 95% Confidence
contribution in CSR tailed) Difference Interval of the
activities Difference
Lower Uppe
r
-4.342 24 .000 -.44000 -.6491 -
.230
9
The critical t with 10 degrees of freedom, α = .05 and one-tailed is 1.812. Since, critical t
value (1.812)  observed t value (-4.342), so we fail to reject H0. So at 5% level of
significance, it can be said that DBBL has greatest contribution in CSR activities.
DBBLhas greatest contribution in

CSR activities
44%
56% Strongly Agree

Agree
Figure 1: Respondent view’s toward DBBL has greatest contribution in CSR activities.
HYPOTHESIS: 2
H0: Education sector get more priority than any other sector.
H1: Education sector get not more priority than any other sector.
H0: µ ≤ 5
H1: µ > 5
Here,  = 4.440, σ = .507
t= ( -)/(S/n) = - 5.527
Std. Error
Education sector get more
25 4.4400 .50662 .10132
priority than any other sector
One-Sample Test
Test Value = 5
Education sector get t DF Sig. (2- Mean 95% Confidence
more priority than any tailed) Difference Interval of the
other sector Difference
Lower Upper
-5.527 24 .000 -.56000 -.7691 -.3509
significance, it can be said that Education sector get more priority than any other sector.
Education sector get more priority

than any other sector
44%
56% Strongly agree

Agree
Figure 2: Respondent views toward Education sector get more priority than any
other sector.
HYPOTHESIS : 3
H0: ‘Rural Health Service Program’ is helpful for general public.
H1: ‘Rural Health Service Program’ is not helpful for general public.
H0: µ ≤ 5
H1: µ > 5
Here,  = 4.160, σ = .473
t= ( -)/(S/n) = - 8.887
Std. Error
‘Rural Health Service Program’
25 4.1600 .47258 .09452
is helpful for general public
One-Sample Test
Test Value = 5
‘Rural Health Service t DF Sig. (2- Mean 95% Confidence
Program’ is helpful for tailed) Difference Interval of the
general public Difference
Lower Upper
-8.887 24 .000 -.84000 -1.0351 -.6449
significance, it can be said that ‘Rural Health Service Program’ is helpful for general
public.
Rural Health Service Program' is helpful

for general public
4%
20%
Strongly Agree
Agree
76%
Neutral
Figure 3: Respondent views towards ‘Rural Health Service Program’ are helpful for general
public.
HYPOTHESIS : 4
H0: Better health care facilities are provided at a cheaper cost for our disadvantaged
population.
H1: Better health care facilities are not provided at a cheaper cost for our disadvantaged
population.
H0: µ ≤ 5
H1: µ > 5
Here,  = 3.600, σ = .500
t= ( -)/(S/n) = - 14.000
Std. Error
Better health care facilities are provided at a
25 3.6000 .50000 .10000
cheaper cost for our disadvantaged population
One-Sample Test
Test Value = 5
Better health care t DF Sig. Mean 95% Confidence
facilities are provided at (2- Difference Interval of the
a cheaper cost for our tailed Difference
disadvantaged ) Lower Upper
population.
-14.00 24 .000 -1.4000 -1.6064 -1.1936
significance, it can be said that Better health care facilities are provided at a cheaper cost
for our disadvantaged population.
Better health care facilities are

provided at a cheaper cost for our
disadvantaged population.
40%
Agree
60%
Neutral
Figure 4: Respondent views towards Better health care facilities are provided at a
cheaper cost for our disadvantaged population.
HYPOTHESIS : 5
H0: Providing relief during various natural disasters.
H1: Does not provide relief during various natural disasters.
H0: µ ≤ 5
H1: µ > 5
Here,  = 4.480, σ = .510
t= ( -)/(S/n) = - 5.527
Std. Error
Providing relief during various natural
disasters. 25 4.4800 .50990 .10198
One-Sample Test
Test Value = 5
Providing relief during t DF Sig. (2- Mean 95% Confidence
various natural tailed) Differenc Interval of the
disasters. e Difference
Lower Uppe
r
-5.099 24 .000 -.52000 -.7305 -
.309
5
significance, it can be said that providing relief during various natural disasters.
Providing relief during various natural

disasters.
48%
52% Strongly Agree
Agree
Figure 5: Respondent views towards providing relief during various natural disasters.
HYPOTHESIS : 6
H0: Donation of 1, 00,000 blankets to the cold affected people of the country are
satisfactory.
H1: Donation of 1, 00,000 blankets to the cold affected people of the country are not
satisfactory.
H0: µ ≤5
H1: µ > 5
Here,  = 3.320, σ = .557
t= ( -)/(S/n) = - 15.087
Std. Std. Error
N Mean Deviation Mean
Donation of 1,00,000 blankets to the cold
affected people of the country is 25 3.3200 .55678 .11136
satisfactory
One-Sample Test
Test Value = 5
Donation of 1,00,000 t DF Sig. (2- Mean 95% Confidence
blankets to the cold affected tailed) Differen Interval of the
people of the country is ce Difference
satisfactory Lower Upper
-15.087 24 .000 -1.68000 -.7691 -.3509

significance, it can be said that Donation of 1, 00,000 blankets to the cold affected people
of the country is satisfactory.
Donation of 1,00,000 blankets to the

cold affected people of the country is…
5%
27% Strongly agree
68% Agree
Neutral
Figure 6: Respondent views towards Donation of 1, 00,000 blankets to the cold

affected people of the country are satisfactory.
HYPOTHESIS : 7
H0: Creating social awareness to protect the environment.
H1: Dose not creates social awareness to protect the environment.
H0: µ ≤ 5
H1: µ > 5
Here,  = 4.080, σ = .400
t= ( -)/(S/n) = - 11.500
Std. Std. Error
N Mean Deviation Mean
Creating social awareness to protect the
environment. 25 4.080 .40000 .08000
One-Sample Test
Test Value = 5
Creating social t DF Sig. (2- Mean 95% Confidence
awareness to protect tailed) Differenc Interval of the
the environment. e Difference
Lower Uppe
r
- 24 .000 -.92000 -1.0851 -
11.500 .754
9
significance, it can be said that Creating social awareness to protect the environment.
Creating social awareness to protect the

environment.
4% 12%
Strongly agree
Agree
84%
Neutral
Figure 7: Respondent views towards creating social awareness to protect the

environment.
HYPOTHESIS : 8
H0: Perform proper responsibility in case of beautification of the city.
H1: Does not perform proper responsibility in case of beautification of the city.
H0: µ ≤5
H1: µ > 5
Here,  = 3.720, σ = .737
t= ( -)/(S/n) = - 8.683
Std.
Error
Perform proper responsibility in case of
beautification of the city. 25 3.7200 .73711 .14742
One-Sample Test
Test Value = 5
Perform proper t DF Sig. (2- Mean 95% Confidence
responsibility in case of tailed) Difference Interval of the
beautification of the Difference
city. Lower Upper
-8.683 24 .000 -1.28000 -1.5843 -
.9757
significance, it can be said that Perform proper responsibility in case of beautification of
the city.
Perform proper responsibility in case of

beautification of the city.
8% 8%
Strongly agree
20%
Agree
64% Neutral
Disagree
Figure 8: Respondent views towards Perform proper responsibility in case of beautification

of the city.
HYPOTHESIS : 9
H0: Overall CSR activities of DBBL are satisfactory.
H1: Overall CSR activities of DBBL are not satisfactory.
H0: µ ≤ 5
H1: µ > 5
Here,  = 4.200, σ = .408
t= ( -)/(S/n) = - 9.798
Std.
Error
Overall CSR activities of DBBL are
satisfactory. 25 4.2000 .40825 .08165
One-Sample Test
Test Value = 5
Overall CSR activities t DF Sig. (2- Mean 95% Confidence
of DBBL are tailed) Difference Interval of the
satisfactory. Difference
Lower Upper
-9.798 24 .000 -.80000 -.9685 -
.6315
significance, it can be said that Overall CSR activities of DBBL are satisfactory.
Overall CSR activities of DBBL are

satisfactory.
20%
Strongly agree
80% Agree
Figure 9: Respondent views towards Overall CSR activities of DBBL are satisfactory.
7.9. Correlations
Descriptive Statistics
Mean Std. Deviation N
DBBL has greatest contribution in 4.5600 .50662 25
CSR activities
Education sector get more priority 4.4400 .50662 25

than any other sector
Creating social awareness to protect 4.0800 .40000 25

the environment
Correlations
DBBL has Education sector Creating
greatest get more priority social
contribution in than any other awareness
CSR activities sector to protect
the
environment
DBBL has Pearson 1 .136 .181
greatest Correlation
contribution in
CSR activities Sig. (2-tailed) .516 .387
N 25 25 25
Education sector Pearson .136 1 .025
get more Correlation
priority than
any other sector Sig. (2-tailed) .516 .907
N 25 25 25
Creating social Pearson .181 .025 1
awareness to Correlation
protect the
environment Sig. (2-tailed) .387 .907
N 25 25 25

The Descriptive Statistics section gives the mean, standard deviation, and
number of observations (N) for each of the variables that is specified.
In the correlation table there are three numbers in these cells the top number is
the correlation coefficient. The middle number is the significance of this
correlation and the bottom number is the number of observations that were used
to calculate the correlation coefficient.
In the correlation table correlation coefficients (.136, .181, and .025) are close to
zero (0). This means that there is a weak relationship between these variables.
This indicates that, changes in one variable are not correlated with changes in the
second variable. The correlation coefficient also positive this means that as one
variable increases in value, the other variables also increase in value. Similarly,
as one variable decreases in value, the other variables also decrease in value.
In correlation table statistically significant correlation (.516, .387, .907) between

the variables are more than .05 it means that there is no statistically significant
variable do not significantly relate to increases or decreases in the other
variables.

8.1. Findings
8.1.1. General Findings:
 DBBL has greatest contribution in CSR activities.
 DBBL expended a large amount of their profit as CSR activities.
 These expenditures are increasing year by year.
 The practicing area of CSR in DBBL is mainly in education, health, Disaster

relief, Sports, Social awareness, And Social development.
 Considering education a most important tool for making any headway DBBL
places much contribution to education sector.
 The banking culture and environment is also favorable.
 DBBL extends free medical facilities under its “Rural Health Service Program” to
the members of the general public around the rural branches.
 DBBL promotes different donation program for develop the life styles of society.
 DBBL also promotes different socio-cultural and sports activities.
 DBBL is committed to meet the ethical values.
8.1.2. Findings according to the respondents’ opinion towards

hypotheses:
 At 56% respondents are strongly agreeing and 44% respondents are agreeing
with that DBBL has greatest contribution in CSR activities.
 At 44% respondents are strongly agreeing and 56% respondents are agreeing
with that Education sector get more priority than any other sector.
 At 20% respondents are strongly agreeing, 76% respondents are agreeing and
4% respondents are disagreeing with that ‘Rural Health Service Program’ is
helpful for general public.
 At 60% respondents are strongly agreeing and 40% are agreeing with that
Better health care facilities are provided at a cheaper cost for our
disadvantaged population.

 At 48% respondents are strongly agreeing and 52% are agreeing with that
DBBL Provides relief during various natural disaster.
 At 5% respondents are strongly agreeing, 27% are agreeing and 68% are
neutral with the statement that Donation of 1, 00,000 blankets to the cold
affected people of the country are satisfactory.
 At 12% respondents are strongly agreeing, 84% are agreeing and 4% are
neutral with the statement that DBBL Creates social awareness to protect the
environment.
 At 8% respondents are strongly agreeing, 64% are agreeing, 8% are
disagreeing and 20% are neutral with the statement that DBBL Perform
 At 20% respondents do strongly agree, 80% do agree with the statement that
proper responsibility in case of beautification of the city.
Overall CSR activities of DBBL is satisfactory.
8.2. Recommendation
DBBL can expand their business and broaden their sector of social responsibility by the
following terms:
 Primary school sector:

Primary school sector is very backward in our country. DBBL can nourish their social
responsibility in this root sector. They can offer scholarship or patronize this sector and
thus country can benefited as well as take a role of social responsibility by this sector.
 SME sector:
SME is also a root sector where this bank can apply credit formula or patronizing this
sector. Thus it can probably expand its social image. They also can supply credit at a low
interest rate that can improve this sector according to its social responsibility.
 Microcredit sector:
Microcredit is very popular among root people in our country. The main advantage of
microcredit is that a person can take loan without any security. If DBBL starts to give
microcredit than it will help the people a lot. On the other hand it will increase the social
image of DBBL.

8.3. Conclusion
As a third world country Bangladesh has lot of problems. Government often find
themselves helpless when it comes to solving of these problems. As business owners of
this country are considered as a part of the affluent section of the society they can
contribute more meaningfully towards of the betterment of the society. If more company
came forward to contribute to the society like DBBL, it will help to create their social
branding as well as helping the society. So we can say DBBL is a pioneer in Corporate
Social Responsibility because the idea of CSR is vastly expanded by DBBL at first.

Bibliography
Books:
C.R. Kothari, Research Methodology.
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Appendix
Questionnaire on CSR activities of Dutch-Bangla Bank Limited
Respondent’s Personal Information:

Name: …………………………………………………….
Age: Below 18 18 - 40 41 - below 50 Above 50
Gender: Male Female
Category of Respondent: Official Client
Contract No: …………………………………………………………………….
Questionnaire
Please put a tick mark on the appropriate number of your satisfaction level. Here, Highly
Agreed=5, Agreed=4, Neutral=3, Disagreed=2, Highly Disagreed=1.
V1 DBBL has greatest contribution in CSR activities 5 4 3 2 1
V2 Education sector get more priority than any other 5 4 3 2 1

sector
V3 Provide opportunity to rootless children for 5 4 3 2 1
education
V4 Helping development of infrastructural facilities 5 4 3 2 1
awarding scholarship & fellowship to meritorious
student
V5 Amount of scholarship(per month) in H.S.C & 5 4 3 2 1
Graduation level is satisfactory
V6 Contribution in other sector(i.e. organizing 5 4 3 2 1
Bangladesh physics Olympiad, Ganit Utsab) is
satisfactory
V7 ‘Rural Health Service Program’ is helpful for 5 4 3 2 1
general public
V8 Grants to organizations in treating Cleft- lips 5 4 3 2 1
V9 Better health care facilities are provided at a 5 4 3 2 1

cheaper cost for our disadvantaged population
V10 Support for medical treatment is satisfactory 5 4 3 2 1
V11 Contribution in health sector is satisfactory than any 5 4 3 2 1

other bank
V12 Providing relief during various natural disaster 5 4 3 2 1
V13 Feeding & clothing & rehabilitation of rootless 5 4 3 2 1

children
V14 Donation of 1,00,000 blankets to the cold affected 5 4 3 2 1
people of the country is satisfactory
V15 Infrastructure of sports & training at national level 5 4 3 2 1
is performed properly
V16 Donation to Bangladesh Olympic Association for 5 4 3 2 1
organizing the Bangladesh Games & various
tournament
V17 Sponsoring inaugural test match between 5 4 3 2 1
Bangladesh & India
V18 Promotion of different socio-culture & sports 5 4 3 2 1
activities are encouraging
V19 Providing accommodation for slum Dwellers 5 4 3 2 1
V20 Perform proper responsibility in case of 5 4 3 2 1

beautification of the city
V21 Publicity related to women’s right & anti dowry 5 4 3 2 1
practices
V22 Grant to organization engaged in treating acid 5 4 3 2 1
victim
V23 Creating social awareness to protect the 5 4 3 2 1
environment
V24 Providing technical & vocational training to labor 5 4 3 2 1
for export of HR
V25 Donation for participating NASA’s 4th annual 5 4 3 2 1
Lunabotics Mining Competition is creating a great
opportunity for BUET students to build up their
career
V26 Overall CSR activities of DBBL is satisfactory 5 4 3 2 1
………………………………………..
Signature of the Respondent & Date

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CSR Activities of Private Commercial Banks in Bangladesh: A Study on DBBL

Corporate Social Responsibility has been defined as “the integration of business

A successful CSR program cannot be achieved individually. CSR includes the

Department of Accounting and Information Systems, Comilla University. Page 1

1.2. Origin of the Study

1.3. Objectives of the Study

1.3.1. Specific Objective

1. To find out the CSR practice of banking sector in Bangladesh.

1.3.2. Secondary Objective

1. To get a broader overview of Corporate Social Responsibility.

1.4. Research Methodology

Research comprises of defining and redefining problem, formulating hypothesis or

Department of Accounting and Information Systems, Comilla University. Page 2

1.4.1. Methods of Data Collection

1.4.1.1. Primary Sources:

 Some primary data are collected by questionnaire.

1.4.1.2. Secondary Sources:

 Annual reports of Different Banks 2010,2011,2012,2013.

1.5. Limitations of the Study

 Time will be a major constraint in accumulating all sorts of information in an

Department of Accounting and Information Systems, Comilla University. Page 3

Department of Accounting and Information Systems, Comilla University. Page 4

2.1. Theoretical Background

2.1.1. Published works on CSR

Corporate social responsibility as a construct that ‘‘...encompasses the economic, legal,

Department of Accounting and Information Systems, Comilla University. Page 5

Chowdhury (2004) believes that, as a part of corporate governance. Corporate governance

Three major themes in research on corporate social responsibility (CSR) of particular

Department of Accounting and Information Systems, Comilla University. Page 6

2.3. Definitional Analysis of CSR

2.4. Concept of CSR

Department of Accounting and Information Systems, Comilla University. Page 7

 Voluntary initiatives going beyond legislative requirements and contractual

 Improve access to capital

2.5. Views of Social Responsibility

 The Classical View

Department of Accounting and Information Systems, Comilla University. Page 8

2.5.1. The Classical View

2.5.2. The Socio economic view

2.6. Importance of CSR

Corporate Social Responsibility: People, Planet and Profit

It is important to understand the legislative, policy and institutional frameworks that

CSR Standards and Practices

Department of Accounting and Information Systems, Comilla University. Page 9

characteristics of social responsibility. ISO 26000 therefore aims to integrate, implement

These standards motivate businesses to go beyond legal compliance, recognizing that

CSR focuses on achieving economic success through responsible corporate governance in

2.7. Roles of CSR

Department of Accounting and Information Systems, Comilla University. Page 10

2.7.1. Common roles of CSR in Community Development

 To share the negative consequences as a result of

 Closer ties between corporations and community:

 Helping to get talents:

Department of Accounting and Information Systems, Comilla University. Page 11

 Role in transfer of technology (TOT):

 CSR helps to protect environment:

Department of Accounting and Information Systems, Comilla University. Page 12

 CSR is for human right corporate sustainability:

 Interdependency between a corporation and community:

 A CSR program can be seen as an aid to alleviate poverty:

Department of Accounting and Information Systems, Comilla University. Page 13

 A CSR program helps in data gathering for other public

 For corporate sustainability goals: