Chapter 01- Introduction of the study

1.1 Introduction
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. 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. 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 companys conduct into the
companys 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.

1.2 Objectives of the study:

The objectives of the study are as follows:

To identify the major types of CSR at Robi.

To identify the public feedbacks of CSR activities.
To identify major problems in excluding CSR activities.
To recommended probable solutions of the problems.

1.3 Rationale of the Study

As professional degree holders under the School of Business, BBA students
are the future managers of organizations. A BBA graduate student also
requires that they get exposure to International Management & Marketing
aspects. In this connection I have chosen a multinational company for my
thesis, which is one of the leading telecom companies of Bangladesh. I
consider myself very lucky to work in the large company where I got the
exposure to international-level standards of marketing management
activities in a highly competitive and dynamic business environment.
However, it is also beneficial for both the students & organization to upsurge
relationship among them for further opportunities. After successful completion
of working with an organization, a thesis is to be submitted to both on-site
supervisor as well as academic supervisor for evaluation Here I will try to find

out how much Robi fulfill the CSR activities. And i wrote the needs of the
study and try to show the logic how my study will be beneficial for the
society.

1.4 Methodology
This study will based on Primary & Secondary data however majority of
the data will be collected from secondary sources. Those primary and
secondary sources are as follows:
Primary Sources of data:

Observation during total thesis period.

Involvement with the direct CSR activity of Robi.
Interviewing public about CSR.

Secondary sources of data:

Different daily newspapers.
News letter of _ Robi publications for customers.
Internal publication of Robi employee.
Different websites.

1.7 Limitations of the study:

The limitation is described in below:
Time frame for the research was very limited. The actual survey
was don within a short period.
Unavailability of written documents as to require fo making
comprehensive study.
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
larger. It would be more correct if the study conduct with large
information sources.
Time will be major constraint in accumulating all sorts of
information in an organized way.

Chapter 03-Theoretical Overview

3.1 Concept of Corporate Social Responsibilities:
Definitions, "CSR is about capacity building for sustainable livelihoods. It
respects cultural differences and finds the business opportunities in building
the skills of employees, the community and the government" from Ghana,
through to "CSR is about business giving back to society" from the
Philippines.

Philip Kotler and Kevin Lane Keller urge that, Raising the level of socially
responsible marketing calls for a three-pronged attack that relies on proper
legal, ethical, and social responsibility behavior.
Corporate social responsibility (CSR, also called corporate conscience,
corporate citizenship, social performance, or sustainable responsible
business/ Responsible Business is a form of corporate self-regulation
integrated into a business model. CSR policy functions as a built-in, selfregulating mechanism whereby a business monitors and ensures its active
compliance with the spirit of the law, ethical standards, and international
norms. In some models, a firm's implementation of CSR goes beyond
compliance and engages in "actions that appear to further some social good,
beyond the interests of the firm and that which is required by law." CSR is a
process with the aim to embrace responsibility for the company's actions and
encourage a positive impact through its activities on the environment,
consumers, employees, communities, stakeholders and all other members of
the public sphere who may also be considered as stakeholders.

3.2 CSR in Historical Perspective:

CSR is a concept whereby companies integrate social and environmental
concerns in their business operations and in their interactions with their
stakeholders on a voluntary basis. (Green Paper, 2001) Socially responsibility
means not only fulfilling legal expectations, but also going beyond
compliance and investing more into human capital, the environment and in
rapport-building with stakeholders. It is relevant in all types of companies
and in all sectors of activity, from MSMEs to Multinational Enterprises (MNEs).
A number of companies with good social and environmental records indicate
that these activities can result in better performance and can generate more
profit and growth. (Green Paper, 2001) Research (Industry week, 15 January
2001) has shown that about one half of the above average performance of
socially responsible companies can be attributed to their CSR image while
the other half is explained by their performance. Socially responsible
companies are expected to deliver above-average financial returns. (Green
Paper, 2001) CSR has some internal dimensions such as: human resources
management, health and safety at work, adaptation to change and
management of environmental impact and natural resources. The external
dimensions include local communities, business, partners, suppliers and
consumers, human rights and global environmental concerns. Again, CSR
may be as simple as sponsoring social service oriented entertainment
events. In essence, CSR is positive rapport with the society.

In a

Bangladesh context, several multinational companies and local companies

practice CSR. While the multinationals are influenced by their own ESRB
disposition, most of the business concerns in Bangladesh do not rate high in
practicing CSR unless being pressured by the foreign buyers in case of export
oriented business.

3.3 Types of CSR:

Corporate social responsibility covers a very broad area that affects
the following: Society (public accountability, health and safety, human
rights and community), Environment (pollution, reduction of resources, and
impact of output and optimization of waste/reuse), and Economy (fiduciary
duty and contribution to economic prosperity).
There are six distinct types of corporate social responsibility that fall
into targeted categories:

Cause Related Marketing

Corporate Social Marketing

Cause Promotions

Corporate Philanthropy

Community Volunteering

Social Responsible Business Practices.

3.4 Benefits of Corporate Social Responsibility:

Create Shareholders Value:

Investors are becoming more concerned to invest in companies that act

with good corporate governance and social responsibility. Increasingly, a
companys performance as a responsible business is key to its financial
and stock market standing, helping to protect it from instability and
share price volatility.

Increased Revenue Base

CSR can boost factors that drive revenue in important ways. CSR
initiatives and cause-related marketing could build reputation and goodwill
among suppliers and customers. Employees who identified with the social
mission are likely to be motivated, committed and more prepared to make
sacrifices as a team member.

Lower Business Risk

Companies are being held increasingly accountable for their actions today.
Such business risk could affect reputation, access to capital and even longterm

viability

in

some

instance.

Proactive

dialogue

with

external

stakeholders can help to foster understanding, in preempting and

minimizing the repercussions.

Brand differentiation & customer retention:

In crowded marketplaces, companies strive for a unique selling proposition
that can separate them from the competition in the minds of consumers.
CSR can play a role in building customer loyalty based on distinctive
ethical values.

3.5 CSR Implications to Business Activities:

Companies are facing the challenges of adapting effectively to the changing
environment in the context of globalization and in particular in the export
sector. Although Consumer Rights Movement, enforcement of government
regulations and a structured view regarding the economic importance of CRS
are not yet so widespread in the corporate world in Bangladesh, companies
have gradually attaching more importance to CSR in the local market as well.
They are increasingly aware that CSR can be of direct economic value.
Companies can contribute to social and environmental objectives, through
integrating CSR as a strategic investment into their core business strategy,
management instruments and operations. This is an investment, not a cost,
much like quality management. So, business organizations can thereby have
an inclusive financial, commercial and social approach, leading to a long
term strategy minimizing risks linked to uncertainty.

3.6 CSR as Community Development:

CSR in Bangladesh can also contribute a lot to community development. The

corporate house can develop the community by creating employment,
providing primary education, contribution to infrastructure development like
road and high-ways and addressing environmental concerns. This is more
relevant for a country like Bangladesh where the government interventions
in these fields being augmented by corporate alliance can go a long way in
developing the economy, society and environment.

3.7 CSR Applications and Realities in Bangladesh:

CSR concepts and practices in Bangladesh have a long history of

philanthropic activities from the time immemorial. These philanthropic
activities included donations to different charitable organizations, poor
people and religious institutions. Till now, most of the businesses in
Bangladesh are family owned and first generation businesses. They are
involved in the community development work in the form of charity without
having any definite policy regarding the expenses or any concrete motive
regarding financial gains in many instances. Moreover, most of the SMEs fall
under the informal sector having low management structure and resources
to address the social and environmental issues. These limitations drive the
top management of local companies to think only about the profit
maximization rather than doing business considering the triple bottom line:
profit, planet and people (CSR definition of Lotus Holdings). The discussions

on CSR practices in Bangladesh in its modern global terms, are relatively

new, but not so for the concept itself. Because, being a part of the global
market, it is difficult to ignore CSR standard specifically in the export sector.
In general, it is true that in Bangladesh, the status of labor rights practices,
environmental management and transparency in corporate governance are
not satisfactory, largely due to poor enforcement of existing laws and
inadequate pressure from civil society and interest groups like Consumer
Forums.

Globally, as CSR practices are gradually being integrated into

international business practices and hence is becoming one of the

determining factors for market accesses, it is becoming equally instrumental
for local acceptability. A focus on CSR in Bangladesh would be useful, not
only for improving corporate governance, labor rights, work place safety, fair
treatment

of

workers,

community

development

and

environment

management, but also for industrialization and ensuring global market

access. Since, CSR entails working with stakeholders it is important to work
from within and diagnose the stakeholders; concerns so that CSR is truly
embedded in the companies. By now, many CSR dimensions are practiced in
Bangladesh. The SMEs largely depend upon export. The US and EU buyers
set guidelines to RMG industry to ensure the standards. The 1992 Hrkins Bill
and subsequent consumer and industry boycott of RMG products by USA and
the consequent remedial moves by local RMG sector is one example.
Moreover, some buyers from EU visited the sites of recently collapsed
garments factories. A temporary ban was also imposed on Shrimp export to
the EU on health and hygienic standard and appropriate remedial action
followed in that instance too. But, some of the exporters found difficulty in
convincing the US/EU buyers to have positive attitude towards Bangladesh
due to inadequate CSR practices,

Lack of enforcement of Industrial Laws and Regulations, weak unions,

absence of consumer rights groups and high level of corruption within the

regulatory bodies make CSR violation rampant in Bangladesh. Two most

significant foreign exchange sources is the RMG sector and the overseas
manpower

export.

Unbelievably

low

compensation,

working

hours,

health/hygiene/sanitation conditions, fire safety and various types of abuse

are so common and to the extent of inhumanity that wild shock any
conscientious individual to the core. Recently, the RMG sector employees
have embarked on a industry wide movement to establish their rights.

Overseas workers are mostly exploited by recruiting agencies whereas these

rural and mostly illiterate people have to sell all their belongings becoming
paupers of lend money at very high interest. Owing to cheating by the
recruiters and unlawful behavior by the overseas employers, many of them
get compelled to come back as beggars, some after long confinement in
overseas jails. Hardly any remedy is available from the law enforcing
agencies.

Many industrial units run with half-century old machinery producing fatal air,
soil and water pollutions. More modern factories also dont care to install
Effluent Treatment Plants.

Starting from FMCGs, vegetables, fruits and all other conveyable goods,
adulteration, abnormal ripening at times with poisonous elements, keeping
fish fresh with applying deadly Formalin and all other malpractice is rampant
and carefree. Good Governance and efficient law enforcing agencies can only
solve these plights.

3.8 Prospects and Future of CSR in Bangladesh:

Bangladesh is a developing country. Because of global competitiveness and

demand, the CSR practices and standards are being implemented in
Bangladesh. But we are yet go a long way. There are challenges to
implement CSR properly in Bangladesh. Ultimately CSR practices should be
better practiced in Bangladesh for better and enhanced performance. In the
publication Good Governance and Market-Based Reforms: A Study of
Bangladesh, Fara Azmat and Ken Coghill relates Good Governance with CSR
by discussing the good governance indicators of regulatory quality, rule of
law and control of corruption in the context of Bangladesh and analyses how
lack of good governance indicators affects the success and sustainability of
reforms and contributes to the lack of business ethics and CSR in
Bangladesh.

3.9 CSR Perceptions of Business Community in

Bangladesh:

AT a Roundtable organized by CSR Center of Bangladesh Enterprise Institute,

held on Thursday, 23 February, 2006, speakers identified dearth of expertise,
poor accountability as major obstacles to obstacles to practicing CSR in
Bangladesh. They elaborated that lack of expertise and poor accountability
of corporate houses are obstacles to implementation of CSR in Bangladesh.
The speakers also said many CSR activities by Bangladeshi corporate houses
are centered mainly around publicity and short-term implications. The BEI
roundtable on CSR titled Corporate Social Responsibility Practices and
Challenges in Bangladesh was a part of its 'Dialogue Series on CSR in Action'.
Sanjiv S Mehta, chairman and managing director of Unilever Bangladesh Ltd,
Mohammad Abu Musa, deputy managing director of Dhaka Bank Ltd, and
Mohin Khan, executive assistant (Board Affairs) of BRAC, spoke at the
discussion.
BEI President Farooq Sobhan said corporate entities should understand what
CSR is and
Why it is important. The private sector enterprises will remain weak unless
and until they practice CSR in their ventures, the BEI president said, adding
that when it comes to adopting good corporate governance, Bangladeshi
companies are lagging far behind those in India, Pakistan and Sri Lanka.
"Properly implemented CSR programmers help the companies meet legal
and societal expectations and benefit governments, employees, citizens and
businesses, noted Farooq. On the other hand, poorly implemented CSR
programmers are nothing but public relations exercises, he mentioned.
Representatives of Unilever Bangladesh, Dhaka Bank and BRAC briefed the
roundtable about their CSR activities. Around 20 high-level executives from
local and international corporate houses and donor agencies participated in
the roundtable.