Case study: Corporate Social Responsibility of Dutch Bangla Bank

Prepared by:

Prepared for: MjB

Course: Mgt-210

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Abstract:

In this article, we have tried to give a comparative picture of corporate social

responsibilities (CSR) of DBBL. We also defined what corporate social responsibilities and tried

to show how important it is in this 21st century. Along with these, a short description of DBBL’s

activities are included to make clear the CSR of its. Throughout the article, the activities of

DBBL on CSR have worked as standard and helped in finding the shortcomings of the bodies in

Bangladesh. They have been helping in tracing out different ways for improvements. In

conclusion we can say that there are not only problems but also opportunities for further

improvement by the business world of this country in the field of CSR.

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Table of content

Topic Page number

Introduction 4

Corporate social responsibility 5

Views of social responsibility 7

Why are we choosing DBBL 8

Mission, Vision, Objective 9

social responsibility & Economic performance 10

Recognition 14

SWOT assessment 15

Recommendation 17

Conclusion 18

Bibliography 19

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Introduction:

Social responsibility is a concept well known in the corporate world and beyond that.

Business 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 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.

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Corporate Social Responsibility:

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 and 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.

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In general, CSR is characterized by the following aspects:

Responsible entrepreneurship

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

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Views of Social Responsibility

There are two views of social responsibility. Those are

The Classical View

The Socioeconomic view

The Classical View

The view that management only responsibility is to maximize profits. Some big companies such

as Beximco Group, Abul Khair Group don’t contribute broadly in corporate social responsibility.

The Socioeconomic View

This is the modern views of today’s global business of economy. In this view management’s

social responsibility goes beyond making profit to include protecting and improving society’s

welfare. Some companies such as Abdul Monem Limited, Unilever, Dutch Bangla Bank etc.

spends huge amount of money for the society.

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Why are we choosing Dutch-Bangla bank (DBBL):

Dutch-Bangla Bank Limited (DBBL) is Bangladesh's most innovative and

technologically advanced bank. DBBL stands to give the most innovative and affordable banking

products to Bangladesh. Amongst banks, DBBL is the largest donor in to social causes in

Bangladesh. It stands as one of the largest private donors involved in improving the country.

DBBL is proud to be associated with helping Bangladesh as well as being a leader in the

country's banking sector.

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Mission:

Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a

commitment to social responsibility. "Profits alone" do not hold a central focus in the Bank's

operation; because "man does not live by bread and butter alone".

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.

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 esteemed clientele,

Dutch-Bangla Bank intends to pave the way for a new era in banking that upholds and epitomizes its

vaunted marquees "Your Trusted Partner"

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Social Responsibilities and Economic performance

The ethos of DBBL for pursuing its activities in social arena has got further momentum with

your enthusiasm and support. Dutch-Bangla Bank Foundation (DBBF) is consistently pursuing

its objective of being active in those social areas where it is needed most. The Foundation carries

out diverse social and philanthropic activities in the field of education, health, conservation of

nature, creation of social awareness, rehabilitation of distressed people and such other programs

to redress human sufferings. It also promotes different socio-cultural and sports activities. Board

of Directors in order to discharge its corporate social responsibilities in a greater perspective

continued its contribution amounting to 5.00% of Bank's profit after charging loan loss provision

to Dutch-Bangla Bank Foundation (DBBF).DBBL is socially responsible in various ways. It is

helping the society in the following ways:

Education

Health

Information technology

Disaster

Donation

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Here is the description of all the activities of DBBL does as CSR in different field.

Education

To grant, pay or give, award scholarship, stipends, prizes, rewards, allowance and other

financial assistance or help in cash or kind to students with a view to help them in

prosecuting their study in universities, schools, colleges, educational institutions,

technical institutions, art schools, institutions of teaching commercial and training,

research or educational works in Bangladesh or abroad subject to such terms and

conditions as shall from time to time be prescribed by the Board of Trustees for

advancement and promotion of education.

Below are some of the recent activities of DBBL in the form of CSR in education Sector.

DBBL awards Fellowships to pursue M. Phil, Doctoral & Post Doctoral Degree

Dutch-Bangla Bank donates Tk. 9.73 crore to Dhaka University

DBBL has awarded scholarship to meritorious including 10 physical disabled students

DBBL has awarded scholarship to 200 meritorious and needy students

Scholarship program for the meritorious and needy students

Blind Education and Rehabilitation Organization (BERDO)

DBBL donates books for Bangabandhu Sheikh Mujib Medical University

DBBL has donated books for Dhaka University Central Library

DBBL has donated a Pick-up Van to Bangladesh Agricultural University

DBBL awards scholarships to the meritorious and needy Students

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Health

To establish, promote, set-up, maintain, assist, financial support and /or aid to or to help in the

setting up and / or maintaining and / or running schools and other institutions, orphanages,

widow homes, lunatic, asylums, old homes, poor houses or other establishments for relief and /

or help to the poor, old and infirm people and / or destitute or to give, provide and / or render

help and assistance in cash or kind to poor and or destitute, widows, etc; or to give, provide and I

or render help and assistance to and / or implement any scheme for providing livelihood and

upliftment of the poor.

Below are some of the recent activities of DBBL in the form of CSR in Health Sector.

DBBL distributes the Treatment Cards to 50 HIV/AIDS positive patients

HIV/AIDS Assistance Program

Smile Brighter Program

Support to ACID & Dowry Victims

Vesico Vaginal Fistula (V.V.F) operation to improve women reproductive health

DBBL donates a DNA detection machine to Bangabandhu Sheikh Mujib Medical University

DBBL has donated an amount of Tk. 9.36 crore to Diabetic Association of Bangladesh

DBBL stands by disabled and underprivileged children

DBBL has donated an Endoscope machine to National Medical College & Hospital

DBBL Smile-Brighter program starts in Dhaka City

DBBL provides medical supports to HIV/AIDS patients

DBBL has organized a 4 day-long plastic surgery operation in Faridpur

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Information Technology

Dutch-Bangla Bank Limited (DBBL) undertakes a project with BASIS (Bangladesh Association

of Software and Information Services) to award the best IT uses by Bangladeshi companies.

In this regards, DBBL's contribution in supporting this event was 50% of the estimated cost with

Tk. 6.25 Lakh.

Disaster

To give, provide and / or render monetary and / or other help and assistance for the relief of

persons and animals affected by natural and other calamities such as flood, fire, famine, cyclone,

earth-quake, storm, accident, pestilence, drought, epidemic, etc.

Below are some of the recent activities of DBBL in the form of CSR during Disaster.

DBBL has donated Tk. 25 lakh for the victims of devastating landslides in Chittagong  

DBBL donates 130 bundles of GCI sheets to Noakhali district  

DBBL donates 700 bundles of high grade GCI sheets to Gaibandha and Rangpur districts

DBBL has distributed blankets among the cold-affected people            

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Donation

DBBL always donate large sum of money in different organizations, hospitals, sports, etc.

Below are the some of the recent and big donation s of DBBL.

Tk.4 crore for setting up a modem cancer hospital to Ahsania Mission Cancer Society.

Tk.1 crore for setting up a modern cancer hospital to Bangladesh Cancer Society.

Tk. 3 crore to Bangladesh Olympic Association

Tk.1.20 crore for setting up a pediatric hospital to provide service to low income people.

Tk.15,00,000/= to Rotary Club of Metropolitan Dhaka to purchase a modern equipment

for the hearing impaired children

DBBL Recognition

  DBBL has received Asian CSR Award-2005

Dutch-Bangla Bank Limited has won Asian CSR Award-2005 for its outstanding program on

Corporate Social Responsibility (CSR). Mr. Yeasin Ali, Managing Director, DBBL is seen

receiving Asian CSR Award-2005 from the Chief Guest, Dr. Juwono Sundarsono, the Honorable

Minister for Defense, the Republic of Indonesia at a ceremony held on September 09, 2005 in

Jakarta.

   

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SWOT Assessment

Dutch-Bangla Bank started operation is Bangladesh's first joint venture bank. The

focus of the bank has been financing high-growth manufacturing industries in Bangladesh. It was

the first bank in Bangladesh to be fully automated. DBBL's other focus is Corporate Social

Responsibility (CSR). DBBL is the pioneer in this sector and termed the contribution simply as

'social responsibility'. The company’s strategic goals are:

To delight their customers

To build new era in banking

To expand market boundaries

To provide superior shareholders r e tu rns and to be a responsible

business.

Corporate social Responsibility (CSR) activities require a total understanding of

stakeholder’ expectations and DBBL takes actions to meet these expectations where they

are realistic and legitimate.’ The c o m p a n y a l s o recognizes the importance of clear

sense of corporate vision and values. Its group and local teams work effectively with core

business functions to ensure CR is properly managed throughout the entire company.

Figure1 - summarizes t h e ma in strengths, weaknesses, opportunities and threats which are

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assessed below.

Recommendation:

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Dutch-Bangla Bank now perform their social responsibility in some selected sector. Its have a

separatr foundation called Dutch-Bangla Bank foundation. The bank donates mainly towards

social awareness programs, medical and educational fields. DBBL also maintains the largest

scholarship program in Bangladesh whereby college/university education tuition and expenses

are fully paid for unconditionally by the bank. But they 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 it’s social image. They also can

supply credit at a low interest rate that can improve this sector according to it’s 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.

CONCLUSION:

As a third world country Bangladesh has lot of problems. Government often find themselves

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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 in our country.

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Bibliography

http://en.wikipedia.org/wiki/Dutch_Bangla_Bankhttp://www.oppapers.com/essays/Swot/184552www.dbbl.bd.com

Management, 8th Edition; by Stephen P.Robbins/ Mary Coulter

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