1.

Introduction
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. By the
time being the definitions and explanations of CSR have become more positive, with increasing
understanding of the benefits that can be obtained through successful implementation by
organizations. Nowadays, most of the multinational companies also have a senior manager
explicitly charged with developing and coordinating the CSR functions.
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.
In developed countries it has been observed that the financial institutions and other business
sectors are encouraged to contribute in various forms of CSR activities. There are also lots of
legal bindings which indirectly forces the company to contribute to CSR activities. The
government also offers many types of incentives to those who take part in CSR activities.
However, it is regretful that though internationally it is being practiced widely, Bangladesh is
still lagging behind in CSR activities. In fact, CSR is a matter of self interest for the corporate
sector in Bangladesh. Still, among the corporate houses banks have shown comparatively better
tendencies to accomplish CSR activities. Bangladesh Bank as the central bank in Bangladesh has
taken initiatives to motivate the banking companies to play role toward the welfare of the society
by ensuring CSR. Keeping this fact in mind, this study is an attempt to explore to what extent a
bank in Bangladesh is engaged in CSR activities.
The study is conducted with the objectives of exploring the types of CSR activities carried out by
different organizations in Bangladesh. Concentration of this study has been given to the CSR
activities done by the financial organizations especially by the Dutch Bangla Bank Limited.

6|Page

2. Objectives
The main objective of this paper is to explore the corporate social responsibilities in Bangladesh
and to evaluate the practice of CSR in banking sectors of Bangladesh with special focus on
Dutch Bangla Bank Limited. Other secondary objectives are mentioned as under:
i.

To acquire subjective perceptions about various CSR tasks of financial sector in

Bangladesh.

ii.

To find out the major areas where CSR activities are performed by the banks in
Bangladesh.

iii.

To compare and analyze the contribution of Dutch Bangla Bank Limited in CSR
activities in different areas with other banks.

3. Methodology of the Study

The study is based on secondary data which are collected from annual reports of the concerned
bank and CSR related publications, research papers, and study on CSR, websites of banks and
other financial institutions as well as from the websites of regulatory bodies. This report is
focused on CSR activities carried out by the Dutch Bangla Bank Limited in Bangladesh.
4. Literature Review
Corporate Social Responsibility is a concept whereby companies integrate social and
environmental concerns in their business operations and in their interaction with their
stakeholders on a voluntary basis (Gray et. al.1987). According to (Rana et. al. 2012), social
responsibility is a concept well known in the corporate world and beyond that. Business all over
the world have practiced only profit making action sat 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. A companys sense of responsibility towards the community and environment (both
ecological and social) in which it operates called corporate social responsibility. Companies
express this citizenship (1) through their waste and pollution reduction processes, (2) by
contributing educational and social programs and (3) by earning adequate returns on the
employed resources (Yunus, Kabir & Rahman). In contrast to this, Christian Aid (2004) defines
CSR as an entirely voluntary, corporate driven initiative to promote seas a substitute for
regulation at either a national or international level. Dusuki & Dar (2005) argued that Corporate
Social Responsibilities outline the standard of behavior to which a firm must subscribe to impact
society in a positive and a productive manner at the same time as abiding by values which
exclude profit seeking at any cost.
Helg (2007) noted that CSR has the potential to make positive contributions to the development
of society and businesses. Drucker (1954) has found a close link between firm's profitability and
its social responsible activities. He stated that It is not enough to do well; it must also do good.
But in order to do good a business must first do well. Drucker's view incorporated the views
of Friedman and Freeman.

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In recent times, Corporate Social Responsibility has become an ever-increasing and interesting
field of study by researchers and practitioners. However, a complete definition of CSR is, indeed,
elusive and opinions vary. Oketch (2005) defined CSR as a function that transcends but includes
making profits, creating jobs and producing goods and services. Some researchers argue that it
has come to mean the positive actions that a company takes to discharge its responsibilities to
external stakeholders; while other definitions include financial performance as an aspect of CSR.
In line with this, a wide range of behaviors are categorized under CSR including cause-related
marketing, sponsoring charitable events, offering employee volunteerism programs, making
charitable donations, utilizing environmental initiatives and demonstrating a commitment to
health and safety issues (Maignan & Ralston, 2002). Carroll (1979) designed a four-part
conceptualization of CSR that included economic, legal, ethical and philanthropic elements.
Carroll model entails that all business responsibilities rely upon the economic responsibility,
which includes maximizing profitability and maintaining a strong competitive position. Legal
responsibilities state firm's compliance with laws and regulations while doing business. Ethical
responsibilities replicate societal standards, expectations and norms that have not been
specifically legislated. Finally, philanthropic responsibilities comprise actions that are in
response to society's expectation that businesses be good corporate citizens. These are
distinguished from ethical responsibilities in that they are of a charitable nature and as such, a
company is not considered unethical if it does not provide them (Carroll 1991).
A very popular definition of CSR by Lord Holme and Richard Watts in the World Business
Council for Sustainable Developments publication Making Good Business Sense the
continuing commitment by business to behave ethically and contribute to economic development
while improving the quality of life of the workforce and their families as well as the local
community and society at large (www.wikipedia.com).
Till today, most of the businesses in Bangladesh are family owned and first generation
businesses. Businesses are involved in community development work in the form of charity
without having any definite policy about the expenses or any solid motive regarding financial
gains in many instances. (Mondol, 2007). It is evident that the importance of CSR in the first
world, questions regarding the extent to which corporations operating in developing countries
have CSR obligations are still to be worked out. (Jamali and Mirshak, 2007). There has been
increasing pressure on national and multinational corporations in Bangladesh to consider the
social implications of their actions (Belal, 2001). CSR practices in Bangladesh are still in
infancy. Companies are getting aware of it because being a part of global market, it is really
difficult to ignore CSR standard particularly in the export sector. Most of the companies
operating in Bangladesh especially financial institutions are trying to involve directly or
indirectly with CSR.
In a study Corporate Social Disclosure in Bangladesh: A Study of the Financial Sector Azim et
al. (2011) argued that corporate social responsibility is not the only ethical dilemma that
financial institutions face in an atmosphere of corrupt corporate practice. These institutions are
also concerned with commitment for sustainable development. A well-functioning finance sector
in any country can contribute directly to a healthy economy. This sector plays an important role
in a countrys economic development. Increasingly, are under pressure, often from activist non8|Page

governmental organizations, to take on specific corporate social responsibility obligations. But

the fact that CSR is being demanded and occasionally conceded does not ensure clarity about
either its rationale or the ways in which it should be undertaken (Bhagwati, 2010). Obalola
(2008) in his study found Nigerian Insurance industry has a strong support for social
responsibility and the translation of this support into action through involvement in some
community based projects. Evidence from the study also suggests that social responsibility is still
largely perceived as a philanthropic gesture. Visser (2005) argued that CSR in developing
countries to represent the formal and informal ways in which business makes a contribution to
improving the governance, social, ethical, labor and environmental conditions of the developing
countries in which they operate, while remaining sensitive to prevailing religious, historical and
cultural contexts.
Victoria and Mahboob (2009) explored the nature and extent of CSR reporting in the
conventional banking sector in Bangladesh and to assess the need to improve CSR by such firms.
Wise & Mahboob Ali (2010) further extends their work by concentrating to the nature and extent
of corporate social responsibility disclosure in the banking sector in Bangladesh.
Thus, this paper attempts to reveal the extent to which the companies in Bangladesh specially the
banking companies are practicing CSR with a major focus on Dutch Bangla Bank Limited
(DBBL) and disclosing relevant information in their annual reports.

5. CSR Practice in Bangladesh

In Bangladesh business organizations whether it is sole proprietorship, partnership, private or
public companies, MNCs all had been contributing to the welfare of society in the form of CSR
in informal and small extent till 2008.There are many Bangladeshi and foreign NGOs those have
been working for the welfare of the society as well but their work do not fall under the definition
of CSR in straight way. On 1st June 2008 Bangladesh Bank (BB) declared a guideline in the
name of mainstreaming corporate social responsibility in banks and financial institutions in
Bangladesh. Through this circular CSR had been brought under the regulatory watch for the first
time in Bangladesh initially for the banks and financial institutions. Later on 5th July 2011
National Board of Revenue (NBR) circulated a Statutory Regulatory Order (SRO) numbered 229
on Corporate Social Responsibility. NBR has given an opportunity to all the private, public and
MNCs to get 10% tax rebate advantage on total tax liability of the companies by spending in
some specified sectors or purposes defined by it. Both BB and NBR have not made the spending
in the name of CSR mandatory for the companies. Rather regulatory bodies are providing
incentive and reward for spending in CSR activities.
Bangladesh has a long history of philanthropic activities which included donations to different
charitable organizations, poor people and religious institutions. Many schools, colleges and
religious institutions were established with charitable donations from wealthy philanthropists.
But sustainability and CSR practice in business organizations is a new concept in Bangladesh.
There are labor, industrial and environmental laws in the country enforceable to business and
industrial sectors. But poor enforcement of the existing laws and inadequate pressure from the
stakeholders leads to unsatisfactory status of labor rights practices, environmental management
and corporate governance.
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Globally CSR and sustainability are becoming integral part of business practices. Health,
environment and labor rights issues have become important conditions for market accesses to
western countries. So Bangladesh, like other exporting countries, needs to comply with certain
international health, environment and labor standards. Bangladesh is a major garments exporting
country and core buyers are the USA and EU. Importers have imposed compliance standards for
Readymade Garment (RMG) industry to ensure minimum working condition standard. Under
pressure from the US trade unions, the USA Congress enacted the Harkins Bill (1992) to force
RMG exporters of Bangladesh to comply with labor practices including prohibition of child
labor. Responding to the demand of importers, local producers had taken many steps to improve
the situations including relocation of industries outside of residential areas, specious factory
building with safety measures, few benefits for workers and elimination of child labor. Few years
back, a temporary ban was also imposed on shrimp export to the European Union in the ground
of health and hygienic standards. This also leads to appropriate remedial action including change
in production and processing system.
Lack of enforcement of industrial laws and regulations, weak and inefficient labor unions and
absence of strong consumer rights groups, civil society and inactiveness of the regulatory bodies
make CSR violation rampant in Bangladesh. In 2002, Centre for Policy Dialogue (CPD) had
conducted a preliminary survey of the state of Corporate Responsibility (CR) in Bangladesh. The
survey interviewed workers, company executives and public representatives about their
experiences and perceptions on CR. Some of the findings of the survey were that the companies
appear stronger on policy rather than on practice. Around 2/3rd of the companies have sustainable
development policy, which requires attention on corporate governance, human rights,
international labor standards and AIDS etc. Some of the concluding remarks of the report were
that external forces are the main drivers for CSR in Bangladesh, educating business leaders in
CSR needed as sustainable and profitable business models and there is scope for partnership
between the corporate businesses and civil society (CPD, 2002).

6. Social Responsibility Regulatory Environment in Bangladesh

Although CSR is a comparatively new thought in Bangladeshi corporate culture, consciousness
of it has quickly increased. The banking sector needs to think of their CSR for three basic
reasons. At first, there is an escalating demand from stakeholders to do so (Belal 2001). The
company that does not expand and promote its CSR strategy to all stakeholders may have to face
increasing threats to its reputation. Secondly, CSR makes sound business sense which enhances
the status of an organization, and improves stakeholder return (Kabir 2003). Finally, Bangladesh
Bank issued different notifications to the bank and bound them to follow the guidelines.
Due to inspiration and guidelines from Bangladesh Bank since 2008, many banks have engaged
in CSR activities. New CSR reporting format also contributed to sudden increase in CSR
expenditure by commercial banks in 2010 and thereafter. In Bangladesh, banking institutions
play the dominant support and the fundamental role for industrial and commercial activities.
At present, in addition to the Central Bank of Bangladesh there is 4 state owned commercial
banks, 13 specialized banks, 40 domestic private banks, 9 foreign banks. As with the line of
10 | P a g e

global practice, the Central Bank of Bangladesh (Bangladesh Bank) has been assigned with the
responsibility of playing a custodian role of banking sectors in Bangladesh. BB regulates
banking companies in accordance with Banking Companies Act 1991, and its further
amendments. At the same time, banking organizations listed in the capital market must have to
follow the rules of SEC for trading in the stock exchanges in addition to the Banking Companies
Act 1991. The Bangladesh Companies Act 1994 sets the general structure for corporate financial
reporting. However, no provisions regarding CSR exist in the Companies Act 1994. According
to IASCF (2003), there is no separate Bangladesh Accounting Standard (BAS) concerning social
and environmental reporting. However, after the adoption of International Financial Reporting
Standards (IFRS) in Bangladesh on 5 July 2006, Presentation of Financial Statements (BAS 1)
encourage listed companies to circulate additional statements on their non-financial activities if
management believes they will facilitate users in making economic decisions (Azim 2011).
In 2011, a separate SRO on CSR was incorporated in Income Tax Ordinance 1984. Where an
incentive of 10% rebate on expenditure for CSR within the limit of BDT 8 crore or 20% of total
income whichever is lower, was offered. As per this SRO companies can enjoy the tax rebate
facility on the expenditure for the purpose of CSR only if they spend in 20 defined areas selected
by NBR. Private companies, public companies and MNCs are spending their CSR budget on the
below mentioned areas to get the tax rebate advantage:

Donation through any government bodies to the Cyclone, Earthquake, Hurricane, Flood
etc. affected people
Old home foundation and management
Welfare of mentally or physically disable people
Educational institution for street / homeless children
Building houses for people living in slums
Donation to social organizations involved in building public awareness about womenright and dowry system
Donation to social organizations involved in the welfare of orphan / homeless children
Donation to social organizations involved in research about liberation war, campaign to
uphold the spirit of liberation war and welfare of freedom fighters
Improving sewerage facilities in Chittagong hill-track, alluvial land, river breakage
areas
Donation to organizations engaged in the treatment of hare-lipped, cataract, cancer &
leprosy
Donation to organizations serving treatment to the Acid Victims
Specialized hospital established for serving the poor people free medical facilities and
improving the quality e.g. Cancer, Lever, Kidney, Thalasemia, Eye and Cardio
Donation to public universities
Donation for promoting technical and vocational education for poor meritorious
students through any government approved educational institution
Donation to government or MPO included private educational institution to establish lab
and arrange training for IT, Computer and English education
Donation to the organizations engaged in promoting technical and vocational education
for unskilled and semi-skilled workers for manpower export

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Donation to organizations engaged in infrastructure development and training for

national sports level
Donation to built or under constructed national level museums established in the
memory of the liberation war
Donation to any national level institution set up in memory of Father of the Nation
Donation to the non-profitable organizations established for treatment, increasing
awareness and rehabilitation of HIV, AIDS or intoxication affected people
Donation to the non-profitable private organizations established for the welfare of
women and children saved from human trafficking

In Bangladesh, CSR is still voluntary with the exception of expenditures on energy usage
required under the Companies Act of 1994 and the Securities and Exchange Rules of 1987,
which require a separate expenditure in notes to the financial statements representing the total
amount spent on energy. Recently, BB encourages commercial banks to take part in CSR
activities enthusiastically, which might pave the banking sectors to become more structured on
the ideas of CSR issues (Bangladesh Bank 2008). BB also advised banking and other financial
institutions to move towards implementation of CSR program (Bangladesh Bank 2009,2010),
establish a separate CSR desk (Bangladesh Bank 2010) and promoting gender equality in the
workplace in order to ensuring basic human rights and socio economic growth (Bangladesh Bank
2011). According to Bangladesh Bank (2010), CSR initiatives now starts in a modest way as
supplements to usual annual financial reports, eventually it will be grown as a comprehensive
reports format like Global Reporting Initiative (GRI).

7. CSR Activities of Banking Sectors

7.1 Education
Education is the prerequisite for over all development of any country. Keeping this in mind,
every bank performs some CSR activities in education sector and discloses relevant information
in its annual report. Such activities include scholarship program for brilliant poor students,
donation to educational institution, operating computer learning center etc.
7.2 Health
Health is one of the prime parameter to achieve the development goal. Health needs are
increasing day by day due to rapid growth of population. For that reason every bank performs
some CSR activities in health sector. There are included free eye camps, donation for treatment
to the individual, donation to hospital etc.
7.3 Environment
Environment pollution has become a large problem in our country. For that reason few banks
have come forward to protect the environment and they have performed some CSR activities in
the environment sector. Such activities included finance to CNG conversion and CNG filling
station, not to finance any tobacco related business, provide finance for innovative green
products etc.
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6.4 Culture and Heritage

To uphold our culture and heritage some banks have taken initiatives and performed a few CSR
activities though most of the banks have not performed at all in this area. Such activities include
donation to Muktijuddah Jadughar, donation to cultural institution, donation to Ekushey book
fair etc.
7.5 Social Welfare
As a third world country Bangladesh has a lot of problems. Government often find themselves as
helpless when it comes to solve such problems. Banks as social entities of this country are
considered as a part of the affluent section of the society and hence they are expected to
contribute more meaningfully towards the betterment of the society. If all banks come forward to
contribute to the society, it will help to create their social branding as well as helping the society.
Banks are seen to perform more CSR activities in this area.
7.6 Sports
Financial support is mandatory for improving the performances of sports of the country and to
perform better at international level .Keeping this in mind, Government of Bangladesh has taken
initiatives to attach each bank with a particular event of sports. So, financial institutions have to
play a role to encourage and support the sports.
As per Bangladesh Banks Review of CSR activities of financial sector in 2013, total annual
direct CSR expenditure of banks increased by Tk. 1,424.80 million than the previous year.
Year
CSR Expenditure

2010

2011

(In Million Taka)

2012
2013

2,329.80

2,188.33

3,046.69

4,471.49

Because of Savar Rana Plaza Tragedy unlike in preceding years, CSR initiatives of banks in
2013 mainly focused on emergency relief in humanitarian distresses. Other focused areas of CSR
activities in 2013 were as follows:
i.
ii.
iii.
iv.

financial inclusion of less privileged population segments and underserved economic

sectors
promotion of health, education and cultural/recreational activities for advancement and
well being of underprivileged population segments
promotion of environment friendly projects
adoption of energy efficient, carbon footprint reducing internal processes and practices in
own offices and establishments was going on.

Besides continuation and expansion of previous activities in the above areas, some newer drives
were seen in the 2013 CSR reports of different banks included:

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i.

ii.

iii.
iv.
v.
vi.

Undertaking projects in a village called Southkhali, under Shoronkhola thana of Bagerhat

district, for poor individuals and farmers to provide motivational session towards Palm
Plantation and distribution of 5,000 Palm Trees free of cost
Construction of extension road at both ends of the bridge connecting 18 villages and
stretching more than 6 kilometers from Chatlakanda to Tura via Shoulmari at Roumari
upazila under Kurigram district for smooth traffic movement.
Providing legal assistance to helpless prisoners and persons who do not have financial
resources to conduct cases filed against them.
Organizing a book fair program for underprivileged children at Boi Mela in Bangla
Academy premises.
Introducing special credit facility for the farmers to buy agricultural machineries and
equipments.
Supporting Research & Development (R&D) activities in archaeological survey, biotechnology etc.

8. Brief Overview of Dutch Bangla Bank Limited

Dutch-Bangla Bank started operation as Bangladesh's first joint venture bank. The bank was an
effort by local shareholders and the Dutch company FMO. From the onset, the focus of the bank
has been financing high-growth manufacturing industries in Bangladesh. The rationale being that
the manufacturing sector exports Bangladeshi products worldwide. Thereby financing and
concentrating on this sector allows Bangladesh to achieve the desired growth.
Dutch Bangla Banks other focus is Corporate Social Responsibility. Even though CSR is now a
clich, Dutch Bangla Bank is the pioneer in this sector and termed the contribution simply as
'social responsibility'. Due to its investment in this sector, Dutch Bangla Bank has become one of
the largest donors and the largest bank donor in Bangladesh. The bank has won numerous
international awards because of its unique approach as a socially conscious bank.
Dutch Bangla Bank was the first bank in Bangladesh to be fully automated. The ElectronicBanking Division was established in 2002 to undertake rapid automation and bring modern
banking services into this field. Full automation was completed in 2003 and hereby introduced
plastic money to the Bangladeshi masses. Dutch Bangla Bank also operates the nation's largest
ATM fleet and in the process drastically cut consumer costs and fees by 80%.
Moreover, Dutch Bangla Bank choosing the low profitability route for this sector has surprised
many critics. Dutch Bangla Bank had pursued the mass automation in Banking as a CSR activity
and never intended profitability from this sector. As a result, it now provides unrivaled banking
technology offerings to all its customers. Because of this mindset, most local banks have joined
Dutch Bangla Bank banking infrastructure instead of pursuing their own. Even with a history of
hefty technological investments and even larger donations, consumer and investor confidence
has never waned. Dutch-Bangla Bank stock set the record for the highest share price in the
Dhaka Stock Exchange in 2008. As per Bangladesh Banks CSR activities rating this bank is
currently holding the top position of the chart disclosed by the BBs Annual CSR initiatives
report.
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9. CSR activities by Dutch Bangla Bank Limited

DBBL as a responsible corporate body is fully aware of its responsibility about how its
operational activities impact its stakeholders, the economy, the society, its staff and the
environment. Conducting business in an ethical way, creating opportunities for business and
economic growth, empowering people to fulfill their aspirations, ensuring protection of
environment while financing businesses and supporting the distressed people of the society are at
the heart of social cause policy of DBBL. DBBL since its inception in 1996 had adopted the
policy of contributing to the social cause. It has been continuing its effort during the last 18 years
as a pioneer in the banking sector and has become the leader much ahead of the other banks. To
that end in view the Bank established Dutch-Bangla Bank Foundation which has been rendering
services to various fields relentlessly where it is necessary covering the areas of education, health
care, natural calamities as well as man-made disaster. 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. Meritorious students, particularly in rural areas are
dropped every year because of financial constraint. But they could contribute to the nation
building if they could have some financial assistance. Keeping this thing in mind DBBL has been
awarding scholarship to the meritorious students in need of financial aid since its beginning.
Considering the number of such students is huge the Bank has planned to increase the
scholarship number to an insurmountable level of 30,000 involving an amount of Taka 1.02
billion annually from the year 2016.

Contribution of DBBL in Different Sectors in

2014
1%

2%

10%

4%

Education
Health
46%

Social Development
Disaster
Social Awareness
Miscellaneous

37%

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9. 1 Contribution to education Sector

Human is the most important element of any kind of development. To make the human a
resource education is a must. Keeping this view in mind, Dutch-Bangla Bank has been giving
priority to the education sector. Awarding scholarship to meritorious students in need of financial
aid, financial support for organizing the prestigious Ganit Olympiad, Physics Olympiad, helping
development of educational infrastructural facilities, providing essential educational equipment
etc. are some of the aspects included in the program.
9.1.1 Scholarship Program
Dutch-Bangla Bank, under its social cause program, has been awarding the scholarships to the
meritorious students in need of financial aid studying at different levels of education since its
beginning. DBBL awards new scholarships every year along with renewal of existing awardees.
The Bank has given scholarships to the deserving students from huge applications following a set
of criteria such as the applicants academic results, financial capability, physical conditions etc.
Around 90% of the scholarships have been given to the rural students and 50% to the female
students. Realizing the fact that every year many meritorious students, mostly in rural areas, are
compelled to discontinue their study because of poverty, the bank has increased the number of
scholarship massively. Accordingly, 26,439 students of HSC and graduation level were awarded
scholarship under this program in 09 different phases up to December 2014. Within the year
2016 the number will reach to an insurmountable figure of 30,000 per year involving an amount
of taka 102 crore annually.
9.1.2 The Math olympiad, dutch-Bangla Bank - Prothom Alo Ganit utsab
DBBL has been providing financial support to the prestigious Ganit Utsab under the title of
Dutch-Bangla Bank-Prothom Alo Ganit Utsab for the last eleven years. About 25,000 students
from different schools and colleges of the country participated in the Ganit Utsab in 2014. The
program was held in 22 different regions. Among the 25,000 participants more than 800 students
qualified for the national program and participated in the 12th Bangladesh Ganit Olympiad. Then
ganit camp was arranged with the winners of the National Olympiad and finally a team of 06
(six) members were selected and they participated in the 55th International Mathematical
Olympiad (IMO) held in South Africa in 2014.
9.1.3 Donation for organizing Bangladesh Physics Olympiad
Physics is the mother of all sciences, the root of all concepts. Making physics thrive will cause
science to develop beyond just school studies. The Physics Olympiad will arouse interest
regarding science in the minds of the new generation and draw them towards it, as well as
encourage them to learn in-depth about this field of knowledge. Keeping this view in mind,
Bangladesh Physics Olympiad Committee has been arranging Bangladesh Physics Olympiad for
the last four years successfully. DBBL has been providing financial support for last 2
consecutive years at the rate of BDT 2,500,000 in 2013 and BDT 2,500,000 in 2014 for
organizing Bangladesh Physics Olympiad along with participation in the International Physics
Olympiad (IPhO).The 4th Physics Olympiad was held in 10 regions where 7,000 students
16 | P a g e

participated in the program. It is a great success that a lot of students of Bangladesh have been
attracted in Physics and Science through arranging Bangladesh Physics Olympiad.
9.1.4. Educational Infrastructural development
Donation to Sholakuri college, Modhupur, tangailSholakuri union is situated in Modhupur
Upozila of Tangail District. It has 42 villages and about 35,000 people live in this area. Most of
them are ethnic- Garo and Kutch. There was no college in Sholakuri and surrounding areas. In
order to spread the light of education to the disadvantaged people, Dutch-Bangla Bank granted
financial support of Tk. 10,000,000. Donation was also given to faujdarhat cadet college
Chittagong started its journey in the year 1958.
9.2 Contribution to Health Sector
Health is one of the prime parameters to achieve Millennium Development Goal (MDG). The
need for health care is increasing everyday due to rapid growth of population. Dutch-Bangla
Bank has identified health care as a priority sector and helped create better health care facilities
at a cheaper cost for the disadvantaged population. In this connection Dutch-Bangla Bank
extended its support for the following programs in 2014:
9.2.1 Contribution for health infrastructure development

donation to Dhaka Ahsania Mission Cancer & General Hospital

donation to Combined Military Hospital (CMH)
donation to SHEBA health center

9.2.2. Smile-Brighter Program

Smile-Brighter program is an initiative taken by DBBL to bring back smile on the face of the
boys and girls with cleft-lip and cleft-palate through plastic surgery at free of cost. DBBL spent
Taka 49.43 million for cleft-lip and cleft-palate operation under Smile-Brighter program since
2003.
9.2.3 Cataract operation for underprivileged blind people
Visual impairment is an immense social problem in our country. Cataract is the major cause of
blindness and 80% of them can resume vision through cataract operation. A large number of
rural poor people are deprived of the opportunity to do away with the problem. Keeping their
sufferings in mind, Dutch-Bangla Bank Foundation started the program of operating 12,000
underprivileged blind people by providing sophisticated cataract surgery (Intra Ocular Lens)
throughout the country in phases since 2008. About 6,505 cataract operations have so far been
completed successfully among which 1,500 operations were done in the year 2014.

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9.2.4 Support for medical treatment

DBBL provide one-time financial assistance to those who have been suffering from diseases for
long time and are not able to bear the treatment cost. In the year of 2014 in total BDT 1.78
million donations were made to different persons to meet the cost of treatment of cancer and
other diseases.

9.3 Contribution in disaster Management

DBBL stands by the distressed people at the time when natural calamities occur. DBBL provides
support to the affected people in cash and kind for their rehabilitation after the natural calamities
like cyclone, flood, tornado, landslide, river erosion, and devastating fire. The donation in kind
includes food, medicine, water purifying tablets, blankets, GCI sheets etc. Some of the
contributions of DBBL in this sector in 2014 are as follows. The Bank has been distributing
blankets among the poor people of the country for the last many years. In this connection DBBL
donated total 1,42,000 blankets worth Tk. 9,08,80,000/- (Taka ninety million eight hundred
eighty thousand) only in the year 2014.

donation of blankets to the cold affected people of the country

donation of BDT 50,000,000 only for relief and rehabilitation of the flood affected people

9.4 Contribution to Social Development

DBBL has been providing donations to different non-profit organizations and religious
organizations with a purpose of welfare of the society from the beginning of their CSR program.
In 2014 it has contributed to the below organizations:

donation to PROYASh for constructing the 4th and 5th floor of the PROYASh academic
building at Dhaka cantonment
donation of BDT 20,000,000 to Lakhu Konthe Gao Sonar Bangla
donation to Police lines Jame Masjid, Madaripur
donation for constructing a 5-storied Mosque complex at Mirpur DOHS

9.5 Contribution to sports sector

Bangladesh Athletic Federation is a national organization which is working hard for the
development of the athletes of the country. Those potential and rising athletes were trained up
with the modern scientific trainings and intensive cares so that they would reach to the level of
international / world class standards and thus they were expected to achieve the name and fame
of Bangladesh by wining award in the SAF Games, Asian Games, Commonwealth Games and
World Olympic Games. To arrange such sophisticated training course, the organization needed a
large amount of financial assistance from the donors. In this connection, DBBL donated Tk.
1,000,000/- (Taka one million) only to Bangladesh Athletic Federation for organizing 03-year
long term training program for the Athletes.
9.6 Contribution to city beautification

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Dutch-Bangla Bank constructed a monument in the crossing of Hotel Ruposhi Bangla and State
Guests House Jamuna. DBBL is also engaged in beautification of the road islands and footpaths
from Kakrail Crossing to Hotel Ropashi Bangla Crossing of Dhaka metro as a part of city
beautification project. Taka 11,31,000/- (Taka one million one hundred thirty one thousand) only
was spent in last year for maintenance of the monument and fountain.
9.7 Contribution for creating awareness on different social issues
DBBL has been engaging in creating awareness through electronic and print media since long on
different social issues like Hope and love make us lovely, Willpower is enough to do a good
job, Uphold justice, Good behavior with mentally retarded persons - a moral duty, Human for
humanity, Drug addiction- a menace to destroy life, Plant tree- save environment etc. The short
dramas focusing on above social issues are telecasted regularly in prime time at several
electronic media for the viewers. Besides, some billboards are placed in vital locations of the
city with colorful advertisement of those subjects, for creating awareness among the mass
people. Considering this Dutch-Bangla Bank spent Taka 10,800,000 only in 2014 for creating
awareness.
Hope and Love make us lively
Willpower is enough to do a good job
Uphold justice
Good behavior with mentally-retarded persons, a moral duty
Human for Humanity
Drug addiction - a menace to destroy life
Plant tree, save environment
Donation on account of miscellaneous purposes

10. Discussion and Analysis

Out of the total six heads of CSR as mentioned earlier in this paper, DBBL has been found to
score the highest in second areas called Education, Health, Environment and Social welfare.
Mercantile Bank Limited has the highest contributions and disclosure scores in cultural and
heritage retention. Bank Asia Limited and Prime Bank Limited jointly top the table of CSR in
Sports. Most of the banks have shown better contribution in education and health sector as the
part of their social responsibilities as it is seen that the percentage of highest average score
achieved to the score allocated. Banks have the least contribution in Environmental and Culture
& Heritage related CSR as it found from the study that the percentage of lowest average score
achieved to the score allocated.
It is matter of pride that the banks are very concern to contribute to meet the emergency
situations specially like cyclones (Aila) and flood affected areas, warm cloth distribution etc.
Every bank contributed to our prime minister Relief fund especially for flood affected people,
BDR mutiny and fire affected people of garments. The study revealed that the banking sector in
Bangladesh has been playing vital role for the welfare of the society. As it is seen from this paper
that the banks have given most priority to contribute in the education sector of Bangladesh
understanding the importance of it for the building of a good nation at the same time their
contribution for the protection of environment is phenomenal.
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From the above table it can be drawn that Banks spending on CSR was increased by 46.78% in
2013 whereas in 2012 there was a 39.22% increase in comparison to 2011. From 2010 to 2013
there was an increasing trend in CSR expenditure as per recent data disclosed by BB.
Expenditure of all banks for CSR activities witnessed a significant rise in 2013 despite a
downturn in their overall operating earnings. Expenditure of banks for CSR activities is on rise
because the central bank has been able to motivate them for doing something for the welfare of
deprived section of the society. BB also monitors regularly whether banks are maintaining rules
and regulations for their expenditures under CSR activities. Besides, banks are now more
conscious about their responsibilities for the underprivileged section of the society.
Banks generally spend a portion from their net operational profits for CSR activities. To
encourage banks for CSR activities, BB is awarding points to banks on management component
while computing CAMELS rating where there will ultimately be a positive impact on overall
rating of a bank. According to BB, the total operating profits of banks stood at BDT 7,225 core
in 2013 and BDT 4,466 crore in 2012 whereas their total operating profits were BDT 9,121 crore
in 2011. Dutch-Bangla Bank spent the highest BDT 78.54 crore under CSR activities in 2012,
Islami Bank Limited was in second position which spent BDT 47.61 crore and Janata Bank was
in third position that spent BDT 42.68 crore. Direct CSR expenditure of DBBL is presented as
under as per recent data of BB.

In 2013 total expenditure in CSR by different banks in Bangladesh was BDT 4,422 million as
per BB. If we compare only DBBLs expenditure as the highest spender in CSR activities with
all of the banks of the country we can find the below table:
Year
2010

DBBL
Expenditure in
Taka
168,860,000

All Banks
Expenditure in
Taka
2,329,778,000

Percentage
7.25%
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2011
2012
2013

341,830,000
527,670,000
785,400,000

2,188,329,743
3,046,685,877
4,422,387,450

15.60%
17.32%
17.76%

We can see there was a 48.84% increase in the DBBLs direct CSR expenditure in comparison to
45.15% of overall banks direct CSR expenditure in 2013. This analysis also left the footprint of
DBBLs being the highest contributor to the society in the form of direct CSR expenditure.

11. Conclusion
As a third world country Bangladesh has lot of problems. Government often find themselves
helpless when it comes to solving 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 companies come forward to contribute to the
society like DBBL, Social Responsibility of DBBL, it will help to create their social branding as
well as helping the society. Therefore, we can say DBBL is a pioneer in Corporate Social
Responsibility because the idea of CSR is vastly expanded by DBBL at first.

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