Corporate Social Responsibility (CSR) practices of financial institution in Bangladesh: the case of United Commercial Bank

https://doi.org/10.35912/joste.v2i2.539
Published: Dec 25, 2020

Abstract:

Purpose: The main purpose of the research is to understand the CSR practices of financial institutions in Bangladesh better.

Research methodology: Corporate Social Responsibility (CSR) is concerned with businesses’ interactions with society as a whole. Such CSR operations cover an organisation’s fiscal, legal, ethical, and philanthropic obligations. United Commercial Bank Limited (UCB) has been chosen as the study’s subject. This study is a qualitative research project that used an exploratory research design. For data collection, both main and secondary data sources were used. The in-depth interview approach with an open-ended questionnaire was used to gather primary data on CSR practices from 70 UCB employees.

Results: According to the findings of the study, UCB is deeply performing its fiscal, legal, ethical, and philanthropic responsibilities, but it has not expanded its philanthropic activities on a voluntary basis. Furthermore, the representation of UCB employees in CSR management is inadequate, with the exception of top-level executives.

Limitations: Any methodological issues were addressed, such as sampling challenges because financial institutions do not encourage third parties to obtain their secrets because competition occurs everywhere.

Contribution: This study makes several suggestions, such as improved and more systematic communication of CSR strategies to employees, increased investments in CSR programs, and specially targeted CSR preparation, which could assist UCB in encouraging a more successful application of its CSR strategies.

Keywords:
1. Corporate Social Responsibility
2. United Commercial Bank Ltd
3. CSR management
4. Carroll’s pyramid of CSR
5. Philanthropic
Authors:
1 . Sumaiya Afrin
Department of Marketing, Jahangirnagar University, Savar, Bangladesh
2 . Farhana Sehreen
Department of Marketing, Jahangirnagar University, Savar, Bangladesh
3 . Mohammad Rashed Hasan Polas
Institute of Scientific Research and Graduate School, Universidad de Lima, Lima, Peru
4 . Rubyat Sharin
Graduate School of Management, International Islmic University Malaysia, Kuala Lumpur, Malaysia
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How to Cite
Afrin, S., Sehreen, F., Polas, M. R. H., & Sharin, R. (2020). Corporate Social Responsibility (CSR) practices of financial institution in Bangladesh: the case of United Commercial Bank. Journal of Sustainable Tourism and Entrepreneurship, 2(2), 69–82. https://doi.org/10.35912/joste.v2i2.539
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Vol. 2 No. 2 (2020): December
Articles
References

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    Agudelo, M. A. L., Jóhannsdóttir, L., & Davídsdóttir, B. (2019). A literature review of the history and evolution of corporate social responsibility. International Journal of Corporate Social Responsibility, 4(1), 1-23.

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    Alshbili, I., & Elamer, A. A. (2020). The influence of institutional context on corporate social responsibility disclosure: a case of a developing country. Journal of Sustainable Finance & Investment, 10(3), 269-293.

    Barakat, F. S., Pérez, M. V. L., & Ariza, L. R. (2015). Corporate social responsibility disclosure (CSRD) determinants of listed companies in Palestine (PXE) and Jordan (ASE). Review of Managerial Science, 9(4), 681-702.

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    Carroll A. B. (1991), The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders. Business Horizons, 34(4), 39-48. DOI: https://doi.org/10.1016/0007-6813(91)90005-G

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    Hossain, M. I., Polas, M. R. H., Rahman, M. M., Islam, T., & Jamadar, Y. (2020). An Exploration of COVID-19 Pandemic and its Consequences on FMCG Industry in Bangladesh. Journal of Management Info, 7(3), 145-155.

    Jermsittiparsert, K., Siam, M., Issa, M., Ahmed, U., & Pahi, M. (2019). Do consumers expect companies to be socially responsible? The impact of corporate social responsibility on buying behavior. Uncertain Supply Chain Management, 7(4), 741-752.

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    Mahmud, A., Ding, D., Kiani, A., & Hasan, M. M. (2020). Corporate Social Responsibility Programs and Community Perceptions of Societal Progress in Bangladesh: A Multimethod Approach. SAGE Open, 10(2), 2158244020924046.

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    Miajee, R. K. (2015). Corporate Social Responsibilities Practices in the Government Owned Banking Sector in Bangladesh: A Case Study on Agrani Bank Limited. International Journal of Finance and Banking Research, 1(2), 37-43. Retrieved from: http://article.sciencepublishinggroup.com/html/10.11648.j.ijfbr.20150102.14.html

    Moktadir, A., Rahman, T., Jabbour, C. J. C., Ali, S. M., & Kabir, G. (2018). Prioritisation of drivers of corporate social responsibility in the footwear industry in an emerging economy: A fuzzy AHP approach. Journal of cleaner production, 201, 369-381.

    Mocan, M., Rus, S., Draghici, A., Ivascu, L., & Turi, A. (2015). Impact of corporate social responsibility practices on the banking industry in Romania. Procedia Economics and Finance, 23, 712-716.

    Muttakin, M. B., Khan, A., & Mihret, D. G. (2018). The effect of board capital and CEO power on corporate social responsibility disclosures. Journal of Business Ethics, 150(1), 41-56.

    Omran, M. A., & Ramdhony, D. (2015). Theoretical perspectives on corporate social responsibility disclosure: a critical review. International Journal of Accounting and Financial Reporting, 5(2), 38-55.

    Perry, P., Wood, S., & Fernie, J. (2015). Corporate social responsibility in garment sourcing networks: Factory management perspectives on ethical trade in Sri Lanka. Journal of Business Ethics, 130(3), 737-752.

    Polas, M.R.H., Raju, V., Muhibbullah, M. and Tabash, M.I. (2021), “Rural women characteristics and sustainable entrepreneurial intention: a road to economic growth in Bangladesh”, Journal of Enterprising Communities: People and Places in the Global Economy. https://doi.org/10.1108/JEC-10-2020-0183

    Polas, M. R. H., Raju, V., Hossen, S. M., Karim, A. M., & Tabash, M. I. (2020). Customer’s revisit intention: Empirical evidence on Gen‐Z from Bangladesh towards halal restaurants. Journal of Public Affairs, e2572. https://doi.org/10.1002/pa.2572

    Rahman, A. (2013). Evolution of CSR in Bangladesh and future challenges. CSR Review, 10, 1-4

    Rana, M. M., Kalam, A., Halimuzzaman, M., Kalam, A., & Halimuzzaman, M. (2012). Corporate social responsibility (CSR) of Dutch-Bangla Bank Limited: A case study. Bangladesh Research Publication Journal, 7(3), 241-247.

    Rao, K., & Tilt, C. (2016). Board composition and corporate social responsibility: The role of diversity, gender, strategy and decision making. Journal of Business Ethics, 138(2), 327-347

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    Shen, L., Govindan, K., & Shankar, M. (2015). Evaluation of barriers of corporate social responsibility using an analytical hierarchy process under a fuzzy environment—A textile case. Sustainability, 7(3), 3493-3514.

    Tilt, C. A. (2016). Corporate social responsibility research: the importance of context. International Journal of Corporate Social Responsibility, 1(1), 1-9.

    Uddin, S., Siddiqui, J., & Islam, M. A. (2018). Corporate social responsibility disclosures, traditionalism and politics: A story from a traditional setting. Journal of Business Ethics, 151(2), 409-428.

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  1. Afshar, A., Polas, R. H., Imtiaz, M., & Saboor, A. (2019). Customer care service management is moving forward to achieve sustainable customer retention in every industry. Does it play a role to increase brand rentention. International Journal of Management, 8(2), 88-97.
  2. Agudelo, M. A. L., Jóhannsdóttir, L., & Davídsdóttir, B. (2019). A literature review of the history and evolution of corporate social responsibility. International Journal of Corporate Social Responsibility, 4(1), 1-23.
  3. Ahmed A., Kayssar M. (2013). Corporate Social Responsibility Practices of Commercial Banks in Bangladesh, A Case Study on Southeast Bank Ltd. Journal of Business and Management, 12(1), 13-18. Retrieved from: http://www.iosrjournals.org/iosr-jbm/papers/Vol12-issue1/B01211318.pdf
  4. Ali, W., Frynas, J. G., & Mahmood, Z. (2017). Determinants of corporate social responsibility (CSR) disclosure in developed and developing countries: A literature review. Corporate Social Responsibility and Environmental Management, 24(4), 273-294.
  5. Alshbili, I., & Elamer, A. A. (2020). The influence of institutional context on corporate social responsibility disclosure: a case of a developing country. Journal of Sustainable Finance & Investment, 10(3), 269-293.
  6. Barakat, F. S., Pérez, M. V. L., & Ariza, L. R. (2015). Corporate social responsibility disclosure (CSRD) determinants of listed companies in Palestine (PXE) and Jordan (ASE). Review of Managerial Science, 9(4), 681-702.
  7. Belal, A. R., Cooper, S. M., & Khan, N. A. (2015). Corporate environmental responsibility and accountability: what chance in vulnerable Bangladesh?. Critical Perspectives on Accounting, 33, 44-58.
  8. Bhattacharjee, A., Polas, M.R.H., Ahmed, M., and Eshita, K.F. (2020). “Alternative Concern on the Remittance Increases Investments and Financial Sustainability”, IIUB Studies, A Multidisciplinary Research Journal, Vol. 2, No.1, pp. 29-46.
  9. Bhattacharjee, A. M. I. T. A. B., Polas, M. R. H., & Rahman, M. L. (2018). Challenges and prospects of tourism in Cox’s bazar: An empirical study. Journal of Business and Technology (Dhaka), 13, 63-82.
  10. Carroll A. B. (1991), The Pyramid of Corporate Social Responsibility: Toward the Moral Management of Organizational Stakeholders. Business Horizons, 34(4), 39-48. DOI: https://doi.org/10.1016/0007-6813(91)90005-G
  11. Donaghey, J., & Reinecke, J. (2018). When industrial democracy meets corporate social responsibility—A comparison of the Bangladesh accord and alliance as responses to the Rana Plaza disaster. British Journal of Industrial Relations, 56(1), 14-42.
  12. DOS Circular No. 01. Department of Off-site Supervision, Bangladesh Bank, Head Office: Dhaka.
  13. Dyduch, J., & Krasodomska, J. (2017). Determinants of corporate social responsibility disclosure: An empirical study of Polish listed companies. Sustainability, 9(11), 1934.
  14. Hesse-Biber, S. N. (2017). Gunatmak Sanshodhanachi Karyapaddhati. SAGE Publishing India.
  15. Hoque, N., Rahman, A. R. A., Molla, R. I., Noman, A. H. M., & Bhuiyan, M. Z. H. (2018). Is corporate social responsibility pursuing pristine business goals for sustainable development?. Corporate Social Responsibility and Environmental Management, 25(6), 1130-1142.
  16. Hossain, M. I., Polas, M. R. H., Rahman, M. M., Islam, T., & Jamadar, Y. (2020). An Exploration of COVID-19 Pandemic and its Consequences on FMCG Industry in Bangladesh. Journal of Management Info, 7(3), 145-155.
  17. Jermsittiparsert, K., Siam, M., Issa, M., Ahmed, U., & Pahi, M. (2019). Do consumers expect companies to be socially responsible? The impact of corporate social responsibility on buying behavior. Uncertain Supply Chain Management, 7(4), 741-752.
  18. Javeed, S. A., & Lefen, L. (2019). An analysis of corporate social responsibility and firm performance with moderating effects of CEO power and ownership structure: A case study of the manufacturing sector of Pakistan. Sustainability, 11(1), 248.
  19. Khan, I., Khan, I., & Saeed, B. B. (2019). Does board diversity affect quality of corporate social responsibility disclosure? Evidence from Pakistan. Corporate social responsibility and environmental management, 26(6), 1371-1381.
  20. Kuo, T. C., Kremer, G. E. O., Phuong, N. T., & Hsu, C. W. (2016). Motivations and barriers for corporate social responsibility reporting: Evidence from the airline industry. Journal of Air Transport Management, 57, 184-195.
  21. Majeed, S., Aziz, T., & Saleem, S. (2015). The effect of corporate governance elements on corporate social responsibility (CSR) disclosure: An empirical evidence from listed companies at KSE Pakistan. International Journal of Financial Studies, 3(4), 530-556.
  22. Mahmud, A., Ding, D., Kiani, A., & Hasan, M. M. (2020). Corporate Social Responsibility Programs and Community Perceptions of Societal Progress in Bangladesh: A Multimethod Approach. SAGE Open, 10(2), 2158244020924046.
  23. Masud M. A. and Hossain M. S. (2012). Corporate Social Responsibility Reporting Practices in Bangladesh, A Study of Selected Private Commercial Banks. IOSR Journal of Business and Management (IOSR-JBM) ISSN 2278-487X. 6(2), 42-47. Retrieved from: http://iosrjournals.org/iosr-jbm/papers/Vol6-issue2/G0624247.pdf
  24. Miajee, R. K. (2015). Corporate Social Responsibilities Practices in the Government Owned Banking Sector in Bangladesh: A Case Study on Agrani Bank Limited. International Journal of Finance and Banking Research, 1(2), 37-43. Retrieved from: http://article.sciencepublishinggroup.com/html/10.11648.j.ijfbr.20150102.14.html
  25. Moktadir, A., Rahman, T., Jabbour, C. J. C., Ali, S. M., & Kabir, G. (2018). Prioritisation of drivers of corporate social responsibility in the footwear industry in an emerging economy: A fuzzy AHP approach. Journal of cleaner production, 201, 369-381.
  26. Mocan, M., Rus, S., Draghici, A., Ivascu, L., & Turi, A. (2015). Impact of corporate social responsibility practices on the banking industry in Romania. Procedia Economics and Finance, 23, 712-716.
  27. Muttakin, M. B., Khan, A., & Mihret, D. G. (2018). The effect of board capital and CEO power on corporate social responsibility disclosures. Journal of Business Ethics, 150(1), 41-56.
  28. Omran, M. A., & Ramdhony, D. (2015). Theoretical perspectives on corporate social responsibility disclosure: a critical review. International Journal of Accounting and Financial Reporting, 5(2), 38-55.
  29. Perry, P., Wood, S., & Fernie, J. (2015). Corporate social responsibility in garment sourcing networks: Factory management perspectives on ethical trade in Sri Lanka. Journal of Business Ethics, 130(3), 737-752.
  30. Polas, M.R.H., Raju, V., Muhibbullah, M. and Tabash, M.I. (2021), “Rural women characteristics and sustainable entrepreneurial intention: a road to economic growth in Bangladesh”, Journal of Enterprising Communities: People and Places in the Global Economy. https://doi.org/10.1108/JEC-10-2020-0183
  31. Polas, M. R. H., Raju, V., Hossen, S. M., Karim, A. M., & Tabash, M. I. (2020). Customer’s revisit intention: Empirical evidence on Gen?Z from Bangladesh towards halal restaurants. Journal of Public Affairs, e2572. https://doi.org/10.1002/pa.2572
  32. Rahman, A. (2013). Evolution of CSR in Bangladesh and future challenges. CSR Review, 10, 1-4
  33. Rana, M. M., Kalam, A., Halimuzzaman, M., Kalam, A., & Halimuzzaman, M. (2012). Corporate social responsibility (CSR) of Dutch-Bangla Bank Limited: A case study. Bangladesh Research Publication Journal, 7(3), 241-247.
  34. Rao, K., & Tilt, C. (2016). Board composition and corporate social responsibility: The role of diversity, gender, strategy and decision making. Journal of Business Ethics, 138(2), 327-347
  35. Rezaul K. (2017, 9 January). CSR guideline in the offing. The Financial Express. Retrieved from: http://www.thefinancialexpress-bd.com/2017/01/09/58616/CSR-guideline-in-the-offing
  36. Review of CSR activities of Bangladesh Bank, Commercial Banks and Financial Institutions- 2014, Retrieved from: https://www.bb.org.bd/pub/publictn.php
  37. Shen, L., Govindan, K., & Shankar, M. (2015). Evaluation of barriers of corporate social responsibility using an analytical hierarchy process under a fuzzy environment—A textile case. Sustainability, 7(3), 3493-3514.
  38. Tilt, C. A. (2016). Corporate social responsibility research: the importance of context. International Journal of Corporate Social Responsibility, 1(1), 1-9.
  39. Uddin, S., Siddiqui, J., & Islam, M. A. (2018). Corporate social responsibility disclosures, traditionalism and politics: A story from a traditional setting. Journal of Business Ethics, 151(2), 409-428.
  40. United Commercial Bank Ltd. (UCB) (2015). Annual Report of UCB 2015. Retrieved from: http://www.ucb.com.bd/index.php?page=know-ucb/reports-and-statements
  41. Yasmin F. (2016, December 04-05). Limitations of CSR and scopes of social business in the banking industry of Bangladesh. Paper presented at the Proceedings of the 5th Annual Banking Conference of Bangladesh Institute of Bank Management (BIBM), Dhaka.