STAMFORD UNIVERSITY BANGLADESH

A Thesis Report on

Reporting of Corporate Social Responsibility in Bangladesh

Submitted To:

Md. Abdul Mannan

Assistant Professor

Dept. of Business Administration

Stamford University Bangladesh

Submitted By:

Newaz Ahmed

ID No: 02205618

Batch: 25 (F)

Major in Accounting

Department of Business Administration

Stamford University Bangladesh

Date of Submission: 13th February, 2010

13th February, 2010

Md. Abdul MannanAssistant Professor,Department of Business Administration Stamford University Bangladesh.

Subject: Submission of Internship Report

Dear Sir,

Here is the report you requested on 13th February, 2010 on “Reporting of Corporate Social Responsibility in Bangladesh”.

I have detailed in this report on various facts related to “Corporate Social Responsibility”

(CSR) such as the nature & concept of CSR, evolution of CSR, Current state of CSR

practices and Reporting them in the annual reports by the listed companies in

Bangladesh. I also provide a summary of OECD Guidelines for Multinational

Corporations which can be applied to Bangladeshi Companies.

Additionally, I have in addition to measuring the extent and volume of disclosures by

using content analysis; I also explore the socio-economic context in which these

disclosures take place. I have put some constraints and their probable solution about these

constraints for the success of CSR practices and reporting them by the Bangladeshi

Companies.

Yours Sincerely

Newaz AhmedID No: 02205618

II

Department of Business Administration Stamford University Bangladesh

Student’s Declaration

I hereby speak out that the thesis report namely “Reporting of Corporate Social Responsibility in Bangladesh” by me after the finishing of 3 (three) months of an inclusive study of the existing practices of the reporting of corporate social responsibility by the listed companies in Bangladesh.

I also declare that this paper is my original worked and prepared for academic purpose which is a part of BBA and The Paper Appear May Not Be Used In Actual Market Scenario.

..........................Newaz AhmedId# BBA 02205618BBA Program 25 (F) BatchDepartment of Business AdministrationStamford University Bangladesh

III

Supervisor’s Declaration

I hereby declare that the concerned report entitled Reporting of “Corporate Social Responsibility in Bangladesh” is an original work by Newaz Ahmed, Id# BBA 02205618, major in Accounting, Department of Business Administration, Stamford University Bangladesh, completed his thesis report under my supervision and submitted for the partial fulfillment of the requirement of the degree of Bachelor of Business administration (BBA) at Stamford University Bangladesh.

..........................Md. Abdul MannanAssistant Professor,Department of Business Administration Stamford University Bangladesh.

IV

ACKNOWLEDGEMENT

I am very much grateful to my honorable supervisor Md. Abdul Mannan for assigning this report and to help me all the way through in completion of this report successfully, which enrich my academic career. I have the pleasure to submit this report on “Corporate Social Responsibility in Bangladesh” for your kind evaluation.

Above all thanks to my friends and relatives who always encourages me to prepare myself to be honest and efficient in my academic and professional career. All the relevant things I have tried our best in order to serve the every objective of this report. To make the best understand of the theoretical portion, relevant tables and diagram has been produced.

And finally, I would like to say that I have tried heart and soul to prepare this report accurately. However, there might be some errors and mistakes due to my limited aptitude and time constraint. In this regard, I seek your kind consideration as I am in the process of learning.

V

EXECUTIVE SUMMARY

The type and ownership of the business, the economic, social and cultural environment in

society differs, but the determination of businesses to play a role in the development of

their home country and in others where they trade, is manifest. Companies are expected

to play a role as good citizens in making a contribution to the maintenance of the fabric

of society that sustains the framework of law and civilization, within which they do

business. Now, business organizations are considered as “Corporate Citizens”. They are

now emphasizing on adopting social, ethical and environmentally responsible approaches

to business activity. Most of the corporate social responsibility (CSR) studies conducted

so far have been in the context of developed countries. A very few studies were done

related to the developing countries and especially in Bangladeshi context, the number of

studies is much inadequate. The main objective of this report is that in addition to

measuring the extent and volume of disclosures by using content analysis, it explores the

socio-economic context in which these disclosures take place. Human rights violation,

child labor, gender discrimination, and environmental pollution- these are considered as

very common phenomena in this country. From the analysis it reveals that most of the

listed companies in Bangladesh did not provide any information regarding the

environment, human resources, community, and consumers in 2008-09. Though some

progressive companies disclosed some information, that information was not at all

adequate in discharging social responsibilities. All the information provided by these

companies was qualitative in nature and the disclosure level was very poor.

Table of Contents

Particulars Page noChapter One: Introductory 1-6

1.1: Origin of the Report 21.2: Objectives 31.3: Methodology 41.4: Scope 51.5: Limitations 5

1.6: Report Preview 6

Chapter Two: Nature, Concept and Extent of CSR 7-28

2.1: Introduction 8

2.2: Literature Review 11

2.3: Evolution of CSR 15 2.4: Nature and Concept of CSR 19 2.5: Why Companies Report CSR? 24

Chapter Three: Overview of the State of CSR in Bangladesh 29-38 3.1: Current State of CSR 30

3.2: Stakeholders Perceptions about CSR 33

3.3: Status of Environmental Reporting in Bangladesh 36

3.4: Corporate Governance and CSR in Bangladesh 37

Chapter Four: OECD Guidelines- One Tool for Corporate Social Accountability

39-65

4.0: OECD Guidelines- One tool for Corporate Social Responsibility 40

4.1: Concepts and Principles 42

4.2: General Policies 43

4.3: Disclosure 44 4.4: Employment and Industrial Relations 46 4.5: Environment 48

4.6: Combating Bribery 50 4.7: Consumer Interests 52 4.8: Science & Technology 53

4.9 : Competition 54 4.10 : Taxation 55 4.2: What is the International Mechanism for implementing the Guidelines?

55

4.3: A Pyramid of Global CSR as a Framework 60

Chapter Five: Findings and Analysis 66-74 5.1: Separate “Corporate Social Responsibility” Disclosure 67 5.2: Sustainable Development 68

5.3: Management System & Certification Schemes 68 5.4: Employee Relations 69 5.5: Community Relations 69 5.6: Shareholder Relations 70 5.7: Compliance of Corporate Governance 70 5.8: Environmental Responsibilities 71 5.9: Welfare Activities & Other Socio-economic Issues 71 5.10: Technology 72 5.11: Contribution to National Exchequers 72 5.12: Business Ethics/ Ethical Standard 72 5.13: Human Rights 73 5.14: Legal Compliance 73 5.15: Fair Employment 73 5.16: Health & Safety 73 5.17: Labor Standard 74

Chapter Six: Opportunities and Challenges for CSR in Bangladesh 75-88 6.1: CSR Implications and Applications 76 6.2: CSR for Public Sector 79 6.3: The Range of Public Sector Activities 83

6.4: Prospects for the Future Development of CSR 84 6.5: A Challenge for Companies Everywhere 88

Chapter Seven: Concluding Part 89-99

7.1: Conclusion 90 7.2: Recommendations 91

7.3: References 95

Appendix-1 101

Appendix-2 102

Appendix-3 103