The post CSR or eyewash! appeared first on Dhaka Mirror.
]]>
A common sight during winter months in recent years has been the distribution of blankets by our politicians, corporate leaders and businessmen to communities with little or no real need for them. News and social media coverage, mobile clicks and press conferences may outnumber the total spending on these so-called noble endeavour that go by the CSR (corporate social responsibility) title.
A global trend, CSR is now the subject matter of high-ranking international meetings on the environment, climate etc., with very little to its credit. The trending manner and race for CSR seem to outstrip and dilute its purpose and the term CSR into corrupt social responsibility!
How often do prominent corporate leaders donate to schools, hospitals, or care centres? Why are corporates so prominent in their CSR?
In most cases, a CSR budget is allocated for a year, and it must show a return in the same year. The so-called good corporates also use the CSR budgets to satisfy critical stakeholders to fund their CSR or their spouse’s CSR initiatives. I know many examples where top officials, including lawmakers, seek assistance in their areas to garner local support using the fund of CSR.
There are also those that use CSR to get tax benefits, pressing the National Board of Revenue (NBR) for more concessions.
I recall an incident dating back almost 15 years, where Mr Anis Ud Dowla, chairman of ACI Group, surprised his audience by going against the flow in a session on CSR organised by the American Chamber, saying, “Our first duty is to pay taxes to the government and take care of your employees…. once you do that, you can concentrate on CSR.”
His words still ring in my ears! Certain big local business houses in the country dodge taxes and deprive employees but are very active in CSR engagements in their local areas.
Let’s do a quick calculation of CSR RoI (Return on Investment) of blanket distribution. If one distributes 1,000 blankets worth around Tk 5 lakh, it will cost another Tk 5 lakh to organise a press conference in a five-star hotel. If 10 newspapers cover the story (free of charge), they receive a benefit worth Tk 10 lakh or more of free publicity.
If one considers social media mileage, it will be considered a very profitable investment, let alone the leader’s branding. I must confess that I was also a part of this culture at one time.
A study by the Harvard Business Review found that companies with vital CSR programmes experienced a long-term positive impact on financial performance.
Another study by the Global Reporting Initiative found that companies with high levels of sustainability experienced a positive effect on financial performance and increased stakeholder trust. Global corporates and their leaders are very aware of the economic benefits of CSR programmes. Hence, it is more of an investment than a selfless contribution or charity.
CSR is commendable if it is implemented effectively and aligned with the values and goals of the organisation, and tailored to the need of the beneficiaries. When companies engage in responsible CSR that goes beyond profit-making and consider the long-term impact of their actions on society, the environment, and their stakeholders, the benefits can be multifold, including long-term business benefits.
It is vital to ensure that CSR efforts are genuine, transparent, and accountable and not used to distract the public or cover up unethical practices.
The blanket distribution and the likes that go around in the media seasonally make CSR appear to be a corrupt social responsibility!
However, CSR can be a powerful tool for development and transformation if carried out ethically and selflessly. Even the recommended zakat (mandatory charity in Islam) to share the wealth with the underprivileged can make Bangladesh a better place to live in if made with greater planning and sustainability.
The author is a telecom and management expert
– Article originally published on The Daily Star
The post CSR or eyewash! appeared first on Dhaka Mirror.
]]>The post Brac Bank donates 5pc of CSR fund to PM’s trust appeared first on Dhaka Mirror.
]]>The bank handed over a cheque equivalent to Tk 11,517,754 to the PM’s EAT on April 20, 2022, a press release said. “We should thank Bangladesh Bank for this timely initiative allowing banks to contribute to building an educated nation. The trust has done remarkably well in only a few years to support the education of the underprivileged,” said Selim RF Hussain, managing director of Brac Bank.
“As we continue supporting the trust, the result, in the long run, will have the upper hand in developing our country,” he added.
In addition, the Prime Minister’s education assistance trust is a government trust fund under the ministry of education responsible for providing scholarships to underprivileged students based on merit.
An advisory council headed by the PM manages the trust.
The post Brac Bank donates 5pc of CSR fund to PM’s trust appeared first on Dhaka Mirror.
]]>The post CSR and a new order of business appeared first on Dhaka Mirror.
]]>Bitopi Das Chowdhury
CSR or corporate social responsibility has been a buzz phrase for quite some time now. Not a day goes by without it being mentioned, albeit in passing, in daily business discourse. Even during the last decade, CSR was looked upon by big businesses as “doing good” — something that was “extra” to their day-to-day effort of profit maximisation, a great public relations (PR) tool to generate empathy among their customers and favouritism from the powers that be. Not anymore.Companies today realise that maximising welfare for all their stakeholders (as opposed to maximising profits for shareholders) is integral to their bottom line. As Niall Fitzerald, former chief executive officer of Unilever, rightly puts it, “Corporate social responsibility is a hard-edged business decision. Not because it is a nice thing to do or because people are forcing us to do it…because it is good for our business.”
However, while every company these days seems to talk the talk, not everyone actually walks the walk. A lot of effort and emphasis go into the PR and communication aspect of “doing good” — talking about it and being seen to be doing good, and not enough in actually being accountable to the stakeholders, that is, society at large.
The bottom line is that no company today can ignore CSR. And quite a few of them are doing it well, doing it right. Many of them have rightly realised that it isn’t just about the superficial layer of philanthropy and being charitable. It is also about being accountable with the right corporate governance, and being innovative about actually making a difference. In essence, a meaningful CSR initiative should originate out of genuine caring for the stakeholders; it should be designed to make a difference to the beneficiaries, while making ‘good business sense’ for the shareholders of the organisation.
Several Fortune 500 companies who lead the CSR space have taken the concept even further; they also address the issue of ‘sustainability’ not only in business, but also in their CSR initiatives. Many of them have championed the ‘Triple Bottom Line’ framework of measuring performance, which incorporates three dimensions of performance: social, environmental and financial.
Good CSR is often done in partnerships with social issue experts. Starbucks hosted a ‘Cup Summit’ at the Massachusetts Institute of Technology to bring together municipalities, raw materials suppliers, cup manufacturers, retail and beverage businesses, recyclers, NGOs and academic experts to share ideas to make paper and plastic cups more broadly recyclable. In an effort to make their coffee cup 100 percent recyclable, they realised a shift is needed in not just their operations but in the entire food packaging and recycling industry.
In Bangladesh too, a number of businesses have grasped the meaning of true social responsibility and are doing exemplary work. And it is notable that the ones who are doing it properly and meaningfully are also the ones not too fussed about beating their own drums about it.
Rahimafrooz, as a corporate house, has been a shining example of business ethics at work for many years. Their Rural Service Foundation (RSF), a social development initiative focusing on education, poverty alleviation, environment and transport is a great CSR story. Viyellatex, one of the largest textile groups, has spent significantly in education, social and free health care programmes.
The Standard Chartered Bank Financial Express CSR Awards is probably the only initiative in the country that sets a benchmark in evaluating, recognising and bringing the forefront organisations that have truly grasped the meaning of social responsibility and are setting a shining example without making too much of a fuss. The event held on Thursday brought forward some new names like Renata Ltd and the DBL Group to the ‘walk of fame’ while Nestle Bangladesh added another feather to its halo.
Fifty one percent of Renata Ltd is owned by Sajida Foundation, a non-profit organisation engaged in microfinance and other activities concerning social upliftment. Even outside of the various CSR activities undertaken by Renata, half of the enterprise, by nature of its ownership, represents a social business. This is an excellent example of the commitment to CSR; the success of the business enterprise has been widely shared with the community at large. A sizeable portion of the DBL Group’s profit is channelled into CSR activities, reflecting their commitment to social development. This enterprise provides wide-ranging support in the fields of education and health, especially supporting the general ward of the burn unit at Dhaka Medical College Hospital.
Nestle Bangladesh does exemplary work in water conservation, especially in their recycling and rainwater harvesting initiatives. It supports the immediate community by providing drinking water to neighbourhood schools, as well as extending support for sanitation, computers and life skills trainings (on water education and nutrition). Despite the small scale of these activities, they have significant demonstrative value for replication.
This year’s winners of Standard Chartered Financial Express CSR awards should be congratulated and hailed for showing the way and inspiring the business community for doing what other sectors in Bangladesh cannot do so easily — bring about real change in people’s lives.
(Article originally published on The Daily Star)
The writer is the head of corporate affairs, Standard Chartered Bank, Bangladesh.
The post CSR and a new order of business appeared first on Dhaka Mirror.
]]>