CORPORATE SOCIAL RESPONSIBILITYIn Context of Unilever, Bangladesh and Global

Scenario

EMBA programDepartment of International Business

Faculty of Business StudiesUniversity of Dhaka

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CORPORATE SOCIAL RESPONSIBILITYin Context of Unilever, Bangladesh and Global

Scenario

Submitted To:

Chowdhury Saima FerdousLecturer,

Department of International Business,Faculty of Business Studies,

University of Dhaka.

Submitted By:

1. Md. Showkat Kamal, ID# 808010332. Sabrina Nahid Hassan, ID# 808010123. Mustafa Zaved Bin Shaheed, ID# 808010324.Tahera Khatoon, ID# 80801007

16th August, 2008.

EMBA programDepartment of International Business

Faculty of Business StudiesUniversity of Dhaka

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Letter of Transmittal

16th August, 2008.

Chowdhury Saima Ferdous,Lecturer,Department of International Business,Faculty of Business Studies,University of Dhaka.

Subject: Submission of term paper on “Corporate Social Responsibility in context of Unilever,

Bangladesh and Global Scenario”.

Dear Madam,

Please see enclosed herewith our paper “Corporate Social Responsibility in context of Unilever,

Bangladesh and Global Scenario”. This is a great pleasure for us to submit this paper that you have

permitted us. This paper was worthwhile experience for us. We have truly enjoyed our time

attachment with the preparation of this report.

We have tried to make the report comprehensive one with in the time. Any short of suggestion

regarding the paper would be greatly acknowledge and we would feel gratified if my paper serves its

purposes.

Thanking you.

Sincerely yours

1. Md. Showkat Kamal, ID# 80801033 2. Sabrina Nahid Hassan, ID# 808010123. Mustafa Zaved Bin Shaheed, ID# 808010324.Tahera Khatoon, ID# 80801007

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Acknowledgement

We acknowledge our profound indebtedness and expresses our sincere gratitude to our course

Teacher, Ms. Chowdhury Saima Ferdous, Lecturer, Department of International Business,

Faculty of Business Studies, University of Dhaka, for constant guidance, supervision and

suggestions at all stages in conduction of this Term Paper. We also express our thanks to the

Unilever, Bangladesh who gave us an idea about collection of information.

We finally wishes to express our heartiest thanks to our respected teachers of Department of

International Business, Faculty of Business Studies, University of Dhaka, and to all those

who directly or indirectly helped us in this work.

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Table of Contents

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Executive Summary

These report highlights, the concept of evaluation of corporate social responsibility based on

the performance of Unilever, Bangladesh and global scenario. This report will help other

companies to compare the intended to obtain greater efficiency and how to analyze the

performance of any company which intends to start the corporate social responsibility. The

performance of Unilever, Bangladesh shows that CSR was totally justified and rational as the

company has a higher profit and increasing its profit day by day. Company is committed to

provide better service to them.

In response to the numerous social challenges facing businesses.

The model of social responsiveness includes the policy stage, the learning stage, and

the organizational commitment stage.

Global citizenship begins with perspective, respect, and commitment to work within

the framework of a nation's values and ethics.

Corporate social responsibility means that a corporation should be held accountable

for any of its actions that affect people, their communities, and their environment.

Businesses must recognize their vast power and wield it to better society.

Corporate social responsibility is a highly debatable notion. Some argue that its

benefits include discouraging government regulation and promoting long-term

profitability for the firm.

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Chapter One

1. INTRODUCTION

1.1 Introduction

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

Businesses all over the world have practiced only profit-making actions at past but not for

long as the enterprises 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 that business has social obligations

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

1.2 Objectives of the Study

Corporate social responsibility challenges businesses to be accountable for the consequences

of their actions affecting the firm's stakeholders while they pursue traditional economic goals.

The general public expects businesses to be socially responsible, and many companies have

responded by making social goals a part of their overall business operations. Guidelines for

acting in socially responsible ways are not always clear, thus producing controversy about

what constitutes such behavior, how extensive it should be, and what it costs to be socially

responsible.

Socially responsive corporations consider and carefully seek to foster mutually beneficial

relationships with their stakeholders.

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1.3 Methodology

In preparing the report, we mainly used the knowledge that we gathered in the concerned

course. To prepare this report we have taken secondary data published by Security Exchange

& Services and the published prospectus by Unilever that helps us to evaluate the share price

of Unilever. We have taken help from the company published annual data. We also contacted

with some of the company officials to learn some data and procedure of how they actually

measure the price of share. We also take help from books to justify whether the price of share

is accurate.

1.4 Company Overview

At a glance

1.4.1 Unilever today

Their brands are trusted everywhere and, by listening to the people who buy them, They have

grown into one of the world's most successful consumer goods companies. In fact, 150

million times a day, someone somewhere chooses a Unilever product.

Look in your kitchen, or on the bathroom shelf, and you're bound to see one of their well-

known brands. They create, market and distribute the products that people choose to feed

their families and keep themselves and their homes clean and fresh. 

Over the the last four decades, Unilever Bangladesh has been constantly bringing new and

world-class products for the Bangladeshi people to remove the daily drudgery of life.  Over

90% of the country’s households use one or more of our products.

Unilever is one of the world's leading suppliers of fast-moving consumer goods. Here are

some recent highlights from their three global divisions - Foods, home care and personal care.

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Foods The acquisition of Bestfoods in 2000 brought us leadership in the culinary category.

They are in the world's leading ice cream producer.

They are the largest seller of packet tea in the world through their Lipton and Brooke

Bond brands.                  

Home & personal care They lead the home care market in much of the world, which includes cleansing and

hygiene products.

Many of their home care products are market leaders including Brilhante, Cif,

Comfort, Domestos, Omo, Skip and Snuggle.

Within the personal care market, they are global leaders in products for skin

cleansing, deodorants and antiperspirants.

Their global core brands in the personal care market are Axe, Dove, Lux, Pond's,

Rexona and Sunsilk.

1.4.2 Mission

“Unilever's mission is to add vitality to life. We meet everyday needs for nutrition, hygiene,

and personal care with brands that help people feel good, look good, and get more out of

life”.

1.4.3 Product categories

Household Care, Fabric Cleaning, Skin Cleansing, Skin Care, Oral Care, Hair Care, Personal

Grooming, Tea based Beverages.

1.4.4 Their brands in Bangaladesh 

Wheel, Lux, Lifebuoy, Fair & Lovely, Pond's, Close Up, Sunsilk, Taaza, Pepsodent, Clear,

Vim, Surf Excel, Rexona, Dove, Vaseline & Lakme.

Chapter Two

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2. Literature Review

2.1 Corporate Social Responsibility-An Evaluation

Corporate initiative to assess and take responsibility for the company's effects on the

environment and impact on social welfare. The term generally applies to company efforts that

go beyond what may be required by regulators or environmental protection groups. 

Corporate social responsibility may also be referred to as "corporate citizenship" and can

involve incurring short-term costs that do not provide an immediate financial benefit to the

company, but instead promote positive social and environmental change.

Business firms conduct activities to produce goods and services to generate profits. These

activities contribute a lot to affect our society. Social responsibility is the awareness that

business activities have an impact on society and the consideration of that impact by firms in

decision-making. Besides emphasizing profits, firms concerned with social responsibility

voluntarily engage in activities that benefit society. Specifically, social responsibility is the

set of obligations an organization has to protect and enhance the social context within its

functions.

“Corporate social responsibility may be defined as the notion that corporations have an

obligation to constituent groups in society other than stockholders and beyond that prescribed

by law or union contract.”

Today many firms practice social responsibility to varying degrees. But it should be noted

that the central feature of the above definition is that an action must be voluntary to qualify as

socially responsible action. A firm that makes deliberate, regular efforts on efforts on

activities for social benefit. Purposes of these efforts are-

(a) To increase positive impact or

(b) To reduce negative impact on society.

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But initially 4 types of social responsibilities are considered as the basic of being socially

responsible.

These are:

(A) Responsibility to consumers,

(B) Responsibility to employees,

(C) Responsibility to environment,

(D) Responsibility to investors

The points above are described below:

(A) Responsibility to consumers: firms need to bother about responsibility to consumer’s

because-

Satisfied customers become permanent customers,

They do the advertising,

Customer’s are increasingly looking beyond firm’s products- if they find anything

opposing they may boycott the product and influence others also to boycott,

Moreover, there is a increasing pressure of consumerism (activities of

Individuals, groups, organizations to product consumer rights.).

(a) The right to safety:

(b) The right to be informed:

(c) The right to choose:

(d) The right to be heard:

(B) Responsibility to employees:

To be responsible towards employees org can focus on the following area:

Safety in workplace, Equality in the workplace, The hard-core unemployed and Balance in payments.

(C) Responsibility to environment:

One vital environment concern is pollution-the contamination of water, air and land.

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1. Water pollution:

2. Air pollution:

3. Land pollution:

(D) Responsibility to investors:

Firms have the responsibility to the people who invest money in them. All the stakeholders of

a firm is concerned about the mishandling of-

1. Investor’s fund.

2. Insider trading stock

3. Executive compensation

Arguments for corporate social responsibility Balances corporate power with responsibility. Discourages government regulation. Promotes long-term profits for business. Responds to changing stakeholders’ demands. Corrects social problems caused by business.

Arguments against corporate social responsibility Lowers economic efficiency and profitImposes unequal costs among competitors. Imposes hidden costs passed on to stakeholders. Requires social skills business may lack. Places responsibility on business rather than individuals.

2.2 HISTORY OF CORPORATE SOCIAL RESPONSIBILITY

Three waves of development:

1. Community relations and contributions responsive to local pressures/needs and

CEO/Senior Management - 1960s & 1970s

2. "Corporate citizenship model" based on ethical issues (BSR) including "the new

corporate or strategic philanthropy" - 1980s & 1990s

3. "Strategic alliances" closely aligned with corporate objectives - 1999 & beyond

Traditionally business operated exclusively on the mantra of maximizing profits. As long as

"the firm could sell its good[s] or services at prices high enough to make a profit and survive,

then its social obligation was fulfilled."

2.3 Why has CSR become important?

Many factors and influences, including the following, have led to increasing attention being

devoted to CSR:

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Advances in communications technology, such as the Internet, cellular phones and

personal digital assistants, are making it easier to track corporate activities and

disseminate information about them. Non-governmental organizations now regularly

draw attention through their websites to business practices they view as problematic.

Consumers and investors are showing increasing interest in supporting responsible

business practices and are demanding more information on how companies are

addressing risks and opportunities related to social and environmental issues.

Numerous serious and high-profile breaches of corporate ethics have contributed to

elevated public mistrust of corporations and highlighted the need for improved

corporate governance, transparency, accountability and ethical standards.

Citizens in many countries are making it clear that corporations should meet standards

of social and environmental care, no matter where they operate.

There is increasing awareness of the limits of government legislative and regulatory

initiatives to effectively capture all the issues that corporate social responsibility addresses.

Businesses are recognizing that adopting an effective approach to CSR can reduce risk of

business disruptions, open up new opportunities, and enhance brand and company reputation.

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Chapter Three

3. Unilever in CSR

3.1 Unilever in CSR

As a part of their public welfare campaign, they have introduced “The Mobile Hospital”

under the brand of Lifebuoy soap. This facility provides free medical services to the people

who cannot afford to go to normal hospitals for their treatment. This step has been greatly

encouraged other Multi National Companies to provide similar services to people. They have

also come up with the “Free Dental Service” under the umbrella of Pepsodent Toothpaste.

This proves their active participation in the helping the society and socially responsible

actions. Their public welfare acts have been highly appreciated by the public.

3.1.1 Shada moner manush

In Bangladesh, there are people with hearts of gold, people we call ‘Shada Moner Manush’. These people have dedicated themselves to improving the lives of those around them, not for monetary gain or for political benefit but because they care.

3.1.2 Project Joyeeta

Project Joyeeta

‘Joyeeta’ is a unique initiative of Unilever Bangladesh to provide sustainable opportunities for over 2900 women in rural Bangladesh to earn their livelihood. Joyeeta is derived from the Bengali word ‘Joy’ which means ‘Win’. Joyeeta is the embodiment of a fearless female spirit trying to better her socio-economic condition by trying new options given her surroundings and ground realities. In recent times Non Government Organizations (NGO)s and government bodies are collaborating to establish self-help groups for the development of rural women supported by micro-credit program. So, Project Joyeeta came out as a realistic

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venture of Unilever Bangladesh aimed at improving the lives of rural women bringing them into a sustainable income generation through entrepreneurial skills.

3.1.3 Education for all

Dhaka city is a fast paced metropolis where the rich and poor co-exist. Given the need for income support most children of lowest income families in the capital city miss out the opportunity to go to school.

Working with SSKS

Unilever came forward to support an institution that provides free primary education to children of lowest income families. There exist some institutions that provide education to these hapless children and one such organisation is Shathee Samaj Kalyan Samity (SSKS), an NGO working for the slum residents in the city’s posh residential area- Banani.

3.1.4 Free evening school

Besides entrepreneurial training and other activities, SSKS runs a free evening school for children residing in slums and was funded by an international NGO thus far. Towards the end of 2004, the supporting organisation wrapped up its activities from Bangladesh which left SSKS floundering for funds.       

3.1.5 Hygiene & health

UBL volunteers also visits the school to demonstrate the importance of hygiene and health. Pop quizzes through which the children could win Lifebouy soaps, or a Pepsodent toothpaste with each correct answer creates a flurry of eager hands to jumping up to answer that makes it a sight to see!

3.1.6 Uttorone Nari

The Fair & Lovely Uttorone Nari Program has brought the opportunities of computer education to girl students of economically weaker sections

Sponsorship

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In 2003, Fair & Lovely - the popular skin care cream in Bangladesh sponsored meritorious girl students from secondary school level to computer education from a world class computer training institute, spread out in various branches in all districts of the country. More than 1500 girl students were nominated throughout the country to be trained under this program. 

3.1.7 Scholarships for higher education

FAL Foundation is providing higher education scholarships for women with the potential and passion for university education and a professional career.

Rewarding talent 

Fair and Lovely Foundation undertook many initiatives to encourage women to become empowered with skills for economic independence in life and self fulfillment. The scholarship program was one such initiative that supported the dreams of talented women from economically disadvantaged families.

3.1.8 Urban training

In a new and exciting urban training project , FAL foundation started the vocational training project for 500 urban women across different income generating sectors in order to improve their economic independence.

3.1.9 Fair & Lovely Foundation

When we try to improve the economic situation of a woman , we help to directly improve the lifestyles of households.

Empowering Women

In Bangladesh, like many other developing countries, women facing the same poverty issues as men are subject to additional social and policy biases. For this, they remain backward in terms of education and economic independence. Therefore their need for a guide with a sincere mission to enhance the state of the Bangladeshi women is recognized by all quarters. 

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3.1.10 A floating hospital

So what did UBL do? UBL worked with a small NGO named "Friendship" on the innovative idea of establishing a floating hospital to bring essential health services to the char-dwellers.

The Lifebouy Friendship Hospital was launched in 2002. Follow the link below to read more about the hospital.

3.1.11 Nutrition

We’re constantly learning more about the links between food and well-being – it helps us create more foods that make a positive contribution to health.

3.1.12 Pepsodent - Bangladesh Dental Society Oral Health Day

Unilever Bangladesh and Bangladesh Dental Society (BDS) have been working together for over a decade to promote oral health of Bangladeshi people. One of the major activities that is carried out in partnership is the Pepsodent - Bangladesh Dental Society Oral Health Day.

3.2 Global Scenario in CSR

Businesses around the world have now made social responsibility as a part of their business

operations. Throughout the world, many multinational firms have opted to respond to the fact

of their belongingness to the society. It is visible through the act of many companies who

have showed their appropriate social responsiveness.

3.2.1 Shell

Key highlights of Shell’s 2003 social performance:

Improved safety performance

$5.2 billion invested locally in developing countries

$11.3 billion in royalties and corporate taxes

3.2.2 British American Tobacco

Within the last decade, BAT has done a lot in respect to their social responsibility.

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They have accomplished a lot in different sectors:

Education -These programs focus on helping educators and parents to teach children to

exercise responsibility and independence and to resist negative peer pressure, including

resisting pressure to smoke.

Retail access prevention- They include proof-of-age schemes and teaching retailers

about relevant laws and ways of preventing sales to minors.

Advertising campaigns -Advertising can play a vital role in communicating that

youth should not smoke.

3.2.3 Herman Miller

Herman Miller, the furniture-manufacturing corporation made a revolutionary step in

preserving rain forest. Instead of using tropical wood i.e. rosewood it uses cherry, which does

not come from the tropics. This practice not only encouraged the customer to buy their

wooden office desk and tables, it has added more luster to the company’s fine reputation.

Inspired by Herman Miller’s decision, the Business and Institutional Furniture Manufacturers

Association now urges all its members not to use tropical wood from endangered forests.

3.3 CORPORATE WORLD IN BANGLADESH

As similar to any other third world developing nation, Bangladesh’s economic sector is still

in the infant stage. It is yet to develop fully. There are very few worthwhile industries to be

named.

A list of the foreign investors in Bangladesh is as follows:

Unilever Bangladesh Ltd., British American Tobacco, Standard Chartered Bank, HSBC,

Dutch Bangla Bank, Reckitt Benckiser and so on. They have contributed a lot in terms of

social responsibility in Bangladesh.

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3.3.1 Hong Kong and Shanghai Banking Corporation (HSBC)

HSBC Bangladesh has inaugurated a beginner’s computer course for the students of School

of Hope at the Training Centre of the Bank at Motijheel with the help of Bank's resources and

involvement of staff. Sixteen students from grade 5 will be benefited from the course. This is

the second year that HSBC arranged such a course for the school. This endeavor is a

reflection of the Bank's ongoing contribution to the welfare of the society.

3.3.2 Standard Chartered Bank

The Standard Chartered Bank, Bangladesh has also performed such public welfare programs.

The Standard Chartered Operating Theatre and Children's Ward at Islamia Eye Hospital was

officially opened on 12 August 2003, by Group Executive Director, Mr. Chris Keljik. About

150 children have been operated on at the Standard Chartered Operating Theatre at Islamia

Eye Hospital.

The Standard Chartered Bank has also built luxurious bus stop for the relaxation of the

commuters between the intervals of arrivals of buses, just like the one in Gulshan.

3.3.3 Dutch Bangla Bank:

Dutch-Bangla Bank has done a lot in respect to their social responsibility. They have

accomplished a lot in different sectors:

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Education -

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 a Pick-up Van to Bangladesh Agricultural University

DBBL has donated books for Dhaka University Central Library

DBBL awards scholarships to the meritorious and needy Students

International Mathematical Olympiad-2006

  Diaster

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

  Health-

Donation to different organization- 

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

people whose 30% will be free and rest will be at low cost.

Tk.90 lac to kidney foundation for setting up Operation Theater.

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Diabetic Hospital: DBBL donates Tk.1, 00,00.00 per month to bear operational expenses

of Narayangonj Diabetic Hospital since October 2001.

Rural Health Care: DBBL has established Rural Health Center at its rural branches to

render free medical services to the rural and destitute people of the adjoining areas.

3.3.4 City cell Digital

A local telecommunication enterprise has recently provided stickers with the phone numbers

of Police Control room in order to register traffic complaints faced by the commuters of

C.N.G auto rickshaws and taxi cabs.

3.3.5 Partex Graded Board, Aqua Paints and Dhaka Bank

At various locations of the Dhaka city, important numbers of various police officers for

public concern have been exhibited by local companies like Partex Graded Board, Aqua

Paints and Dhaka Bank.

.

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3.3.6 Shark energy drink

Another local firm has supplied free umbrellas for the convenience of traffic sergeants who

toil in the hot and humid days for the service of the people.

3.3.7 Biodiversity and pollution

The river Buriganga and its adjacent tanneries of the Hazaribag, Dhaka, can be a prime

example of the extent of corporate irresponsibility. Today the Buriganga can be considered

literary “dead” in terms of its bio-diversity, thanks to the wholesale dumping of industrial

waste products by the tanneries situated on the riverbanks.

According to the Environment Department, up to 40,000 ton of tannery waste flows into the

river daily along with sewage from Dhaka, a city of more than 10 million. Industrial waste

occupies 30 percent, most of which comes from the tanneries.

Chemical analysis suggests that strong color; high BOD, high pH and high dissolved salts

characterize tannery wastes. Disposal of these wastes into watercourse with or without prior

sedimentation creates a great problem in the environment, especially in the river Buriganga.

Wastes are not usually treated to a certain degree before it goes to the river.

The water in the low-lying areas near Hazaribagh, with a direct link to the Buriganga River,

is polluted in such a degree that it has become unsuitable for public uses. In summer when the

rate of decomposition of the waste is higher, serious air pollution is caused in the whole of

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Hazaribagh area, including a part of not too far high-class residential area, by producing

intolerable obnoxious odors.

The pollutants of tannery wastes are of inorganic, organic and toxic nature and require

elaborate treatment before disposal to prevent physical, chemical and biological pollution of

the receiving body of water. The tannery waste with high concentration of dissolved solids,

suspended solids, chloride, color, ammonia and very high BOD and COD with no dissolved

oxygen is being discharged every day in the receiving water.

Extent of this problem shows how horrible situation the corporate bodies of our country can

cause. The recent obligation set by the government to move these tanneries to other places in

two years time shows how accommodative and least proactive the businesses are in

Bangladesh.

3.3.8 Labor Union condition in our garments and textile industry

Garments and textile are two industries that are very vital for our economy. Over the years

the garments products have occupied a major share of our total exports. These industries

require labor as their most important factor of Production. However, do these firms at all

behave responsibly towards their labor force?

Bangladesh's garment industry employs some 1.5 million

Workers, 85% of whom are women. The industry now

accounts for 75% of Bangladesh's export income. Out of

3,000 garment factories, less than 1% has active factory

level trade unions with collective bargaining agreements.

The enforcement of labor laws is weak.

The factory owners seldom allow unions. In fact in the export processing zones, law prohibits

unions. According to Sk. Nazma, The President of the Bangladesh Workers Solidarity Center,

“despite all the abuse, the harsh conditions and starvation wages, there is not one single union

that can operate openly in any of the factories.”

Some government officials and most of the factory owners argue against trade union in

garments industry in the sense that it will not be economically feasible for a poor country like

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Bangladesh. We all know that at least a smaller labor union should be there for providing

check and balance. In foreign countries, some enterprises proactively look after the benefits

of their workers so that workers do not feel the need for active unionism.

However, by looking at the plight of garments workers we cannot draw any similarity to our

garments industries.

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Chapter Four

4.1 Findings

The paper finds that the main obstacles of CSR are: negative image of business,

dysfunctional legal background, corruption, difficult economic situation of many companies,

the lack of an ethics and ethical standards, and difficult situation on the job market. The main

opportunities are: contacts of the companies with the foreign partners, self-regulation trends

of business, good economic growth rate.

CSR can significantly improve long-term corporate profitability because it reduces risks and

inefficiencies while offering a host of potential benefits such as enhanced brand reputation

and employee engagement.

Some companies use CSR methodologies as a strategic tactic to gain public support for their

presence in global markets, helping them sustain a competitive advantage by using their

social contributions to provide a subconscious level of advertising

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4.2 Limitation

The limitations and opportunities of the development of CSR in Bangladesh that the

implementation of the idea is bound to be a lengthy process requiring involvement, effort and

determination from authorities and the cost to implement. Some other obstacles to implement

CSR are: negative image of business, dysfunctional legal background, corruption, difficult

economic situation of many companies, the lack of an ethics and ethical standards, and

difficult situation on the job market. The last factor has prime importance for the perception

of CSR in Bangladesh – the country with the highest unemployment rate in the world. As

corporations pursue growth through globalization, they have encountered new challenges that

impose limits to their growth and potential profits. Government regulations, tariffs,

environmental restrictions and varying standards of what constitutes labour exploitation are

problems that can cost organizations millions of dollars. Some view ethical issues as simply a

costly hindrance.

Lack of experience was the most significant limiting factor in preparing this report.

Since the report was based on primary data there was a possibility of personal error and

undue influence in the collection and analysis. Due to risk of disclosing of trade secrets,

all information was not available and this put a limit to the extensiveness of the report.

Time was also a constraining factor in writing the report.

Sufficient books, publications, facts and figures are not available. These constraints narrowed

the scope of accurate analysis. If these limitations were not been there, the report would have

been more useful and attractive.

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4.3 Recomendations

The idea of corporate social responsibilities is quiet a new term in the corporate world of

Bangladesh and the practices are in a very rudimentary form. There are so many fields where

different companies are not abiding by the existing laws of the land and they are very

successful in nature. However, the encouraging sign is that there are businesses trying to be

as proactive as possible like the multinational companies along with the local Enterprises like

DBBL. With the active participation of these businesses in our social welfare, this culture

Corporate Responsibilities is slowly taking roots in different spheres of the business world.

Here are some of the recommendations that the Bangladesh based firms might follow in order

to contribute more towards the society.

Firms especially the tanneries have to more proactive in terms of waste management

system.’

Different environment friendly systems of waste management like Recycling etc.,

can be introduced by the joint effort of the concerned firms

Labor, especially in the garments industry and firm located inside different EPZs

around the country should be given more opportunity to place their concern to the

employees.

Moreover, the firms have to come forward to proactively consider the concern of

labor force so that they can avoid the presence of active trade unionism in their

factories.

Industries like food processing and restaurants should follow the safety standards

more vigorously sometimes should go beyond the scope of existing laws and

regulation.

. All in all enterprises of this country should take social reporting as an important

part of their business operation.

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4.5 Conclusion

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

helpless when it comes to the solving of these problems. As business owners in this country

are considered as part of the affluent section of the society they can contribute more

meaningfully towards the betterment of the society. CSR may provide a chance for a

successful development of the concept in the future. The companies awarded in such

programs are formally and officially assured of the rightness of their social and

environmental policies, in some cases implemented for a long time

CSR is promoted in Bangladesh mainly by foreign companies with branches in our country.

They organize informational and educational actions, and more importantly are able to show

how to involve business in actions for society and natural environment through many

programs realized in our difficult reality. It is especially important that they send the message

that the involvement has to be permanent and not just limited to temporary actions, which is

what Bangladeshi society is accustomed to. The foreign standards are also a source of

inspiration for the institutions that deal in helping the people and organizations in need to

contact the companies that can provide the help.

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

helpless when it comes to the solving of these problems. As business owners in this country

are considered as part of the affluent section of the society they can contribute more

meaningfully towards the betterment of the society.

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Reference

1. Management, Robert Kreitner, Ninth Edition

2. Management, Koontz, O’Donnell, Weihrich

3. Business 21st Century, Steven J. Skinner & John M. Ivancevich

4. Corporate Social Responsibility, Jerry W. Anderson

5. Corporate Social Responsibility News & Resources

www.mallenbaker.net/csr/index.html

www.miami.com/mld/miamiherald/news/opinion/9202284.htm

www.nzbr.org.nz/documents/speeches/speeches-96-97/aiesec.doc.htm

6. Toyota Auto Corporation Website

www.toyota.com/about/community/education/2003/teachers.html

www.toyota.com/about/community/education/2003/familyliteracy.html

www.toyota.com/about/environment/news/index.html

www.toyota.com/about/environment/manufacturing/help_environment.html

www.toyota.com/about/environment/technology/fuelcell.html

7. Shell Corporation CSR Info

www.ameinfo.com/news/Detailed/38664.html

8. British-American Tobacco CSR reference website

www.education.guardian.co.uk/ mba/story/0,12010,994640,00.html

www.goiaba.blogs.com/csrbrazil/2004/06/bats_and_rural_.html

9. Rabobank - Corporate Social Responsibility

www.rabobank.com/content/rabobank/ sustainability/sustainability.html

10. HP Global Citizenship Report 2004

www.hp.com/hpinfo/globalcitizenship/csr/csrreport02

11. HSBC in Society Website

www.hsbc.com/hsbc/news_room/news/news-archive-2004/corporate-

socialresponsibilty?isPc=false.

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12. Standard Chartered CSR Web - Profile

www.iblf.org/csr/csrwebassist.nsf/ content/f1b2a3ax4.html

13. Unilever Bangladesh Limited Website

www.leverbangladesh.com/ie/company_chairman02.html

14. WWW.NLCNET.ORG

www.nlcnet.org/campaigns/ shahmakhdum/testimony-lisa.shtml

15. WWW.USAID.GOV

www.usaid.gov/bd/dem_gov.html

16. Daily Times - Site Edition

www.dailytimes.com.pk/default. asp?page=story_5-5-2003

17. The Bangladesh Observer - Net Edition

awww.bangladeshobserveronline.com/ new/2004/01/21/district.htm

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