Globally, the notion of Corporate Social Responsibility (CSR) is fast gaining acceptance as the contribution that businesses can and should make voluntarily towards environmentally sustainable and socially equitable development. Besides the usual financial reporting, ‘non-financial’ or ‘sustainability’ reporting is accordingly also fast gaining usage.
Stated briefly, CSR is about (i) taking stock of
the economic, social, and environmental impacts of a business, (ii) mitigating
the negative impacts and bolstering the benign impacts, (iii) taking up action
programs and community investments to reduce social exclusion and inequality
and to address the key sustainable development challenges.
Initiating CSR programs in banks/financial
institutions
Embracing CSR has to begin with decision at the
highest corporate level (board of directors), and adoption of action programs
and performance targets chosen in consultative processes involving the internal
and external stakeholders concerned. A first time CSR program of a bank or
financial institution would be likely to include action plans for:
i) Ingraining environmentally responsible
practices within the organization;
ii) Engaging with borrowers in scrutiny of the
environmental and social impacts of their proposed undertakings (along the PKSF
2004 or Equator Principles 2006 guidelines, as relevant);
iii) Reaching out with financial services to the
less well off population segments of the community and,
iv) Community investments by way of donations to
initiatives of Civil Society Organizations (CSOs), NGOs and institutions
involved in health, education and culture; for social and environmental
improvement including nutrition, health and education in the disadvantaged
population segments.
Foreign banks in Bangladesh having structured CSR
programs (in line with their home country practices) can come forward to
usefully mentor the new, incipient CSR initiatives of local banks.
Networking and joint initiatives in CSR programs
among banks and financial institutions may be useful in some cases in devising
more inclusive, comprehensive programs of necessary critical size.
Reporting of the CSR initiatives can begin in a
modest way as supplements to usual annual financial reports, eventually to
develop into full blown comprehensive reports in the GRI format. Like the
statutory financial reports, the CSR reports are expected to be available in the
public domain for perusal by stakeholders.