Letter of TransmittalStar Group, 1A Date: April, 26, 2010

Sheikh Mohammad Sayem & Md. Mahmudul Huq Instructor: Business Research and Financial ManagementASA University Bangladesh Subject: Submission of report. Dear Sir, Following to your request, we would like to submit this report that has been made on Corporate social responsibility of private commercial bank in 2010. In order to maintain standards taught during the course, the report has been compiled with a lot of effort. All topics that were relevant have been covered in this report in great detail. If you have any queries or doubts about the compilation of this report you may feel free to contact us.

Sincerely Yours, Abu Saif Foysal Ahmed Mir Moshiuzzaman Rafel Hasanuzzaman Motassim Billah Raju Ahmed Section: 1A BBA Program

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Report On Business Research

Topic Corporate Social Responsibility of Private Commercial BankCode: BUS-333 Prepared ForSheikh Mohammad SayemSenior Lecturer, Faculty of Business, ASA University Bangladesh.

Md. Mahmudul HuqSenior Lecturer, Faculty of Business, ASA University Bangladesh.

SL 01 02 03 0405 06

Name Foysal Ahmed Mir Moshiuzzaman Hasanuzzaman Mutassim Billah Raju Ahmed Abu Saif Prepared By

ID 071-12-107 071-12-112 071-12-113 071-12-108 071-12-560 071-12-131

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Letter of Authorization

April, 26, 2010 ASA University Bangladesh

Subject: Declaration of the authenticity Dear Sir, As authorized by our teacher by our teacher Sheikh Mohammad Sayem and Md. Mahmudul Huq we decided to chose for the assigned term paper and as pre requirement of the course Corporate Social Responsibility (CSR) on the Commercial Bank. This report contains an overview of past and current activities of private banking sector. We tried to give the best efforts to make this task which would be free from plagiarism and cloning writings. As we acknowledged the main part of the bodies to represent the jest of the activities and took the sources from where it can be taken as well. We hope that you will weigh our effort properly.

Yours sincerely, Abu Saif Foysal Ahmed Mir Moshiuzzaman Rafel Hasanuzzaman Motassim Billah Raju Ahmed Section: 1A BBA Program

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Executive SummaryCorporate social responsibility is a concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders, as well as the environment. We have tried to give a comparative picture of corporate social responsibilities (CSR) of Private Bank. We also defined what corporate social responsibilities and tried to show how important it is in this 21st century. This obligation is seen to extend beyond the statutory obligation to comply with legislation and sees organizations voluntarily taking further steps to improve the quality of life for employees and their families as well as for the local community and society at large. The practice of CSR is subject to much debate and criticism. Proponents argue that there is a strong business case for CSR, in that corporations benefit in multiple ways by operating with a perspective broader and longer than their own immediate, short-term profits. Critics argue that CSR distracts from the fundamental economic role of businesses; others argue that it is nothing more than superficial window-dressing; still others argue that it is an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations. In particular, recent research suggests that CSR may be an excellent instrument to enhance the legitimacy of the firm among its stakeholders and to develop positive social responsibility images. The scale and nature of the benefits of CSR for an organization can vary depending on the nature of the enterprise, and are difficult to quantify, though there is a large body of literature exhorting business to adopt measures beyond financial ones. CSR may be based within the human resources, business development or public relations departments of an organization, or may be given a separate unit reporting to the CEO or in some cases directly to the board. Some companies may implement CSR-type values without a clearly defined team or programmed. Moreover, we can say that there are not only problems but also opportunities for further improvement by the business world of this country in the field of CSR

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Table of ContentExecutive Summary .. 4 Chapter-1 [Introduction].[68] 1.0 Introduction6 1.1 Research objectives ....7 1.2 Background....7 1.3 Views of Social Responsibility.8 1.4 Problem Statement...8 Chapter-2[Methodology]..[926] 2.0 Methodology9 2.1 Research design and Sampling design....9 2.2 Benefits of CSR.10 2.3 Data collection1016 2.4 Data Analysis1626 Chapter-3[Conclusion]...[2729] 3.0 Findings..27 3.1 Conclusion28 3.2 Recommendation. 29 3.3 Reference...30 Chapter-3[Appendix].. [3137]

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Chapter: 011.0 IntroductionSocial responsibility is a concept well known in the corporate world and beyond that. Business all over the world have practiced only profit making actions at past but not for long as the enterprise 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 is that, the business has social obligations and 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. In general, CSR is characterized by the following aspects: Responsible entrepreneurship Voluntary initiatives going beyond legislative requirements and contractual obligations Activities to benefit the employees, business relevant groups (including the society as such) or the environment With a positive contribution to the individual target group while minimizing negative effects on other (including environment) Regular activities rather than one-time-events (i.e. related to business strategy vs. ad hoc)

CSR is entwined in the strategic planning process of many multinational organizations. The reasons or drive behind social responsibility towards human and environmental responsibility whether driven by ulterior motives, enlightened self-interest, or interests beyond the enterprise, is subject to much debate and criticism.

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1.1 Research objectives:Private Bank believes in its uncompromising commitment to fulfill its customer needs and satisfaction and to become their first choice in banking. Taking cue from its pool esteemed clientele, Bank intends to pave the way for a new era in banking that upholds and epitomizes its vaunted marquees "Your Trusted Partner" Furthermore, the relationship between these two concepts is discussed from value theoretical viewpoint. Some group's estimation of firm's reputation in CSR context for these priorities are also reflected within firm's CSR actions. Second, it also participates in filling the existing void of qualitative research in reputation and CSR matters. Strategic objectives are; to achieve positive Economic Value Added (EVA) each year. to be market leader in product innovation. to be one of the top three Financial Institutions in Bangladesh in terms of cost efficiency. to be one of the top five Financial Institutions in Bangladesh in terms of market share in all significant market segments we serve. Financial objectives are; to achieve 20% return on shareholders' equity or more, on average. However, a great majority of these previously reviewed empirical studies dealing with relationship between CSR and reputation have been quantitative in nature. Basically, these are the some of core objectives of the private banking sector that are generally considered for the research activities. 1.2 Background: Definitely social responsibility includes the responsibility of social people, groups, societies, and business organization. Mercantile Bank Limited emerged as a new commercial bank to provide efficient banking services and to contribute socio-economic development of the country. The Bank commenced its operation on June 2, 1999. The Bank provides a broad range of financial services to its customers and corporate clients. The Board of Directors consists of eminent personalities from the realm of commerce and industries of the country. It is of course legitimate to raise the issue of social responsibility 7

of business. But we hear rather less about the social responsibility of, say, the churches, the media, trade unions, the professions, universities, or even the government. When people collectively organize themselves in organizations of one kind or another, do those impersonal legal entities really acquire social responsibilities, which differ from those of other collective entities? Many people are uneasy about the profit motive, suspecting that profits emerge only from exploitation. They fear that free enterprise encourages greed and selfishness. They are reluctant to accept the logic of Adam Smiths famous theory of invisible hand, which holds that business people the general interest more effectively by pursuing their own interests than by directly trying to do good. I suggest that, this is why we are here little about the social responsibilities of churches, charities and so on. Business, in contrast, is assumed to have a problem about its social responsibilities because it is driven by profit-motives. In contrast, the negative duty view implies that CSR initiatives constitute mainly a legitimacy instrument whereby the firm demonstrates its adherence to stakeholder norms and expectations. Finally, both the negative duty and the utilitarian approaches suggest that CSR can be used as an impression management tool employed to influence stakeholders' perceptions of the company Processes designate the managerial Procedures and instruments employed by businesses to bring their motivational principles into practice. 1.3 Views of Social Responsibility It will become most caring, focused for equitable growth based on diversified deployment of resources, and nevertheless would remain healthy and gainfully profitable Bank. There are two views of social responsibility. Those are The Classical View The Socioeconomic view The Classical View: The view that management only responsibility is to maximize profits. Some big companies such as Beximco Group, Abul Khair Group dont contribute broadly in corporate social responsibility. The Socioeconomic View: This is the modern views of todays global business of economy. In this view managements social responsibility goes beyond making profit to include protecting and improving societys welfare. Some companies such as Abdul Monem Limited, Unilever, Dutch Bangla Bank etc. spends huge amount of money for the society 1.4 Problem Statement: A persuasive problem statement consists of three parts: 1) the ideal, 2) the reality, and 3) the consequences for the reader of the feasibility report. Well constructed problem statements will convince your audience that the problem is real and worth which provides all solutions of financial problems. According to Islamic law interest is totally prohibited in Islam because interest has lot of bad affects on society such as their earning capacity, purchasing power and increase poverty, unequal distribution of wealth and credit crisis in 8

an economy. Islamic financial contract cash money is not given to client, first of all they purchase the commodity and transfer to client then all profit and loss will be distributed between parties according to agreed terms and conditions. It is concluded by these statements that investment in Islamic financial system is really helpful to economy due to its proper check and balance as well as it is helpful to enhance the businesses of the society.

Chapter: 022.0 Methodology:Research is to search or investigate exhaustively. It is a careful or diligent search, studious inquiry or examination especially investigation or experimentation aimed at the discovery and interpretation of facts, revision of accepted theories or laws in the light of new facts or practical application of such new or revised theories or laws, it can also be the collection of information about a particular subject. On the other hand, Sampling, a sample is a finite part of a statistical population whose properties are studied to gain information about the whole. When dealing with people, it can be defined as a set of respondents (people) selected from a larger population for the purpose of a survey. A population is a group of individuals persons, objects, or items from which samples are taken for measurement for example a population of presidents or professors, books or students.

2.1 Research design and Sampling design:The initial findings of this research are based on qualitative date derived from in-depth semi-structured interviews with Bank. The intent was to explore how Private Bank responds to the CSR agenda and to highlight current best practice. Companies with a proven track record in CSR related activities such as community initiatives, environmental management and employee related initiatives were selected from a search for award winning businesses. In this report you will find a summary of the key findings from this initial stage of the research. On this basis, 6 private commercial bank who had dedication to the issue of CSR or who were participants in the Business in the Community's Corporate Responsibility Index. Of these, 6 agreed to an interview. Shortly after these interviews took place the respondents who participated in the survey were representatives of the following companies.

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2.2 Benefits of CSR:The business case for CSR is often promoted, and it is assumed that such benefits are also felt by SMEs. The companies studied listed numerous benefits to engaging in CSR: Improved image and reputation. Improved trust and understanding. Larger, more prominent profile. Better market position. More business. Increased employee motivation. Increased attractiveness to potential recruits. Cost savings and increased efficiency. Risk management. Benefits company culture. While all the companies in this study agree that CSR is beneficial to them in many ways the business case for CSR is less clear to them. They describe the benefits as intangible or soft and seek greater proof of hard financial benefits, and answers to the difficult Questions surrounding how to measure the benefits of CSR. The companies in this study are least convinced by the benefits of charitable or philanthropic CSR.

2.3 Data collection:To complete our research plan we are considering two type of source which is helps us to Data collection or finding the proper information from both two sources we are gather a huge knowledge that helps us. Both sources are as following: Primary method: Preliminary information has been gathered through brainstorming. A conceptual or theoretical and methodological frame work has been developed for the research plan. As primary data we are surveying about two banks, the surrounding environment how much it perfect towards our research 10

plan .using questionnaire ,taking interview and select sample from them and make a qualitative analysis on them .A focus group discussion will held at the customers satisfaction and the benefits which we are trying to generated them.

Secondary sources: The secondary data has been collected from the varioussources to clarify different conceptual matters and necessary data through internet has been used in this regard. We have collected some information to analysis about research plan. The secondary sources are as following: Various books, article, competition etc. publishes in the journal and magazines.

CSR Contribution of Mercantile Bank Limited:Corporate Social Responsibility (CSR) has been described as corporate citizenship, moral and transparent business values, ecological sustainability or corporate charity. It is a business practice to deliver sustainable and ethical values to the equity holders, employees, customers, environment, society, government and other stakeholders at large. Mercantile Bank Limited (MBL) is fully committed to conduct its business activities in an economically, environmentally and socially sustainable manner. The Bank always fosters the motive in mind to build a ever-lasting warm relationship with the customers, employees, capital providers, community people, regulatory bodies and other stakeholders. Keeping this motive in mind, MBL always cares all of its stakeholders and the community people since its inception. o For Community: As we all know that banks act as a 'Trustee' for the society. Therefore, MBL behaves in a responsible and ethical manner with the community people. The Bank always contributes towards changing the quality of life of the people as the Bank wishes to see them leading their life in a standard way. The Bank serves by adhering closely the national policies and thereby contributing towards the progress of the nation. In maintaining its responsibilities to the society 11

where it operates its business activities, MBL focuses in the areas of employment, education, professional development and contribution to the underprivileged people.

1.Employment:MBL plays an important role in creating job opportunities for the people. Each year, the Bank creates employment opportunities for fresh graduates as well as experienced officials. In 2008, a total of 169 fresh graduates have joined with MBL family. The new recruits have joined as Probationary Officers (82) and Assistant Officer (87). Besides, experienced bankers are also being appointed in the Bank as and when required. At the end of 2008, the Bank has 1,115 officials in its payroll. Moreover, Bank's financing to the SME sector will indeed promotes employment generation. CSR Activities of the Bank in 2008 and one year back :( Amount in BDT) Sector Wise Spending Donation to Mercantile Bank Foundation Education Health Disaster/Relief Others Total 2008 100, 00,000 390,000 200,000 1,530,000 50,000 12,170,000 2007 40, 00,000 100,000 25,000 10,400,000 90,000 14,615,000

1. Education: MBL desires for an educated nation. The Bank through its Foundation, patronizes the education sector of the country. The Bank provides scholarship to the needy and brilliant students of different educational institutions. Best two MBM graduates of BIBM gets financial awards from the Bank. In the year under review, the Bank has provided scholarship worth BDT 1 lakh in this regard. The children of the employees of the Bank

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also get scholarship for brilliant results. MBL has also donated BDT 1.00 million to Bangla Academy for research.

2. Professional Development: Professional education has been encouraged in MBL. The Bank believes that to be more professional one should gather professional knowledge. The Bank is continuing its supports to the professional bodies as it continued earlier. The Bank encourages it employees to complete Banking Diploma by rewarding BDT 5,000 for completion of part-I and BDT 7,000 for completion of part-II. 3. Support to Destitute: MBL always shares the well and woe of the distressed people. Mercantile Bank Foundation has been set up to give financial support to the underprivileged communities. Through this Foundation, the Bank concentrates on addressing the needs of physically disable people such as blind, acid victims etc. The people of our country are used to be the victims of natural calamities every now and then. The Bank strives to assist the victims of natural disaster by providing financial help in rehabilitation and rescue purpose. In the year 2008, the Bank donated BDT15.30 lakh for helping the disaster victims.

o For Customers: MBL provides the most efficient and need-based services in every aspect of its business by being more innovative and professional. The needs and expectations of the customers drive us to the development of new banking products and services. MBL uses trained personnel and state-of-art technology for delivering prompt services to the customers. The Bank has high reputation for delivering better customer service and is also committed to uphold its image in coming days. Customer Service Excellence is an integral part of its strategy to stay ahead in an extremely competitive banking industry. To attain a continuous improvement in customer service, all branches of our Bank have established 'Customer Complain and Suggestion Box'. At branch level, officials are deployed to

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assist and interact with customers on banking queries and provide prompt solutions of the queries.

o For Employees: MBL, which has 1,115 employees provides due importance for promoting the well-being of its employees by offering attractive remuneration and other fringe benefits. Employees' remuneration and benefits packages are monitored and regularly reviewed to ensure a competitive package in the industry. Incentive bonus from yearly profit is also rewarded to the employees on performance basis. Employees are awarded all sorts of supports to pursue professional educations. The Bank provides its employees personal loan facilities such as car loan, furniture loan and other loan to make their life easier and comfortable. Growth and progression opportunities for employees are available in the Bank. With competitive remuneration packages and employees' well-being is looked after through attractive benefits such as medical coverage, loans at lower rate of interest for housing and car as well as other forms of financial assistance. MBL seeks to provide a standard quality of life to its employees. o For Equity Holders: Maximization of wealth of the equity holders gets top listed priority in the Bank. MBL is committed to its capital providers to deliver fair returns on their investment. Equity holders are always concerned to see their institution progressive. The Bank runs its business activities keeping in mind as its shareholders wish to see it. MBL is consistently delivering a superior return to its shareholders and investors. In 2008, Dividend Payout Ratio was 58.41%.The Bank has achieved BDT 34.24 as EPS and declared Stock Dividend @ 20% in the year 2008.

o For Environment: MBL is concerned with conservation and preservation of the environment. There is a rising level of awareness and demand to address the issue of sustainability of the environment because the whole world is increasingly

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experiencing the devastating effects of environmental changes for Green House affects due to Global Warming. o For Cultural Activities: MBL fosters the culture of various communities. The Bank is relentlessly supporting traditional games and sports by taking some nonprofit initiatives. As a recognized benefactor of culture, the Bank provides funding for the publication of art books that familiarize the Bank. A variety of cultural institutions have been benefited by the initiatives of the Bank. The Bank also supports the writers, musicians and other performers in their inventive activities. The Bank patronizes different cultural activities. A number of cultural programs encouraging different communities have been sponsored by the Bank. The Bank has sponsored National Chess Championship, Tennis competition and Swimming competition in different times. In 2008, the Bank was the Official Sponsor of '23rd National Swimming Championship Competition' arranged by Bangladesh Swimming Federation. BDT 1 (one) million has been donated to celebrate this ceremony.

Corporate social responsibility Of NCC Bank:The Bank recognizes its responsibility to the environs in which it works. With a view to discharging its responsibilities to the society, Bank has of late taken some steps which are as follows. o With a view to contributing for the well being of the society, the Board of Directors of the Bank approved establishment of NCC Bank Foundation. 1% of pre-tax operating profit of the Bank will be contributed to this Foundation every year. Primary works of the Foundation are already underway and it will start functioning soon. o During the last devastating floods, the Bank contributed an amount of taka forty lacks only to the Prime Ministers Relief Fund.

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o Donation to have been made to Cchayanat to help construction works of Cchayanat Bhaban. o The Bank always tries to assist the destitute of the society with necessary help with Boards approval. o The Bank organizes seminars, etc where various socio-economic issues are discussed to find future line of action.

2.4 -Data Analysis:Analysis of data is a process of inspecting, cleaning, transforming, and modeling data with the goal of highlighting useful information, suggesting conclusions, and supporting decision making. Data analysis has multiple facets and approaches, encompassing diverse techniques.

(Chi-Square)The chi-square test is used to determine whether there is a significant difference between the expected frequencies and the observed frequencies in one or more categories. Therefore, Chi-Square requires some Test Requirements: 1. Quantitative data. 2. One or more categories. 3. Independent observations. 4. Adequate sample size (at least 10). 5. Simple random sample. 6. Data in frequency form. 7. All observations must be used.

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Cross tabs01 (CSR policy VS Loss or profit)We try to analyze whether there is any Relationship Association between CSR Loss or profit affect or Not?

policy VS

Case Processing Summary Cases Valid N V13 * V25 26 Percent 100.0% N 0 Missing Percent .0% N 26 Total Percent 100.0%

V13 * V25 Cross tabulation Count V25 1 V13 2 3 L/P A Total 8 6 0 14 2 2 5 0 7 4 2 2 0 4 CSRP 0 0 1 1 Total 12 13 1 26

Chi-Square Tests

Value Pearson Chi-Square Likelihood Ratio N of Valid Cases 27.595(a) 10.052 26

df 6 6

Asymp. Sig. (2-sided) .000 .122

a 10 cells (83.3%) have expected count less than 5. The minimum expected count is .04.

Explanation:H0: there is no association exist between two variables (CSR policy VS Loss or profit) H1: there is association exist between two variables 17

Level of significance (.05 and df 6): X2 (27.595) > (12.592) [rejected] After the calculated chi-square value for the set of data we are found (27.595) which are greater than the table value (12.592), reject the null hypothesis, where the level of significance is .05 and degrees of freedom is 6. There is a significant difference between the data sets that cannot be due to chance alone. In this situation, the rejection of the null hypothesis means that the differences between the expected frequencies. Therefore, we can say that null hypothesis is rejected. So there is relationship exist between CSR policy and Loss or Profit.

Cross tabs02 (Helping advertising policy and Extra cost)We try to analyze whether there is any Relationship Association between Helping advertising policy and Extra cost or Not?

Case Processing Summary Cases Valid N V15 * V19 26 Percent 100.0% N 0 Missing Percent .0% N 26 Total Percent 100.0%

V15 * V19 Cross tabulation Count V19 0 V15 1 2 3 HAP Total Chi-Square Tests Asymp. Sig. (2sided) .000 .101 3 2 2 0 7 1 3 10 5 0 18 EC 0 0 0 1 1 Total 6 12 7 1 26

Pearson Chi-Square Likelihood Ratio N of Valid Cases

Value 28.294(a) 10.618 26

df 6 6

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a 11 cells (91.7%) have expected count less than 5. The minimum expected count is .04.

Explanation:H0: there is no association exist between two variables (Helping advertising policy and Extra cost) H1: there is association exist between two variables Level of significance (.05 and df 6): X2 (28.294) > (12.592) [rejected] After the calculated chi-square value for the set of data we are found (28.294) which are greater than the table value (12.592), reject the null hypothesis, where the level of significance is .05 and degrees of freedom is 6. There is a significant difference between the data sets that cannot be due to chance alone. In this situation, the rejection of the null hypothesis means that the differences between the expected frequencies. Therefore, we can say that null hypothesis is rejected. So there is relationship exist between helping advertising policy and extra cost.

Cross tabs03(Play vital role to develop society and result of CSR)Here, we try to analyze whether there is any Relationship Association between Play to develop society and result of CSR or Not?Case Processing Summary Cases Valid N V4 * V5 26 Percent 100.0% N 0 Missing Percent .0% N 26 Total Percent 100.0%

vital role

V4 * V5 Cross tabulation Count V5 1 V4 1 2 PVR DS Total 6 1 0 7 2 6 1 0 7 3 0 2 0 2 4 3 0 0 3 5 2 3 0 5 6 1 0 0 1 RCSR 0 0 1 1 Total 18 7 1 26

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Chi-Square Tests

Value Pearson Chi-Square Likelihood Ratio N of Valid Cases 36.966(a) 19.912 26

df 12 12

Asymp. Sig. (2-sided) .000 .069

a 21 cells (100.0%) have expected count less than 5. The minimum expected count is .04.

Explanation:H0: there is no association exist between two variables (Play vital role to develop society and result of CSR) H1: there is association exist between two variables Level of significance (.05 and df 12): X2 (36.966) > (21.026) [rejected] After the calculated chi-square value for the set of data we are found (36.966) which are greater than the table value (21.026), reject the null hypothesis, where the level of significance is .05 and degrees of freedom is 12. There is a significant difference between the data sets that cannot be due to chance alone. In this situation, the rejection of the null hypothesis means that the differences between the expected frequencies. Therefore, we can say that null hypothesis is rejected. So there is relationship exist between Play vital role to develop society and result of CSR.

Cross tabs04 (Loss or profit and Affect alternative of advertisement)We try to analyze whether there is any Relationship Association Loss alternative of advertisement or Not?Case Processing Summary Cases Valid N V13 * V26 26 Percent 100.0% N 0 Missing Percent .0% N 26 Total Percent 100.0%

or profit and Affect

V13 * V26 Cross tabulation

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Count V26 1 V13 2 3 L/P A Total 4 2 0 6 Chi-Square Tests Asymp. Sig. (2sided) .000 .048 2 8 11 0 19 AA 0 0 1 1 Total 12 13 1 26

Pearson Chi-Square Likelihood Ratio N of Valid Cases

Value 27.146(a) 9.592 26

df 4 4

a 7 cells (77.8%) have expected count less than 5. The minimum expected count is .04.

Explanation:H0: there is no association exists between two variables (Loss or profit and Affect alternative of advertisement H1: there is association exists between two variables

Level of significance (.05 and df 4): X2 (27.146) > (9.489) [rejected] After the calculated chi-square value for the set of data we are found (27.146) which are greater than the table value (9.489), reject the null hypothesis, where the level of significance is .05 and degrees of freedom is 4. There is a significant difference between the data sets that cannot be due to chance alone. In this situation, the rejection of the null hypothesis means that the differences between the expected frequencies. Therefore, we can say that null hypothesis is rejected. So there is relationship exist Loss or profit and Affect alternative of advertisement.

Cross tabs-05(Play vital role to develop society and highly maintain CSR)

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We try to analyze whether there is any Relationship Association Play

vital role to develop

society and highly maintain CSR or not?Case Processing Summary Cases Valid N V4 * V28 26 Percent 100.0% N 0 Missing Percent .0% N 26 Total Percent 100.0%

V4 * V28 Cross tabulation Count V28 1 V4 1 2 PVRDS Total 5 4 0 9 2 10 3 0 13 3 3 0 0 3 HMCSR 0 0 1 1 Total 18 7 1 26

Chi-Square Tests Asymp. Sig. (2sided) .000 .069

Pearson Chi-Square Likelihood Ratio N of Valid Cases

Value 28.631(a) 11.714 26

df 6 6

a 10 cells (83.3%) have expected count less than 5. The minimum expected count is .04.

Explanation:H0: there is no association exists between two variables (Play vital role to develop society and highly maintain CSR H1: there is association exists between two variables Level of significance (.05 and df 6): X2 (28.631) > (12.592) [rejected] After the calculated chi-square value for the set of data we are found (28.631) which are greater than the table value (12.592), reject the null hypothesis, where the level of significance is .05 and degrees of freedom is 6. There is a significant difference between the data sets that cannot be due to chance alone. In this situation, the rejection of the null hypothesis means that the differences between the expected frequencies. Therefore, we can say that null hypothesis is rejected. So there is relationship exist Play vital role to develop society and Highly maintain CSR 22

Cross tabs06(Competitors influence and alternative of advertisement)We try to analyze whether there is any Relationship Association Competitors

influence and

alternative of advertisement or not?Case Processing Summary Cases Valid N V22 * V26 26 Percent 100.0% N 0 Missing Percent .0% N 26 Total Percent 100.0%

V22 * V26 Cross tabulation Count V26 1 V22 2 3 CI Total 2 4 0 6 2 7 12 0 19 AA 0 0 1 1 Total 9 16 1 26

Chi-Square Tests Asymp. Sig. (2sided) 4 4 .000 .075

Value Pearson Chi-Square Likelihood Ratio N of Valid Cases 26.025(a) 8.502 26

df

a 7 cells (77.8%) have expected count less than 5. The minimum expected count is .04.

Explanation:H0: there is no association exists between two variables (Competitors influence and alternative of advertisement) H1: there is association exists between two variables Level of significance (.05 and df 4): X2 (26.025) > (9.489) [rejected]

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After the calculated chi-square value for the set of data we are found (26.025) which are greater than the table value (9.489), reject the null hypothesis, where the level of significance is .05 and degrees of freedom is 4. There is a significant difference between the data sets that cannot be due to chance alone. In this situation, the rejection of the null hypothesis means that the differences between the expected frequencies. Moreover, we can say that null hypothesis is rejected. So there is relationship Competitors influence and alternative of advertisement

2.5 LimitationAccording to the proposed planned of six interviews it is possible that there might be doing the task. But, some hurdles to get all information from customers of Mercantile Bank and NCC Bank. According to our thinking it is possible that the method of questionnaires can be applied in both methodologies. The success rate of the project will be examined based on the existing theory of Mercantile Bank and NCC Bank and assumptions made during the research. The primary data will be analyzed on the base of actual ambition of the Mercantile Bank and NCC Bank and its implementation. Some limitations are as follows: Access to information. Access to resources. Time management. Access to experts for editing, proofreading, and guidance. Support from organizations and participants.

Bar Chart: Here we show the graphical presentation of CSR Distribution of NCCbank and Mercantile bank. 24

Csr analysis 4500000 4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0n ca d ea l is as te r/ R el ie ti on at io th f

Mercantile Ncc

value

un

o

F

E

du

sector

H

Comment: Here we can see that in Foundation both NCC and mercantile Bankcontribute same type of amount In Education NCC Bank contribute little higher than the mercantile bank ,But in the sector Disaster and Relief NCC bank contribute a huge amount of money which is 60% higher than the mercantile bank.

Pie Chart: Contribution of CSR portion In Mercantile BankMercantile

32% 49%

Foundation Education Health Disaster/Relief

13% 6%

Comment:

Here the above graph we can see that mercantile bank Use the maximum portion of their CSR In Disaster/ Relief side which is 49% of total CSR. Here we draw a line chart of a Mercantile bank that represents the value of CSR contribution. It focuses highly on Disaster & Foundation sector. 25

D

1 00 80 00 1 00 60 00 1 00 40 00 1 00 20 00 1 00 00 00

Value Mercantile

80 00 00 60 00 00 40 00 00 20 00 00 0 F nd ou ation E ca n du tio H lth ea D ste elie isa r/R f

V 1

Here we draw a line chart of a NCC bank that represents the value of CSR contribution. It focuses highly on Disaster & Foundation sector.

5000000

4000000

3000000

2000000

Value NCC

1000000

0 Foundation E ducation H ealth D isaster/R elief

V1

Chapter: 0326

3.0 Findings Corporate Social Responsibility has been increasingly becoming a part of the business practice. It has generally been considered as a pragmatic response to consumer and civil society pressures. To a great extent Corporate Responsibility supports the Small and Medium Enterprise Development in developing countries and is considered crucial to meeting its goal of improving the impact of business on societies. It is thought that corporate standard would be enhanced if corporate responsibility is under pinned by an infallible business case that links social and environmental responsibility with financial success. Supporting enterprise development through long-term trading relationships and community investment is considered as one of the most practical ways by which the corporate can help the poverty stricken countries such as Bangladesh in fighting poverty. Corporate Responsibility Practices in the Multinational Enterprises (MNEs) are better vis--vis the local companies. Corporate Responsibility Practices in large companies are better than smaller companies. There are sect oral variations in Corporate Responsibility Practices. CSR in banking sector creates a value for the company e.g customers, employees, shareholders, community etc. It also increases the image of the Bank to grow fast in the developing countries.

3.1Conclusion27

As a third world country Bangladesh has lot of problems. Especially in the banking sector, it is very important to donate some portion of the profit to the society. Recently, some of the private bank are started to give CSR to weigh their image. Moreover, we worked in our assignment of the Mercantile bank and NCC bank that are very much vulnerable to give CSR from their total profit. Government often fined them helpless when it comes to solving of these problems. As business owners of this country are considered as a part of the affluent section of the society they can contribute more meaningfully towards of the betterment of the society. If more company came forward to contribute to the society like DBBL, it will help to create their social branding as well as helping the society. So it can be said that, Corporate Social Responsibility (CSR) means that companies integrate social and environmental concerns in their business operations and in their interaction with business relevant groups on a voluntary basis.

3.2 Recommendation28

Bank now performs their social responsibility in some selected sector. The bank donates mainly towards social awareness programs, medical and educational fields. Bank also maintains the largest scholarship program in Bangladesh whereby college/university education tuition and expenses are fully paid for unconditionally by the bank. But they can expand their business and broaden their sector of social responsibility by the following terms: Primary school sector: primary school sector is very backward in our country. MBL can nourish their social responsibility in this root sector. They can offer scholarship or patronize this sector and thus country can benefited as well as take a role of social responsibility by this sector. SME Sector: SME is also a root sector where this bank can apply credit formula or patronizing this sector. Thus it can probably expand its social image. Micro credit sector: Micro credit is very popular among root people in our country. The main advantage of micro credit is that a person can take loan without any security. If Bank starts to give micro credit than it will help the people a lot. On the other hand it will increase the social image of Banking Sector. . They also can supply credit at a low interest rate that can improve this sector according to its social responsibility. The government should take a more active part in enforcing CSR. They should make laws and also give incentives to businesses to participate in CSR. There should be some kind of a regulatory authority to oversee CSR activities and especially control NGOs. Businesses should not only consider the benefits brought to them by CSR but they should also get involved for the good of the society. Consumers can wield their power and force businesses to be more socially responsible. Consumers can prove to be most effective tool in promoting CSR. Employee rights also form a part of CSR. According to our research, in Pakistan no company deals with employee rights under the head of CSR. Employee rights can receive more attention if they become a part of CSR. Employers must come out with fair and just rules for their employees.

Reference29

Book Business Research Methods William G. Zikmund( 7th edition) Table 3 Chi square Distribution ( Page-716)

Person Sheikh Mohammad Sayem (Course Teacher) Sarief Ahmed HR manager Mercentile Bank Mizan Khan-- HR manager NCC Bank

Web Address http://www.enviroliteracy.org/pdf/materials/1210.pdf http://www.mblbd.com/html/csr.php www.nccbank.com.bd http://en.wikipedia.org/wiki/Chi-square_distribution http://math.hws.edu/javamath/ryan/ChiSquare.html

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Chapter: 04Appendix Questionnaire01Q. Does your company maintain CSR? Yes No 02Q. CSR can play vital role to develop society. Agree Disagree Partly disagree Partly agree 03Q. what do you think about corporate social responsibility (CSR) for developing an organization performance? Comment: Through CSR a company image can be highlighted and thus business will develop. 04Q. How can companies foster strong relationships with the local community? Comment: By providing best service. 05Q. How can companies demonstrate their commitment to the environment? Comment: Through different projects (Environmental) 06Q. Does their (company) product environmental friendly? Comment: N/A for Banks 07Q. How can companies measure the effectiveness of the corporate social responsibility? Comment: Through market research 08Q. Is corporate social responsibility involves the whole business process or simply focusing on corporate philanthropy or charity? Yes No

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9Q. Company highly maintains CSR. Strongly disagree disagree Neutral Agree Strongly agree

10Q. In what segment of the society you give most priority? Environment Children Education Poverty Others 11Q.Does your organizations have any fund for helping interest parties in terms of huge lose? Yes No

12Q. Does the bank report any community patronage/sponsorship programs? Comment: 13Q. Does the organization maintain close understanding of and involvement with appropriate stakeholders? Yes No

14Q. What types your cost of CSR? Fixed Variable Mixed 15Q. Does loss or profit affect your CSR program? Fully Partly Affect Dont affect 16Q. Does it create any value for your company? 32

Yes No 17Q. Do you think CSR helps in advertisement policy? Yes, help Yes, strongly help Not help

18Q. Do you get any facility from government for contributing in CSR? Yes No 19Q. If gets what types of facility? Monetary Non-monetary Legal Others 20Q. Who make manage your CSR policy? CEO MD HM Others 21Q. Do you think it creates extra cost or value? Yes, it create No, it does not create 22Q. What types of activities you take as CSR program? Comment; 23Q. What are the initiatives taken for CSR? Comment: 24Q. Do you consider the long term possible effect of you medicine on human body and environment? Yes No

25Q. Would you like to tell me about your last CSR program? Comment; 26Q. How much you spend for CSR in last year? 33

Below TK. 500000 Below TK. 1000000 Above TK. 1500000

27Q. Does your CSR program is influenced by competitors? Fully influenced Partly influenced Do not influence

28Q. What portion of your profit you provide for CSR program? 5% 10% 15% 20% Others % 29Q. Do you think it is responsible for high production cost? It affects It does not affect Partly affects 30Q. Where your target area for CSR? Rural area Urban area Mixed area Only capital 31Q. CSR makes close a business organization and society? Yes, make close Does not make close 32Q. Your CSR policy is based on Society needs Organizational wish Individual needs Mixed 33Q. Now-a-days CSR is taken as alternative of advertisement. Do you support this statement? Disagree Agree Partly disagree 34

Partly agree

34Q. How they measuring and reporting their CSR activities? Comment: 35Q. Are they contributing in to the improvement of social minority group? Comment: 36Q Is corporate social responsibility should be popularized or imposed? Comment: 37Q. What your current CSR investment? Comment: 38Q. What is your upcoming CSR program? Comment: 39Q. What is your future plan about CSR program? Comment:

Question CodingQuestion 1. Do you think CSR is essential for a bank? 2.Does your company maintain CSR? 3.CSR can play vital role to develop society 4.What do you think about corporate social responsibility (CSR) for developing an organization performance? 5.How can banks foster strong relationships with the local community? 6.How can bank demonstrate their commitment to the environment? 7.Does their (company) product environmental friendly? 8.How can companies measure the effectiveness of the corporate social responsibility? 9.Is corporate social responsibility involves the whole business process or simply Code Name DYT CSR ESS. DUCM CSR CSR CPVR DS CSR IS ESS ORG.P HCBSR WLC HCBD CE DP EF HCC MTE CSR IS CSR IWBP

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focusing on corporate philanthropy or charity? 10.Company highly maintains CSR. 11.In what segment of the society you give most priority? 12.Does your organization have any fund for helping interest parties in terms of huge lose? 13.Does the bank report any community patronage/sponsorship programs? 14.Does the organization maintain close understanding of and involvement with appropriate stakeholders? 15.What types your cost of CSR? 16.Do you get any facility from government for contributing in CSR? 17.Does it create any value for your company? 18.1Do you think CSR helps in advertisement policy? 19.Does loss or profit affect your CSR program? 20.If gets what types of facility? 21.Who make manage your CSR policy? 22.What types of activities you take as CSR program? 23.Do you think it creates extra cost or value? 24.What are the initiatives taken for CSR? 26.Would you like to tell me about your last CSR program? 27.How much you spend for CSR in last year? 28.Does your CSR program is influenced by competitors? 29.Where your target area for CSR? 30.Do you think it is responsible for high production cost? 31.CSR makes close a business organization and society? Your CSR policy is based on32.Now-a-days CSR is taken as alternative of advertisement. Do you support this statement? 33.How they measuring and reporting their CSR activities?

CM CSR WHI SOS GMP DUO HAF 4HIP 2 HL DB CSP DOM UI AS COST OF CSR DUG AF FG DIC AV4C DUT CSR HA D LPA CSR IG WTOF WM CSR PO WT A YT CSR DU T CXC WR I4 CSR WUL TT A CSR P HMYS 4 CSR DY CSR PI BC WY TA 4CSR DUT IT R 4 HPC CSR B ORG & SO. CSR B ON NAD CSR I A4AD HTM R CSR AC 36

34.Are they contributing in to the improvement of social minority group? 35.Is corporate social responsibility should be popularized or imposed? 36.What your current CSR investment? 37. What is your upcoming CSR program?

RT C I SO M G IS CSR S PO OR IM WT U C CSR I WT I U UC CSR

Answer CodingYes No 11 12 5 4 3 2 1 21 22 23 31 32 33 41 42 43 51 52 53 54 55 56 57 61 62 63 64 71 72 73 81 82 83 37

Strongly Agree agree Neutral Disagree Strongly disagree Fixed Variable Mixed Fully Partly Affect Dont affect Yes, help Yes, strongly help Not help Monetary Non-monetary Legal Environment Children Education Poverty CEO MD HRM Others Fully influenced Partly influenced Do not influence Rural area Urban area Mixed area

Only capital Society needs Organizational wish Individual needs Mixed Popularized

84 91 92 93 94 95

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