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CORPORATESOCIALRESPONSIBILITY
A case study on
BRACBankLtd.
VICTORIA UNIVERSITY OF
BANGLADESH
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Fall- 2010
Assignment No 1TITLE: Social Responsibility: A Case Study onBRAC BANK
PREPARED BY
y Md. Rashedul Hasan
yID: 110917371
y Md. Arfan Hosen
y ID: 110917181
y Md. Rashed Hossain
y ID: 110917401
y
Md. Sohel Rana
y ID: 110917301
y Md. Rashedul Hasan
y ID: 110917211
SUBMITTED TO-Mohammad Fazlul KarimCourse Instructor
Department of Business AdministrationVICTORIA University OF BANGLADESH
Date: 15-01-2011
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Letters of Transmittal
15-01-2011
Mohammad Fazlul Karim
Dept. of Business Administration
Victoria University of Bangladesh
Panthapath, Dhaka-1215
Subject: Submission of Recruitment and selection process of BRAC.
Dear Sir,
We are pleased to submit our Term Paper on Recruitment and Selection Process
of BRAC. This term paper is a part of the course requirement to complete our
BBAprogram.
We have prepared the term paper by using both primary data from conducting asurvey and secondary data from the internet and personnel in BRAC organization.
We are submitting the term paper and we will be grateful if you kindly accept it.
Sincerely
Md. Rashedul Hasan ID: 110917371
Md. Arfan Hosen ID: 110917181
Md. Rashed Hossain ID: 110917401
Md. Sohel Rana ID: 110917301
Md. Rashedul Hasan ID: 110917211
Batch: 17th
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Acknowledgement
For collecting the information about our study objective and preparing our report
properly, we are grateful to our course instructor Mohammad Fazlul Karim
being authorized of this report; she helped us a lot throughout the time of work by
giving her tender hand time to time.
We are also thankful to those personnel of BRAC. Who have helped us a lot by
giving information about the organization.
At last we want to thanks again our course instructor Mohammad Fazlul Karim
to give us such opportunity to do such report that will help us to improve our
analytical and communication skills.
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Table of Content
Title:yExecutive Summary page no: 6
yIntroduction page on: 7-8
Social responsibility
Ethics
yMethodology page on: 8
Book
Website
yLiterature Review page on: 8-10
Social responsibility
Areas of social responsibility
Business ethics
yFindings page on:10-23
A brief profile of companySocial responsibility discharged by the companyApproach of social responsibility
yConclusion and Recommendation page on: 24
yReference page on: 25
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Executive Summary
It is a unique opportunity to make an assignment on Social Responsibility: A Case
Study on BRAC Bank Limited. BRAC works with people whose lives are
dominated by extreme. Poverty, illiteracy, disease and other handicaps.
BRAC Bank Limited has established with the spirit and ideas of BRAC to make
profit and social responsibility go hand in hand as it strives towards poverty free
enlightened Bangladesh.
In preparation of making this assignment, we have gathered information from the
various reports, books and in-depth memory about the BRAC Bank and its
programs on social responsibility.
In findings, BRAC bank is to building a profitable and socially responsible
financial institution focused on marketing and business with growth potential,
Thereby assisting BRAC and stakeholders build a just enlightened, healthy, and
democratic and poverty free Bangladesh.
BRAC Bank is maintaining the best practices of corporate governance and the
highest ethical standards with the formulation of the Banks policies and
procedures.
Overall activities of the business are conducting responsibly and with focus on
long-term value.
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INTRODUCTION
Social Responsibility:
Business firms conduct activities to produce goods and services and to generate
profit. These activities greatly affect our society to develop awareness. Social
responsibility is the deliberate effort of a firm to increase its positive impact on
society while reducing its negative impact. The awareness is that business
activities have an impact on society and the consideration of that impact by firmsin decision making. Business activities have an impact on consumers, employees,
the environment, and those investing in the firms. Socially responsible looks more
closely at each of these concerns.
Ethics:
The business ethics is not so much to teach the difference between right
and wrong as to give people the tools for dealing with moral complexity,
tools that they can use to identify and think through the moral implications
of decisions Ethics are principals of behavior that distinguish between right
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And wrong. Business ethics is the evaluation of business activities and
behavior as right or wrong. A code of ethics is a statement spelling out
exactly what an organization considers ethical behavior.
METHODOLOGY:1. BOOK
BUSINESS for the 21st century
WRITTER- SKINNER
IVANCEVICH
2. WEBSITE
www.bracbank .com
LITERATURE REVIEW
Social Responsibility:
Social responsibility is the deliberate effort of a firm to increase its positive impact
on society while reducing its negative impact. In light of many publicized instance
of corruption and illegal behavior, the public, special interest groups, and
consumers are making increasing demands that business firms demonstrate social
Responsibility. Business activities have an impact on consumers, employees, the
environment, and those investing in the firms. Socially responsible looks more
closely at each of these concerns.
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The awareness is that business activities have an impact on society and the
consideration of that impact by firms in decision making. [SKINNER, 1992]
AREAS of SOCIAL RESPONSIBILITY
STAKEHOLDERS
1. Consumers
2. Employees
3. Investors
THE NATURAL ENVIRONMENT
1. Environmentally sensitive products
2. Recycling
3. Public safety
THE GENERAL SOCIAL WELFARE1. Charitable contributions support for issues such as child labor and human
rights
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Business Ethics:
The business ethics is not so much to teach the difference between right and wrong
as to give people the tools for dealing with moral complexity, tools that they can
use to identify and think through the moral implications of decisions. Ethical
conduct conforms to what a group or society as a whole considers right behavior.
People working in business frequently face ethical questions. Business ethics is the
evaluation of business activities and behavior as right or wrong. Ethical standards
in business are based on commonly accepted principals of behavior established by
the expectation of society, the firm, the industry, and an individuals personal
values. Ethics are principals of behavior that distinguish between right and wrong.
[SKINNER, 1992]
FINDINGS
A Brief Profile of Company
NAME: BRAC BANK Ltd.
LOCATION: DHAKA, GULSHAN-1
BRAC means Bangladesh Rural Advancement Committee. BRAC, a national,
organization, started as an almost entirely donor funded, small-scale relief and
rehabilitation project initiated by Mr. Fazle Rahman Abed to help the country
overcome the devastation and trauma of the liberation war and focused on
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Resettling from India. Today, BRAC has emerged as an independent virtually self
financed paradigm in sustainable human development.
BRAC is one of the largest Southern development organizations employing
97,192 people, 61% women, and working with the twin objectives of poverty
alleviation and empowerment of the poor.
The financial system of a country plays a crucial role to accurate the process of
economic growth .With a view to exercising social control over the part of
resources of the country, BRAC management intended to establish a financial
institution in the name and style of BRAC Bank Ltd. in the year of1999 with the
authorized capital of Tk.200 crore.
BRAC Bank Limited, with institutional shareholdings by BRAC, International
Finance Corporation (IFC) and Shore cap International, has been the fastest
growing Bank. The Bank operates under a double bottom line agenda where
profit and social responsibility go hand to hand as its strives towards a poverty free
enlighten Bangladesh.
A fully operational Commercial Bank, BRAC Bank focuses on pursuing
unexplored market niches in the Small and Medium Enterprise Business, which
hitherto has remained largely untapped within the country. In the last 5 years
operation, the bank has disbursed over BDT 1500 corer in loans to nearly 50,000
small and medium entrepreneurs. The management of the Bank believes that this
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Sector of the economy can contribute the most to the rapid generation of
employment in Bangladesh. Since inception in July 2001, the Banks footprint has
grown to 22 branches, 350 SME unit officers and 19 ATM sites across the country,
And the customer base has expanded to 2, 00,000-deposit advance accounts
through 2006. In the years, ahead BRAC Bank expects to introduce many more
services products as well as add a wider network of SME unit offices, Retail
Branches and ATMs across the country.
VISSION of BRAC BANK:
BRAC management started their banking operation on July 04, 2001 with missionof building a profitable and socially responsible financial institution focused on
marketing and business with growth potential, thereby assisting BRAC and
stakeholders build a just enlighten, healthy, democratic and poverty free
Bangladesh.
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MISSION of BRAC BANK:
BRAC Bank also selected their vision in the focusing manner:
ySustain growth in Small & Medium Enterprise sector
yContinuous low-cost deposit growth with controlled growth in retail assets
yCorporate assets to be funded through self-liability mobilization. Growth in
assets
through syndication and investment in faster growing sectors
yContinuous endeavor to increase fee based income
yKeep the debt charges at 2% to maintain a steady profitable growth
y Achieve efficient synergies between the banks branches. SME unit
offices and BRAC field offices for delivery of remittance and banks other
products & services.
yManage various lives of business in a fully controlled environment with no
compromise on service quality.
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CORPORATE VALUES:
#Our Strength emanates from our owner - BRAC. This means, we will hold the
following values and will be guided by them as we do our jobs.
# Value the fact that we are a member of the BRAC family
# creating an honest, open and enabling environment
#Have a strong customer focus and build relationships based on integrity, superior
service and mutual benefit
# Strive for profit & sound growth
# Work as a team to serve the best interest of our owners
#Relentless in pursuit of business innovation and improvement
# Value and respect people and make decisions based on merit
#Base recognition and reward on performance.
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ACHIEVEMENT of BRAC BANK:
BRAC Bank has been rated as one of the most successful and sustainable SME
Banks in the world. BRAC Bank has been recognized for ICMAB Best
Corporate Award, 2007. This award is for the category of Financial Institutions.
The criteria to select best financial institutions were as follows:
yCapital Adequacy
yAsset Quality
yProfitability
yLiquidity
yCorporate Governance
yMarket Share
yContribution to national economy
yRisk Management
yRegularity Compliance
yDisclosure
yCSR
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Social Responsibility discharged by the BRAC Bank
BRAC Bank is a social responsible organization with an obligation to consider the
interests of customers, employees, shareholders, communities and ecological
considerations in all aspects of its operations.
yIn line with vision ofBRAC Bank, CSR isclosely linked with the
yPrinciples of sustainable development, which argues that it should make
decisions based not only on financial factors such as profits or dividends,
but also based on the
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Immediate and long-term social and environmental consequences of its
activities.
yAs a part of its Corporate Social Responsibility BRAC Bank donated USD
38,252 to
ICDDR, B for the renovation of a temporary shed that was thronged with
diarrhoea
Patients soon after the recession of flood water of last year. A Co- Branded
Credit Card
was also introduced to maintain an ongoing support for ICDDR, B.
yA donation of Tk.1million was made to an art exhibition of Shako- a 12
women artist
Organization. The total money collected by selling the paintings wasdonated to Apon
Drug Rehabilitation Center.
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yBRAC Bank employees have made a contribution o Tk. 1.35 million
equivalent to their one-days salary to BRAC for its countrywide flood relief
and revalidation activities in August 2007.
yBuilding on its track record of creative initiatives in the field of
development, BRAC established BRAC University in 2001 with the goal of
providing high quality broad-based education for students the next
generation of young leaders and equipping them with the skills and
knowledge necessary for taking on the challenges of development. In 2004,
BRAC launched the James P. Grant School of Public Health to provide
public health education of international excellence relevant to the particular
needs of the developing world. The mission of the School is to improve
health outcomes of populations in disadvantaged areas of the world,
particularly the poor and women, through the application of the art and
science of public health.
yBRAC Bank took an initiative to stand by the SIDR affected people of
Barisal and
Khulna with relief. A number of employees distributed dry food, water,
medicine, clothes
Etc. among the SME borrowers.
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yBRAC Bank has sponsored the 2nd National Women Entrepreneur
Conference 2008,
Where women entrepreneurs from all over Bangladesh have participated to
attend in the
Workshops and knowledge sharing activities undertaken by SME
Foundation of
Bangladesh.
yTo encourage and create awareness on SME development of
Bangladesh, BRAC Bank sponsored AMDIB Forum organized by institute
of Business Administration (IBA), this forum has helped participants to
share views, get key insight and discussed about the ways to alleviate
problems faced by SME entrepreneurs, while seeking financial support.
yTo assist Bangla Academy with their publication and research and
development
Initiatives, BRC Bank has lent their support to carry forward their projects.
Also BRAC
Bank has supported in stall preparation and beautification of Amor
Ekushey Boi Mela
2008, this initiatives was taken to make the fair enjoyable for participants as
well as the
Visitors.
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yBRAC Bank has also supported annual fund raising program of SAARC
Womens
Association Dhaka to support and assist Islamia Eye Hospital and Dhaka
Shishu Hospital for operation and treatment.
yTo support the humanitarian endeavors of Rotary International like, polio
plus program,cancer detection unit, drug abuse and HIV/AIDS advocacy,
BRAC Bank has sponsored a conference organization by Rotary
International.
ySix new immigration counter of Zia International Airport is established foroutgoing
passengers by BRAC Bank with proper branding and computer assistance
to mitigate the time constraint and pressure of increasing number of
passengers. A Probasi information counter has been installed for the wage
earners who can gather information about sending foreign remittance to
Bangladesh.
yTo conserve nature and alleviate the illegal slay of immigrant birds, BRAC
Bank has
sponsored Pakhi Mela 2008 organized by Jahangir agar University.
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y As a part of its corporate policy, BRAC Bank does not provide any
financial support to
any environmentally hazardous or child labor exploited company.
Approach of Social Responsibility :
In the corporate sector in our country CSR, activities are increasing as well as
being recognized by the corporate body. Corporate Social Responsibility (CSR)
can be a key different elements and means for achieving greater business value in
this competitive world. Customers and public are very much aware of the CSR and
demanding greater social accountability these days. Bank is always aware to
ensure compliances and attaining greater social goals through good governance.Bank is already laid an emphasis on its commitment to the society.
ORGANIZATION VIEWS ITSELF AS A CITIZEN AND PROACTIVELY
SEEKS
OPPORTUNITIES TO CONTRIBUTE TO SOCITY is called proactive stance
This approach of social responsibility BRAC BANK is following.
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The Task of Ethics:
The task of business ethics, therefore, is to make two central points 1) that
business decisions do have an ethical component and 2) that manager must weigh
the ethical implications of strategic decisions before choosing a course of action.
Most business leaders realize their firms cannot succeed without the trust of
customers and the good will of society. A violation of ethics makes trust and
Goodwill difficult to maintain. The purpose of business ethics is not so much to
teach the difference between right and wrong as to give people the looks for
dealing with moral complexity, tools that they can use to identify and think
through the moral implications of decisions.
Most of us already have a good scene of what is right and wrong. We already know
that it is wrong to lie, cheat and steal. We know it is wrong to take actions that put
the lives of others at risk. Such moral values are instilled in us at an early age
through formal and informal socialization. The problem, however, is that although
most of managers rigorously adhere to such moral principles in their private life,
some fail to apply them
in their professional life, occasionally with disastrous consequences.
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The task of business ethics, therefore, is to make two central points:
yThat business decisions do have an ethical components and
yThat manages must weigh the ethical implications of their
decisions.
BRAC Bank establish an organizational climate that emphasizes the
importance of ethics by maintaining three steps:
yManagers use their leadership position to incorporate an
ethical dimension into the values they stress.
yEthical values are being incorporated into the Banks mission
statement
yEthical values are acted on. Top managers are to implement
hiring, firing and incentive system that explicitly recognize the importance of
adhering to ethic values in decision making.
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Conclusion and Recommendation:
BRAC, a national, private organization, started as an almost entirely donor funded,
small-scale relief and rehabilitation project created for the benefit of resettling
refugees returning from India after the liberation war. With a view to bring positive
change in the quality of life of the people of Bangladesh and building a profitable
and socially responsible financial institution focused on marketing and business
with growth potentials. BRAC Bank has started its journey since 1999 and started
its operation since 2001. The corporate social responsibility center, an innovative
new establishment in Bangladesh to promote corporate social responsibility defines
it as a set of business practices based on ethical norms and transparency that
contributes to the sustainable development of internal and external stakeholders in
the best interest of business society and environment. IN order to reach the
ambitious goals and objects, BRAC Bank is to consider the interests of customers,
employees, stakeholders, communities and ecological considerations extend
beyond its statutory obligation to comply with legislation. In line with vision with
BRAC Bank, CSR is closely linked with the principals of sustainable development
, which argues that it should make decision based not only on financial factors suchas profits or dividends, but also based on the immediate and long-term social and
environmental consequences of its activities.
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REFERENCE
1. Skinner, S., Ivancevich, J. (1992).Business for the 21st century.
2. BRAC BANK Ltd. (1999).Social Responsibility & Ethics: A CaseStudy On BRAC BANK Ltd., from
http://www.bracbank.com