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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

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