BB to monitor adoption of CSR by banks
FE Report | Tuesday, 3 June 2008
The Bangladesh Bank (BB) will monitor the adoption of Corporate Social Responsibility (CSR) by banks and financial institutions and their performance.
The adoption of CSR and performance of the corporate entities will be treated as an additional indicator of their management efficiency, officials said.
"While adoption is voluntary and not mandatory, the BB shall monitor CSR adoption and CSR performance of banks and financial institutions, as an additional dimension of their management performance," the central bank said in a circular, issued Monday.
"We want that the banks and non-banking financial institutions (NBFIs) will move forward to implementing CSR programmes in line with the international standard," a BB senior official told the FE.
The central bank took the move to create awareness among the banks and NBFIs about the CSR, he added.
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 global reporting initiative (GRI) format.
"Like the statutory financial reports, the CSR reports are expected to be available in the public domain for perusal by stakeholders," the circular added.
The sustainability reporting guidelines developed by the GRI, a major international effort, provides a general framework for reporting by corporate entities in all economic sectors.
The central bank, however, advised the banks and NBFIs to take action plans like ingraining environmentally and socially responsible practices within the organisation initially.
Foreign banks in Bangladesh having structured CRS programmes can come forward to usefully guide the new, incipient CSR initiatives of local banks, according to the circular titled 'Mainstreaming CSR in banks and financial institution in Bangladesh'.
"Networking and joint initiatives in CSR programmes among banks and financial institutions may be useful in some cases in devising more inclusive, comprehensive programmes of necessary critical size," the central bank observed.
The banks and NBFIs are also well positioned to promote CSR in their client business in various economic sectors, engaging with them in assessing the social and environmental impacts of the enterprises or projects seeking finance, it noted.
Currently, some commercial banks are implementing programmes as part of their corporate responsibility.
It is being widely recognised by the corporate sector that augmented CSR designed to respond to huge unmet needs of the society can be one of the important means in the achievement of long term and persistent business value.
The adoption of CSR and performance of the corporate entities will be treated as an additional indicator of their management efficiency, officials said.
"While adoption is voluntary and not mandatory, the BB shall monitor CSR adoption and CSR performance of banks and financial institutions, as an additional dimension of their management performance," the central bank said in a circular, issued Monday.
"We want that the banks and non-banking financial institutions (NBFIs) will move forward to implementing CSR programmes in line with the international standard," a BB senior official told the FE.
The central bank took the move to create awareness among the banks and NBFIs about the CSR, he added.
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 global reporting initiative (GRI) format.
"Like the statutory financial reports, the CSR reports are expected to be available in the public domain for perusal by stakeholders," the circular added.
The sustainability reporting guidelines developed by the GRI, a major international effort, provides a general framework for reporting by corporate entities in all economic sectors.
The central bank, however, advised the banks and NBFIs to take action plans like ingraining environmentally and socially responsible practices within the organisation initially.
Foreign banks in Bangladesh having structured CRS programmes can come forward to usefully guide the new, incipient CSR initiatives of local banks, according to the circular titled 'Mainstreaming CSR in banks and financial institution in Bangladesh'.
"Networking and joint initiatives in CSR programmes among banks and financial institutions may be useful in some cases in devising more inclusive, comprehensive programmes of necessary critical size," the central bank observed.
The banks and NBFIs are also well positioned to promote CSR in their client business in various economic sectors, engaging with them in assessing the social and environmental impacts of the enterprises or projects seeking finance, it noted.
Currently, some commercial banks are implementing programmes as part of their corporate responsibility.
It is being widely recognised by the corporate sector that augmented CSR designed to respond to huge unmet needs of the society can be one of the important means in the achievement of long term and persistent business value.