Bringing CSR under a policy framework

Contribution of businesses to good causes in society has taken various forms at different times.  Since time immemorial, renowned business houses had been extending their cooperation to their respective communities in this sub-continent. With the expansion of market, the business community came forward with firm commitments and immense contributions. Since the contribution was mostly in the form of donation and came from family-run businesses, its purpose was solely guided by the will of the contributors. Need assessment of the recipients never got prominence.  
Over decades, national development witnessed new dimensions in business-community relationship. Forms of social contribution by businesses have become more organised under modern mechanism. Now-a-days, the corporate world faces a stiff competition in market economy where quality of product is not enough and market promotion is equally essential.
Interestingly, in some cases, the corporate world has become more concerned with market promotion than the basic aspect of product like quality, which is associated with ethics of business. Despite enormous challenges in the open market economy, a large number of multinational and national corporate entities have over the years proved themselves as committed practitioners of corporate social responsibility (CSR).
Despite paradigm shift in approach towards social welfare, the corporate units still control selection of sectors and modes of funding. Should they work on their own? The corporate units are not alone. If so, then who will be potential partners or who will facilitate corporate involvement in social development? The process inevitably demands formulation of a national policy framework under which partnership among corporate units (as funding sources), recipient sector (individual/institutions/community) and public agencies (as regulatory authority) can work together. Policy formulation needing appraisal (prioritising arenas for contribution) and supervision of funds are the prime responsibilities of the public sector while response to the call from the government is a corporate choice. CSR for development (basic societal needs) should be promoted on the spirit of obligation while governance (responsibility to the primary stakeholders) and environmental responsibility of business must be governed under a legal framework.     
CSR is not a market promotion tool nor can it be the means for quick return from investment. CSR is by no means a business product. Then what and how will corporate entities gain from integrating CSR in their policy instruments? Corporate units must have returns from mainstreaming CSR into business management in different forms and ways.  
Corporate funding for basic societal needs never sounds good. Role of the corporate world should not be confined into funding alone nor should corporate entities pursue a stand-alone process for CSR initiative. Channelling corporate contribution to social development badly necessitates immediate formulation of a policy framework with formation of an independent CSR Council under the Ministry of Commerce. CSR is a wider concept where corporate units and the entities beyond them must work together and go for interaction on issue-based agenda.
 In Bangladesh, corporate contribution to social development is not guided under a policy framework. Its absence has kept both corporate entities and possible beneficiaries in the dark. Corporate entities become confused and indecisive about social investment out of concern like misuse of funds. Even investment in wrong direction may harm a good intention. Hence, proposed National CSR Council (NCSRC) can be tasked with policy formulation. It will encourage corporate units to be acquainted with CSR concepts, sustainable funding mechanism, areas of development priorities, possible returns from CSR and even rules of operation.
The NCSRC should be the only legal authority to register, receive and channel funds so that total contributions from the private sector can be allocated through a single unit.  A strong monitoring mechanism has to be introduced for proper and timely utilisation of funds so that corporate entities involved in CSR remain convinced and CSR, as a social movement, can be more and more appealing to early-stage ventures.  Contribution from corporate entities should be channelled in line with the NCSRC-designed guidelines but private sector participation must be ensured at each stage of policy formulation and operation. Preferences and opinions from the corporate entities doing CSR have to be sought. For the sake of transparency, representatives from the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), the apex forum of the business sector, should be appointed in NCSRC advisory and monitoring committees. Recognition will stimulate further adoption of CSR. The NCSRC through its evaluation unit can go for appraisal of CSR performance based on a set of indicators and recommend for rewards from the government. Business representatives should also be a part of the evaluation process. CSR policy should certainly not encourage corporate entities to engage in social development in individual capacity. In the event of individual initiative, there should be no bar but 'funding as per my wish' should not be recognised as CSR.
As passionate believer in CSR, the corporate world can take the advantage of an institutional framework for a number of valid causes. Fund transfer under a legal framework, documentation of CSR in national archive, enjoying due rewards for good deeds, good reputation building and thereby distinct position in product market, partnership with development experts/thinkers and of course, being a part of social advancement are a few in the list of possible achievements. In long term, reputation as socially responsible business will be the ultimate gain through which the corporate world will be able to enjoy the confidence of a larger consumer base.
On the other hand, apart from tax rebate for all CSR practitioners (at different rates based on performance), the NCSRC can offer CSR awards, operational advantages like options for using CSR label in products among best practitioners. Even year-long promotion of CSR-awarded business through print and electronic media can also be a way for recognition.
Public-private partnership does not suffice to attain the goals of CSR promotion. Perhaps, third sector involvement is an obligatory step. Non-profit organisations, civil society, professional bodies, trade unions, media and of course academics have roles in assessing needs, designing and implementing CSR, making the process foolproof  and free from drawbacks through their expert views, technical knowledge and long-experience. It has to make sure that the NCSRC operational framework accommodates the representation of social actors in its all spheres.  
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