CSR for inclusive and sustained growth

Corporate Social Responsibility (CSR) intends to undertake activities by integrating economic, environmental and social aspects.  In recent times, conceptual framework and practices of CSR have broadened in multi-dimensional arenas. Along with the spending for the community, practices of green banking and financing in environmental friendly projects are accepted as major CSR activities. Besides, providing opportunities for opening bank accounts for the poor, workers of garment factories and small traders and so forth are considered as CSR activities. Even financial literacy/education and financial inclusivity programmes are also acknowledged as the CSR engagements.  And these terms are used interchangeably now-a-days. In this way, the responsibility of business has been approaching 'socially responsible' motion focusing businesses' accountability towards all stakeholders in a broad and inclusive manner.
Bangladesh Bank, the central bank of Bangladesh, has taken initiatives in respect of formalising CSR in the banking sector of Bangladesh and has issued an elaborate directive to the banks and financial institutions in this regard. It has defined the strategic objectives for CSR engagement, provided some priority areas with a suggestion to foster CSR in their client businesses. Bangladesh Bank has also suggested a first time CSR programme indicating some likely action plans. For instance, the central bank considers that CSR stimulates financial sector's accountability to the society while Environmental Risk Management (ERM) requires inclusion of environmental risk in the main framework. The central bank has been monitoring CSR adoption and CSR performance of banks and financial institutions, as an additional dimension of their management performance.
Banks in Bangladesh are maintaining generally caring and safe working environment. Community engagements of banking sector's CSR programmes focus both on emergency humanitarian and disaster relief, as extended hands to helpless segment in terms of healthcare, education and training. As such, CSR initiatives of banks include reaching out to financial inclusion campaigns for the under-served rural and urban segments with financial services including financing for their productive farm and non-farm micro, small and medium sized enterprises.
Banks have deepened and broadened CSR activities substantially in recent times. In 2013, CSR expenditure of banks totalled at BDT 4.47 billion reflecting more than 45 per cent growth over 2012. Besides, some banks are running their own non-profit hospitals and diagnostic centres. Banks are also focusing on more gender-sensitive recruitment and implementing maternity leave for 6 months. Some banks are also focusing on disability-sensitive employment by placing bright but physically challenged people at various operational areas within the banks.
Taking all these initiatives in view, it appears that financial services have been taken to the doorsteps of the ultra poor, landless, small farmers, sharecroppers, small traders and poor women, and these activities are adding a new dimension to poverty alleviation and building social safety nets.
CSR activities of some banks are very comprehensive and in-depth in as much as they respond to issues like environmental impact assessment in project financing decisions, and gender issues in workforce composition and internal working environment.
These Banks also encourage their client businesses to expand or initiate CSR engagements, offering them support with know-how and incentives, perhaps by way of favoured customer treatment and feasible rebates on profit rate and fees on banking services. Moreover, the CSR activities of banks are integrated towards the efforts of accelerating poverty eradication with inclusive, environmentally sustainable economic and social development, opening up fair advancement opportunities for all in the country.
The entire product mix (deposit and investment product) of some banks is oriented towards CSR and sustained financial inclusivity. Some of these banks have diversified products addressing the needs of the community. The essential aspects of the CSR strategy of those banks are to increase opportunities for the deprived and the disadvantaged.  
CSR programmes of banking businesses can bridge the market failures and market gaps that limit the access of the poor to the services necessary for their wellbeing. This programme can go a long way in reducing deprivation and widening the access of rural and urban poor to basic social and financial services. CSR programmes should initiate steps for measuring and tracking the ecological footprints of the business activities focusing on carbon neutrality.
Bangladesh is a developing country with modest resources. It is significant that we should take practical steps to utilise our assets most usefully. So, we should endeavour to have an integrated CSR policy focusing on understanding the true implications of CSR programmes, enhancing strategic interactions, aligning between industry and stakeholders in a given sphere. We should also engage ourselves in the highly impact-oriented CSR activities for our own sustainability.
The writer is a banker. [email protected]