Socially responsible financing

The concept of Socially Responsible Finance (SRF) and Socially Responsible Investing (SRI) continues to grow, especially in the wake of one of the most devastating financial crises in history. This includes responsibility from the corporate side (corporate social responsibility) as well as the investor side (socially responsible investing) of the capital markets. It is also known as sustainable, socially conscious, green or ethical investing which considers both financial return and social good.
In general, socially responsible investors encourage corporate practices that promote environmental stewardship, consumer protection, human rights, and diversity. Some avoid businesses involving alcohol, tobacco, gambling, pornography, weapons, and/or the military. In addition to stock ownership managed either directly or through mutual funds, other key aspects of SRF include shareholder advocacy and community investing.
The country's banking sector as a whole has started putting emphasis on corporate social responsibility under the guidance of Bangladesh Bank. Economic crises, like the recent global one, has brought economic and financial stability to the forefront of priorities of policymakers at national, regional and global levels. Strengthened regulatory frameworks alone are not enough to fend off future crises from risky global economy. Motivations of financial institutions and markets are also needed for socially responsible business as inclusive, sustainability-supportive financing and refraining from irresponsible risk taking for quick gains. In Bangladesh, socially responsible financing began outside the mainstream banking as microfinance movement of non-government microfinance institutions.
The government has already started a countrywide innovative inclusive financing promotion campaign, with three main thrusts: (i) small stakeholder and sharecropper agriculture, school, mobile and agent banking, and allowing no-frill accounts for the unserved and un-banked (ii) micro, small and medium scale productive rural and urban enterprises (MSMEs), (iii) renewable energy generation, effluent treatment, and other projects adopting new energy efficient, GHG emission reducing output practices.
The result of this innovative inclusive and green financing is noteworthy. It has been helping Bangladesh economy to remain mostly unaffected by the recent wave of financial and economic crises shattering the world economies. The economy of Bangladesh witnessed economic and financial stability.
Socially and environmentally responsible practices will, beside fulfilling the moral obligations, help preserve competitive businesses. Further, the disadvantaged population segments will be aided by social responsibility initiatives. Nowadays, Bangladesh Bank wants the banking sector as a whole to put emphasis on green banking. The idea of financial inclusion stems from social responsibility. However, any sort of rampant corruption by outfits like Hall mark, Destiny and some other MLM companies disrupts social values and  breaches contracts. Capital market scam also indicates lack of corporate social responsibilities.
Bangladesh certainly needs to promote good corporate social responsibility. Creation of wealth should be accompanied by proper attention to the welfare of its society. A regulatory framework must be enforced in the corporate sector. Methods of trading, information flows, financial reporting, conduct of corporate members, systematic enforcement of laws and regulations, and a culture of compliance, are all matters waiting to be covered under a good corporate governance framework here. Improved corporate culture and values can be achieved through better transparency and managerial accountability.
Organisations in Bangladesh should make a larger contribution to the achievement of sustainable economic development. They should also introduce initiatives to support disadvantaged groups. They would do well to become more welfare orientated and work towards redistribution of the country's wealth benefiting the poor in particular.  
[email protected]