A very informative article titled "CSR funds for research and Development" was published in the Financial Express on March 02, 2014. It has been jointly written by Syed Ejaz Ahsan and Ali Yousuf Hossain. Great importance has been laid upon CSR activities in the corporate sector around the globe. So long, these activities were voluntary, but now some countries have made such activities compulsory through enactment of law.
In India, CSR activities have been made mandatory for companies categorised by the amount of their turnover, and at least 2.0 per cent of net profit. It has been so enacted in the Indian companies Act in 2013. In Bangladesh no legal compulsion is there. A few years back, Bangladesh Bank (BB) issued a circular urging CSR activities for scheduled banks. Now BB publishes a very comprehensive annual report on CSR activities of the scheduled banks. This has compelled the banks to be forthcoming about CSR activities because the annual report has been the instrument of compulsion.
There is no denying that because of the central bank, CSR activities have been virtually institutionalised in the banking sector. In this connection it may be mentioned that Bangladesh Bank has adopted a number of pro-poor measures through the banking channels which have helped accelerate poverty alleviation activities. However, it should be remembered that decoration work in the VIP road, arrangement of golf tournament, display of gala fire works in connection with the opening ceremony of state functions etc., are not acceptable under CSR programmes.
It has been very properly mentioned in the article under reference that the commercially run English medium schools do not come within the purview of CSR activities. Students of English-medium schools come from higher income group of the society, so they do not need any financial assistance.
Of course, any other educational programme targeted for the deprived and less privileged segments of the society are definitely acceptable under CSR. But there is enough scope for disagreement with the view that CSR funds from the banking sector may be utilised for research and development. First of all, any corporate unit may allocate fund for research and development. This will be reflected in the annual report without having any legal encumbrances. Next, the fund of research and development should come from the relevant sector. Pharmaceutical industries can spend fund for carrying out research in connection with healthcare. Other industries may also allocate funds for research and development. For this, they do not need to maintain any research and development unit in their organisations.
They can have bilateral agreement with universities/ research institutes. But the most important point is that the research work will have to be realistic and suitable for use in the country. This will not be the kind of research such as Gulliver found in a deeply meditative scientist thinking of extracting sunshine from cucumber. Care should also be taken so that money from R & D fund is not indiscriminately used for awarding degree and tours abroad.
As mentioned above, CSR activities are rapidly spreading in the corporate world. It is now admitted that the rich-poor divide has sharpened and concentration of wealth in the hands of the few is rising at a very alarming rate. Rich-poor divide can not be redeemed immediately with the help of CSR. But it can perform a lot a of social welfare activities for the under - privileged people.
Pollution and destruction of environment have become major threats which can be contained with the help of CSR activities. During the winter, thousands of people, particularly the children and the old, groan under severe cold bite. Bank CSR fund can rush there with blankets and worm clothes. True, they are doing these kinds of activities. But there is the need and scope for expansion of such services. In some slum areas of the city, there is acute shortage of pure potable water. CSR fund from the banking sector may also be utilised for supply of pure water. Banks can think of creating a fund from CSR head for treatment of patients suffering from diseases involving huge expenditure. Sometimes we see appeals in the newspapers for financial assistance for patients with serious ailments.
CSR activities have wide scope in reducing social tension. So, it can never be left as a voluntary activity any more. We should make CSR funds available by incorporating the mandatory provision in the company law without any further delay.
rezaulparvaz@live.com
Making the best of banks\\\' CSR fund
Syed Mahbubur Rashid | Published: March 06, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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