73 Wilhem Elfring, Sabine Kittel and Patrick Neyts, Report on Special Focus Areas: Business Enabling Environment Corporate Social Responsibility Trade (2006) LCG-PSD, Bangladesh cent20donor per cent20ma pping per cent202006 per cent20part per cent20tw0 per cent20 11 November 2008. 74 In a study in 2002 it is shown that 71.1 % of the corporate entities in Bangladesh have mission and vision statement; see the Centre for Policy dialogue, Corporate Social Responsibility Practices in Bangladesh: Results from Benchmark Study (Occasional Paper 18, 2002) http:// 11 November 2008. 75 Ritu Kumer, et al, Understanding and Encouraging Corporate Social Responsibility in South AsiaUpdate 3- Bangladesh (2003) Teri Europe 11 November 2008; see also CPD. 76 Ibid. 94 4 CSR Practices in the Private Enterprises of Bangladesh
preparation and logistic support, managerial reluctance or ignorance, stakeholders’ ignorance, and above all a weak corporate governance system are responsible for the inconsistencies between policies and practices. These inconsistencies are also present in the subsidiaries of multinationals operating in Bangladesh. It is true that the multinationals present in Bangladesh is more advanced in their work for CSR because of the many advantages they have in terms of incentives and tax rebates. They seem to have enough logistic support, strong policies, and management necessary for the implementation of CSR. Never- theless, in recent past the incidents of environmental disaster and damage caused by Occidental and the Asia Energy evidenced their grave irresponsibility to the society of Bangladesh. 77 It is also argued that multinational companies in Bangladesh lag behind in terms of their social contribution with their economic returns. Similarly, the international buying companies, whose prescription for labour and environment related issues are followed by local companies, are found to lack CSR application in their procurement and contract negotiations. 78 18.104.22.168 Mixed Perceptions About the Current Notion of CSR The current CSR agenda is a north-centric concept, taken or borrowed by the corporations in developing countries from a utilitarian approach. The businesses of developing countries, to ensure their market accessibility and protect their brand image for external customers, adopt CSR as a compliance issue prescribed by others, where there is less scope of indigenous choice. CSR as a compliance issue is something which is not received with full understanding, but thrust upon local businesses by the international counterpart companies. On the other hand, tradi- tional philanthropy as a long standing business practice still influences the business minds. As a result many business entrepreneurs, particularly the family-based ones, find the notion of CSR as a holistic business approach difficult to grasp. They often equate CSR with traditional philanthropy or perceive CSR as aiding the needy people and other philanthropic activities for social development. This creates a mixed approach to the practice of CSR among the business society.
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- Spring '20
- Economics, Private Enterprises of Bangladesh