Introduction:

Globally, the notion of Corporate Social Responsibility (CSR) is fast gaining acceptance as the contribution that businesses can and should make voluntarily towards environmentally sustainable and socially equitable development. Besides the usual financial reporting, nonfinancial or sustainability reporting is accordingly also fast gaining usage. Stated briefly, CSR is about (i) taking stock of the economic, social, and environmental impacts of a business, (ii) mitigating the negative impacts and bolstering the benign impacts, (iii) taking up action programs and community investments to reduce social exclusion and inequality and to address the key sustainable development challenges (meeting the needs of the present generation without impairing the ability of future generations to meet theirs is a generally accepted meaning of sustainable development ). Because of their ethical and public interest dimensions, many of the desired social and environmental practices are compulsorily mandated by laws and regulations (e.g., safe and healthy work environment, equal opportunity and fair treatment in respect of gender and ethnicity in hiring and career advancement, avoidance of forced labor or child labor, and so forth). CSR programs and actions go beyond such mandatory compliances into voluntary engagements to promote equitable, sustainable development. Besides the self evident ethical case, a strong business case for CSR (as investment in a strategic asset or distinctive capability, rather than an expense) is also getting clearer with developing practice; seen as benefiting a business by : building reputation, brand value, customer loyalty, employee motivation and retention; mitigating risks in own operations and in assessing suppliers and clients; cutting down wastes (of energy, raw materials etc.), driving up efficiency; gaining new markets for products and services, in the communities/ social
groups benefited by the CSR actions.

It would be of strategic, longer run competitive advantage for banks and financial institutions in Bangladesh to embrace CSR in their management approaches and operations, with initiatives chosen in broad-based, extensive stakeholder engagement. Besides adoption of socially and environmentally responsible practices in own internal operations, banks and 1

financial institutions can make major CSR contribution by speeding up financial inclusion of the large socially disadvantaged rural and urban population segments; drawing them in with appropriate financial service packages and with financing programs innovatively designed to generate new employment, output and income. The following could be some priority areas, among the broad range of possible useful initiatives : - Self-employment credit and small and Medium Enterprise (SME) lending programs, taken up solo or in association with locally active Micro Finance Institutions (MFIs), designed to create productive new on-farm /off-farm employment, such initiatives are of particular urgency for regions with endemic high seasonal unemployment (e.g., the manga afflicted Northern districts); - Financing programs for installation of biomass processing plants (e.g. biogas plants), solar panels in rural households, for waste recycling plants in locations populated by urban poor, and for Ef_luent Treatment Plants (ETPs) in manufacturing establishments; - Credit programs for diversified production of crops, oilseeds, spices, vegetables, fruits etc. by rural households, financing the growers directly or through suitable intermediaries in the value chain. Credit support for combinations of farming activities (like co-production of a minor crop with a major one, fish/duck farming with aman rice of deepwater variety in low lying fields), may also be well worthwhile; - Mobile phone based/ local MFI outlet supported programs promptly delivering remittances from Migrant workers to recipients in remote rural households; programs for card based/ mobile phone based delivery of financial services to such households; - Financing programs supporting folk crafts, folk musical and performing arts, aimed at promoting domestic tourism and markets in cultural products/events besides income and employment for the population groups involved. With the employment and new income generated by successfully executed programs, the targeted population segments can eventually constitute big new client bases for financial products and services.

Banks and financial institutions are also well positioned to foster CSR in their client businesses in various economic sectors, engaging with them in assessing the social and environmental impacts of the enterprises/projects seeking _inance. For smaller enterprises, the PKSF has developed a set of guidelines (Revised and Updated Guideline for Management of Microenterprise Environmental Health and Safely (EHS) Risks, PKSF, August 2004) for this purpose. For larger projects (valued at USD10 million or higher), the Equator Principles, a set of guidelines developed under the aegis of the IFC, are being used by a large number of leading international banks. Meaning of Corporate Social Responsibility (CSR) The term CSR came in to common use in the early 1970s, after many multinational corporations formed, although it was seldom abbreviated. The term stakeholder, meaning those on whom an organization's activities have an impact, was used to describe corporate owners beyond shareholders as a result of an influential book by R Freeman in 1984. ISO 26000 is the recognized international standard for CSR (currently a Draft International Standard). Public sector organizations (the United Nations for example) adhere to the Triple Bottom Line (TBL). It is widely accepted that CSR adheres to similar principles but with no formal act of legislation. The UN has developed the Principles for Responsible Investment as guidelines for investing entities. One of the most frequently asked questions is and probably for all those individuals and organizations dealing with CSR issues is the obvious - just what does "Corporate Social Responsibility" mean anyway? Different organizations have framed different definitions - although there is considerable common ground between them. The World Business Council for Sustainable Development in its publication "Making Good Business Sense" by Lord Holme and Richard Watts used the following definition. "Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large" Traditionally in the United States, CSR has been defined much more in terms of a philanthropic model. Companies make profits, unhindered except by fulfilling their duty to 3

pay taxes. Then they donate a certain share of the profits to charitable causes. It is seen as tainting the act for the company to receive any benefit from the giving. The European model is much more focused on operating the core business in a socially responsible way, complemented by investment in communities for solid business case reasons. Personally, I believe this model is more sustainable because: In different countries, there will be different priorities, and values that will shape how business act. And even the observations above are changing over time. The US has growing numbers of people looking towards core business issues. On the other hand, the European Commission hedges its bets with two definitions wrapped into one: "A concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis." It is a key difference, when many business leaders feel that their companies are ill equipped to pursue broader societal goals, and activists argue that companies have no democratic legitimacy to take such roles. That particular debate will continue.

Figure : Corporate Social Responsibility and its various components

Companies need to answer to two aspects of their operations. 1. The quality of their management - both in terms of people and processes (the inner circle). 2. The nature and quantity of their impact on society in the various areas. Outside stakeholders are taking an increasing interest in the activity of the company. Most look to the outer circle - what the company has actually done, good or bad, in terms of its products and services, in terms of its impact on the environment and on local communities, or in how it treats and develops its workforce. Out of the various stakeholders, it is financial analysts who are predominantly focused - as well as past financial performance - on quality of management as an indicator of likely future performance. The practice of CSR is subject to much debate and criticism. Proponents argue that there is a strong business case for CSR, in that corporations benefit in multiple ways by operating with a perspective broader and longer than their own immediate, short-term profits. Critics argue that CSR distracts from the fundamental economic role of businesses; others argue that it is nothing more than superficial window-dressing; others yet argue that it is an attempt to preempt the role of governments as a watchdog over powerful multinational corporations. Corporate Social Responsibility has been redefined throughout the years. However, it essentially is titled to aid to an organization's mission as well as a guide to what the company stands for and will uphold to its consumers. Development of business ethics is one of the forms of applied ethics that examines ethical principles and moral or ethical problems that can arise in a business environment. In the increasingly conscience-focused marketplaces of the 21st century, the demand for more ethical business processes and actions is increasing. Simultaneously, pressure is applied on industry to improve business ethics through new public initiatives and laws (e.g. higher UK road tax for higher-emission vehicles). Business ethics can be both a normative and a descriptive discipline. As a corporate practice and a career specialization, the field is primarily normative. In academia, descriptive approaches are also taken. The range and quantity of business ethical issues reflects the degree to which business is perceived to be at odds with non-economic social values. Historically, interest in business ethics accelerated dramatically during the 1980s and 1990s, both within major corporations and within academia. For example, today most major corporate websites lay emphasis on commitment to promoting non-economic social values under a variety of headings (e.g. ethics codes, social responsibility charters). In some cases, 5

corporations have re-branded their core values in the light of business ethical considerations (e.g. BP's "beyond petroleum" environmental tilt). Corporate social responsibility (CSR), also known as corporate responsibility, corporate conscience, corporate citizenship, responsible business, sustainable responsible business (SRB), or corporate social performance, is a form of corporate self-regulation integrated into a business model. Ideally, CSR policy would function as a built-in, self-regulating mechanism whereby business would monitor and ensure its support to law, ethical standards, and international norms. Consequently, business would embrace responsibility for the impact of its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Furthermore, CSR-focused businesses would proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality. Essentially, CSR is the deliberate inclusion of public interest into corporate decision-making, and the honoring of a triple bottom line: people, planet, and profit. Organization may exercise social responsibility toward their stakeholders, toward natural environment, towards general social welfare. Organizational Stakeholders Organizational Stakeholders or those people and organizations that are directly affected by the practices of an organization and have a stake in its performance. The Natural Environment A second critical area of social responsibility relates to the natural environment. Not long ago many organizations indiscriminately damped sewage; waste products form production, trash in to streams and rivers, into the air, and on vacant land. Now, however, many laws regulate the disposal of the waste materials. General Social Welfare Some people believe that, in addition to treating constituents and the environment responsibly, business organization, also should promote the general welfare of society. Example includes making contribution to charities, and nonprofit foundation and association.

Importance of Corporate Social Responsibility Abstract Companies are, in a broad sense, a group of different agents that have a relationship with shareholders, citizens, providers, and customers. In other words, they are known as stakeholders. Corporate social responsibility may help to establish clear boundaries among the different interests of the groups described above. In this paper, the authors will describe, analyze, and formalize the critical responsibility parameters, as well as the variables that shape them. Corporate social responsibility is proposed as a new management tool and not as a fashionable concept. Furthermore, the advantages and limitations of corporate social responsibility will be analyzed in order to define a management model for achieving responsibility among organizations. Finally, the model limitations are presented, both in the verbal and the mathematical formalizations. The Internet has rapidly become the tool of choice for spreading information about companies around the world. The thing every company fears most is becoming the target of a powerful single-issue campaign group. So, rather than wait for it to happen, it is better to take pre-emptive action in the form of environmental product development and labeling, or engaging in such ideas as codes of conduct and social audits. We have to take cognizance of the new forces in the consumer market, where the consumercitizen is metamorphosing (gradually in countries like India) into a citizen-consumer. Cause marketing, development partnerships and environmental concerns make good business sense - particularly in terms of recycling materials, employee satisfaction and morale, building up reputational capital and as a distinctive brand marketing tool.

Figure 05: Corporate Importance of Corporate Social Responsibility

Arguments for and against of Corporate Social Responsibility Some arguments and against of Social Corporate Responsibility can be stated below in the table: Arguments for Corporate Social Responsibility i. Business creates problems for society and should there for help to ii. solve them Corporations are citizens of our society. iii. Business resources iv. often has the to Social Responsi -bility iii. ii. Arguments against Corporate

Social responsibility i. The purpose of business in US society is to generate profit for owners. Involvement much power. There is a of social

programs gives business too potential for

necessary

conflicts of Interest. iv. Business lacks the expertise to manage social program.

solve problems. Business is partner in our society people. along with government and the general

Organizational approach to Corporate Social Responsibility Organizational approaches to Corporate Social Responsibility are as follows: Obstructionist Stance: An approach to social responsibility in which a firm do as little as possible to solve social or environmental problems. Defensive Stance: A social responsibility stance in which an organization does everything that is required of it legality but nothing more. Accommodative Stance: A social responsibility stance in which an organization meets its legal and ethical obligations but will also go beyond these obligations in selected case. Proactive Stance: A social responsibility stance in which an organization views itself as citizen of society and proactive seeks opportunities to contribute.

Financial system of Bangladesh

9

The financial system of Bangladesh consists of Bangladesh Bank (BB) as the central bank, 4 State Owned Commercial Banks (SCB), 5 government owned specialized banks, 30 domestic private banks, 9 foreign banks and 29 non-bank financial institutions. Moreover, MRA has given license to 298 Micro-credit Organizations. The financial system also embraces insurance companies, stock exchanges and co-operative banks. Bank Licensing Bank Company Act, 1991, empowers BB to issue licenses to carry out banking business in Bangladesh. Pursuant to section 31 of the Act, before granting a license, BB needs to be satisfied that the following conditions are fulfilled: "that the company is or will be in a position to pay its present or future depositors in full as their claims accrue; that the affairs of the company are not being or are not likely to be conducted in a manner detrimental to the interest of its present and future depositors; that, in the case of a company incorporated outside Bangladesh, the Government or law of the country in which it is incorporated Bangladesh as the Government or law of Bangladesh grants to banking companies incorporated outside Bangladesh and that the company complies with all applicable provisions of Bank Companies Act, 1991." Licenses may be cancelled if the bank fails to comply with above provisions or ceases to carry on banking business in Bangladesh. Commercial Banks The commercial banking system dominates the financial sector with limited role of NonBank Financial Institutions and the capital market. The Banking sector alone accounts for a substantial share of assets of the financial system. The banking system is dominated by the 4 State Owned Commercial Banks, which together controlle more than 30% of deposits and operates 3383 branches (50% of the total) as of June 30, 2008. Specialized Banks Out of the 5 specialized banks, 2(Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank) were created to meet the credit need of the agricultural sector while the other two (Bangladesh Shilpa Bank (BSB) & Bangladesh Shilpa Rin Sangstha (BSRS)) are for extending term loans to the industrial sector of Bangladesh.

10

Non-Bank Financial Institutions (NBFIs) Non-Bank Financial Institutions (NBFIs) are licensed and regulated under the Financial Institution Act, 1993. NBFIs play an important role in financing various sectors like industry, trade, housing, transport, information technology as well as the capital market. There are 30 NBFIs in the country. As on 30th September, 2011 there are 158 branches of which 60 in Dhaka, 22 in Chittagong and the rest 76 in other districts. As on 30th June, 2011 the total amount of capital and reserve of the NBFIs stood at BDT 51726.32 million. Total assets and total deposits of the NBFIs were BDT 273424.38 million and BDT 106276.19 million respectively. Total outstanding loans and leases of the NBFIs was BDT 190398.6 million. Major sources of funds of NBFIs are Term Deposit, Credit Facility from Banks and other NBFIs, Call Money as well as Bond and Securitisation. NBFIs are allowed to mobilize term deposit only of tenor not less than six months. At present term liabilities are subject to a statutory liquidity requirement (SLR) of 5 percent inclusive of average 2.5 percent cash reserve ratio (CRR). SLR for the NBFIs operating without taking term deposit is 2.5 percent. BASEL Accord now in the process of test run phase will be made compulsory from 2012. Insurance The insurance Sector is regulated by the Insurance Act, 1938 with regulatory oversight provided by the controller of Insurance on authority under the ministry of commerce. General insurance is provided by 21 companies and life insurance is provided by 6 companies. The industry is dominated by the two large, state-owned companies--SBC for general insurance and JBC for life insurance--which together command most of the total assets of the insurance sector.

NGO-Microfinance Institutions The member-based Microfinance Institutions (MFIs) constitute a rapidly growing segment of the Rural Financial Market (RFM) in Bangladesh. Microcredit programs (MCP) in 11

Bangladesh are implemented by various formal financial institutions (nationalized commercial banks and specialized banks), specialized government organizations and NonGovernment Organizations (NGOs). The growth in the MFI sector, in terms of the number of MFI as well as total membership, was phenomenal during the 1990s and continues till today. Over the period of June 2003 to June 2006 the growth rate was over 70% in terms of horizontal expansion of microcredit borrower. The total coverage of MCP in Bangladesh is approximately 30.09 million borrowers without considering overlapping figures.

Banking and Non Banking Financial Institutions Basic Differences In Bangladesh now different commercial banks and the non banking financial organizations are operating there business. And every organization now involved attracting the retail customers that means the middle income group people of the country. To draw their attention the sells persons of different organization try to knock every possible door. These activities of different organization increase the interest about this sector. As both commercial banks and the non financial institutes are in the market, so it makes confusion to the general people about the activities of these organizations. This article helps the customers to makes differentiate between these. Banks, usually a corporation, that accepts deposits, makes loans, pays checks, and performs related services for the public. The Bank Holding Company Act of 1956 defines a bank as any depository financial institution that accepts checking accounts (checks) or makes commercial loans, and its deposits are insured by a federal deposit insurance agency. A bank acts as a middleman between suppliers of funds and users of funds, substituting its own credit judgment for that of the ultimate suppliers of funds, collecting those funds from three sources: checking accounts, savings, and time deposits; short-term borrowings from other banks; and equity capital. A bank earns money by reinvesting these funds in longer-term assets. A Commercial Bank invests funds gathered from depositors and other sources principally in loans. An investment bank manages securities for clients and for its own trading account. In making loans, a bank assumes both interest rate risk and credit risk. The commercial banks are described now a day by many agents of economic development and social change. Their functions and roll are undergoing revolutionary changes client coverage and extended beyond imagination. 12

While many people believe that banks play only narrow roll in the economy taking deposit and making loans the modern banks has bad to adopt new roles to remain competitive and responsive to public needs. Bakings principal roles today are as follows: The intermediary role: Transforming saving received primarily from household into credit for business firm and others in order to make investment in new building, equipment and other goods. The payment role: Carrying out payment for goods and services on behalf of their customers. The guarantor role: Standing behind their customers to pay off customer debts, when those customers are unable to pay. The risk management role: Assisting customer in preparing financially for the risk of lost to property and persons. The saving / investment advisers role: Aiding customers in fulfilling their long rang goals for a better life by building, managing, and protecting savings. The safekeeping/certification of value role: Safeguarding a customers valuables and appraising and certifying their true market. The agency role: Acting on behalf of customers to manage and protect their property or issue and redeem their securities. The policy role: Saving as a conduit for govt. policy in attempting to regulate the growth of the economy and pursue social goals. Non-bank financial institutions represent one of the most important parts of a financial system. In Bangladesh, NBFIs are new in the financial system as compared to banking financial institutions (BFIs). A total of 25 NBFIs are now working in the country. The NBFIs sector in Bangladesh consisting primarily of the development financial institutions, leasing enterprises, investment companies, merchant bankers etc. The financing modes of the NBFIs are long term in nature. Traditionally, our banking financial institutions are involved in term lending activities, which are mostly unfamiliar products for them. Inefficiency of BFIs in 13

long-term loan management has already leaded an enormous volume of outstanding loan in our country. At this backdrop, in order to ensure flow of term loans and to meet the credit gap, NBFIs have immense importance in the economy. In addition, non-bank financial sector is important to increase the mobilization of term savings and for the sake of providing support services to the capital market. The basic difference may include:

A Bank is an organization that accepts customer cash deposits and then provides financial services like bank accounts, loans, share trading account, mutual funds, etc. A NBFC (Non Banking Financial Company) is an organization that does not accept customer cash deposits but provides all financial services except bank accounts. A bank interacts directly with customers while an NBFI interacts with banks and governments A bank indulges in a number of activities relating to finance with a range of customers, while an NBFI is mainly concerned with the term loan needs of large enterprises A bank deals with both internal and international customers while an NBFI is mainly concerned with the finances of foreign companies A bank's man interest is to help in business transactions and savings/investment activities while an NBFI's main interest is in the stabilization of the currency

Besides the differences between the both commercial banks and the non banking financial institutions they play both for the development of the economic structure of the country. If the both play positively than it can be said that, the development of the country is sure.

14

Review of CSR initiatives in banks of Bangladesh

Trends of sectoral pattern of direct CSR expenditure reported by

banks:

15

It may be seen from the table 1 above that humanitarian and disaster relief, health and education continued getting major shares of CSR expenditure of banks; while sports, art and culture also were significantly large recipient sectors. CSR expenditure on environment is seen to have begun only in 2010, on a modest scale. Notable specific features of expenditure in CSR programs of banks in 2010 are summarized below: Distribution of blankets/warm clothes among rural and urban indigents in the winter was an activity broadly embraced by most banks. Financial donations to families affected by debacles (fire, accidents, civil disturbances and so forth) comprised large share of the expenditure on humanitarian and disaster relief.

16

Trends of CSR initiatives not involving direct expenditure: promotion of financial inclusion
Besides direct budgetary expenditure towards attaining various CSR objectives, banks have important CSR role in channeling adequate credit flows to productive pursuits of rural and urban population segments of small means typically under-served by the formal financial markets. In this role, banks in 2010 enthusiastically participated in BB's financial inclusion drive kicked off with a cross-country road show highlighting interalia the financial services on offer for these population segments, including rural small landholder/tenant farmers and myriads of urban and rural SMEs generating diverse range of outputs in goods and services. In the financial inclusion drive banks also channeled increasing credit resources to renewable energy generation and other 'green' undertakings, towards fulfillment of environmental CSR objectives. These initiatives entail modest indirect impact on earnings levels of the concerned banks to the extent of forgone income differential, if any, relative to other available investment options. In the longer run however, these forgone income are likely to be more than made up by the larger income potential from the broadened and diversified customer base. 3 SCBs, 4 SDBs, 24 PCBs and 7 FCBs reported substantial engagement in 2010 in credit programs promoting financial inclusion of socially disadvantaged rural and urban population segments. Besides agricultural credit programs pursued by all banks (with FCBs lending mostly through locally active MFIs), the financial inclusion programs of banks comprised:

17

18

Chart 3 and 4 show increasing trends in both outstanding SME and agricultural credit. Engagements of all bank groups in SME lending are seen to be on rising trend, more prominently so for PCBs and SCBs (chart 3).

Two agricultural SDBs (BKB, RAKUB) and four SCBs traditionally play major roles in agricultural lending; PCBs and FCBs newly involved in this role are seen to be expanding their agricultural lending gradually (Chart 4).

During 2010, almost 1.73 million poor/marginal farmers received Tk. 4764 crore agricultural credit from different banks. 19

in 2010 some special niche area schemes are undertaken by banks like, Disbursement of Taka 40 crore under a whole selling program by RAKUB for production of high value crops. Disbursement of Taka 9.18 crore by BKB, Sonali Bank Ltd., Agrani Bank Ltd., and Janata Bank Ltd. for production of various oil-seeds and spices in the Chittagong/Bandarban hill tract areas.

Progress in deepening of CSR practices in banks

Institutionalizing CSR at corporate level BB's guidance circular of June 2008 recommended embracing of CSR in banks with decision adopted at the highest corporate level (board of directors of the bank), and to choose action programs and performance targets through a consultative process involving the internal and external stakeholders concerned. 36 out of 47 banks in Bangladesh (3 SCBs, 3 SDBs, 26 PCBs and 4 FCBs) reported having embraced CSR in 2010 with decision at the highest corporate level. 16 PCBs, 3 SCBs and 1 FCB have formed separate Foundations or Trusts as non-profitable, non-governmental organization, solely devoted to the cause of charity, social welfare and other benevolent activities towards the promotion CSR objectives. These banks have committed specified percentages of their pre-tax profit/net profit each year towards CSR activities. CSR is thus seen to have been institutionalized at corporate level in more than three fourth of the banks operating in Bangladesh. Ingraining CSR practices within the organization & client businesses In accordance with the BB guidance circular suggestion on ingraining environmentally and socially responsible practices within the organization, 44 out of 47 banks (1 SCB, 4 SDBs, 30 PCBs and 9 FCBs) reported having taken steps for adoption of socially and environmentally responsible practices in their own internal operations (Table 2) in 2010, against only four banks (1 SDB and 3 PCBs) in 2009. 2 SDBs, 9 PCBs and 5 FCBs reported having taken actions towards providing a healthy and safe workplace and creating an environment conducive to learning and development. 1 SCB, 2 SDBs, 21 PCBs and 4 FCBs reported having taken steps to reduce the adverse environmental impacts of their operations and business activities, including use of recycled materials, minimizing generation of wastes etc.

20

1 SCB, 2 SDBs, 20 PCBs and 4 FCBs reported having taken steps in 2010 to foster CSR in their client businesses in various economic sectors, assessing the social and environmental impacts of the enterprises/projects seeking finance (Table 2). They have mentioned their practices of discouraging projects that are likely to have adverse impact on environment. Some banks have also reported introducing guidelines for assessment of environmental and social impacts of the projects. CSR engagement through donations to CSOs, NGOs Banks reported significant community investments in 2010 by way of donations to initiatives of Civil Society Organizations (CSOs), NGOs and institutions involved in health, education and culture; for social and environmental improvement including nutrition, health and education in the disadvantaged population segments (Table 3).

21

The large majority of banks are seen to have gone for CSR engagements through contributions to CSOs, NGOs active in the respective fields; across the entire sector spectrum for CSR expenditures appearing at Table 1. These include hospitals, schools etc. run through separate trusts/foundations established by banks.

CSR initiatives undertaken directly by banks themselves

Direct involvement of banks in conducting their CSR programs would be seen from the above table to be substantial. These include grants/donations/scholarships etc. to individuals and other beneficiary institutions. Most of the grants/ donations are one-off, but some programs like scholarship schemes of some banks continue over the years of study courses for which these scholarships are awarded.

22

Reporting of CSR initiatives All 4 SCBs, 1 out of 4 SDBs and all 30 PCBs have reported their CSR initiatives as supplements to usual annual financial reports in accordance with CSR guidance circular issued by Bangladesh Bank. 2 SCBs, 1 SDB and 21 PCBs have reported the CSR activities in separate chapters of their annual reports. Most of them have provided details of their programs including expenditure outlays in these reports. 2 SCBs, 1 SDB and 16 PCBs have included future plans in these chapters on CSR activities. FCBs in Bangladesh publish only financial statements of their local operations, which includes no information on CSR activities. One FCB issued a separate report of their CSR activities in Bangladesh in 2010. None of the banks operating in Bangladesh have thus far issued separate reports of their CSR programs and activities in comprehensive standard formats such as the GRI. Support measures/incentives for CSR from BB/GoB Financial Inclusion: Bangladesh Bank (BB) has adopted several remedial measures to bridge the gaps in financial inclusion like BB has a refinance line for banks against their loans to Small and Medium Enterprises (SMEs); supported currently by ADB financing. A Taka 2.0 billion refinance line is available from BB for banks lending for solar panels, biomass plants, Effluent Treatment Plants, energy efficient kilns in brick fields. 6 percent interest subsidy for banks against their concessional lending to pulse/spice growers, corn/oil seed harvesters, salt cultivators etc. paid by BB on behalf of GOB.

23

Income tax waiver allowed by GOB's NBR on CSR expenditures of businesses in specified sectors.

Active promotion and facilitation by BB of remote delivery of financial services to the poor through mobile phone and other smart card/IT based devices; lately facilitated further by introduction of automated interbank clearing and settlement of electronic fund transfers.

Arrangement for providing credit from the newly sanctioned Investment promotion and Financing Facility (IPFF) of USD 257 million from IDA to different infrastructural sectors including renewable energy.

CSR statements in annual reports of banks

AB Bank Limited: ABs commitment to CSR is a journey, in the course of which it aims to align its business values, purpose and strategy with the social and economic needs of its stakeholders, whilst embedding responsible and ethical business policies and practices into all its endeavors. Agrani Bank limited: The bank has a deep commitment, loyalty and a high sense of responsibility to the nation and the people. As part of its CSR activities, the bank contributes greatly to the nourishment of the countrys arts, crafts, culture and sports. Al-Arafah Islami Bank Limited: CSR is an integral part of the banks corporate culture and ethics. The bank responds positively in every sphere of social activities while delivering innovative solutions to its valued customers and helping different areas of social activities through its CSR activities. Bank Asia Limited: Bank Asia always continues its efforts to look beyond short-term quantitative gains, and to concentrate on issues that make the institution socially responsible and have given all out efforts towards sustainable balanced growth. It considers socially responsible activities as an important part of its culture, identity and business practice. So, it contributes to improve the livelihood opportunities of the less fortunate, provision of facilities 24

for education and health, protection of the environment, and encouragement of cultural and social activities in the rural as well as urban areas. BASIC Bank Limited: BASIC Bank Limited a state owned scheduled bank, adjudged as one of the soundest banks in Bangladesh is running on slogan Serving People for Progress. The slogan manifests the commitment of the bank to comply its social responsibility. Recognizing the importance of CSR and being a socially responsible organization BASIC Bank conducts its CSR in two ways, one is policy driven to finance and the other is by participation in the social work directly. BRAC Bank Limited: BRAC Bank, through its CSR activities, is trying to build better relationships with all stakeholders by paying closer attention to how to ful_ill its social, economic, environmental and ethical responsibilities. CSR practice allows the bank to align its operations with standards and expectations that are increasingly important to its shareholders, employees, customers and communities where it operates. CITI Bank NA: Corporate Social responsibility is also known as Corporate Citizenship or Sustainability Citizenship in Citi. Citi is striving to create a positive impact on society and the environment through its core business activities, diversity efforts, volunteerism and Citi Foundation philanthropy. Dhaka Bank Limited: DBL involves itself in charity, social welfare and other benevolent activities towards the promotion of the objective of its foundation which would act as a catalyst in creating awareness on development issues and as a facilitator for building bridges with the common goal of sustainable development of the society, providing direct assistance to various development projects and people. Dutch Bangla Bank Limited: DBBL as a responsible corporate body has been playing a pioneering role in implementing social and philanthropic programs to help disadvantaged people of the country. Education, healthcare, human resource development, conservation of nature, creation of social awareness, rehabilitation of distressed people and such other programs are some of the important areas where the bank carries out its social and philanthropic activities.

25

Eastern Bank Limited: The main objective of EBLs CSR policy is to foster the education sector and any activity that relates to the development of education system in Bangladesh. Other than this, at the time of national requirement, EBL would generously come forward with helping hands to serve the humanity. EXIM Bank Limited: The banks CSR activities mainly involve contribution towards building up an enlightened and prosperous nation. In view of it, it has taken patronization of education as its core CSR activity, whereas disaster management and alleviation of poverty is much emphasized. First Security Islami Bank Limited: FSIBL keeps on discharging its CSR activities as a part of social entity for the greater interest of the entire society. The bank has always extended its support to the development of the community through promotion of sports, culture, health & educational programs, disaster relief etc. HSBC: The new strategy of HSBC Bangladesh emphasizes the current focus on education for underprivileged children and supporting the environment. These two focus areas have been allocated at least 75% of the budget while the rest are used to support the needy, disability issues of the society and local culture. IFIC Bank Limited: IFIC is working to follow responsible business practices in all of its functions and operations and will strive to implement the same at its stakeholders, bene_iciaries and other business partners. Islami Bank Bangladesh Limited: IBBL, a _irst generation private commercial bank of the country is discharging social responsibility by creating employment opportunities for and ensuring healthy working environment and financial securities. Jamuna Bank Limited: Jamuna Bank is committed to discharge its duties for the service of downtrodden people of the society. The banks CSR activities are about addressing the needs of all the stakeholders in an appositive and meaningful manner. Janata Bank Limited: The bank is aware of the responsibilities of corporate citizenship, as such, it believes that it is its responsibility to help improve the living standard of the poor 26

people, to try to alleviate poverty from the society and to contribute in the field of education, health care, sports etc. Mercantile Bank Limited: MBL is fully committed to conduct its business activities in economically, environmentally and socially sustainable manner. It fosters the motive in mind to build a long-term good relationship with the customers, shareholders, the regulatory bodies and other stakeholders of the bank. Mutual trust Bank Limited : MTBL firmly believes that the stakeholders of the bank are not only its sponsors, shareholders, depositors and other customers of the bank, but also the common people of the country including the less privileged and special people. As such, the bank plays an important and participative role, whenever any natural crisis befalls the nation. MTB regularly contributes to the development efforts of the government and other recognized agencies including charitable, educational and healthcare institutions, throughout the country, manifested through donations, sponsorships etc. National Bank Limited: NBL recognizes that its activities have an impact on the environment in which the bank and its subsidiaries do business. The bank also realizes that the basis for any good business is trust and that society expects the highest standards of the bank when it comes to the question of ethics and CSR. NCC Bank Limited: NCC Bank has always given due importance to its responsibility to the society. In order to institutionalize its duty to the society, the bank has established a foundation. One Bank Limited: The bank has decided to constitute One Bank Foundation to enable the Bank to undertake CSR more proactively by taking planned initiatives and serve the needy and distressed community at large. Premier Bank Limited: The bank is earnestly committed to its Corporate Social Responsibilities and out of these responsibilities it is conducting various charitable, social welfare and development activities.

27

Prime Bank Limited: The bank is contributing to create an enabling environment for the underprivileged and excluded-people to access the basic services they need and to minimize social injustice. Pubali Bank limited: The bank is very much committed to its corporate social responsibility. The bank believes that without awareness of social responsibility and keeping performance in accordance to the need, no country can attain sustainable development. The bank shows its obligation for upliftment of backward part of socio-economic segments. Shahjalal Islami Bank limited: With a view to providing financial assistance to the poor and needy people of the society and also for the welfare of the community, the bank has established a separate foundation. Its objective is to provide health care, relief & rehabilitation, education, humanitarian activities etc. Social Investment Bank Limited: SIBL has been responding spontaneously to the social commitment. As a part of CSR, the bank paves the way of doing welfare of mankind and provides financial assistance to different beneficiaries. Southeast Bank Limited: The banks Corporate Social Responsibility is about addressing the needs of all the stakeholders in a way that advances its business and make appositive and meaningful contribution to the society. Standard Bank Limited: As part of its commitment to create real value in the society that is constantly developing, Standard Bank is determined to be a good corporate organization in every corner of its community, clients, employees and other stakeholders in the places where it works and live. The bank holds itself accountable for the social, environmental and economic impacts of its operations. The City Bank Limited: City Bank committed to the project Making sense of Corporate Social Responsibility, which will be the umbrella for all the City Banks social activities. To discharge its Corporate Social Responsibilities, City Bank supports various kinds of social activities.

28

Trust Bank Limited: Corporate Social Responsibility holds the bank accountable for the social, environmental and economic impact of its operations. TBL designs its policies and business practices to reflect the highest standards of corporate governance. Uttara Bank Limited: Uttara Bank considers socially responsible activities an important part of its culture, identity and business practice. It has a deep commitment, loyalty and a high sense of responsibility to the nation and its people. As part of its CSR, the bank contributes greatly to the nourishment of the countrys arts, culture and sports and to combat all natural calamities.

29

Direct CSR Expenditures reported by the Banks:

30

31

Corporate Social Responsibility by Different Banking and Non-Banking Financial institution:

Bangladesh Bank (Central Bank of Bangladesh) Environment: Bangladesh Bank (BB) gets solar power to cope with the power crisis with the green energy. Governor Dr. Atiur Rahman inaugurated the solar power system on the rooftop of the central bank's headquarters on March 30, 2010. The solar power system will generate 20 kilowatts of electricity at the peak, to keep the energy savings lights at the governor's office and the lobby, conference room and the boundary of the central bank. The system is also able to supply uninterrupted power for six hours with three hours of battery backup. The solar plant will produce green energy for the next 20 years . This initiative is a primary step as Corporate Social Responsibility in enabling Bangladesh Bank more environment-friendly. Staff welfare A 2.00 crore fund is created by the special power of Bangladesh Bank Governor which is called Employee Welfare Fund. Out of the profit of this fund following financial assistance are given to the bank employees and their children. 80% of the profit is used to give scholarships for brilliant result in SSC and HSC level. 5% of the profit is used to create a Medical Assistance Fund. 15% of the profit is used to give stipends to children of any deceased employee and to any handicapped children of its employee. This scholarship is for class II to HSC level to carry out their study. Childcare support Day-care Center for children of bank employee: Bangladesh Bank established a day-care center for the offspring of its employee. The center is under direct supervision of the welfare section of its Motijheel Office. 32 children can be accommodated in the center. 65% of total cost of this center is borne by Bangladesh Bank.

32

Janata Bank Limited

Financial Inclusion: The bank disbursed Tk. 1.10 crore to sharecroppers/marginal farmers for self-employment and for promotion of export of leather goods and Tk. 14.63 under BB re-finance scheme. The bank opened 1,412,805 A/C in the name of rural farmers and besides government subsidy; the farmers of Chittagong hill-tract area are given loans for producing various spices and oilseeds. Education Financing to self-employment & SME for social development, poverty alleviation and overall economic development. Financing to dairy, _fishery, poultry, goat rearing and cow fattening projects. Women entrepreneurship development program, self-dependent loan program, small businessmen development loan project, diversified supervision loan program. Funding program to NGOs for enhancing the _low of micro credit under NGO Linkage Loan. Disaster relief Donations to government relief fund during any natural disaster (Sidr, cyclone, flood) for the victims and providing special loan program at lower interest rate for employment. Donation for Aila victims in 2008.

Social welfare Donation to Bangla Academy for annual General Meeting in 2009. Donation to Asiatic Society for publishing Childrens Banglapedia. Sponsored International Mother Language Day celebration by UGC. Donation to Bangladesh Weightlift Federation. Donation to Motijheel Girls High School, Belgachi Bikolpo Degree College, Rajbari. Donation to Schizophrenic treatment center Day Care Centre in 2009 Financing to different sector corporations at concessional interest rate for the socioeconomic development of the country. Donation to Ahsania Mission Cancer Hospital. 33

Soanli Bank Limited

As part of its CSR, Sonali Bank Ltd. is continuing donations to different organizations which support social welfare. Financial Inclusion: The bank has undertaken various lending projects like fishery loan, shrimp cultivation loan, goat/sheep rearing loan, poultry/dairy loan, and different NGO linkage loan under Financial Inclusion program. In this regard, the bank disbursed credit to farmers of Chittagong hill-tract area for producing various oil-seeds and spices. In order to ease the loan disbursement, the bank already opened 2,147,119 Tk. 10 rural farmers A/C. Disaster relief Donated Tk. 10,500,000 for the Sidr affected people. Donation to PMs Relief & Welfare Fund worth Tk. 2,500,000 for the Aila affected people. Education Donation to Dhaka University, Nazrul University, Shahjalal University of Science & Technology, Vikarunnasa Noon School etc. Social welfare Donation to American Alumni Association, Hunger Free World, Bangabondhu Shangskritik Jot, Ahsania Mission Cancer Hospital, Weight Lift Federation, Asiatic Society of Bangladesh. Sponsored BISIC Boishakhi Fair, National Vaccination Day.

BASIC BANK LIMITED BASIC Bank has been implementing social and philanthropic programs to help disadvantaged people of the country. Microfinance, Healthcare, Sports, Environment, Creation of social awareness, Rehabilitation of distressed people to mitigate human sufferings is some of the important areas where the bank carries out its social and philanthropic activities. 34

Financial Inclusion BASIC bank is statutorily obligated towards the promotion and development of small and medium industries sector. As per mandate of memorandum, 50% of loanable fund of the bank is to be invested in small and medium industry. Health The Bank is patronizing some health care organizations by the _inancial support. In 2009 the bank has donated SANDHANI & Lions Eye Hospital for the free treatment Campaign in different places of our country. The bank has also donated money directly for some Acid Victims. Environment As a part of CSR contribution BASIC Bank adopts environment friendly practices in its operation. In its business operation BASIC Bank always considers the effects of banks financed projects on environment. This issue has been included in the process of project appraisal. Fuel driven vehicles are a major cause of air pollution and fuel procurement is a major source of expenditure of foreign currencies. Keeping these dual issues in mind the bank has been financing CNG refueling projects. So far BASIC Bank financed 23 CNG refueling projects of which 09 in 2008. Sports In 2005, jointly with Bangladesh Chess Federation, undertook an extensive plan to increase the popularity of Chess by organizing new talent hunt program BASIC Bank National Junior Chess Championship. From 2005 to 2009 the bank sponsored the 26th, 27th, 28th and 30th BASIC Bank National Junior Chess Championship. BASIC sponsors the BASIC Bank Interdistrict National Women Handball Tournament The Bank has also sponsored the National & International BASHAAP Championship in 2008. _ The Bank sponsored Aga Khan School Football Tournament in 2006 & Co-sponsored the Inter School Debate Competition-2009 which was organized by the Motijheel Govt. Girls High School.

35

BANGLADESH KRISHI BANK

Financial Inclusion Financing activities relating to poverty alleviation, creating self-employment, reducing gender discrimination, women empowerment, environmental development, increasing social awareness, development of the handicaps, development of the rootless slum people etc. Sanctioned loan of Tk. 20.00 Crore with easy-conditions to an NGO named Bureau Bangladesh under BKB-NGO Linkage Wholesale Microcredit Program. Huge investment has been made in Mymensingh for _ishery applying intensive/halfintensive system. Started implementation of Special Fishery Loan Program for other potential areas of the country. Loan program for landless/marginal peasants. Special micro credit program for the development of the handicaps. Financing at concessional interest rate for the socio-economic development of the country.

36

DUTCH BANGLA BANK LIMITED Dutch Bangla Bank Limited (DBBL) has been playing a pioneering role in implementing social and philanthropic programs to help disadvantaged people of the country. Education, healthcare, human resource development, conservation of nature, creation of social awareness, rehabilitation of distressed people and such other programs to mitigate human sufferings are some of the important areas where the bank carries out its social and philanthropic activities. Dutch-Bangla Bank Foundation, established in June 2001, carries out humanitarian activities like rehabilitation of the destitute and neglected section of the society. DBBL provides 5 percent of its gross profit to the foundation every year. Education DBBL is providing scholarships to students, especially for those who can not continue their study due to financial constraints as well as to the meritorious and needy students every year since 2003. The bank awards around 300 new scholarships of Tk. 1,000 per month every year along with continuing scholarships for those studying at HSC level. So far around 745 scholarships have been awarded in this level. The Graduation level scholarships of Tk. 2,000 per month are renewable for their entire academic period of graduation level and about 876 scholarships have been awarded in this level. The bank also awards 50 fellowships of Tk. 5,000 per month every year to the researchers having Masters Degree and those studying at different public universities at M. Phil, PhD or post-doctoral level. About 129 fellowships have been awarded so far As part of its corporate social responsibility, DBBL donated more than Tk. 10 crore to Dhaka University for constructing a research centre (Centre for Advanced Research in Arts & Social Science Bhaban). The research centre, first of its kind in Bangladesh, aims to play a vital role in higher study in human and social sciences. Researchers and scholars from home and abroad will be awarded scholarships and fellowships for conducting higher study. Donated to establish a modern Braille printing press to Bangladesh National Society for the Blind for publishing Braille books for the blind students. 37

Donated reference books to the library of different educational institutions like BSMMU, Dhaka University etc.

Donated a pick-up van to Botanic Garden of Bangladesh Agriculture University for collection, conservation and utilization of rare and endangered plant species of Bangladesh etc.

Health Cleft-lip problem is not only a health problem but it affects the whole family along with the victim. Since 2003 DBBL is working with these vulnerable groups under its Smile Brighter Program to bring back smile on their face and to enable them to start normal life. This is a continuous program aiming to perform as much operation possible per year. Total 5,000 poor cleft-lipped boys and girls have so far been successfully operated across the country till date. DBBL Foundation provides financial support for operative treatment of rural and poor women who have been suffering from Vasico Vaginal Fistula (VVF) and other related problems with a view to ensure their healthy and productive life. A total of 86 patients have so far been successfully operated across the country till date. In 2008, DBBL took an initiative of conducting surgery on some 12,000 poor cataract patients across the country. So far some 2000 poor cataract patients have so far (during 2008 & 2009) been successfully operated across the country under the Cataract operation for underprivileged rural people program. Under DBBLs Medicine and nutrition support for HIV/AIDS patients program , 50 HIV/AIDS patients including women and children are being provided with ARV (Anti-Retro-Viral) medicines, vitamins and nutritious food supplement and clinical supports. DBBL provides free rural medical services for rural poor people specially mother and children through rural branches such as Shimrail, Donia, Gazipur Chowrasta, 38

Boardbazar, Savar Bazar, Baburhat, Patherhat, Hathazari branch etc. Medical of_icers are providing advices and prescriptions to poor patients of surrounding areas of these branches. DBBL donated generous amount of money to different health organizations for medical instruments and medical infrastructural development such as operation theatres, laboratory, hospital building, etc. Disaster relief Bangladesh faces various kinds of natural calamities like cold, _lood, storm, cyclone etc. in every year. Considering the sufferings of common people DBBL has introduced following special programs for the people of the affected areas: Financial support for rehabilitation of land slide victims of Chittagong. For rehabilitation of devastating _lood victims. For rehabilitation of cyclone Sidr-hit people. Twenty lacs blankets for cold-hit people of northern region of Bangladesh. Water purifying tablets, oral saline & Cholera saline for the Flood victims. To ensure hygienic sanitation system DBBL provided 460 numbers of sanitary latrines for the inhabitants of Angorpota and Dahagram enclave. DBBL also provided support for ensuring pure drinking water by providing 50 hand tube wells for them. Sports DBBL provides _financial support for promoting the sports and culture of Bangladesh. Some mentionable events were: Sponsoring inaugural Test Match between Bangladesh and India. Financial support to Bangladesh Hockey Federation. Sponsoring Dutch-Bangla Bank President cup Golf Tournament. Sponsoring Dhaka Sports Carnival-2007. Donation to Bangladesh Olympic Association.

39

Social welfare For the development of the vulnerable segments of Bangladesh, DBBL assisted to rehabilitate the acid and dowry victim women by providing one-time _inancial assistance for establishing small scale agro-based rural economic enterprise to be self reliant. Total 884 women received financial assistance from DBBL. DBBL provides financial support for rehabilitation of physically handicapped, mental impaired, visually impaired, hearing impaired, autistic and street children by ensuring education and vocational training. DBBL runs mass awareness programs on different burning issues through print and electronic media. Some remarkable issues are as follows: Save the Nation from curse of Dowry, Stop Acid violence, Prevent Drug Abuse, Tree plantation and preservation of environment, Right of disable children etc. Financial support to Nirapad Sarak Chai for helping the victims of road accident and mass campaign for prevention of traf_ic accident. City beauti_ication and preserving environment to develop an eco-friendly society for healthy human life.

BRAC Bank Limited

BRAC Bank's CSR Policy is Green Banking. Since the inception as a responsible corporate body BRAC Bank Ltd. has undertaken various initiatives considering the interest of customers, employees, shareholders, communities and environment. These very initiatives go beyond the statutory obligation/mandatory compliances to voluntary activities that promote sustainable development. BRAC Banks vision, which focuses on double bottom line that it should make decisions based on not only profit but also based on social and environmental consequences, is closely linked to the principles of CSR.

40

Education : Scholarship for Tetulia Pilot School: In line with the intention of spreading the scholarship supports to the deepest end of the country, BRAC Bank took up a program for providing educational cost for financially challenged female students at Tetulia Pilot School. Each year, 5 female students of this north-most school of the country are provided with full tuition, textbook and related support for the entire year. BRAC Bank-Prothom Alo Adomyo Medhabi: This is yet another unique, large program to support talents from the underprivileged strata of the society. The bank supports poor meritorious students for completing their study till undergraduate level. Health: HICare: BRAC Bank provides financial aids for the monthly salary of the teaching staff of 12 centers of Hicare. Hicare takes care of the treatment and education of hearing impaired poor people of the society. BRAC Bank stood beside kidney Foundation for building their new premises with the modern medical equipment and the orthopedic patients for providing them necessary treatment and artificial body limb in association with Nurture General Hospital. Society for the Welfare of Autistic Children (SWAC): Autism remains as a lessheard disorder. Emotional help and respect helps fight autism in children. In that line, BRAC Bank supports the leading school of Autistic Children for building awareness about Autism as well as gets the employees involved. Environment: BRAC Bank is working towards reducing waste and the more efficient use of resources. Haor Utshob (Marshy land festival): BRAC Bank supported organizing a 3 day long festival in the Marshy land of Sylhet district. This festival is arranged to build awareness about the eco system and importance of its existence among the people. Free plant distribution: BRAC Bank being 3P (support the people, protect the planet, ensure profitability) follower gives away free plant among customers and guests to motivate people for expanding the greeneries in the country.

41

Usage of Re-cycled paper: BRAC Bank prefers usage of re-cycled paper to make the planet greener. Solar Energy: BRAC Bank supports National Defense College of Bangladesh Army for protection against landscaping and installing solar energy powered lamps. Also the bank has started making its unit offices greener with Solar Energy. In first phase, 100 unit offices of BRAC Bank will turn green. Young Leadership: BRAC Bank supported CIMA Global Business Challenge, an international competition designed to bring out best in the young business leaders tomorrow and DCCI Summit on 'Bangladesh 2030: Strategy for Growth'. Culture and Heritage: BRAC Bank donated a handsome amount to Liberation War Museum and continuously supporting Bengal Gallery, a leading gallery dedicated to promoting and supporting arts and painting in Bangladesh. Community Development: Supporting Acid Victims with Prothom Alo: BRAC Bank stood beside nearly 70 acid victims of Dinajpur district, in association with Prothom Alo, to bring these women into natural, mainstream social life through self-employment. SEID Trust: BRAC Bank provided educational materials for around 300 underprivileged children of SEID Trust-working for ensuring the rights of education for the children with multiple disabilitiesparents of the children belong to the lower segment of the society i.e., rickshaw puller, day labor, house maid etc.

42

CITI BANK NA
Citi Bank NAs CSR strategy runs through its core business activities, diversity efforts, volunteerism and Citi Foundation philanthropy. Microfinance, Healthcare, Sports, Environment, Creation of social awareness, Rehabilitation of distressed people to mitigate human sufferings are some of the important areas where the bank carries out its social and philanthropic activities. Financial Inclusion Co-lead Arranger of BRACs micro-credit receivables Securitization, a groundbreaking transaction, denominated in Bangladesh Taka, to provide an aggregate of BDT 12.6 billion (US$180 million equivalent) of financing for BRAC over a period of six years. BRAC, a leading non-governmental organization, entered into a term financing of Tk 1.40 billion with Citibank NA, Bangladesh with the support of Overseas Private Investment Corporation (OPIC) of the USA. The Tk. 1.40 billion in local currency facility aimed to be utilized to finance the expansion of BRACs micro-finance program, agriculture, rural development and small and medium enterprises lending portfolios. Citigroup and Grameen Trust launched Project Dignity to help beggars: Citigroup and Grameen Trust formed partnership to reach thousands of beggars in Bangladesh and show how microcredit an also benefit the poorest of the poor. Project Dignity aims to improve living standards for more than 2,500 beggars across the country and help them to find ways to lift themselves out of poverty. The Citigroup Foundations three-year grant of US$250,000 would enable Grameen Trust to replicate and expand Grameen Banks Struggling Members program through Grameen Trusts partner network in Bangladesh Citi Micro entrepreneurship Award is a global initiative that recognizes individual micro entrepreneurs and organizations for their extraordinary efforts in gaining self-sufficiency through the innovative use of microfinance. The goals of the awards are: to promote micro entrepreneurs and micro enterprises and increase awareness about the financial service needs, and to recognize the success stories of the entrepreneurs and put the spotlight on local micro 43

entrepreneurs who are helping lift the economic fortunes of their communities, and bringing more capital into their developing economies. Education Citibank supported countrys first ever Book-reading Program for the World Literature Center and Liberation war Museum. In 2006 Citibank contributed computers to Barisal Cadet College. Citi Bangladesh in collaboration with the University of Dhakas Institute of Business Administration (IBA) held the Global Financial Crisis & Risk Management seminar that attracted more than 150 graduate and MBA students. First case competition combining students from business and IT disciples to form teams that being engaged in developing IT and software solutions for finance sector. Citi Light of the Future programs to help improve the reading/writing abilities, literary knowledge and communication skills of school going children in Bangladesh. Scholarship Program for Women Education to provide poor meritorious female students, who are in need of financial assistance with scholarships to carry on their studies, unravels their knowledge and explore their talent. Engaged in the creation of the first Asian University for Women. Citi Financial Quiz Competition. Citi Financial IT Case Competition. Sidr Relief Distribution Campaign. 'Shikor Documentary on the life and creations of Baul Shah Abdul Karim. Citibank and Shakti Foundation for Disadvantaged Women organized a special business linkage fair with the participation of many women entrepreneurs across the country. Initiated the first lending program for Shakti Foundation in the area of Microcredit. Supported the countrys first floating hospital in Bangladesh. Citibank sponsored the documentary titled 1971 made by the veteran film director Tanvir Mokammel, a research-based documentary on liberation war of Bangladesh. Art & Culture: 44

Social welfare

Citi Bangladesh organized discussion sessions on "How the Nation was Born" on March 31, 2010 and on "Amra Bijoy Dekhechi" on December 18, 2010 in Dhaka to revive the memories of the Martyrs and salute the comrades of the Liberation War. The program was organized for Citi employees for their development and learning and to embed the spirit of Liberation War. Environment: The bank organized a discussion session on the occasion of 'Citi Earth Week 2010' that focused on environmental awareness and how business units innovate green solutions.

STANDARD CHARTERED BANK

Standard Chartered Bank (SCB) has been implementing social and philanthropic programs to help disadvantaged people of the country. Healthcare, Sports, creation of social awareness, rehabilitation of distressed people to mitigate human sufferings are some of the important areas where the bank carries out its social and philanthropic activities. Health Seeing is Believing (SiB), a global initiative to help tackle avoidable blindness, is a partnership between Standard Chartered Bank and the International Agency for Prevention of Blindness (IAPB). Through SiB, Standard Chartered Bank has pledged to invest USD one million over five years in the Dhaka Urban Comprehensive Eye Care project (DUCEC) that will serve over 270,000 visually impaired people. SCB organized six seminars titled Confronting AIDS Challenge in the 21st Century: The student Community to educate over 1,000 students from six different universities in Dhaka to spread awareness about HIV/AIDS amongst the younger generation. Standard Chartered built an operation theatre and a childrens ward at Islamia Eye Hospital, organized workshops to build mass awareness in prevention of HIV/AIDS.

45

Sports In 2009, 11th SCB National School Chess Tournament saw 263 youngsters including 12 from India and 4 from Nepal participate in this annual event, in partnership with Bangladesh Chess Federation. SCB is sponsoring the Young Learners Club of the British Council for the last 10 years, the diverse contests and programs organized by YLC facilitate children not only to recognize their hidden talent but also to nurture them. 1st SCB National School Kabaddi Tournament 09 saw participation from 24 schools from across the country. SCB sponsored the National Marathon Team, to participate in The Greatest Race on Earth 08/09, a challenging marathon relay series which run across four of the worlds most exotic cities-Nairobi, Singapore, Mumbai and Hong Kong. SCB contributed to the development of youths with projects such as Standard Chartered Young Tigers School Cricket and Standard Chartered School Chess tournaments. Social welfare SCB collaborated with The United Nations World Food Program (WFP) and other partners in 2008 and 2009 for Fight Hunger: Walk the World-the largest and most visible public demonstration in support of ending child hunger worldwide. SCB joined Helen Keller International to create awareness amongst the local ethnic community about National Vitamin-A Plus Campaign-2008 and 2009. Formed the Standard Chartered-Financial Express Corporate Social Responsibility Award Trust in 2005 to promote CSR among entrepreneurs and businesses. 46

Supported Acid Survivors Foundation Ball 2008 in raising awareness to prevent acid violence in Bangladesh, Sponsored the UNAIDS Media Awards 2007; to recognize media professions for an exceptional contribution to society either through writing or reporting on HIV and AIDS in a socially responsible manner and motivating journalists to increase awareness about the deadly disease.

Disaster relief Donated Tk. 9 Lac to Red Cross & Red Crescent Societies, Bangladesh to help ease the sufferings of the flood affected people. The bank contributed US $ 50,000 to the British Business Group for the reconstruction and rehabilitation of Majhir Chor area. Art & Culture The bank has focused its efforts in the areas of history, culture and art, seeking to make a difference and surface little known events and artwork. Recent works have included publications of books such as Dhaka alias Jahangirnagar: 400 years; Street Traders of Bangladesh; Ekush; and Rare Photographs of East Bengal 1880-1940. Standard Chartered - The Daily Star Celebrating Life Contest is a platform for new talents across the country to pursue their artistic and career goals in Film, Photography & Lyrics. Education: It also encourages development of youth through education scholarships and sports sponsorships. Its efforts include Governor Scholarship in partnership with Dhaka University Economics department Alumni Association (DUEDAA), Standard Chartered Young Tigers U -16 National Cricket Tournament, Standard Chartered School Chess Tournament and Standard Chartered National School Kabaddi Tournament.

47

AL-ARAFAH ISLAMI BANK LIMITED

Environment: In order to improve the solar energy system and to support power sector of the country, the bank has established a system named "Al-Arafah Renewable Energy Scheme". The bank has already opened a branch with the solar energy facility. Health Donation to establish a Kidney Dialysis Unit in the AIBL Foundation. Published lea_let for Bangladesh Thalassaemia Hospital. Donation to Other Hospitals.

Disaster relief Donation to Prime Ministers Welfare Fund. Donated for Aila affected people.

Social welfare To reduce unemployment introduced Manpower Development and Employment Program. Established AIBL English Medium Madrasha, AIBL Library, donations to Universities.

ISLAMI BANK BANGLADESH LIMITED Islami Bank Bangladesh Limited (IBBL) operates various welfare activities directly and through Islamic Bank Foundation (IBF). Besides, IBBL has devised several special deposit and investment products for the less fortunate segment of the country as part of its CSR activities.

48

Financial Inclusion The rural poor are encouraged to make savings of at least Tk. 10 per week and allowed to maintain Mudarabah Savings Account (RDS) at IBBL. It also allows opening Mudarabah Special Savings Scheme (pension scheme) with a minimum monthly installment of only Tk. 100. Small Business Investment Scheme (SBIS) has been taken up for self-employment of ducated youths and to provide investment facilities to small businessmen and entrepreneurs without collateral security. Rural Development Scheme (RDS), to create income generating and productive self employment opportunities through extension of security-free micro investment facilities in agriculture and off-farm activities. The poor beneficiaries are also provided with health and education support under profit-free quard scheme. Micro Industries Investment Scheme (MIIS) taken to encourage establishment of micro industries in different areas of the country by the potential entrepreneurs.

Disaster relief During various natural disasters, IBBL came forward with activities for the victims directly and through donating into government funds. Education IBBL awards scholarships among the meritorious wards of the bank officials and the meritorious students of Banking & Finance Department of Dhaka University, Chittagong University and Manarat International University.

49

IDLC Finance Limited

IDLC supports SEID Trust for the development of underprivileged and disabled children: IDLC Group has recently handed over a cheque for Taka 353,000 to SEID Trust a voluntary organization working since 2003 for the underprivileged children with intellectual and multiple disabilities, including autism. On behalf of IDLC Group, Ms. Bilquis Jahan, Head of Human Resource Department, was present at the simple function held on October 13, 2011 in this regard. Ms. Dilara Sattar Mitu, founder director of SEID Trust, was also present in the event.

In our society, people with physical or intellectual disabilities are almost always neglected and humiliated, and often abused and deprived of their basic rights. In most cases, the mothers are blamed for the conditions of the children, and have to go through physical and psychological torture by their family members. SEID Trust helps these children live a nearnormal life by providing them education, therapy, healthcare, recreational facilities and vocational training, while helping their families recognize their potentials. Moreover, the mothers of these children are also trained to develop entrepreneurial skills to help them earn a 50

sustainable livelihood that will naturally have an impact on the lives of these children. SEID Trust is currently managing four centers in Dhaka with around 450 children. IDLC is proud to be a regular contributor to SEID Trust, helping them spread the benefit of their initiative, and we will continue to offer this support in the years to come. IDLC partners with LEADS to educate underprivileged primary school children: The IDLC Group is partnering Livelihood Education and Development Service (LEADS), an institution working for the education of underprivileged children enrolled in different government primary schools, in initiatives that aim to reduce dropouts and improve the overall development of these children. On behalf of the IDLC Group, Mr. Selim RF Hussain, CEO and Managing Director of IDLC Finance Limited, donated a variety of items facilitating improvement of education, health and hygiene for the children and their families at a simple function held on 20th Sept., 2011 at LEADS Dhanmandi premises. Mr. Md. Shahabullah, Secretary & Member Socio Economic Infrastructure Division, Planning Commission; Mr. ASM Kabir, Chairman, LEADS; and Mrs. Romina Dewan, Executive Director, LEADS, were also present at the program. Among the items sponsored were computers, school bags, dictionaries and other stationeries, story books and sports items for the children, and water filters and first-aid boxes for their families. In addition, a cheque for Tk. 50,000.00 was also handed over to purchase school uniforms, shoes and raincoats for the children to facilitate regular school attendance. IDLC is proud to be partnering LEADS in its efforts to improve the lives of these underprivileged children. It may also be mentioned here that IDLC had earlier arranged an interactive session with these children at its Head Office and a number of employees subsequently made personal contributions to support LEADS IDLC Finance Limited organized two blood donation programs: IDLC Finance Limited organized two blood donation programs on July 25 and July 28, 2011, at its premises in order to aid the treatment of the patients of Bangladesh Thalassaemia Hospital. We are delighted to announce that 42 bags of blood were collected during the two day campaign from both IDLC employees and also our clients.

51

Thallasaemia is a blood-related genetic disorder. Patients with this disease require regular blood transfusion to live and lead a near-normal life. The hospital, an initiative of Bangladesh Thalassaemia Samity, treats on average 15-20 patients per day by providing them with fresh blood at a very low cost. The hospital mostly collects blood through such campaigns from the general public. Inauguration of 16 crore tree plantations and 1,000 tree plantation at Dhaka University IDLC Finance Limited has recently sponsored the event Inauguration of 16 crore tree plantations and 1,000 tree plantation at Dhaka University, initiated by Mr. Musa Ibrahim, first person ever from Bangladesh to conquer the Everest.

The event formally inaugurated the project to plant 160 Million saplings of local varieties in different parts of Bangladesh, with the aim of ensuring 25% forestland in the country, while creating awareness among the people, especially the youth of Bangladesh, regarding the benefits of planting trees. The program will also discourage people from planting species like Acacia, Eucalyptus, Mangium etc. that are harmful to the environment. The event took place on Monday, July 18, 2011, at Mall Chattar, University of Dhaka. It was organized by the Everest Foundation, and assisted by United Nations Students Association Bangladesh, Green Channel and the Circle. CFO and General Manager of IDLC Finance Limited, H.M. Ziaul Hoque Khan, represented 52

the sponsor organization at the event. Honorable Vice Chancellor of the University of Dhaka, Professor AAMS Arefin Siddique, was present there as the Chief Guest. Among others, noted botanist Mr. Dwijen Sarma; renowned bird specialist Mr. Sharif Khan; noted journalist and novelist of the country Mr. Anisul Hoque; Ex-captain and selector of Bangladesh's Cricket Team, BCB Habibul Basher Suman; Professor of Department of Botany, University of Dhaka, and Caretaker-in-Charge of Arboriculture Department Dr. Mihir Lal Sen; Chief Inspector of Colleges under University of Dhaka and poet Mr. Bimal Guha; noted botanists Mr. Mrityunjoy Roy and Mr. Mokaram Hossain were also present in the event. Under IDLCs sponsorship, a total of 1,000 trees were planted in the University premises reenforcing our commitment to develop a greener environment.

Industrial Promotion and Development Company (IPDC) of Bangladesh

IPDC was established by a distinguished multilateral team of shareholders in 1981 as the first private sector financial institution (Bank or non-Bank) in Bangladesh. The founding shareholders were: The Government of the Peoples Republic of Bangladesh (GOB) The Aga Khan Fund for Economic Development (AKFED),Switzerland International Finance Corporation (IFC) an affiliate of the World Bank German Investment and Development Company (DEG), Germany Commonwealth Development Corporation (CDC) United Kingdom

In 2006, the shareholding structure was again changed by issuance of public shares. However, AKFED maintains the management control of the company holding 51% of the shares . IPDC Board of Directors has eleven members, GOB 2, AKFED 7, Independent 1, Managing Director (Ex-officio) 1 Social Contribution: IPDC Pohela Boishakh 1418 On April 14 each year Bangladeshis wake up to a new start with the rise of the century-old sun that surges in the eastern sky. This year too it was no exception and people flooded to the streets to greet the first rays of the sun that marked Noboborsho 1418 Pohela Boishakh. But what makes each year special is the mark of its beginning. Boishakh holds a special place in 53

each and every one of our hearts and minds and when it comes to celebrating, we as a nation don't hold back the least bit. When the vibe of the nationwide celebrations remained in the air over the three day weekend, IPDC of Bangladesh Limited a non banking financial institution of the country, since last 30 years affiliated with Aga Khan Fund for Economic Development (AKFED) held a beautiful get-together for its valuable clients, their families, employees and well wishers on the auspicious occasion of the Bengali New Year, Pohela Boisakh 1418 on 16th April 2011. The event was held at Club Amazon, Road-80, Gulshan-2 starting at 3:00 pm followed by amazing activities for all ages, organizing its own Boishaki Nimontron. It was a congregation of its clients and employees along with their family members; whereby an opportunity for everyone to mingle was created. Last year too IPDC arranged similar program which received accolade from all levels. Management of IPDC this year thus planned to commence the event with style and as a result organized a grand event on the occasion, on April 16, 2011. Ignoring the unbearable heat and humidity or the undying traffic in Dhaka City, nothing stopped the guests of IPDC to leave home with a smile on face, not forgetting to adorn with colors of red and white, having innate Bengali traditions, to attend the event. Once into the premises of the Club Amazon ground people were enthusiastic about all the happenings there starting from clothes, jewellery to food, showcasing the zeal and belongingness being felt while celebrating our very own New Year. At the gate remained Kanan, a traditional Dhuli who welcomed the guests to the merry making event with the beats along with his Dhuli team mates. The noise was loud enough to have been heard from all along the adjacent streets which on the other hand made passersby inquisitive about the occasion. Not to forget to mention that the decorative items used to make Club Amazon reflect the festivities were revealing about Boishakh in every loop and corners which also provided hints about what was going on within the premise. Inside the Club the look turned into a small version of a traditional village fair only to differ from were the people attending the occasion because people there were city dwellers. IPDC tried level best to provide a glimpse of what celebrating Boishakh would be like to the children who arrived with their families to the event. Their list of activities included 1. Canvas Painting 2. Parrot Fortune Teller 54

3. Picture Booth (Portrait) 4. Snakes & Ladder 5. Circus 6. Bioscope 7. Monkey Dance 8. Bangles (Churi) 9. Balloon Shooting 10. Mehendi 11. Face Painting 12. Fanush 13. Raffle Draw 14. Baul Sangeet 15. Goodie Bags The occasion had something to offer to each and everyone who attended the event. From Chotpoti , Phuchka and Khulfi to Nagor Dola (ferries wheel), the Nimontron had absolutely everything needed to get into the feel of Boishakh. IPDCs Chairman Mr. Sulaiman Ajanee, Managing Director & CEO, Ms. Humaira Azam , Deputy Managing Director , Mr. Mominul Islam along with other senior officials and local directors of the Company graced the occasion and spent quality time with the families and clientele. As the year started off with the month of Boishakh with colours, music and dances, one present that day could only hope that they let go off their past to relish the new memories built, with friends and family and IPDC felt proud to have had organized an event this grand.

Infrastructure Development Company Limited (IDCOL)

Infrastructure Development Company Limited (IDCOL) was established on 14 May 1997 by the Government of Bangladesh (GOB). The Company was licensed by Bangladesh Bank as a non-bank financial institution (NBFI) on 5 January 1998. Since its inception, IDCOL is playing a major role in bridging the financing gap for developing medium and large-scale infrastructure and renewable energy projects in Bangladesh. The company now stands as the market leader in private sector energy and infrastructure financing in Bangladesh.

55

IDCOL is managed by a seven-member independent Board of Directors comprising four senior government officials, three prominent entrepreneurs from the private sector and a full time Executive Director and Chief Executive Officer. It has a small and multi-skilled work force comprising economists, financial and market analysts, engineers, lawyers, IT experts and accountants. IDCOL's stakeholders include the government, private sector, NGOs, multilateral institutions, academics and the people of Bangladesh at large. Financing Agreement Signed for the Largest Rice Husk-based Power Generation (400 KW) and Silica Production Plant Project: A financing agreement has been signed between Infrastructure Development Company Ltd. (IDCOL) and Sustainable Energy & Agro-resource Limited (SEAL) for setting up of a 400KW rice husk gasification-based power generation and silica production plant project. Mr. Islam Sharif, Executive Director and CEO, IDCOL and Mr. Abul Fazal, Managing Director, SEAL signed the agreement on behalf of their respective organizations. So far, this is the largest rice husk gasification based power generation project in Bangladesh. A unique feature of the project is that it will not emit any carbon-di-oxide (CO2) to the atmosphere. CO2 produced from gasification process will be used in the precipitated silica plant. Once completed, its annual silica production capacity is expected to be 918 tonnes. Generated electricity will be supplied to the silica production plant and a nearby poultry hatchery, thirty irrigation pumps, a cold storage and/or few rice mills in the area.

Over 18,000 Biogas Plants constructed under NDBMP Beginning from June 2006, IDCOL has constructed more than 18,000 Biogas plants in rural areas through its Partner Organizations (POs) under National Domestic Biogas and Manure Programme (NDBMP). Beginning from June 2006, IDCOL has constructed more than 18,000 Biogas plants in rural areas through its Partner Organizations (POs) under National Domestic Biogas and Manure Programme (NDBMP). IDCOL is implementing the programme with support from GoB, SNV Netherlands and Kfw. Over 900,000 households brought under IDCOL's Solar Programme Beginning from January 2003, Infrastructure Development Company Ltd. (IDCOL) has brought more than 900,000 rural households under the solar power system. IDCOL is implementing this programme with financial assistance from the World Bank, ADB, IDB, 56

GEF, GIZ, CIDA and KfW. A total of 30 Partner Organizations are disseminating solar home systems in the remote rural areas of Bangladesh under IDCOLs renewable energy program.

IDCOL organises training on Biogas Plants Infrastructure Development Company Limited (IDCOL) has organised a three-day training, including a filed visit to Munshigonj and Sreenagar, for biogas supervisors of its 14 Construction Partner Organisations (CPOs). IDCOL has undertaken a National Domestic Biogas and Manure Programme (NDBMP) with assistance from SNV, Netherlands Development Organisation. Under this programme, a total of 60,000 domestic sized biogas plants will be installed by 2010 through 14 CPOs selected from NGOs/MFIs and private companies. Biogas plants, generally based on cow dung and poultry litter, produce gas for cooking purposes and lighting of houses. Slurry, a by-product of biogas plants is also a very good organic fertiliser and fish feed. A total of 31 biogas supervisors participated in the training. Ms. Andy Wehcamp, Regional Director, SNV attended the closing ceremony and distributed certificates among the participants. Dr. M. Fouzul Kabir Khan, Executive Director and CEO, IDCOL presided over the function. Ms. Andy Wehcamp, Regional Director, SNV Netherlands and Dr. M. Fouzul Kabir Khan, Executive Director and CEO, IDCOL are seen with the participants of a three-day biogas supervisors training organised by IDCOL.

National Housing Finance and Investments Limited (NHFIL)

National Housing Finance And Investments Limited (NHFIL) is a unique Loans and Savings institution operating in our country. It is a Public Limited Company under the Companies Act, 1994 and licensed by Bangladesh Bank under the Financial Institutions Act, 1993. We were incorporated in August 18, 1998 with authorized capital Tk. 2000 million paid up capital of Tk. 400 million. Our finance includes Housing finance, Lease finance, Deposit scheme, Car Loan. The company is doing business the vision ofTo be a role-model financial institution with corporate social responsibility contributing to social growth through maintaining the highest standard of business ethics. In doing so, company would add value to the wealth of the society. Equal Housing Lender to all, irrespective of cast, creed and sex. 57

 Offer quickest service to the satisfaction of customer with the latest technology. Create innovative products to cater to the market needs at competitive price. Form a high quality team of satisfied and motivated employees Ensure a steady return on shareholders' equity. The business and economic environments have undergone dramatic changes all over the world. Escalations of poverty and climate changes have become great hurdles for economic growth of the world. Considering these, the concept of Corporate Social Responsibility (CSR) is the demand of the current era. CSR has become a concept that frequently overlaps similar approaches, such as corporate sustainability, corporate sustainable development and corporate responsibility. To meet CSR, the sponsors of National Housing Finance and Investments Limited formed a Public Limited Company under the Companies Act, 1994 and licensed by Bangladesh Bank under the Financial Institutions Act, 1993 to meet the most important basic need of housing of urban people. National Housing is a socially responsible organization and always keen to promote the interest of customers, employees, shareholders and communities as a whole. National Housing has upheld its CSR in the following ways: National Housing has provided 4,074 Home Mortgage Loans over the years at comparatively low interest rate on reasonable terms, and for long durations. A good number of clients got waiver of interest due to their inability to pay the loan because of permanent disability or through death. Furthermore, their loans are rescheduled for reasonable durations with installments commensurate with their ability to pay their loans. National Housing is always strict on principle about not providing any lease/loan facilities for any environmentally hazardous or child labor oriented company.

JIBON BIMA CORPORATION

58

The Jiban Bima Corporation (JBC) is the lone state-owned life Insurance company in Bangladesh, which started its maiden journey on May 14,1973 with assets and liabilities worth TK. 15.70 crore (157 million) of defunt 37 life Insurance companies. Since its inception, JBC is working among the people of Bangladesh with two basic objectives: firstly, to cover the risks and raise savings habits among the people and secondly, create funds for the countrys economic development through innovative life insurance schemes. Meanwhile, the life fund of Jiban Bima Corporation has shot up to TK. 988.35 crore (9.9 billion), up to the year 2008, which was only TK. 21.83 crore (218.3 million) in 1973. JBC has paid TK. 1580.9 crore (15.81 billion) against various claims, the highest such payments in the countrys life Insurance business. The JBCs investment has reached TK. 909.1 crore (9.10 billion) from only TK. 19.7 crore (197 million) in 1973. The JBC has the largest network all over the country with 6 regional, 10 zonal, 64 sales and 365 branch offices. Insurance Coverage of Fishers Communities JBCs present engagement with fisheries sector Coastal fishermen play an important role in the socio-economic sector of Bangladesh. They contribute about 4.71% of the GDP of the country. About 500000 people of 49 upazila of the 14 coastal districts under the country mainly used to fishing. They are living in1436 fisherman villages in the coastal belt. Generally they go for fishing with trollers or engine boats in the deep sea. Fisherman uses about 50693 engine and non-engine boats in catching fish. Fishing is a high risky profession. Now-a-days the numbers of storms and tidal bores have been increased more due to Global Warming & climatic change. A large number of fishermen are dying and missing due to adverse calamities like tornado, cyclone, storms and tidal bores which are regular phenomenon in the coastal area of Bangladesh. Besides, in Bangladesh there are no modern fishing boats to catch fishes in the deep sea. The trollers or big boats which they sail for fishing most are obsolete which also cause of death many fishermen. At present, the tyranny of pirates have also been increased in the sea along with the river Meghna, that is, our fishermen are dying by several adversities along with natural calamities. Their families fall into poverty due to their death. Most often the victims families run with miseries. An introduction of a small amount life insurance policy can make a great support to this type of distressed families. At present JBCs has no special scheme for fishers communities. But JBCs has three scheme namely 1.Monthly saving scheme. 2. Anticipated monthly saving

59

scheme. 3. Poverty alleviation policy for mass people like daily labor, fisherman, housewife, garments worker, low income workers etc. UISC Entrepreneurs Training Jiban Bima Corporation (JBC) has planned to train all the Entrepreneurs of Union Information Service Center (UISC) of all union of 64 districts with the help of Access to Information (A2I). JBC has successfully completed this training program in Bhola, Jessor, Magura, Kustia and Commilla district. About 1200 Entrepreneurs of all Union Information Service Center (UISC) of Bhola, Jessor, Magura, Kustia and Commilla district were trained by the training program. JBC is going to train the entire Entrepreneurs of Khulna and Shatkhira district in 18 November 2011. Digital Bangladesh is a dream of Government. To implement this dream, Government has setup Union Information Service Center (UISC) under Access to Information (A2I). Government has panned to provide all kinds of information to the people of Bangladesh using this center. Jiban Bima Corporation (JBC) has signed the contract agreement with A2I to use the UISC for providing the information regarding insurance to the people. JBC will also collect premium and provide information to the Policy Holder using this service center.

SADHARAN BIMA CORPORATION

Sadharan Bima Corporation is only state-owned General Insurance Corporation operating under the direct control and supervision of the Ministry of Finance, Government of the Peoples Republic of Bangladesh. It emerged on 14th May, 1973 under the Insurance Corporation Act (Act No. VI) of 1973 to deal with all classes of general insurance & reinsurance business emanating in Bangladesh. Thereafter, SBC was acting as the sole insurer of general Insurance till 1984. In the year 1984 Bangladesh Government allowed insurance Companies in the private sector and to that effect promulgated the insurance Corporations (Amendment) Ordinance 1984. Sadharan Bima Corporation has a very strong financial base. It has a market share of over 20 % of the total premium income of the insurance market of Bangladesh. SBC, the largest insurance enterprise in the country, has a networth of Tk.605 crore an authorized capital of Tk.20 crore, paid up capital of Tk. 10 crore and the anticipated revenue during the current 60

financial year is approximately Tk. 417 crore. The main pillar of the SBC is insurance as well as reinsurance business. SBC is the largest non-life insurance underwriter in Bangladesh in terms of gross premium, network of offices & trained manpower. On the other hand, SBC reinsures the risks of private insurance companies operating in Bangladesh. SBC is committed to conduct all its operations in a manner that is protective of the environment, health and safety of employees, customers and the community. In fulfillment of this commitment, SBC maintains a continuing effort to adhere to the following principles: Develop its employees by encouraging empowerment and rewarding innovation. Promote an environment for learning and personal growth of its employees by providing training within the country & abroad. Endeavour to attain a position of leadership in each category of its business. SBC is committed to insuring its business to conduct in accordance with high ethical, professional, legal standards and good corporate governance practices. Aim to achieve business excellence by understanding, accepting, meeting and exceeding valued clients expectations. SBC will determine its clients needs and have a commitment to provide high quality services to meet them. SBC is entitled to 50% of public sector business. Insurance Corporation (Amendment) Act 1990 provides that fifty percent of all insurance business relating to any public property or to any risk or liability appertaining to any public property shall be placed with the SBC and the remaining fifty percent of such business may be placed with this corporation or with any other insurers in Bangladesh. But for practical reason and in agreement with the Insurance Association of Bangladesh SBC underwrites all the public sector business and 50% of that business is distributed among the existing 43 private general insurance companies equally under National Co-insurance Scheme. In respect of reinsurance, the same act provides that fifty percent of a companys reinsurance business must be placed with the Sadharan Bima Corporation and remaining fifty percent may be reinsured either with this Corporation or with any insurer in Bangladesh or abroad. At present, nearly all the companies place 100% of their reinsurance business with the SBC.

Green Delta insurance Company Ltd

61

The famous expression "of the people, by the people, for the people" has cemented a historical significance when it was uttered on a cold November in 1863 by President Abraham Lincoln at the dedication of a cemetery on the site of the Battle of Gettysburg. In modern times, these famous words can be applied towards a nation, its government, and as of recent times, towards some famous companies. With the tagline "Marches with time", Green Delta Insurance Company Ltd can be used as a prime example of such a company that has pioneered the art of moving forward with the nation, and its people. For the last 25 years, Green Delta Insurance Company Ltd (GDIC) has been a company of that sort. As the leading general insurance company in the country, alongside providing the most reliable, effective insurance products and services with maximum security at minimum costs, GDIC has, and continues to be, a company by the people, of the people, for the people. And this feat has been achieved through proper brand building. The most effective description of "brand" is that a brand is a name or symbol that is commonly known to identify a company or its products and separate them from the competition. The overall 'branding' of a company or product can also stretch to a logo, symbol, or even design features. The main benefit of branding is that customers are much more likely to remember the business. A strong brand name and logo/image helps to keep positive company image in the mind of potential as well as existing customers. GDIC, through its brand name, and its famous recognizable green and yellow icon, has been able to build that image in the minds of the people, by portraying an image of an established insurance company that has been around for long enough to be well known. In the Bangladesh insurance industry, Green Delta Insurance Company is seen as experienced in their products or services, not to mention more reliable and trustworthy. It is a well known fact that GDIC constantly follows what is known as CSR (Corporate Social Responsibility). CSR falls under Branding, and is an integral part of a company's brand name and brand building image. Sponsorships, charities, events, donations all come under the Branding umbrella.

62

Now the question may arise. Why should companies engage themselves in branding activities, such as CSR? In recent decades the concept of CSR has been widely recognized, valued, and commended. During the past decade, consumers and communities have become sensitive to business practices of companies existing in their areas or from which they buy their goods and services. It has been observed that communities would prefer and are supportive of companies they see as concerned with the general welfare of the people in their business operation than the employment opportunities it generates. Companies with good business practices have clear advantages in convincing investors. Recent studies have shown that a growing number of investors would prefer companies with strong CSR programs. They see CSR involvement as an indication of the company's long-term potentials. Moving on to the brand building activities of Green Delta Insurance Company Ltd, the company is no stranger when it comes to such issues. A challenging issue has always been how insurance brands have traditionally positioned themselves. GDIC has achieved that feat by being a company based on stability, trust and protection from risk through a set of reliable insurance products and services, and hence have historically grounded its name as a brand by being there in time of a crisis. As branding an insurance company is quite a task, GDIC has done so over the years by keeping in mind the thoughts of the customers, shareholders, stakeholders and employees. The Managing Director and CEO of the company, Mr. Nasir A. Choudhury, is an insurance icon, a legendary phenomenal figure in the insurance sector, recognized not only in his home country, but also globally. It is suffice to say that his name itself is a brand name. The company's name automatically comes to mind whenever Mr. Nasir Choudhury appears in a television talk show, or during one on one interviews. His legendary status contributes significantly towards the positive brand image of GDIC. In addition to organizing seminars, hosting events donations, charitable activities, GDIC emphasizes on CSR activities for its brand building and awareness activities. Being "ethical and socially responsible" is one of the vital core-values of the company. Rather than being simply a commercial establishment engaging in CSR activities, GDIC acts as an entity driving the nation forward. Two years ago, GDIC extended its support in the distribution of 550 wheelchairs among the war wounded Freedom Fighters in association with Rotary Club of Motijheel. This is an example of how the company comes forward the people in need. A similar activity involved the recent Day Long Free Eye Camp which GDIC organized in association with Lion's Club of Bonoful, Delta, at Matuyali, Konapara, Dhaka, where more than 3000 patients arrived for free eye care, received examinations and prescriptions, and about 200 patients underwent 63

cataract surgery. One of the crucial CSR activities involves contributing towards the betterment of the environment, and that is why, quite recently, as part of Corporate Social Responsibility, Green Delta Insurance Company Ltd. sponsored "World Water Day 2011". The two daylong event was organized by JAAGO Foundation which involved "The Great Water Challenge" where foreigners, school and university students volunteered to participate towards cleaning the Banani Lake and its surroundings and raising awareness about critical water related issues. Green Delta's Corporate Social Responsibility involves taking responsible attitude towards society that goes beyond legal requirements. GDIC once again came forward, this time, to the aid of the family of slain police constable Manjurul Islam, who was tragically killed on August 20th, 2010, while on duty at the check post in Motijheel. His widow received BDT 50,000 from the company which shows that Green Delta Insurance is a company that truly cares. To ensure the life and safety of all employees against fire, Green Delta Insurance Company Ltd organized a Fire Drill training demonstration on January 16th, 2011, at its Head Office premises. Fire is a major catastrophe that may occur anytime at the workplace, and small as well as large companies are at risk from potential hazards such as fires, explosions, chemical spills and toxic releases. To protect employees from fire and other type of unexpected emergencies, this precautionary training demonstration was applied.

National Life Insurance Co. Ltd

National Life Insurance Co. Ltd (NLI) started its journey in 1985 taking three visions on its front. The visions are: savings, security, and employment. The company is the first pioneer life insurance company in the private sector. After passing 25 years of journey, it is now a well-organised company. The company earned premium income of Tk 3537.84 million in fiscal year (FY) 2007. This was also highest the premium earnings in the year among domestic life insurance companies. It was the fourth consecutive year, the NLI earned highest the premium earnings in life business sector among the companies of the country. Life Fund of the company reached to Tk 9082.08 million this year. Credit Rating Agency of Bangladesh (CRAB) has rated NLI with Double (AA3) for strong financials, high claims paying ability, healthy and sustainable franchises. There is an obvious social responsibility in building up a life insurance company. The prime 64

concern of a life insurance company is to provide people economic security and stand by the helpless family after death of any member. NLI is performing this activity very well; also, it is playing an extraordinary role in serving customers. Without one or two incidents, NLI is paying the clients demand on time. NLI paid death-claims and maturity claims amounting to Tk 1.35 million (135 core) in the year, 2007. Now there are near about 3000 direct employees and more than 100000 indirect employees working with the company. The NLI is providing the facility of insurance to a limited number of people in the society. Such people can handle doing insurance, paying a little amount of premium monthly. The company creates a good work environment for its activities. The employees can work in their own building that is centrally air-conditioned and decorated by modern and comfortable furniture and atmosphere. To help crate a skilled workforce, the company has a particular direction though such a directive is yet to be complied with in all places. The company does not have its own training institute yet; only a small department deals with its training activities. NLI does not participate in helping financially to any institution or firm. Beside, the NLI does not support any activity, containing human welfare and health-related works. However, NLI bears the expenses related to maternity (both female employees and wife of employees) and illness of children of employees. A few years ago, publicity was carried against smoking. For this activity, the former Chairman of the Company was awarded by the government to promote environment-friendly activities, plantation was carried out different times and about 30000 saplings were planted. Generally, after the death of any client, the company pays the entire amount of insurance. To encourage customers in family planning, who departed leaving almost two children, they are given 5.0 per cent additional insurance amount. Moreover, this is done for social responsibility. The executives and officials of the NLI participated, by giving one day's salary, in helping the SIDR-affected people in 2008. Besides, Tk 2.00 million was provided to the Chief Advisor's Relief Fund. The executives and other officials of NLI always stand by the people in natural disaster-hit areas, according to their ability.

65

The social responsibility activities of the NLI are not too efficient. However, systematically, NLI is going to expand its areas of responsibility and this will be increased more and more in future. The CSR activities of the company do need to be expanded matching its growing maturity and proficiency.

MEGHNA Life Insurance Co. Ltd.

Meghna Life Insurance Co. Ltd. was accorded formal approval by the Govt. on 5th May, 1996. It was emerged as the 4th Private Sector indigenous Life Insurance after a prolonged complicated process of preparatory work under the guidance and leadership of Mr. Nizam Uddin Ahmed, the current and founder Chairman of the Company. It started carrying on the Life Insurance business since 1st June, 1996. Meghna Life has now consolidated its position on strong footing. A transparent and accountable management is here who are working relentlessly to boost up its position on a prestigious level. The authorised capital of the company is Tk. 10 crore and paid up capital at present stands at Tk. 7.5 crore. In 1996 Premium income, Life Fund & Investment was Tk. 3.30 crore, Tk. 0.04 crore & Tk. 2.59 crore respectively and in 2006 such Premium income, Life Fund & Investment increased to Tk. 148.45 crore, Tk. 201.33 crore & Tk. 130.80 crore respectively. From 1996 to 2006 Meghna Life paid 30.20 crore taka as death claim, taka 13.40 crore as survival benefit. This success has been possible due to constant guidance supervision and ceaseless efforts of the Honble Chairman and Directors and the present competent management. It soon made a mark in the Life Insurance arena by not only being the top listed among the Private sector indigenous companies, but by undertaking and successfully implementing innovative and welfare oriented Life Insurance schemes. It introduced an array of conventional Life and other Insurance products of Loko Bima, Islami Bima (Takaful) and Islami Khudra Bima (Takaful) many of which were the first in Bangladesh. For the first time Hospitalization benefit Insurance product was also introduced by Meghna Life has earned reputation in every corner of the insurance Industry. It can take pride of its prestigious 66

achievements which are moulded with transparency, accountability, impeccable working capacity, sincerity, honesty and sagacity. The company has diversified its products to match customers needs and satisfaction. Currently it provides multifarious Life Insurance products to cater to the aspirations & needs as well as religious beliefs to the clients. There is no iota of doubt that Meghna life will go forward with its new missions and visions in the days to come.

Supplementary Accidental Death Benefit (ADB) This supplementary Insurance may be taken adjoining the Endowment Assurance, Whole 9 Life Assurance, Term Assurance, Group Insurance or pension scheme. ADB is normally given as supplementary cover with the Principal Insurance policy. The advantages of taking ADB as supplementary cover with any Life Insurance policy is that if any policyholder dies due to accident the nominee of the insured will be provided with an amount equivalent to the Sum-assured within 90 days. The rate of premium is low in this Insurance as a result the Insured can take this policy as supplementary Insurance on nominal condition. Supplementary Permanent Disability and Accident Benefit (PDAB) PDAB policy can be taken for death or disability by physical hurt due to accident. In case of death the nominee of the Insured will get an additional amount equivalent to principal Sumassured. An amount equivalent to the Sum-assured is also paid to the nominee of the policyholder instantly if both hands or both legs or both the eyes or one hand and one leg are lost. In case of fully and permanent disability, the policyholder will be given 10% of the principal Sum-assured for next 10 years since the happening of accident as yearly allowance. In case of one leg or one hand and an eye are lost, the policyholder will be given 50% of the Sum-assured instantly.At the maturity, the full Sum-assured is paid. In the ninetieth decade some enthusiastic Bangladeshi professionals along with some others of similar state of mind dreamed of establishing a Life Insurance Company in order to participate in the financial activities of the country such as reduction of unemployment, alleviation of poverty and to contribute to the nation for the upliftment of the lot of common people. Eventually due to ceaseless efforts and courageous initiative of the Chairman and some other entrepreneurs, Meghna Life Insurance Co. Ltd. was emerged in 1996.

67

The main object of Meghna Life was to provide maximum financial security to a person and families by giving modern Insurance facilities. Its other objectives are to turn it into a profitable savings institution through payment of bonus at an attractive rate and enriched servicing and invest the accumulated small savings in the nation building various welfare and profitable projects.

MetLife Alico
The MetLife companies are a leading innovator and a recognized leader in protection planning and retirement and savings solutions around the world. We have established a strong presence in the Americas, Europe and Asia Pacific through organic growth, acquisitions, joint ventures and other partnerships. We are strengthening our global brand MetLife by extending core products and competencies to markets around the world an important driver of growth for the enterprise. With over 140 years of success and experience, the MetLife companies include the largest life insurers in the United States and Mexico and serve over 90 of the top one hundred FORTUNE 500 companies. MetLife, Inc. was named as Americas best-managed insurance company by Forbes magazine in January 2008 as part of its list of 400 Best Big Companies for 2008. Around the world, the MetLife companies offer life, accident, health insurance, retirement and savings and reinsurance products through agents, third-party distributors, such as banks and brokers, and direct marketing channels. We work with families, corporations and governments to provide them with solutions that offer financial guarantees . We have the experience, global resources and vision to provide financial certainties for an uncertain world. MetLife Alico, has been helping people and businesses in Bangladesh with their insurance needs since 1974. Throughout our history, we have continuously sought to nurture talent, respect local cultures and promote the diversity that characterizes the Bangladeshi society. Weve grown by understanding the needs at the heart of the community and by tailoring our extensive product offering to the unique needs of individuals, families and businesses of all sizes. 68

Today, we are one of the leading insurance companies in the country, with close to 1,000,000 insured members and over 12,000 agents who understand this market better than anyone else, so you can rest assured that nobody is better placed to find a solution which fits your needs. MetLife Alicos regional hub, serving 14 countries in Middle East, Africa and South Asia (MEASA), is located at the Dubai International Financial Center.. Unexpected events and accidents can really put your life plans on hold. Having the right cover in place can provide you with invaluable financial support if the unexpected happens. Money cant ease emotional upheaval but it can help minimise the impact and give you the resource needed to help you over a stressful time. Immediate financial help to combat 25 critical illnesses Offers you financial support when you need it the most Added as a supplement to your life insurance plan Instant cash to cover medical bills or lost income A lump sum of up to BDT 500,000 on diagnosis of any of 25 illnesses Several plans to choose from - so pick one that best meets your needs

Essential daily cash support if you or your family have to stay in hospital Daily cash allowance to cover your expenses. Helps you meet expenses not covered by your other insurance policies Payable up to 52 weeks of hospitalisation. Double your weekly benefit if you are hospitalised due to covered dreaded disease Provides timely support for your childs health and education One single premium and peace of mind for 5 years

A dedicated accident insurance product specially tailored for the Bangladesh market with a cover of up to Tk 750,000 in the event of an accidental loss of life. 69

Offers cover for permanent partial disability up to Tk. 15,00,000 and permanent total disability up to Tk. 15,00,000 due to an accident You can receive a daily in-hospital income of up to Tk.3000 for a period of up to 365 days if you are hospitalised due to an accident. You can spend this money on anything that you want - no questions asked.

After 5 years, if no claims are made, then 20% of the premium paid will be refunded as a 'No Claim Bonus' Several packages are available under this plan and you can see the benefits and rates and pick the package that suits you

A comparative study on CSR of Banking and Non-banking financial institutions. Nationalized commercial bank -2, Specialized Commercial Bank -2, Private commercial Bank - 4 (Native-2 + Foreign-2), Islamic Bank - 2, Leasing Company = 4, Insurance Company = 6 (Alico + Life Insurance)

70