Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
A Longitudinal Study of Corporate Social Responsibility
Reporting in the Banking Industry: An Empirical Evidence from
Bangladesh
Mohammad Tazul Islam* and Katsuhiko Kokubu
Purpose: The purpose of the study is to contribute to provide an account of the development of
corporate social responsibility reporting in the banking industry of Bangladesh.
Design/methodology/approach: The study uses annual report with content analysis as a method
of data coding and ISO-26000, with some country and industry specific adjustments, has been
used to as a manual for the data coding. All of the Dhaka Stock Exchange (DSE) listed banks
(Currently, 30 banks) in Bangladesh are used for data analysis for 10 years from 2004 to 2013.
Furthermore, legitimacy theory with longitudinal study has been used to provide an account of the
development of CSR reporting over the periods.
Findings: Key findings of the paper are that main motivation behind CSR reporting development
over the periods lies in a desire on the part of regulators. The study added that CSR reporting
index was measly by less than twenty percent at the beginning period of the study but it increased
linearly and marked at around sixty percent in 2013 to legitimatize the new banking process
through social perceptions, and this process was supported implicitly and explicitly through
ideological alignment with the regulators. The study set forth to emphasize on the human right and
fair operating practices by the banking industry.
Research implication/limitation: Implication includes the greater importance as concern about
the sustainable banking business through financing the sustainable projects which become more
acute within the depositors, borrowers, regulators, and public interest arenas. The study was
confined with single industry within a single country. Further research may be conducted with more
industries and different developing country setting.
Originality/Value: The study contributes to the development of CSR reporting in the developing
countries where there is a lack of published longitudinal study papers in the banking industry.
Keywords: Longitudinal Study, CSR Reporting, Banking Industry
Article Classification: Research paper
JEL code: C23, M14, G210
1.0 Introduction
Increased apprehension (KPMG 2011, Bouvain et.al. 2013; Belal and Cooper 2011) around
the globe in Corporate Social Responsibility (CSR) disclosure has been paralleled by
substantial growth in the number of external standards fashioned for business by
__________________________________________________________________________
Mohammad Tazul Islam (Doctoral Student), *Corresponding Author, Graduate School of Business
Administration , Kobe University, Japan, E-mail: tazul_ctgu08@yahoo.com, Phone: +819019036054
Professor Dr. Katsuhiko Kokubu, Graduate School of Business Administration, Kobe University, Japan, E-mail:
kokubu@kobe-u.ac.jp
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Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
governmental, non-governmental, advocacy and other types of organizations. These assorted standards and
norms are designed to support, measure, and assist in implementation and enhance accountability for corporate
performance on CSR issue.
The majority of CSR disclosure related standards produced in recent years asked organizations to voluntarily
develop and implement policies and practices and commit to specific performance standards on various CSR
disclosure issues based on social, environmental and economic performance where banking industry being no
exception. Douglas, et.al (2004) stated that financial institutions such as banks and FIs can play a „catalytic role‟
in changing the corporate behavior of other industries towards sustainability management and disclosure.
Banking industry in an economy plays a pivotal role in intermediating funds to private or even public
companies because of the fierce information asymmetry and moral hazard problem in capital markets. As banks
provide lion share of finance, they are expected to play major role in undertaking Corporate Social
Responsibility (CSR) initiatives not only by their own in-house environmental management but also through
financing the projects by following some lending principles, which are environmental and socially sustainable.
The sustainability initiatives by the banks ultimately shift to the sustainability implementation by the borrowers.
Thus, ingraining proper CSR reporting and accounting practices by the banks strengthens the CSR practices by
the companies which are financed by the banks. On the other hand, in times of the social, economic, and
environmental disaster, banks must come forward in the form of philanthropic donation, remission of loan,
easing loan conditions, etc. Providing financing facilities to poor, pro-poor, ultra-poor, sharecroppers, farmers,
micro and small enterprises, who/which are the backbone of the economic development of a country, banks tend
to augment economic welfare of a country. Notably, banking institutions should not be involved in supporting
production of any harmful product directly or exercise processes that may unsafe the society. As FIs deals with
depositors‟ investment, it is experienced more transparent and discloses information other than economic
information which is higher requirement from the stakeholders (Habib 2010). Now, financial institutions are
making increasing use of social and environmental checklists to evaluate the risks of loans to, and investments
in companies (European Union 2001). However, banking institutions are given less priority for research around
the globe as the Financial Institutions (FI) neither produce any product directly nor exercise processes that may
unsafe to the society. Thus, the role of banks in social and economic development, less attention in research
focus, scant literature in the financial sector add the essence of studying on the area.
The Banking industry in Bangladesh is very impressive for study for a number of motivational reasons. First,
the banking industry in Bangladesh performs some unique jobs for poverty reductions, philanthropic giving,
women entrepreneurship development, green banking, school banking, and specific banking products for the
farmer, share-croppers, pro-poor and ultra-poor people etc.; second, movement of CSR reporting by banks
fashioned by the central bank, Ministry of Finance (MoF), depositors, NGOs, media, and international
recognition; third, recent emphasis on the CSR reposting by the banks in Bangladesh after BB movement since
2008; forth, scant literature and study on the CSR reporting issues in the banking sector of Bangladesh.
Empirical research studies in CSR reporting in banks has gained little attention due to the financial institutions
viewing has an insignificant straight forward impact on the society. However, the perception of social and
environmental impact by the financial organizations have been changed as the financial institution is a catalyst
issue that finances the companies which directly harm the society and the environmental without which the
companies cannot or can less harm than the earlier states. Fifth, the absence of longitudinal study in the banking
sector of Bangladesh giving research reflections. CSR practice is in a particular national context (Guthrie and
Parker 1990; Owen 1992; Roberts 1991). Again, Tsang (1998) explained that it is dangerous to generalize the
results of the studies (for Guthrie and Parker, 1990) to less developed countries as the stage of economic
development is likely to be an important factor to affect CSR practices. It is mentionable that cultural and
national differences are like to affect accounting practices in general and CSR practices in particular (Perena
and Mathews, 1990; Mathew, 1993). Thus, it can be explained that CSR reporting practice is the country
specific economic, social, cultural and political factors. Finally, the civil societies in Bangladesh stimulate CSR
issues for all sectors in the recent years by producing greater societal demand and expectations of business
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Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
responsibility in the form of organizing different seminar, press release or with other initiatives (Rahman and
Jabed 2003).
From the above narration, it is cogent to set a core objective of the paper is to provide an account of the
development of corporate social responsibility reporting in the banking industry. However, the specific
objective of the paper is to elucidate the development of corporate social responsibility reporting practices 10
years of the banking industry in Bangladesh.
The study used annual report with content analysis as a method of data coding and ISO-26000, with some
country and industry specific adjustments, has been used to as a manual for the data coding. All of the Dhaka
Stock Exchange (DSE) listed banks (Currently 30 banks) in Bangladesh are used for data analysis for 10 year
from 2004 to 2013. Furthermore, legitimacy theory with longitudinal study method has been used to understand
the trend of CSR disclosure of the industry over the periods and descriptive statistics is used for data analysis.
After explaining the introduction and research theory in chapter one and two, chapter three includes literature
review followed by research methodology in chapter four. Chapter five covers data analysis and findings and
chapter six comprises conclusion
2.0 Research theory
Although CSR reporting waxed by the researchers around the globe, there has been a lack of agreed theoretical
perspective to drive systematic research (Preston, 1983; Ullman, 1985) with no description is value or theory
free (Tinker et.al., 1982). If someone think he/she is doing research without theory, actually he/she is working
with some kind of theory that may be „either little examined or little supported‟ (Gray et al. 2009)
fundamentally, „we are continually working with “theories” of one kind or another‟ (Nowlan 2001). Basically,
theory determines what kind of data should be collected and outlined which represents the strong relationship
between theory and research. In researching the social sciences, researches also prone to use description and
interpretation which is also requires unambiguous theory and approach (Bulmer, 1986).
Which theory should be used? In this aspect Kokubu et. al. (2012) suggest that they adoption of theory should
be based on the research objectives and the stage of research. Moreover, in the same study by Kokubu et al.,
(2012) note that if there are many published literature the choice of the theory should be based on them. Based
on the study objective and the socio-economic-political aspects, the study embraces legitimacy theory by
considering the society as a whole.
The core objective of the paper is to provide an account of the development of corporate social responsibility
reporting in the banking industry in Bangladesh for 10 years from 2004 to 2013. Parker (1986) and Guthrie and
Parker (1989) explained that researchers need attention to be given to the time dimension for disclosure
practices where legitimacy theory have been used. The objective of the study is supportive to the Guthrie and
Parker (1989) study to adopt organizational legitimacy when a majority of peak disclosures associated with
relevant events considered evidence of a legitimizing the organization. The major events are relevant to the
country‟s social-cultural and political factors. The major movements of CSR issues were raised at the political
crisis and caretaker government (2006-2008) after the deadly end of Khaleda (widow of Former President Ziaur
Rahman, obtaining the post of prime minister) administration (1991-96). In 2006, the first corporate governance
circular has been issued by Securities and Exchange Commission (SEC) and in 2008; the first CSR circular has
been issued by Bangladesh Bank (BB). Again, in 2011, the green banking circular has been issued by BB. The
adaptation of legitimacy theory is congruent to Guthrie and Parker (1989) so to the account of the development
of CSR reporting over the periods.
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Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
On the other hand, the adoption of legitimacy theory in a longitudinal study is supportive to earlier studies such
as Tsang (1998) and Guthrie and Parker (1989) used legitimacy theory to explain the CSR disclosure by annual
reports in Singapore and Australia case respectively. Guthrie and Parker (1989) used legitimacy theory for
corporate disclosure that is made as reaction to environmental factors in order to legitimize corporate actions.
Branco and Rodrigues, (2008) used legitimacy theory to examine social responsibility disclosure for public
visibility of banks in Portuguese. From this point of view, accounting report is seen as social, political, and
economic document that is issued to legitimize economic and political arrangement, institutions and ideologies
which contribute to the corporation‟s self interest (Guthrie and Parker, 1990). Deegan et. al. (2002) used
legitimacy theory to explain the examination of the corporate social and environmental disclosures of BHP from
1983 to1997 which is the extension of Guthrie and Parker (1989). Furthermore, Ventura and Vieira (2007) said
wholesale banks in Brazil ratify the process as a search for legitimacy, the core of the theory.
Legitimacy theory has become the dominant interpretative lens in sustainability reporting literature (Owen,
2008; Deegan, 2002; Campbell et al., 2003). Legitimacy theory explains, “social contract” between the
organization and the society is the central premise (Deegan, 2002) in which society allows the organization to
continue operations to the extent that it meets the society‟s expectoration and any kind of disparity will consider
as breach of such contract which may legitimize the organization (Lindblom, 1994; Deegan, 2002). Social
contract is defined to represent the multitude of implicit and explicit expectations that society has about how the
organization should conduct its operations (Deegan and Unerman, 2011). Moreover, they explained that, by the
social contract, legitimacy theory emphasizes that organization must consider the rights of the public at large,
not merely its investors. Moreover, it is said that organization has no inherent right to resources, rather, the right
to access resources must be earned. By legitimacy theory, if a company can‟t justify its continued operation
then in a sense the community can revoke its „contract‟ to continue its operations (Deegan, 2002; 2007).
However, community expectation represented by social contract is not static rather changing over time and an
organization will have to be congruent for survival with the changing social expectation which is dynamic
(Deegan and Unerman, 2011). Lindblom (1993) states“Legitimacy is dynamic where the community continuously evaluates corporate output, method and
goals against expectation and the legitimacy gap will fluctuate without any changes in action on the part
of the corporation.”
Legitimacy gap occur for societal expectation changes or while organization change is slower than the changing
community expectations and when previously unknown information become known to the organization (Sethi,
1977). To secure with the legitimacy gap Dowling and Pfeffer (1975) offers three ways – i) the organization can
adopt its output, goals and methods ii) attempt to alter the definition of social legitimacy through
communication and iii) attempt to become identified with symbols, values or institutions through
communication. Thus, legitimacy theory asserts that organizations continually seek to ensure that they are
perceived as operating within the bounds and norms which are not fixed and changes over time of their
respective societies in order to ensure that the company‟s activities are perceived by outside parties as being
„legitimate‟ (Deegan and Unerman, 2011). If the value systems of the organization and society are congruent
then the organization is said to be legitimate (Lindblom, 1994).
3.0 Literature Review
3.1 Review in the developed and developing world: CSR reporting is steadily increasing in the last few decades
in Europe, the USA, Australia, Japan and different international comparison have been made focusing on
similarities and dissimilarities of CSR (Guthrie and Parker, 1990; Ullman, 1985;------ 1 ). Moreover, CSR
reporting is also increasing in the developing and under developed countries. Such as, Malaysia and Singapore
(Andrews et al., 1989), Singapore (Tsang, 1998), India (Maheshwari, 1992), China (Bouvain, et.al. 2013),
Pakistan (Naeem and Welford, 2009; Sharif and Rashid, 2013), Bangladesh (Belal, 1999, 2001; Belal and
1
Roberts, C.B. 1990, 1991, 1992; Yamagami and Kokubu, 1991; UNCTC, 1992; KPMG, 2011
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Proceedings of Annual Tokyo Business Research Conference
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Cooper, 2011; Imam, 2000;-----2). However, the level of CSR reporting is lagging behind in Asia Pacific region
corresponding to other regions such as 71% companies in EU countries, 69% in American, 61% in Middle East
and Africa now report on CSR initiatives and with just less than half of companies (49%) in Asia Pacific region
now disclosing CSR data to the markets (KPMG, 2011)
The level of social and environmental disclosure in developing countries, including emerging nations such as
Malaysia, Singapore and China is very poor (Amran 2006; Sobhani et al. 2009a; Belal and Cooper 2011).
Again, the average level of CSR disclosure in Asian countries (India, South Korea, Thailand, Singapore,
Malaysia, Indonesia, and the Philippines) showed scored at 41%, which is less than half of the score for the UK
(98%) and Japan (96%) (Chambers, et.al., 2003). Furthermore, KPMG (2011) uncovered that, not all
developing and emerging markets have made gains with a number of important markets still seeing very low
levels of reporting and only 20% of Indian companies report on CSR, 37% in Taiwan and 18% in Israel.
Singapore, often a leader in adopting leading business practices, also saw comparatively low reporting rates of
43%. Hence, it is true that the mood of CSR disclosure is low in the developing countries.
Similarly to many other developing countries, Bangladesh is lagging behind in CSR disclosure which was also
considered a little by KPMG, 2011 study. There are some significant research papers in the area of social
environmental accounting in Bangladesh which were confined in textile, chemical, cement, and pharmaceutical,
and garment industries in Bangladesh (Belal, 1999, 2001; Imam, 2000; Belal and Owen, 2007;-----3). Moreover,
a few studies (e.g. Islam, 2013, Azim et.al 2011, Habib, 2010; Sobhani, et.al. 2011; Habib, et.al. 2011) were
found on banks and FIs and there is little in-depth research in the field of CSR reporting on the banking industry
in Bangladesh. Again, only one longitudinal study on two case banks for ten years is conducted by Sobhani,
et.al. 2011 in the banking sector of Bangladesh.
3.2 Review in the financial institutions: Banking industry of a country directly or indirectly works as an
intermediary role in generating money supply. By this process banks can play also pivotal role for CSR
initiatives through financing environmental friendly projects. The banks should go green and play a pro-active
role to take environmental and ecological aspects as part of their lending principle, which would force industries
to go for investment for environmental management, use of appropriate technologies and management system.
Again, from the Banks‟ perspectives, the shareholders actually provide a very insignificant part of the bank‟s
assets and funds. Rather, majority of its investments are financed by the depositors‟ funds. As a result, the risks
of losing depositors‟ savings demand stern priority in protection of depositors. This necessity requires ensuring
broad view of governance and CSR reporting. Researchers (e.g. Amin and Tareq, 2006; Jensen and Meckling,
1976; Chaudhury, 2004) illustrated that banking companies entail unique corporate governance attention
because they differ greatly from other types of firms in terms of a broader extent of claimants on the banks‟
assets and funds. The nexus between financial services and sustainable development through investment has
become evident over the years and the evidences indicate that financial industry may have a major influence on
who in the society gets access to financing; how financial services benefit the people; and how a financed
project causes environmental destruction (Raihan and Habib, 2005). In addition to the shareholders, depositors
and regulators have a straight stake in bank performance where all these three (Mitchell, et.al. 1997) enjoy
stakeholder attributes – power, legitimacy and urgency (Yamak and Suer, 2005; Griffiths, 2007). Again, the
legitimate claim on banks by the depositors by entering deposit agreement gives power and urgency by other
stakeholder (Griffiths, 2007) such as regulators, clients association, civil society, media, NGO etc. By the
necessity of CSR reporting in the financial institutions, KPMG (2011) study found that financial services,
insurance, and securities companies dominate the sample, followed by consumer markets (trade and retail), oil
& gas, electronics & computers, communications & media, automotive and utilities in the G250 companies
drawn from the Fortune Global 500 List (2010) by KPMG.
2
Belal and Owen, 2007; Islam and Deegan, 2008; and Sobhani, et al. 2009a, 2009b; Azim et.al 2011; Habib, 2010; Naeem and Welford,
2009; Islam, 2013
3
Islam and Deegan, 2008; and Sobhani, et al. 2009a, 2009b
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Proceedings of Annual Tokyo Business Research Conference
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However, the study on CSR in the financial institutions is increasing day-by-day both in developed and
developing countries due to their pioneering participation in social and environmental involvement by
financing. Day and Woodward (2009) conducted a study on the UK financial service sector and found that the
level of disclosure is lamentably low across the financial service sector with an observable tendency for
compliance to be related in size – the larger the organization, the more likelihood of compliance. Halabi, et.al.
(2006) explained that four Australian‟s banking companies are the top Australian‟s ten implement GRI and all
banks discloses environment, labor practices, and human right. Another study conducted by Bouvain, et.al.
(2013) on CSR in financial services by comparing China and East Asian banks vis-à-vis American banks and
found that brand value is positively associated with CSR particularly in Japan and South Korea, it is associate
with bank‟s appreciation for its employees while in China linked to community and East Asia‟s culture is rooted
to care for the “greater good” i.e. for the community. However in America more concern with “green” issues.
Branco and Rodrigues (2008) conducted a study on Portuguese banks on social responsibility disclosure as a
proxy for the public visibility and found that banks with a higher public visibility are expected to exhibit greater
CSR disclosure. Another study by Branco and Rodrigues (2008) in the banking sector of Kenya founds that the
banking sector involves CSR initiatives although the level of disclosure is very low. Nikolaou (2007) explained
that the sort of information disclosed by the banking sector in Greece is an ad hoc environmental accounting
method. Tsang, (1998) conducted a study on corporate social reporting in Singapore for banking, food and
beverage, and hotel industries and found that found that only 16 of the 33 companies in Singapore banking,
food and beverage, and hotel industries did not have any social responsibility disclosure indicating the few CSR
disclosure. Ventura and Vieira (2007) finds that there is an isomorphic movement in the field where the major
banks take the tests by incorporating social practices in the banks of Brazil.
On the other hand, Narwal (2007) explained that the banks in India concentrating mainly on education, balance
growth (different strata of society), health, environmental marketing and customer satisfaction as their core CSR
activities. The study also added that the Indian banking industry is to be adopted an integrated approach by
combining CSR with the ultimate customer satisfaction and irrespective of location, the nature of CSR activities
undertaken by banks found to be similar. Sharif and Rashid (2013) founds that even though reporting of CSR is
voluntary in Pakistan, the participation of Pakistani commercial banks in different CSR activities is not low.
Furthermore, the study added that the level of CSR activities performed by the banks is impressive.
3.2.1 CSR reporting in the banking sector of Bangladesh: Habib (2010) conducted a study on the effect of
corporate governance elements on CSR reporting in the private commercial banks in Bangladesh which was
confined on one year study and found that CSR reporting is rather moderate but CSR items are impressive.
Another study conducted by Habib, et.al. (2009) on 20 selected banks in Bangladesh found that banks did some
CSR reporting on voluntarily basis and the current disclosure by the selected banks, however, are not ample at
all to measure the social responsiveness of the organization. A more recent study carried out by Sobhani, et.al.
(2011) on two case banks to analyze the trend of corporate social disclosures from 2000 to 2009 and founds that
most of the trend-lines were liner in shape in Bangladesh. The study also added that there is a positive
correlation in disclosure practices between the two banks in last 10 years and explained that organizational
heterogeneity could significantly recue practice variations due to the common principles and initiatives.
Moreover, another recent study on the 12 commercial banks conducted Habib, et.al. (2011) in line with GRI
found that information on society is addressed mostly extensively with regard to extent of reporting which is
followed by decent works and labor practices and environmental issues. Furthermore, the study added that the
disclosure of product responsibility information and the information for human rights rather scare in banks‟
reporting.
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Proceedings of Annual Tokyo Business Research Conference
15 - 16 December 2014, Waseda University, Tokyo, japan, ISBN: 978-1-922069-67-2
4.0 Research methodology
4.1 Sampling and data collection: The study uses Dhaka Stock Exchange (DSE) listed banks in Bangladesh for
10 years from 2004 to 2013 and analyzes 281 annual reports. Currently, 30 banks are listed in DSE. The DSE
listed banks and number of banks analyzed over the years are as follows:
Table-1: Sample organizations analyzed
Year
DSE listed banks Sample size/
% of the
population
observations
analyzed
2013
30
30
100
2012
30
30
100
2011
30
30
100
2010
30
30
100
2009
30
30
100
2008
30
29
97
2007
29
29
100
2006
25
25
100
2005
24
24
100
2004
24
24
100
Source: Dhaka Stock Exchange (DSE), Bangladesh
In Bangladesh, the Corporate Governance (CG) compliance reporting started as mandatory regulatory
requirement by the Securities and Exchange Commission (SEC) since 2006 by a notification number
SEC/CMRRCD/2006-158/admin/02-08 on 20th February which is issued under the section CC of the SEC
Ordinance, 1989. The rational to select 2004 as a base year is to see the reflection of governance in the banking
section before and after the regulatory initiatives. Moreover, in 2008, to mainstream CSR in banks and financial
institutions in Bangladesh, Bangladesh Bank (BB) issued first voluntarily guidelines by the Department of
Offsite Supervision (DOS,) on 1st June (circular number-2). However, it is mentioned in the circular that“While adoption is voluntary and not mandatory, Bangladesh Bank shall monitor CSR adoption and CSR
performance of banks and financial institutions, as an additional dimension of their management performance.”
ISO-26000 has been used as a basis for data coding. For selecting ISO-26000, a step by step procedure has been
followed. Firstly, select ISO-26000 as a basis followed by preparing a comparison table among ISO-26000, GRI
guidelines, and Global Compact (GC). Then after, some country and industry specific coding items have been
selected with considering previous literature. The disclosure content (Table-10: Annex) then finalize with the
necessary adjustments with the ISO-26000 disclosure content (Figure-1).
Choose ISO-26000
as a basis for data
coding.
Prepare a comparison
table (Annex) with GRI
and Global Compact
(GC).
Figure-1: Method to choose disclosure content
Identify
the
country and bank
specific items for
data coding.
Finalize the ISO-26000 as a
data coding basis with the
country, and industry specific
items.
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Moreover, ISO-26000 CSR disclosure items have been used to analyze the report with additional eight issues –
CSR in vision/mission/strategic priority/code of conduct, top level commitment/message from CEO/President,
corporate governance, lending risk management, internal control and compliance/audit committee/shariah
committee, and stakeholder engagement- are incorporated under the organizational governance in support with
the country specific culture and the nature of the industry. Again, a separate chapter is added on “Green and
Sustainable Banking” with the disclosure content of ISO-26000 as BB issued mandatory Green Banking
circular (number-2, by Banking Policy and Regulatory Department, BRPD, on 2 February) in 2011. In fine, a
coding guidelines (Table-11: Annex) has been prepared based on the ISO-26000.
4.2 Content analysis: The study uses content analysis for data collection and there are different ways by which
an organization can disclose CSR initiatives such as annual report of the organization, website, notice board,
sending letter to the shareholders and different medias such as television, radio, newspaper etc. Most of the
studies have focused on the disclosures organizations make in their annual reports, either as a proxy for social
and environmental responsibility activity, or as an item of more direct interest (Milne and Adler, 1999). Again,
they asserted that the most commonly used research method in this aspect is content analysis. Content analysis
is a method of codifying the text or content of a piece of writing into various group or categories depending on
selected criteria (Weber, 1988). Thus, the essential stage of content analysis is to decide which documents are to
be used (Krippendorff, 2004). Prior studies emphasized annual report is an important document in CSR due to
high degree of credibility to the information within them (Tilt, 1994). Annual reports as tool to content analysis
is used in different studies for CSR reporting and analysis (e.g. Adams, et.al. 1995, 1998; Adams and Harte,
1998; Cowen, et.al.1987------4). A further reason for choosing annual reports is that annual report is the most
widespread and accepted document produced regularly by the companies in Bangladesh. Studies such as Belal
(1999, 2001), Habib et al. (2009) and Islam (2013) illustrated that annual reports are considered as the major
means through which information about the company is communicated.
4.5 Longitudinal Study
Due to country differences, Parker (1986) and Guthrie and Parker (1989) have identified that attention needs to
be given to the time dimension and that both disclosure practice and researchers‟ interest and focus were not
time-invariant. Guthrie and Parker (1989) conduced 100 years of study on mining/manufacturing industry in
Australia; the study compared the social reporting by US steel. Gray et.al., (1995) conducted a study on UK
companies over a period of 13 years indicating voluntary and mandatory disclosure in environmental, customer
and community discourse and found the general raise in CSR reporting in proportion with the largest companies
disclosure at the end period. Again, Unerman, J. (2000) conducted a 100-year of content analysis which
examined a broad range of Shell‟s corporate (energy and chemical company) report in UK. Tsang (1998)
conducted a study on corporate social reporting in Singapore for banking, food and beverage, and hotel
industries for ten years. The study covered 33 locally incorporated companies listed on the Stock Exchange of
Singapore and analyze 330 annual reports. Sharif and Rashid (2013) conducted a study on the commercial
banks of Pakistani for six year from 2005-2010 and the study found that the CSR activities in the commercial
banks of Pakistan is not low. On the contrary, there is only a study conducted by Sobhani, et.al. (2011)
conducted on two case banks in Bangladesh to analyze the trend of corporate social disclosures for 10 years
from 2000 to 2009 and founds that most of the trend-lines were liner in shape in Bangladesh. The study will add
the gap with longitudinal study for 10 years with considering all (30) Dhaka Stock Exchange (DSE) listed
commercial banks in Bangladesh.
4
Deegan and Rankin, 1996; Deegan and Gordon, 1996; Gray, et.al. 1995a, b; Guthrie and Parker, 1990; Hackston and Mile, 1996; Neu,
et.al. 1998; Tsang, 1998; Unerman, 2000)
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4.6 Data analysis: The study considers categorization case for the CSR disclosure as per ISO-26000. In ISO26000, there are seven categories – Organizational Governance (OG), Human Right (HR), Labor Practices
(LP), The Environment (E), Fair Operating Practices (FOP), Consumer Issue (CI), and Community Involvement
and Development (CID). In addition to the ISO-26000, a separate categorization on “Green and Sustainable
Banking” is considered. Under these eight thematic broad categories forty six items have been analyzed.
Moreover, the study constructs CSR disclosure index for the company‟s first to get the reporting index for the
industry. In this case, an item which is disclosed by the company is coded “1” and “0” if it is not disclosed or
irrelevant to the study. In other words, the study considered that if the company discloses the item of CSR
reporting (e.g. corporate governance) in the annual report, it awarded “1” and otherwise “0.” The score of the
items then added up to get ultimate score for the company. The CSR disclosure model for the CSR reporting
thus measures the Total Disclosure (TD) for the company as follows:
CCSRRI =
/
-------------equation (i)
Where, CCSRRI is the Company‟s Corporate Social Responsibility Reporting Index;
dj is the number of item(s) disclosed by a particular company; and
nj is the maximum likely disclosed item which is equal to 46.
Thus, to get a CSR disclosure score for a company, the score of the disclosed items is added then the total is
divided by the maximum likely score (46), that are multiplied by 100 to have percentage score. For example, if
a company discloses an item (1) out of 46 items, the disclosure score will be 2.17 ⁄
(approximately).
Then, an industry‟s disclosure index based on the following equation has been calculated.
IjCSRRI = ∑ CjCSRR/nj ---------equation (ii)
Where IjCSRRI is the Industry‟s CSR reporting index for jth year
CjCSRR = Sum of the Companies‟ CSR reported items in jth year
nj = Maximum likely disclosure item of j th year of the industry (here maximum likely score is number of
variables multiplied by the number of companies analyzed for a particular year)
Suppose, the sum of the companies‟ CSR reported items for the year 2013 is 810 and the maximum likely
disclosure item for the same year is 1380 (46 x 30). Thus, the industry‟s CSR reporting index for the year 2013
is 58.70% (approximately) (
⁄
). In the same manner, the years‟ industry score has been calculated
using the equation (ii).
Again, aggregate CSR disclosure have been calculated for the eight broad thematic items - Organizational
Governance (OG), Human Right (HR), Labor Practices (LP), The Environment (E), Fair Operating Practices
(FOP), Consumer Issue (CI), Community Involvement and Development (CID), and Green and Sustainable
Banking (GSB) - by first adding the items disclosed by each of the company under the same broad thematic
areas then add the total items disclosed under the same thematic variable by all of the companies followed by,
dividing the maximum likely score of each thematic variable in a particular year.
Thus, the aggregate disclosure score models for the eight broad thematic items are as follows:
OGRS =
HRRS =
LPRS =
/ --------------------------equation (iii)
/ -------------------------equation (iv)
/ -------------------------equation (iv)
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ERS =
FOPRS =
CIRS =
CIDRS =
GSBRS =
/ -------------------------equation (v)
/ -----------------------equation (vi)
/ -------------------------equation (vii)
/ -------------------------equation (viiii)
/ -------------------------equation (ix)
Here, OGRS, HRRS, LPRS, ERS, FOPRS, CIRS, CIDRS and GSBRS are the aggregate Organizational
Governance (OG), Human Right (HR), Labor Practices (LP), The Environment and environmental risk
management (E), Fair Operating Practices (FOP), Consumer Issue (CI), Community Involvement and
Development (CID), and Green and Sustainable Banking (GSB) reporting score respectively.
The aggregate disclosure score model is same as the CSR reporting index model. However, the maximum likely
possible scores are varies from the broad thematic variable to variable. The maximum likely possible scores are
found by multiplying the items (Table-7: Annex) under the thematic variables to total banks for the particular
year, for example, for year 2013 it is 30. Suppose, for the year 2013, the maximum likely reportable score of
OGRS is 180 which is found by multiplying 6 reportable items to 30 banks. Thus, in 2013, the OGRS is
86.67%
⁄
. Similarly the maximum like reportable score of HRRS, LPRS, ERS, FOPRS, CIRS,
CIDRS and GSBRS would be 240 (8x30), 150 (5x30), 120 (4x30), 150 (5x30), 150 (5x30), 240 (8x30), and 150
(5x30) and the reporting disclosure score has been calculated accordingly to the equation (iii).
5.0 Data Analysis and Findings
5.1 Industry trend in CSR reporting from 2004 to 2013
The study prepares a descriptive statistics on the trend of indicating separate chapter on CSR and /or green
banking in the Annual Report. In Bangladesh, except Bank Asia, all banks report CSR and/or green banking
report as a part of the annual report. However, Bank Asia Limited started its separate sustainability reporting
since 2012 (www.bankasia-bd.com) while Trust Bank limited started CSR reporting as a part of Annual Report
from 2013 (Trust Bank Limited, Annual Report, 2013) based on GRI guidelines. No other banks follow either
ISO or however, Dhaka Bank Limited set forth their commitment to follow ISO-26000 (Dhaka Bank Limited,
Annual Report, 2012). CSR disclosure in the banking industry of Bangladesh is increasing over the 10 years
periods. About 40% CSR disclosure has increased over the periods from 2004 to 2013. In 2004, the industry
disclosure was 18.75% which increased linearly and marked at 24.70% in 2006. Moreover, in 2008, the total
industry disclosure was 34.41% by increasing vaguely around 10% from 2006. However, the sharp leap was in
2010 from 2009 by 9.27%. Again, another big leap was in 2011 from 2010 by around 8% in the total industry
disclosure and finally, the total industry disclosure is around 59% in 2013.
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70.00%
58.70%
60.00%
54.64%
53.19%
50.00%
The sharp increasing
start point of Industry‟s
CSR disclosure
40.00%
45.14%
35.87%
34.41%
Industry trend in CSR reporting
from 2004 to 2013
30.00%
30.00%
24.70%
20.00%
21.01%
18.75%
10.00%
0.00%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Figure- 1: Industry trend in CSR disclosure from 2004 to 2013
Source: Calculation based on the coded data
The initiatives from the regulators shape largely the CSR reporting development over the periods. Firstly, in
2006, Bangladesh Securities and Exchange Commission (BSEC) issued first circular (SEC/CMRRCD/2006158/admin/02-08 on 20th February) on the corporate governance which was a regulatory requirement that
speeded up the total CSR disclosure in the industry. Secondly, Bangladesh Bank (BB) issued its first circular
(circular no.-2, by DOS on 1st June 2008) on „mainstreaming CSR in Banks and Financial Institutions)
voluntarily. Thirdly, the another strong initiative by BB on “Green Banking” by issuing a circular (number-2,
by BRPD, on 2 February) to all banks and financial institutions in 2011 where BB asked all banks and financial
institutions to report GB initiatives mandatorily and provides guidelines on how and when to implement the
CSR commitments by other circular (number-2, by BRPD, on 2 February 2011). In 2013 (April), BB open
separate department named Green Banking & CSR Department (GBCSRD) for monitoring and supervising
CSR reporting practices by the banks (GBCSRD Circular no. 1, April 13, 2013). In the circular it is mentioned
that -“It has now been decided that banks shall submit the above mentioned reports to newly established
Green Banking & CSR Department (GBCSRD) instead of BRPD and ACFID. Banks will be required to
continue to submit quarterly reports on green banking, half yearly reports on school banking within the
next 15 days of the respective quarter and half year end and CSR activities within the next 30 days of
the respective half-year end. Banks shall keep their annual reports and websites updated with the
disclosures on green banking, school banking and CSR activities/initiatives.”
Deegan (2002) explain that there could be several motivations simultaneously driving organizations to report
social and environmental information. The important one is to company with the industry requirements, or
particular code or conduct and/or as a result of certain threats to the organization‟s legitimacy. The study shows
that the industry‟s CSR reporting practices has been increased so as to comply with the industry requirement
shaped by the regulators and to protect the organization‟s legitimacy.
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The study unearths that green and sustainable banking is the highest disclosed item which is sharply increased
over the period from 2004 to 2013 at 35% to 94% followed by the organizational governance which was
slightly less than the green and sustainable banking at 33.33% in 2004 also increased remarkable over the 10
years and marked at around 87% in 2013. On the other hand, the environment and environmental risk
management is the third highest disclosed item in 2013 by scoring around 80% which was third lowest items in
2004 which was miserly by 3.13. However, from 2009, the disclosure of environmental items radically changed
which marked at around 80% in 2012. The reason behind the radical change of environmental disclosure item
from 2009 is because Bangladesh Bank issued first circular (mentioned above) to all listed banks and financial
institutions in 2011, for introducing green banking in the banking industry in line with global development and
in response to the environmental degradation. As the annual reports of 2010 published in 2011 the disclosure
score sharply increase to comply the regulatory initiatives (Figure-2). Deegan (2002) explains that the
motivation of social and environmental disclosure increased so as to forestall effort to introduce more onerous
disclosure regulation. Furthermore, when there exist a correspondence between peck of disclosure and striking
events, it means that company tries to legitimize its activities by menas of corporate social responsibility
disclosure (Guthrie and Parker 1989). The study find that the year 2006 was the striking point to sharp increase
the disclosure trend over the next years which support to legitimize the new process of organizational activities.
Moreover, increasingly lending institutions are requiring, as part of their own risk management policies,
borrowers to periodically provide various items of information about their social and environmental policies and
performance (Deegan 2002) in order to legitimize their new business process. Figure-3 represents the average
position of CSR reporting of the broad thematic items.
100.00
93.95
90.00
80.00
81.03
70.00
79.17
75.83
66.67
Labor Practices
58.67
50.00
49.33
35.00
40.67
36.50
Fair Operating practices
30.81
25.00
18.33
16.67
17.50
10.00
3.13
The Evnironment and
environmental risk management
Green and Sustainable banking
42.67
30.00
20.00
Human Right
62.67
60.00
40.00
Organizational Governance
86.67
9.17
Consumer Issue
Community Involvement and
development
0.00
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Figure-2: Trend of CSR disclosure of the broad thematic items from 2004 to 2013
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56.67
Community Involvement and development
29.44
Consumer Issue
Fair Operating practices
5.29
62.81
Green and Sustainable banking
29.15
The Evnironment and environmental risk management
48.25
Labor Practices
Human Right
Organizational Governance
0.00
6.49
65.10
10.00 20.00 30.00 40.00 50.00 60.00 70.00
Figure-3: Average disclosure of the broad thematic items from 2004 to 2013
Calculation is based on the coded data
ISO-26000 explains that an organization should have decision-making processes and structures conducive to
social responsibility are those that promote the practical use of the principles and practices is also a part of
organizational governance ( reference point 6.2.3), Based on the ISO-26000 description the study prepares subcategories of organizational governance linking to the country and industry specific considerations. These are
CSR is vision and mission state, top level commitment or message from CEO/MD, corporate governance,
lending and risk management, internal control and compliance, and stakeholder engagement . The study finds
that CG compliance disclosure was only 25% in 2004 which was sharply increased over the periods and stood
by almost all organizations disclose CG since 2007. The turnaround year for CG compliance disclosure was
2005-2006 as because Bangladesh Securities and Exchange Commission (BSEC) issued circular to mandatorily
disclose CG issue in 2006. As annual reports of 2005 published in 2006, the companies were prone to disclose
CG sharply to comply with the regulatory requirement. However, from 2006 CG reporting remained the highest
disclosed item among the reporting items under the broad thematic variable –CG – up to 2013 to respond
regulatory requirement The remarkable inclusion of CSR in company‟s theme was because Bangladesh Bank
(BB) issued its first circular (mentioned above) in 2008 as voluntarily involvement mentions CSR will be
considered as a part of management performance (Figure-4).
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120.00
60.00
100.00
100.00
96.67 96.67
96.55
Top level
commitment/Messa
ge from CEO/MD
80.00
75.00
66.67
62.50
60.00
Corporate
Governance
Human rights risk
situations
40.00
40.00
Avoidance of
complicity
56.67
Risk management
40.00
Resolving
grievances
30.00
27.59 26.67
41.38
37.50
20.00
Due diligence
50.00
88.00
80.00
56.67
CSR in vision and
mission statement
36.67
Internal control
system
25.00
16.00
Stakeholder
engagement
16.67
4.17
20.00
13.79
10.00
6.90
8.33
0.00
13.3313.33
10.34
20.00
Civil and political
rights
13.33
Economic, social
and cultural rights
10.00
Fundamental
rights at work
6.67
3.45
Discrimination and
vulnerable groups
3.33
Figure-4: Issues under the broad thematic item – Organizational Governance.
120.00
2013
2012
2011
2010
2009
2008
2007
Figure-5: Issues under the broad thematic item – Human Right.
100.00
Employment and
employment
relationships
96.55
95.83
96.67
93.33
83.33
80.00
80.00
73.33
62.50
60.00
65.52
40.00
Health and safety
at work
23.33
16.67
13.33
2013
2012
2011
2010
2009
2008
2007
2006
2005
0.00
70.00
Protection and
restoration of the
natural environment
50.00
13.33
2004
72.41
Social dialogue
46.67
16.67
70.00
60.00
63.33
40.00
20.00
86.21 86.67
83.33
79.31
80.00
Conditions of work
and social
protection
56.67
25.00
90.00
Prevention of
pollution/ In-house
environmental
management/Sustai
nable resource use
Climate change
mitigation and
adaptation
Human
development and
training in the
workplace
Figure-6: Issues under the broad thematic item- Labor practices
30.00
17.24
20.00
16.67
12.50
Environmental risk
management
(ERM) policy for
financing he project
(country specific
issue)
10.00
3.45
0.00
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
100.00
2006
2005
2004
0.00
Figure-7: Issues under the broad thematic item-the environment and environmental
risk management
Note: Figures represent disclosure in percentage
Source: Calculations based on the coded data
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40.00
100.00
93.33
80.00
30.00
26.67
25.00
20.00
20.00
16.67
15.00
16.67
Responsible
political
involvement
76.67
70.00
67.86
63.33
60.00
58.62
50.00
40.00
10.00
34.48
30.00 33.33
3.33
4.17
3.33
0.00
Promoting social
responsibility in
the sphere of
influence
50.00
40.00
45.83
Fair competition
13.33
5.00
86.67
26.67
20.00
10.00
Education and
awareness
6.67
6.67
3.45
Figure-8: Issues under the broad thematic item –Fair Operating Practices.
Community
involvement
2011
2010
2009
2008
2007
2006
2005
2004
0.00
120.00
Consumer data
protection and
privacy
Access to essential
services
28.00
12.00
Fair marketing,
information and
contractual
practices
Consumer service,
support, and dispute
resolution
2013
30.00
Anti–corruption
90.00
2012
34.48
35.00
Figure-9: Issues under the broad thematic item – Consumer Issue
120.00
Education and culture
100.00
100.00
93.33
86.21
86.67
80.00
Employment creation
and skills
development
Green-financing
79.31
76.67
66.67
62.50
60.00
Wealth and income
creation
65.52
52.00
60.00
Health
36.67
63.33
58.33
50.00
40.00
56.00
Financing to
SME/Micro/Retail/
Agriculture
20.00
Access to Finance
& Financial
inclusion
33.33
20.00
16.67
8.33
0.00
13.33
6.90
Support to
Disadvantage people
(Country specific
issue)
Figure-10: Issues under the broad thematic item – Community Investment and
Involvement
Green marketing
and online banking
40.00
Social investment
20.00
Green banking
governance
83.33
80.00
80.00
Technology
development
73.33
100.00
96.67
93.10
100.00
100.00
100.00
13.79
16.67
4.17
0.00
Figure-11: Issues under the broad thematic item – Green and Sustainable Banking
Note: Figures represent disclosure in percentage
Source: Calculations based on the coded data
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Human right is the second lowest disclosed item in the Annual Report (AR) by the banking companies in
Bangladesh (Figure-1) Under this broad thematic variable, almost no companies disclose on due diligence the
presence of human right policy, means of assessing how existing and proposed activities affect human rights,
integrating human right policy throughout the organization, and means of tracking performance over time in the
organization over the periods. Moreover, avoidance of complexity demonstrating security arrangements respect
human rights and are consistent with international norms and standards for law enforcement; training to security
personnel; complaints about the security procedure; not provide goods/service that harm human rights; not enter
into a formal partnership that commit human right abuses; inform about the social and environmental conditions
for goods/service produced; and consider making public was also almost nil. Again, almost no companies
disclose on resolving grievances to human right issues over the 9 years periods. Furthermore, from 2004 to
2007, almost no company discloses HR except on HR discrimination and vulnerable group5 issues. Reporting
on HR right discrimination and vulnerable group issue basically started from 2006 by 4% and linearly increased
over the period and marked at highest among the entire reporting item by 57% in 2013 (Table-3). The human
right reporting is not a regulatory requirement for the banking industry which is one reason for lower reporting.
In Bangladesh, there is an act “National Human Right Commission-2009” which is generic to all organizations.
Moreover, the commission did not impose to any organization about HR reporting rather voluntarily do inquire
and handle the issue if any person or organization can apply to do so (Figure-5).
Under the broad thematic variable – labor practices –the study reveals that the organizations are very prone to
disclose human resources development and training in the work place by around 96% in 2004 (Table-4). It
lightly increase and decrease over the periods and remained at around 97% in 2013. Banking industry is highly
based on the skills of the human resources. The decision making skills in lending and deposit mobilization is
highly based on knowledge and experiences of the employees working in the banks. Similarly, the performance
of the banks depends on how human resources mobilize deposit and lend to right borrowers. The reasons might
for which, banking industry emphasizes on the development of HR by training from the very beginning. The
lowest preferred disclosed item by the banking community is social dialogue which might because there were
no organizations that disclose on social dialogue up to 2008, basically it was started for reporting from 2009
miserly by 3.45% organizations and increased slightly over the periods (Table-4). In Bangladesh, there are no
trade union and/or employee association to protect the employees‟ interest in the listed commercial banks.
However, state owned banks which are not listed in Dhaka Stock Exchange (DSE) have trade union and/or
employee associations as representation to employees. This might one reason to give less priority in disclosing
on social dialogue issue (Figure-6).
The study combines prevention of pollution, in-house environmental management, and sustainable resource use
for industry specific features. However, in addition to ISO-26000, a sub-category „environmental risk
management (ERM) policy in financing the project‟ under the broad issue – the environment and environmental
risk management – has been included because of the inclusion of regulatory requirement since 2004 (BRPD,
circular-18, 2005). The study finds that the Environmental Risk Management (ERM) policy and ERM related
issues in financing the project and climate change mitigation & adaptation was marked at the highest disclosure
by around 87% in 2013 under the broad thematic variable – the environment and environmental risk
management. The inclusion of ERM policy by the banks in Bangladesh was from the very beginning (2004)
because Bangladesh Bank (BB) vide its first Banking Policy and Regulatory Department (BRPD) circular
(number-18) in December, 2005 by advising all banks to implement Credit Risk Grading (CRG) for their
borrowing clients as per Credit Risk Grading Manual (CRGM). The CRGM incorporates 10% weight on
“Regulatory Environment & Compliance” as qualitative factor while assessing the credit worthiness of the
project. Moreover, the turnaround change of the ERM policy was in 2011 as BB issues “Green Banking”
circular (mentioned above) (Figure-7).
5
Vulnerable group includes women and girls, people with disabilities, children, indigenous people, migrants and migrants workers,
people discriminated on the basis of descent including caste, others such as poor, illiterate, minority and religious group (ISO-26000).
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Fair operating practices are the lowest disclosed item in the annual report by the banking industry in
Bangladesh. The study reveals that almost no company disclose on responsible political involvement, fair
competition, promoting social responsibility in the sphere of influence, and respect for property right from 2004
to 2010. Moreover, except anti-corruption, all other items‟ reporting stated regularly from 2011. The highest
disclosed item under the broad thematic variable is anti-corruption indicating Policy and practices to counter
corruption, bribery and extortion; ensure leadership to implement anti-corruption policy; support employees and
representative to eradicate; train and raise awareness; ensure remuneration is appropriate; effective internal
control; encourage report violations; bringing violation to law; and work to oppose corruption. It basically
stared from 2007 miserly and started to increase from 2010 by scoring 10% which stood at the highest in 2013
to 30%. On the other hand, the lowest preferred disclosed item is respect for the property right by scoring
around 3% in 2013 (Table-7). The disclosure of anti-corruption is increasing over the periods because of Money
Loan Court Act, 2003, Money Laundering Prevention Act, 2012, Anti-terrorism Act, 2009, and Whistleblowing
Law-2013 (www.bb.org.bd). On the other hand, the listed commercial banks no formal trade union/collective
bargaining agent/employee association which is linked with the government political party. Furthermore, fair
competition was increasing from 2010 as the owners of listed commercial banks formed an association named
“Bangladesh Association of Banks (BAB)” which indirectly regulates the deposit and lending rate and other
banking services rates for competition. It is noted that all of the listed banks the member of the ABB. Again, the
banking industry does not procure huge raw materials like a manufacturing company does rather purchase
supplier for their regular business operation. This is one of the prime reasons for not that much discourse in
promoting CSR in the sphere of influence. Finally, commercial banks have different service products which
differ from bank to bank by their unique name like APARAJITA (A loan product for women entrepreneurs by
BRAC bank limited). Before introducing any service product to customer every bank need to have permission
from BB. Unlike other industry, the banking industry needs not to have patent of their service product from the
government which might one reason for lower disclosure on property right (Figure-8).
The study intentionally ignore ISO-26000 sub-issue 2 (6.7.4) and sub-issue 3 (6.7.5). Sub-issue 2 incorporates
consumer issue practices relating to consumers‟ health and safety and sub-issue 3 includes sustainable
consumption. Unlike manufacturing, banking industry does not involve in any production of physical substance
that might related to consumers‟ health and safety, and sustainable consumption of products, which is one
reasons not to include in considering as sub-category under the core subject – consumer issue. The study reveals
that the highest disclosed item is products and services fair marketing, information and contractual practices
marked at around 93% in 2012. However, the lowest disclosed item by the banking industry is customer
education and awareness. Again, the disclosure of customer data protection and privacy is basically started from
2008 by 10.34% which increased over the periods and marked at around 50% in 2013 (Figure-9). However, BB
issued guidelines on Information & Communication Technology for Scheduled Banks and Financial Institutions
on October 2005 (www.bb.org.bd) which explains “Information and information technology systems are essential assets of the banks and as well as for their
customers and stakeholders. Information assets are critical to the services provided by the banks to their
customers. Protection and maintenance of these assets are critical to the organizations‟ sustainability. Banks must
take the responsibility of protecting the information from unauthorized access, modification, disclosure and
destruction to protect customers‟ interest”
The BB initiative by BB is one reason in increasing the disclosure on customer data protection and privacy in
the annual report by the banking institutions.
Community involvement and development is the highest disclosed item by the banking industry in Bangladesh
over the periods. Support to disadvantage people is included under the broad thematic variable in addition to the
ISO-26000 issues as the rigorous involvement by the banks in community involvement and development in
Bangladesh. The study reveals that the community investment indicating the banking institutions‟ social
investments include projects to education, training, culture, healthcare, income generation, infrastructure
development, and access to information; philanthropic (e.g. grants, volunteering and donation), prioritize
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projects that viable in the long-run and contribute sustainable development. The disclosure of community
investment is the highest disclosed item under the broad thematic variable over the periods since 2004. In
Bangladesh, banking industry is prone to provide philanthropic donation to school/college/university/madasa,
hospital, health support to poor and ill people, charitable organizations (e.g. Anjuman Mofidul Islam is
charitable organization for unanimous death people), disaster affected people during the food & cyclone.
Banking industry in Bangladesh was doing the community investment activities since 2004 voluntarily.
Geographically, Bangladesh is located in disadvantaged position by climate and flood affects every year to the
low lands which is one encouraging reason in community investment by the organizations. Again, more than
85% organizations disclose support to disadvantage people since 2007. Disadvantaged people includes flood
affected people, cold stricken people, autistic babies, senior citizens, and other poor people. Banks provides
foods, clothes and equipment to erect home to the homeless people. Moreover, banks provide warm clothes to
the poor people in the cold hit areas in the winter seasons. Moreover, the disclosure of education and culture
also approximately similar to supporting disadvantage people. In Bangladesh, many organizations provide
scholarship to poor and meritorious students for their higher studies, which is one reason to leap-up the
disclosure score. Again, the disclosure on health also increased sharply over the periods since 2004. Banking
community involved on health by giving either equipment or vehicle or philanthropic giving to hospitals.
Again, a few banks run their own hospital by offering less price or discount to the visiting people. In
Bangladesh, the banking industry provides training to the farmers (such as NCC bank provides training to the
Maize farmer at north Bengal, Bangladesh), craftsman for SME loan, women entrepreneurs, and specific service
desk to provide services to women entrepreneurs etc (Figure-10).
Deegan (2002) explained that to comply with community expectations, perhaps reflective of a view that
compliance with the “community license to operate” (or “social contract”) is dependent upon providing certain
accounts of social and environmental performance. To legitimize the new banking process through social
perceptions which is supported implicitly and explicitly through ideological alignment with the regulators was
the sharp disclosure of the community involvement and development.
In addition to ISO-26000 disclosure content a broad thematic variable (Green and Sustainable Banking) has
been added in considering the country and industry specific issue. Under the thematic/core issue five sub-issues
have been categorized, these are green banking governance, green-financing, green marketing and online
banking, financing to SME/Micro/Retail/Agriculture, and access to finance & financial inclusion. A coding
terminology has been prepared (Annex) for coding the annual report.
Green Banking refers to the banking business conducted in selected area and manner that helps the overall
reduction of external carbon emission and internal carbon footprint (Bahl 2012). Moreover, sustainable
banking is using money with conscious thought about its environmental, cultural and social impacts, and with
the support of savers and investors who want to make a difference, by meeting present day needs without
compromising those of future generations (Triods Bank, www.triods.com/en).
Green and sustainable banking as a reporting item is started from 2011 as a regulatory requirement by a circular
(mentioned above). Green banking circular (re-emphasized by GBCSRD, circular number-04, August 11, 2013)
includes three phases. Phase-I explains policy formulation and governance, incorporation of environmental risk
in Credit Risk Management (CRM), initiating in-house environmental management, introduce green finance,
creation of climate risk fund, introduce green marketing and supporting employee training, consumer awareness
and green event. Phase-I time limit for the action to be taken by BB was December 31, 2011. Phase-II includes
sector specific environment policies, green strategic planning, setting-up green branches, improved in-house
environment management, formulation of financial institution specific environmental risk management plan and
guidelines, and rigorous programs to educate clients. Phase-III incorporates designing and introducing
innovative products, GR reporting in standard format with external verification.
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The study came across that green banking governance was nil until 2009. Green banking governance was
basically started from 2010 miserly by around 17% organizations and increased sharply in 2011 so as to comply
with BB instruction by a circular (mentioned above) to form a Green Governance Committee or Board in the
banks as required by the Bangladesh Bank. However, the highest disclosed item under the thematic variable –
green and sustainable banking is green marking and on-line banking. Green marketing and on-line marketing
indicates - (circular no 2, by BRPD, on 2 February 2011)
“Green marketing is the marketing of products that are presumed to be environmentally safe. Green marketing
incorporates a broad range of activities, including product modification, changes to the production process,
packaging changes, as well as modifying advertising. It refers to the process of selling products and/or services
based on their environmental benefits. Such a product or service may be environmentally friendly in itself or
produced and/or packaged in an environmentally friendly way. On the other hand, online banking is the practice
of making bank transactions or paying bills via the Internet on a secure website of the respective bank that allows
the customers to make deposits, withdrawals and pay bills.”
Green marketing and on-line banking reporting score was 62.5% in 2004 and increased over the periods which
marked at about 96% in 2012 followed by the financing to SME/Micro/Retail/Agriculture and green financing.
Financing to SME/Micro/Retail/Agriculture was 58.33% in 2004 which increased over the periods and marked
the highest in 2013 by all banks. On the other hand, green financing indicates financing to eco friendly business
activities and energy efficient industries. Environmental infrastructure such as renewable energy project, clean
water supply project, wastewater treatment plant, solid & hazardous waste disposal plant, bio-gas plant, biofertilizer plant should be encouraged and financed by the banks (circular no 2, by BRPD, on 2 February 2011).
The green financing concept was not popular until 2010. It was miserly 4.17% in 2004 and increased negligibly
up to 2009 to around 23%. However, the disclosure sharply changed in 2010 and scored at around 63% (Figure11).
6.0 Conclusion
Legitimacy theory asserts that organizations continually seek to ensure that they are perceived as operating
within the bounds and norms of their respective societies, i.e. they attempts to ensure that their activities are
perceive by outsider parties as being „legitimate‟ (Deegan and Unerman, 2011). In support to the legitimacy
theory, the study finds that the banking industry voluntarily responds to the requirement of civil society by
doing initiatives in the consumer issues, and community involvement and development from the very beginning
since 2004. However, the regulatory requirement (by Securities and Exchange Commission, Bangladesh)
speeded up the OG disclosure since 2006. Moreover, Bangladesh Bank (BB) initiatives on „mainstreaming
CSR‟ in 2008 by issuing a circular to all banks and financial institutions also boosted up the total CSR
reporting. A separate regulatory requirement by BB on „green banking‟ in 2011 changes the total face of CSR
reporting remarkably. As green banking requires incorporating the environmental risk management (ERM)
policy the disclosure on the „environment and environmental risk management‟ also increased in support to
being legitimate. Thus, the study is analogous to the application of legitimacy theory in support to enhance CSR
disclosure in the banking industry of Bangladesh, which clearly shows the variation or increase CSR reporting
is the response of society‟s changing expectation of corporate behavior. Corporate social responsibility
reporting or sustainability reporting or social and environmental reporting gaining magnitude in the developing,
developed and even least developed countries. As a developing country, Bangladesh has also got-a-hold its
weights by corporate social and sustainability role by the banking companies. The corporate social
responsibility reporting or sustainability reporting or social and environmental reporting in the banking
companies of Bangladesh are notably first-rate in 2013. The study conducted on the Dhaka Stock Exchange
(DSE) list banks over 10 years from 2004 to 2013. The study bestowed intense focus on the echelon of
corporate social responsibility reporting of the banking companies by which stakeholder can understand the
level of corporate social responsibility initiatives by the banking industry in Bangladesh. The study leads the
researches to foresee the research way; investors to investment decision; employees, suppliers and communities
to engagement; regulators to look for monitoring and supervision in the Japanese industries. Among the
disclosed broad thematic items, banking companies disclosed highest in the organizational governance
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categories and lowest in the fair operating practices. The study puts set-forth to emphasize on the human right
issues and fair operating practices, the lowest disclosed item among all of the broad thematic items of the data
analysis by the banking industries. Further study can be conducted on the comparison of the CSR disclosure
with other industries to foresee the disclosure position in Bangladesh. Moreover, a comparative study with other
developing countries can be conducted to foresee the country‟s position.
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8.0 Appendices
Table- 10: List of disclosure items for the study by ISO-26000 with the country and industry context
Core subject: Organizational governance 6.2
Issue-1: CSR in vision and mission statement
Issue-2: Top level commitment/Message from CEO/MD
Issue-3: Corporate Governance
Issue-4: Lending Risk management
Issue-5: Internal control and compliance/shariah committee
Issue-6: Stakeholder engagement
Core subject: Human rights 6.3
Issue 1: Due diligence 6.3.3
Issue 2: Human rights risk situations 6.3.4
Issue 3: Avoidance of complicity 6.3.5
Issue 4: Resolving grievances 6.3.6
Issue 5: Discrimination and vulnerable groups 6.3.7
Issue 6: Civil and political rights 6.3.8
Issue 7: Economic, social and cultural rights 6.3.9
Issue 8: Fundamental rights at work 6.3.10
Core subject: Labor Practices 6.4
Issue 1: Employment and employment relationships 6.4.3
Issue 2: Conditions of work and social protection 6.4.4
Issue 3: Social dialogue 6.4.5
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Issue 4: Health and safety at work 6.4.6
Issue 5: Human development and training in the workplace 6.5
Core subject: The environment and environmental risk management 6.5.3
Issue 1: Prevention of pollution6.5.4/ Sustainable resource use 6.5.5 /In-house environmental management
Issue 2: Climate change mitigation and adaptation 6.5.6
Issue 3: Protection and restoration of the natural environment 6.5.7
Issue 4: Environmental risk management (ERM) policy for financing the project
Core subject: Fair operating practices 6.6
Issue 1: Anti–corruption 6.6.3
Issue 2: Responsible political involvement 6.6.4
Issue 3: Fair competition 6.6.5
Issue 4: Promoting social responsibility in the sphere of influence 6.6.6
Issue 5: Respect for property rights 6.6.7
Core subject: Consumer issues 6.7
Issue 1: Fair marketing, information and contractual practices 6.7.3
Issue 2: Consumer service, support, and dispute resolution 6.7.6
Issue 3: Consumer data protection and privacy 6.7.7
Issue 4: Access to essential services 6.7.8
Issue 6: Education and awareness 6.7.9
Core subject: Community involvement and development 6.8
Issue 1: Community involvement 6.8.3
Issue 2: Education and culture 6.8.4
Issue 3: Employment creation and skills development 6.8.5
Issue 4: Technology development 6.8.6
Issue 5: Wealth and income creation 6.8.7
Issue 6: Health 6.8.8
Issue 7: Social investment 6.8.9
Issue 8: Support to disadvantaged people
Core subject: Green and Sustainable Banking
Issue 1: Green banking governance
Issue 2: Green-financing
Issue 3: Green marketing and online banking
Issue 4: Financing to SME/Micro/Retail/Agriculture
Issue 5: Access to Finance and Financial Inclusion
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Table-11: Coding terms for the study as per ISO-26000
Core subject: Organizational governance 6.2
CSR in vision, mission, core value statement, and/or strategic priority; top level commitment/message from CEO/MD; Corporate Governance;
compliance/commitment with external initiatives; lending and risk management; internal control and compliance/Shariah Committee; stakeholder
engagement
Core subject: Human rights 6.3
Issue 1: Due diligence 6.3.3
Includes human right policy, means of assessing how existing and proposed activities affect human rights, integrating human right policy
throughout the organization, and means of tracking performance over time
Issue 2: Human rights risk situations 6.3.4
Specific care in circumstances and environments where organizations are more likely to face challenges and dilemmas relating to human rights
and the risk of human rights abuse may be exacerbated such as political instability; poverty, drought, natural disasters; extractive activities that
affect natural resources; proximity of operation of indigenous people, can affect children; value chain; extensive measure to secure premises.
Issue 3: Avoidance of complicity 6.3.5
Security arrangements respect human rights and are consistent with international norms and standards for law enforcement; training to security
personnel; complaints about the security procedure; not provide goods/service that harm human rights; not enter into a formal partnership that
commit human right abuses; inform about the social and environmental conditions for goods/service produced; consider making public.
Issue 4: Resolving grievances 6.3.6
Human rights grievance resolving mechanism
Issue 5: Discrimination and vulnerable groups 6.3.7
Action to ensure equal opportunity and respect for all, not discrimination to stakeholders, examine its own operation and within its sphere of
influence about discrimination, raising awareness about human rights, redressing past discrimination, take positive and conducive view of
diversity among people.
Note: Vulnerable group includes women and girls, people with disabilities, children, indigenous people, migrants and migrants workers, people
discriminated on the basis of descent including caste, others such as poor, illiterate, minority and religious group.
Issue 6: Civil and political rights 6.3.8
Respect civil and political rights that include life of individuals; freedom of opinion and expression; freedom of peaceful assembly/association;
freedom to seek receive and impart information and ideas through any means regardless boarder.
Issue 7: Economic, social and cultural rights 6.3.9
Support/facilitate education and life-long learning; joining organization/governmental institutions supporting respect; ways to adapt
goods/service to purchasing poor people; making facilities/resources available to occasional cultural activities.
Issue 8: Fundamental rights at work 6.3.10
Freedom of association and effective collective bargaining; elimination of forced/compulsory labor; abolition of child labor; elimination of
discrimination in respect of employment and occupation.
Core subject: Labor Practices 6.4
Issue 1: Employment and employment relationships 6.4.3
Confidence in work performed, not seek to avoid obligation by law, active workforce planning, provide reasonable notice/time that affect
employment, ensure equal opportunities, eliminate arbitrary/discriminator dismissal practices, protect employee data and privacy, contracted or
sub-contracted organization‟s has decent working condition, no benefit from unfair/exploitative or abusive labor practices and promotion &
advancement of nations of host country of multinational company.
Issue 2: Conditions of work and social protection 6.4.4
Condition of work with national laws and regulations consistent with international standard, collective agreement, observe minimum provision of
ILO, provide decent condition of work, provide equal pay for work, pay direct to the workers, respect to normal working hour, compensate
overtime works, observe national/religious traditions and customs.
Note: Condition of works includes wages and other forms of compensation, working time, rest periods, holidays, disciplinary and dismissal
practices, maternity and welfare maters; and social protection includes all legal guarantees and organizational policies and practices to mitigate
the reduction or loss of incase in injury, illness, maternity, parenthood, old age, unemployment, disability or any other hardship.
Issue 3: Social dialogue 6.4.5
Collective bargaining structure, rights to join/form CB organization, reasonable notice to the government for major employment impact, workers
representative with access to authorized decision maker, refrain from encouraging government to restrict social dialogue.
Note: Social dialogue includes all types of negotiation, consultation or exchange of information between or among representatives of
governments, employers and workers, or matters of common interest relating to economic and social concern.
Issue 4: Health and safety at work 6.4.6
Health, safety and working environment policy; understand and apply principles of health and safety management; analyze and control the health
and safety risk; communicate information, provide safety equipment; record and investigate all health and safety incidents; address Occupational
Safety and Health (OSH); equal health and safety to part-time/temporary/subcontracted workers; eliminate psychosocial hazard; join labormanagement health and safety committee
Issue 5: Human development and training in the workplace 6.5
Skills development, training and apprenticeship, career advancement, help to transition to new employment through skills recognition, respect
family responsibilities, joint labor-management programs.
Core subject: The environment environmental risk management 6.5.3
Issue 1: Prevention of pollution/In-house environmental management/sustainable resource use 6.5.4/6.5.5
Emission to air, discharge to water, waste, release to toxic and hazardous chemicals, other identifiable forms; Energy efficiency programs, water
conservation and access to water, efficiency in the use of materials
Issue 2: Climate change mitigation and adaptation 6.5.6
Source, measure, record and report GHG emission; programs to reduce GHG emissions, reduce to use of fossil fuels
Consider opportunities for emission trading under UN Framework Convention on Climate Change (UNFCCC), future global and local projects to
mitigate climate risk; and identify opportunities to avoid/minimize climate change risk.
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Issue 3: Protection and restoration of the natural environment 6.5.7
Valuing, protecting and restoring ecosystem service; valuing and protecting biodiversity; using land and natural resources sustainably; advancing
environmentally sound urban and rural development.
Issue-4: Environmental risk management (ERM) policy for financing the project (country specific issue)
Core subject: Fair operating practices 6.6
Issue 1: Anti–corruption 6.6.3
Policy and practices to counter corruption, bribery and extortion; ensure leadership to implement anti-corruption policy; support employees and
representative to eradicate; train and raise awareness; ensure remuneration is appropriate; effective internal control; encourage report violations;
bringing violation to law; work to oppose corruption.
Issue 2: Responsible political involvement 6.6.4
Train and raise awareness among employees and representatives; transparent policy in lobbying, political contribution and involvement; policies
and guidelines to manage people to retain on the organization behalf; avoid political contribution that in favor of a specific cause; prohibit
activities in misinformation, misrepresentation, threat or compulsion.
Issue 3: Fair competition 6.6.5
Manner consistent with competition laws and regulations; procedure and other safeguard to prevent anti-competitive behavior; promote
employee awareness; support anti-trust and anti-dumping practices; encourage public policy; not take advantage in social condition.
Issue 4: Promoting social responsibility in the sphere of influence 6.6.6
Influence other organizations through the exercise of its procure and purchasing decisions; consider potential impact/unintended consequences of
it procurement decision on other organization
Issue 5: Respect for property rights 6.6.7
Policy and practices to promote respect property rights and traditional knowledge; lawful title permitting use or disposal; not engage in activities
that violate; pay fair compensation; consider the expectations of society, human rights.
Core subject: Consumer issues 6.7
Issue 1: Fair marketing, information and contractual practices 6.7.3
Not engage in deceptive, misleading, fraudulent or unfair information; clearly identify advertising and marketing; openly disclose total prices
and taxes, terms and conditions; substantiate claims or assertions; not use text/image that perpetuate stereotyping; not unfairly target vulnerable
groups; language in the point of sale; contracts in written and clear.
Issue 2: Consumer service, support, and dispute resolution 6.7.6
Warranties and guarantees, technical support regarding use, provision for return, repair and maintenance; measures to prevent, review, improve
practice to response to complaints; dispute resolution (ISO-1001,1002,1003) and redress mechanism.
Issue 3: Consumer data protection and privacy 6.7.7
Rigorous system for obtaining, using and protecting data
Issue 4: Access to essential services 6.7.8
Contribute to the fulfillment of rights of essential services such as electricity, gas, water, waste water services, drainage, sewerage and telephone
Issue 5: Education and awareness
Education and awareness initiatives to enable consumers to be well informed, conscious of their rights and responsibilities, assume an active role
and be able to knowledgeable purchasing decision and consumption, skills in assessing products and services, and making comparison.
Note: consumer health and safety; and sustainable consumption are not considered as banking industry does not directly involved in
producing physical product.
Core subject: Community involvement and development 6.8
Issue 1: Community involvement 6.8.3
Consult representative community groups in determining priorities for social investment and community development activities; developments
that can affect them; participate local association; maintain transparent relationship with local government officials and political representatives;
contribute to policy formulation.
Issue 2: Education and culture 6.8.4
Promote and support education at all levels, learning opportunities to vulnerable/discriminate group, encourage the enrollment of children
education, facilitating human rights to education and awareness rising; conserve and protect cultural heritage, promote traditional knowledge and
technologies.
Issue 3: Employment creation and skills development 6.8.5
Impact of investment decision on employment creation; consider the impact of technology choice and outsourcing; participating local and
national skill development programs; attention to vulnerable group in employment and capacity building; framework condition to create
employment.
Issue 4: Technology development 6.8.6
Contributing to the development of low-cost, economically feasible with developing potential local and traditional knowledge and skills
technologies; engaging in partnership with local organization such as universities; adopt practices that allow technology transfer and diffuse.
Issue 5: Wealth and income creation 6.8.7
Contribute positively to wealth and income creation through entrepreneurship programs, development of local suppliers, employment of local
community members, empowering women, meeting tax obligation, value chain, compliance with laws and regulations to alleviate poverty.
Issue 6: Health 6.8.8
Minimize or eliminate negative health impact of any production processes, product/services; contributing to access to medicine and vaccination;
raising awareness HIV/AIDS, cancer, heart disease malaria, tuberculosis, and obesity; access to health care services, clean water and sanitation.
Issue 7: Social investment 6.8.9
Social investments include projects to education, training, culture, healthcare, income generation, infrastructure development, and access to
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information; philanthropic (e.g. grants, volunteering and donation), prioritize projects that viable in the long-run and contribute sustainable
development.
Issue 8: Support to disadvantage people (country specific issue)
Support to disadvantages such as providing warm clothes to cold stricken people; support to flood, cyclone, and other natural affected people;
and support to autistic babies
Note: Issue 8-support to disadvantage people is additionally included in the community involvement and development area as banking industry provides
support to disadvantage people round the year.
Core subject: Green and Sustainable Banking (country and industry specific issue)
Green and sustainable banking is, in addition to the ISO-26000 guideline, considered in analyzing CSR reporting. Currently, green and sustainable
banking activities are supervised by the Central Bank of Bangladesh.
Core subject: Green and Sustainable Banking
Issue 1: Green banking governance
Green banking unit/department/chair/committee; green banking policy
Issue 2: Green-financing
Financing to ETP, bio-gas plant, solar panel, Hybrid Hoffman Kiln (HHK)
Issue 3: Green marketing and online banking
Web or SMS marketing of the product or services; on-line banking services; mobile banking; SMS banking
Issue 4: Financing to SME/Micro/Retail/Agriculture
Issue 5: Access to Finance & Financial inclusion
Providing financial/banking facilities to poor, ultra-poor, sharecropper, freedom fighter, senior citizen, farmers etc.; school banking;
Table-12: Comparison Table among ISO-26000, GRI guidelines, and Global Compact (GC)
ISO-26000
Core subject: Organizational governance 6.2
Issue-1: CSR in vision and mission statement
Issue-2: Top level commitment/Message from CEO/MD
Issue-3: Corporate Governance
Issue-4: Lending Risk management
Issue-5: Internal control and compliance/shariah committee
Issue-6: Stakeholder engagement
Core subject: Human rights 6.3
GRI G4
G4-LA12
Issue 1: Due diligence 6.3.3
Issue 2: Human rights risk situations 6.3.4
Issue 3: Avoidance of complicity 6.3.5
G4-HR1, G4-HR4,5,6,9,10,11
G4-HR4, 5,6,7,8,9,10,11
G4-EN32,G4-EN33,G4-LA14,G4LA15,G4-HR1, 2,4,5,6,7,9,10,G4-SO9,
G4-SO10
G4-EN34, G4-LA16,G4-HR3,G4HR8,G4-HR12,G4-SO11
G4-EC5, G4-LA12-13, G4-HR3,5,8
G4-HR4, 8
G4-EC7, 8; G4-SO1, 2
G4-EC5, G4-LA12, 13; G4-HR3, 4,5,6
Issue 4: Resolving grievances 6.3.6
Issue 5: Discrimination and vulnerable groups 6.3.7
Issue 6: Civil and political rights 6.3.8
Issue 7: Economic, social and cultural rights 6.3.9
Issue 8: Fundamental rights at work 6.3.10
Core subject: Labor Practices 6.4
Issue 1: Employment and employment relationships 6.4.3
Issue 2: Conditions of work and social protection 6.4.4
Issue 3: Social dialogue 6.4.5
Issue 4: Health and safety at work 6.4.6
Issue 5: Human development and training in the workplace 6.5
Core subject: The environment and environmental risk
management 6.5.3
Issue 1: Prevention of pollution6.5.4/ Sustainable resource use 6.5.5
/In-house environmental management
Issue 2: Climate change mitigation and adaptation 6.5.6
Issue 3: Protection and restoration of the natural environment 6.5.7
Issue 4: Environmental risk management (ERM) policy for financing
the project
Core subject: Fair operating practices 6.6
Issue 1: Anti–corruption 6.6.3
Issue 2: Responsible political involvement 6.6.4
Issue 3: Fair competition 6.6.5
Global Compact (GC)
Principle-1,2
Principle 3,4,5,6
G4-EC5,6,9; G4-HR3; G4LA1,4,12,13,14,15
G4-EC5, G4-LA2,3,13
G4-LA4, G4-HR4
G4-LA5,6,7,8
G4-LA9,10,11
Principle 7,8,9
G4-EN20,21,22,23,24,25,26,27,28; G4SO1
G4-EC2,6,7,15,16,17,18,19,20,27
G4-EN11,12,13,14,27
Country and industry specific Item
G4-SO3,4,5
G4-SO6
G4-SO7
Principle-10
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Issue 4: Promoting social responsibility in the sphere of influence 6.6.6
Issue 5: Respect for property rights 6.6.7
Core subject: Consumer issues 6.7
Issue 1: Fair marketing, information and contractual practices 6.7.3
Issue 2: Consumer service, support, and dispute resolution 6.7.6
Issue 3: Consumer data protection and privacy 6.7.7
Issue 4: Access to essential services 6.7.8
Issue 5: Education and awareness 6.7.9
Core subject: Community involvement and development 6.8
Issue 1: Community involvement 6.8.3
Issue 2: Education and culture 6.8.4
Issue 3: Employment creation and skills development 6.8.5
Issue 4: Technology development 6.8.6
Issue 5: Wealth and income creation 6.8.7
Issue 6: Health 6.8.8
Issue 7: Social investment 6.8.9
Issue 8: Support to disadvantaged people
Core subject: Green and Sustainable Banking
Issue 1: Green banking governance
Issue 2: Green-financing
Issue 3: Green marketing and online banking
Issue 4: Financing to SME/Micro/Retail/Agriculture
Issue 5: Access to Finance and Financial Inclusion
G4-EC8, 9;G4-EN30,32,33;G4LA14,15;G4-HR1,4,5,6,7,10,11; G4SO4, 9,10
G4-EC8, G4-HR8,G4-SO7
G4-PR3, 4,7
G4-PR5,9
G4-PR8
G4-EC8
G4-PR3,4
G4-EC1,G4-HR8
G4-HR5
G4-EC6,7,8; G4-LA10
----G4-EC1,3,6,7,8,9; G4-LA2
G4-LA6,7;G4-PR1,2
G4-EC1,7,8
Country and industry specific Item
Country and industry specific Item
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