Experts suggest concerted CSR effort for big impact

From right, SK Sur Chowdhury, deputy governor of Bangladesh Bank; Rokia A Rahman, president of MCCI; Hasibur Rahman, executive director of MRDI; Moazzem Hossain, editor of The Financial Express; Prof Wahiduddin Mahmud, former caretaker government adviser; Shaheen Anam, executive director of Manusher Jonno Foundation; and Anis A Khan, CEO of Mutual Trust Bank, pose with a study on the impact of CSR activities, at Ruposhi Bangla Hotel in Dhaka yesterday.Photo: STAR

The government should pool the money companies set aside for corporate social responsibility (CSR) activities for enhanced impact, speakers said yesterday.
Spending for social causes by companies is largely sporadic, they said, while calling for a credible platform with which the businesses feel comfortable putting in their money.
The comments came at the presentation of a study, conducted by the non-governmental organisations Manusher Jonno Foundation (MJF) and Management and Resources Development Initiative (MRDI), on the impact of CSR activities in Bangladesh.
The event, held at the capital's Ruposhi Bangla Hotel, is part of MRDI's efforts to popularise CSR through lobbying at the policy level and corporate sector.
Prof Wahiduddin Mahmud, a former caretaker government adviser, said the CSR activities in Bangladesh are getting institutionalised.
“It is a major achievement,” he said, while advocating for a national fund for better efficacy of the CSR money.
“If the fund can be used for a specific purpose the end result would be long-lasting,” the economist added.
“There is scope to use the CSR money in areas of education and health, as the budgetary spendings in these two sectors in terms of GDP [gross national product] have not increased since the 1990."
Mahmud further said the government would have to give credibility to the CSR fund to attract contributions.
Rokia Afzal Rahman, president of Metropolitan Chamber of Commerce and Industry, said the country's major corporate houses cannot only eye profits.
“CSR is very important for poverty reduction. As individuals we will have to strive for uplifting people out of poverty. Companies will have to come forward and do more CSR activities."
Shitangshu Kumar Sur Chowdhury, a deputy governor of Bangladesh Bank, said the CSR spending also brings in benefits for the companies.
The central bank top official said the CSR spending by banks and other financial institutions have increased four-fold to Tk 222 crore in 2011, from Tk 50 crore four years ago.
"But this is not enough -- we cannot be complacent."
He said the CSR efforts are sporadic in the country, while adding that the fund can be useful in ensuring sustainable spending.
"It will be a tough job as companies want to spend their CSR money on their own. If we can set up a fund, then it will be a milestone for the country."
Chowdhury said the companies are not as active as banks in spending for CSR activities.
Anis A Khan, chief executive officer of Mutual Trust Bank Ltd, said the corporate sector's CSR activities are not in proportion to their profits.
“Their CSR activities are not as much as the financial sector's,” added Khan.
He said all CSR activities by banks should be institutionalised and brought under one roof to formulate a structured project which has a larger impact on the society.
"The endowment fund can also be helpful in setting up hospitals, schools, colleges or vocational training centres," he said.
Khan also called for more rebates on CSR activities to encourage companies to do more for social causes.
At present, companies get a 10 percent tax break for CSR activities.
Shaheen Anam, executive director of Manusher Jonno Foundation, said: "To me, there are two sides of CSR."
"In one part, the private sector needs to ensure compliance at the factories, give benefits to workers and guarantee good working environment."
"On the other hand, the companies are making lots of profits and they need to share some of the profits with their workers," she said.
The development activist also said the benevolent rich in Bangladesh have been spending a lot for social causes.
“But time has come to look at the results.”
Anam, too, proposed an endowment fund so that the companies' CSR activities have a larger impact on the society.
She said the CSR spending also brings benefits for the companies.
"Their businesses flourish and the beneficiaries become their clients when their purchasing capacity and living standard improves."
She also said the companies
need to structure projects under the CSR in a way that it becomes sustainable, and the beneficiaries do not need outside support to run it after a certain period.
Moazzem Hossain, editor of The Financial Express, and Hasibur Rahman Mukur, executive director of MRDI, also spoke.