Green Banking Practices & Corporate Social responsibilities in Bangladesh:A Case Study on Islami Bank Bangladesh Ltd.

Abstract

Islami Bank Bangladesh Limited has become a renowned & popular bank within a journey of 40 years in Bangladesh because of its better services. It has launched many important schemes in our country as the market leader in private banking sector. Corporate Social Responsibility (CSR) & Green Banking term are two of them. Green banking is totally new concept in our country and corporate social responsibility (CSR) is gaining global acceptance very fast as a standard to assume environmentally sustainable and socially equitable business practices. As the pioneer of Welfare Banking Stream in Bangladesh, Islami Bank Bangladesh Ltd. has shown their heartiest activities in CSR obligations by establishing “Sadaqah Fund”, which was mainly a charitable fund, on 4th July 1983.This paper examines the practices and driving philosophy of corporate social responsibility (CSR) & variety of green banking activities, major performance of green banking by Islami Bank in Bangladesh and to evaluate the need to modify CSR program & Green Banking practices of the organization to enhance its effectiveness. The main objective of the report is to analyses the CSR Role & Green Banking practices of Islami Bank Bangladesh Limited targeted to contribute in the economic, social and environmental betterment of Bangladesh as well as for its citizens. The data collection method of this study considered of both primary and secondary sources. I have explored both qualitative & quantitative information through oral & informal communication, personal observation, analysing internet information & so on. Majority of the information was collected from secondary data such as annual reports of the bank, relevant articles, websites, Bangladesh Bank publications, newspaper, journal and magazines. This study found that the Islami Bank Bangladesh had linked its CSR program as core business strategy to grow business with shared prosperity with its surrounding community and The Bank is well aware of its responsibility inside organization before it reaches out its external stakeholders and communities. Being the largest private sector commercial bank and having the maximum stake-holders, Islami Bank Bangladesh Limited has the ample scope for promoting the awareness about environment friendly activities and it is utilizing the scope for disseminating awareness amongst the masses according to keep the globe eligible for habitation. There is no doubt that a country like Bangladesh cannot afford to discard all projects or economic activities only for environmental causes. Significant negative impact of production/economic activities on employment, income, and poverty cannot be ignored.