Corporate Social Responsibility in Bangladesh: In Theory and Practice.

Abstract

This research monograph focuses on the indebtedness of corporations to society that sustains them. It is their obligation to pursue goals that do not conflict with socially responsible behavior. Many cases are cited here to suggest a positive link between corporate social responsibility and fanatical performance. However, results of statistical studies seem inconclusive. Whether such a link exists or not, corporations are being increasingly pressured by public opinion and by the justice system, to pursue socially responsible practices. Corporate giving as a percentage of revenues appears insubstantial. It does become noticeable when combined with gifts by top individual givers who owe their fortunes to the success of the corporations they work for. Corporate giving is only one form that social responsibility can take and progress has been made on other fronts. Corporations increasingly realize that socially and ethically responsible conduct actually helps them make more profiles. It builds trust, promotes long-term relationships with stakeholders, boosts employee morale. Promotes employee loyalty, and helps recruit new hires. It also enhances a company's reputation. A review of literature indicates that •stakeholder theory' has an edge over the Friedman paradigm. This research also indicated that social labelling, collaborative works between MNEs and Non-Governmental Organisations and implementation of stronger legal frameworks represent some of the tools that can be used to improve CSR in Bangladesh.