Corporate Social Responsibility (CSR) and Company Law in Bangladesh: An Emerging Legal Framework

Abstract

Corporate Social Responsibility (CSR) has become a crucial component of modern business practices worldwide, reflecting the growing expectation that companies not only pursue profit but also contribute to social, environmental, and economic development. In Bangladesh, CSR remains largely voluntary, with limited legal mandates under the Companies Act, 1994, leaving implementation largely at the discretion of corporate entities. This study examines the legal framework, current practices, challenges, and potential reforms related to CSR in Bangladesh, analyzing its integration with corporate governance, Sustainable Development Goals (SDGs), and international best practices. Through a combination of doctrinal research, comparative analysis, and review of secondary sources, the study identifies key challenges in the Bangladeshi context, including the lack of mandatory CSR provisions, weak regulatory oversight, fragmented legal guidance, limited reporting standards, and insufficient corporate capacity. Comparative studies of countries such as India, South Africa, the UK, and the USA reveal that mandatory CSR frameworks or governance-linked approaches enhance accountability and social impact. The study finds that while CSR initiatives in Bangladesh have grown in sectors like banking, RMG, telecom, and digital financial services, they often remain philanthropic and ad hoc, with limited strategic alignment to national priorities. To address these gaps, the study proposes legal, regulatory, and practical recommendations, including a hybrid mandatory-voluntary CSR framework, standardized reporting, strengthened regulatory oversight, capacity building, strategic alignment with SDGs, and sector-specific guidelines. This research concludes that effective CSR in Bangladesh requires a combination of legislative reform, corporate governance integration, stakeholder engagement, and long-term strategic planning, ensuring that companies contribute meaningfully to sustainable development while maintaining accountability and transparency. The findings aim to inform policymakers, regulators, and corporate stakeholders in developing a robust CSR ecosystem that aligns corporate activities with social and national development goals.