Corporate social responsibility practices of banks in Bangladesh: a structuration theory perspective
-
Author(s)Esinath NdiweniLink to ORCID Index: https://orcid.org/0000-0003-3389-3805
,
Faizul HaqueLink to ORCID Index: https://orcid.org/0000-0003-1556-3466
,
Mostafa Kamal HassanLink to ORCID Index: https://orcid.org/0000-0002-4829-4285
-
DOIhttp://dx.doi.org/10.21511/imfi.15(1).2018.29
-
Article InfoVolume 15 2018, Issue #1, pp. 350-360
- Cited by
- 2042 Views
-
651 Downloads
This work is licensed under a
Creative Commons Attribution-NonCommercial 4.0 International License
The aim of this paper is to illuminate the role of the socio-economic, cultural and religious context in shaping corporate social responsibility (CSR) practices of banks in Bangladesh. The authors utilize content analysis of annual reports and websites of banks to identify CSR activities in healthcare, education and financial inclusion sectors. Structuration theory (ST) is used to explain how interactions between bank managers (as agents) with the social structures (institutions and government) shape CSR practices. The findings show that banks’ engagement in CSR activities is embedded in the social fabric of Bangladesh and not a result of the Global Reporting Initiative (GRI). It is also noted that Islamic banks focus their CSR activities on social justice, while other banks target education and other humanitarian issues. The authors contribute to the literature on the determinants of CSR by revealing the rationalizations of different actors in the production and reproduction of CSR practices in Bangladesh, an insight attributed to ST. The researchers conclude that Islamic beliefs influenced managers to mitigate poverty through CSR investments.
- Keywords
-
JEL Classification (Paper profile tab)M14, M40, O15, O35, I00
-
References51
-
Tables0
-
Figures3
-
- Figure 1. Sector wise expenditures on CSR (in percentage) in the banking sector of Bangladesh
- Figure 2. Sector wise expenditures on CSR (in percentage) by IBBL
- Figure 3. Sector wise expenditures on CSR (in percentage) by DBBL
-
- Aerts, W., Cormier, D., & Magnan, M. (2006). Intra-industry imitation in corporate environmental reporting: an international perspective. Journal of Accounting and Public Policy, 25, 299-331.
- Agle, B., & van Buren, H. J. (1999). God and mammon: The modern relationship. Business Ethics Quarterly, 9(4), 563-582.
- Ahmad, S., & Khanal, D. R. (2007). Services trade in developing Asia: A case study of banking and insurance sector in Bangladesh (Working Paper Series No. 38). Asia Pacific Research and Training Network on Trade, Bangkok, July 2007.
- Ahmed, F. (2005). Financial sector reform in Bangladesh: Developments and challenges. The New Nations, 28, March, 3-4.
- Ahmed, M. K., Jobair, M., & Azad, M. M. H. (2014). Corporate Social Responsibility Practices of Private Commercial Banks in Bangladesh: A case study on Southeast Bank Limited. Developing Country Studies, 1(14), 56-62.
- Ahmed, S. F. (2003). Does Morality Require God? Intellectual Discourse, 11(1), 51-76.
- Akhter, I., Islam, S., & Uddin, G. (2009). Managerial Ethics: Evidence and Analysis in the Context of Bangladesh’s Corporate Sector. South Asian Journal of Management, 16(2), 76-90.
- Ali, E., & Rahman, S. M. (2015). Corporate Social Responsibility: A Comparative Study between Islamic Banks and Conventional Banks in Bangladesh. International Business and Management, 10(1), 9-17.
- Aribi, Z. A., & Gao, S. (2010). Corporate social responsibility disclosure: A comparison between Islamic and conventional financial institutions. Journal of Financial Reporting and Accounting, 8(2), 72-91.
- Bangladesh Bank (2010). Review of Corporate Social Responsibility (CSR) initiatives in Banks. Bangladesh Bank, Dhaka, Bangladesh.
- Bangladesh Bank (2012). Review of CSR initiatives of banks. Bangladesh Bank, Dhaka, Bangladesh.
- Barley, S. R., & Tolbert, P. S. (1997). Institutionalization and structuration: Studying the links between action and institution. Organization Studies, 18(1), 93-117.
- Bebbington, J. (2001). Sustainable Development: A review of the international development, business and accounting literature. Accounting Forum, 25(2), 128-157.
- Belal, A. R. (2001). A study of corporate social disclosures in Bangladesh. Managerial Auditing Journal, 16(5), 274-289.
- Belal, A. R., & Owen, D. (2007). The views of corporate managers on the current state of, and future prospects for, social reporting in Bangladesh: An engagement-based study. Accounting, Auditing & Accountability Journal, 20(3), 472-494.
- Belal, A. R., & Cooper, S. (2011). The absence of corporate social responsibility reporting in Bangladesh. Critical Perspectives on Accounting, 22(7), 654-667.
- Covaleski, M. A., Dirsmith, M. W., & Rittenberg, L. (2003). Jurisdictional disputes over professional work: The institutionalization of the global knowledge expert. Accounting, Organizations and Society, 28(4), 323-355.
- Creswell, J. W. (2003). Research Design: Qualitative, Quantitative, and Mixed Method Approaches. London: Sage Publications Inc.
- Dutta, P., & Bose, S. (2007). Corporate Social and Environmental Reporting on Corporate Websites: A Study on Listed Companies of Bangladesh. The Cost and Management, 35(6), 31-49.
- Giddens, A. (1984). The Constitution of Society: Outline of the Theory of Structuration. Berkeley, CA: University of California Press.
- Giddens, A. (1990). The Consequences of Modernity. Cambridge: Polity Press.
- Giddens, A. (1995). Politics, Sociology and Social Theory: Encounters with Classical and Contemporary Social Thought. Stanford University Press.
- Government of Bangladesh (2014). Tax rebate on corporate social responsibility expenditures, SRO 186-LAW/Income Tax/2014 replacing SRO 229-LAW/Income Tax 2011, National Board of Revenue, Government of Bangladesh.
- Greene, J. C., Kreider, H., & Mayer, E. (2005). Combining Qualitative and Quantitative Methods in Social Inquiry. In B. Somekh & C. Lewin (Eds.), Research Methods in the Social Sciences. London: Sage Publications.
- GRI (2002). Sustainability Reporting Guidelines. Global Reporting Initiative.
- Gurd, B. (2008). Structuration and middle-range theory: a case study of accounting during organizational change from different theoretical perspectives. Critical Perspectives on Accounting, 19(4), 523-543.
- Haniffa, R., & Cooke, T. (2001). The impact of culture and governance on corporate social reporting. Journal of Accounting and Public Policy, 24, 391-430.
- Hassan, A. Md. (2013). CSR in banking sector: a comparative study on some commercial banks in Bangladesh. Daffodil International University Journal of Business and Economics, 7(1), 211-223.
- Hauschildt, A. L. S. (2008). Corporate Social Responsibility in a local African Context: A Critical Perspective (An unpublished master’s thesis, University of Aarhus, June 2008).
- Khan, A. Muttakin, M. B., & Siddiqui, J. (2013). Corporate Governance and Corporate Social Responsibility Disclosures: Evidence from an Emerging Economy. Journal of Business Ethics, 114, 207-223.
- Khan, M. D., Halabi, A. K., & Samy, M. (2009). CSR reporting: a study of selected banking companies in Bangladesh. Social Responsibility Journal, 5(3), 344-357.
- Luo, Y. (2006). Political behaviour, social responsibility, and perceived corruption: A structuration perspective. Journal of International Business Studies, 37(6), 747-766.
- Mannan M. A. (2015). Pyramid of Maslahah is the ultimate solution- Dialogue on Financial Inclusion. The Daily Observer, Thursday, July 23, 2015.
- Mannan, M. A. (2013). Islamic Banking: Financial inclusion as a Core Concept: Bangladesh Experience. Paper presented at “The International Conference on Islamic Finance for Asia Development: Prospects and Inclusive Growth”, ADB Headquarters, Manila, Philippines, 4-5 November 2013.
- Masud, A. K., & Hossain, M. S. (2012). Corporate Social Responsibility Reporting Practices in Bangladesh: A Study of Selected Private Commercial Banks. Journal of Business and Management, 6(2), 42-47.
- Masud, A., Hoque, A., Hossain, S., & Hoque, R. (2013). Corporate Social Responsibility Practices in Garments sector of Bangladesh: A Study of Multinational Garments, CSR view in Dhaka EPZ. Developing Country Studies, 3(5), 27-37.
- Menova, J. M., Archel, P., & Correa, C. (2006). GRI and the camouflaging of corporate unsustainability. Accounting Forum, 30(2), 121-137.
- Mohani, A. (2001). Corporate citizenship. Journal of Corporate Citizenship, 2, 107-117.
- Momin, M. A. (2013). Social and environmental NGOs’ perceptions of Corporate Social Disclosures: The Case of Bangladesh. Accounting Forum, 37, 150-161.
- Rahman, A. (2015). Launching of the Millennium Development Goals: Bangladesh progress Report 2015. Bangladesh Bank, Dhaka.
- Saha, A. K., Dey, S. K., & Khan, A. R. (2013). Corporate social responsibility in Bangladesh: A Comparative study of Commercial Banks of Bangladesh. The Bangladesh Accountant, April-June, 2013, 69-80.
- Sobhani, F. A., Amran, A., & Zainuddin, Y. (2009). Revisiting the Practices of Corporate Social and Environmental Disclosure in Bangladesh? Corporate Social Responsibility and Environmental Management, 16(3), 167-183.
- Sriramesh, K., Ng, C. W., Soh, T. T., & Lou, W. (2007). Corporate social responsibility and public relations: Perceptions and practices in Singapore. In S. May, G. Cheney & J. Roper (Eds.), The debate over corporate social responsibility (pp. 119-134). New York: Oxford University Press.
- Suddaby, R., Cooper, D. J., & Greenwood, R. (2007). Transnational regulation of professional services: Governance dynamics of field level organizational change. Accounting, Organizations and Society, 32(4-5), 333-362.
- Utting, P. (2003). Promoting Development through Corporate Social Responsibility: Prospects and Limitations. Global Future, 3rd Quarter, 2003, the Magazine of World Vision.
- WBCSD (1998). Stakeholder Dialogue on CSR. The World Business Council for Sustainable Development. The Netherlands, Sept 6-8, 1998.
- Whittington, R. (1992). Putting Giddens into action: Social systems and managerial agency. Journal of Management Studies, 29(6), 693-712.
- Wise, V., & Ali, M. (2009). Corporate Governance and Corporate Social Responsibility in Bangladesh with special reference to Commercial Banks (AIUB Business and Economics Working Paper Series Econ 2009-05).
- World Bank (2014). World Development Indicators 2014. The World Bank, Washington, DC.
- Yunus, M., Kabir, M. R., & Rahman, M. A. (2015). CSR and related disclosures: a study of the listed banks in Bangladesh. World Journal of Social Sciences, 5(1), 1-21.
- Zinkin, J., & Williams, J. (2010). Islam and CSR: a study of the compatibility between the tenets of Islam and the UN Global Compact. Journal of Business Ethics, 91, 519-533.
-
The relationship between corporate social responsibility and earnings management: accounting for endogeneity
Hyunjung Choi , Byungchul Choi ,
Jungyoon Byun
doi: http://dx.doi.org/10.21511/imfi.15(4).2018.06
Investment Management and Financial Innovations Volume 15, 2018 Issue #4 pp. 69-84 Views: 4622 Downloads: 545 TO CITE АНОТАЦІЯThis study examines the relationship between corporate social responsibility (CSR) and earnings management after controlling for endogeneity of CSR. Using a sample of non-financial firms listed on Korean Securities Market between 2002 and 2010, this study finds that ignoring endogeneity biases the estimated relation between CSR and earnings management. Specifically, the results show that the negative and significant relation between CSR commitment and discretionary accruals reported in the previous studies becomes insignificant. However, the negative and significant relation between CSR commitment and real activities manipulation remains significant even when the endogeneity of CSR commitment is taken into account. Therefore, this study provides evidence that proactive CSR engagement significantly affects firm’s practice of real activities manipulation, while it does not affect its practice of discretionary accruals. These results indicate that CSR commitment leads managers to be more responsible in management of operational activities than in accruals management.
-
Does board composition have an impact on CSR reporting?
Patrick Velte 
doi: http://dx.doi.org/10.21511/ppm.15(2).2017.02
Problems and Perspectives in Management Volume 15, 2017 Issue #2 pp. 19-35 Views: 4473 Downloads: 1719 TO CITE АНОТАЦІЯCorporate social responsibility (CSR) reporting plays a key role in management control, particularly in light of the increased demand for non-financial reporting after the financial crisis of 2008–2009. This literature review evaluates 47 empirical studies that concentrate on the influence of several board composition variables on the quantity and quality of CSR reporting. The author briefly introduces the research framework that underpins current empirical studies in this field. This is followed by a discussion of the main variables of board composition: (1) committees (audit and CSR committees), (2) board independence, (3) board expertise, (4) CEO duality, (5) board diversity (gender and foreign diversity), (6) board activity, and (7) board size. The author, then, summarizes the key findings, discusses the limitations of the existing research and offers useful recommendations for researchers, firm practice and regulators.
-
Why banks should consider ESG risk factors in bank lending?
Sarwar Uddin Ahmed ,
Samiul Parvez Ahmed ,
Ikramul Hasan
doi: http://dx.doi.org/10.21511/bbs.13(3).2018.07
Banks and Bank Systems Volume 13, 2018 Issue #3 pp. 71-80 Views: 2817 Downloads: 1132 TO CITE АНОТАЦІЯWhy banks should be concerned about incorporating environmental, social and governance (ESG) criteria in the lending process? What is the motivation? This study aims to find the motives for considering environmental, social and governance (ESG) criteria in bank lending process. A primary survey has been conducted to know the current status and motivation for incorporating ESG factors in investment decisions. Sample comprised 30 private commercial banks (PCBs) operating in Bangladesh. Data collected were analyzed with graphs, descriptive statistics, and regression analysis. Findings of the study indicate that banks are mostly considering basic environmental, social and governance factors set by regulators qualitatively. They are lagging behind in considering the advanced ESG criteria needed for sustainable and efficient credit risk management. Based on motivation for incorporating ESG factors, it was found that banks pioneering in incorporating ESG factors in lending decisions are compensated through better financial performance. Findings of the study are expected to encourage practitioners and policy-makers to take more pragmatic steps to incorporate ESG risk factors quantitatively in lending decision-making process.
