Corporate Social Responsibilities of First Security Islami Bank Limited

Introduction

The practice of Corporate Social Responsibilities in corporate world as well as financial institutions has brought a new shape to the social economic scenario of the world around.

Under this issues can be grouped including training and education, leadership, health and safety, working conditions, human rights, stakeholder engagement and corporate governance. Large multi-national companies were the first to identify CSR as a potential tool to improve performance and now through their supply chain they are asking suppliers to comply with their standards. CSR practice in Bangladesh is a new dimension which is the main focus point of this paper. First Security Islami Bank Limited is dedicated itself towards the welfare of the society. Although FSIBL has not formed a strong separated foundation but it does much social-welfare activities. Since then, First Security Islami Bank is carrying the social welfare, education, health programs, sponsorship activities and so on, one of the reputed first generation banks in the growing banking sector in Bangladesh. Thus, the title of the study is Corporate Social Responsibilities of First Security Islami Bank Limited.

Background of the Study

In today’s world, academic education is not adequate to enable a student to compete with confidence and reach his/her goal without having experience with the outside world.

As a student of Bachelor of Business Administration (BBA) in Marketing every student has to conduct a practical orientation in any organization for fulfilling the requirements of the three months Internship Program. The main purpose of the program is to expose the students to the real world situation .This study has been done as a partial requirement of the internship program for the BBA students. This report is prepared for the internship program consisting of a major in depth study of the CSR of FSIBL.

Practical knowledge is fundamental for the application of theoretical intelligence. Bearing this in mind and internship program was being included in the BBA curriculum. The goal of this analysis is to expose the student in the organizational work situation and also to provide an opportunity for applying classroom learning in practice. During my internship period I joined.

FSIBL at Mirpur branch. The title of the report is Corporate Social Responsibilities of First Security Islami Bank Ltd.

 Objective of the study                                                     

The objective of the study is:

To know about the CSR activities of First Security Islami Bank Ltd in Bangladesh.

Methodology of the study

Type of the study:

This is a descriptive study.

Sources of data

Primary and secondary data have been used in this study.

Primary Sources

• Interviews with 15 high key officials using an open ended questionnaire.
• Discussion with the mid level officials.
• 3 months practical experience of working in FSIBL (Mirpur Branch) as an intern.

Secondary sources

Secondary data were collected from,

• FSIBL annual report (2010-2011).
• FSIBL published CSR documents (2011).
• www.fsiblbd.com

Historical Background of FSIBL

First Security Islami Bank Limited (FSIBL) was incorporated in Bangladesh on 29 August 1999 as a banking company under Companies Act 1994 to carry on banking business. It obtained permission from Bangladesh Bank on 22 September 1999 to commence its business. The Bank carries banking activities through its Fifty two (66) branches in the country. The commercial banking activities of the bank encompass a wide range of services including accepting deposits, making loans, discounting bills, conducting money transfer and foreign exchange transactions, and performing other related services such as safe keeping, collections and issuing guarantees, acceptances and letter of credit.

Vision of the Bank

To be the unique modern Islami bank in Bangladesh and to make significant contribution to the national economy and enhance customer’s trust and wealth, quality investment, employee’s value and rapid growth in shareholder’s equity.

Mission of the Bank

The bank has chalked out the following corporate objectives in order to ensure smooth achievement of its goals:

• To be the most caring and customer friendly and service oriented bank.
• To create a technology based most efficient banking environment for its customers.
• To ensure ethics and transparency in all levels.
• To ensure sustainable growth and establish full value of the honorable shareholders and
• Above all, to add effective contribution to the national economy.

Objectives of the Bank

The objectives of the FSIBL are given below:

• To provide efficient computerized banking system.
• To enhance foreign exchange operations.
• To accept deposits on profit-loss sharing basis.
• To establish a welfare-oriented banking system.
• To play a vital role in human development and employment generation.
• To contribute towards balanced growth and development of the country through investment operations particularly in the less developed areas.
• To establish participatory banking instead of banking on debtor-creditor relationship.

Corporate Culture

This bank is one of the most disciplined Banks with a distinctive corporate. Here we believe in shared meaning, shared understanding and shared sense making. Bank’s people can see and understand events, activities, objects and situation in a distinctive way. They mould their manners and etiquette, character individually to suit the purpose of the bank and needs of the customers who are of paramount importance to the bank. The people in the Bank see themselves as a tight knit them that believe in working together for growth. The corporate culture of bank belong has not been imposed; it has rather been achieved through banks corporate conduct.

Salient Features of FSIBL Bank

The Bank is committed to run all its activities as per Islamic Shariah. FSIBL Bank through its steady progress and continuous success has earned the reputation of being one of the leading Private Sector Banks of the country. The distinguishing features of bank are as follows:

• All activities are conducted on interest-free banking system in accordance with Islamic Shariah.
• Investment is made through different modes permitted under Islamic Shariah.
• Establishment of participatory banking instead of banking on debtor-creditor relationship.
• Income of the Bank is shared with the Mudaraba depositors according to a ratio to ensure a reasonable fair rate of return on their depositors.
• Aims are to introduce a welfare-oriented banking system and also to establish equity and justice in the field of all economic activities.
• It extends Socio-economic and financial services to the poor, helpless and low-income group of the people for their economic enlistment particularly in the rural areas.
• It plays a vital role in human resource development and employment generation particularly for the unemployment youths.
• Its aim is to achieve balanced growth and equitable development of the country through diversified investment operations particularly in the priority sectors and in the less developed areas.
• It extends co-operation to the poor, the helpless and the low-income group for their economic development.

Products and Services of FSIBL:

Investment Schemes

Investment / Deployment of Funds:

• Bai-Murabaha (Deferred Lump Sum/ Installment Sale)
• Bai-Muajjal (Deferred Installment / Lump Sum Sale)
• Ijara (Leasing)
• Musharaka (Joint-Venture Profit-Sharing)
• Mudaraba (Trustee Profit-Sharing)
• Bai-Salam (Advance Sale and Purchase)
• Hire-Purchase
• Direct Investments
•   Post Import Investment
•  Purchase and Negotiation of Export Bills
• Inland Bills Purchased
• Murabaha Import Bills
• Bai-Muajjal Import Bills
•  Pre Shipment Investment
• Ø  Quard-ul-Hasan (Benevolent Investment)

Letter of Guaran

• Tender Guarantee
•  Performance Guarantee
• Guarantee for Sub-Contracts
• Shipping guarantee
• Advance Payment guarantee
• Guarantee in lieu of Security Deposits
• Guarantee for exemption of Customs Duties
• Others

 Letter of Credit (L/C) / Back to Back Letter of Credit (L/C)

Specialized Schemes

• Consumer Investment Scheme,
• SME Investment Scheme,
• Lease Investment Scheme,
• Hire Purchase,
• Earnest Money Investment Scheme,
• Mortgage Investment,
• Employees House Building Scheme,
• ATM, VISA Investment Card, EEF, etc.

Deposit Schemes

• Al-Wadiah Current Deposit.
• Mudarabah Savings Deposit.
• Mudarabah Short Term Deposit
• Mudarabah Term Deposit
•   DOne Month   DThree Months   DSix Months   DTwelve Months   DTwenty Four Months   DThirty Six Months

Foreign Currency Deposit

  Mudarabah Savings Scheme

Consumer Finance Scheme

D To diversify portfolio

D both retail & wholesale markets.

We are also emphasize on non-fund business and fee based income. Bid bond/ bid security can be issued at our customer’s request. Our Bank is posed to extend L/C facilities to its importers / exporters through establishment of correspondent relations and Nostro Accounts with leading banks all over the world.

Online Banking

 FSIB have set up Wide Area Network through Radio, Fibre-Optics & other available communication media systems to provide any branch banking to our customers.

Customer of one branch is now able to deposit and withdraw money at any of our branches. All Branches are included in our Wide Area Network. No TT/DD or cash carrying will be necessary.

 Mobile Banking

• Mobile Banking Agent List
• Mobile Banking Service
• Mobile Banking TV Adds
• Mobile Banking Paper Adds

SMS Banking

First Security Islami Bank Ltd. has officially launched SMS banking service from December 17, 2007

ATM

First Security Islami Bank Ltd. has implemented successfully Automated Teller Machine (ATM) /DBDIT card transaction from June 25, 2008. Through Automated Teller Machine (ATM) /Debit card, customer can avail the facilities like withdrawal money, balance inquiry and purchase goods from Point of sale (POS) using Dutch Bangla Bank Ltd. ATM Booth and POS.

Human Resources Development

FSIB has a separate Human Resources Division (HRD) to manage the employee policies and practices. As on FYE 2007, Total 421 executives & officers of the bank have been working for smooth banking operations. Bank follows a standardized human resources policy. HRD of the Bank follow a transparent and free & fair system to ensure the standard recruitment, training & development of human resources of the bank. The bank has defined HR policies including recruitment, training & development, promotion, leave, transfer and disciplinary action policy. Usually internal recruitment procedures are considered to fill up the mid and top management positions, while entry-level positions are filled with regularly through competitive recruitment exams. They follow transparent, well-defined and strict rules for appointment of officers and staff in the Bank’s service.

Corporate Governance

Corporate governance is about how corporation is running its operations to achieve its corporate objectives. Bangladesh Bank (BB) gives emphasis on implementing corporate governance among the financial institutions and to do that, BB emphasis implementation of the guidelines issued by them for improving corporate governance in banking. Good Corporate Governance practices enhance an entity’s corporate image and market credibility, which attract capital and increase its borrowing power. These can be reflected in the quality of financial reporting and disclosures; strength of internal control system and internal audit function induction of professionally competent, independent non-executive Directors on corporate Board; formation of Audit Committee; delegation of authority to executives and staff; protection of corporate governance for strengthening organizational strength. With a view to ensure effective participation and deep interest in the affairs of the company and as per Articles of Association of the Company and as per Bangladesh Bank Circular No. 16 dated March 24, 2003 the bank has set up the following 2 committee:   

• Executive committee
• Audit Committee

Executive Committee

FSIB has constituted 09 members executive committee of the board as per Bangladesh Bank guidelines to ensure corporate governance in the business of which managing director of the Bank is Ex-officio Member. The executive committee of the board are responsible for developing policy and strategy for smooth operations of business and business development of the bank to ensure maximization of shareholders wealth protecting other stakeholders interest in the company Mr. Alhaj Md. SaifulAlam, Chairman of the board of Directors is the Chairman of the present Executive Committee of the bank. He is very dynamic person and leading the executive committee of the bank in a very manner. 

Audit Committee

FSIB has formulated an audit committee can play an effective role in formulating an efficient and secured banking system. The Audit Committee has been formed comprising three members of the Board of Directors. As per corporate governance guidelines the Chairman of the Audit Committee should have sound knowledge and expertise in finance & accounting or auditing. Mr. Hamidul Haq, who is also a Director of the Bank, is Convener of the committee. He is associated in banking field over long years.

SWOT Analysis of FSIBL

SWOT analysis means strength, weakness, opportunity and threat analysis of company. Here SWOT analysis of FSIBL bank are given below-

 Strength

• First strength is that it is a sharia based bank.
• By this time it has established an integral, customer friendly relationship with its clients,
• It has prominent saving scheme named DPS for a fixed or lower income group of people of this society.
• It provides services even after the banking hour to special clients.
• Sound profitability growth and high asset quality.
• Experienced management.
• Honest, sincere and dedicated employee competency.
• Wide market share and stable source of fund.
• High attention on recovery of overdue amount and or pre-overdue situation. Close monitoring on investment.
• High attention on individual performance.
• High attention on making quality investment and disposal of proposals.
• All the officials are dedicated and honest to serve its own duty.
• As a whole the human resource is the main capital of the division.
• Business ethics of the division is similar to the ethics and values of mass people of our country.

Weakness

• Traditional network system and lack of full scale automation.
• Lack of required ideas in modern investment products.
• Poor marketing of investment products.
• Lack of required information specifically on SME.
• No growth on carrier advancement. So the employee wants to switch elsewhere.
• Lack of experienced, competent as well as proficient manpower in almost every department.
• FSIBL Bank Ltd. does not have an individual marketing department.
• They have limited advertising strategy on behalf on their bank and accompanied by conservatism rule in this sector.
• FSIBL Bank Ltd. does not use the share mode of investment.
• They have no such program to finance to the new entrepreneur or creating the same.

Opportunity

• Scope of market penetration through diversified investment products.

• Increasing awareness of Islamic banking among the clients.
• Scope develops new committed entrepreneurs.
• Country wide branches having wide opportunities to access in different kinds of business.
• Service charges in other banks are comparatively higher than FSIBL Bank Ltd.
• No other banks could provide as much integral working atmosphere as FSIBL Bank Ltd.
• Bank introduce Islamic card, which is a first time in Bangladesh.

Threats/ Challenges

• Because of the intense competition, most of the competitor banks of FSIBL Bank Ltd. are coming up with new service line ATM.
• The competitor banks of FSIBL Bank Ltd. have more geographical coverage than FSIBL Bank Ltd.
• State law defers with the Islamic Shariah.
• In the money market of Bangladesh there is no call money system of Islamic Shariah.
• Some other conventional banks have opened their Islamic banking branch.

Corporate Social Responsibility ⁽ⁱ⁾

The World Business Council for Sustainable Development in its publication Making Good Business Sense by Lord Holme and Richard Watts used the following definition.

Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.

The same report gave some evidence of the different perceptions of what this should mean from a number of different societies across the world. Definitions as different as CSR is about capacity building for sustainable livelihoods. It respects cultural differences and finds the business opportunities in building the skills of employees, the community and the government from Ghana, through to CSR is about business giving back to society from the Philippines.

Traditionally in the United States, CSR has been defined much more in terms of a philanthropic model. Companies make profits, unhindered except by fulfilling their duty to pay taxes. Then they donate a certain share of the profits to charitable causes. It is seen as tainting the act for the company to receive any benefit from the giving.

The European model is much more focused on operating the core business in a socially responsible way, complemented by investment in communities for solid business case reasons. Personally, I believe this model is more sustainable because:

1. Social responsibility becomes an integral part of the wealth creation process – which if managed properly should enhance the competitiveness of business and maximize the value of wealth creation to society.
2. When times get hard, there is the incentive to practice CSR more and better – if it is a philanthropic exercise which is peripheral to the main business, it will always be the first thing to go when push comes to shove.

But as with any process based on the collective activities of communities of human beings (as companies are) there is no ‘one size fits all’. In different countries, there will be different priorities, and values that will shape how business act. And even the observations above are changing over time. The US has growing numbers of people looking towards core business issues.

For instance, the CSR definition used by Business for Social Responsibility is:

Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business.

On the other hand, the European Commission hedges its bets with two definitions wrapped into one:

A concept whereby companies decide voluntarily to contribute to a better society and a cleaner environment. A concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.

When you review each of these, they broadly agree that the definition now focuses on the impact of how you manage your core business. Some go further than others in prescribing how far companies go beyond managing their own impact into the terrain of acting specifically outside of that focus to make a contribution to the achievement of broader societal goals. It is a key difference, when many business leaders feel that their companies are ill equipped to pursue broader societal goals, and activists argue that companies have no democratic legitimacy to take such roles. That particular debate will continue.

(i) Source: [http://www.mallenbaker.net/csr/definition.php]

In general CSR or business responsibilities can be described as an approach by which a company:

1. Recognizes that its activities have a wider impact on the society in which it operates and that developments in society in turn impact on its ability to pursue its business successfully.
2. Actively manages the economic, social, environmental and human rights impact of its activities across the world, basing these on principles which reflect international values, reaping benefits both for its own operations and reputation as well as for the communities in which it operates.
3. Seeks to achieve these benefits by working closely with other groups and organizations – local communities, civil society, other businesses and home and host governments.

Philip kotler and Nancy lee in their book, Corporate social responsibility define corporate social responsibility as “a commitment to improve community well-being through discretionary business practices and contributions of corporate resources”.  Some of the benefits of being socially responsible include (a) enhanced company and brand image (b) easier to attract and retain employees (c) increased market share (d) lower operating costs and (e) easier to attract investors. A socially – responsible firm will care about customers, employees, suppliers, the local community, society, and the environment. CSR can be described as an approach by which a company (a) recognizes that its activities have a wide impact on the society and that development in society in turn supports the company to pursue its business successfully and (b) actively manages the economic, social, and environmental and human rights. This approach is derived from the principles of sustainable development and good corporate governance. Marketing managers within different firms will see some social issues as more relevant than others. The relevance of a given social issue is determined by the company’s products, promotional efforts, and pricing and distribution policies but also by its philosophy of social responsibility.

Mathews (1993) states that:

“The social contract would exist between corporations (usually limited companies) and individual members of the society. Society (as a collection of individuals) provides corporations with their legal standing and attributes and the authority to own and use natural resources and t hire employees. Organizations draw on community resources and output both goods and services and waste products to the general environment. The organization has no inherent rights to these benefits and in order to allow their existence, society would expect the benefits to exceed the costs to society.

In recent years, the impact of business on the society has become a crucial issue. Business corporations are considered accountable to society for their actions. Now it is said that businesses are accountable not only to the shareholders but also to a wide range of stakeholders – including business partners, employees, customers, suppliers and the overall community. This kind of social view gave birth to the concept of Corporate Social Responsibility.

Business cannot work independently. Like an individual, it also has to live in an environment surrounded by socio-cultural, economic, technological, competitive, legal and political forces. In order to survive, it has to adjust itself within these forces. As a result, just like any other social units, it has to live like a member of a community or a citizen of a country. It has to abide by several rules and ethical considerations so that it does not do anything that is harmful for the society. As a body that deals with the society and utilizes the people or other resources of the society, it has some duties and responsibilities to the society also. In order to perform their task in the society, businesses must act as the ‘socially responsible citizens’.

Five beneficial reasons why company should embark on their CSR journey ⁽ⁱⁱ⁾

Enhanced brand image and reputation

A good reputation is vital for a successful company, with the rapid growth of social networking it is becoming more and more relevant and vital for SME’s as well as corporate to have a strong positive brand image. Companies gain referrals and testimonials to increase trust and reputation for prospective clients to view, this same theory can be applied to positive CSR.

Increased sales and customer loyalty

More and more consumers and suppliers are focusing their purchases towards socially and environmentally responsible products/services.

In European studies results have shown that 2 in 5 people would be willing to pay more for a product/service that have a positive CSR and conversely 3/6 people actively boycott or support products/services also on their public CSR.

Coupled together with a company’s USP’s these elements provide a powerful statement to be utilized.

Increased productivity

Employees are vital to a company’s success and it has become more and more apparent that by investing in your work staff and valuing their input, strongly increases productivity.

Peoples awareness of social issues are greatly increasing with easier access to information becoming readily available and on a personal level there has recently been a massive increase in the number of volunteers received within local communities.

This therefore implies that employees on a personal note are taking action more and will naturally expect the same attitude and sense of responsibility to be applied within their working environment also.

 Attraction and retention of Employees

A company’s dedication to CSR can really be a drawing point for potential employees at all levels. Graduates are aware of the current climate and therefore leaving university in search of career prospects within a company that have longevity and security; no longer are people solely driven by salaries.

The same can be applied to the senior individuals where slight salary increases matter even less, employees look for values and respect not only in them but within the organization itself and CSR can provide the perfect tool to display this effectively

Keeping up’ with competitors

This is where business is heading regardless of the company and regional culture, no matter how small your input CSR can only provide your company with positivity.

A companies reasons for beginning their CSR will all be differing however more often are local authorities, employees , investors and suppliers beginning to place pressure on the decision maker to “do the right thing” this is for your CSR but also and inevitably for your business.

Those that get left behind especially in a business climate such as this are going to be missing out on business opportunities, competitor advantage and improved management opportunities.

(ii) Source: [http://clarkewoodconsulting.blogspot.com/2011/08/11|is-corporate-social-responsibility/]

 Relationship between CSR and Branding

Exposure to any type of well-conceived promotional initiative for a brand leads to more positive feelings and judgments about the brand in a consumers mind. A promotional initiate emphasizing a brands affiliation with a social cause has a high degree of affinity. How much a given initiative will help or hurt a given brand will depend on the characteristics of its target markets. A high degree of affinity can enhance the effectiveness of a promotional initiative that increases the likelihood of consumers treating the initiative as an important and positively weighted attribute of the brand. However, when a promotional initiative does not mention an affiliation, consumers may weight a brands style of marketing as a negative attribute. Consumers would weigh the style of marketing as positive with those types of affiliations that have affiliation with a cause like cancer research, environmental protection or disaster relief. Moreover, a social-cause affiliation could also have a “halo effect” on how a brand is seen on other attributes, such as trustworthiness or quality.

Those initiatives in which the logic behind the brands affiliation can be easily recognized by most consumers – typically produce a more positive effect on consumer brand judgments and feelings than initiatives with weaker fit. When a brand promotes a high-fit social-cause, it may be more likely to be viewed by some consumers as opportunistic and seeking commercial gain.

Whether to pursue affinity marketing in general or societal marketing in particular, the companies should recognize that every brand is different. While, for example, a low-fit societal marketing initiative might work best for one brand, it might do less for another brands image. It is recommended to do careful experimental research to refine and test ideas for affinity marketing initiatives against one another and against other kinds of marketing initiatives.

Companies that have made Corporate Social Responsibility a central part of their businesses are reaping the benefits as improved brand image. It works best for those companies in which responsibility is a core company value and informs all aspects of the business.

Corporate Social Responsibility initiatives are not only about philanthropy but translating these ideas into practical business strategies. Corporate Social Responsibility driven efforts does not only relate to donating money but it talks about integrating social and ethical practices into business strategies that help the consumer in creating a positive brand image. With the increase in Corporate Social Responsibility awareness some companies promote a very elementary understanding of corporate governance and ethical standards.

Another important aspect of Corporate Social Responsibility is that it channelizes funds of socially responsible investors in promoting Corporate Social Responsibility among investors.

The content of Corporate Social Responsibility creates an emotional connection with consumers and builds connections between the brand, its Corporate Social Responsibility initiatives and the viewers. Promoting brand image with the help of Corporate Social Responsibility initiatives encourages positive comments and ultimately has a positive effect on the brand, because the company is being transparent about its external communications and internal practices which show alignment. The benefits of using Corporate Social Responsibility in branded content are endless; foremost it helps to build a brands reputation and is a point of differentiation.

(iii) [Http://www.interbrand.com/en/best-global-brands-2009/corporate social sponsibilities.aspx]

Corporate Social Responsibility (CSR) of FSIBL

After summarizing the data of table-01 in apendix-02 most of the respondents think that CSR is a form of corporate self-regulation integrated into a business model. Corporate Social Responsibility driven efforts does not only relate to donating money but it talks about integrating social and ethical practices into business strategies that help the company to create positive brand image.

According to the table-02 in apendix-02 CSR is a major component of brand value. A company performs CSR activities not only to help the people and society but also to create a strong positive brand image.

According to the table-03 in apendix-02 most of the respondents think that there is a positive relationship between CSR and branding. Promoting brand image with the help of Corporate Social Responsibility initiatives encourages positive comments and ultimately has a positive effect on the brand, because the bank is being transparent about its external communications and internal practices which show alignment.

According to the table-04 in apendix-02, it is being seen that most of the respondents are satisfied to the CSR activities of FSIBL.

According to the table no. 05 in apendix-02, First Security Islami Bank Ltd keeps on discharging its CSR activities as a part of social entity for the greater interest of the entire society. The bank has always extended its support to the development of the community through promotion of educational programs, sports, culture, health & disaster relief etc.

Education

The underprivileged but meritorious students are being provided with financial support in the form of monthly stipends for the persuasion of their graduation/post-graduation level studies in the country’s public sector universities and medical/agriculture colleges. In 2007, a total of 170 poor but meritorious students studying in country’s 32 educational institutions were selected for PBF stipends who would continue to receive an amount of Tk. 1500 per month starting from October 2007 on an ongoing basis.

• In 2008, a total of 120 poor but meritorious students were selected for PBF stipends. Because of increased cost of living, the amount of monthly stipend has been increased to Tk.1800. In 2009, number of awardees increased to 198.
• Donation to purchase educational materials for less privilege students for 10 schools at Tangail district.
• Donation to SonatolaPilotHigh School, BarnamalaAdarshaSchooletc.
• Scholarship/lump grant for poor and Meritorious Students
• Financial support to Educational Institutions

Scholarship program

Recently First Security Islami Bank has provided scholarship to the poor and autistics. The governor of Bangladesh Bank Dr. Salehuddin Ahmed was the chief guest of this program. The Bank wants to continue this scholarship every year so that these poor students can continue their study. This is a stipend package for poor and meritorious students that take care of the beneficiaries throughout their student life. FSIBL Scholarship Programme, launched in 2006 with 61 poor and meritorious students selected from different reputed educational institutions of DhakaCity including Govt.LaboratoryHigh School, ViqarunnissaNoonSchool and College, DhakaUniversity, BUET, DhakaMedicalCollege, etc. enrolled as many as 1000 students from around 150 reputed educational institutions across the country by 31 December 2008. They are enrolled in the this programme to be taken care of for their whole educational life subject to their fulfillment of the eligibility criteria that include satisfactory academic results, non-involvement in student politics, financial insolvency etc. So far Tk.19,30000/- has been disbursed as scholarship under this program.

Computer for School

FSIBL has provided some computer in different school and colleges. At first they start this program at Potya Model public school and college.

 15th All Asians Inter Varsity Debate Championship

FSIBL Limited was the event sponsor for the Youth Development Night of 15th All Asian Inter Varsity Debate Championship organized by North South University (NSU). This is a praiseworthy initiative by a Bangladeshi institution to organize such a mammoth event where more than 600 young debaters from all across Asia participated

Daily Star O & A level award giving ceremony 2011

To salute and encourage the nation builders of tomorrow, FSIBL supported the 9th award presentation ceremony organized by The Daily Star for the students who earned more than 7 A’s in O-level & 3 A’s in A-level. They are the future leaders who will lead the way from the forefront.

Research and Publication

Amor Ekushey Grontho Mela 2011 was supported by FSIBL. This support would facilitate BanglaAcademy to continue its ongoing publications & Research & Development activities.

Relief and Rehabilitation Program

Another vital area they are dealing with as a part of their CSR activities is helping people to survive natural calamities. Under this welfare programme, FSIBL provides relief in cash for flood, fire or cyclone victims and cold-stricken people. The aim of these CSR activities is to help the target group to overcome their provisional sufferings and contribute to the socio-economic growth as soon as possible.

Participation in relief and rehabilitation activities in natural disasters and in emergency forms an important program of First Security Islami Bank Foundation. During calamities like flood, tornado, tidal surge etc. The Foundation mobility its own people as well as donates to the relief fund opened at the government level. The Foundation also tries its best to extend hands of assistance and co-operation to the Muslim brethren elsewhere in the world.

As a part of Corporate Social Responsibility Program, First Security Islami Bank Limited donated Tk. 30,00,000/- to the Prime Minister’s Relief & Welfare Fund as donation for Nimtoli and Begunbari tragedy victims. Mr. Md. Abdul Maleque, Vice Chairman, First Security Islami Bank Limited is handing over the payment order to Honorable Prime Minister Sheikh Hasina in a simple ceremony. It may be noted that FSIBL always extended their assistance for the distressed community in various natural calamity.

 Assistance for Cyclone Aila and Cidr Victim

To mitigate the sufferings of Aila victims, First Security Islami Bank Limited has donated Tk. 10,00,000/- only to Prime Minister’s Relief Fund. Mr. AAM Zakaria, Managing Director, First Security Islami Bank Limited handed over a cheque amounting Tk. 10,00,000/- to Prime Minister Sheikh Hasina.

To mitigate the sufferings of Cyclone Sidr victims, First Security Islami Bank Limited has donated Tk. 15,00,000/- only to Prime Minister’s Relief Fund.

Sponsored Women Entrepreneur Association of Bangladesh (WEAB) FSIBL supported WEAB to initiate a relief program under which they helped building house for acid victims especially in cyclone SIDR hit areas namely Cox’s Bazar and Barisal. A cultural event was organized to raise fund for the charity.

Health

 National Vitamin A plus Campaign

FSIBL has sponsored 1000 pieces of t-shirts for the volunteers of country wide Vitamin-A campaign. Each year government’s health ministry organizes this campaign where children of 0 to 5 years are given a drop of vitamin A, to prevent them from fatal diseases. To create more awareness against such diseases FSIBL lent its support in the campaign. And also-

• Under Dristy Daan Project, 1,258 poor/ultra poor cataract patients were identified and operated. In addition, 779 persons with refractive error were prescribed spectacles after relevant examinations done at eye camp and 207 patients were given spectacles free of cost.
• Through ‘Keep the Heart Beating Project’ the total costs of the cardiac surgeries of 12 children with congenital/acquired heart diseases are contributed.
• Contributed for the construction of the hospital building of Rangpur Diabetic Association and a Passenger cum Bed lift for SylhetDiabeticAssociationHospital.
• Sponsored “The World Blood donor’s day” organized by Sandhani, a voluntary institution of medical and dental students.
• Donation to RiverboatHospital project.
• Donation to ORBIS.
• Donation to ‘ChattagramMaaOShishuHospital’.
• Donation to SIED Trust for providing physiotherapy support to underprivileged children.
• Sponsored Immunization Campaign.

ICDDRB Inauguration of FSIBL Short Stay Ward

FSIBL and ICDDR, B representatives inaugurated FSIBL Short Stay Ward at Dhaka Hospital of ICDDR,B. Its Dhaka and Matlab hospitals provide free treatment to 1120,000 patients each year with a commitment to not to turn away anyone arriving for treatment. In the past, accommodating these patients required the use of tents as temporary wards. With the support of FSIBL Limited the short stay ward has been renovated with full air conditioning, new washrooms, hand washing sinks, surrounding walls and upgraded floors and ceilings. This will facilitate ICDDRB to treat underprivileged patients with better care.

Social Welfare

As a part of Corporate Social Responsibility, First Security Islami Bank Limited has donated an ambulance to Baitus Sharaf ShahJabberiaHospital. Mr. Zahangir Gafur, Zonal Head of FSIBL hand over the ambulance to Mawlana Sheikh Md. Kutubuddin.

FSIBL has donated 5 lack taka for opening new orphanage for the orphan  madrasha. They have also donated for seed trust and 2,40,000 taka for Anjuman mofidul islam.

First Security Islami Bank Limited with the assistance of Bankers Forum organized an eye camp for the orphans of DhakaCity. In this connection a simple ceremony was organized at the Bank’s Head Office few days. Mr. A.A.M. Zakaria, Managing Director was present on the occasion.

• Donation to Election Commission for preparing Voter & National ID.
• Sponsored New Voter Campaign.
•  Donation to TRY Foundation.
• Arrangement of job fair.
• Donation to Monga affected people.
• Sponsored Tree plantation program for maintaining ecological balance

Liberation war museum

As a part of Corporate Social Responsibility Program, First Security Islami Bank Limited donated Tk. 50, 00,000/- for construction of permanent LiberationWarMuseum. Alhaj Md. Saiful Alam, Chairman, First Security Islami Bank Limited is handing over the payment order to Honorable Prime Minister Sheikh Hasina in a simple ceremony. It may be noted that FSIBL always extended their assistance for the promotion of heritage, culture, education and welfare of distressed community in various natural calamity.

FSIBL Partnering with Dhaka Metropolitan Police

Dhaka Metropolitan Police (DMP) commenced community police service in different parts of the city, with a view to involve the community in the criminal administration and traffic control system. In this regard FSIBL has supported Dhaka Metropolitan Police as part of its ongoing CSR activities. FSIBL has provided the DMP with road divider, traffic cones, police vests and umbrellas to assist them in serving our society for the betterment.

Bird Fair in Jahangirnagar University

FSIBL as part of its CSR activity sponsored FSIBL Pakhi Mela 2010 organized by JahangirnagarUniversity. This was done to raise awareness about conservation of immigrant birds and thus to protect them from being endangered.

Humanitarian help programs

These hese programmed aims at providing help to distressed people who are unable to meet their basic needs like food, clothing, shelter and medicine. The old widow and children without

guardians get preference. Besides, the programmed extends assistance to orphanages, provide fund for the marriage of poor girls, assist indebted people, help distressed wayfarers etc.

 Assistance for family members of the martyred Army Officers killed in BDR carnage

As a part of Corporate Social Responsibility, First Security Islami Bank Limited has donated Tk. 25,00,000/- only to Prime Minister’s Relief Fund as financial assistance to the bereaved family members of the martyred Army Officers killed in BDR carnage. Alhaj Mohammad Saiful Alam, Chairman, First Security Islami Bank Limited handed over a cheque amounting Tk. 25,00,000/- to Prime Minister Sheikh Hasina on June 10, 2009.

First Security Islami Bank Limited has also donated Tk. 4,80,000/- only to Prime Minister’s Relief Fund as financial assistance to the bereaved family members of the martyred Army Officers killed in BDR carnage. Mr. A.A.M. Zakaria, Managing Director, First Security Islami Bank Limited handed over a cheque amounting Tk. 4, 80,000/- to Prime Minister Sheikh Hasina

FSIBL pays tribute to Artist Safiuddin Ahmed

FSIBL pays tribute to the eminent Artist Safiuddin Ahmed by celebrating his 86th birth anniversary with his 1st solo art exhibition in Bangladesh with Bengal Gallery of Fine Arts. As part of FSIBL’s ongoing CSR activity, it has sponsored the solo exhibition styled ‘THE LIMITLESS LUMINOSITY OF LINES’. The exhibition was held from June 23, 2008 till July 13, 2008.

Sponsorship

 FSIBL Sponsors Bangladesh Travel & Tourism Mart

FSIBL Limited was the title sponsor for the Bangladesh Travel & Tourism Fair, which was held for 3 days in Bashundhara City Centre, Dhaka. FSIBL displayed its travel related services, such as money endorsement, tour plan, airline booking, travel loan, etc at the fair.

FSIBL Sponsors National Career Fair

FSIBL sponsored the 5th Annual National Career Fair organized by NorthSouthUniversity. This initiative for arranging the Career Fair was an effective means to open the window of opportunity for bright and eager young students and graduates with employers for job searching & networking. FSIBL contributed to this endeavor for a better way to the development of our nation

FSIBL sponsors Jatio Haowr Utshab at Mohonganj, Netrokona

FSIBL as part of their CSR activity supported a 3-day long “Jatio Haowr Utshab” in Mohangonj, Netrokona. Despite of having any distribution network in that locality, FSIBL joined with Poribesh Bachao Andolon (POBA) to save the environment. The drive was to create awareness to save the surrounding environment of Haowr areas and to protect its rich biodiversity.

FSIBL supported Bangladesh Hockey Federation

FSIBL has sponsored ‘FSIBL Club Cup Hockey Tournament’ with Bangladesh Hockey Federation. The tournament was sponsored to motivate and provide financial support for the promising of hockey players Bangladesh.

 Junior Tennis Initiative sponsored by FSIBL

FSIBL has supported Bangladesh Tennis Federation to initiate Junior Tennis Initiative (JTI) Program. Under this program young school children would be provided with necessary training on tennis. This initiative is taken to create internationally acclaimed tennis stars from Bangladesh. This is to create enthusiasm among the young school children about games and sports. It’s also sponsored by

• Donation to Bhatiary Golf & country club, Chittagong for construction of Halfway house.
• Games & Sports sponsorship (National Leg & Athletic Federation).

CSR and branding of FSIBL

After summarizing the data of table-03 of apendix-02 it is being seen that most of the respondents are strongly agreed to the importance of CSR in building positive brand image. CSR is a major component of brand value. The content of Corporate Social Responsibility of FSIBL creates an emotional connection with consumers and builds connections between the brand, its Corporate Social Responsibility initiatives and the viewers. CSR of FSIBL Making good business sense. Developing brand image with the help of Corporate Social Responsibility initiatives encourages positive comments and ultimately has a positive effect on the brand, because the bank is being transparent about its external communications and internal practices which show alignment. CSR is essential for the long term sustainability of FSIBL. Corporate Social Responsibility is increasingly important to the FSIBL’s competitiveness.  CSR can bring benefits in terms of risk management, cost savings, access to capital, customer relationships, human resource management, and innovation capacity of FSIBL. The benefits of using Corporate Social Responsibility in branded content are endless; foremost it helps to build a brand reputation and is a point of differentiation. CSR of FSIBL takes advantage of fast-changing expectations in society as well as operating conditions. FSIBL have made Corporate Social Responsibility a central part of their businesses are reaping the benefits as improved brand image. It works best for those companies in which responsibility is a core company value and informs all aspects of the business. With the increase in Corporate Social Responsibility awareness FSIBL promote a very elementary understanding of corporate governance and ethical standards. FSIBL has created a strong brand image through their CSR activities.

Summary of findings

First Security Islami Bank has been doing a lot of CSR activities in different sector such as Educational sector, health sector, sponsorship program etc, successfully for the last 13 years.

In 2007, a total of one hundred and seventy poor but meritorious students studying in country’s 32 educational institutions were selected for FSIBL stipends who would continue to receive an amount of Tk.1500 per month starting from October 2007 on an ongoing basis.

FSIBL donates Tk.50,00,000/- for liberation war museum. First Security Islami Bank Limited has donated Tk.25,00,000/- to Prime Minister’s Relief Fund as financial assistance to the bereaved family members of the martyred Army Officers killed in BDR carnage.  The bank also arranges National vitamin A plus campaign. Furthermore it has been observed FSIBL is always eager to contribute for the welfare of the society by participating in many social issues.

But most of the activities have been done scatteredly. The bank has not a separate foundation to operate their CSR activities properly. FSIBL spends a little amount in scholarship program.

Furthermore they do not use CSR effectively to enhance the brand image. Even the customers are not also aware about their social welfare issues.

 Conclusion

CSR involves a commitment to contribute to the economic, environmental and social sustainability of communities through the on-going engagement of stakeholders, the active participation of communities impacted by company activities and the public reporting of company policies and performance in the economic, environmental and social arenas.

First Security Islami Bank Limited (FSIBL) was awarded the Corporate Social Responsibility (CSR) Award 2009 by Bankers’ Forum. The bank was awarded the CSR award in recognition of its active participation in the field of Corporate Social Responsibility (CSR) Program.

FSIBL operates CSR activities not only to social welfare but also to increase their brand image. To become the best service provider in the Banking sector FSIBL should more increase their CSR activities.

Recommendations

First security Islami Bank Bangladesh Ltd should do the following things:

• FSIBL should develop a separate structure for conducting their CSR activities.
• The bank should extend their sponsorship program.
• Most importantly the bank should focus more on branding by using CSR activities.

Limitations of the study

The Report was subject to the following limitations:

1. Lack of published financial data.
2. Sufficient books, facts, publications and figures are unavailable.
3. Inadequacy in access to hampered the scope of the study. As it was a new branch it was unable to provide some formatted documents for my study.

References

Kotler, Philip and Lee, Nancy (2005) Corporate Social Responsibility: 12^th ed. New Jersey: Hoboken

Holme, Richard and Watts, Phil (2000) Making good business sense. Geneva: World Business Council for Sustainable Development.

CONE, M.H. (2003) Corporate Citizenship: The Role of Commercial Organizations in an Islamic Society, New Jersey: Prentice Hall.

Jez, Frampton (2009) corporate social responsibilities: global brands. [Online]. Available from: http://www.interbrand.com/en/best-global-brands-2009/corporat social responsibilities. aspx [Accessed 5 January 2013].

First Security Islami Bank Ltd. (2010-2011) Annual reports: Corporate Social Responsibilities, Dhaka: First Security Islami Bank Ltd.