Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) is comparatively a new concept in the banking domain of Bangladesh. It was in June 2008 Department of Off-site Supervision of Bangladesh Bank in DOS Circular No. 01 Date: 1 June 2008. Regarding Mainstreaming Corporate Social Responsibility (CSR) in banks and financial institutions in Bangladesh stipulated the need of CSR.

Globally, the idea of Corporate Social Responsibility (CSR) is fast gaining acceptance as the contribution that businesses can and should make voluntarily towards environmentally sustainable and socially equitable development. Stated briefly, CSR is about

  1. taking stock of the economic, social and environmental impacts of a business,
  2. mitigating the negative impacts and bolstering the benign impacts,
  3. taking up action programs and community investments to reduce social exclusion and inequality and to address the key sustainable development challenges.

CSR programs and actions go beyond such mandatory compliances as mandated by laws and regulations into voluntary engagements to promote equitable, sustainable development. Besides the self evident ethical case, a strong business case for CSR (as investment in a strategic asset or distinctive capability, rather than an expense) is also getting clearer with developing practice; seen as benefiting a business by:

  • building reputation, brand value, customer loyalty, employee motivation and retention;
  • mitigating risks in own operations and in assessing suppliers and clients;
  • cutting down wastes (of energy, raw materials etc.), driving up efficiency;
  • gaining new markets for products and services, in the communities/social groups benefited by the CSR actions.

RAKUB has made major CSR contribution by speeding up financial inclusion of the large socially disadvantaged rural population; drawing them in with appropriate financial service packages and with financing programs innovatively designed to generate new employment, output and income. RAKUB has adopted a couple of credit programs to this end which include:

  • - Self-employment and income generating credit programs run by the bank for poverty alleviation. The programs include BSCIC sponsored UNCDF Credit program and Women Entrepreneurs Development Program (WEDP) for cottage industries, group based micro-finance project RSCP, RAKUB Zero Poverty Credit Program for the manga afflicted Northern districts, Small and Medium Enterprise (SME) lending programs etc.
  • - Financing programs for installation of biogas plants, solar panels in rural households and for Effluent Treatment Plants (ETPs) in industrial units;
  • - Of total credit operation by RAKUB 60 percent is earmarked for crop production. Credit programs for diversified production of crops, oilseeds, spices, vegetables, fruits etc. financing the growers directly and through selected NGOs are the most significant part of RAKUB’s contribution towards CSR.
  • - Another small but potential segment of CSR activities by the bank is promptly delivering remittances from migrant workers originating from 16 northern districts of Rajshahi and Rangpur divisions through Western Union.

Initiating CSR programs in banks/financial institutions:

CSR activities of RAKUB have begun with decision at the highest corporate level i.e. the board of directors. The following activities have been encompassed under the bank's CSR programs:

  • Rewarding the bank's agricultural credit recipients' sons and daughters obtaining GPA 5.00 in SSC and HSC level.
  • Distribution of warm clothes among freedom fighters and ethnic minority people having scanty means of livelihood.
  • Distribution of wheel chairs among wounded freedom fighters.
  • Monetary help to destitute and physically challenged persons for medical treatment, education, wedding ceremony etc.

Services about Social Security activities:

# Particulars No. of Accounts (as on 31.12.19)
1 10-Taka Farmers’ Accounts 19,63,398
2 10-Taka Freedom Fighter Accounts 145
3 100-Taka Micro Life Insurance Policy holders' Accounts 342
4 School Banking Savings Accounts 1,15,327
5 Other Accounts 17,342
6 Old Age Allowance 2,81,065 persons
7 Widow and Husbands Deserted Women Allowances 1,44,380 persons
8 Poor challenged pesons’ allowance 1,02,558 persons
9 Beneficiaries of employment programs for very poor 3,68,042

1) The bank does not take any fees/charges for above accounts.
2) In case of stipend the bank takes 2.5% charges.