Corporate Social Responsibility in the Banking Sector of Bangladesh: Managerial Perceptions

Abstract

Corporate Social Responsibility (CSR) is increasingly vital for businesses to operate ethically and contribute to societal development. In Bangladesh, CSR has evolved from charity to a broader sense of responsibility, with growing recognition of its importance in addressing socio-economic disparities. This study examines the importance of corporate social responsibility (CSR) in Bangladesh's banking sector, with a particular focus on the involvement of top and executive managers in CSR initiatives. Utilising a quantitative approach and a cross-sectional design, the research surveyed 500 managers and executives from various banks across Bangladesh through simple random sampling. The goal is to enhance understanding of the banking sector's CSR activities, the main driving forces behind them, and the extent of social engagement by banks. Results show that Bangladeshi banks generally rate their CSR efforts as moderate but demonstrate a strong commitment to CSR. The study identifies four key factors impacting CSR adoption: local and foreign influences, company reputation, economic performance, and cultural awareness. Factor analysis indicates these factors significantly affect CSR practices within the banking industry. Additionally, the research shows that a bank's level of social involvement is primarily influenced by economic conditions, with increased activity during economic booms and decreased activity during recessions. The study highlights the moral obligation and importance of equitable treatment in CSR policies, recommending that banks prioritize community programs, education, health, environmental sustainability, and employee welfare to enhance their competitiveness and reputation. Overall, this research offers valuable insights into CSR in Bangladesh's banking sector and presents practical recommendations for banking institutions and professionals.