What is Corporate Social Responsibility? Depending on the organisation, sector or even the country, the connotations of CSR takes different dimensions. Over the years, if the very definition and principles of CSR have undergone massive changes, growing from a narrow and often marginalized notion into a complex and multifaceted concept, so has the readymade garment industry of Bangladesh from its humble days of the early ’70s to becoming the second biggest garment exporter globally today. The challenges of adapting effectively to the changing equations amidst increased focus on ethical sourcing and environmental preservation have led garment manufacturers to attach more importance to CSR.
According to a Harvard Business Review article titled ‘The Truth About CSR’, underlines: “…companies have long practiced some form of corporate social and environmental responsibilities with the broad goal, simply of contributing to the well-being of the communities and society they affect and on which they depend. But there is increasing pressure to dress up CSR as a business discipline and demand that every initiative delivers business results. That is asking too much of CSR and distracts from what must be its main goal: to align a company’s social and environmental activities with its business purpose and values. If in doing so CSR activities mitigate risks, enhance reputation, and contribute to business results, that is all to the good. But for many CSR programmes, those outcomes should be a spill over, not their reason for being…”
However, in the changing milieu, the business implications of CSR seem to have overtaken the original purpose and goals, as a result of which more and more entities have now started contributing towards social and environmental objectives by integrating CSR as a strategic investment into their business, management and operations.
“The definition of CSR has been changing from Milton Freidman to John Elkington to Archie Carrol. Today, CSR is what Elkington has defined it as, which is also very popular – People, Planet and Profit. “The essence of CSR however is business profitability which also ensures well-being of people in the surrounding community, employee welfare and benefits within the organization, as well as that of the environment,” maintains AKM Ahsanul Hoque, Director – Research and Training of CSR Bangladesh , a non-profit organization with its objective to become the source of information, resources and advisory services on CSR in Bangladesh. CSR Bangladesh strives to raise awareness amongst CSR stakeholders; provide strategic, structured and systematic tools for CSR practice and adoption; evaluate, implement and monitor CSR for profit maximization, good governance and establish benchmark for CSR practices.
Ahsanul traces the beginning of CSR in Bangladesh garment industry to individual charity, which is a heritage in this subcontinent. “Though many claim of doing philanthropic activities, but those cannot be considered as true CSR. Earlier there were no CSR department or post in any organization, which was looked after either by the admin or the compliance departments. Gradually we made people aware of the need and importance of CSR, which resulted in creation of a position within the HR Department who could work in the field of CSR,” underlines Ahsanul adding it’s the intangibility factor of CSR, which is one of the main reasons behind its lack of its popularity. “Until CSR is linked with profit, people are not interested to invest,” says Ahsanul, adding, “Our experience shows if CSR can be placed within a business model, entrepreneurs will show more interest”. Though not very concrete, the effects of CSR are very much perceivable, feels the Director of CSR Bangladesh. “CSR that leads to workers’ welfare and a happy community is definitely a big plus for any business. With happy workforce, attrition level goes down while productivity increases… Happy workforce and happy community is a profitable business case for any organization,” Ahsanul explains.
For Chaminda Jayaweera – Manager CSR & Sustainability, Hop Yick Bangladesh Ltd ., CSR is paying back the stakeholders who have contributed in making the business profitable, be it the workers, the society or the environment from which natural resources have been used. Jayaweera underlines the improving awareness levels pertaining to CSR amongst garment manufacturers – which many are employing for image and reputation building also – a very encouraging development. Bangladesh Government and buyers’ push towards conserving environment and ethical sourcing is a force multiplier in ensuring CSR implementation, feels Jayaweera. “Having said that, I feel the industry still needs to do a lot in terms of CSR… To start with we can first address the basics of CSR before moving up the pyramid,” elaborates Jayaweera while underlining that CSR initiatives should come from one’s own accord/interest and not as a resultant of customer or Government’s influence.
Gabriel Adhikary’s take on CSR is steeped on the moral grounds! For the Managing Director of Grasp (a garment manufacturer specialising in woven bottoms apart from other products such as denim jeans, chinos, cargos, shorts, joggers, workwear, etc.) CSR is dispensing one’s moral responsibility towards the society rather than just looking at business profitability. Adhikary attributes his ethos of CSR on the perspective of his responsibilities towards the immediate society. Grasp as such has taken up the onus to provide free of cost education to all the workers’ children till fifth standard. Free onsite healthcare facility equipped with a doctor, two nurses and a lab technician to do blood tests, ECG, Ultrasound, etc. are some of the benefits the company provides to all its workers.
KB Mamoor, Director of Asrotex Group (one of the leading vertically-integrated knitwear manufacturer), underlines CSR as an integral part of the group’s responsibility towards ensuring workers’ welfare alongside that of the community through different activities like providing for workers’ welfare fund, financing schools, etc. Mamoor believes cashing in CSR for business profitability or keeping it a philanthropic activity depends purely on the intention of the doer. For Asrotex, more than business it’s the ethical and social responsibility which drives the CSR of the group. Asrotex also has allocated budget for CSR, which Mamoor is not keen to disclose, keeping true to his philanthropic principles.
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