1

Abstract

The aim of the research was to make an investigation in quest of effectiveness of CSR for poverty reduction because poverty is a great concern in national and global socio-Economic condition. The research idea was undertaken from a seminar hosted in Bourne Mouth University, UK in 2007. To conduct the research, the researcher has conducted a primary data collection session using in-depth interview as data collection method. As sample organization, Islamic Bank Bangladesh Limited (IBBL) has been adopted. The result of the research has been perceived that CSR is effective for poverty reduction. The most new point was explored that the mechanism of CSR practice is the most significant point of achieving poverty reduction by CSR. Business organisation will show interest to reduce poverty for two reasonsfrom the responsibility of corporate citizenship and for increase business profitability. The point was supported by primary and secondary data based on the sample organisation. The issue of collaboration between government and business organisation was discovered which can accelerate poverty reduction initiatives by CSR however, the researcher had to remain some unsolved issue for further research thathow global organisation will go to a poor society to reduce poverty and how they will be benefitted by reducing poverty under CSR practice.

Chapter one
Introduction
1.1. Background:

With the origin of the concept of Corporate Social Responsibility (CSR) in the 1950s, there has been a long debate over the functionality of this issue. CSR is seen both as a philanthropic and business issue. However, CSR is a broad term that covers a wide range of initiatives taken by any organization or corporation in addition to gaining profit through business. It is the commitment of the organization to the people they are dealing with. Before proceeding to any further discussion it is important to understand what we mean by CSR in order to understand its roles and functions in alleviating poverty. Werther & Chandler (2006) think CSR is a moral, economic and rational argument. One of the most quoted definitions of CSR can be found from World Bank. It defines CSR as, Corporate Social Responsibility is the commitment of businesses to behave ethically and to contribute to sustainable economic development by working with all relevant stakeholders to improve their lives in ways that are good for business, the sustainable development agenda, and society at large (World Bank, 2001). Another widely cited definition of CSR is that it is a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. (Commission of the European Communities, 2001). In fact CSR is the initiative that are targeted to do something for the well being of the society or the members of the society or the stakeholders who are the direct contributors for the development of a corporation, and not to do something that may harm the society or its members. (Vara, 2006). It is the initiative taken by the organizations voluntarily. CSR encompasses with it a wide range of initiatives like taking steps to cleaning the society, establishing industries that are eco-friendly, creating job and ultimately reducing poverty. Over the decades, especially with the rise of the concept of CSR, there has been a significant debate regarding the functionality and the necessity of CSR. Authors have been seen somewhat perplexed regarding the issue: to whom a corporation should show its primary responsibility (Weiser & Zadek 2000). And there are found to be some contradictory statements among various authors. Some have argued that it is the shareholders to whom a corporation should show its primary responsibility. Because shareholders are the owners of the organization, managers are employed to maximize their profit (Friedman 1970; Porter &

Kramer 2002). On the other hand some authors have taken their position for the stakeholders, and their opinion is that the success of an organization very much depends on the contribution of its stakeholders, and that is why organizations have some responsibilities to maximize the value of the stakeholders (Kennedy 2000). Friedman (1970) has viewed CSR as something which does not mean a financial profit for the corporations. On the other hand Porter & Kramer (2002) think that CSR is something that is a means of benefit for both the corporation and the society. Hence poverty reduction is one of the initiatives that CSR covers under its large umbrella. Although private sector is not a repository to the state, indicating that alleviation of poverty of the state or the society is the job of the government and not of the private sector, private sector can at least take a step to reduce it. However, with the setting of Millennium Development Goal by the UN, nations of the world have indicated an important agenda keeping in the mind what the private sector can contribute, that the private sector can play an important role in reducing world poverty (WBCSD 2004). Vara (2006) argued that still now some organizations or companies are operating their businesses with the poor of the society which are beneficiary for both the organizations and for the poor of the society, especially within a win-win structure. Through study of CSR and a companys social development commitment, it is understood that a corporation can take a great step to alleviate poverty, and that will not only enhance an organizations reputation, but also make a stable business atmosphere (Costello, 2007). However, it is demonstrated by numerous writers and scholars that an organization can come forward to solve numerous social problems. Petkus and Woodruff (1992) says CSR is the term that means to do good avoiding doing harm to the society. In fact, Mohr (1996) says that a company must behave in a way not to earn short term profitability rather a corporation has some responsibilities to the society.

1.2 Poverty Reduction:

According to World Bank, (1980 cited in archive, 2010) the definition of poverty is that when people suffer from scarcity of adequate fundamental needs like food, cloth, health, education, nutrition, safe water and overall health and safety and shelter then they are defined as poor. More specifically World Bank, (2005) has defined poverty as that when a person live under $1.25 each day then they are defined as abjectly poor and when the amount is below $2.5 then they are called poor. According to the definition, the more than 140 million people are abjectly poor in the world and 3.14 billion people live under $2.5 each day (WB, 2005). More than 2400 children die each day due to poverty in poorest village each day, 27-28% children are under weight for lack of nutrition (UNICEF, 2008), 1.1 billion people do not have access of pure water, 2.6 billion have lack of sanitation in developing country, (UNICEF, 2008). In the case of Bangladesh, the poverty rate is 40% (Financial Express, 2009). Jenkins. R, (2005), displayed a research report concentrating Latin America, where the scholar has an endeavour to show that CSR can improve the situation of the poverty. However, the author also explored that the poverty in developed country is possible to reduce by CSR with lots of complexities. As the above contents the author of the study portrayed the situation of developing country where the poor are categorized in poor and abjectly poor. The author proposed that the CSR can play an important role in the case of abjectly poor in the world. This is possible by implementation of CSR in real meaning. The view of Jenkins is not incredible. In recent years, lots of conference are being called by renowned research institution and Universities. In 2007, a conference was called in Bournemouth University titled asHolding Corporate Social Responsibility to account: its applicability in tourism development.( Koutra, C., 2007). After finishing the conference, Koutra. C., (2007) made the report where the main aim of the conference was not perceived positive. The author said in his report thatSo far within the tourism industry no tangible areas of responsibility for sustainable tourism development were found and not even the host governments expressed concern for it. However, it could be argued that the intelligent application of CSR can lead to poverty reduction if it is practiced in a holistic, responsible, transparent and accountable manner. (Koutra, C., 2007: 1)

The statement reflects clearly reflect that the issue of effectiveness of CSR on poverty reduction has raised ultimately. The issue is also practically perceived in the CSR practice of Islami Bank Bangladesh Limited (IBBL).

1.3 Poverty in Bangladesh: Before entering into the main discussion section, a brief portrayal of Bangladesh's socioeconomic condition is needed because it will help to understand the impact of CSR on Bangladesh better. Bangladesh is a South-East Asian developing country having the highest rate of population density of the world. Here in Bangladesh, the population density is more than one thousand people per square kilometer. Though gained independence from Pakistan in 1971, the freedom of economic solvency is yet to achieved. Unemployment, corruption, social crime, political and economic unrest are some of the characteristics that mark the nation. It is a Muslim country having 87 percent Muslims and Hindus constitute 12 percent of the total population. There are also people living of other religion. The constitution shows equal respect for all religions and that is why this country is often regarded as a religionneutral country. As far as economic condition is concerned, Bangladesh can best be considered as a developing country having 40 percent of the total population living below the poverty line. Moreover, Bangladesh is a huge victim of natural forces; cyclone, draughts, flood, river decay are some of the worst natural attacks that hit Bangladesh almost every year. The agriculture of Bangladesh is the main dominating sector for most of the people having more than 70 percent of the total population are indirectly dependant on agriculture. And it is seen that in spite of taking so many initiatives to have some improvement on education and health sector, these sectors still remain very poor (solidbangla, 2011). And the poor are generally rely much to some organisations and well off people for help. Islami Bank is one of the organisations that has dedicated its CSR practices emphasizing extreme poor of the country.

1.4 About IBBL:

Islami Bank Bangladesh Limited (IBBL) is a private commercial bank in Bangladesh which has been rewarded as biggest profitable bank from 2000 to 2010 for nine times out of some other 39 private banks without any marketing section (IBBL, 2011). Their involvement in CSR practice is considerably mentionable. The organization concentrates the poor (who are perceived defined as extreme poor as the definition of WB as mentioned earlier) in practicing CSR like education, health awareness, sanitary, tube well for pure water, cloth, food (by Islami Bank foundation) and treatment (by Islami bank Hospital). These practices are implemented not by another third partys management, rather by general employee. The employee assesses the help seeker surrounded in their residence in the community and report to the branch manager, then the necessary training and equipment are provided as the budget of the branch of IBBL. The website of the bank is insufficiently rich to view about the information update, however based on the information in website, paper sheet and talking to the branch manager, the author decides that the style of providing help to poor under CSR could be model of the issue poverty can be reduced by CSR practice by business organization. To investigation the fact, the author decides to start the expedition to produce an empirical truth.

1.5 Research Question: How CSR can participate in a vast range on poverty reduction? Research Aim: The aim of the study is to explore business and poverty relationship where the proper practice of CSR in effective style can be a significant tool for poverty reduction.

Research Objectives: 1. To analyze the CSR and its significance in different perspectives. 2. To make an overview about the relationship of business and CSR in the perspective of organisational own betterment. 3. To evaluate the initiatives of CSR for poverty reduction.

4.

Drawing a conclusion and recommendation producing a mechanism for poverty reduction by CSR activities.

1.6 Scope of the research: In broader view the research will range to socio-economic development of developing country. Though the author named the IBBL as sample organization, the overall target is to justify the impact of CSR on poverty reduction. Thus, the aim of the research will be surrounded by macro-economic development. In methodological perspective, it will go through positivism philosophy, deductive & qualitative approach. The data collection strategy is survey where data collection method is face-to-face and in-depth interview. The number of participant is eight where one branch manager, other two officer and five stakeholders those who has received the help from CSR program of IBBL. It should be mentioned that as undertaking the research issue is a result of the researchers ambition, and the proposal was prepared on the same issue, some significant parts of research proposal has been used in the research project.

1.7 Rationale of the research:

From above discussion it has been perceived that the situation of worlds poverty is dissatisfactory. For this lots of social problems occur. Poverty is a problem faced not only by the poor; it is a

social problem creating societal disorder. Crime, violence, overpopulation, public health crisis are some of the social problems which are the direct effects of poverty (Baneerjee, Benabou, and Mookherjee, 2006). CSR is being claimed by various research institutions and
authors are being introduced. Thus there is a great potentiality of using CSR practice in poverty reductions. If the study can find out the consistency of the effectiveness of CSR and poverty reduction, then a new era for poverty reduction might be introduced and the poor nationals will be benefited from the outcomes of the study. In the view of organizational development, the initiatives will enhance the social communication between organization and community which make an ultimate increasing flow of customers through creating a good corporate citizen.

8 After successfully conducting the research, both the poor and organizations will be benefitted in the financial sustainability. In broader view, the national and international initiatives will be enriched in their strategic decision for poverty concerns. The addition of research outcomes with researchers academic and practical experience, the future career will accelerate and the researcher will be encouraged and speedy to reach personal development goal.

1.8 Limitation: The author has to go forward in lots of limitation. Time constrains is the most significant one. In this short period of time, the ideal activities are hardly possible to do as the satisfaction of the author. The communication with participants, and some other expected people have been tougher to maintain. The friends and family those who achieved the experience about research of this stage, have been possible with lots of time and energy because of their own business. Language is another restriction which has created another challenge for the researcher because English is second language. Some qualitative explanation is complex which needs a critical knowledge of knowledge. To present all the necessary arguments accordingly, the researcher has to go forward in this restriction. Technological knowledge is another limitation for the researcher. In third world country like Bangladesh, the use of technology is rare, that is why there is a scarcity of technology in people. As a citizen of Bangladesh the author has the limitation of that knowledge. In some, cases some interesting recourses have not been possible to study relevant with the research. Also, the uses of graph, pie charts and some other picture have not been possible because of computer technology. Money is another limitation which has made the way of the research difficulties. The sample organization, IBBL is in Bangladesh. The travel cost is very high from Bangladesh to UK. The author could not go to Bangladesh for collecting primary data through face-face interview despite having desire. In spite of lots of restrictions, the researcher had an endeavor to keep the strength of research validity and reliability. The author of the research thinks that a valid empirical truth has been presented overcoming enormous challenge.

1.9 Summary:

The aim of the research is to make an investigation about the effectiveness of CSR on poverty reduction. To conduct the research the author decided to conduct a balanced and critical literature review regarding enhancement of the theoretical knowledge. Both the primary and secondary data have been determined to use. A methodology has been decided to organize where the method of primary data collection has been displayed with justification. The researcher intends to collect qualitative data by in-depth interview with a group of consistent number of participant. The author thinks that a valid empirical truth will be achieved at the end of the research expedition.

Chapter Two Literature Review:

2.1 CSR and Its Different Perspectives: Carroll (1991) has shown that there are four dimensions of CSR: Economic, Ethical, Legal and Philanthropic. Carroll (1991) opines that historically business organizations target was to gain profit but with the span of time, business organizations are coming up as a corporate citizen to show some economic, ethical, legal and philanthropic responsibilities to the society. It shows that CSR is viewed from four perspectives. However, the functionality is CSR is measured by numerous authors in a different ways. Some have argued in favour of earning profit, while others have gone for moral causes. For example, CSR is a moral cause of an organization. Angelidis and Ibrahim (1993) opined that corporate social actions are targeted to meet the social needs of societal members. Stewardship theory of Donaldson (1990) asserts that firms must go for the betterment of the employees and managers must do the thing that is right, regardless how the decision is averse to financial performance of the firm. On the other hand CSR is a means of maximizing profit is a framework developed by McWilliams and Siegel (2001). They have identified that a firm generally can maximize profit with the help of CSR. Many authors have spoken in favaour of firms financial benefits that can be best achieved through CSR. Authors have opined that firms do not generally engage in any kind of activity where there is no financial benefit. In fact all the activities of any firm are centered on earning and maximizing the profit. Regan (1998) also has spoken in favour of firms self interest while talking about CSR and its philanthropic actions. He too believes that in todays world business is meant to engage in any kind of activity that only has self interest of the firms. So, it seems that profit maximization is one of the objectives of CSR and that has a direct link with the self interest of a firm.

10

Some authors have also pointed out that CSR is a reputation building strategy. By means of CSR the reputation of a firm is essentially built (McWilliams and Siegel, 2001). And Freeman (1984) has stated that reputation is the thing by which a firm is judged whether it is successful in fulfilling customers expectations or not. And research has shown that CSR is able to enhance reputation of a firm (Freeman, 1984) Firms that have sound CSR strategies can attract customers attention, and customers are greatly motivated to purchase the products of those firm. CSR affecting purchasing decision of the customers is discussed by several authors and many of them have come to the point that customers generally prefer to buy the products of such companies or want to get services of such companies that operate their businesses without affecting customers' morals. Hence, companies that have sound CSR policies and implement those effectively are able to attract the attention of the customers and hence CSR is an effective tool to influence customers' purchase decision (Baron, 2001; Lyon & Maxwell, 2008; Roberts, 2003). Then again, firms are constantly using CSR to advertise them. And authors like Milgrom and Roberts (1986) have distinguished advertisement in two groups persuasive and informative. As CSR is an umbrella term, it encompasses within it some social causes. Poverty reduction is one of the initiatives taken by organizations for humanitarian causes. But it is also a business cause where finance is inherently linked. However, there is long debate about the functionality of CSR. And the task of CSR varies from country to country. Some even question the validity of CSR as far as its voluntary works are concerned. However, Frynas (2008) has defined CSR in a broader sense and he says that to mean CSR, it taken within it the following things: 01. That a company has some responsibilities for the betterment of society and natural surroundings. 02. That a company has responsibilities for its stakeholders. 03. That a company has some responsibilities with respect to manage relationship with the society they are operating their business. However, these things clearly show what role CSR can play in the society and it also shows its dimension of functionality.

11

So, it is shown that CSR can play many roles in a society that have numerous benefits for a firm. A firm can enhance its reputation through CSR (Freeman, 1984), and CSR is also a means of profit maximization that emerges from the self interest of a firm. Then again, CSR influences customers purchase decisions as stated by Baron (2001), Lyon & Maxwell (2008), and Roberts (2003). Studies have also shown that CSR can eradicate poverty of the society and eradicating poverty is one of the subject matters of CSR in todays world. Thus the key-point achieved from the point of view that CSR is a moral duty to stakeholders. This is essential for making a good business atmosphere. CSR is essential for making a long term business strategy. CSR is related to poverty reduction.

These points would be used in primary data collection and analysis.

2.2 Understanding Business and Poverty Relationship

Mohr, Webb and Harris (2001);Deegan, Rankin and Voght (2000) have argued that companies nowadays are in constant pressure to behave socially responsively and in maintaining profitability. Business organizations of todays world are not only the money gaining agents, rather they are the corporate citizens of the state. Earning profit and for the shareholders of the organization and behave responsively so societal matter are both the task of the managers of business firms (Mohr, Webb and Harris, 2001). However, todays business organizations are putting much emphasis on CSR with a view to alleviating poverty, because CSR is working as a vehicle that makes the linkage between profit and responsibility of the firm (Nelson and Prescott, 2003). Poverty or the alleviation of poverty has become the buzz world in recent time. For, alleviation of poverty has become important not only for the purpose of successful business operation but also to fight against terrorism and eventually to change the world. Poverty is a problem faced not only by the poor; it is a social problem creating societal disorder. Crime, violence, overpopulation, public health crisis are some of the social problems which are the direct effects of poverty (Baneerjee, Benabou, and Mookherjee,

12

2006). That poor and poverty can be business issues are stated by World Business Council for Sustainable Development (2005). Nowadays poor and poverty are seen not in terms of humanitarian issue but also in terms of profit, the fundamental tenet of business. The poor of the society are potentially good customers; they want charity, they are eager to be active player of economy (World Business Council for Sustainable Development, 2005). And hence if this issue is taken as one of the strategies of business, huge profit can be gained from this. This is also stated by McIntosh and Mohan (1999) who think that if businesses rethink their strategies, there will be found that the poor are potential markets side by side with the upper and the middle class, meaning that poverty can be a new strategic point for business organizations. Vara (2006) believes that it is one the main responsibilities of the private sector to make the poor a key player of the market. For sustainable development of the organizations as well as to the development of the society, poor are need to be included within the business and by means of which living standard of these people will be improved and poverty can be alleviated. The fact that private organizations can make a win-win attempt by operating its business by taking the poor into consideration is understood from the scenario that by operating business organizations can gain profit and simultaneously the condition of living of the poor will also be improved (Vara, 2006). Prahalad & Hammond (2002) also believe that the world can go to a mutual place of respect and prosperity if the private sectors and the government treat the poor with due attention. They believe that the world can reach to a better place if the poor are treated accordingly. There will have either negative or positive effect in the economic, social and political atmosphere of the world based on how the poor are treated. Like Vara (2006), Prahalad & Hammond (2002) also believe that if the multinational companies are involved in the development goal, the poor will be addressed accordingly, and it will bring benefit both for the companies and the poorest. Byrd (2006) has viewed the relationship between poverty and business in a new light, focusing on current social threat, terrorism. He says that alleviation of poverty is needed not because that poor are conducting terrorist activities, but for the purpose that fighting against terrorism needs new military tactics as well as revised and new economic development approaches. Sachs (2005) also thinks that combating terrorism also requires combating poverty as poverty is sometimes the mother of all crime and criminals.

13

Furthermore, as far as globalization is concerned it is found that a balanced economic development among different countries is needed and authors have opined that the expansion of global commerce is deeply threatened due to imbalance distribution of money. Global business is hindered and the disproportionate economy of the world creates gap between countries that are rich and that are poor (Hammond, 1998; Stiglitz, 2002). So, there remains a need to destroy the gap between countries for the sake of the expansion of business and by means of which demand of the poor, to get rid them from poverty, may be fulfilled (Hart, 2005). So, there is a growing need for the expansion of business to alleviate world poverty. Poverty and business are always interwoven in many societies. For example, in Bangladesh the women garment workers have little alternative but have to work inhumane hours and under precarious conditions that are determined by powerful buyers in global supply chains (Phil Bloomer, 2005). And statistics have shown that about one fifth of worlds population lives under $1 income, and almost half of the population of the world earn $2 every day (Prahalad and Hart, 2002). Poverty causes many obstacles to the social development and it is one of the main obstacles to boosting productivity. In fact, a secure atmosphere promotes business operations and Matthews (2002) think that "secure and stable condition is a must to operate business. As poverty creates unstable condition in the society various authors have argued that alleviation of poverty is a way to make a secure and stable condition. And Matthews (2002) also think that by means of alleviating poverty many obstacles can be overcome which helps reduce costs and so productivity is boosted. And now it seems that doing business without developing their life conditions is quite tough. If we look at present worlds scenario, there will be found clear evidence of numerous organizations attempt to alleviate poverty. Nowadays business is seen much concerned to alleviate poverty (Khalid Nadvi, 2004; Olaf Kula, Jeanne Downing and Michael Field, 2006). Considering all these issues, many organizations and government of many countries have taken numerous steps to alleviate poverty. In fact, poverty alleviation has been the headache for many thinkers and likewise, micro-credits are provided to the poor in many countries from a long time ago to alleviate poverty (Yunus, 1999). And today's business is now seen as a means of solution to alleviate poverty. In the past when business was causing poverty by means of corruption, pollution, and violence, (i.e. the establishment of colonization) in today's world, small and big business organizations and agencies have come forward to shift the relationship between poverty and business, to shift the nature how business and poverty

14

were addressed. And all these things are taking place because of the rise of CSR, Corporate Social Responsibility.

So, it seems that business and the reduction of poverty is interwoven with each other. Poverty is seen both as a threat and an opportunity to any business organization. Poverty creates and makes the scope to give rise to terrorism, corruption, instability and moral lapses, and all these are threat and obstacles for stable business atmosphere. Byrd (2006) and Sachs (2005) think that combating terrorism needs new economic tactics and that will make the society stable. So, in order to create a more stable business atmosphere and making opportunities removing threats organizations are concentrating to alleviate poverty under the name of CSR. Or at least removing poverty has marginal benefits for corporations. Prahalad & Hammond (2002) think alleviation of poverty is important both for the organization and for the poorest of the society. Matthews (2002) also believes in this. He says that by means of alleviating poverty, a stable atmosphere for smooth business operation can be created. As Vara (2006) and World Business Council for Sustainable Development (2005) think that poor are good customers and it is needed for the organizations to make them a key player of the market. These points will be used while collecting data and in the analysis of data. 2.3 Exploring CSR and Poverty Alleviation Initiative.

As poverty is an economic, social and moral problem, there is a great importance to remove poverty from society in order to make the world a peaceful place to live in, for poverty produces corruption, evil, terrorism and instability. Research suggests that there is a positive linkage between CSR and poverty reduction. Many authors held business organizations responsible for the rise of poverty and many have argued in favour of organizations attempt to reduce world poverty. The growing industrialization, globalization are giving rise to poverty, ecosystem degradation and injustice in the society (Daly 1990; Hamilton 2003; Saul 2005; J.W. Smith et al. 1999) And that is why organizations of today's world are seen to have a concern to reduce the negative impacts (J. Nelson & Prescott 2003; SIWI 2002; Wilson 2001). And CSR is the vehicle by means of which corporations find a way to reduce these negative impacts. In the theoretical level we see that there are many authors who have strong belief that the development of the condition of the lives of poor can be achieved through the

15

contribution of the private sectors. Among them Boutilier (2007) has viewed CSRs contribution to alleviate poverty by engaging in the actions with the development of the community in developing countries, particularly. He identifies how the contribution of a corporation can help reducing poverty. Nelson and Prescott (2003) also theoretically proved the positive impact of CSR in poverty alleviation and he argued that CSR is a vehicle by means of which the poverty of the society can be alleviated. He goes on saying that CSR is able to achieve some social objectives which are difficult to achieve by the action of the government alone. However, poverty alleviation is the buzz word of the present world and many international, national, government and non-government organizations, even local communities have taken poverty alleviation as one of the objectives. This statement is asserted by Ite (2005) who says that it is the business community that has taken CSR with a higher level of importance and poverty alleviation initiative as its subject matters. And Blowfield and Frynas (2005) have said that poverty alleviation is one of the development challenges and alleviating poverty is no less important than maintaining economic growth. That private sectors can make an attempt to reduce poverty is stated by DfID. According to them The private sector is sometimes seen as the enemy of the poor. However, it plays an important role in the economic growth that is essential reducing world poverty. As well as driving economic growth, the private sector can have a direct effect on poverty through its own policies and practices. (UK, DfID, Cited in Michael Hopkins,2007 , p.130). So, it seems that private sectors contribution to alleviate poverty is welcome by several authors and organizations. Whether CSR can reduce poverty or not is a question. As it is stated earlier that there has been made several attempts to alleviate poverty by numerous institutions, numerous ways have been identified to solve this crucial problem. However, with many other initiatives to remove poverty, CSR is seen one of them. Yunus (1998) think that poverty stricken people can get rid of poverty if supported and assisted by organizations in a friendly atmosphere. Though we dont find any suggestion from his statement whether CSR can reduce poverty or not, Kolodner (1994) has said directly that poverty reduction through CSR is possible. He argues that private organizations can play a vital role in reducing poverty though CSR programs. Fox (2004) has also shed light on the positive impact of CSR and poverty alleviation initiative. He also says that CSR is the vehicle by means of which private sectors can help reducing poverty.

16

That CSR can reduce poverty or at least can play an important role in the reduction of poverty is upheld by numerous authors as we have seen. One of the basic questions that arise about CSR and poverty reduction relationship is how CSR can reduce poverty. And some other questions have emerged regarding whether CSR can play an important role to reduce poverty through job creation, wage raising etc. or not. Authors have stated the relationship in a different way and among these statements, the statement of Rhys Jenkins (2005) is worth mentioning. And what he believes is that CSR can, in fact, reduce poverty by taking some general poverty reducing steps. And such steps may include the creation of job, ensuring equal wage for both men and women, raising wages upto certain level that does not go below the poverty line etc. Job creation gives rise to the scope to access to earning money for the large number of unemployed members of the society. On the other hand if equal wages is ensured, there will have a positive impact on poverty alleviation, and raising wage is also can play a significant role in the reduction of poverty, because it ensures the companys participation to provide wages that are not below the poverty line. Vara (2006) also says that the creation of employment and the social inclusion of marginalized communities are regarded as an organization's initiative to alleviate poverty. But she also added that this is mostly apparent in middle and small enterprises. That private sectors at least can come forward to reduce societal problems is also supported by Prahalad and Hammond (2002). They think that private sector can enhance prosperity and keep that prosperity going. CSR can reduce poverty from the society by ensuring a balanced economic atmosphere. Kotler and Armstrong (2004) think that an organization can deliver products that are consumable by the average customers. And they think that in this manner society's well being can be ensured. This idea is be grounded on the fact that most of the products supplied by developed organizations are not consumable by the myriad groups who are poor. There is another reason for their statements and that is the meeting of fundamental needs. If food security for the poor is ensured, at least one fundamental need will be ensured which can help reduce poverty. S. Vachani and N. C. Smith (2004) think that the one type of industry whose practice of CSR can be called poverty alleviating is the pharmaceutical industry. They have shown that this type of industry can reduce the price of some drugs which are beyond the ability of poor to buy. They call this type of reduction on price as "socially responsible pricing", because by means of which the products become available to the poor and in that way the poverty of the society are accordingly addressed.

17

According to DFID, "by following socially responsible practices, the growth generated by the private sector will be more inclusive, equitable and poverty reducing." (DFID, 2001, P.2) Maimunah (2009) gives an excellent example how an organization can come forward to alleviate poverty of the society. He gives the example of an organization namely, Syarikat Faiza Sendirian Berhad (SFSB), that came hand in hand with a TV reality program to develop the condition of living of impoverished communities. (SFSB, 2009) This organization is assisted by TV3 for publicity. Even information has been found that a proportional share from the purchase of a product of this company goes for the community development purpose. So, it is seen that organization can come forward to alleviate poverty. But practice does not always go in accordance with theory. And many authors do not believe in CSRs participation in alleviating poverty and many do not even like such ideas. However, as Dees (2001) says poverty reduction than wealth creation, through CSR is more of a mission of an organization. Some authors, however, did not like the notion that CSR can reduce poverty. For example, M. Blowfield (2005) does not believe that CSR can eradicate or reduce poverty. He goes to a further point asserting the idea that the goal of business is not to reduce poverty or to deal with those that are poor. And for these reasons CSR is little concerned with this harsh reality to alleviate poverty from the society. And Charles Nicholson, Group Senior Advisor of BP, says that although business of todays world is seen as a means to alleviate poverty, there is no measurement so as how far a business organization should go to take the responsibility to alleviate poverty. And so, it is seen the real world scenario of business and poverty alleviation initiative is somewhat bleak. Many authors have pointed out other objectives that have been achieved by CSR policies. But it is found from the statement of Shankleman and Selby (2001) that until today there has been found very little evidence of business organizations' involvement in alleviating poverty.

Though organizations can alleviate or make an attempt to alleviate poverty, still now poverty alleviation is not taken as one of the major objectives of CSR in the present time by many organizations (Rhys Jenkins, 2005). Rhys Jenkins (2005) believes that though some products of big industries are consumed by the poor and the poor are affected by such products, CSR policies have little or no impact on the reduction of poverty from the society.

18

B. Ali (2001) is rather pessimistic about the creation of job though the initiative of CSR. He has seen business organizations as business organizations. His statement is based on the assumption that the organizations that are more labour intensive are less competitive. His argument has been derived from rigorous research on football industry in Pakistan. And he finds that organizations are not willing to create more jobs that are beyond economically justified for those organizations. Rhys Jenkins (2005) does not believe that organizations are in constant pressure or in need to address the poor of the society and therefore there is no requirement for the organizations to generate employment for the poor of the society. Rather he believes that instead of taking initiative to reduce poverty, organizations do focus more on earning profit. That private sectors indeed can play a vital role in reducing poverty from the society and that business organizations tasks are to maintain profitability for its shareholders instead of giving much importance to social responsibilities are two of the notions address the limitations and functions of CSR of business organizations. Some authors have taken position on behalf of business organizations commitment to the society that advocates the implication of CSR to reduce poverty. Blowfield and Frynas (2005) and Nelson and Prescott (2003) have not only argued that poverty can be reduced through CSR, but also have said that it is the duty of the corporation to behave in a way that the poor and poverty are addressed. BloBoutilier (2007) and Kolodner (1994) also believe that CSR can play an important role in alleviating poverty. Even Yunus (1998) has argued that if the poor are assisted by the private sectors or the government, they can get rid of poverty. On the other hand some are skeptical about the implication of CSR. Like Dees (2001) and Blowfield (2005) do not believe that a firm should engage in poverty eradication activities instead of making profit. They like to divide the Governments job and business organizations job. However, these two types of reflections that are found form literature review about CSR and poverty reduction initiatives will be used for data collection and analysis.

Summary: The above mentioned paragraphs reflect the fundamental tenets about CSR, poverty reduction, the relationship between business and poverty and the CSR and poverty reduction

19

initiative. First of all, CSR is seen as an organizations commitment to the society, the ethical kind of commitment to behave socially responsively. CSR is a voluntary activity taken by an organization. The idea of CSR, as Vara (2006) says, evolves from the intention to do better for the society or the people or environment a firm deals with and not to do harm. It has been found that CSR is an umbrella term which encompasses a wide variety of tasks and functionalities. CSR is a reputation building tool; also it enhances productivity of the organization. Poverty reduction is one of the tasks addressed by CSR. Business and poverty or the reduction there of is a matter of consideration for many business corporations. Poverty creates barriers to the smooth ways of doing business. It has been found from the statements of various scholars and authors that by reducing poverty from the society, an organization can enhance its business scope and by this way both the organization and the poor of the society are benefited (Prahalad & Hammond, 2002; Matthews, 2002). Maimunah (2009) has shown how an organization in Malaysia took some steps to reduce the poverty in the country. He says that (SFSB), an organization spends a little amount of profit for the purpose of community development. Some authors have mentioned that corporation can reduce poverty by taking some of the steps like job creation, raising salary and ensuring equal wages for all. For example, Rhys Jenkins (2005) think that a firm can alleviate poverty by creating new jobs. But in this regard B. Ali (2001) is rather seen to be a bit pessimistic about the alleviation of poverty by creating new jobs. He argues that creating more jobs may result in mismanagement and it will have adverse effect on the organization. However, when the question arises regarding the effectiveness of CSR in poverty alleviation, it is also very apparent that CSR is little able to reduce poverty. And its role in alleviating poverty is very limited. Blowfield (2005) is seen very doubtful about the success new of CSR in terms of poverty alleviation. In fact theory is too far from the practical world and very small number of examples is found that address poverty reduction as one of the major objectives of CSR. Sometimes, poverty creates opportunities for business. But there is a controversy with respect to whether business organizations should involve them in reducing poverty or not, authors have mentioned different opinions about the organizations involvement in eradicating poverty. And these opinions reflect that eradicating poverty for the corporation lies in humanitarian causes and others have shown in the light of profitability. But poverty reduction can effect in the betterment of organization. So, these issues are fundamentally matters of headache for business organizations. The above mentioned paragraphs also show that the alleviation of poverty is fruitful for business and also it has humanitarian side. However, the above mentioned points will be used for data collection and analysis.

20

Chapter Three
Research Methodology

3.1 Introduction: Research Methodology is a set of consistent elements that direct the author to conduct the research to produce a valid empirical truth. As the mode of the research, the author decides to organize the elements in consistent of the mode of the research question that how CSR can participate in a vast range for poverty reduction. According to dictionary.com (2011:online version), diligent and systematic inquiry or investigation into a subject in order to discover or revise facts, theories, applications, etc. this definition indicates the methodology that help the researcher to control the sporadic thinking about expected investigation and go

21

forward through a systematic way. Pattorn (2009: online version) stated that research methodology is a highly intellectual human activity used in the investigation of nature and matter and deals specifically with the manner in which data is collected, analyzed and interpreted. Kumar, (2008:2) more specifically displayed the characteristics of research methodology where the author said that Research is a systematic inquiry. Research is an investigation into a subject or specific field of knowledge. Research is undertaken to establish facts or principals. Research is an original contribution to the existing stock of knowledge making for its advancements. (Kumar, 2008:2)

Thus it could be said that research methodology is significant to make an investigation to gather knowledge about specific issue which is correlated to the necessity of human being. As the research is correlated to the CSR and poverty reduction, the author things that a wellorganized methodology will be effective for conducting the research conveniently. To conduct the research the author emphasizes some points based on research process onion by Saunders et al, (2003).

22

It is perceived that in the design portrayed by the set of authors, the more significant elements of a research methodology are research philosophy, research approach, reseach strategy, time horizon and data collection process. 3.2 Research philosophy: According to the research onion, research philosophy is devided in two kinds-positivism and interpretivism. Positivism philosophy is is a set of epistemological idea that that occurs in social issues related to human activities. Positivism is the view that sociology can and should use the methods of the natural sciences, (e.g. physics and chemistry). That doesnt usually mean using experiments because there are all sorts of ethical problems with doing that, but positivists do believe that sociologists should use quantitative methods and aim to identify and measure social structures. The classical example would be Durkheims study of suicide. (Abbot, 2010: website) The main characteristic of positivism research is that the Generalisability is comparatively week than interpretivism philosophy. As the theoretical and methodological view, this is mostly fit with both qualitative and quantitative approach and deductive research.

23

Interpretivism is the opposite of positivism philosophy where it includes the very fundamental issues that occur concentrating the ground of social issue. Abbot, (2010) mentioned an example of interpretivism philosophy with crime. A positivist would argue that researchers can simply measure crime using quantitative methods and identify patterns and correlations. An interpretivist would argue that sociologists need to understand what people mean by crime, how they come to categorize certain actions as criminal and then investigate who comes to be seen as criminal in a particular society. (Abbot, 2010) Thus the author intends to develop the idea based on positivism philosophy because CSR is a social issue and its origin was introduced before. This study has an endeavor to explore the effectiveness of CSR on poverty reduction. 3.3 Research Approach: Research approach is a significant point of a research methodology. In theoretical vie, research approach is two kindsinductive and deductive approach. And in methodological perspective this is qualitative and quantitative approach. 3.4 Inductive approach & Deductive approach: Inductive approach is effective for producing theory. The researches intend to conduct a research from the idea or hypothesis from observation. Thus the primary characteristic of inductive approach is that it starts from an observation and ends through producing a theory. The Generalisability of inductive theory is stronger which is rooted in interpretivism philosophy. More specifically some more features of inductive research are Inductive reasoning works the other way, moving from specific observations to broader generalization and theories. Informally we sometimes call this a bottom up approach. Conclusion is likely based on premises. Involve a degree of uncertainty. (Burney, 2008:5)

Deductive Approach plays the opposite roles of inductive approach. After conducting inductive approach a theory become produced on which is used in the activities of human

24

wellbeing? Deductive approach includes the issue on those of activities for better exploration for better benefit from the theory. For instance, origination of CSR has been produced from an inductive research and to achieve better benefit from the CSR, when a research approaches to be conducted then this will be in deductive approach. This starts from theory and ends in specification via hypothesis and observation. Some primary features of deductive approach are Deductive reasoning works from the more general to the more specific. Sometimes it is informally called a |top-down approach. Conclusion follows logically from premises. (Burney, 2008: 4)

As this is conducted on CRS theory to justify its effectiveness for poverty reduction, consequently it goes to deductive approach. This is well-suited with positivism philosophy and case study approach because positivism philosophy includes the social issue concentrating human activities and case study approach emphasizes specific issue of an organization to make deeper understanding. This study intends to achieve deeper realization about practical effectiveness of CSR. 3.5 Qualitative and quantitative Approach: In methodological perspective research approach is divided in qualitative and quantitative. Qualitative approach is based on logic and the result of quantitative approach. This is also the composition of some words, arguments, observations and some other literature. Some basic feature of qualitative research is as follow The aim is a complete, detailed description. Researcher may only know roughly in advance what he/she is looking for. Recommended during earlier phases of research projects The design emerges as the study unfolds Researcher is the data gathering instrument. Data is in the form of words, pictures or objects

25

Subjective - individuals interpretation of events is important, e.g., uses participant observation, in-depth interviews etc.

Qualitative data is more 'rich', time consuming, and less able to be generalized. Researcher tends to become subjectively immersed in the subject matter. (Oliver, 2003)

On the other hand quantitative research is based on some numerical data which is mostly effective to assess the situation in grounded by the view of majority portion of participant. Graph, pie chart, numerical information, majority, minority etc are the mostly used keywords of quantitative research. Some primary features of quantitative research are given bellow-

The aim is to classify features, count them, and construct statistical models in an attempt to explain what is observed.

Researcher knows clearly in advance what he/she is looking for. Researcher knows clearly in advance what he/she is looking for. Recommended during latter phases of research projects. All aspects of the study are carefully designed before data is collected. Objective seeks precise measurement & analysis of target concepts, e.g., uses surveys, questionnaires etc.

Quantitative data is more efficient, able to test hypotheses, but may miss contextual detail.

Researcher tends to remain objectively separated from the subject matter. (Oliver, 2003)

Considering the features of qualitative and quantitative research approach, the author decides to adopt qualitative approach. Qualitative approach is supportive with positivism philosophy and deductive approach as well. In addition, as the effectiveness of CSR is judged by lots of quantitative research, to justify its effectiveness for poverty reduction, a deeper understanding should be achieved. As IBBL plays a vital role for poverty reduction

26

by CSR activities as according to its website, the author thinks that a qualitative investigation through case study will be effective. The author decides to avoid quantitative approach because the survey by close-ended questionnaire for data collection is the required for quantitative research. At the consideration of longer time for collecting quantitative data by survey from a large group of respondent is hardly possible for the short period of time.

3.6 Research Strategy: According to Saunders et al., (2009) research strategy is enables the researcher to make the investigation effectively. In other word the answer of the research question depends on choosing the proper research strategy. The book views that regarding selection of research strategy, the author should consider the mode of research question, aims and objectives, time constrains, range of existing knowledge of the researcher, the required resource available for the researcher, communication, accessibility to organization, philosophical ground of chosen subject accessibility to participants and some other necessary things that is related to the research. There are some types of strategy perceived mostly used by researchers are as follows Experiment Survey case study Action research, Ethnography (Saunders et al., 2009).

Experiment: According to Saunders et al., (2009) experimental research causes on any specific issue commonly based on social science, medicine, chemistry, physics, biology etc. Experimental research is well-fitted with inductive approach which produces theory starting from observation. The reason selection or avoid experiment: The researcher may be biased and interrupted.

27

Sample might not act as representative. Result may be utilized only in very certain situation. The response from people may be complex to weigh.

Survey: Survey strategy is the most popular research method mostly in business and management research. In general, it assesses the present condition of any particular issue. According to Saunders et al., (2009) everyday in newspapers, journal and some other media, survey result become published. Researchers collect and use primary data through close-ended and openended questionnaire in specific amount of people in certain area. The results become different as the changing of time and geographical area. Mostly, survey research is well-fitted with deductive approach. Reasons for adoption or avoid: The researcher has to ensure that a large amount of people will respond. It is difficult to deal with context. Flexibility is comparatively poor.

The analysis of data is comparatively easy however it takes long time. Considering the view the researcher shows reluctance to adopt survey method because there is a time constrains to conduct the research.

Case study: Case study is also another popular method to conduct a research in business and management area. Qualitative researchers adopt case study strategy to root out the insight history of any particular issue in particular area or organization which also well-fitted with deductive approach. Robson(1993:40 cited in Saunders et al., 2009) said that development of detailed

28

intensive knowledge about a single case or about a small number of related cases. In the same book, it has been viewed that the case study strategy is adopt to make a deeper realization of a particular case and to obtain the answer of questions Why, What and How. The data collection method of case study may include questionnaire, interview and observation. Reasons for adoption or avoid: Easy and quick access to organization if the researcher is the employee. It gives deeper understanding of real fact of the context. (Yin, 2003). The real source of idea about the situation like performance, obstacles and actions. Effective method to build up cognitive investigation. Good alternative to the group focus of psychology. Comparatively easy to maintain communication.

Action Research: According to Saunders et al., (2009), action research was first introduced by Lewin in 1946. The sum-up of this strategy is that it involves a number of organizations and result of one research from one organization is utilized for research in another organization i.e. One result influence another research. Action research is normally perceived effective in the case of organizational change management. The research result of a change becomes used in another change in management in another organization. Thus this is consequently significant for business management particularly in the case of organizational change.

Reasons for adoption or avoid: The involvement between participants and researcher may produce biasness.

29

Difficult to conduct because it is time consuming. Communication is hardly possible to motivate the respondents. It needs support in different aspect, resource and patience.

Ethnography: Ethnography is rooted in inductive approach. Ethnographic research is originated from anthropology which concentrates the social people that how people interpret the variable of research subject. According to Saunders et al., (2009) ethnographic research takes a longer period of time and not effective in business research.

Reasons for adoption or avoid: Ethnographic research is expensive, time consuming and hardly possible to conduct by a less experienced researcher. While observing for longer time the researcher may divert to own interest and the result may contradict with the reality. Very small amount of data can lead to false assumptions about behavior patterns. (Colorado State University, 2011)

The researcher decides to adopt case study strategy in IBBL, Magura district branch. The case study approach is supportive with positivism philosophy because this is the case of the practical implication of CSR. Considering the validity of the research, the author needs to obtain deeper realization of effectiveness of CSR program of IBBL and the way the poverty reduction could be reduced. If mechanism is perceived effective in poverty alleviation, a model could be emerged that will be recommended to other business organization to adopt. To motivate business organization for practice of CSR for poverty reduction, the author

30

intends to propose some points to government to facilitate the organizations. Thus, avoiding survey strategy in a large amount of participant, the author decides to adopt this strategy because this will enrich the authors existing knowledge. As the author intends to conduct indepth interview in different group of people concerned to CSR of IBBL and local community, every case study can be considered as some small case study (1993:40 cited in Saunders et al., 2009). 3.7 Data Collection Method: Data collection method are several kinds which are utilized according to the research approaches. Most popular data collection methods are Face-to-face Interview. Telephoning interview. Structured and semi-structured questionnaire. Focus group Questionnaire. Observation. Close-ended and open-ended questionnaire.

Face-to-face interview: Face-to-face interview is perceived as the common method for qualitative data collection. It includes both structured and semi-structured questionnaire. Structured questionnaire is the combination close-ended and open-ended questions where the participant can choose the selected answers provided by researcher and also can present their view. Some characteristics of close ended questionnaire are Questionnaires are fixed and the actual information may not come out through this. (Brace, 2008) It can draw misleading results because of limited range of options.

31

It can influence respondent to produce very simple answer to complex issue. The actual view of respondent cannot be produced because they are dominated by the question by researcher.

Some characteristics of open-ended questionnaire: This is the mixture of statistical and qualitative view. Complex to encode for analysis as the objective and research question. Hazardous for accurate interpretation. Complex to analyze. Interviewee is comparatively free to view their opinions. In some cases, this effective for enriching enough knowledge of the researcher about the issue. Unstructured and in-depth interview: Though the researcher has a semi-structured questionnaire, this is the base of starting interview with participants. While free discussion some new issue may emerge and the researcher asks them to make clear and like this interview goes in-depth. Eventually the researcher can realize the insight facts and can come to a decision. For qualitative research, in-depth interview is effective than other data collection method. Some features of in-depth interview: The response rate is comparatively high because reading question and thinking about answer and writing them may be complex than freely conversation. Easy to motivate participants. Both researcher and respondents can fulfill their curiosity about the concerned issue. Question is further explainable if needed (Brace, 2008)

32

Attitude can reflect the actual answer. Until clear understanding the researcher can run the conversation. One unsolved issue nay be asked to next respondent. In-depth interview nay be conducted by telephone.

The author decides to adopt the in-depth interview. According to Saunders et al., (2009), interview is also included in survey method. Thus, it could be said that though this is in-depth interview, it is consistently included in survey method. Though there are some limitation about telephoning interview like body language is not possible to read, phone network frequency may disturb and respondent may be biased by other person, the author has to adopt telephoning interview because of distance between Bangladesh and UK. The author decides to choose the organization Islami Bank Bangladesh Limited (IBBL) because the he was an employee of the organization and know about the CSR practice and its impact on poverty reduction. In addition, the author has also easy accessibility to the potential respondent and also aware of the socio-economic condition of Bangladesh. Special resource: The author intends to conduct interview with the respondents over telephoning interview. However, to accumulate the participants and communicate with them, one of his friends will be employed by money. A mobile telephone and the phone bill will be needed. The author employs the person titled as interview assistant at the precondition that the friend would use his mobile phone, author would provide bill. The primary responsibility of the interview assistant is that as the convenience of respondent, he is to go to them and make the connection with the researcher. 3.8 Data collection process: The author will talk to the participant and will note down the significant points concerned with the research question. Based on the entire realization, interview questions, and the points kept in the research diary, the qualitative data will be organized and retained to be use in

33

analysis. The interview and points may be taken by local Bengali language however, they would be interpreted in English finally as the language required is English by academic authority.

3.9 Ethical concern: According to Saunders et al., (2009) in primary data collection and entire research activities some ethical concerns nay raise. This is because the respondents or organization may be harmed by the information provided to researcher. Thus to avoid the potential ethical issue, the author is aware of some points below Before starting the interview the author will take permission from the respondents and IBBL by consent application. After getting their signature, the author will finally invite them to take interview. (see appendix) The participant will be given freedom to cancel any data at any time before using them in main stream research. The researcher will avoid any sensitive issue concerned to organization and participants. The feelings of respondent will be carefully watched whether any tension is emerging in their minds. In this case the author will technically avoid the reason of tension. The entire physical evidence will be demolished after using them in research project.

3.10 Sample participant: The entire number of participant is eight in number who will be invited for participating in telephoning interview. One of them will be the branch manager of IBBL of main branch of

34

district Magura, Bangladesh. The manager has been decided to invite for interview because the CSR activities are controlled by the concerned person. The manager will be able to provide adequate information about the effectiveness of CSR for poverty reduction and his experience. Another two officers of the branch of IBBL will be invited who are physically liable to manage the help to poor. This group will be invited because the way they provide help to the poor will be explored and the intension behind the help will be realized. Some other five stakeholders of CSR of IBBL of the branch will be offered. This group of people will be offered because they are the focus group of people of the research. The actual benefit will be realized of CSR and the actual intension of IBBL will be also realized. The author thinks that the person asserted above is effective to obtain necessary primary data for answering to the research question. 3.11 Time frame: Frequent time frame will be used to conduct interview from 15 October, 2011 to 31 November, 2011. The communication and appointment are difficult because the author emphasizes the convenience of participants. In addition, as this is in-depth interview, the author will take interview with one participant, analyze that informally, create some new questions and then will go to another participant as their convenience. The frequent time frame is convenient for this mode of data collection method. 3.12 Research Validity and reliability: According to Abbot, (2010) research validity and reliability differ each-other. Research validity is rooted in the entire activities of research which is cognitively displayed in research outcomes. More specifically, after reading the research, the reader if the entire activities can create a mental image to the reader then it will be considered as a valid research. to conduct a valid research as the mode of research question, the author has an endeavour to go forward consistently emerging idea from literature review. Research reliability is related to the effectiveness of its outcomes in practical field. Normally it is perceived that if the same result become produced from different research in the same subject or issue, then organizations and further researcher consider the research outcomes reliable and they become motivated to use them. However, reliability depends on the amount of participant, time, and research process and data collection method. The view of

35

participants is the significant point of reliability. Though, this is a short time research with lots of restriction, the author is aware of producing a reliable research outcome. 3.13 Limitation: Time constrains is the main limitation of the research. In this short period of time, to conduct the research, the author has to bow down to some limitation. To confirm more valid and reliable research, the author needs to conduct a quantitative research to make the arguments stronger of qualitative analysis however, for time constrains it has not been possible. Some more study about the poverty reduction should be conducted however, that has to be avoided. The Poverty reduction and its relation to CSR is also a new topic and enough literature and secondary data is hardly possible to search. However, the author thinks that overcoming the limitation a valid empirical truth will be yielded. 3.14 Summary: In summary, it is to say that the research idea has been built up on positivism philosophy where deduct and qualitative approach were adopted consistently. To maximize the research validity and reliability, the author selected in-depth interview method for primary data collection for building up the realization of CSR as a potential mechanism for poverty reduction. The main restriction of the research is time constrains which controls author to go as the own interest.

36

Chapter Four Analysis and Findings 4.1. Introduction: Finally the authors have come to the main section of this research after conducting a

mysterious expedition. The author is fundamentally decided and convinced to find a reliable and valid outcome of this research after passing the session of the collection of data. The data collection was satisfactory because of the author's intention was fully dedicated to collect data at the consideration of authenticity of the reality. In addition, the author collected the data keeping in mind the factors related with ethical issues. Then again in the process of data collection the author was satisfied with the participants because they were cheerful in their conversation. However, it is important to mention here that the author has been convinced to alter the title used primarily because of author's realization after primary research experience; the author has realized that CSR has positive impact on employee satisfaction and that satisfaction enhances organizational development because the poverty reduction actions are implemented by the hand of general employee to the Rural Development scheme (RDS) of the organization. This is more than the answer of research question where the question was How CSR can participate in a vast range on poverty reduction? The answer was reflected in introduction section where Vara, (2006), Porter & Kramer (2002), McWilliams and Siegel (2001) and Nelson & Prescott, (2003) viewed that operating their businesses with the poor of the society which are beneficiary for both the organizations and for the poor of the society, especially within a win to win structure.

37

To explore the answer of the research question the author conducted a primary data collection session with eight participants including the manager of the Branch Magura of IBBL, some other officer and some stakeholders those who received the help from the organization. Regarding conduct the research the author built the idea on positivism philosophy and decided to go forward through case study strategy. The qualitative and deductive approach was adopted and the data collection method was in-depth interview in survey strategy. In the case of using data, the author has followed the instruction of Saunders et al., (2009) where the categorization of data is suggested for qualitative approach as objectives and aim. As the data collection method was in-depth interview, the entire amounts of interviews are much in research diary. For the reason, the author has presented the qualitative data as the necessity to reflect the answer of the research question i.e. all the data has not been presented in the section of the research. Also time and words constrains are the considerable factors to present all the data in well-organization. 4.1.1. Findings in brief: The findings as the objectives against the aim of the research, before go to mainstream discussion, it could be said that being a service providing organization, it's services are often regarded as the acts of a good corporate citizenship and this action has impacts on employee satisfaction and this employee satisfaction has impacts on business profitability by the way of customer satisfaction. The view of Vara (2006) has been reflected as the author argued as presented in introduction that effective CSR practice is beneficial for both poor and organization. And the view of Bournemouth University has been supported in field work where the Seminar produced in 2007 that CSR can be effective for poverty reduction. It is to be noticed that the key findings have come from myriad sources; form the words of different authors, websites and journals. As we see that Benerjee (2007) has pointed out that CSR is a benevolent donation of the organizations and by the way of that donation the poor of the society find a shelter and the whole process of donation and shelter of the poor emerge from the obligations of an organisation to society. Mohr et al (2001) has also put much emphasis on organizations moral responsibilities and these authors have posited that CSR is a kind of moral activity of an organisation performed voluntarily. On the other hand according to World Business Council (2005) CSR has been seen as a way of socio-economic development tool. However, Finkelstein and Galal (1999) have seen CSR in a different way and what they believe is that CSR increases organisational values to the

38

society because by way of an organisation's involvement to the development activity, that organisation becomes well acquainted and popular in the society. And ultimately social communication goes stronger which is beneficial for organization enhancement (Morsing and Schultz, 2006). Since, in introduction it was displayed that out of 39 private bank the IBBL has been continuously getting best bank award without running any marketing section where some other banks are surviving with a marketing department with a huge amount of expenditure. The author argues that the practice of CSR is one of the key points among others. After viewing all the data, CSR has been seen as a driver of poverty reduction which has been reflected in the style of running the programs through RDS under CSR of the organization. If the author considers the findings at the view of Bournemouth University, then it could be said that CSR can play an effective role to reduce worlds poverty and the data by World Bank (2005) about poverty may be changed into an expectation. The new achievement of the primary research is that1. The mechanism of practicing CSR is the key point of poverty reduction than the amount of money. 2. The style of practicing poverty reduction increase communication between employee of the organisation and community (Frynas, 2005). 3. As employee can be involved with this great job, their (actually organisations value) value become increased to society (Hemingway and Maclagan, 2004). 4. Employee involvement increases in society and people choose to open an account through the employee who lives as their neighbour Stewardship theory of Donaldson (1990). 5. The flow of customers increases this way which is widely known as the key tool for organization development.

The above discussion is the sum-up of the findings in the combination of primary and secondary data. The entire discussion reflects the research question thatCSR is able to

39

alleviate poverty. And the practice of poverty reduction is also effective for organizational development. It should be mentioned that though there are lots of literature about CSR and its effectiveness on stakeholders, its relation to poverty reduction is hardly perceived available in literature because this is a new idea generated in very recent school of thoughts. 4.2. Data analysis: And likewise according to the findings of data, in this analysis chapter, the primary data has been divided into three sections that will be discussed in three stages. And these are: 1. Relation between CSR and poverty reduction. 2. CSR and organizational development. 3. Produce mechanism to promote CSR for poverty reduction.

4.2.1. Relation between CSR and poverty reduction. After the completion of field work regarding the effectiveness of CSR, it has been investigated by the author that the organisation, concentrate to address the miserable condition of the poor through its CSR activities. The primary data analysis confirms the view that this organisation's employees are very proud of making them a part of helping the poor. Many participants have mentioned that under the umbrella of CSR, this organisation address poor people, health, food supply, training program, education, awareness rising programs, and programs targeted on poor students. However, Rural Development Scheme (RDS) is another program that directly addresses the poor of the society and this program is done under CSR. When about the moral values of CSR are talked of this organisation, the author's concentration went to external stakeholders because these are the people who are helped in numerous aspects. One participant saysWhen my husband died by road accident, he left me two daughters with me. Being alone I fell in great trouble with my daughters. Then one day one my neighbours who used to work in Islami Bank informed me that Islami Bank can help me in this situation. I was in great trouble then because my headache was about my eldest daughter because she was 20 years old then, and her age was a source of great

40

trouble then. I became concerned about her social safety because Eve teasing is serious issue nowadays. But Islami Bank then arranged everything for her marriage with their cost. The bridegroom worked in the same bank as a security man. Then for my second daughter, they provided all the costs for her education. They also take care of our security. My younger daughter is in class six and has stood second in her examination.

This statement reflects the moral responsiveness that has been addressed through CSR. The security for underprivileged women is insufficient in this country. Sexual harassment is a threat to women in the society which is widely known in Bangladesh and some other Asian developing countries. In addition, in recent times, a new type of harassment has emerged which is known as Eve teasing. Some derailed or licentious people tease young girls and try to abuse. This is a question of social dignity for girls. Reports have been found that some girls committed suicide being victimised by eve teaser. According to a news of BBC, "Figures released by the Ain-O-Shalish Kendra (ASK), a human rights organisation reveal that 14 girls and women have taken their own lives over the past four months across the country as a direct result of the insults. (BBC News, 2010, 13 June). Another social problem which seriously concerned the people of the civil society is acid throwing to the young girl. Though, media is very much active to denounce this kind of violence and consequently maintain their responsibility to the society but the aftermath situation is seldom encountered by this kind of corporate company. The real help come through the IBBL by publishing article in their monthly bulletin to raise awareness against such a cruel practice and bearing the expense of the treatment of the victim is very much impressive measure taken out by the bank. One of the girl who got the help from Islami bank, her father says After the horrific incident to my girl, I was crying and undone. First I admitted my daughter to Magura Hospital. But the doctors told me she needed to be transferred to modern hospital with special burn unit in Dhaka for quick recovery and that was very urgent. At that moment I had no money even to afford her medical treatment in Magura. one of my cousin told me to contact to the official of the Islami bank and upon hearing all of the facts the officer of the bank managed her treatment in

41

Islami hospital, Dhaka. They carried all the cost for her treatment and they are also supporting her to establish in the society. I wish their progress every moment in my life.

It is found that, when women are financially well-off then their social base becomes stronger to survive. Also, poverty reduction initiative for poor is changing their financial condition i.e. poverty reduction is being caused and education is being encouraged of the children of the family which is reflected by the Bournemouth University that anticipated CSR is able to reduce poverty reduction. Another participant saidMy husband is a paralysed patient for last few years. He cannot work. I was in a great problem. Once, my neighbouring brother told me to give an application to Islami bank. I cannot write but he helped me. Then Islami bank gave me training to operate tailoring machine and after training, they gave me a machine. They also gave me to buy some cloths and I added some more from selling a cow of my house hold. At my home, I started a tailoring shop where I made dress and sell cloths in domestic way. Only female customers from my community comes to me, I dont sell or make male cloth. Now I can by medicine for my husband. Next year, I hopefully set a tube well in my home yard because my husband cannot bring water from government tube well. This statement testifies another work showing moral responsibility of this bank. Because of patriarchal social order in Bangladesh the women are not empowered and this is a great concern for the government of this country. A study of UNDP (cited in Abedin, 2008) showed that women who work in households are deprived of about 11 trillion USD because male members are the dominating the family. This study also showed that women even become oppressed in family instead of receiving appreciation for their contribution to household jobs. And such practice of CSR like this is appreciated because it addresses the empowerment of women in the society. And this is important not only in the context of a society or country but in the context of the whole world. Arora and Puranik (2004) supports such steps taken by organisation. They think that CSR is a very supportive tool for women empowerment because women can reduce poverty by CSR practice of business organization. And as mentioned earlier that Mohr et al. (2001) thinks that CSR is a kind of moral activity, we see that the statement of that person goes with the views of these authors.

42

However, the empowerment of women is not only the only moral issue of CSR for Islami Bank, they in fact play a vital role to education of so many. A stakeholder of Islami Bank who got direct help from this bank is now living in London. He says, The principal member of my family was my father who would run the family. Unfortunately he is physically disable now and is unable to do any job. My elder brother is the only member now who earns the livelihood for the members of our family. Currently he is working for the Islami Bank. It was very hard time before my secondary examination time to manage the exam fees. My brother realized the problem and he discussed that to the bank manager and the bank provided me half the amount of my fees. Later the bank also helped in time of my HSC examination. Most significantly they support me after getting scholarship at the University of Brighton. I had no money to manage all the expenses for my higher education here. And that time Islami Bank came to help me; they paid what the university owed me without any condition. I pray to God for their progression. Islami Bank's participation in supporting the meritorious poor students is an initiative to develop the educational sectors of the country. And this kind of participation of IBBL is surely a vital element for the development of society. And what the boy says refers to benevolent donation of IBBL. And this situation goes with the words of Benerjee (2007) who reflected that CSR is a kind of benevolent donation of an organisation. And this type of donation has direct or indirect influence on socio-economic development. Then one worker of Rural Development Scheme of IBBL said, 1. For the poor of the society we do a lot of works for them. We provide tube well, cheap latrine, awareness training about sanitation, seeds, tree plantation etc. We also provide training focusing on how to generate income doing household firming or doing tailoring, we also provide computer training and provide money to many families for the marriage of their marriageable girls. These are some of the activities we do for the poor of rural areas. Again, for tree plantation we give training. One of the priority based projects for the IBBL to rehabilitate the vast majority of the orphanage children until their mature age. Islami bank give a major donation to numerous orphanage in the country where the orphans are brought up with general education with a

43

mixed of Islamic subjects. One of the service user who finished his Dakhil exams under Dhaka Education Board said to the author, I had nobody in this world. I could not remember how I had been got the shelter by the noble project of the bank at the very early stage of my existence in this earth. I have been told that my whole family has been died in a fire blaze in our house. But getting all range of support from infant care to upbringing at this stage with the necessary basic human needs now I can admit that how proudly I am integrated with the mainstream society to enjoy my civil rights. I have already got a job and planned to continue my study in a university. I can boldly say such a positive step and very human approach clearly adhere the corporations true responsibility to the grass root level people and also shows un greedy and equal opportunity treatment to the people. Another participant says, 2. For lots of poor people of the country, Islami Bank hospital provides a great solution to their worries, for many not only can avail to better treatment but also get medications at discount of 25% than others. The World Bank (2005) defines the poor as the people who are not able to earn more than 1.25 USD per day and the abject poor are defined as those people who have less than 2.5 USD income per day. However these are the people who are solely deprived of sanitation, food, water, cloths, education and some other needs that are necessary for the well being of living. And from the above statements we can clearly perceive that IBBL is doing the right kind of job giving the poor shelter, food, education and health care throughout the country. As it was early mentioned that the people those who are unable to meet their basic needs are defined as poor (World Bank, 1980), the activities under CSR of the bank are fully dedicated to meet those needs like food, education, clean water, shelter etc. This happens because CSR can eradicate poverty of a family. Thus, it could be said that, the innovation in using CSR is possible to reduce poverty in the society. In addition, it is perceived that CSR plays significant role in tree plantation to reduce global warming which is a matter of great concern for the nations of the world. Global warming is a great concern for the nations of the world.Tree planting can and will make a valuable contribution to the fight against global climate change, as well as providing a host of wider

44

environmental and socio-economic benefits. We further believe that carbon markets in their various forms are key to providing an effective means of financing tree-planting activities on the scale needed to make a difference globally(carbonpositive, 2008 ). However, this primary data goes in accordance with Emerald (2011) Journal news where they mentioned that environmental development should be one of the initiatives of CSR that organisations should adopt. Moskowitz (2008) also viewed that CSR should be encouraged to take environmental issues with its objectives. As the research question, it is to say that the tree plantation is not only the issue of environmental sustainability. As the situation of poor people, this is widely known that this is a domain of financial source because tree gives fruit, flower, wood, shelter and many other goods. While taking interview, some participants reflected that Islami Bank provide help to the people those who are Islamic minded and kith and kin of the employee of the bank. The interview assistant, who was employed for assisting the researcher said thatThis bank give help to the people those who are relatives of the employee and Islamic minded. The researcher did not show interest the point of view because this may be their strategy. As the key point of the investigation is about poor, the target of the researcher is to concentrate whether CSR is effective for them. The branch manager scholarly made a numerical estimation about the effectiveness of CSR and poverty reduction. The entire amount of staff is 1068 in 251 branches throughout the country. If each branch can remove poverty of at least 50 family each year, then the entire amount of poverty reduced family is 12,550 and if each family contains 4 family member, then the entire amount will be more than fifty thousands. If we multiply this amount by entire 38 some other private bank, then each year about four million people could get rid of poverty cycle. As it was mentioned earlier that more than 40% people live under poverty line then the entire amount of poor people in Bangladesh will be around 60 million. Therefore only banking sector can remove poverty of Bangladesh within 12 years though there are lots of business industries are there in a country. If we think include the above estimation in terms of global poverty and amount of global business organization, then the estimation of poverty by World Bank (2005) and UNICEF, (2008), their estimation could be recalculated. It is true that there are lots of factors with the

45

issue, however, it has been supported that there is a potential of effectiveness on poverty reduction by CSR. The summary of the point of discussion is that CSR considerably participate in poverty reduction which was reflected in the seminar of Bournemouth University. If we consider this in broader perspectives, the local and international business organizations budget for CSR could be concentrated to poverty reduction.

4.3 Poverty reduction initiatives on organizational value:

Now the question is why business organizations would stretch their hands to poverty alleviation as the aim of them is maximizing profitability? Form the primary research the question may be viewed in two perspectives. Firstly, organizations can practice this as usually as the definition of philanthropic eye which was discussed in literature review chapter. More specifically if the CSR is Practiced as the view of Koutra, C., (2007) it could be argued that the intelligent application of CSR can lead to poverty reduction if it is practiced in a holistic, responsible, transparent and accountable manner. (Koutra, C., 2007: 1).

Secondly organizations could be benefitted in through increasing their growth by practicing CSR. The most interesting point in the research has been discovered that the style of providing help to the poor. It is perceived that more or less most of the local and international organization practice CSR however, most of the general employees do not know about this. The primary research gave the message about that is fascinating. The Branch manager of Magura branch says thatWe have program named Rural Development Scheme (RDS) under CSR practice. Though officially there are some staff to maintain the activities but the primary accessibility of the poor to the RDS is caused by general employee of the back. For example, one of our staff lives five kilometre far from the bank out of the city. A month ago he told me that a woman has to come back to her parents from her husbands home after being oppressed for dowry system. Her father is a day labour. My colleague talked to the girl and informed the fact to me. We provided her training,

46

on poultry firming in house hold and set up a firm under RDS under the monitoring of the colleague. Once the women sold chicken and made a profit. Hopefully, next time the profit will be double than first one. The interesting thing is that the women once told the colleague, I love my husband. He is not such a bad man. For the poverty he beaten me but now I can earn money. Can I offer him to live with me? I realized the emotion of the lady and communicated with her husband. He will come to meet me sooner. I have a plane to train him and provide necessary help to involve in work with his wife under the monitoring of my colleague who initially introduced the women to me. This data reflects that for poverty, lots of social problems occur. Poverty is a problem faced not only by the poor; it is a social problem creating societal disorder. Crime, violence, overpopulation, public health crisis are some of the social problems which are the direct effects of poverty (Baneerjee, Benabou, and Mookherjee, 2006). The initiative of the manager directly participate in those problem through poverty reduction initiatives by scholarly CSR practice.

However, the practice of CSR of different organisations is subject to criticism. The interview assistant also saidWhatever Islamic Bank does from their philanthropic concern, I think there is something business oriented intention behind. I think it is more of a kind of advertisement for them. But nonetheless they are doing good business. The branch manager of Magura District of Islami Bank asserted that, This may happen that our CSR programs can add an extra bit of honour or reputation for our bank but it is true that we do not do such things for advertisement at all. Every knowledgeable person of this society knows well what Islami Bank is. Our bank is governed by the laws of Islam and that does not allow flashing or displaying because it is bound with the rules and regulations of Islam which has strong prohibition for flashing, rather we do help the poor without letting others know. Then again Islami Bank Hospital is very well known to all and they all know that we do not think for profit from here. We also have other programs like orphanage education, women empowerment. We also provide foods for those who are disabled and poor

47

and old but none of these people know anything about our CSR programs, rather the people get help know what we do. Otherwise many does not even any knowledge about CSR. The author of this study agrees what he finds from the qualitative data. The author believes that encouragement works to expand the CSR activities of the organisations. Heath (2008) said, If sympathy suggests only philanthropy, we add that CSR demands empathy, an outside-in way of thinking and planning to help management reflect on its role in and impact on the society where it operates. Another point is hidden in this qualitative data, which is the mechanism of providing help to the poor where the employee is directly related to the poverty reduction activities. This involvement of employee is the base point of mechanism of providing help. Other participant viewsThis is very interesting that when I helped the divorced women, the community people became very happy. When I go to mosque to say prayer, the people value me. Though I am not the permanent in the community, live in a rent house as long as my posting is in this branch, the people count me as a community people. This happens for the help to the women. The social well-off people normally lead the community. They sometimes invite me in some social celebration, to be member of Mosque executive committee and some other social activities. I feel happy. Some of them come to my branch to open account in my reference. We give them good service. I also feel happy when go to office and come back home. However, I cannot help the poor as my satisfaction because the budget of my bank is insufficient. This statement clearly view that several thing are created by this system of practicing CSR. More concisely this mechanism of practicing CSR Participate in poverty reduction. Creates organizations value to the community. It builds employees value to the community. Create social communication between organization and community via employee.

48

Employee involvement in the community Employee empowerment Increase employee satisfaction Increase customers flow Accelerate organization growth.

Fig: 1.1. Poverty reduction and organizational growth

49

This is the way that organization can be motivated to increase the budget of CSR and divert to poverty reduction. It seems to the researcher that this cycle is the key point of making largest and profitable private bank pot of 39 in Bangladesh without running any marketing department. In addition, the author thinks that the state government also can inspire the business organizations to increase CSR practice and participate in poverty reduction. One of the officer of IBBL viewed asOff course, the collaboration between government and organization can be positive for poverty reduction because the responsibility of socio-economic development goes to government. Government can evaluate the organization in decision making about the crisis of socio-economic perspective. Government can give some other honourable status like CIP. This could be happened based on the rank of CSR participation in poverty reduction. This kind of initiatives can build up a closer relation between organization and government. Vara, (2006) and prahad & Hammond, (2002) are agreed with the participants view where the set of scholars viewed that the world can go to a mutual place of respect and prosperity if the private sectors and the government treat the poor with due attention. Summary: In summary three points may be suitable to make the readers understand the outcomes of the research. these points may be expressed by three questions. Is the CSR is effective for poverty reduction? How does CSR can alleviate poverty? Why business organization will spend money for poverty reduction under CSR practice? The answer of the first question reflects, indeed, the research question. The answer is yes. As some debates are hidden in the researchers mind then the answer should beCSR is potential to reduce poverty. If it is practiced in holistic, responsible, transparent and accountable manner (Kourta, C., 2007). The author of the study is interested to pronounce

50

morale accountable manner which means the organization is accountable to itself in real philanthropic eye. The answer of second question is indeed, the view of Kourta, C ., (2007) which was explored in primary research that the mechanism of practice of CSR for poverty reduction. The view of Kourta could be reflected in the system of providing help to the poor which IBBL follows. By involving the general employee in CSR practice for poverty eradication activities it is possible because there is no second-hand management for CSR. The answer of third question is that organisations themselves will be benefitted if they practice following Kourta, C., (2007). The enhancement of organization has been portrayed in a model (Fig 1.1.) which was produced in the primary research. This means poverty reduction, good mechanism and organizational development are closely co-related to each other. The entire relation could be portrayed in a model.

Fig: 1.2. CSR practice Model:

51

CSR is theoretically significant for stakeholders of a business organization which is supported by the scholars. In the respect of the research question, it has been perceived that for poverty reduction CSR can play a significant role.

Chapter Five
Conclusion and Recommendations
5.1 Introduction: The aim of the research was to make a qualitative investigation about the effectiveness of Corporate Social Responsibility (CSR) poverty reduction. To reach to the aim, the researcher started the expedition concentrating the research question How CSR can participate in a vast range on poverty reduction? To discover the issue, the author had a well-organized plan based on some objectives. As initial afford the author conducted a literature review concentrating the objectives. The first objective wasto analyze CSR and its significance. In this point of view the author came to the decision that CSR is actually is a morale responsibility of business organization which is significant for the society where the business organizations play to maximize their profitability. As this is the self-initiatives for organizations, the practice of CSR fully depends on their own accords. However, in general, it was perceived that CSR can help the internal and external stakeholders, the local and global environment. as the literatures, it was not perceived that it had make any example for poverty reduction. After all, the researcher realized that it could be counted as a significant tool for solving problems if human being. The objective two wasto make an overview about the relationship between CSR and organizations own betterment. In the literature review, it was perceived that the effective practice of CSR make a value of organizations to the society. The value of employee also increases to the organization and society which make philanthropic eye of stakeholders to the organization which can encourage organization to practice CSR in real manner. The third objective wasto evaluate the initiatives of CSR for poverty reduction. In this point of view, the literature was rare to evaluate, however, the author had to depend on the

52

primary research. It was perceived that the field of spending money under CSR programs could be effective for poverty reduction. The above view from three objectives pushed the researcher to make a primary research. Concentrating the idea, the researcher had to organize a research methodology based on positivism philosophy. Data collection strategy was survey and data collection method was in-depth interview. The interview was taken over telephone. The sample organization is Islami Bank Bangladesh Limited (IBBL). The participant was three general officer of the branch of the organization including branch manager and second officer who indeed, deals with the CSR activities. Other five were the stakeholders who already have received the benefit of CSR program. The group of people has been interviewed to make the realization about how they have been able to change their financial helpless situation. The staff of bank has been interviewed because making a realization about their good feelings. The entire interview session has completely satisfied the author to examine the impact of CSR on poverty reduction. This analysis and finding section of the research expedition was perceived most interesting to the author. Concisely in this chapter, three points have been explored. Poverty reduction is possible by CSR practice of business organization. Organizations have their own interest in practicing CSR for poverty reduction. Poverty reduction depends on the mechanism of using CSR and

5.2 Poverty reduction is possible by CSR: Both from literature review and primary research it has been supported that CSR is able to alleviate poverty. The primary data analyzed in chapter five shows that this is normally possible to use CSR for poverty reduction which is being currently practiced in IBBL. The issue has been supported by stakeholder, manager of the organization and some other literature review. According to the qualitative definition of poverty by World Bank, (1980) and numerical definition by the same organization (World Bank, 1980), the initiatives of IBBL is supported where they are assisting to fill up the basic needs of human life. As the

53

bank is providing training and money to make the poor self-depended through making financial accessibility and change the household financial crisis. The underprivileged people are getting food, strength their shelter, education, safe water, cloth and some other needs by money, training, ethical monitoring in primary stage and some other morale and benevolent instruction to stand up family financial foundation. Only IBBL is not the example for supporting the ultimate exploration of Bourn Mouth University presented by Kourta, C., (2007). As early mentioned Vara (2006) argued that still now some organizations or companies are operating their businesses with the poor of the society which are beneficiary for both the organizations and for the poor of the society, especially within a win-win structure. The issue is itself reflected in the definition of World Bank, (2001) where the world largest financial giant stated as Corporate Social Responsibility is the commitment of businesses to behave ethically and to contribute to sustainable economic development by working with all relevant stakeholders to improve their lives in ways that are good for business, the sustainable development agenda, and society at large (World Bank, 2001:3). It is widely known that the people live under poverty line are the extreme issue of sustainable development. In primary research the appointed coordinator for primary data collection for the research viewed that IBBL does not provide help until they are not adjusted with their criteria. In counter of the point, the numerical estimation of the branch manager of IBBL is valid where the participant proved how large local organization can alleviate poverty. In the above statement of World Bank, the relevant stakeholders are mentioned. IBBL provide CSR support through their employee. The help seekers are selected form the neighbour and relatives who could be defined as relevant stakeholders. The relevant stakeholders are mentioned in the definition of European Commission. a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis. (Commission of the European Communities, 2001). In this definition, their stakeholders is also mentioned which is harmonious with the numerical estimation of the manager of IBBL and World Bank. Thus the researcher can say thatif the business organisations practice CSR for poor people relevant to their direct and stakeholders, then the concern about world poverty is possible in a specific time scale.

54

5.3 Organizations have their own interest in practicing CSR for poverty reduction. Though, as definition, the business organisations are morally and ethically sought to practice CSR for poverty reduction and some other aspects. This is fully depends on their own willingness. If we expect enormous participation of organisation for practicing CSR for poverty reduction, the question may raisewhy would business organization stretch their hand to poor because for poverty reduction the governments are the responsible and the organizations are paying tax and tariff imposed on them? From primary research it has been supported that the practice of CSR as real definition, brings the benefit for the organization as well. Porter & Kramer (2002) think that CSR is something that is a means of benefit for both the corporation and the society. In addition, Costello, (2007) it is understood that a corporation can take a great step to alleviate poverty, and that will not only enhance an organizations reputation, but also make a stable business atmosphere (Costello, 2007). From primary research, the issue business atmosphere has been supported because through the poverty reduction activities, only the organisations do not show the moral responsibility to the stakeholder of the society, society also show a morale responsibility to the concerned organisation for their survival and enhancement. In primary research, it has been mentioned that one officer of IBBL claimed that for a little help to the poor of his temporary community, the social people show additional value to the staff. And as the people know that the help are provided from IBBL, then the positive value of IBBL increases to the society. The employee frankly mentioned the invitation by community leaders in different social activities. Also, the well-off people go to IBBL for open an account i.e. CSR practice for poverty reduction increase the flow of customer to the organization. The point is supported that IBBL has been continuously rewarded as largest private bank in the country with no marketing department where some other 38 banks are have to count huge amount of money for marketing activities. This is possible by IBBL because CSR positively handle in increasing financial benefit asserted by McWilliams and Siegel (2001) and Nelson and Prescott, 2003) as mentioned earlier. This has been possible by making a positive business atmosphere (Costello, 2007) in the country through poverty reduction initiatives. Organization could be inspired by increasing their CSR practice for increasing their profitabilitythis argument is supported by the primary research concentrating the sample

55

organization of the research. This argument is also strongly valued by the both McWilliams & Siegel, (2001) and Nelson & Prescott, (2003). The set of authors recommended the business organization to include CSR for reputation building strategy. Nelson and Prescott, (2003) also viewed that practice of CSR build up and increase social communication. The branch manager of IBBL did not mention that this is the strategy for making profitability, however, it could be realized that the practice of CSR is itself responsible for creating business atmosphere through building reputation. The manager and other officers firmly stated that this is the bank under Islamic financial rules and regulation where helping poor was included in organizational fundamental strategy from Islamic financial regulation. How the practice of CSR was included in the strategy of IBBL is not the factor, the fact is it is beneficial for both organizational enhancement and poors financial change. The point is reflected by Vara, (2006) who viewed this as win-win structure. Some readers may argue the issue of effectiveness of CSR for poverty reduction and profitability of IBBL without marketing team on the ground that most of the people of this country are Muslim and for that reason the overall people have a religious soft corner to the bank. The author intends to argue that there are some other Islami bank in Bangladesh like Al-Arafa Islami Bank, Shahzalal Islami Bank and some other conventional bank have opened Islamic banking branch however, their position in all aspects is far behind. The author argues that this is the strategic set-up which naturally created and spread out the reputation in society.

5.4 Poverty reduction depends on the mechanism of using CSR:

However, the new exploration of the research is that the mechanism of practicing CSR for poverty reduction has been explored significant. Because the long term management of CSR practice sometimes fall the social people in problem. For example, the shell company budgeted $7.5 in development the construction of loads and high way, hospital and water tower. Later it was perceived that the government fall in to a great problem because shell did not have any budget for supplying medicine for long time, water connection and some other maintenance cost (Banerjee, 2007). People revelled against government and create a political turmoil. Thus, the mechanism of spending money should be well organized. In the primary data, IBBL has been perceive aware about this kind of issue because after providing training

56

and money to the poor the concerned employee has to monitor the activities of the poor to make their financial sustainability. This is the discussion about other point of view about general strategy for organization which does not influence the interest in favour of organization profitability in win-win perspective. The question ishow does practice of CSR can bring wins for both organization and poor? From primary research it has been explored that the mechanism of providing financial assistance to the poor is significant. IBBL has been perceived aware about the point. The organization organised its strategy for practicing CSR for socio-economic development concentrating the maximum benefit from budget money for poor people which ultimately brings maximum benefit for the organization as well. The system of selecting help-seeker empowers employee giving the power of primary assessment the poor i.e. any employee can talk to manager about any of his/her neighbour or relative to be provided money under CSR. The involvement of employee in CSR is the most effective point of the CSR practice mechanism. More specifically three stages have to be touched to finalize the decision. They are- Employee, Manager and RDS. The system could be presented-

Fig: 1.3. Steps of selection beneficiary: The key point of their mechanism is that the poor become decided to provide help through the primary assessment of the employee. After finalizing the decision, the stakeholders are approved to be included in RDA section for getting financial assistance. In the above model in analysis section, it was extracted that the benefit of the mechanism of practice CSR brings benefit for both in a cognitive way. CSR successfully can alleviate poverty i.e. Poor are benefitted. (Vara, 2006)

57

Creates organizations value through increasing employees value to the community (Hamingway and Maclagan, 2004).

Create social communication between organization and community via employee. Employee involvement in the community i.e. social communications increase between community and organisation (Frynas, 2005).

Employee empowerment. Increase employee satisfaction. Increase customers flow i.e. increase profitability (Stewardship theory by Donaldson, (1990).

Accelerate organization growth. McWilliams & Siegel (2001) and Nelson & Prescott, 2003).

Therefore, finally it could be said that, poverty reduction is possible by CSR practice which is predicted by Kourta, (2007) in the seminar invited by Bourne mouth University. The precondition is that the CSR should be practiced followed by the view of the scholar thatHowever, it could be argued that the intelligent application of [C (SR)] can lead to poverty reduction if it is practiced in a holistic, responsible, transparent and accountable manner. (Koutra, C., 2007: 1). In brief the answer of the research question is that CSR can alleviate poverty. The ground of the answer is that organizations also can be benefitted from CSR practice in respect of poverty reduction. Regarding achievement of the win to win advantage (VARA, 2006), the mechanism of CSR activities is the corner pillar. In addition, government initiatives can inspire organisations to set up win to win structure.

5.5: Recommendation for further research: Though the entire research support the effectiveness of CSR on poverty reduction, the author has to retain some questions to be solved by future researchers in this issue. The author has to leave the questions because the entire research has been conducted in lots of restriction like time constrains, word limitation, lack of communication convenience with participants,

58

insufficient budget and distance between Bangladesh and UK. Also in the point of research experience of the author, the organization of contents and points of analysis the entire research has lots of complexities. In addition, the author cannot deny that poverty reduction by CSR is threatened by lots of complexities ( Jenkins. R., (2005). Most significant question is the accumulation of national and international organization with governments poverty reduction initiatives. It was perceived that the employee of IBBL have the chance of mixing community in suburban area where the social conditions is simple and easy. Is the social communication is possible to be created by poverty reduction in big cities? Government can inspire the domestic organization for participating in poverty reduction through CSR, however, what about global organization? The organizations run in developed countries are significant area for poverty reduction through CSR, however, how would you encourage them to invite them to come to poor country? How would you justify their benefit in terms of transferring the money under CSR activities? In the case of transferring money from organization in developed countries, how employee involvement in assessing poor would be possible to be caused? If there any opportunity comes to the researcher, the priority will be given in above complexities. 5.6. Summary: Though there are lots of limitation the researcher had to face to conduct the research, the validity is not beyond lacking. However, the question of validity and reliability were thought in the initial stage of the research. Considering the point of view, the author had decided to conduct qualitative research in the expectation that at least some new issue would be yielded for further research. In this stage, the author is satisfied because some grounds have been produced consistently. From the primary research, the new issue has been extracted that the mechanism of IBBL is effective in the socio-economic and cultural conditions of rural Bangladesh. If the organisations follow the mechanism of providing financial help to the poor, both the poor and

59

organization will be benefitted. The author also thinks that, to enrich personal development goal, the entire experience will be effective.

References

60

Abbott, D (2010). Sociology Revision - Methodology, Positivism and Interpretivism. Available: http://tutor2u.net/blog/index.php/sociology/comments/sociology-revisionmethodology-positivism-and-interpretivism/. Last accessed 22 November 2011.

Angelidis, J. P. and Ibrahim, N. A. (1993) "Social demand and corporate strategy: A corporate social responsibility model", Review of Business, Vol. 15, No. 1, Summer/Fall, pp.7-10. Arora, B. and R. Puranik (2004): A Review of Corporate Social Responsibility in India, in: Development, Journal of the Society for International Development, vol.47, no. 3, pp. 93 100 Available from http://www.palgravejournals.com/development/journal/v47/n3/pdf/1100057a.pdf, Last accessed on 30 October 2011

B. Ali, (2001), Warwick Business School/Save the Children presentation, in Resource Centre for the Social Dimensions of Business Practice, Partnershipshow do they impact poverty elimination? Retrieved on 26th October, 2011, from, www.rc-sdpbp.org?library/documents/resourcecentre/initiatives/doc128914.doc. Banerjee, A. V., Benabou, R., Mookherjee, D., (2006), Understanding Poverty, Oxford University Press, New York Baron, D (2001), Private politics, corporate social responsibility and integrated strategy, Journal of Economics and Management Strategy, vol.10, pp.7-45 Boutilier, R. G. (2007), Social capital in firm-stakeholder networks: A corporate role in community development, Journal of Corporate Citizenship, vol. 26, pp. 121134. Blowfield, M and Frynas, J.G (2005) Editorial Setting new agendas: critical perspectives on Corporate Social Responsibility in the developing world, International affairs, vol. 81, no. 3, pp. 499-513 Available from http:// http://onlinelibrary.wiley.com/doi/10.1111/j.1468-2346.2005.00465.x/pdf, Last accessed on 10 November 2011. Bloomer, P (2005), When jobs lock women into poverty, Oxford: Oxfam, available: http://www.oxfam.org.uk/what_we_do/issues/trade/art_bloomer_labour.htm. last accessed on 26th October, 2011.

61

Brace I. (2008) Questionnaire Design: How plan, Structure and Write Survey Material for Effective Market Research (2nd edn), London: Kogan page Brief, A.P. and Motowidlo, S. J. (1989) Pro-social Organisational Behaviours, Burney, A., Inductive and deductive research approach, viewed on 15 August 2011, Available from http://www.drburney.net/INDUCTIVE%20&%20DEDUCTIVE %20RESEARCH%20APPROACH%2006032008.pdf, Last accessed on 20 November 2011 Byrd, M. W. (2006). Combating terrorism: A socioeconomic strategy. Joint Force Quarterly(41): p. 15-19. C. Nicholson, (December, 2002), The Boundaries of CSR. Presentation for the CSR Europe General Assembly Meeting. Carroll, A.B. (2000), The four faces of corporate citizenship, in Business Ethics 00/01, Richardson, J.E.(Ed)., Dushkin/McGraw-Hill, Guilford, CT, pp. 187-191.

Carrol, A.B. (1991), The Pyramid of Corporate Social Responsibility: Toward The Moral Management of Organisational Stakeholders, Business Horizons, July-August 1991, pp. 3948 Available http:// http://cf.linnbenton.edu/bcs/bm/gusdorm/upload/Pyramid%20of %20Social%20Responsibility.pdf Last accessed on 21 August 2011. Colorado State University (2011a) Advantages and Disadvantages of Experimental Research [Online] Available from: http://writing.colostate.edu/guides/research/experiment/pop5d.cfm Accessed on 20 October 2011 Colorado State University (2011b) Advantages and Disadvantages of Survey Method [Online] Available from: http://writing.colostate.edu/guides/research/survey/com2d1.cfm Accessed on 20 October 2011

Commission of the European Communities, (2001).Promoting a European framework for corporate social responsibility, green paper, Brussels: European Commission, Costello, Brid., 2007, The Body Shop, MTV Do Scent To Raise Funds for Aids,

62

WWD, Vol. 193, No. 17, pp. 13 retrieved on 20 November 2011 from ebscohost. Daly, H.E., (1990),Toward some operational principles of sustainable development, Ecological Economics, vol. 2, no. 1, pp. 1-6. Deegan C, Rankin M, Voght P (2000), Firms disclosure reactions to major social incidents: Australian evidence, Accounting Forum, vol. 24(1), pp.101-130. Dees, G.J. (2001). Enterprising nonprofits: A toolkit for social entrepreneurs. New York, NY: John Wiley & Sons Inc. Department for International Development (DfIF) (2003) DFID and corporate social Responsibility: An issue paper, London, UK.

DFID, (April 2001March 2004), Socially Responsible Business Team strategy: (London: Department for International Development), p. 2. Donaldson, T. and Preston, L. (1995), The stakeholder theory of the corporation: Concepts, evidence, and implications, Academy of Management Review, vol. 20, pp. 65-91. Emerald journal news. (2011). 10th international conference on corporate social responsibility. Available: http:/emeraldinsight.com/product/journals/newsstory.htm? id=2691&PHPSESSID=ckbtu9kqiju42nk9toqq119nr7

Fox, T., (2004). Corporate Social Responsibility and Development: In quest of an agenda. Development, vol. 47, no. 3, pp. 29-36. Freeman R.E., (1984) Strategic Management: A stakeholder Approach. Massachusetts: Pitman Publishing Inc. Frynas, J.G. (2008), Corporate Social Responsibility and International Development: Critical Assessment, Corporate Governace: An International Review, vol. 16, no. 4, pp. 274-281 Available on http:// http://onlinelibrary.wiley.com/doi/10.1111/j.14678683.2008.00691.x/full, Last accessed on 25 September 2011.

63

Friedman, M., (1970) The Social Responsibility of Business is to Increase its Profits, New York Times Magazine, September 13, 1970, Retrieved on 24th October, 2011, from, http://lst-kieser.bwl.unimannheim.de/Downloads/SS05/Text_Friedman.pdf Hammond, A. L., & Prahalad, C. K. (2004). Selling to the poor, Foreign Policy, vol. 142, pp. 30-37. Hamilton, C., (2003), Growth fetish. Allen & Unwin, CrowsNest, N.S.W. Hart, S. L. (2005). Capitalism at the Crossroads: The Unlimited Business Opportunities in Serving the World's Most Difficult Problems. Wharton School Publishing, Upper Saddle River, NJ Heath,R.L. (2008). corporate social responsibility. Available: http://www.instituteforpr.org/topics/corporate-social responsibility/, Last accessed on 18 September 2011 Hemingway, C. and P. Maclagan: 2004, Managers Personal Values as Drivers of Corporate Social Responsibility, Journal of Business Ethics 50(1), 3353. Available from http:// http://organized-changeconsultancy.wikispaces.com/file/view/The+Influence+of+an+Organisation.pdf, Last accessed on 24 September 2011. Ite, U.E. (2005), Poverty reduction in resource-rich developing countries: what have multinational corporations got to do with it?, Journal of International Development, vol. 17, no. 2, pp. 913-929 Available on http://onlinelibrary.wiley.com/doi/10.1002/jid.1177/pdf, Last accessed on 16 September 2011.

JENKINS, R. (2005), Globalization, Corporate Social Responsibility and poverty, International Affairs, vol. 81, pp. 525540. Available from

http:// http://onlinelibrary.wiley.com/doi/10.1111/j.1468-2346.2005.00467.x/pdf, accessed on 21 October 2011. Kennedy, A.A., (2000), The End of Shareholder Value. Orion Business, London.

64

Khalid Nadvi, (2004) Globalisation and poverty: how can global value chain research inform the policy debate?, IDS Bulletin, vol. 35, no. 1, pp. 2030

Kolodner E. (1994), Transnational Corporations: Impediments or Catalysts of Social Development?, Occasional Paper No. 5, World Summit for Social Development, Geneva, UNRISD. Kotler, P. and Armstrong, G. (2004). Principles of Marketing. New Jersey: Pearson Prentice Hall.
Koutra, C., (2007), Holding Corporate Social Responsibility to account: its applicability in tourism development, In: First Annual USA-Africa International Business Conference UAIBC. Harnessing the Expertise of Business Professionals, Academics and Government Officials for Economic Development., 29-30 November 2007, Detroit, Michigan, USA.. (Unpublished) http://eprints.bournemouth.ac.uk/12285/

Kula, O., Downing, J. and Field, M., (2006) Value chain programs to integrate competitiveness, economic growth and poverty reduction, Small Enterprise Development , vol.17, no. 2, pp. 2335. Kumar, C.R. (2008) Research Methodology. New Delhi: APH Publishing Corporation. Kumar, M. Dileep (2007) Emotional Intelligence for better Work place Emotions. [Online] Available from: http://www.indianmba.com/Faculty_Column/FC344/fc344.html Accessed on 25 October 2011.

Lyon, T P & Maxwell, J W (2008) Corporate social responsibility and the environment: A theoretical perspective. Review of Environmental Economics and Policy, vol. 1, pp. 122 Maimunah Ismail, (2009), CORPORATE SOCIAL RESPONSIBILITY AND ITS ROLE IN COMMUNITY DEVELOPMENT: AN INTERNATIONAL PERSPECTIVE, The Journal of International Social Research, Vol. 2, no. 9, p.8. Matthews, V. (2002). Poor Choices for forgotten consumers: MARKETING: In ignoring the less well-off, advertisers are denying themselves access to a lucrative and loyal market, Financial Times, p. 16.

65

M. Blowfield, (May 2005) CSR: Reinventing the Meaning of Development?, International Affairs, vol. 81, pp. 515-524 McIntosh, M., Mohan, A., 1999. Mapping the Research Knowledge Base. Linking Poverty and Business Practice, Working Paper Series, University of Warwick, England. McWilliams, A. and Siegel, D. (2001), Corporate social responsibility: A theory of the firm perspective, Academy of Management Review, vol. 26, pp. 117-127. Michael Hopkins, (2007), Corporate social responsibility and international development: is business the solution? Available: http://books.google.com/books? id=4IqtKZ8JlCwC&pg=PA131&dq=CSR+and+poverty+alleviation&hl=en&ei=JOioToyCA sOJrAfKmNmPDA&sa=X&oi=book_result&ct=result&resnum=1&ved=0CDMQ6AEwAA# v=onepage&q=CSR%20and%20poverty%20alleviation&f=true Last accessed on 26th October, 2011. Milgrom, P. and Roberts, J. (1986), Advertising as signal of product quality, Journal of Political Economy, vol. 94, pp.796-821. Mohr, L.M., D.J. Webb, and K.E. Harris (2001). "Do Consumers Expect Companies to be Socially Responsible? The Impact of Corporate Social Responsibility on Buying Behavior." Journal of Consumer Affairs, vol. 35, no. 1 , pp. 4572. Mohr, Lois A. (1996), Corporate Social Responsibility: Competitive Disadvantage or Advantage? In Proceedings of the 1996 Marketing and Public Policy Conference, eds Ronald Paul Hill and Charles Ray Taylor, Chicago: American Marketing Association, pp. 48-49 Morsing, M. and Schultz, M., (2006), Corporate social responsibility communication: stakeholder information, response and involvement strategies, Business Ethics: A European Review, vol. 15, no. 4, pp. 323-338 Available from http:// http://onlinelibrary.wiley.com/doi/10.1111/j.1467-8608.2006.00460.x/pdf, Last accessed on 11 September 2011 Moskowitz,J.(2008). The growing importance of corporate social responsibility.

Available:http://ethisphere.com/the-growing-importance-of-corporate-social-responsibility, Last accessed on 12 November 2011 Nelson, J. and Prescott, D., (2003), Business and the Millennium Development Goals: A Framework for Action, International Business Leaders Forum and UNDP, London

66

Pattron D.D (2009) Research Methodology [online] Available from http://www.authorstream.com/Presentation/drpattron68-138583-Research-MethodologyCONTENTS-Constitutes-Topic-Select-Limitations-method-Entertainment-ppt-powerpoint/ Accessed on 19 October 2011 Petkus, Ed, Jr. and Robert B.Woodruff (1992), A Model of the Socially Responsible Decision-Making Process in Marketing: Linking Decision Makers and Stakeholders. In Proceedings of the Winter 1992 American Marketing Association, eds Chris T. Allen et al., Chicago: American Marketing Association, 154-161 Porter, M.E. & Kramer, M.R. (2002), The Competitive Advantage of Corporate Philanthropy, Harvard Business Review, vol. 80, no. 12, pp. 56-69. Prahalad, C.K., and Hammond, A. (2002) ,Serving the Worlds Poor, Profitability, Harvard Business Review, September 2002: 48-57 Prahalad, C.K., Hart, S., (2002), Serving the worlds poor, profitability, Harvard Business Review, vol. 80, no. 9, pp. 48-57. Regan, M.C. (1998) Corporate Speech and Civic Virtue. A.L. Allen and M.C. Regan (eds) Debating Democracys Discontent: Essays on American Politics, Law and Public Philosophy, pp. 289306. Oxford University Press: Oxford. Robson, C. (2002) Real World Research (2nd edn). Oxford: Blackwell.

Roberts, S (2003) Supply chain specific? Understanding the patchy success of ethical sourcing initiatives. Journal of Business Ethics, 44, 159-170. Sachs, J. D. (2005), The End of Poverty: Economic Possibilities for Our Time, New York: Penguin Press. Saul, J.R., (2005), The Collapse of Globalism: and the Reinvention of the World, Penguin Group, Australia. Saunder, M., Thornhill, A. and Lewis, P.(2009), Research Design for Business Students, 5th edition, Harlow: Pearson. Shankleman, J & Selby, S (2001) Understanding the poverty business interface: experiences from Tanzania. London, Environmental Resources Management/Resource

67

Centre for Socially Responsible Business Available on http:// www.rcsdbp.org/section4/infcsum2.pdf, last accessed on 2 August 2011. SIWI, (2002), Corporate Responsibility to Facilitate Sustainablility in the Water Sector. Report Number 16, Stockholm International Water Institute. Available: http://www.siwi.org/downloads/Reports/Report%2016%20%20Founders%20Seminar %202002.pdf. Last accessed on 26 October, 2011 Smith, J.W., Lyons, G. & Sauer-Thompson, G., (1999) The bankruptcy of economics : ecology, economics and the sustainability of the earth, Macmillan Press, New York. Stiglitz, J. E. (2002), Globalization and its Discontents, W. W. Norton & Company, New York Vara, E. P. (2006), Corporate Social Responsibility in Latin America, The Journal of Corporate citizenship, vol. 21, Spring 2006, pp. 61-68 Available:http:// http://www.greenleaf-publishing.com/content/pdfs/jcc21pein.pdf?productid=325. Last accessed on 23 August 2011 Vachani, S. and Smith, N.C. (2004), Socially responsible pricing: lessons from the pricing of AIDS drugs in developing countries, California Management Review, vol. 47, no. 1, pp. 11744. Syarikat Faiza Sendrian Berhad, (SFSB) (2009), Santapan Berkhasiat Sepanjang Hayat. (An Everlasting Nutritional Food). Available: http://www.faizarice.com/index.htm. Last accessed on 23 October 2011. WBCSD (World Business Council for Sustainable Development) (2004) Doing Business with the Poor: A Field Guide (Geneva: WBCSD). Weiser, J. and Zadek, S., (2000), Conversations with Disbelievers, The Ford Foundation, Viewed on 2 November 2011, http://216.65.35.60/pdf/convdisb.pdf. Werther, W. B., Jr., and Chandler, D. A. (2006). Strategic corporate social responsibility. New York: Sage Publications. Wilson, R., (2001), Corporation Social Responsibility: Putting the Words into Action, paper presented on RIIA-MMSD Conference on Corporate Citizenship.

68

World Bank, 2001. World Development Report 2000/2001: Attacking Poverty. Washington D.C: World Bank. World Business Council for Sustainable Development., 2005. The World Business Council for Sustainable Development Report, viwed on 15 January 2007, < http://www.wbcsd.org>. Yin, R.K. (2003) Case Study Research: Design and Method (3rd edn). London:Sage. Zeider Yunus, M., (1998). Poverty Alleviation: Is Economics Any Help? Lesson from the Grameen Bank Experience, Journal of International Affairs, vol. 52, no. 1, p. 47.

Bibliography

Agarwal, S.K. (2008), Corporate Social Responsibility in India , Response Books: New Delhi Babbie, E.R. (2010), The Practice of Social Research,12th edition, Cengage: Belmont Banerjee, S.B. (2007), Corporate Social Responsibility: the good, the bad and the ugly, Edward Elgar Publishing Ltd: Cheltenham

Baxi, C.V. and Prasad, A. (2009), Corporate social responsibility: concept and cases: the Indian experience, Excell Books: New Delhi

69 Benn, S. And Bolton, D. (2011), Key Concepts in Corporate Social Responsibility, sage Publications: London Bueble, E. (2009), Corporate Social Responsibility: CSR communication as an instrument to consumer relationship marketing, Grin Verlag: Cherry, K. (2005) Correlational studies [Online] Available from: http://psychology.about.com/od/researchmethods/a/correlational.htm , Last accessed on 21 November 2011 Cooper, S. (2004), Corporate Social Performance: A Stakeholder Approach , Ashgate Publishing Ltd: Aldershot Corporate Social Responsibility: Partners for Progress ,(2001) ,OECD: Paris Crane, A., Matten, D., Moon, J. And Siegel, D. (ed) (2008), The Oxford handbook of Corporate Social responsibility, OUP: Oxford Crotty, M (1998) The Foundation of Social Research: Meaning and Perspective in the Research Process, London: Sage Denscombe, M.(2010), The good research guide for small scale social research project, 3rd edition, Open University Press: Berkshire DJS Research Ltd. (2009) Qualitative Research, [Online] Available from: www.qualitativeresearch.org.uk/ , Last accessed on 23 November 2011 Frederick, W.C. (2006), Corporation, Be good!: the story of corporate social responsibility, Dog Ear Publishing: Indianapolis Hawkins, D. E. (2006), Corporate Social Responsibility, Balancing Tomorrows sustainability and Todays profitability, Palgrave Macmillan:Hampshire Hond, F.D., Bakker, G.A.D. and Neergaard, P (ed) (2007), Managing corporate social responsibility in action : Talking, Doing and Measuring , Ashgate Publishing Ltd : Hampshire Idowu, S. And Louche, C. (2010), Theory and Practice of Corporate Social Responsibility, Springer: London Kakabadse, A. And Morsing, M (ed) (2006 ), Corporate Social Responsibility, Palgrave Macmillan: Hampshire Kotler, P. and Lee, N.(2005), Corporate social responsibility: Doing the most good for your company and your cause, Wiley : New Jersey Krishna, C.G.(1992), Corporate Social responsibility in India: a study of management attitudes, Mittal Publications: New Delhi Kumar, A. (2002), Research Methodology in Social Science, Sarup & Sons: New Delhi

70 Lyer, G.R.(ed), (2000), Teaching International Business: Ethics and Corporate Social Responsibility, International Business Press: New York May, T. (2011), Social Research, 4th edition, Open University press: Berkshire Michael, L. (2004) Quantitative and qualitative approaches to research [Online] Available from: www.psy.dmu.ac.uk/michael/qual_aims.htm, Last accessed on 21 November2011 Neuman, W.L.(2006), Social Research Methods: Qualitative and Quantitative Approaches,6th edition, Pearson Education : Boston Office for National Statistics (2000) Qualitative Research [Online] Available from:http://www.ons.gov.uk/ons/about-ons/who-we-are/services/data-collectionmethodology/what-is-qualitative-research-/index.html Last accessed on 23 November 2011. Pannerselvam, R. (2004), Research Methodology, Prentice-Hall of India Pvt. Ltd : New Delhi Punch, K.F. and Punch, K. (2005), Introduction to social research: quantitative and qualitative approaches, Sage Publication: London Research Portals Ltd. (2011b) What is Qualitative Research? [Online] Available from: http://www.marketresearchworld.net/index.php? Itemid=64&id=10&option=com_content&task=view Last accessed on 22 November 2011 Schreck, P. (2009), The business case for corporate social responsibility: Understanding and measuring economic impact of corporate social performance , Physica-Verlag: Heidelberg Schwartz, M.S. (2011), Corporate Social Responsibility: An Ethical Approach , Broadview press: Ontario Sims, R.R. (2003), Ethics and Corporate Social Responsibility: Why giants fall , Praeger Publishers: Westport Visser, W., Matten, D., Pohl, M. And Tolhurst, N.(2008), The A to Z of corporate social responsibility, Wiley: Chichester

71

Appendix-1 Participant Consent letter

MBA Primary Research Mohammad Zahiruzzaman, London College of Business, University of Wales

Dear Sir/Madam, Thank you for helping me by participating in the research project. This letter will clarify you about the aim of the research and the commitment we shall adhere to conduct a successful

72

research. Your active involvement will greatly help the researcher to understand the current CSR practices, its affect on the poor and rural people to improve their life and the extent of poverty eradication achievable from the society. Please sign the letter if you would like to take part in this research program.

Research Topic: CSR and poverty reduction: a qualitative exploration of Islamic Bank

Bangladesh, Magura branch.

Research Objective-The aim of the research is to collect information about CSR initiative and activities adopted by Islamic Bank and its impact on society to alleviate poverty. The key point of telephonic discussion will be your thinking and suggestions about the CSR practices implemented by Islamic Bank, where you have received some kind of economical help or you are directly or indirectly benefitted by their CSR activities or where you actively work as an employee. The main objectives are1. To discuss and explain corporate social responsibility from different perspective of organisation. 2. To analyse its significance in society to emancipate the poor from the hurdle of poverty . 3. Discussion on the CSR and its philanthropic view point of organisation to the society. 4. To make a conclusion of CSR activities and responsibility of organisation on community development .

Research Questions: Most of the questionnaire would be asked on individuals level, how the organisation helping the poor to alleviate poverty by its CSR activities and whether they help them genuinely, bearing any intention of interest and obligations and whether the people and community received help was fruitful and has made significant impact on their lives and societal development. The questions would be varied and depended on the individual circumstances; which will help the researcher to extract and draw a conclusion of the topic.

All of your opinion will be treated strictly confidentially and will be used solely for the purpose of academic research. If you like, I am requesting you to send me your valuable response over phone, email, post or by fax. Please let me know your preferable choice and

73

time. We shall strictly follow the ethical guideline issued by London College of Business, UK and Islamic Bank Bangladesh Ltd. I would also like to assure you that the information will be gathered from you, by no means would be harmful to you or to your organisation in any circumstances. You have unanimous right to withdraw any information or data at any time. All the paper based data will be kept in a locked cabinet when not in used. All electronic data will be kept password secured.

Sincerely, Mohammad Zahiruzzaman 6 George Street,Brighton, BN2 1RH, UK Mobile-07723535247 Ph-01273622587, Fax-01273670521, Email-titobyte@yahoo.com

Consent

I......................................................agree to participate in the primary data collection exercise to be used for MBA dissertation. I further confirm that I know my right to withdraw from the research at any time. Name........................................................... Signature and Date...................................................... Address............................................................. Phone/ Fax no......................................................... Email no.........................................................

Appendix -2 Participant Interviews

As per the requirements of the research, telephonic interviews were conducted and the author here presented three translated copies of interview in order to show the mode of conversation. The author

74 has avoided some discussion which were maintained for curtsey and deemed to be unnecessary in the context. First Interviewee Delwara Begum Vill-Gabtoli,Dist- Magura, Bangladesh. Conversations Start: Author- Hello, As-Salamu-Alaikum Chaci (aunty), I am Tito (authors nickname) calling from England. How are you? D.B- Wallikum-assalam, I am fine. I saw you when you were very young, I will not recognise you if iI see now. I know regarding why you are calling. Rupali (Interview assistant) told me everything. How are you now? Author- yes, I am very well Chaci. Actually I will not ask you anything very complex. Even I dont have any readymade set of questions in front of me. I will ask you from everydays simple matter; what do you think and what is your advice or comments on some matters. Whatever you will say to me, I will keep a record and I will listen to it again and again and make some analysis. Is that ok? D.B- Yes, its ok. Please dont make it long, as I am very busy with my work. Author- I will not take too long time at all. I heard the terrible news of uncles accident, I also went to see him in the DMCH hospital, but unfortunately he passed way. Most of the truck drivers are so reckless in Bangladesh. There are lot of accident happened in each day. D.B- Yes, People are dying every day for reckless driving and Allah knows how many families are falling to misery. Author- Yes, I also know from my mother about your hardship. But didnt you receive any help from the government? D.B- yes, but it was such a complex and lengthy process, I did lot of struggle to get that. Author- Then how did you start your dairy farm? D.B- Thats a long story. I was in great trouble with my two daughters Rina and Bina after their fathers death as he left me no economical support for the daily living. My great concern was my eldest daughter Rina, being in her twenty was often subjected to eve teasing on her way to college by profligate youngsters. At that moment I did not have capability to arrange her marriage. But one day my neighbour Abdul , work as a security man in Islami bank told me he could ask the bank whether they can help me at that situation. The bank manager quickly responded to my distress and helped to me. Theygave some money and bore all the expense for Rinas marriage. The bank manager also offered me a bank loan to open a small dairy farm from which I can run my family. So I bought 6 cows and looked after myself. Author- You could have arranged Rinas marriage after her graduation!

75 D.B- No, I was very worried about her safety. Author- With whom you arrange her marriage? What the bride groom is doing? D.B- My son in law is working as a peon in Islami bank. He is also helping her to finish her study. Author- O.k., thats a very good; so are you able to run your family from the dairy farm? D.B- yes, on average I sell around 10 litre milk everyday and earn between 300 to 350 Taka. Author- How will you say the help of Islami banks to you and your family? D.B- I think they are great; they helped me on my critical time. Without their help I was not able to stand on my foot. They also help in Binas (younger daughter) education by giving a monthly stipend of Taka 300. This can cover all her tuition fees with books and other expenses as well. I want to give her higher education as she stood as a second girl in class six. Author- Do you have any future plan with your dairy farm? D.B- Yes, I will make it large day by day. I have also plan to set up a hatchery next year. Author- So do you think if people get help like you, they can get out of poverty more easily? D.B- Yes, if people are given necessary training and help to do something worthy, they will not be spoiled themselves starving in the house. Author- Chaci, you know there are many widows in the village who have really a very miserable life. Do you think Islami bank can help them? D.B- Yes, So far I know they have already helped some destitute women and few of them has become quite well off. Islami bank often help the poor who has almost nothing. I am grateful to them and pray to Allah for their well being. Author- Chaci, I think I spoke with you a lot today, Ill speak with you another day. Khoda Hafez, Chaci D.B- O.K, Khoda Hafez.

Second Interviewee
Rifiqul Haque 119a St. Jamess Street, Brighton, BN2 1TH Conversations Start: Author- Hello, Good afternoon, its Tito(authors nickname) calling from London, How are you Mr. Rafiqul?

76 R.H- Yeah, Good Afternoon. I am fine. Who are you? Author- I am Tito from Bangladesh. Basically I am studying here in London and doing my dissertation at the moment. I have learnt that Islami Bank sponsored you to study in University of Brighton. Could you please tell me how the bank helped you in your study and in what extent? One thing I want to mention you before hand, I will keep a record of our conversation for my research. Do you have any objection? R.H-No, I dont have any objection for that, my father died when I was very young, since then I have been brought up by my elder brother who works in IBBl, Magura branch. From class six to ten, I achieved the highest mark in the whole class. As my struggle was informed to the bank by my brother, they provided me half of the amount of my SSC exam fees. Then they helped me in my HSC exam as well. When I got my admission in University of Brighton with conditional scholarship, I searched all the means to support my study. Luckily the bank came to help me and sponsored my study. Author- Do they have any condition with their help? R.H-Although they have already offered me a job when I would go back to Bangladesh, I dont think they bore any other intention rather than pure help. As I have been studying Banking and Finance here and feel a sense of duty towards them, I also want to contribute my knowledge in their development. Author- How do you think their contribution in your life? R.H- I cannot express in language how I feel about them. They have changed my life. I am very grateful to them. I pray to Allah for their continuous development. Author- As a matured student do you think organisation like IBBL can effectively play a key role in reducing poverty, social welfare and development? R.H- This is without any doubt that they can be a major player in reducing poverty and social development. I can simply cite myself as an example of that. Without their help, I wouldnt have come in UK for receiving higher study. If they can educate 100 people like me in a year, we can build our country and eradicate poverty from our society. Author- Thank you for your time to give the interview, wish you a brilliant success in life. R.H- Thank you too. Take care.

3rd Interviewee Rahima Bibi Village- Kazipara, Magura Bangladesh.

77

Author-Hello, As-Salamualikum Bhabi, How are you ? R.B- Walikum-assalam, Who are you brother? Author-Sorry to disturb you bhabi, this is Tito, Sahins younger brother from Machpara (authors village), speaking from London. I phone to you today for a specific purpose. I am doing a research, simply I can explain you its about Islami banks initiatives to help people outside their own interest and whether it can remove poverty substantially. R.B- O.K, but I dont know much of that, how can I help you about it. Author- You dont need to be worried, this is a normal discussion. I just want to know how is your family going since Jamir (her husband) Bhai has been abed with paralysis. R.B- Yeah, I passed really a traumatic situation when your bhai (brother) had fallen to illness. We could not even feed our starving children two times a day. The children were sent to work in wheat firm to make a livelihood. I always wanted to do something but could not do it for lack of money and proper skill. Seeing our distress, our neighbour Majid bhai told me to get training on tailoring, a scheme taken by Islami bank at that time for helping girls. After four months, when I finish the tailoring course, they generously distribute sewing machines to all the successful members. Author- Did they give you any money or provide any bank loan after that? R.B- Yes, they gave me 200 Taka as well which is very small though, I used the money to buy some cloth for my business. They also offered me to get a bank loan of Taka 5000, if I wished. Author- So did you take the bank loan? R.B- No, I did not. I was not sure how the women in the village would respond to make clothe from me. Instead, I sold a cow and bought other necessary items and some cloths to set up a small tailoring shop for making clothe in a domestic way. Author- How are you doing your business now? Are you getting enough response from the village? R.B- Oh, yeah, not so bad. I am getting more orders day by day. I mostly make cloth for women and kids. People from surrounding village also come to me as I charge very cheap price. I also sell readymade garments in my shop. Author- how is your children now? Have you send back them to school? R.B- Yes, they are very well now. I can sufficiently support my family now. I am taking good care for my childrens schooling, as well treating my ill husband. I can buy enough medicine for him. I have decided to set up a tube well in my home yard next year. Author- you must be happy now. R.B- I am indeed, I am only worried about my husbands recovery now. Please pray to Allah for him. Author- I will pray for him.

78 Bhabi, can you please tell me whether the activities of Islami Bank on people like you are helping to be solvent and reduce poverty from our society or not? R.B- Yes, sure. They are obviously helping marginal people to make a way of earning daily livelihood and feed their family, encouraging people for education and training; thus helping to be solvent. Author- thank you bhabi. My interview has finished, I will speak with you another day. R.B- O.K, Khoda Hafez.

4th Interview Mr. Mizanur Rahman Manager, Islami Bank Bangladesh Ltd, Magura Branch.

Conversations start
Author- Hello, Assalamu Alikum, Am I speaking with the manager of Islami bank Magura branch ? M.R- Yes, Walikum Assalam, I am Mizanur Rahman, manager of Magura branch Islami Branch. Whom am I speaking with please? Author- I am Tito( authors nickname), you may heard about me and research details from my interview assistant Miss Rupali Akter , Bahadurpur, Razbari. M.R- Oh, Yes. How are you? Author-Oh Yes, well, I am fine. How are you Sir? M.R- I am well too. So how can I help you? Tell me please what do you want to know? Author- You know I am doing a research under university of Wales. My research subject is corporate social responsibility. First I want to inform you that whatever well discuss, everything will be recorded. I want to know about Islami banks CSR activities, how your bank is engaged with various social developments and income generating activities for the poor rural people rather than profit making. M.R- No problem, although we have a special program named Rural Development Scheme, we try to help people in numerous way to bring out from poverty. We specially arrange an annual training program by which we give a limited number of unemployed youth various training to be self employed. We also help the vulnerable people by providing easy bank loan through RDS programs. We help to empower women by educating them and giving them necessary skills through our annual training program. We teach our employees to convey the message in the society how to make

79 contribution through learning and development, educate farmers and rural people so that they can get higher yield from intense farming and improve the environment at the same time. Author- What kind of training you provide to the people? M.R- We usually provide a number of training which are quiet demandable on job prospects or people who are more ambitious to be self employed. We also assess the ability of candidate and cost to set up any business project. We usually arrange training on Poultry, Nursery, Tailoring, Welding and Fabrication, Cow fattening, Boutique and computer courses. Author- How do you arrange these training? M.R- We have agreement with Magura Vocational Institute on which we send 50 candidate each year. They receive training absolutely free from the institute; in exchange we give a certain amount fees to the MVI. When the candidates finish their training we give them a small amount of money as gift from the bank and advices them how the bank can help them to set up their own business. Author- Do you help any other way to the people? M.R- We have so many problems intricate in our society that this is very hard to get a quick remedy of all the problems. We are trying to build strong public sentiments against dowry and acid burning in our surrounding community. Acid throwing to the girls is the worst phenomenon of social decay now days in our society. Last year we helped three acid burnt girls in our area. Author- How are you helping with acid burnt victims? M.R- We try to quickly transfer them to our sister concern Islami hospital where we carry the cost of all medical treatment for the victim. We also help them to rehabilitate and establish independently in society. Author- As you have mentioned earlier that you try to improve environmental impact from intense farming, could you please tell me why do you want to improve it? M.R- We always believe environmental development is vital for a sound economy in the society where bank can operate their business activities more smoothly with long term benefits. There is a reciprocal relation between poverty and environmental development. Only alleviating poverty can ease environmental stress. Similarly, environmental development accelerates attaining the economical objectives. For this reason we always emphasis all environmental issue need to be solved effectively. Author- What kind of CSR initiatives have you taken on Environmental development? M.R- Every year in rainy season we take tree plantation program, we plant mainly fruit trees on both side of the road, which is not only preserving the nature, but also helping by providing extra nutrition and food security to rural poor people. We have also plan to take the program on fallow land and on the bank of the Gorai River. Author- As this part of the country are often stuck by natural calamities, how do you think Islami bank respond to it? M.R- Although we have very limited capabilities, we try to help people affected by natural disaster. In every flood, we always distributed medicine, dry food and cash money to the poor in our local area.

80 We also helped them by distributing easy loan facilities to build their home and set up their work or business. Author- How can you assess Islami banks CSR activities to generate income and reducing poverty from the society? M.R- I think that our overall activities on helping to raise the income for the poorer is so far quiet satisfactory, however it has some limitation as well. We dont have a huge budget to satisfy all the help need to rectify the problem. Some of our donation work indirectly to serve the objectives. Suppose we help the orphanage in Magura where 60 young boys and girls are being cared and brought up with proper education, they will one day keep contribution in the society. Author- Can you please give a rough idea how your CSR activities will impact on overall economy? M.R-Overall in current figure, the entire amount of staff is 1068 in 251 branches throughout the

country. If each branch can remove poverty of at least 50 families each year, then the entire amount of poverty reduced family is 12,550 and if each family contains 4 family member, then the entire amount will be more than fifty thousands. If we multiply this amount by entire 38 some other private bank, then each year about four million people could get rid of poverty cycle. As it was mentioned earlier that more than 40% people live under poverty line then the entire amount of poor people in Bangladesh will be around 60 million. Therefore only banking sector can remove poverty of Bangladesh within 12 years though there are lots of business industries are there in a country. Author- Could you please tell me how you maintain your CSR activities?
M.R-We have program named Rural Development Scheme (RDS) under CSR practice.

Though officially there are some staff to maintain the activities but the primary accessibility of the poor to the RDS is caused by general employee of the back. For example, one of our staff lives five kilometres far from the bank out of the city. A month ago he told me that a woman has to come back to her parents from her husbands home after being oppressed for dowry system. Her father is a day labour. My colleague talked to the girl and informed the fact to me. We provided her training, on poultry firming in house hold and set up a firm under RDS under the monitoring of the colleague. Once the women sold chicken and made a profit. Hopefully, next time the profit will be double than first one. The interesting thing is that the women once told the colleague, I love my husband. He is not such a bad man. For the poverty he beaten me but now I can earn money. Can I offer him to live with me? I realized the emotion of the lady and communicated with her husband. He will come to meet me sooner. I have a plane to train him and provide necessary help to involve in work with his wife under the monitoring of my colleague who initially introduced the women to me. Author- Many organisation use CSR as a tool of reputation building and branding for their product and service? Do you have any kind of ulterior motive behind your CSR activities? M.R- CSR programs can add an extra bit of honour or reputation for our bank but it is true that we do not do such things for advertisement at all. Every knowledgeable person of this society knows well what Islami Bank is. Our bank is governed by the laws of Islam and that

81

does not allow flashing or flaunting because it is bound with the rules and regulations of Islam which has strong prohibition for flashing, rather we do help the poor without letting others know. Then again Islami Bank Hospital is very well known to all and they all know that we do not think for profit from here. We also have other programs like orphanage education, women empowerment. We also provide foods for those who are disabled and poor and old but none of these people know anything about our CSR programs, rather the people get help know what we do. Author- Do you think Islami banks CSR activities build up employee morale and relations with the organisation? M.R- Yes, obviously, because the bank has built a good reputation for its CSR activities, our employees are more appreciated in the society. People from all back ground come to them to consult their problem and get advices. Other thing is, our policy is to give priority to the relative or nearest people of our employee. All these things obviously help to build employees morale and relations with the organisation. We have the lowest employee turnover in Bangladesh. Author- I think I have finished my interview today, I will speak with you another day. Thank you for your help and cooperation. M.R- No problem, youre always welcomed whenever you need me. Khoda Hafez.

82