Corporate Social Responsibility and HRM in

Bangladeshs Ready-Made Garment Industry

Rubaiyaat Islam (12214243)
3nd year (APM)
Word count: 1521
INTERNATIONAL COMPARATIVE MANAGEMENT
Instructor: Dr. KIM Rebecca ChungHee
27th July 2015

Introduction
Corporate social responsibility is among the most hotly debated issues among the informed
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peoples of the developing world. As more and more multinational businesses dig their roots
deeper into the third world economies, more and more voices are being raised questioning the
social impact of these businesses. As of recently a very small proportion of the established
businesses, most of which are multinational corporations, in Bangladesh actively engage in
CSR. Even though multinational corporations are a slight exception to the culture of
reluctance in engaging in CSR, the indigenous businesses manage to show great resilience in
evading their social responsibilities despite pressure from their foreign stakeholders. The
Bangladeshi ready made garments(RMG) sector went under the cosh from the international
commerce community as tragedies hit some of the huge garment manufacturing complexes,
namely Rana Plaza (Hoskins, 2015) and Tazrin fashion (Hammadi, 2012). The global outcry
for Bangladeshi RMG sector to conform to international safety standards resulted in huge
expenditures in factory floor security and management which resulted in about a third of the
smaller sub contracting factories to shut down. This paper is aimed to shed light on the
various aspects of CSR in Bangladesh and the factors aiding and hindering its widespread
practice.

Defining Corporate Social Responsibility :

'Corporate Social Obligation' or CSR is a concept that has just recently gained dominance as
business stakeholders began to expect said businesses to maintain a legal, moral, economic
and socially enhanced relationship with the environment or community it affects.
However, despite how it is usually publicised, CSR is not about charitable work. It is
essentially about something more fundamental: it speaks the truth how companies assume no
liability for their activities on the planet. The social contract implies some form of altruistic
behaviour- the converse of selfishness- whereas self interest connotes selfishness (Carroll,
1999). CSR governing bodies can incorporate environmentalists, labour unions non-

government organisations into firms and any stakeholder will be lead to believe that the firm
is governing itself with integrity. However, it is pertinent to ensure that the social
responsibility extends beyond present members of society. Social responsibility also requires
a responsibility towards the future and future members of society. It is important that this is
recognised by a wide range of companies and in all segments of action, from MSMEs to
Multinational Ventures (MNEs).

CSR overview in Bangladesh

CSR is still in its early days in Bangladesh but due to the economic dependence on the 1st
world and a rapidly globalising society, the very nature of what CSR meant in Bangladesh is
transforming. Despite the multinational businesses still being the leaders, newer and more
socially aware firms are finally taking up responsibility to give back to their stake holders in
order to maintain a newer level of integrity and creating goodwill. As Bangladeshs ready
made garments industry is massively prominent in export sector, monitoring its industrial
operations and setting higher standards for itself is paramount now. Hence, Bangladesh
Garment Manufacturers and Exporters Association (BGMEA) and BGMEA University of
Fashion & Technology (BUFT) are advocating to bring forth a project that will allow the
business and academy community to work together and to improve the information and
utilisation of Corporate Social Responsibility (CSR) and contemporary leadership that will
help promote the adherence to international standards in maintaining workplace safety,
involvement and equal pay for women and grow awareness for eco-friendly business
practices. (http://csrbangladesh.org/niche-bgd-199/)

CSR Implementations and its present state (INSTITUTIONAL AND CULTURAL)

Traditionally, majority of the businesses in Bangladesh were family owned, and have been
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taking part in their own form of CSR, with no written set of policies or agendas, by actively
participating in the well-being of their community. However, such activities were considered
more as give-aways rather than a responsibility. As Bangladesh first welcomed globalisation,
businesses grew bigger and more profit-driven, and labor resources that Bangladesh can offer
began to be publicised as affordable labor to attract foreign investments. CSR activities
remained limited to monetary terms, such as donations to NGOs or other organisations
advocating for social causes. Lately, due to the upturn in Bangladeshi exports paired with
incidents, such as Rana Plaza and Tazrin Fashions, the emphasis on regulating CSR activities
that will ensure things like workplace safety and fair wages increased tenfolds. Both local and
multinational companies operating in Bangladesh began to bring about changes, focusing on
improving corporate governance, labor rights, community management and environmental
protection. The focus on CSR practices in Bangladesh of this gravity is moderately new,
however it is worth mentioning that the concerns surfaced due to international pressure on the
export sector, especially when a few purchasers from EU began to boycott the Bangladeshi
garments sector. Frankly, in Bangladesh, the status of workers rights, protection of
environment and resource management in corporate administrations are well below the
acceptable bar,let on by the lack of proper regulation of existing laws and little pressure from
the local community. Bangladesh needs to work on deciphering its social obligation in
business and economical content and ensure both the local and international organisation's
business point of view does not supersede its social worries by and by. Since, CSR includes
working with accomplices it is crucial to work from inside and analyse the stakeholders
concerns so that CSR is truly embedded in the organisations. The absence of enactment and
direction of Industrial Laws and Regulations, frail unions, absence of customer rights and
unpleasant level of debasement within the authoritative bodies make CSR encroachment wild
in Bangladesh.. Excessively low remunerations, lack of decent workplace conditions, such as

lack of fireproof systems and over-crowded spaces, negligible workers rights and so on have
been rampant in Bangladesh for so long, that it was on the infringement of becoming a
culture on its own. (Bearnot, 2013) Numerous industrial units keep running with antiquated
equipment that further cause air, soil and water contaminations. Moreover, technologically
and financially affluent firms care little to introduce Effluent Treatment Plants despite the
consequences.
Prospects and Future of CSR in Bangladesh
Bangladesh is currently an emerging country, so can deduce that in monetary terms, foreign
multinationals are yet to invest large enough amounts. Regardless of that, lack of CSR will
have massive consequences on the local community owing to the productivity of the
economy. Gradually, the Bangladeshi government and local leading companies have begun to
take the initiative to integrate CSR practices into their work culture as much as possible.
Increasingly, CSR issues are being discussed and solved in more innovative manners, gender
equality is being considered and implemented far more fairly, and specialised employees are
being recruited and trained for the sole purpose of working out social ramifications and fixing
them. (Khan, 2010). New policies and strengthened management will bring about more
changes than ever before, and with the limelight being on Bangladesh, foreign companies
working with Bangladesh will learn about the development of stronger CSR values.
One can distinguish such a large number of explanations behind shifting from traditional
business concepts to more contemporary concepts, however negative impression of
stakeholders on the firm would get a higher need among others. In one hand, enterprises
generate income and openings for work for the general public and on the other, they
contaminate and decimate environment and biology with wrecking sway on human wellbeing
and bio-differences around the world. To address the social issues or the issues of the
stakeholders, the business group developed another methodology in their business

methodologies named CSR. CSR undertakings are purposed to strike a harmony amongst
monetary and social objectives, where assets are utilised as a part of a levelheaded way and
social needs are be tended to dependably. CSR can be seen as a thorough arrangement of
strategies, practices, and projects that are incorporated into business operations, supply
chains, and basic leadership forms all through the organisation and incorporate obligations
regarding present and past activities and also sufficient thoughtfulness regarding future
effects. CSR can change by business, by size, by area and even by geographic locale. The
umbrella of CSR is very huge and it incorporates all the great practices that build the business
benefit and can protect enthusiasm of all partners.

Conclusion
In spite of being an underdeveloped nation, CSR activities in Bangladesh has significantly
improved owing to research. As Bangladesh had been working with MNCs for a long time,
the management has sufficient knowledge on how to implement and improve on CSR
activities but are often limited by resources, economic condition etc. As countries like
Bangladesh are dynamically introduced to overall standards, it is trusted that CSR will be
more polished with time. While the thought of generosity has been a key habit of Bangladeshi
organisations for an extensive timeframe, it creates the impression that a highlight on
generous gifts from CSR ventures has enhanced the view of this practice. Conclusively, it
appears that Bangladeshi organisations are progressively moving from the strong monetary
pace of CSR to the everyday routine of it. In any case, the fundamental motivation of
Bangladeshi firms to participate in CSR practices has started from a sentiment their moral
duty to offer back to society in any case whatever the rationale might be.

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