Contributions of MNEs to poverty alleviation through CSR programs: Bangladesh perspective

This study examines the contribution of CSR programs of multinational enterprises (MNEs) operating in Bangladesh in the poverty alleviation. The authors employed a mixed-method approach to collect qualitative data by interviewing executives of ten MNEs while for quantitative data annual reports, websites, and articles were consulted. Results depicted insignificant contribution of MNEs in poverty alleviation by their corporate social responsibility (CSR) initiatives. The average contribution of sample MNEs stand at only 0.52 per cent of profits after tax to CSR programs, ranging from 2.96% to 0.15%. The study reveals that most of the MNEs are not contributing as per their financial capacity and they lack a policy of donating a reasonable portion of profit to CSR along with poverty alleviation priority. The study suggests that government of Bangladesh must act sincerely and deliberately for active involvement of MNEs in CSR programs helpful for poverty alleviation by necessary policy framework and motivational supports with a view to accelerate the poverty alleviation movement for a happy, prosperous, and progressive Bangladesh.

[1]  A. Rahman,et al.  Is corporate social responsibility pursuing pristine business goals for sustainable development? , 2018, Corporate Social Responsibility and Environmental Management.

[2]  S. Dhamija,et al.  Mandatory CSR Spending—Indian Experience , 2017 .

[3]  N. Hoque,et al.  Poverty alleviation by Zakah in a transitional economy: a small business entrepreneurial framework , 2015, Journal of Global Entrepreneurship Research.

[4]  Anees J. Ali,et al.  Do non-governmental organisations’ socio-economic and training programmes improve disaster prevention capacity of their beneficiaries? , 2015 .

[5]  Anees J. Ali,et al.  The Role of Training in Reducing Poverty: The Case of the Ultra‐Poor in Bangladesh , 2014 .

[6]  D. Astuti,et al.  Dynamic model of Ibn Khaldun theory on poverty: Empirical analysis on poverty in majority and minority Muslim populations after the financial crisis , 2014 .

[7]  N. Hoque,et al.  Corporate Social Responsibilities (CSR) as a Means of Materializing Corporate Vision: A Volvo Group Approach , 2014 .

[8]  Z. Hatta,et al.  Zakat as a Poverty Reduction Mechanism Among the Muslim Community: Case Study of Bangladesh, Malaysia, and Indonesia , 2014 .

[9]  M. Cummins,et al.  Global Inequality: Beyond the Bottom Billion – A Rapid Review of Income Distribution in 141 Countries , 2011 .

[10]  Uwafiokun Idemudia,et al.  Corporate social responsibility and developing countries , 2011 .

[11]  N. Ragodoo.  CSR as a tool to fight against poverty: the case of Mauritius , 2009 .

[12]  M. Halme,et al.  Philanthropy, Integration or Innovation? Exploring the Financial and Societal Outcomes of Different Types of Corporate Responsibility , 2009 .

[13]  Hervé Mesure.  Creating a World Without Poverty: Social Business and the Future of Capitalism , 2008 .

[14]  W. Visser.  Corporate Social Responsibility in Developing Countries , 2008 .

[15]  V. Durairaj.  The bottom billion: why are the poorest countries failing and what can be done about it , 2007 .

[16]  Ali M. Quazi,et al.  A developing country perspective of corporate social responsibility: a test case of Bangladesh , 2007 .

[17]  M. Friedman.  The Social Responsibility of Business Is to Increase Its Profits , 2007 .

[18]  A. Chan,et al.  Critical perspectives on CSR and development: what we know, what we don`t know, and what we need to know , 2006 .

[19]  R. Jenkins.  Globalization, Corporate Social Responsibility and poverty , 2005 .

[20]  C. K. Prahalad,et al.  The Fortune at the Bottom of the Pyramid , 2004 .

[21]  J. Cairns,et al.  The familial technique for linking maternal death with poverty , 2004, The Lancet.

[22]  Shaker A. Zahra,et al.  Creating Wealth in Family Firms through Managing Resources: Comments and Extensions , 2003 .

[23]  Marcelo Soto,et al.  Growth and human capital: good data, good results , 2001 .

[24]  David Power,et al.  Social and Environmental Disclosure and Corporate Characteristics: A Research Note and Extension , 2001 .

[25]  Archie B. Carroll,et al.  Giving Back : An Examination of the Philanthropic Motivations , Orientations and Activities of Vickie Cox Edmondson Large Black-Owned Businesses Archie , 1999 .

[26]  B. K. Burton,et al.  A Cross-Cultural Comparison of Corporate Social Responsibility Orientation: Hong Kong vs. United States Students , 2007 .

[27]  A. Carroll,et al.  Corporate citizenship perspectives and foreign direct investment in the U.S. , 1994 .

[28]  Geoffrey Poitras.  Shareholder wealth maximization, business ethics and social responsibility , 1994 .

[29]  Ataul Huq Pramanik.  Malaysia's economic success , 1994 .

[30]  Paul Steidlmeier.  The business community and the poor: rethinking business strategies and social policy , 1993 .

[31]  R. T. Sweet,et al.  Business Ethics, 2nd ed. , 1991 .

[32]  G. Becker,et al.  Human Capital: A Theoretical and Empirical Analysis with Special Reference to Education, Third Edition , 1993 .