Critical investigation on the role of corporate social responsibility in business expansion: The case study of Grameen Bank

CSR has become a hot topic in academic and business circles. This discussion acknowledges CSR's importance in the first world but challenges whether developing-world organizations have CSR commitments. CSR is increasingly relevant to corporations in developed countries due to higher public expectations of responsible behavior. In poor countries, social expectations are based on financial success, hence CSR is of minimal importance to individuals and enterprises. CSR is a new concept in Bangladesh, and many organizations try to balance it with other duties. The banking sector in Bangladesh has a long history of engaging in CSR activities like assisting various organizations, beautifying the state, and sponsoring cultural events. In recent years, this envelopment has made great progress since 2008, when the Bangladesh Bank Guideline recommended banks to be more organized. Business exists to make money. Profit-seeking is sometimes considered immoral since it emphasizes self-interest. Self-interest is not selfishness, which prioritizes one's own well-being over others'. Self-interest is only concerned with monetary gain and is vital for society's productivity and asset management (Safety & Rights Society, 2014). Profit rewards hard labor and ingenuity, which most people want because it would be illogical to save and invest otherwise. Business organizations can't function properly without society's help. Businesses should assume social duties because they have the resources to do so. Business has some of the world's brightest ideas and great financial resources. Businesses should produce social and economic capital to "improve the world."In recent years, several businesses have suffered setbacks and even banks have gone bankrupt due to inadequate shareholder supervision. Shareholders and other stakeholders are increasingly looking for increased transparency and accountability of their businesses to ensure growth and that the business will continue to exist in the foreseeable future, not only in terms of maximizing shareholder wealth but also taking into account the needs of other stakeholders (consumers, employees, suppliers, government, etc.).Corporate Social Responsibility (CSR) is an intrinsic aspect of long-term company and sustainable growth and success. It promotes values locally and globally and is a developed-country phenomenon. As a result, a large body of literature on organizational social structure has emerged in developed countries.CSR assures firms will act morally and contribute to the financial prosperity of the people while enhancing the lives of employees and the local public. CSR is vital for organizations' sustainability worldwide. CSR is a global concern and all organizations practice it. In this research, the authors discuss CSR and examine the well-being of certain state-owned and private commercial banks in Bangladesh. "Bangladesh Bank" has recommended commercial banks to contribute to people's well-being. Many businesses and banks have failed in recent years. In recent years, CSR has grown increasingly significant. This thesis examines CSR's role in corporate growth. It also discusses CSR and how it might boost business growth. Grameen Bank (GB), a Bangladeshi bank, was chosen as a case study due to its success and expansion over the years, especially throughout the financial crisis. We're interested in CSR's part in this success. This work will examine the visibility of CSR in a bank like GB that has diverged from standard patterns and how this has affected its growth.

Grameen Bank does some CSR. Grameen Bank's CSR is different from typical banks due to its nature (social business). Disclosure of financial information, auditing of accounts and constant rotation of auditors, remuneration structure of the managing director designed so he gets no extra benefit for taking excessive risk by lending to unworthy customers (here we're talking about customers that do not belong to a credit group), and credit risk monitoring by lending money only to customers belonging to a credit group and giving out big loans to creditworthy customers are all examples of CSR in the UK. Disclosure promotes depositor and stakeholder confidence, auditing adds legitimacy to financial statements and further increases depositor confidence and GB reliability, credit risk monitoring As a matter of ethics and faith, not rationality, Grameen bank lends to persons without collateral and promotes repayment by granting larger loans only after smaller ones are repaid. All these boost business growth. Corporate governance helps GB grow and expand.