Corporate Social Responsibility at BRAC Bank
Values-based Banking
Together towards Prosperity
We live in a world that is more conscious about sustainability and environmental issues. Climate change is one of the most discussed global issues now and rightly so. This is an issue that is intertwined with our lives and the works that we do as a global citizen. The magnitude of the issue and its big impact necessitate collective effort.
Being a corporate entity, it is our utmost responsibility to act responsibly towards building a sustainable world that we all share. BRAC Bank is a mission driven bank that was established by Sir Fazle Hasan Abed KCMG with the vision of serving the unbanked small and medium-sized enterprises (SMEs) for building an inclusive society. By pioneering SME financing, BRAC Bank has significantly contributed to the advancement of financial inclusion in Bangladesh, which itself is an example of corporate social responsibility (CSR).
The bank’s purpose is to build a socially responsible financial institution focused on market and business with growth potential, thereby assisting its parent organization - BRAC - and its stakeholders to build a just, enlightened, healthy democratic and poverty free Bangladesh. This mission statement encapsulates the very essence of values that the bank stand for.
Values-based banking sets the guiding principles of the bank’s banking operations and social initiatives. Its business practices are aligned with the 3P philosophy consisting of People, Planet and Prosperity. Values-based banking entails social and environmental considerations into financing decision. It involves promoting sustainable development, social justice, and ethical practices.
For BRAC Bank, incorporating values-based banking into its strategy has helped the bank align its business practices with its mission and values. As a value-based organization, the bank strives to elevate the lives of people through pro-people, pro-planet and pro-prosperity interventions. The bank passionately works to fulfil the United Nations Sustainable Development Goals (SDGs) through its capacity of a market operator in banking and financial sector. It strives to play a role in reducing carbon footprint and contribute to society's value. The bank’s affiliation with the Global Alliance for Banking on Values (GABV) provides inspiration and guidance in its sustainability journey.
BRAC Bank will continue to focus on responsible financing and social interventions in a way that catalyses sustainable development, social equity and ethical conduct.
Sabbir Hossain
DMD and Chief Operating Officer
Chairman, Sustainable Finance Committee (SFC)
Towards an Inclusive Economy
As a member of the BRAC family, the largest NGO in the world, BRAC Bank has followed a values-based approach in its actions since introducing small ticket loans to SMEs, specifically bringing grassroots entrepreneurs under formal banking services. It has significantly contributed to the advancement of financial inclusion in Bangladesh, which in and of itself has an incredible impact on the bank's CSR.
BRAC Bank envisions an inclusive economy that will lead to improved economic growth, social outcomes, business performance, and social responsibility. Here are some of the key initiatives that we took in 2022 to heighten our focus towards an inclusive economy:
- We continued our focus on supporting real-economy financing through CMSME financing;
- We signed a tripartite agreement with courier service platform Delivery Tiger and finance and credit scoring platform Dana Fintech to launch “Platform Based SME Lending” facilities to the cottage, micro, small, and medium enterprises (CMSMEs);
- We collaborated with UNCDF to arrange “Uthan Boithak,” a financial literacy initiative, and provided financial literacy to migrants and their beneficiaries;
- We have held several “Customer Meets” with Probashi Banking clients;
- We initiated awareness campaigns in the UAE, South Korea, Malaysia, and other countries to encourage wage earners to send remittances through formal channels and spend wisely;
- We signed a partnership agreement with Agri-fintech start-up –iFarmer – to provide access to collateral-free finance to enlisted smallholder livestock farmers nationwide.
- We signed a joint-venture agreement with iDE on capacity building of the entrepreneurs of light engineering and Agri-machinery sectors, customized screening, credit scoring tools, and people development;
- We participated as a platinum sponsor in the Krishi Utshob;
- We partnered with Heifer Bangladesh to facilitate livestock farmers’ businesses in rural Bangladesh. We will finance the enlisted farmers of Heifer Bangladesh, which operates in Rajshahi, Sirajganj, Tangail, Natore, and Kishorganj.
Towards an Equitable Society
At BRAC Bank, our philosophy is to help people prosper. We have evolved along with the goals and aspirations of our nation and its people, enabling and reassuring Bangladeshis as they work toward their goals. Our comprehensive suite of banking products and solutions has been tailor-made to suit the needs of our customers as they journey through each phase of their lives.
BRAC Bank strives for a diversified, equitable, and inclusive work environment to demonstrate that the organization is open to fresh ideas and perspectives. It enhances satisfaction and boosts the loyalty of co-workers. To further emphasize its commitment to cultivating diversity, equity, and inclusion (DEI) in the workplace, BRAC Bank hosted a panel discussion on 'Diversity, Equity, and Inclusion in Banks' in collaboration with American financial powerhouse J.P. Morgan Chase & Co. BRAC Bank is the first bank in Bangladesh that actively recruited transgender and persons living with a disability. As a values-driven organization, the bank protects all its stakeholders, including the co-workers and the community it works in, from harassment, abuse, neglect, exploitation, and discrimination. While recruiting people, BRAC Bank encourages applications from any gender-diverse individuals and persons with a disability.
BRAC Bank is one of the leading employers in Bangladesh's banking sector and a significant talent recruiter, with 7,800 Full-Time Employees (FTEs). The bank's prestigious recruitment program, the Young Leaders' Programme (YLP), hired a record number of graduates in 2022. To support its strategic goal of doubling the business during the next four years, the bank recruited a team of 80 candidates.
We chose the Young Leaders after a thorough screening procedure that included several tests, including personality profiling, psychometrics, and two-step interviews done by experts. Before this particular push to inform the country's Young Leaders, BRAC Bank also held several career talks with the top universities in the nation in the run-up to the recruitment.
In 2022, BRAC Bank joined hands with the BRAC Skills Development Program (SDP) to create employment opportunities for the country's youth. BRAC SDP provides skills training and employment-related support to young people across Bangladesh, focusing mainly on people living in vulnerable and hard-to-reach areas. This partnership enables BRAC Bank access to a trained pool of fresh graduates for job openings in the bank.
BRAC Bank has launched a loan program for persons engaged in a noble profession like teaching as part of its commitment to social responsibility, with the assistance of the Directorate of Secondary and Higher Education (DSHE). The bank has made it easy for MPO-listed teachers to purchase laptops through its Digital Personal Loan – a first-of-its-kind initiative in Bangladesh.
BRAC Bank collaborated with Robi Axiata Limited, one of the top telecom companies in the country, to provide SMEs with digitized solutions to help them grow their businesses. While Robi's SME clients would enjoy preferred banking services from BRAC Bank, the bank's SME customers were able to take advantage of preferential services from the telecom, including Corporate SIM connections, Voice and Data Packages, Digital Marketing Solutions, Hotline Services, and Business Management Solutions.
Besides this, BRAC Bank has allowed its SME customers to enjoy transactions without fees from non-BRAC Bank ATMs (in more than 12,500 ATMs nationwide). It would benefit more than 3.65 lakh SME customers as the bank bears the BEFTN charge of BDT 15 per transaction in other banks' ATMs.
BRAC Bank introduced 'Agami Personal Loan' in 2022 as a specially designed product to help parents and guardians fund their children's higher education. It was the first loan product offered by BRAC Bank to assist students in Bangladesh and abroad to pursue higher education. It is a part of the bank's 'Agami Student Banking Services,' which offers bank accounts, FD and DPS schemes, study-abroad credit cards, student files, and student loans to meet the financial needs of school, college, and university students.
At BRAC Bank, corporate social responsibility (CSR) and citizenship are embedded deep in our value system. Our focus on people and the planet goes hand-in-hand with our pursuit of commercial profit. Late Sir Fazle Hasan Abed, KCMG, founded the bank with a vision of financial inclusion, bringing the unbanked grassroots, especially the SMEs, into the formal folds of banking to transform lives and livelihoods. Through his vision and focus, he pioneered the establishment of a commercial institution with a social inclusion agenda, and thus, BRAC Bank today remains a profoundly public-facing bank that embodies and advances the socio-commercial aspirations of the country's people.
In addition, the bank focuses on women's education, persons living with disabilities, and the environment as part of its CSR programs.
Towards a Sustainable World
The core tenet of BRAC Bank's corporate social responsibility aligns with the "3Ps" (People, Planet, Prosperity) philosophy instilled across the organization. As a result, we are committed to sustainability and take ownership of the social transformation credo because we understand the importance of ethical business practices for the long-term success of our stakeholders and our company. We consider the needs of the people we serve, including our customers, environment, co-workers, and community, to drive our efforts to integrate sustainability into our operations. It is in keeping with our profound commitment to embracing a humanizing approach in banking.
BRAC Bank has been named one of Bangladesh's top 10 sustainable banks by Bangladesh Bank for three consecutive years. Besides, Bangladesh Institute of Bank Management (BIBM) and The Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) also recognized BRAC Bank as one of the top sustainable banks for its exceptional performance in sustainable financing, environmental protection, social transformation, climate change, and contribution to the sustainable development goals (SDGs).
BRAC Bank encourages sustainability by developing and marketing sustainable financial solutions as one of the central banks to commit to Vision 2030. BRAC Bank is also working to incorporate environmental, social, and governance (ESG) aspects into investment and loan choices to ensure they align with the sustainable development goals. Also, we are implementing sustainability practices internally, such as lowering individual carbon footprints and boosting inclusiveness and diversity at work.
BRAC Bank has embarked on a zero-waste policy regarding using paper in the workplace. In 2022, the bank initiated a paper recycling process, styled 'Every Page Matters,' as part of its environmental commitment. The bank recycled 135 tonnes of paper, including old, outdated, and waste papers, by converting them into essential items such as clipboards, boxes, notebooks, and cartons. As part of scaling up the initiative, the bank collects unusable papers from its offices across the country and un-reusable outdated printed ones from its store and handovers them to the recycling partner.
Following Bangladesh Bank's new SFD Circular No. 05: Sustainable Finance Policy for Banks and Financial Institutions, dated December 30, 2020, BRAC Bank is one of the significant contributors to the Sustainable Taxonomy. BRAC Bank has offered 360-degree value propositions to CMSMEs and large corporate customers under its unique Sustainable Finance product umbrella called "Planet Solution" to ensure a sustainable recovery from the pandemic.
At the bank, our overall aim under CSR is to achieve a positive and enduring impact on society while maximizing shared value creation for stakeholders associated directly and indirectly with the bank. We thus prioritize a long-term focus with medium-term pursuits, looking at fostering a sustainable impact on the people and society.
At BRAC Bank, we take pride in offering banking services that significantly influence the economy, society, and environment. Additionally, as a values-based bank, we adhere to the comprehensive "3P" philosophy, shown in our desire to gauge value on a level beyond purely financial results. We monitor ourselves and our impact using the SDGs because, as a venerable banking organization, we are conscious of our obligations towards society. Consequently, aligning our socio-commercial effect with SDGs represents our primary goal of making a difference in the lives of people, communities, and societies.
Intending to be more responsive to our stakeholders' expectations, we have developed a robust framework for continuous stakeholder engagement. This framework's main objective is to convey our sustainability philosophy and motivate us to incorporate holistic and inclusive growth principles into all we do to make everyday progress. We also strive to build a plan to direct the following stages of our sustainable journey with defined roadmaps, targets, and key performance indicators as part of our comprehensive process of establishing priorities. Stakeholder participation is a crucial component of our strategy creation process because we understand that the bank's financial performance depends on a strategy that produces favorable outcomes for the business, society, and the environment.
We align our ethics, values, and code of conduct with globally recognized anti-corruption and anti-fraud principles and benchmark corporate governance practices. These support us in our quest to do business purposefully and in the right way and also help us to build holistic stakeholder trust.
Our employee training and engagement programs emphasize assessing how they interact and engage with our clients and customers. It aligns with our ethics and values, ultimately influencing how we evaluate our co-workers concerning the key performance indicators (KPIs) and, eventually, reward them.
By putting people at the front and center of all that we do and acting consistently in accordance with our values and ethics, we will continue to build a sustainable future for generations. Our essential pillars in this endeavor comprise the following:
Fostering responsible transition
- Developing sustainability-focused products and services
- Supporting the transition to a low carbon economy
- Ensuring systemic risk mitigation and control
- ESG integration in our credit decision-making process
- Engaging our people in sustainability
- Adopting ethical and upright conduct at all times
Enabling our communities with a blueprint for the future
- Empowering communities via a holistic focus
- Financial inclusion
- Ensuring climate Resilience
- Nurturing transparency and trust
- Assuring diversity, equity and inclusion
Ensuring that our own foundations are strong
- Governance and compliance
- Customer privacy
- Responsible supply chain management
- Saving precious natural resources like water, paper, etc.
- Minimizing the environmental impact of our operations
At BRAC Bank, we are inspired by our founder, Sir Fazle Hasan Abed KCMG, to drive our corporate social responsibility endeavors. Sir Fazle established BRAC right after our independence, and since then, BRAC has worked diligently to promote national development. As a member of the BRAC fraternity, BRAC Bank wants to carry the ethos of BRAC’s works in its CSR programs. We also believe everyone should be able to live a meaningful life.
BRAC Bank wants to break the financial barriers and social taboos, create opportunities, and ensure access for people to realize their potential and live meaningful lives.
BRAC Bank is driven by its 3Ps: People-Planet-Prosperity. Serving the people and society and helping them prosper is at the heart of BRAC Bank’s strategy - be it business or social initiatives. As a responsible bank, BRAC Bank has implemented policies and practices that incorporate social, environmental, ethical, human rights, and consumer issues into business operations and core strategy in close cooperation with stakeholders. In this course, we adhere to the CSR Guideline of Bangladesh Bank, the United Nations Global Compact principles and values of the Global Alliance for Banking on Values.
We are member/signatory of:
At the bank, our CSR investment approach is linked to our aspiration of developing high-impact social programs that together support people, society, and the planet. As one of the largest financial institutions in Bangladesh, we deploy our resources to make a difference in the communities in which we operate, both through our institutional capabilities and by encouraging our employees to volunteer their time, skills, ideas, and efforts across our social service activities. Importantly, our social investments prioritize long-term projects aligned with the SDGs and guidelines from our central bank.
Our core CSR impact areas comprise healthcare, education, and environment and climate change.
CSR expenditure
In the year 2022, BRAC Bank has spent BDT 188.5 million for its CSR programs which is 3.4% of its profit after tax of 2021 (BDT 5,547 million).
Strategic CSR Framework
BRAC Bank devised a strategic framework in 2022 to reflect its belief that everyone deserves the opportunity to live a meaningful life. BRAC Bank has identified targeted areas for its CSR initiatives that comply with the policy guidelines on corporate social responsibility for banks and financial institutions (SFD Circular No. 01; issued 09 January 2022).
Unleashing potential: Scholarship for students from low-income families
Uddokta 101
In 2022, BRAC Bank conceived the third batch of "Uddokta 101," an innovative program for women entrepreneurs. It is the country's first comprehensive Entrepreneur Accelerator Program and a flagship project of the bank's women's banking service 'TARA.' In 2022, the project collaborated with BRAC Business School of BRAC University as its knowledge and training partner.
The rigorous program aims to help promising female business owners develop their leadership and entrepreneurial skills, enabling them to maintain and grow their companies. It will aid emerging female entrepreneurs in their quest for professional achievement. 34 deserving female entrepreneurs were chosen from a sizable pool of applicants for this third round of the program.
The 13-week training took place in both classroom and outdoor settings to provide practical experience to create, sustain, and grow the business. Under the guidance of the knowledgeable faculty of BRAC Business School and senior bankers from BRAC Bank, the entrepreneurs gained expertise in the areas of business planning, record keeping, accounting and taxation, compliance, HR management, operations and supply chain management, e-business, export-import management, and fundamental aspects of business management.
BRAC Bank and BRAC University will conduct four "Uddokta 101" batches with at least 30 women entrepreneurs each year. BRAC University will provide the resources, people, modules, research, and logistics, while BRAC Bank will cover 80% of the course fee from its CSR fund.
Supporting the Shitakundo Fire Victims through BRAC Limb and Brace Centre
'Disability and disability inclusion' is the main objective of BRAC Bank's CSR in Health.
On June 04, 2022, a fire and subsequent explosion at a container depot at Shitakundo, Chattogram, killed at least 47 people and injured more than 450. BRAC was among the responders to this accident who supported the victims through treatment and counseling. The BRAC Limb and Brace Centre (BLBC) identified five amputees and two burn victims who required long-term care and treatment. BRAC Bank provided financial assistance of BDT 1,103,100 to BLBC for the treatment of these seven identified victims.
Responding to a call of humanity
A flash flood devastated the Sylhet region in June 2022. In addition to causing significant financial loss, it claimed six lives and uprooted about 3.68 lakh people from their homes. According to the evaluation report created by the District Relief and Rehabilitation Centre, the flood affected a 2,718 sq km region of 92 unions and wards under 13 upazilas of Sylhet. As part of corporate social responsibility, BRAC Bank contributed BDT 10 crore to the Prime Minister's Relief and Welfare Fund to stand beside the flood-affected people of Sylhet.
Faruq Mayeenuddin Ahmed, Director, BRAC Bank handing over the pay order to Dr. Ahmad Kaikaus,Principal Secretary to the Prime Minister, at a programme at Prime Minister's Office in Dhaka.
In addition, the bank also contributed BDT 3 crore to 'Dakchhe Amar Desh' – BRAC's emergency flood relief program. BRAC's BDT 25 crore relief work program supported more than 52,000 families with food, emergency support, and rebuilding.
To help the winter-stricken people in the country's northern region, BRAC Bank donated 75,000 blankets to the Prime Minister's Relief and Welfare Fund. Prime Minister Sheikh Hasina received a token blanket from BRAC Bank Director Faruq Mayeenuddin Ahmed at a ceremony at the Prime Minister's Office in Dhaka on 10 November 2022.
BRAC Bank-Samakal Literary Award
BRAC Bank and Daily Samakal launched the literary award in 2011 to inspire writers and litterateurs to enrich Bangla literature with their creative works.
On 22 January 2022, BRAC Bank and The Daily Samakal organized the 10th edition of the BRAC Bank-Samakal Literary Award, where they announced the names of the awardees for 2019 and 2020. Speaker of the Jatiya Sangsad, Dr. Shirin Sharmin Chaudhury MP, addressed the program as the chief guest.
BRAC Bank and Daily Samakal launched the literary award in 2011 to inspire writers and litterateurs to enrich Bangla literature with their creative works.
On 22 January 2022, BRAC Bank and The Daily Samakal organized the 10th edition of the BRAC Bank-Samakal Literary Award, where they announced the names of the awardees for 2019 and 2020. Speaker of the Jatiya Sangsad, Dr. Shirin Sharmin Chaudhury MP, addressed the program as the chief guest.
Six individuals, including Professor Serajul Islam Choudhury, researcher and UNB editor at large Afsan Chowdhury, were awarded the BRAC Bank-Samakal Literary Award for their illustrious contributions to Bangla literature.
In 2019, Professor Serajul Islam Choudhury won the award for his book titled "Dikkhagurur Totporota" in essay, autobiography, travel and translation category, poet Helal Hafiz won the prize for his book titled "Bedonake Bolechi Kedo Na" in poetry and novel category, Mozaffor Hossain won for his book titled "Pathe Bishleshone Bishwagolpo: Chutogolper Shilpo O Rupantor" in "Young Writer" category.
In 2020, Afsan Chowdhury won the award for his book titled "1971 Gononirjaton - Gonohatya Kathamo, Bibaran O Porishar" (Genocide and repression: Structure and Narrative) in the essay, autobiography, travel and translation category; poet Mohammad Rafiq won the award for his book titled "Pothik Poran" in poetry and novel type and Ranjana Bishwas for her book titled "Bangladesher Lokodhormo" in "Young Writer" category.
The best books were selected each year by a jury panel comprising Selina Hossain, Khalikuzzaman Elias, Biswajit Ghosh, and Abid Anwar.
BRAC Bank introduces first female-only scholarship 'Aporajeyo TARA'
BRAC Bank has redesigned its scholarship program starting from 2023 to support and promote female education in Bangladesh, establishing its first-ever scholarship exclusively for female students pursuing tertiary education.
The Aporajeyo TARA Scholarship program removes financial and societal barriers preventing women from pursuing higher education. The program includes transgender and women living with disabilities, reiterating the Bank's commitment to equal access to education.
Since 2010, BRAC Bank has been at the forefront of fostering education through its scholarship programs, supporting over 1,000 students. The decision to make this scholarship female-only directly responds to the country's apparent gender imbalance at the tertiary education level, with a current female-to-male ratio of 42:58.
BRAC Bank has started the Aporajeo TARA Scholarship program in collaboration with Dhaka University's Faculty of Business Studies, with a commitment to supporting 300 women each year, and with BRAC University, with a commitment to support graduate programs of 10 female students each year.
Contribution to Prime Minister’s Education Assistance Trust
BRAC Bank has contributed 5% of its total CSR budget for the year 2023 to the Prime Minister's Education Assistance Trust.
The Prime Minister's Education Assistance Trust is a trust fund administered by Bangladesh's Ministry of Education that provides scholarships to meritorious students with limited financial resources. The Trust is managed by an advisory group, with the Prime Minister as its chief patron. Representatives of the bank handed over a cheque to the Prime Minister's Education Assistance Trust on 22 June 2023.
The contribution will support the government's efforts to create a more literary country and a better Bangladesh. "We should thank Bangladesh Bank for this timely initiative allowing banks to contribute to building an educated nation," stated Selim RF Hussain, Managing Director and CEO of BRAC Bank. The Trust has made incredible progress in just a few years in helping the poor afford their educational pursuits.
World Environment Day: BRAC Bank starts saving endangered trees
As part of World Environment Day observances, BRAC Bank has planted endangered native variety trees nationwide. The bank has chosen educational institutions for tree growing to raise environmental awareness among students. The bank has planted 1,300 seedlings in various country locations in collaboration with Tarupallab, an organization that safeguards ecological heritage.
The effort began on World Environment Day, June 5, with the planting of 200 seedlings at NAM Pilot High School in Sonargaon, Narayanganj. BRAC Bank later planted seedlings at the Ethnological Museum and Pahartali University College in Chattogram, Pundra University of Science and Technology in Bogura, and Sylhet Agricultural University as part of this month-long program.
Homegrown Bangladeshi trees and a few mountainous tree types were planted. The majority of the trees in Bangladesh are threatened. They are Udal, Lal Udal, Sonalu, Dharmara, Jarul, Chalta, Gulapjam, Doi Guta, Kanchan, Gab, Hartoki, Buddha Narikel, and Krishnachura.
Building a Village Protection Wall in the Sunamganj Haor Area
The flood in Sunamganj and Sylhet districts in 2022 caused power shortages, forced the closure of numerous schools as they were converted into makeshift flood shelters, and submerged extensive areas, with some claiming the flood was greater than that in 1998 and 2004. BRAC Bank has offered assistance to BRAC combat flooding in the Sunamganj Haor region. In 2023, the bank used its Climate Risk Fund funds to erect a Village (Haati) Protection Wall in Nasirpur Village of Shalla Union, Salla Upazilla, Sunamganj District.
As a values-based organization, BRAC Bank continues to prioritize CSR initiatives that have lasting impacts on the people and society. That’s why the bank invests in long-term CSR projects. The bank will form CSR partnerships based on long-term goals. As per CSR strategy, the bank will focus on supporting female students for tertiary education to fulfil their higher education dream. As part of disability and disability inclusion initiatives, the bank will also focus on extending rehabilitation support to persons living with disabilities in our society. It will allocate 30% of the total CSR budget each in the education and health sectors per Bangladesh Bank CSR guidelines. It will also scale up environmental and climate change interventions.
While these are some of the unique ways in which we foster a profound socio-economic impact, we also strive to fulfil the sustainable development goals (SDGs) of the United Nations and the 2041 vision of the government that envisages a developed nation.
If you have a new idea that aligns with our strategic CSR framework and the SDGs in women's education, health, climate change mitigation, Bangla literature, local music or women sports, kindly send us a proposal through email: [email protected].
Thu, Nov 7, 2024 10:13 AM
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