In a nation with weak democracy, family-based political systems and poverty are commonplace in the country, and the business’s social activities are viewed as sinister. Instead of showing their support to the community, the banks of Bangladesh engage in social activities to demonstrate their commitment to the ruling family.
A family tradition
Let’s draw a picture to illustrate the Bangladeshi family’s political system and their ties to business. Two political parties led by family members have been in power in Bangladesh since the country’s independence. Former premier Khaleda Zia, the spouse of General Ziaur Rahman, a former president, is the leader of her party, the Bangladesh Nationalist Party, with her son Tareq Rahman, who is next in line.
The present premier, Sheikh Hasina (Wazed), is the child of Sheikh Mujibur Rahman, who is widely believed to be the father of the nation. She is the head of the Awami League, which has been in power in Bangladesh since 2009. her son, Sajeeb Wazed Joy, the country’s first deputy prime minister, is her successor.
Sheikh Hasina in 2014. Stefano Rellandini/Reuters
The polarizing policies of the two major political parties have resulted in the development of a culture that allows only the richest people to run for public office.
Based on the declarations of candidates, 68% of the lawmakers chosen in 2008 were part of the business community. The political patronage of politicians has become mandatory for the obtaining of the government’s approval to conduct business.
In 2011, as he was drafting the legislation to allow new banks to be opened in the financial sector, finance Minister Abul Maal Abdul Muhith stated that in spite of concerns that Bangladesh’s central bank had raised concerning this policy, “It is our political decision to issue licenses for new banks in the country.”
It shouldn’t come as a surprise then that our study has revealed that disclosures of social activity targeted at the ruling party were the most prominent theme in corporate reporting. Four of the top social responsibility initiatives that banks reported during 2009 and 2012 can be traced back to the Awami League and its political actions.
Looking into the donations
In our research, we examined bank disclosures and public relations between 2008 and 2012. We looked over company reports from 2009-2012 for the local non-listed and listed banks that operate within Bangladesh (a sum of 39).
Out of the local banks, 39, sixteen (two state-owned as well as nine private and five development banks) either didn’t provide any details about their corporate social responsibilities actions or did not provide enough details to warrant the inclusion in our study. So, our final report is built on 23 banks in a span that spans four years.
We discovered that donations towards the Liberation War Museum suddenly appeared in the company’s accounts starting at the end of 2010. Bankers also gathered for contributions to the Prime Minister’s aid funds in the aftermath of tragic events like the Bangladesh Rifles mutiny, which was a failure of a rebellion in 2009, as well as the Nimtoli fire disaster in 2010.
In the case of contributions towards the Liberation War Museum and Victory Monument, The establishment of which was part of the election pledge from the Awami League, The museum received 19 donations made by banks over four years. The donation began shortly following the elections of the current government, the Awami League; each bank gave an identical amount to the cause.