Abstract

The aim and objective of this study is to find out that CSR is how much essential tool to sustain in the competitive business world. Throughout this study I tried to show logical arguments why CSR is essential I have also mentioned some arguments against it. The logical arguments in favor of CSR is the use of CSR as a tool to create corporate image, enjoy competitive advantage, face hypercompetitive market, attract stakeholders, produce potential business benefits, perform ethical responsibility .There are also some negative viewpoints relevant to this issues. .After all I tried to focus on the fact through literature review that CSR is very much effective tool for business organization as it produces mutual benefits for the organization and society. The effectiveness of CSR is supported from survey analysis and findings. To justify the effectiveness and relevance of CSR as an effective tool to sustain in the competitive business world, three questionnaire surveys have been conducted for different interest groups of Standard Chartered Bank. Three samples have been taken for managers, employees and customers. The sample size was 7, 20 and 25 respectively. Total 21 questions were designed. Both primary and secondary sources have been used to collect both types of data. The research is done on the basis of quantitative and qualitative approaches. Some questionnaires have been made on the basis thesis statement. The respondents of questionnaire are managers, employees and customers of Standard Chartered Bank. The above mentioned respondents were asked some questions regarding policy and overall scenario of CSR of Standard Chartered Bank. The respondents wisely responded according to question design. Most of the questions which were asked to them were related to the necessity and current condition of CSR activities of Standard Chartered Bank. The most of the respondents responded in such a way which indicates that, although the overall scenario of CSR of Standard Chartered Bank is satisfactory to gain competitive advantage and to sustain, Standard Chartered Bank should on CSR policy and programs to do well in business in future and to attract more customers.

Chapter 1

Introduction

1.1 The Introduction Corporate social responsibility (CSR) is a term that is now a buzzword in the modern business world. CSR generally refers to the responsibilities of the corporate houses towards the society. It is now a burning issue in the present time. It is known to all that every business belongs to the society. Business firms manage all the inputs from the society and also sell their outputs (products/services) to the society. So it is clear that society and business units are closely interrelated. One is impossible without the existence of another one. Today, businesses are performing in the hypercompetitive market. Every corporation is trying to be different from others in the market to get competitive advantages. For this, they are following various value adding approaches. It is CSR which is very crucial element of them. From our daily experiences, it is obvious to all that the companies with the involvement of CSR are performing better than those companies which are not concentrating on CSR. For this reason, big corporate houses of the world are focusing more on CSR besides their business oriented activities. They have now realized that to sustain in the competitive business world, there is no scope to ignore corporate social responsibilities. On the other hand, there are many back dated organizations which consider CSR as a useless expenses. As a result, they do not concentrate on CSR. This type 0f organizations are lagging behind compared to their competitors. Recent observation made by economist intelligence units shows that 85% of the investors and executives surveyed told that corporate social responsibility is now a core and vital consideration in the investment decision making. But corporate social responsibility concept is not very long. It is a recent invention in the corporate world. The policy to form interrelation with society was taken into consideration by American and European companies at 1970s. The concept of corporate social responsibility was established not more than 20 years ago. From the beginning of the invention of CSR it was thought that companies have to react to the problems made by them or from the consequences of their own activities. This attitude has supported the concept that organization must be proactive that they should respond to a vast range of social problems because they have the expertise and

the power to do so. As the economy of the country mostly depends on the banking industries, it is essential for a bank to run smoothly. To run properly sustaining with other Banking and non banking competitors, corporate social responsibility is the most crucial elements. From this viewpoint standard chartered bank ltd, a leading global bank is also maintaining CSR activities strongly to enjoy competitive advantages and to maintain good relation with the society. Standard chartered bank (SCB) ltd was established in 1969 through a merger of two banks. One of them was the standard bank of British South Africa which established in 1863 and the one was the chartered bank of India, China, and Australia which was established in 1853. From the beginning of 1990 standard chartered was concentrated on developing franchise in Africa, Asia, and the Middle East. From the earliest of 2000 the bank had gained some milestones having a number of strategic acquisitions and alliances. The bank is now performing all over the world including developing and developed countries. It has become one of the prominent banks in the world by providing different kinds of services including consumer banking, wholesale banking, SME banking, Islamic banking and so on. Besides providing these regular banking activities it is now performing different types of social welfare activities which mostly include corporate social responsibilities (CSR). The corporate social responsibilities of standard chartered bank ltd covers eye care, HIV protection, sports, research issue, education, environmental protection, and so on. The bank is now sponsoring different kinds of sports and cultural activities around the globe. It also spends huge amount of money on different kinds of research purposes. Besides this function this bank is now helping poor and meritorious students by providing financial assistance mostly on the developing countries. This bank has already got the best banking awards for corporate social responsibilities in many countries. It is clear that, the reasons of developing business around the world not only depend on good management but also maintaining good relationship with the societies.

1.2 Research Background

The common belief of societies is that all organizations have greater responsibilities to stakeholder who are directly or indirectly affected by the performance of the corporation. As stakeholder s can be positively or negatively influenced by the performance of the corporation, they have some legal or ethical interest towards the organization. CSR policy can be driven by internally through corporate leadership or can be driven by externally through stakeholder pressure. But whatever the reason behind this policy, it is surely the evolving values, interests and expectations of society that has led business to redesign their mandates and this mandate forces corporation to rethink not only their own values but also the values of other stakeholders as well. There is a evidence of a growing contingent of corporate leaders with a greater social and environmental conscience & purpose. Net impact, for example, is a group of 11000 new generations leaders, committed to using the power of business to improve the world.(Freidman, M. cited in Tapscott, D & Ticoll, D 2003. P. 68). The common fact is that day by day social expectation is getting higher and higher. Societies not only consider the quality of consumption but also they are very clear that to maintain a sustainable standard of living. It is corporation that can play the best role. The current century has been an expansion of the global economy and an increase in the quality and quantity of consumption and wealth within both developed and developing countries but this economic expansion has negative side also. It is expanding the environmental and social problems with the passage of global economic developments. As the is getting modernized and huge number of local and multinational corporations are performing their business activities , the total world income as well as per capita income of specific nations are also increasing from times to times. For example we can say that the world income has been increased by an average of 2.8 percent annually from 1992 to 2002. (The economist: Pocket world in figure 2005 Edition. P. 244). But at the same time, for producing this vast amount of production to meet the demand of World population, we are seriously hampering the environment. And some extent, we are damaging our existences. By the consequence of this fact, the ozone layer has been seriously damaged; air and water, important elements of the natural environment are the major concern of many areas. Not only these elements but another important element of environment is forest which is very much essential to our living. Forests are being cutting off. By the effects of this above mentioned facts, it has been seen that the number of people living under poverty increased by almost hundred million during the last decade 20th century. The realization of the society about the rapid deterioration of the earth natural capital led them understanding that the present trends of consumption are unattainable and even unsustainable. As a result both corporation and society are facing the challenge for their environmental impact which is mostly imposing negatives scenario to their activities as well as their future existence is not very hard to realize that every corporation is liable to maximize its shareholders wealth. The rate of corporate leader is vast in this respect. But maximizing profit is not the main concern of modern organization. This forces the corporate leader to rethink their duties towards the society and stakeholders. There are three perspective of CSR have been emerged from the past to present. First of them is the CSR

on limited by legal obligation and profit maximization, the second view is the right thing to do for the benefit of society and the environment and third view s it as a process of value adding or creation. According to the traditional economic rationale it is thought that corporations are contributing to improve quality of life by providing goods and services, creating new job opportunity and contributing to economic prosperity. Any action taken by the corporation defines the ultimate responsibility of the corporation. Every business is run by the business leaders. But these business leaders are not social advocates. They have been hired and trained to run business successfully. According to these perspectives, their role is solely evaluated with respect to profit maximization. Business laws and regulations serve as the boundary to the means by which corporations are able to motivate profitability. But beyond this, corporations have no social responsibility. Corporate social responsibility is not mandatory in all respects. It depends on the willingness of the corporation and legal environment.

1.3 Introduction to Company

Standard Chartered Bank has been taken for this thesis paper to analyze the impact of CSR activities to the bank and to the communities where it operates. The standard chartered bank is one of the largest and renowned banks in the world. The bank was formed in 1969 through a merger of two banks. It operates in over 70 countries around the world. The bank is listed on both the London Stock Exchange and the Stock Exchange of Hong Kong. The organization cannot ignore the community the organization operates within .The bank itself thinks that it is to be great responsibility to be aware and engaged with issues that affect the customers, business partners, and the economies of the markets. It is thought that CSR activities help the bank to be differentiated and make its brand different from other organizations. It also helps to strengthen the relationship with stakeholders. That is why the bank operates its CSR activities locally and globally.

1.4 Importance of the study

Every enterprise, enterprise for profit making or not for profit enterprise, has its own objectives. For business firms or enterprises, profit making is the indicator of normal operation. In the past, business was developed with sole objective of generating profit and the social welfare was not considered. But the current situation is not like that. Situation has changed over time. At the present time, the aim of the enterprise is not simply profit generation; it also considers the welfare of the society as ethical responsibility. In a word, it can be described more clearly that the objective of the business is the wellbeing of the involved persons or people. Still now many private enterprises focus on the sheer objective of profit maximization while other organizations are very concerned that to survive to perform better, it is essential to enjoy competitive advantage by any means. Some organizations are doing CSR activities at a larger extent to have a greater social image to the community. Voluntary CSR initiatives have emerged as prominent measures to complement or replace sometimes ineffective regulatory approach to limiting corporate activities (Gibson, R. 1999 P.7).This corporate social responsibility or activity is working in two ways for the organization. In the one way, it creating social image and another way it is working as promotional tool for the organization through publication of corporate social responsibility activities. The traditional focuses on the single group. This single group is the group of shareholders. This single group works for single purpose that is profit maximization. To maximize profit, any organization develops different types of strategies to achieve its stated objective. But at the present time, doing business is more complicated. Business organization is to be very careful and alert about the activities of the competitors and how they are getting closer to customers and society. Dave Mowat, CEO of Vancity, remarks that, in business, it is too easy to focus on quarterly results. We need to think & act as if we will be around for 20 years (Canadian Business for social responsibility, 2005. P.10).This thesis paper actually describes how organization with the involvement of corporate social responsibility is getting more benefits compared to the costs spent for corporate social responsibility and how the organizations with no involvement of CSR activities are lagging behind. Some organizations consider expense for CSR activities is wasteful and needless for organizations as this cost does not increase revenue while other organizations consider CSR as ethical responsibility and as investment as it produces various benefits to the organization as well as to the interest group.

1.5 Aims and Objectives

To identify the nature of CSR Why it essential now a days for corporation How it adds value to corporation To compare the performance of corporation involving with CSR with that of those not involving CSR. How SCB enjoys competitive advantage through CSR How much is it effective to add value

1.6 Limitation of the study

Everything in the world has some limitation. Preparing a thesis paper is not exception to this truth. The limitations I faced and the limitations of the study are given below: Primary and secondary data collection Unavailability of sufficient books, journals, articles and publications. Limited knowledge regarding this study. Theoretical comparison of the performance between the companies. Limitation of the sampling methods.

1.7 Outline of the dissertation

Chapter one: Introduction

Chapter two: Literature Review

Chapter three: Methodology

Chapter four: Data analysis and Findings

Chapter five: Conclusion and Recommendation

Chapter two: literature Review

2.1 Introduction
Corporate social responsibility (CSR) is a term that is now the buzzword of the modern business world. Now a day the performance of a corporation is measured not only of its profitability but also of its contribution towards the stakeholders as well as society. Corporate social responsibility is considered differently to different individuals and corporation. Some corporation regard CSR as the most essential tool to sustain in the competitive business world while on the other hand there are some corporation which consider it as a useless expenses. But the general view about CSR is that as corporation are performing in the society, uses resources from society and also provide its output in the society so every corporation must have some duties and responsibilities towards the society. Maintaining social responsibilities may not be the legal attribution of a country but from the ethical perspective every corporation must have some responsibilities towards them. From the general experience it is found that the most lucrative and trustworthy organization of the world are very much concerned about their social obligations. As we everybody know that today natural environment is getting worse day by day by consequences of activities performed by the business houses. So the only motive of the corporation should not be to maximize its own profit. As they hamper the environment, uses resources from there they must pay wages for its activities. Though CSR is important topic now a day to research it was not so popular just more than 20 years ago. At that time the main duty of the corporation was only to maximize profit or wealth of its shareholder. But today this concept has totally changed. Today the organization that is very much concerned about society is getting positive differential effects from its shareholders as well as general people from society. As CSR is very crucial issue to sustain in the modern business world big corporate houses are much more concentrating for this purposes. Every big corporation of the world are spending huge amount of their earning for social purposes. This spending may not generating profit in a direct way but it has a great impact to generating profit in indirect way. As this topic has been the important tool to research this paper is basically the analysis of the impact of corporate social responsibility for overall performance of the corporation. This analysis is done through the analysis of the impact of CSR on standard chartered bank ltd the leading banking corporation of the world. The standard chartered bank ltd is performing its banking activities throughout the world by providing newer and newer banking products and services. The standard chartered bank ltd has to encounter many challenges posed by its competitors. The bank properly handled this challenges not only providing various services but also maintaining good relation with the environment as well as stakeholders such as customer, employees, competitor, and general people who have direct and indirect interest to corporation. Standard

chartered bank ltd prompts its CSR activities very strictly. As it is a multinational banking corporation it performs all over the globe. Every year this bank spend huge amount of money for social purposes not only its mother country but also all over the world. To get positive support from foreign government, customer as well as from general stakeholders CSR plays very important role to its foreign policy.

2.2 Brief about CSR

Almost all of the study that analyzes CSR makes references to the difficulty related to defining the term. CSR which originally regarded as corporate philanthropy has evolved to include a broader set of criteria with an increased focus on sustainability. The following are the definitions derived from the prominent Canadian CSR advocate organizations: Canadian business for social responsibility defines CSR as a companys commitment to operating in an economically, socially, and environmentally sustainable manner, while recognizing the interest of its stakeholders, including investors, customers, employees, business partners, the environment and society at large. The conferences board of Canada defines CSR as the overall relationship of the corporation with of its stakeholders. These include customer, employees, communities, owners, investors, government suppliers and competitors. On the other hand CSR is the interaction between the business and other forces in society ( Hargreaves, 1975). The elements of the social responsibility include investment in community outreach, employees relation, creation and maintenance of employment, environmental stewardship and financial performance. According to this way CSR should take into consideration three main areas. These are society, the economy of a country and the environment. a corporation which is socially responsible should perform its activities in such a way as to cover these three areas through the improvement of corporate policy and maintaining the existing law and regulations. The corporation is thus responsible for fairly treating its employees, obligating the communities in which it perform or operate improving better corporate governance, supporting philanthropy, ensuring environmental protection, supporting human right and economic prosperity. While we create any definition for the term is an effort at clarification, it has led to a certain amount of puzzles. CSR has generally evolved from a moral philosophy discipline, but a number of terms have also developed to be used in some manner with CSR. All of these have a distinct disciplinary evolution. The corporate social responsibility can be simplified by the following approach.

2.3 The Nature of CSR: - Voluntary & Regulatory Approaches

Another thinking which arises when we attempt to define CSR is that whether it engages the approach of voluntary initiatives or whether it simply seen as compliance to regulation in the different areas covering to the society & to the environment .According to the Friedman, CSR relates to obeying the law and generating as much money as possible for the shareholders. In this respect, CSR compliances with regulatory issue and moves strictly to environment. On the other hand CSR is generally cut on the voluntary measures that apply to organization welfare beyond the legal compliance (Pollution Probe. 2004. P.13.). According to this perspective CSR is totally voluntary measure. And that is why it needs to be distinguished from the legal compliance.

2.3.1 A regulatory approach to CSR

Generally the use of regulatory measure is the main agenda for corporations to eventually meet shifting social demand. According to the constitutional democracy, the legal system is the main way through which social values are expressed and societies thinking are enforced. For example, we can say about the environmental law which was developed over the past three decades. The development of the environmental law over the last three decades, for example, reflexes the social recognition that the environment must be protected from individual and corporate activities (Boyd. D. 2003. P.11).This law has been reflecting social reorganization that imposed that environment as well as the society must be protected from individual and corporation activities and mode of doing business. Someone argues sometimes that the imposition of environmental law is the prime reason that will drive corporation and business organization to consider their negative environmental consequence. Corporation may not be such socially responsible if there is not any regulatory approach to enforce the corporation to do such activities for social purposes. From the beginning of the globalization, legal approach has been accepted as a way to address that, Sorbanes-Oxley Act, which was implemented in the year 2002, following the Enron & WorldCom according scandals in the United States of America was the impact of regulatory approach ( Laws. Justice. gc.ca/en/ B-1.01/accessed July 28, 2005). The development of environmental act has limit the activities done by the corporation which may hampers the society. In many countries of the world environmental law has been passed since the past to protect the environment. The law has also strict or limit the activities & sometimes focuses which should be done for corporation and which should not be done. The bank act of Canada has mandated banking and non banking financial institution to annually produce public accountability statements which is a statement describing the contributions of the bank and its prescribed affiliates to the Canadian economy and society. Bangladesh Bank for example has made compulsory for every National and foreign commercial bank to publish report on CSR from the year 2010.

2.3.2 A voluntary approach to CSR

CSR has also the means of voluntary approach that enforce corporation to social activities voluntarily. There are a really a large number of corporation around the globe perform the act of CSR not for regulatory purposes. Alcoa Inc. for example has committed publicly to emission reduction from in SO 2 by 2010. A 50 % reduction in volatile organization compounds by 2008. . A 50 % reduction in Nitrogen oxides. A 50 % reduction in landfill way by 2007. And a 60 % reduction in process water use and discharge by 2008(www.alcoa.com accessed July 29, 2005).

2.4 CSR: Ethical Responsibility

CSR is considered as an ethical responsibility by the business organizations or the social bodies. It is actually social contribution by the corporations the expectations by the society. At the present time society expectations are increasing dramatically as well as rapidly. Society expects that the business units which operate in society will make better for its own as well as social benefits. Business from ethical view point, considers that it should be responsible its own actions. So business leaders try to fulfill their stockholders expectations protecting some ethical responsibilities expected by the society or social bodes or community.

2.5 CSR: A Commitment to the Society and Environment

The traditional goal of the corporations is to maximize profit. This means protecting only the interest of the shareholders. But day by day, this traditional image of profit maximization is changing. There is a growing tendency of protecting the interest of stockholders with a greater social and environmental purpose New generation business leaders are committed to using their business power, expertise and skills to improve the world as a whole. These individuals are more interested in applying their expertise to both make money and to create positive social image. Several MBA programs focus on teaching future business leaders to maintain profitability while protecting the natural environment & maintaining social and ethical responsibilities (www. Schulich. Yorku. Ca accessed July 20, 2005) Most of the socially responsible business executives are willing to forgo financial benefits to work for the organizations which have reputation for corporate social responsibility. Actually they are trying to reconcile the interest of the shareholders with the interest of wider community. It can be more simply said that Present business leaders are more committed to gaining economic goal with social environmental gain. They are taking corporate social responsibility as a commitment to the environment as well as society.

2.6 CSR: Social Expectations

Social expectation has changed over time and now it changing very rapidly. In the past corporate social responsibility or any other social activity was considered as an externality to the business. What we are coming to realize is that if we focus on creating societies that enhance the quality of our living rather than the quantity of our consumption, we can move simultaneously towards sustainability and a better life for nearly everyone (Korten. D.1995.p. 278). Now is becoming internalized by the corporations. Corporations are expected to perform their activities in a better way and even they are now bound to account for their environmental and social impacts. Corporations are now responding to social expectations. Society expects that corporations should operate their activities in such a way that environment pollution remains to the minimum level. Society also desires that corporations should also bear a part of the expense to control environmental pollution and participate in minimizing ill effects on environment or society. Society expects that business organizations should pay proper consideration to the society regarding some crucial issues such as health, hygiene, education, efficiency and safety. Society or community seeks support of artistic and cultural activites.Community also expects help in urban planning and development corporations are expected to help the disabled.

2.7 CSR: Demand of situation

The concept of CSR is not very long. In the past the main objectives of the corporation was to maximize its shareholders wealth. They did the business only for their own benefit. In this period, society also had not so much expectation from the corporation. Society thought that as business run on their own capital the benefit comes from the business also the right only for their stockholders. But at the present world this concept has totally shifted. Today the success of corporation is not only measured by profitability but also its commitment towards the society. But it not clears to us when corporation first introduced social welfare activities. The thing that comes to us is that this concept is a recent concept. More than 300 hundred frameworks have been developed internationally by various business groups, govt. academics and NGOS (Mazurkiewicz, p.2004). Due to rapid changing of the world economy every activity performing by the business is also changing. Big corporation are mostly depending on the technology. The use of the technology not only fastening the activities but also affecting the society. As corporation are damaging environment and also creating negative externalities to societies they must pay something in return for the betterment of the society. From this view the concept of CSR originated. At the present world while most of the corporation doing at least for society, no corporation can sustain so long in profitable manner by ignoring it. From this viewpoint every corporation of the world are performing social welfare activities globally. The most profitable corporation of the world are spending huge amount

of profit for social purpose to strength their base in society. So it is clear that CSR is now the demand of situation.

2.8 Global Ethics and CSR

As most corporations expand into global markets, their policies change. Most of the corporations redesign their codes of ethics and policies on social responsibility. Multinational corporations are to maintain a wide range of social responsibility. They are respecting local practices and customs, providing management leadership. While operating in a foreign country, it should take into consideration the interest of all stakeholders. A recent study conducted by the Stanford school of Business, examining the attitudes of 279 European and North American MBA students, confirms that more than ninety percent of the MBAs in the sample were willing to forgo financial benefit in order to work for an organization with a better reputations for CSR and ethics(Montgomery D. Ramus C. 2003.P.7) Multinational corporations should balance conflicting interest of stakeholders while making decision regarding social responsibilities mostly in the area of human rights.

2.9 Historical Development of CSR

The concept of CSR is not very new and even it is not very old as well. The concept of CSR has changed over time. Once, the business was conducted only for protecting the interest of owners. About one hundred years ago, the purpose of the management of the business was to maximize profit and managers paid very little attention to social responsibility. At the end of the first quarter of nineteen century, form of business was changed. This change brought the separation of the management from the ownership. Under this system, management on behalf of the owners of the business organization worked and at this stage while earning profit for the owners, management started to pay attention to the expectations of the society. In the third quarter of the nineteen century, recognition of trade unions, the rise of consumerism and awareness for human rights made the parties greater concerned for quality of life.

2.10 Recent view about CSR

CSR is not very new concept to the corporate world. The recognition of CSR has come to known by the business organizations in the past decades. For the recent few decades, society has developed the attitude that all corporations should react to the ill effects or problems created by them or from the consequences of their operations. This concept supported that corporations are to be proactive and also they are to be

committed to responding to the social problems as the corporations have expertise and financial backup. The social responsibility of the business is not obligatory behavior. Corporations have to be socially responsive. It is said that traditional corporation is a business organization for single group with a clear cut single purpose of conducting business for profit. This traditional view states only the legal social responsibility and this view leaves the public interest. Another concept with due consideration of public interest is known as well-tempered corporation. Advocates of this view claim that shareholders interest is more likely to be gained if a organization develops a position as a socially responsible organization. Now it is considered that business is not conducted for single group rather business is conducted for interest groups. Interest groups are stockholders, investors, bankers, creditors, competitors, trade associations, local community, tax authority, government and other social bodies which are directly or indirectly benefited or affected by the operations of the business organizations.

2.11 Drivers of CSR

There are no strict rules and regulations that corporate social responsibility is essential to business operation or corporation. But corporations now consider the impacts of their operations on society and environment where they operate. Generally there are three predominant drivers for social and environmental performance. They are founder passion, and vision, a reaction to the external pressure and the desire to establish a competitive advantage. Under founder passion and vision, it is argued that CSR is related to the company. Corporations consider CSR as an integral part of the decision making process. It is also obvious that external pressure has also played a vital role to drive the CSR movement. Socially responsible business leaders, stockholders, NGOs Government and other interested groups have played very vital role to encourage and pressure corporations to involve in social and environmental issues. Competitive advantage is another very effective driver of CSR.Business experts believes that corporations with CSR may develop competitive advantage over time. This type of advantage can be gained through increased market share, public trust in the organization and reputation. So it is clear that there certainly exists a business incentive to develop and implement CSR policy and practices in the business organizations

2.12 Degree of Social Responsibility

Social obstruction Social obligation Social Response Social Contribution

Complete social responsibility has four parts which are mentioned above. It is usual that making goods and services available to make profit is the minimum degree of social responsibility followed by legally compelled obligations. These two parts are generally performed by every business organization. The real social responsibility starts from responding social requests .This means doing something for the benefit of the society. It is not the highest degree of social responsibility. The highest degree of social responsibility means the level at which business organizations do some social activities without any formal request or social expectations. (A.R. Khan, 2000 p. 60). But hardly this level four is performed by the business organizations unless they are motivated by the feelings that performing social responsibility for the sake of society is profitable investment. But at the present, it is found that many business organizations are contributing to the society without any own benefits.

2.13 CSR Policies and programs

The current world is getting complex day by day due to modernization of every sector to society. Every day the world is changing and newer and newer problems are being created. Most of the problems are created by corporation. Corporation is affecting our society and community to a great extent. Although there is no doubt that corporation make our life enjoyable, fashionable, easy and comfortable it sometimes create negatives effect on the environment as well as society. So as a socially responsible entity every corporation must maintain some plans and programs towards the society so that their negatives on the society can be offset. But the corporation always faces a dilemma for selecting CSR policy and programs. But it should be maintained that corporation should set their CSR policies and programs on the sector that is much essential demand of the situation. These sectors may depend on the nature of business, location, or activities performing the business. For example it can be said that the corporation which affects environment by their activities must do something for the welfare of the society. A lot of CSR policies and programs are there in the world and the corporation is maintaining its CSR activities accordingly. Research shows that most of the corporation is very conscious while selecting CSR policies and programs. The reason is that the success of CSR policies and programs mostly depends on selecting of the programs. It can also be maintained that as todays world is facing global warming around the world. Large Corporation now are much more concentrating on their policies and programs on these issues. Organization may exercise social responsibility towards their constituents, towards the natural

environment, and towards the general social welfare (Griffin 1998p.112). The following are the list of some policies and programs that respondents referred to when tell about CSR. Environment Health and safety Community affairs and investment Product certification Food safety Privacy and confidentiality Risk management Human relation Human rights Ethics Education Products sourcing and buying

CSR and Globalization: globalization has made the present world almost like a global village. Big multinational corporation (MNC) is doing business across the national globe. Their activities are now not only concentrating on its motherland but also the whole world. As the corporation is concentrating across the national boundary they have some responsibilities as well to these countries where they are performing their business. Most of the multinational corporations have to compete with its competitors in the area of product, services, local culture and so on. So this corporation must pay due concern to the betterment of the society as well as stakeholders in the foreign countries. We know that the corporation especially multinational corporation which performing CSR activities in foreign countries get positive response from the society and also from the govt. and this positive response is very much essential to sustain in the foreign market. While the open market economy open huge opportunities to the corporation it also creates a huge competition among them. This competition cannot be overcome only providing value added goods and services. Corporations also need to evaluate society and also the betterment of the stakeholders. And this type of responsibilities can be maintained by maintaining CSR. So it is clear that the relationship of CSR and globalization is very close.

2.14 Managing social responsibilities:

The demand for social responsibility is on the way of increasing. CSR has thus come to take into consideration three main areas: society, the environment, and the economy ( Willard 2005p.15). It is the duty to manager for maintaining CSR on the organization. Organization need to fashion an approach to social responsibility the way that they develop any other business strategy. That is, they should view social responsibility as a major challenge that requires careful planning, decision making, consideration and evaluation. They may accomplish this through both formal and informal dimension of managing social responsibility

2.14.1 CSR: Responsibilities to stockholders

CSR generally indicates maintaining responsibilities to the stockholders. It is a question that what makes a company admired or perceived as socially responsible? The answer is very simple. The company which meets its duties and responsibilities to its stockholders is counted as social responsible business.Social responsibility implies the admission of acceptable behavior, in other words, of being answerable to the society(Woodman & Kverndal, 1976). The stakeholders are nothing but the group to whom the business has a direct and indirect interest or responsibility. Every business is very much concerned about its stakeholders. The stakeholders are the groups which determine the success or failure of a business. A business cannot do well without valuing or maintaining responsibilities to its stakeholders. The stakeholders of a business are its employee, its customers, its general public, and its investors. A business can perform its social responsibilities by performing responsibilities to these groups. Each of the stakeholders is describes below:

2.14.2 Responsibilities to employees

Employees are the members of the society, so to be responsible to the employee is the responsibility to the society. An organizations first responsibility is to provide jobs to employee, keeping people employed and letting them have time to enjoy the fruits of their labor is the finest thing business can do for society. Enron is a company which violated this responsibility. (Gitman, 2005.p.89). Beyond this fundamental responsibility, there are a large number of responsibilities to the employee. Organization must ensure clean, safe working environment that is totally free from all forms of discriminations for its employees. Companies also should ensure the job security for its employee as much as possible because unsecured job creates mental disorder to employees which is threats to peace and happiness. Enlighten firms are also doing a lot of task for the welfare of its employees. They have given the power to make decisions on their own and suggest solutions to company problems. This type of empowerment

contributes to employees self worth, which in turn increases the productivity and also reduces absenteeism. As the success or profitability of business mush more depends on the employee satisfaction, corporation should act in a way which benefits the employees as well as socially as the employees are the big part of the society. Business can perform its CSR activities largely by maintaining responsibilities to its employees.

2.14.3 Responsibilities to customers

All the efforts of an organization go to its customers. A central theme of todays business is that a business must satisfy its customers to be successful. A firm must deliver what it promises(Gitman, 2005.p.89). It must also be honest and forthright with its clients. If the customers are unsatisfied then the fundamental theme of the business will fall in vain. So corporations should not run after only profit, it should also satisfy its customers. Ethics of social responsibilities play important role in customer satisfaction and quality. Acting in an unethical manner such as overcharging a client and failing to service after the sale will normally mean losing that customer for life. Besides a customer who is not satisfied will often influence other potential customers not to purchase which results in further lost sales. Getting benefits by using cheap materials may benefits for short run but it drive off valued customer for the long run. People generally prefer to do business with the organization which is seemed good corporate citizen to them. So for the wellbeing of the business and society as well, corporate must maintain responsibilities to customers.

2.14.4 Responsibilities to society

Every business runs their activities on the society. Son as an entity of society, business must also be responsible to society. A business has a lot of options to perform social activities. Every organization as they performing on the society, affects its elements directly and indirectly. Business creates both positive and negative externalities to society. So as a creator of negative externalities, businesses have to perform some activities which is beneficial to society. An organization having social responsibilities can affect stakeholders. On the other hand an organization without maintaining SR cannot attract to its stakeholders. A business provides job, goods and services to its communities. It also pays taxes to the government that goes to support school, hospital, roads, and other public goods. Most companies try to be good citizen in their communities. In this way, business tries to maintain social responsibilities in a direct way. But there

are huge options to maintain SR in direct way. In the last decade of the twentieth century, the number of people living in poverty increased by almost hundred million (Stiglitz, J. 2003. P. 5). Many corporations of the world spending a lot of money for these purpose including environment issue, research issue, health care, education, and so on.

2.14.5 Responsibilities to investors

Investors are the groups who have direct relationship with the business. Companies relationship with investors is also regarded as social responsibilities. Recent survey conducted by the economist intelligence unit has found that 85% of the executives and investors surveyed said that corporate responsibility is now a central or important consideration in investment decision (Economist intelligence unit. 2005. P.2). We know that, economic responsibilities of a corporation are to maximize profit, but it is not all the story about. Many investors are now putting more importance on other aspects of SR. Some investors are limiting their investment to societies that fit within their beliefs about ethical & social responsibility.

2.15 Why CSR Essential

Well managed CSR supports the business objectives of the particular corporation. It helps to build relationship with key stake holders whose opinion will be most valuable when times are very hard. There are many reasons of corporate social responsibility to be essential. In a word, it can be said that to perform CSR activities or to be concerned about CSR is the reality of the present time. Actually it is the demand of situation. There are some external and internal reasons behind this. There is a direct correlation between the economic result and company image of CSR policy. A socially responsible firm makes deliberate, regular efforts to increase its positive impacts on society while reducing its negative impacts (Skinner S J & Ivancevich J M, 1992). In the past, operation of business was limited to a certain area or to a group of customers. That is why competition was very low. But now business operates in a wide range of areas and faces very intense competition because of large number of buyers and suppliers, technological advancement and rules & regulations. Reasons of CSR being essential are described under following titles:

2.15.1 Hypercompetitive Market

This is the most influential factor to form CSR policy or to involve in CSR activities. Environmentalism creates some special challenges for global marketers (Kotler & Armstrong 2006 p.638). Now an organization faces a hypercompetitive market where it is very tough to operate. Many forces (internal &external) make the market hypercompetitive. The market is becoming hypercompetitive because of ever changing customer taste or needs, existence of a large number of substitute products or services, rapid technological change and bargaining power of buyers & suppliers. So in this market, it is very hard to sustain or to make profit through providing only quality products or services. So to get competitive advantage or to be differentiated, it (CSR) is very useful and effective tool. This CSR policy helps to face hypercompetitive market successfully and to attract the customers.

2.15.2 Competitive Advantage

Competitive Advantage definitely benefits the organization to perform better than the competitors it faces. Competitive advantage can be gained through increasing market share, cost leadership, product differentiation and increased trust in the organization. Though organization is mainly concerned about their profit maximization, they are to be aware about the fact that organization operations affect a wide range of stakeholders and also are affected by them. To ensure competitive advantage, they must meet existing and future potential consumer demand for sustainable goods. So to gain competitive advantage through CSR, it is urgent to increase the public trust. To ensure public trust, it is required to develop and implement CSR policy.

2.15.3 Potential Business Benefits

It is certain that CSR activities have some potential business benefits to the firms involved in the CSR. Benefits of CSR vary depending on the nature of the enterprise and these benefits are very hard to quantify. As CSR helps the enterprise well known to the community where it operates, it affects the overall economic profit. It helps to increase the business scope. Business enterprises with the involvement of CSR do not look for short run economic returns rather they look for long run economic benefits or returns. In a word, CSR benefits multiple ways. Through literary review and an examination of case studies, the main conclusion is that there is strong evidence for the existence of a positive relationship between environmental governance and financial performance ( Environment Agency, 2004 p. 1).

2.15.4 To Attract Stakeholders

Now most of the people concerned about not only their own benefits but also the benefits of the society. So it is very tough to attract learned and well informed customers without being socially responsive. At the present time, all the stakeholders make informed decision. So CSR activities have positive impact on the decision making process of the customers.

2.15.5 Ethical Responsibility

Now corporate or business leaders are changing their views of profit maximization. At the present, corporate leaders consider CSR as an ethical responsibility with reasonable ground. Now corporate leaders are more interested in applying their business skills to make money and have a positive social impact. As the existence of corporation is impossible with society so society deserves social contribution from corporations. Most of the business leaders are trying to maintain profitability while protecting the natural environment.

2.15.6 A different approach to value creation

At the present, CSR can be a different approach to value creation to the firm. Nowadays, CEOs of corporations argue that integrating social, environmental and financial goals is imperative to the organization as well as society. CSR helps the organization to multiple benefits in many ways. The organization maintaining CSR gets benefits from rules and regulations imposed by government. This exception helps the organization to be different from others in operation. Freidman describes as the fundamental role of the corporation: to make as much money for their shareholders as possible (Freidman, M. 1962. P. 133). It obviously adds value to the organization. Besides, the organization with the involvement in CSR is considered socially responsible, which helps the organization to be treated differently by the stakeholders. For this, shareholders, consumers, employees regulatory body have positive attitude which definitely affects positively by increasing sales and profit. It can be said more clearly that the expense for CSR is not actually wasteful because it produces social benefits.

2.15.7 Social expectation

Business as a citizen of the society rightly can expect social patronage and sanction in relation to which the society can also claim to have some special care apart from goods and services. Any organization or business largely depends on society. It takes its all inputs such as land labor capital and raw materials. So society can expects some contributions from business firms. It is the obligation of businessmen to pursue

those policies, to make those decision, or to follow those lines of actions which are desirable in terms of objectives and values of society ( Bowen 1953). Every citizen expects that each and every organization should be socially responsible. So it can be told that CSR is actually the demand of time and situation. From this viewpoints, every organization should meet the expectation of the society by contributing a certain a certain part of their profits.

2.15.8 Human resources

Human resource is the most valuable resource for an organization. This resource plays critical and important role that can be an aid to recruitment and retention. Social responsibilities emphasized, in addition to making a fair and adequate return on capital, business must be just and human as well as efficient and dynamic(Mukherjee, 1969). Now the organizations face very competitive situation in case of hiring competent employees. It is generally seen that now fresh graduate and experienced employees prefer to the organizations that have CSR policy. CSR can also help improve the perception of a company among its staffs, particularly when staff can become involved through payroll giving. After all, it can be said that CSR program benefits the organization in attracting, building and retaining employees.

2.15.9 Brand differentiation

Brand differentiation is the term for which organizations make their efforts to create it. In a crowded marketplaces, companies strive for a unique selling proposition that can separate them the competition in the minds if consumers. In this case corporate social responsibility plays a vital role to build customer loyalty based on distinguished ethical values. So CSR program makes the organization different from competitors. Brand differentiation helps in increasing sales which ultimately contributes to the overall performance of the organization.

2.15.10 CSR and Public Relation

CSR plays a significant role in building and maintaining public relation. Corporations are increasingly becoming motivated to be socially responsible because their stakeholders expect that corporations understand and address social and community issues that are relevant to them. As the socially responsible firms arrange social programs and contribute to the society, these activities help them to have good relationship with public. This certainly increases the social image and status of the organization.

2.15.11 Risk Management

Risk Management is one of the most vital parts of corporate strategy. It can be thought as a central part of many corporate strategies. Reputation that is built through efforts of many years may be destroyed within very short time by incidents such as corruption or environmental accidents. These factors affect the image of the corporation negatively. Besides, the government, regulatory body as well as court may impose restriction on the operation of the corporation. Building a genuine culture of doing the right thing within a corporation can offset these risks.

2.15.12 Mutual Benefits

CSR policy produces mutual benefits for both corporation and the community or society where it operates. Social responsibility is very similar to social responsiveness which means the ability of corporation to relate its operation and policies to the social environment in ways that are mutually beneficial to the company and to society (Weihrich & koontz, 1994). Expense for CSR policy creates image for the organization. Besides, this expense gets tax advantage in many countries of the world. It is the duty and responsibility of the corporation to protect the interest of the society. Good working environment is very conducive to and expected by the corporation. So while society gets some benefits, it ultimately produces some benefits for the organization in return.

2.15.13 Social Responsibility as an Investment

Some businesspersons or managers consider expense for social responsibility is useless or avoidable cost. But researchers found that Planned reasonable amount of expense for corporate social responsibility brings direct and indirect benefits to the business and the society or community as a profitable investment. Business incurs substantial amount of cost because of providing various social benefits to different interest groups. This cost will produce more benefits from these interest groups in future. It can be said that increased cost incurred from rendering social benefits to the employees, consumers, community and general public will result in high employee morale, higher productivity, reduced cost and increased goodwill. (A.R. Khan, 2000 p. 63). All these factors will contribute to higher future revenues. So amount spent for corporate social responsibility is not costs rather investments.

2.15.14 Promotional Tool

Business firms run their promotional activities through different ways. Some of them are more effective for their own benefits while other ways benefit at some extent to the society. CSR is the only way which benefits the business firm and the society. CSR acts as a very effective tool to run promotional activities.

General public, regulatory body takes CSR positively. CSR activities are published through annual report and different media which make the organization well known make it different from the competitors it faces. Thus CSR provides competitive advantage.

2.15.15 Globalization and Market forces

As most of the corporations pursue growth through globalization, they are facing new challenges. These new challenges impose limits to their growth, operation as well as profits. Government regulation, tariffs, environmental restriction are the problems or causes that can cost organization millions of dollars. All these factors influence the organizations to follow or to involve in corporate social responsibility. Some of the companies use CSR policy as a strategic tactic to have public support to be present in the global market. This helps them to gain a competitive advantage .Under CSR policy; they make some social contributions which also work as a subconscious level of promotion.

2.15.16 Laws and Regulations

Although in most countries there exist no strict rules and regulations to implement CR policy while operating corporate activity, but it is getting importance because of many legal and social issues. Another driver of corporate social responsibility is the role of the government. In 2004, ISO announced its intention to develop an international standard on SR for publication in 2008(ISO. 2005.). Now government realizes that corporations can not harm the broader social good, including people and environment. The critics of CSR state that the government should impose laws and regulations. These laws and regulations will allow corporations to conduct their business operations responsibly. The government should also set the agenda for social responsibility for the particular corporations.

2.15.17 CSR and Nature of Business

Many scholars argue that a corporations main or one purpose is to maximize the profit for its shareholders. They also claim that only people can have social responsibility and corporations are only responsible to their shareholders not to society as a whole. Although they accept that corporations should obey the laws imposed by the government or regulatory body of the countries within which they work but

the corporation have no other obligations to the society. But other scholars claim that all economic entities have obligations to society as they work within it. the socially responsible firm is one that is responsive to the demand of society, not only economic ones, but social and environmental as well ( Monsen 1973). Besides, many CSR proponents point out that CSR can significantly improve long term corporate profitability because it reduces risk as well as inefficiencies while offering a host of potential benefits such as enhanced brand reputation and employee engagement.

2.16 Arguments against CSR

CSR has many positive sides for both organization and the society or community where organization operates its business. Business function is economic not social, and economic values should be the only criteria to measures success ( Davis & Blomstrom 1975 p.30). There are some logical arguments behind CSR while profit maximization is the only goal of the organization. Some specialists say that corporation starts CSR activities for the commercial benefit through raising their reputation with public or with government. Some strong arguments are described below:

2.16.1 Conflict of Interest

There is potential for conflicts of interest. Owners of the firms may claim that they invest only for higher profit. If CSR activities are run, these activities will reduce the rate of return from investment. So there exists potential for conflicts between owners and managers of the organization because of CSR.

2.16.2 Reducing Economic Efficiency

Some experts say that social involvement may affect economic efficiency of the particular organization which follows CSR policy. While economic efficiency decreases, it certainly reduces profit. Social involvement increases operating expenses and it is difficult to run CSR programs or activities with the same management.

2.16.3 Increasing Cost and Price

It is obvious that to run CSR activities requires expenses and management skills. These expenses and management skills increase the per unit production cost of product or service. So this extra cost leads the managers or organization to set higher price which is ultimately borne by consumers. Another emerging perspective is one that views CSR in a less altruistic light. Todays CEO increasingly argues that integrating social, environmental and financial goals is imperative to what Freidman describes as the fundamental role of the corporation: To make as much money for their shareholders as possible (Freidman, 1962. P. 133).

2.16.4 Lack of Legal Sanction

There is no legal sanction for diverting business resources for such actions. This is a clear argument against CSR. The managers and owners of the most firms claim that there exist no legal rules and regulations imposed by government or regulatory body that every corporation has to maintain CSR at a certain level.

2.16.5 Responsibility without Social accountability

CSR is performed by the organization without any social accountability. Every organization selects the sector which benefits them more. Actually they do not consider importance of the sectors or do not go for the preferred sectors. They perform CSR according to their willingness and it has no accountability to the society.

2.16.6 Corporations dont really care

There are some opponents of CSR who claim that corporations actually do not care about the social welfare. They claim that corporations run some CSR programs or policy for only their own benefits. They say that corporations start CSR activities to raise their reputation and minimize risks. They seek some helps from government and social bodies. They actually run this policy as very cost effective promotional tool as these corporations can demand that they are socially responsible and care about the whole society where they operate.

2.16.7 Corporations are too busy to survive

It is another strong argument against CSR by the opponents that corporations are too busy to survive. They think that in this hypercompetitive market corporations should pay full attention to their own activities to compete with competitors. To survive in this global market, they are to enjoy competitive advantage either through cost leadership or product differentiation. But CSR programs or policy increases the cost of the organizations. These costs are added to product cost. So this definitely induces to set higher price for the product offered in the market. So it becomes hard for the organizations to survive or to make higher return while other organizations with no CSR policies can offer a product with same level of quality at lower price.

2.16.8 It is the responsibility of the politicians

The opponents of CSR argue that corporate social responsibility is not their legal duties and responsibilities. It is the responsibility of the politicians. Businesses are traditionally beyond morality and public policy. Business organizations are supposed to do what they are allowed to do. They expect that government is supposed to provide the legal framework for conducting business. These opponents also claim that corporations pay corporate taxes to the government. So it is the responsibility of the government to care about the social welfare

Some more arguments: Businesses are owned by Shareholders. So it is considered that money spent on corporate social responsibility by managers is theft of the rightful property of the owners. The leading companies who report on their social responsibility are basket cases. The most effective business leaders don not waste Valuable time on this issue. It is said by the opponents of CSR that corporations have no time to focus on CSR.They are to focus on their core business to make higher profit. Involvement in social programs gives business too much power. Business lacks the expertise to manage social programs. Rising costs of export goods cause difficulty in foreign competition. Different business with divergent viewpoints will cause social friction. Without expert skill standard quality of such services may be low.

Overlap in the movement of two constituents of pluralism. Political commitments through government actions may be curbed.

2.17 How to evaluate CSR

Without evaluating social responsibilities all efforts of organization may fall in vain. An organization that is very much concern about social responsibility must ensure that its efforts are producing the desired results. If the organization is careless about evaluating social responsibility, then it is not possible for the organization to get the benefit derived from these activities. But how can organization evaluate social responsibility? It may seem difficult to evaluate social responsibility for organization, but there are formal methods to evaluate this. Organization can evaluate social responsibility through social audit or corporate social audit.

2.17.1 Social Audit:

Many big corporations of the world spend millions of dollar every year for social welfare purpose. These firms need to determine whether they are spending their money wisely or not. These firms can perform social audit to evaluate its SR activities. Social audit is nothing but a systematic reviews or analysis of corporations performance of social responsibility activities. A large number of firms which spend huge amount of money for SR purposes conduct this systematic review of their performance of social responsibility activities through a social audit. A social audit analyses short and long term contributions of the corporations towards society. The society activities performed by the corporations may include community involvement, product safety, and the impact of business activities on the environment. Though social audit is more informal than an accounting audit, it can be an essential element in assessing SR. Besides social audit, there are many big corporations which conduct corporate social audit to evaluate SR activities. Occasionally a corporate social audit is a formal and direct analysis of the effectiveness of the firms social performance. This type of audit is performed by a group of high level managers from within

the firms. The purpose of this audit is to analyze and recommend the corporation which sector should be given high priority or attentions. But on this audit requires a huge time to conduct, organization do not frequently conduct it.

Chapter 3 Methodology

3.1 Introduction
The term research methodology is combination of two words namely research and methodology. The word research means something people or researchers undertake to find out things in a planned or systematic way to obtain knowledge and the word methodology refers to the way in which information is found or the way something is performed. Research methodology defines what the activity of research is, how to proceed, to measure progress and what constitutes success. Research methodology is a very vital part or area while conducting a research. It requires very careful attention because if the right method or approach is not selected or applied, then it is more likely that main objective will not be met or gained. It can be divided into three types namely fundamental research, strategic research and applied research (Sounders, Lewis and Thornitt, 2007). In this study, it has been tried to show how Standard Chartered Bank is gaining competitive advantage over competitors to sustain in the competitive business world focusing on CSR activities. Through CSR policy this bank is trying to retain the well-informed customers

and attract the new customers thereby increasing revenues. In this study, quantitative and qualitative approaches have been used. Samples have been taken for managers, employees and customers separately from respective population to draw a conclusion through data analysis and findings. Both primary and secondary data has been collected and used. For this study, simple random sampling has been used, which is also known as representative sampling. Sampling is used because it requires less time, efforts and costs. Random sampling has been chosen because while it is chosen at random and the size of the sample is large enough, it can represent the population with very little variation or sometime with very insignificant variation. Three questionnaire surveys have been conducted to three samples of managers, employees and customers of Standard Chartered Bank. Those questionnaires filled up by managers, employees and customers.

3.2 Research approach

Research approach simply refers to the approach or way on which the research work is done. The research can be classified into two types. These two types are: 1. Deductive or inductive research 2. Qualitative and quantitative research. Researchers can use either both of the approach or one of the approaches. The qualitative and quantitative approach is the way on which Researchers chose to treat and analyze the collected data. In the quantitative approach Researchers tries to show quantitative result regarding research. On the other hand, in the qualitative approach, they show the nearness to the objects of the research. Although both the method has been used widely for research purposes they have both some strength and weakness. One approach cannot be held better than the other ones. The best research approach or method to use for a study depends on the studys research purposes and the accompanying research question. (Yin 2003). These two approaches have some significant differences. In the quantitative approach the result what we find is based on number and statistics which are presented in figures in the qualitative approach. The approach which I used for research purposes depends on some factors regarding what types of information is required. In my research, these two approaches (quantitative and quantitative) are used. My research question is design accordingly. The survey of this research is conducted on the basis of this questionnaire to manager, employees and clients of standard chartered bank. The data what we find from this Questionnaire survey is presented in qualitatively and in

quantitative approach. These two approaches have been used to make the thesis paper more understandable and reliable.

3.3 Sample Selection

Although the need for adequate and reliable data is increasing for making wise and well-informed decisions, sampling is required for many reasons such as budget and time constraints. There two ways through which required data and information can be collected. They are as follows Census method Sampling method Each method has its own merits and demerits. The census method provides greater accuracy and data or information can be collected for each unit of the population while sampling is less expensive and it requires less time and efforts. Sampling is only a tool which helps to know the characteristics of the universe or population by examining a small part of it (Gupta and Gupta p. 459).There two types of sampling methods namely random and non random sampling methods. For this study, random sampling method has been used. Under sample selection, a questionnaire survey has been conducted to three separate samples of 7 managers, 20 employees and 25 customers of Standard Chartered Bank. Data analysis and findings part has been done on the basis of these samples data and information

3.4 Data collection

Simply data refers to the raw facts and figures. It constitutes the foundation of statistical analysis and interpretation. Hence the first step in statistical work is to obtain data. Data can be obtained from primary and secondary sources. For the purposes of my research these two methods are followed.

3.4.1 Primary data:

Primary data are measurements observed and recorded as part of the original study. The primary data, which helps for the research to do more effective research of the study, when talking about secondary data: there to investigate the demand on which the consumer behavior is based, thus it was decided ( Bovee & Thill, 1992). When the data required for a particular study can be found neither in the internal

record nor in published sources may it become necessary to collect primary data. The primary data helps effective research because this data are collected from the original sources. The work of collecting original data is usually limited by time, money, and manpower available for the study. . Primary data is essential to be assured of the reliability and validity of the data. The reliability and validity of the primary data depends on some factor. So researchers have to be cautious about when collecting primary data. There are some approaches to collect primary data. These include direct interview & observation and questionnaire. For getting actual result from primary data, data should be collected and presented in a planned and systematic way. For my research both primary and secondary data have been used. The primary data here is used in the form of observation and questionnaire. The approach which I followed to collect primary data is described below:

3.4.1.1 Direct and telephone interview

For the purposes of filling questionnaire I have followed some systematic way. I have taken interview of 7 manager, 20 employees, and 25 clients of standard chartered bank from different branches. I asked them whether they are facing any kind of problems regarding questionnaire. If they did not understand any question I gave them clear indication that helps them to realize the issues regarding CSR. When they realized only then I collect data from them. I have used many types of interview including telephone, face to face interview and soon. I have collected different types of data from different sources. As I have collected data from manager, employees, and clients, these special groups have been made unique question based on their position on different areas of CSR. Every individual have given their opinion regarding CSR policy of standard chartered bank and overall CSR scenario of the world. All of the respondents provide their own opinion and their organization policy regarding CSR. It may be mentioned that when direct interview was not possible I used telephone interview.

3.4.1.2 Questionnaires
Questionnaire design: the purposes of direct and telephone interview was to fill up the questionnaire. This Questionnaire method is very helpful to collect data directly from respondents. The success of this Questionnaire method of collecting data depends largely on the proper designing of the Questionnaire. Designing of the Questionnaire is a highly specialized job and requires a great deal of skill and experiences. It is difficult to lay down any hard and fast rules to be followed in this connection. Although much progress has been made, the designing of questionnaire is still very much an art. While designing a Questionnaire we have to remember some special techniques to make the Questionnaire more effective

and reliable. First of all it is very important to think about Questionnaire size in respect of number of size. Then it should be easy and understandable to all respondent and it is very essential to avoid any unnecessary details and complexity. And finally question should be formulated for choice options from objectives or multiple answers. My Questionnaire of this research has been designed according to this way. I have made several questions to manager, employees, and clients differently regarding overall CSR condition of the standard chartered bank. They all responded according to my question guide. Through this Questionnaire I have collected primary data directly from manager, employees, and clients. This Questionnaire method is selected to collect data to find out reliable and relevant information directly from respondent so that the research becomes more representative. This Questionnaire survey is conducted among 7 managers, 20 employees and 25 clients of standard chartered bank. The aim of this survey is to describe the nature and importance of CSR to sustain in competitive business world.

3.4.2 Secondary Data

It is already mentioned that data can be primary or secondary. When an investigator uses the data which has already been collected by others such data is called secondary data (Gupta and Gupta p.416). Secondary data is actually processed data or information. This type of data has already been collected and used for other purpose or research work. This type of data is less reliable compared to primary data. Secondary data is generally collected from books, journals, articles, reports, government publications, trade and professionals and Internet. This kind of data is easy to access or collect and less costly. For this study, the used to collect secondary data is not different. For collecting secondary data, some reliable sources have been used. Some relevant books, journals, articles and Internet have been used. Secondary data and concept have been also taken from other research papers. It is also a matter of concern that secondary data must be used with utmost care, because secondary data may be full of errors because of bias, inadequate size of sample etc.

3.5 Data validity and reliability: Yin (1994) claims that research design is the logical sequence that
connects empirical data to its conclusions. Hence, for a research measure to be valid, it must also be reliable and vice versa

3.5.1 Reliability
Reliability is a tests first requirements and refers to its consistency (Dessler, p.211). There are several ways to estimate reliability. Reliability is very important for any research work. Actually reliability refers to the consistency in the outcome from the use different ways. (Lekvall&whahlbin, 1993) states a research holds high reliability if it can be repeated several times and the outcome is same. The reliability of my report is conducted on the basis of questionnaire and found output. I tried to shows the reliability of work by the questionnaire set to the people of different position of Standard chartered bank. I think this paper shows the reliability of findings and it is to be reliable if other process is used.

3.5.2 Validity
Validity is a characteristic of measurements concerned with the extent that a test measures what the researcher actually wishes to measure; and that differences found with a measurement tool reflect true differences among participants drawn from a population (Cooper and Schindler, 2008. p. 714). Actually reliability does not prove that you are measuring what you intend to measure. It is usually somewhat critical to resolve validity than reliability. For the purpose of this validity some managers, employees, and customer of standard chartered bank have been asked to fulfill questionnaires. Through these questionnaires some statistical methods have been used to validate.

Chapter four

Data analysis and findings

4.1The Introduction
For the purpose of conducting research, 7 managers, 20employees and 25 customers of standard chartered bank have been surveyed from different branches of standard chartered bank. The number of surveyed people has been selected randomly in order to make data more relevant and representative. All the findings and information have been presented graphically.

4.2 Survey analysis for managers

Managers are most important people and they play key role in the implementation of policy of any business organization. These people have been selected and surveyed to find most reliable and relevant information regarding CSR policy of Standard Chartered Bank. They were asked several questions they answered very sincerely according to their own opinion. The data and information collected through questionnaire are presented and explained graphically

Survey Question no 1. Do you think that every business firm should follow CSR policy?

Graph 1.1 Shows survey report of question no. 1

When the respondents (managers) were asked to tell that whether every business firm should follow CSR policy while conducting normal operation of the business or not, among 7 respondent 6 respondents told yes and remaining one person told no while no one was neutral in expressing any response. It is clear from above statement that on an average 85.71 % respondents were in favor of the policy and

14.29% respondent were against the policy while o% respondent was neutral. So it can be concluded that most business managers claim that every business firm should follow CSR policy.

Survey Question no 2.

CSR is essential to sustain in the competitive

business world. How much do you agree with this statement?

Graph 1.2 Shows survey report of question no. 2

It was stated to managers that CSR is essential to sustain in the competitive business world. But 3 respondents strongly agreed with this statement, 3 respondents agreed with it while the remaining person disagreed with other respondents response. In this case, no one was r neutral nor disagreed with this statement. So it can be claimed from this result that on an average 42.86% managers agreed with the statement and 42.86% respondents strongly agreed with it. But 14.28% respondents disagreed with people who strongly agreed and agreed. It is also noticeable fact that no one was neutral or strongly disagreed with the statement. So total (42.86%+42.86%) 85.72% managers think that in this very competitive business world, it is very important or essential to follow CSR policy to sustain.

Survey Question no 3. Does it (CSR) really provide competitive advantage to your organization?

Graph1.3 Shows survey report of question no. 3

When respondents (managers) were asked to reply that whether CSR policy provide any competitive advantage over competitors, out of 7 respondents, 4 respondents said yes that it provides competitive advantage. Among them 2 persons said no that it really cannot provide any competitive advantage and one of the seven respondents was neutral in opinion. From this observation, I can say that approximately 57.14% managers take CSR policy with the intention of gaining competitive advantage while maintaining social responsibility at the same time. For this reason Standard Chartered Bank involves in CSR activities for both to gain competitive advantage and to perform some social responsibility. But on an average 28.57% respondents claim that CSR policy cannot provide any competitive advantage.

Survey Question no 4. Stakeholders prefer the organization which emphasizes on CSR policy. How much do you agree with this statement?

Graph 1.4 Shows survey report of question no. 4

Managers opinion was tried to find out through a statement that stakeholders prefer the organization which emphasizes on CSR policy. Among selected 7 respondents, 2 respondents strongly agreed with this statement and 3 out of 7 people agreed with it. But one of those seven persons one disagreed with the statement and remaining one person was neutral in expressing any clear opinion. So from this observation, it can be stated that on an average 28.57% managers strongly agreed and 42.86% managers agreed with the statement that stakeholders prefer the organizations with CSR policy. Actually totally 71.43% managers were in favor of the statement. But approximately 14.28% managers disagreed with those managers who agree with the statement.

Survey Question no 5. Every business organization is ethically responsible. Specify your opinion

Graph 1.5 Shows survey report of question no. 5

A general statement was made to those respondents who were included in survey about that every business organization is ethically responsible and they were asked to specify their opinion. Among 7 managers, 2 respondents strongly agreed and 4 of them also agreed that every business organization is ethically responsible as they operate in the society or community. But one of them did not agree or disagree. It is

also good that none of them did not strongly disagree or disagree with the statement. So it can be mentioned that around 28.57% respondents strongly agreed and 57.14% respondents agreed with. So totally 85.71% respondents (managers of Standard Chartered Bank) say that every business is ethically responsible.

Survey Question no 6. Do you think that CSR policy reduces overall profitability?

Graph 1.6 Shows survey report of question no. 6

The respondents were asked whether CSR policy reduces overall profitability or not. Some of them said yes and some of them said no. Out of 7 respondents (managers), 4 respondents said yes that CSR policy involvement reduces overall profitability of any business organization. But 3 respondents out of 7 declare that no; CSR policy does not reduce overall profitability. So it is clear from above observation that about 57.14% managers agreed with statement that CSR policy does profitability of the business firm while 42.86% reduce profitability of the business organization. reduce overall managers of Standard Chartered

Bank Did not agree with the statement and they said that no, CSR policy does not

Survey Question no7. Do you think that CSR acts as an effective promotional tool?

Graph 1.7 Shows survey report of question no. 7

The respondents were asked to specify their opinion on the statement that CSR acts as an effective promotional tool for the organization. Five options were given them. Among 7 respondents, 2 respondents strongly agreed with it and remaining 4 respondents agreed with the statement. No person strongly disagreed or disagreed with the statement. Approximately 28.57% respondents strongly agreed and remaining 71.43% respondents agreed .Total (28.57%+71.43%) 100% respondents agree that yes, CSR acts as an effective promotional tool for the organization. For this reason, Standard Chartered Bank follows policy with the dual objectives. It uses CSR activities as a tool to promote its products and services and another objective is to maintain social responsibility to the society.

4.3 Survey analysis for employees

Employees are also important people and they play vital role in the implementation of policy of any business organization. 20 employees have been selected and surveyed to find most reliable and relevant information regarding CSR policy of Standard Chartered Bank. They were asked several questions they answered very

sincerely according to their own opinion. The data and information collected through questionnaire are presented and explained graphically Survey Question no 1. Do you think that every business firm should follow CSR policy?

Graph 2.1 Shows survey report of question no.1 The first question was same to the employees and twenty were asked the question. When the respondents were asked to tell that whether every business firm should follow CSR policy while conducting normal operation of the business or not, among 20 employee of Standard Chartered Bank 15 said that yes, every business firm should follow CSR policy at some extent. It is surprising that 3 respondents of them against of the policy and they said no, every business firm should not follow CSR policy. Even 2 people out of 20 were neutral to say yes or no. From this survey it is obvious that on an average 75% employees want the organization to follow CSR policy and 15% respondents want the organization not to follow it.

Survey Question no 2. CSR is essential to sustain in the competitive business world. How much do you agree with this statement?

Graph 2.2 Shows survey report of question no.2 It was stated to employees that CSR is essential to sustain in the competitive business world and they were asked to specify their opinion. Among 20 employees, 4 respondents strongly agreed with the statement and 11 employees agreed with it.3 of them disagreed with the statement that CSR is essential to sustain the

competitive business world. Two of them were neutral and they did not agree or disagree. If it is expressed in term of percentage, 20% employees of Standard Chartered Bank strongly agree that CSR is essential to sustain in the competitive business world and also 55% respondents agree with it. Approximately 15% employees disagree with the statement that CSR is essential while no one strongly disagree. So totally (20%+55%) 75% respondents declare that CSR is essential and Standard Chartered Bank emphasizes on it to sustain

Survey Question no 3. Do you think that CSR affects employee career planning?

Graph 2.3 Shows survey report of question no.3

A more relevant question to employees was asked to specify their opinion. They were asked whether CSR policy affects employee career planning or not. Conducting survey, it is found that out of 20, 12 employees say that CSR policy affects employee career planning. Only 3 employees of them think that CSR policy does not affect their career planning and they disagree with those who agree. It is also found that a large number of employees are not clear themselves that whether they are affected or not by CSR policy.5 respondents out of 20 were neutral in expressing their opinion. So I can conclude that more than half of the employees think that CSR policy affects them and they consider it while planning their career. So Standard Chartered Bank should give emphasis on CSR to retain these employees and attract new employees to be preferred employer.

Survey Question no 4. Do you think that CSR policy of Standard Chartered Bank affects customers choice?

Graph 2.4 Shows survey report of question no.4

This is a very important question asked to the employees. Through this question it was tried to find out that really CSR policy of Standard Chartered Bank affects customers choice in selecting it. Total 20 employees were asked to fill up the question and it was found that 11respondents out of 20 said yes that CSR policy of Standard Chartered Bank affects customers choice. It is also noticeable fact that a large number of employees disagree and said no, it does not really affect customers choice. Out of 20 respondents 4 respondents were against the statement. Even a larger part of them do not actually know whether CSR policy affects customers or not and they were neutral .That is why they did not say yes or no. So I can draw a conclusion that on an average 55% employee believe that CSR policy of Standard Chartered Bank affect customer in taking decision about selection of the organization but 20% respondents disclaim it. So Standard Chartered Bank should continue CSR policy for betterment of the organization as well as society.

Survey Question no 5. CSR policy increases the employee loyalty to the organization. How much do you agree with this statement?

Figure 2.5 shows survey report of question no: 05

When the employee were asked about whether the CSR activities of standard chartered bank increases employees loyalty or not to the organization, out of 20 respondent 3 people responded that they are strongly agree with this statements, 9 people responded that they are agree with this statements, 3 people were neutral in providing their opinion, 4 people responded that they are disagree with this statements and 1 person responded that they are strongly disagree with the statements. From the above information it can be said that 15% of the respondent were strongly agree with the statements, 45% of them were agree, 15% of the respondent were neutral, 20% of the respondent were disagree, and the rest 5% of the respondent were strongly disagree with this statements. So we can conclude that, as the majority of the percentages of employee loyalty depend on CSR policy, the standard chartered bank should emphasis on CSR to make their employee more loyal to the organization.

Survey question no: 06 Do you think that involvement of CSR reduces the efficiency of the organization?

Figure 2.6 shows survey report of question no: 06

When the respondent were asked about whether the involvement of CSR activities of standard chartered bank reduces the efficiency of the organization, out of 20 employees 8 respondent responded that it reduces the organization efficiency as organization have to give extra time and money for this purposes, 10 responded that it does not reduces the efficiency, on the other hand 2 person were neutral in

providing their opinion. This shows that 40% of the respondents think that involvement of CSR reduces the organization performance, 50% of the respondent responded that the involvement of CSR does not reduces the efficiency of the organization, on the other hand 10% of the respondent were neutral. The information given above indicates that almost half of the employees think that CSR involvement reduces the organization efficiency. But it is clear that, though involvement of CSR reduces the organizations efficiencies in some extent the bank should increases this policy if they want to get extra facilities in another area.

Survey question no: 07 Do you think that CSR acts as an effective promotional tool?

Figure 2.7 shows survey report of question no: 07

When the respondent were asked about whether the CSR policy act as a promotional tool, out of 20 respondent 17 responded that CSR policy act as a promotional tool, 3 people responded that they have not clear opinion about this issues, on the other hand no person responded negative. From the above given information it is found that about 85% of the respondent told that CSR policy act as a promotional tool, 15% of the respondent did not provide their opinion. So it is clear that CSR act as a promotional tool. Through CSR policy Standard chartered bank can improve its promotion. This policy acts as two dimensions, one side maintaining social responsibility and the other side increasing advertising to its organizations. As maintaining social responsibility and increasing advertisement are both important to sustain in the competitive business world, standard chartered bank should follow this policy to achieve this factors.

4.4. Survey analysis for customer

For the purpose of filling questionnaire from customer I have selected 25 customers from standard chartered bank from different branches and collected data regarding CSR. While selecting data from them they have given their opinion regarding CSR OF standard chartered bank. The question which we asked them and the data found are presented below:

Survey question-01: Do you know about CSR?

Graph 3.1 shows survey report of question no.1 When I asked the customer about their opinion whether they know about CSR on not out of 25 respondents 19 responded yes, 2 clients responded no, and 4 did not responded. So we can see from the above information that about 76% of the respondent knows about CSR, 8% of the respondent doesnt know about CSR and about 16% of the respondent did not provide their opinion. Thus I can conclude that most of the client of standard chartered bank knows about CSR and its use of the corporate world as about 76% of the respondent responded positively. Only a little percentages of the client have not clear idea about CSR and also a little percentages of the client of the does not provide their opinion. Survey question: 02 Do you think that every business firm should follow CSR policy?

Graph 3.2 shows survey report of question no: 2

When the respondent (customer) were asked whether all of the organization should follow CSR or not out of 25 respondents 22 responded yes, 3 respondent did not provide their opinion and no one showed negative opinion about CSR policy. So we can say that about 88% of the respondents think that all organization should follow CSR as it is very important issues now a day, 0% of the respondent think that it is not essential to follow by the organization, and 12% of the respondent do not comments on the issues. So I can conclude on the basis of this information that as most of the respondent feel its necessary so standard chartered bank should follow CSR policy. If they dont follow CSR there is a great chance to lose customer confidence.

Survey question no: 03 did CSR policy of SCB affect your choice?

Graph 3.3 shows survey report of question no: 03

When the respondent were asked whether the CSR policy of standard chartered bank affected their choice of selecting this bank, out of 25 respondent 12 person responded that CSR policy of standard chartered bank affected their choice of selecting the bank. 5 people responded that the CSR policy of standard chartered bank did not affect their choice selecting this bank. And the rest 8 of the respondent did not provide their opinion. From the above information we can conclude that 48% of the respondent were affected to select this bank by the CSR policy of standard chartered bank. 20% of the respondent told that this policy did not affect their

choice of selecting the bank. And the rest of 32% of the respondent did not comment on their choice of selecting the bank. This information shows that the CSR policy of standard chartered bank affect choosing the bank for their clients but not affect tremendously as only 48% of the respondent were affected by this policy .On the other hand 32% of the respondent did not provide any opinion regarding this issues. This indicates either they are not conscious or value the CSR policy as it did not affect them directly. Survey question no: 04 what is your opinion about CSR of Standard Chartered Bank?

Graph 3.4 shows survey report of question no: 04

When I asked the respondent about their opinion of CSR policy of the standard chartered bank out of the 25 clients 3 respondent that the current policy of CSR of the standard chartered bank is very good, 13 clients respondent that it is good, 5 clients did not provide their opinion regarding this issues, 3 clients told that it is bad and the rest of the 1 person said that it is very bad. From the above information we can conclude that only 12% of the respondents are very satisfied of the CSR policy of standard chartered bank, 52% of the respondent are satisfied, 20% of the respondent are neutral about this policy, 12% of the respondent showed their dissatisfaction and the rest of 4% of the respondent showed their very dissatisfaction regarding the CSR policy of the bank. So from the above information we can say that though most of the respondent showed their satisfaction, big percentages of the person are not satisfied of their policy. So to attract the vast segments of the clients the standard chartered bank should increase its CSR policy and programs.

Survey question no: 05 Do you think that CSR activities of Standard Chartered Bank should be increased?

Graph 3.5 shows survey report of question no: 05

When I wanted to know whether the CSR activities of the standard chartered bank should increase or not, out of 25 respondents 19 person responded that the bank should increase its CSR policies and programs, 1 person responded that the bank should not increase its CSR policies and the rest of the 5 person did not provide any opinion on this matter. From the above given information w can say that 76% of the respondent feel the necessity of increasing CSR activities of standard chartered bank, 4% of the respondent do not feel the necessity and the rest 20% of the respondent are neutral about the matter. As the business world is getting more and more competitive and the most of the respondent feel its necessity, the standard chartered bank should increase its CSR activities around the world to make its customer more satisfied and more relative to the bank. If he bank does not take initiative accordingly it may lose its customer base and hence the market shares.

Survey question no: 06 How much CSR is important to you?

Graph 3.6 shows survey report of question no: 06

Again when the respondent were asked about their opinion relating to how much CSR is essential to them, out of 25 respondent 3 people responded that CSR is most important to them, 17 people told that it was important to them, 3 people did not give their opinion and the rest of the 2 people responded that CSR is less important to them. From the above given information we can conclude that CSR is more important to about 12% of the respondent, is important to 68% of the respondent, is less important to 8% of the respondent. On the other hand 12% of the respondent was neutral about giving their opinion. So we find from the information that CSR is very important to most of the respondent. It is not very important to only a few percentage of the respondent. It is clear that the standard chartered bank should give importance to CSR as most of their clients regard it as an important matter now a day. If they do not give it much importance their clients can switch to their competitor who will give importance to this mater.

Survey question no 07.CSR activities of Standard Chartered Bank should be enlarged across the world. Specify your opinion

20 15 10 5 0
str on gly ag re e ag re e ne utr str dis al on ag gly re e dis ag re e

S eries1 S eries2

Graph 3.7 shows survey report of question no: 07

As a multinational bank, standard chartered bank have to perform all over the world. As a result they have to perform CSR activities all over the globe. I wanted to know about their opinion what they think about the CSR activities of standard chartered bank should be enlarged or not. When the respondent are asked, out of 25 respondent 4 responded that they are strongly agree with this statements, 16 people responded that they are agree with this statements, 3 people did not provide their opinion, 2 people responded that they are disagree with this statement. So we can say that 16% of the respondent strongly agree with the statement that Standard chartered bank should enlarge its CSR activities around the globe, 64% of the respondent agree with this statements, 12% of the respondent was neutral in providing their opinion and 8% of the respondent was disagree with this statements. From the above information it is clear that as most of the respondent agrees with this statement the standard chartered bank should enlarge its CSR activities around the world.

Chapter five Conclusion & Recommendation

5.1 Conclusion
The main purpose of the study is to analyze whether the corporate social responsibility is essential to sustain in the competitive business world. This thesis paper actually describes how organization with the involvement of corporate social responsibility is getting more benefits compared to the costs spent for corporate social responsibility and how the organizations with no involvement of CSR activities are lagging behind. Some organizations consider expense for CSR activities is wasteful and needless for organizations as this cost does not increase revenue while other organizations consider CSR as ethical responsibility and as investment as it produces various benefits to the organization as well as to the interest group. Modern world is said to be the hypercompetitive in the sense that more and more

new business firm are entering in the field of business. This new firm creates competitive situation for the existing firm. On the other hand businesses are now not involving in its native land. Multinational Corporation is performing its business all over the world. This is another reason why business premises are getting more and more competitive than the before. Technological advancement has made the information available to the customer, competitor, investors as well as general stakeholders. No firm in the present world can sustain in the competitive market only providing quality goods and services, because every firm tries to provide its goods and service in improved manner. In this context a firm trying to reach in the highest position in its operation must do something unique to be different from other. Corporate social responsibility is one of the most successful ways to do this. There are many reasons of corporate social responsibility to be essential. In a word, it can be said that to perform CSR activities or to be concerned about CSR is the reality of the present time. Actually it is the demand of situation. There are some external and internal reasons behind this. There is a direct correlation between the economic result and company image of CSR policy. In the past, operation of business was limited to a certain area or to a group of customers. That is why competition was very low. But now business operates in a wide range of areas and faces very intense competition because of large number of buyers and suppliers, technological advancement and rules & regulations, every firm performs its operation in the environment. On the other hand every stakeholder who has direct and indirect interest to the firm is a part of the society. So maintaining social responsibility acts as two way dimension. One is maintaining social responsibility as a responsible participant and the other is use of this process as a promotional tool. It is not very hard to realize that every corporation is liable to maximize its shareholders wealth. The rate of corporate leader is vast in this respect. But maximizing profit is not the main concern of modern organization. This forces the corporate leader to rethink their duties towards the society and stakeholders. There are three perspective of CSR have been emerged from the past to present. First of them is the CSR on limited by legal obligation and profit maximization, the second view is the right thing to do for the benefit of society and the environment and third view s it as a process of value adding or creation. According to the traditional economic rationale it is thought that corporations are contributing to improve quality of life by providing goods and services, creating new job opportunity and

contributing to economic prosperity. Any action taken by the corporation defines the ultimate responsibility of the corporation. Every business is run by the business leaders. But these business leaders are not social advocates. They have been hired and trained to run business successfully. According to these perspectives, their role is solely evaluated with respect to profit maximization. Business laws and regulations serve as the boundary to the means by which corporations are able to motivate profitability. But beyond this, corporations have no social responsibility. Corporate social responsibility is not mandatory in all respects. It depends on the willingness of the corporation and legal environment. As the time is getting modernized and huge number of local and multinational corporations are performing their business activities, the total world incomes as well as per capita income of specific nations are also increasing from times to times. Every enterprise, enterprise for profit making or not for profit enterprise, has its own objectives. For business firms or enterprises, profit making is the indicator of normal operation. In the past, business was developed with sole objective of generating profit and the social welfare was not considered. But the current situation is not like that. Situation has changed over time. At the present time, the aim of the enterprise is not simply profit generation; it also considers the welfare of the society as ethical responsibility. In a word, it can be described more clearly that the objective of the business is the wellbeing of the involved persons organizations are very concerned that to survive to perform better, it is essential to enjoy competitive advantage by any means. Some organizations are doing CSR activities at a larger extent to have a greater social image to the community. This corporate social responsibility or activity is working in two ways for the organization as mentioned above. but is not the all about. There are some negative arguments against CSR which is already discussed in the literature review part and this argument is also supported by the data analysis and findings of questionnaire survey among the respondent. There are some logical reasons behind this type of arguments. The pessimists of CSR think that CSR not only has positive impact on the organization but it has also so many negative impacts on the firm. They claim that CSR reduces the overall profitability, efficiency of the firm. They also claim that CSR policy increases the cost and price of the product or the services which is ultimately borne by the customer or the clients. According to them CSR is not the legal obligation of the business or the corporation. It is actually the duty and responsibilities of the government or the politician. But

whatever they think CSR has many positive sides than negatives. Corporate social responsibility is an important issue now a day. Most of the business of the world are spending huge amount of profit for research purpose so that they can identify the strength and weakness of their business and also the relative position of their competitors. As my purpose was to research about whether corporate social responsibility is essential to sustain in the competitive business world. To analyze this statement I have selected Standard chartered bank for case analysis. The questionnaire I developed was related to my thesis purpose. The questionnaire I developed for the purpose of driving best comments from the people who is directly related to the Standard chartered bank. The data regarding the nature and importance of corporate social responsibility was collected from some managers, some employee and some clients of the Standard chartered bank. They provide their opinion regarding the CSR policy of Standard chartered bank. The data collected from them was directly related to thesis paper. I wanted some information regarding CSR policy of the bank from them which is related to my thesis statements. The data which I collected and analyzed is directly related to my theory. When the manager was asked about some important question relating CSR policy of their bank they responded in a way which directly support to my research objectives. The question asked to employees also related to these issues. As the main focus of every business in the present world is customer for getting more relevant and reliable information I collected some information from customer of standard chartered bank who also gave various important information related to CSR. But the main point is that, the data provided by them indicates one important conclusion that CSR is essential and every business should emphasize on these issues to get competitive advantage and to sustain in the modern competitive business world

5.1.1 Evaluation

This research paper is on the basis of data analysis and findings. Some most important questions or issues were placed to some interest group of the Standard Chartered Bank. Managers were asked to specify their opinion whether every business firm should follow CSR policy. On an average 85.71 % respondents were in favor of the policy. 85.72% managers think that in this very competitive business world, it is very important or essential to follow CSR policy to sustain. So I can conclude that Standard Chartered Bank should continue its CSR policy and should expand according to the needs and demands of the age. I can say that approximately 57.14% managers take CSR policy with the intention of gaining competitive advantage while maintaining social responsibility at the same time. For this reason Standard Chartered Bank involves in CSR activities for both to gain competitive advantage and to perform some social responsibility. Actually totally 71.43% managers were in favor of the statement. It was found in findings and analysis that 100% respondents agree that CSR acts as an effective promotional tool. Most of the managers say that every business is ethically responsible. It is the most surprising information for the organization. From this survey it is obvious that on an average 75% employees want the organization to follow CSR policy and 15% respondents want the organization not to follow it. Approximately 15% employees disagree with the statement that CSR is essential while no one strongly disagree. So totally (20%+55%) 75% respondents declare that CSR is essential and Standard Chartered Bank emphasizes on it to sustain .So I can conclude that more than half of the employees think that CSR policy affects them and they consider it while planning their career. So Standard Chartered Bank should give emphasis on CSR to retain these employees and attract new employees to be preferred employer. So I can draw a conclusion that on an average 55% employee believe that CSR policy of Standard Chartered Bank affect customer in taking decision about selection of the organization but 20% respondents disclaim it. So Standard Chartered Bank should continue CSR policy for betterment of the organization as well as society. From data analysis and findings, it was found that most of the customers were somewhat satisfied with the CSR activities of Standard Chartered Bank. But it is also noticeable fact that most of them claim that Standard Chartered Bank should enlarge its CSR activities to meet the upcoming needs of the society.

It is tough enough to complete a thesis paper. It requires hard work and effort because all the requirements for preparing a thesis paper are not easily accessible and available. It needs vast knowledge and both primary and secondary data. I myself have studied some books related to CSR to increase knowledge and also have gone through some journals. Articles, website to take help. For primary data and information I conducted several (three) questionnaire surveys for managers, employees and customers of Standard Chartered Bank. Totally 21 questions were designed to get required data from three samples of 7, 20 and 25 respondents respectively. There are some limitations to finish this study. The primary and secondary data used in this paper are not so available in the relevant areas. There were some limitations regarding designing questionnaire. The questionnaire which was design to survey managers, employees and customer was tough enough and had to give much effort to collect data from them. There are some surprising results I have found from data analysis and findings areas of this study. Most noticeable fact is that almost every manager, employees and the customer claims that every business corporation should involve CSR policy in their operation at some extent. It is also found that most of the manager, employees and the customer think that CSR act as an effective promotional tool for the organization and thereby providing competitive advantage through creating social images. The topic CSR is now a buzzword in the modern world. It is very important topic and is closely related to my studies. This thesis paper has improved my field of knowledge. I also think that this paper will work as a useful resource for standard chartered bank. This paper will also be helpful for study in the field of CSR and related issues.

5.2 Recommendations
The purpose of this thesis was to justify whether corporate social responsibility is essential to sustain the modern competitive business world. To find this result a systematic approach has been followed. The questionnaire which was made to justify these statements was filled up by some important parties of Standard Chartered Bank namely Managers, employees and customer who are directly and indirectly related to the implementation of the CSR policy of Standard Chartered Bank. From the questionnaire survey I wanted to know what these specific people think about CSR and its implementation in the Standard Chartered Bank. In response to the question these people provided important information regarding the current CSR condition of the world and the current situation of CSR activities of the Standard Chartered Bank. From this study I can conclude that the volume of CSR activities of the Standard Chartered Bank is somewhat satisfactory according to response of the respondent. The bank is also gaining competitive advantage by providing different value added services and maintaining CSR activities throughout the world. But as the world is getting harder and harder day by day this favorable situation will not remain in the future. Business strategy among different business houses are changing rapidly. So Standard Chartered Bank should adjust its CSR policies and programs according to the changing environment. So I find from this study, that though Standard Chartered Bank is enjoying competitive advantage through CSR policy, there still has some scope to do better. At the present Standard Chartered Bank should be very strategic. Now the customers are well-informed and they take wise decisions they are becoming educated. So I can recommend that Standard Chartered Bank should implement its CSR policy more effectively to maximize benefits for itself and society. Standard Chartered Bank should develop

appropriate separate regulatory body for implementation of CSR policy. It should create public awareness vastly about CSR activities and this public awareness will create social image for the bank. Standard Chartered Bank should also consider the betterment of the society. I can recommend that Standard Chartered Bank should manage the budget for CSR policy more effectively to produce maximum benefits. The bank has to be positively different somehow to stakeholders from competitors. To be different it has to develop strategic plan for its stockholders, managers, employees and customer. From this survey I found that most of the managers of the Standard Chartered Bank supported policy. Total (42.86%+42.86%) 85.72% managers think that in this very competitive business world, it is very important or essential to follow CSR policy to sustain. When the respondents (managers) were asked to tell that whether every business firm should follow CSR policy while conducting normal operation of the business or not .On an average 85.71 % respondents were in favor of the policy and 14.29% respondents were against the policy while o% respondent was neutral. So it can be concluded that most business managers claim that every business firm should follow CSR policy. So Standard Chartered Bank should emphasis on CSR policy at larger scale to satisfy theses managers and to retain them as they are key people of the organization Employees are most important part of an organization. Most of the business policy is implemented by them. So my survey covers the employees to a large extent. When the employees were asked to give their opinion about importance of CSR for an organization especially for the Standard Chartered Bank, impact of CSR on their career planning, and some other important issues such as role of CSR as an effective promotional tool and influence on creating employee loyalty, most of them responded in favor of CSR. So I recommend that Standard Chartered Bank should not only follow CSR policy but also increase it tremendously.

As Standard Chartered Bank is one of the largest and renowned banks in the world, it should be more careful to remain so and to do better. At the present customers are the main focuses of any business organization. For this reason I have conducted a separate survey for them to get feedback about CSR. Through this survey I have conducted 25 customer of the Standard Chartered Bank. Actually I have tried to find out how customers treat CSR policy. Through data analysis and finding I found that

most of them are very cautious about CSR policy. They are satisfied with CSR activities of the Standard Chartered Bank but they claim that Standard Chartered Bank should increase the volume of CSR activities and even they argue that every business firm should involve CSR policy. From this observation I can draw a conclusion that Standard Chartered Bank must widen its CSR activities to make these customers more royal and to attract new customer to sustain in the competitive and modern business world. I know that Standard Chartered Bank is performing its CSR activities in many sectors including sports, cultural activities, health purposes, education, agriculture and so many sectors. But as the business world is changing dramatically, so I specially recommend that the Standard Chartered Bank should modify its CSR policy to meet the current situation and to make its CSR budget on the basis of preferred sectors.

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Appendix 1

Questionnaire Survey for managers

Questi on No. 1 2

Questions Do you think that every business firm should follow CSR policy? CSR is essential to sustain in the competitive business world. How much do you agree with this statement? Does it really provide competitive advantage to your organization? Stakeholders prefer the organization which emphasizes on CSR policy. How much do you agree with this statement? Every business organization is ethically responsible. Specify your Yes-6 Strongl y Agree3 Yes-4 No-1 Agree3 Neutral0 Neutral0 Disagre e-1 Strongl y Disagr ee-0

No-2

Neutral1 Neutral1 Disagre e-1 Strongl y Disagr ee-0 Strongl y Disagr

Strongl y Agree2 Strongl y Agree-

Agree3

Agree4

Neutral1

Disagre e-0

opinion 6 7 Do you think that CSR policy overall profitability? Do you think that CSR acts as an effective promotional tool?

2 Yes -4 Strongl y Agree2 No-3 Agree5 Neutral0 Neutral0

ee-0

Disagre e-0

Strongl y Disagr ee-0

Questionnaire Survey for employees

Questi on No. 1

Questions Do you think that every business firm should follow CSR policy? CSR is essential to sustain in the competitive business world. How much do you agree with this statement? Do you think that CSR affects employee career planning? Do you think that CSR policy of Standard Chartered Bank affects customers choice? CSR policy increases the employee loyalty to organization. How much do you agree with this Yes -15 No-3 Neutral2 Neutral2 Disagr ee-3 Strongl y Disagr ee-0

Strongl y Agree-4

Agree11

Yes -12

No-3

Neutral5 Neutral5

Yes -11

No-4

Strongl y Agree-3

Agree-9

Neutral3

Disagr ee-4

Strongl y Disagr ee-1

statement? 6 Do you think that involvement of CSR reduces the efficiency of the organization? Do you think that CSR acts as an effective promotional tool? Yes -8 No-10 Neutral2

Yes -17

No-0

Neutral3

Questionnaire Survey for Customers

Questi on No. 1 2

Questions Do you know about CSR? Do you think that every business firm should follow CSR policy? Did CSR policy of SCB affect your choice? What is your opinion about CSR of Standard Chartered Bank? Do you think that CSR activities of Standard Chartered Bank should be increased? Yes -19 Yes -22 No-2 No-0 Neutral -4 Neutral -3

3 4

Yes -12 Very Good-3 Yes -22

No-5 Good-13

Neutral -8 Neutral -5 Neutral -3 Bad-3 Very Bad-1

No-0

6 7

How much CSR is important to you? CSR activities of Standard Chartered Bank should be enlarged. Specify your opinion

Most importa nt-3 Strongly Agree-4

Importan t-17 Agree-16

Neutral -3 Neutral -3

Less importa nt-2 Disagre e-2

Strongl y Disagre e-0

Appendix 2

Questionnaire for Managers

Q. 1 Do you think that every business firm should follow CSR policy? a) Yes b) No c) Neutral

Q.2 CSR is essential to sustain in the competitive business world. How much do you agree with this statement? a) Strongly agree disagree b) Agree c) Neutral d) Disagree e) strongly

Q.3 Does it really provide competitive advantage to your organization? a) Yes b) No c) Neutral

Q.4 Stakeholders prefer the organization which emphasizes on CSR policy. How much do you agree with this statement?

a) Strongly agree disagree

b) Agree

c) Neutral

d) Disagree e) strongly

Q .5Every business organization is ethically responsible. Specify your opinion a) Strongly agree disagree b) Agree c) Neutral d) Disagree e) strongly

Q.6 Do you think that CSR policy overall profitability? a) Yes b) No c) Neutral

Q .7 Do you think that CSR acts as an effective promotional tool? a) Yes b) No c) Neutral

Questionnaire for Employees

Q. 1 Do you think that every business firm should follow CSR policy? a) Yes b) No c) Neutral

Q.2 CSR is essential to sustain in the competitive business world. How much do you agree with this statement? a) Strongly agree disagree b) Agree c) Neutral d) Disagree e) strongly

Q.3 Do you think that CSR affects employee career planning? a) Yes b) No c) Neutral

Q.4 Do you think that CSR policy of Standard Chartered Bank affects customers choice?

a) Yes

b) No

c) Neutral

Q.5 CSR policy increases the employee loyalty to organization. How much do you agree with this statement? a) Strongly agree disagree b) Agree c) Neutral d) Disagree e) strongly

Q.6 Do you think that involvement of CSR reduces the efficiency of the organization? a) Yes b) No c) Neutral

Q .7 Do you think that CSR acts as an effective promotional tool? a) Yes b) No c) Neutral

Questionnaire for Customers

Q .1 Do you know about CSR? a) Yes b) No c) Neutral

Q. 2 Do you think that every business firm should follow CSR policy? a) Yes b) No c) Neutral

Q.3 Did CSR policy of SCB affect your choice? a) Yes b) No c) Neutral d) Bad e) Very bad

Q.4What is your opinion about CSR of Standard Chartered Bank? a) Very good b) Good c) Neutral

Q. 5 Do you think that CSR activities of Standard Chartered Bank should be increased? a) Yes b) No c) Neutral

Q.6 How much CSR is important to you? a) Most important b) Important c) Neutral d) Less important

Q.7 CSR activities of Standard Chartered Bank should be enlarged. Specify your opinion a) Strongly agree disagree b) Agree c) Neutral d) Disagree e) strongly

References

1. Business Ethics BY A R Khan First Edition page 51-57 2. Business Research Method by Donald R. Cooper & Pamela S. Schindler 10 th edition 3. Management by Griffin 9th Edition page 97-102 4. Marketing Research by Naresh K. Malhotra 5. The future of business by Lawrence J Gitman Fifth Edition page 88-90 6. Human Research Management by Gary Dessler 11th edition 7. Strategic Management by Fred R. David 12th 8. Business communication and report writing by R C Sharma & Krishna Mohan 3rd edition 9. Essential of Business communication by Rajendra Pal & J. S Korlahalli 10.Carrol A S (Ed) Managing corporate social responsibility 1977 11.Social Responsibility of Business by Chairman Mukherjee

12.Towards Social Responsibility by Woodman J M & Kverdal 13.http://www.suite101.com/content/budgeting-for-corporate-socialresponsibility-a220513#ixzz0yUddk3x8 14. . http://www.newsfromafrica.org/newsfromafrica/articles/art_10243.html 15. http://www.karmayog.org/csrothercompanies/csrothercompanies_7021.htm 16. . http://www.newsfromafrica.org/newsfromafrica/articles/art_10243.html 17. http://www.karmayog.org/csrothercompanies/csrothercompanies_7021.htm 18. . http://www.deccanherald.com/deccanherald/july202004/spt9.asp 19. http://www.karmayog.org/CSR/ 20. http://www.newsfromafrica.org/newsfromafrica/articles/art_10243.html 21. http://www.scribd.com/doc/3503656/Ekram-Kabirs-articles-on-Corporate-Social-

Responsibility-in-Bangladesh
22. http://www.dailytimes.com.pk/default.asp?page=2009\02\17\story_17-2-2009_pg5_11 23. http://www.globalissues.org/article/723/corporate-social-responsibility 24. http://hbswk.hbs.edu/topics/socialresponsibility.html 25.http://www.suite101.com/reference/csr_performance 26. http://www.suite101.com/content/history-of-corporate-social-responsibilitya215966 27.History of Corporate Social Responsibility: Trace the Roots Between Corporate Citizenship and Economics http://www.suite101.com/content/history-of-corporate-social-responsibilitya215966#ixzz0yUYsHCVb 28.http://www.suite101.com/content/how-to-understand-corporate-socialresponsibility-a272656#ixzz0yUcAlfWX