Economic Recovery through Corporate Social Responsibility during COVID-19: Lessons from Islamic Banks in Bangladesh | Chapter 6 | New Horizons of Science, Technology and Culture Vol. 8

 

Background: The COVID-19 pandemic has brought not only health but also extensive economic challenges. As a result, the rapid economic growth of Bangladesh has been disrupted. Currently, eight full-fledged Islamic banks (IBs) are functioning in Bangladesh, adhering to the underlying principles of Shariah; among them, seven are actively engaged in corporate social responsibility (CSR) activities to help the underprivileged segments of its citizens.

 

Purpose: The purpose of this study is to examine the economic impact of COVID-19 and analyse how the CSR initiatives of IBs can contribute to reducing the adverse economic impact in the context of Bangladesh.

 

Methodology: This study, through employing a content analysis method, examined the information available from these IBs as well as other government sources and published materials to address the COVID-19 economic impacts, especially the role of these IBs.

 

Findings: This study found that Bangladesh has been facing several major economic challenges, including the declining revenue from the Readymade Garments industry, decreasing inflow of foreign remittance, struggling small and medium-sized enterprises (SMEs) and start-ups, already crippling financial institutions, instability in the capital market, continuous trade deficit and a sharp increase in unemployment. Along the line with national and international funds, IBs’ CSR funds can also help address the economic downturn in Bangladesh caused by the COVID-19 pandemic. The study further identified that if IBs develop a consortium among themselves, the CSR funds could be better utilised for the socio-economic development of Bangladesh. It also demonstrated that IBs could spend USD 83.30 million annually, which means USD 417 in five years period.

 

Conclusion: This study is unique in the sense that it seeks to address the economic challenges of COVID-19 in the context of Bangladesh with support from the CSR initiatives of IBs. This study has created a new insight for IBs into developing an integrated CSR strategy, which is expected to bring significant contributions to the livelihood of the susceptible citizens of this country. The study recommended that all IBs work together to develop a joint CSR strategy for the socio-economic development of Bangladesh. Further research can be conducted in future, considering the total CSR funds by all conventional and Islamic banks.

 

 

Author(s) Details

Shafiqur Rahman
International Open University, The Gambia.

 

Shamsul Sarkar
Healthcare and Community Service Professional, Sydney, Australia.

 

Gazi Farid Hossain
King’s Own Institute, Australia.

 

Nasrin Huda
University Malaysia Perlis, Malaysia.

 

Abu Kholdun Al-Mahmood
Ibn Sina Medical College, Dhaka, Bangladesh.

 

Please see the book here :- https://doi.org/10.9734/bpi/nhstc/v8/6989