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Journal of Business Ethics

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01.06.2014

Convergence of Corporate Social Responsibility and Corporate Governance in Weak Economies: The case of Bangladesh

verfasst von: Mia Mahmudur Rahim, Shawkat Alam

Erschienen in: Journal of Business Ethics | Ausgabe 4/2014

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Abstract

The convergence of corporate social responsibility (CSR) and corporate governance (CG) has changed the corporate accountability mechanism. This has developed a socially responsible ‘corporate self-regulation’, a synthesis of governance and responsibility in the companies of strong economies. However, unlike in the strong economies, this convergence has not been visible in the companies of weak economies, where the civil society groups are unorganised, regulatory agencies are either ineffective or corrupt and the media and non-governmental organisations do not mirror the corporate conscience. Using the case of Bangladesh, this article investigates the convergence between CSR and CG in the self-regulation of companies in a less vigilant environment.

Vorheriger Artikel The Morality of Unequal Autonomy: Reviving Kant’s Concept of Status for Stakeholders

Nächster Artikel A Conceptual Framework for Understanding the Effects of Corporate Social Marketing on Consumer Behavior

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It is the largest public pension fund in USA with assets totalling more than US$250 billion. For details, see Welcome to CalPERS On-Line. Global Principles of Accountable Corporate Governance, available at www.calpers-governance.org/docs-sof/principles/2010-5-2-global-principles-of-accountable-corp-gov.pdf.

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According to Section 143(1) of the Companies Act, 1994, an ‘untrue statement’ includes statements misleading in the form and context in which it is included and any omission from a prospectus which is calculated to mislead.

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The capital market of this country is still in primitive stage; in 2006, this market accumulated only 7.5 % of this country’s GDP. Hence, the banking sector supplies most of the business capital; excessive liquidity and competition drive this sector to pass credit leniently. For details, visit Bangladesh Bank at http://www.bangladesh-bank.org/ and Securities and Exchange Commission of Bangladesh at http://www.secbd.org/ 5 February 2011.

Bangladesh has two stock exchanges, Dhaka and Chittagong Stock Exchanges. These Stock Exchanges, though established in 1954 and 1995, have not flourished in comparison with its neighbouring exchanges. In 2006, whilst the average listed companies in four Indian stock exchanges were 1,175 and 237 in Sri Lanka, the average for the same for these two exchanges as of 5 February 2011 is 347. For details, see http://www.secbd.org/ and http://www.secbd.org/ 5 February 2011.

This scenario is prevalent in Asian CG structure. For instance, 68 %, 72 %, 67 %, 62 %, 56 % and 48 % of listed companies in Hong Kong, Indonesia, Malaysia, Thailand, Singapore and South Korea, respectively, are controlled by family. For details, Welford (2007, pp. 43, 48), Farooque et al. (2007, p. 1455).

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This code is the sole comprehensive set of guidelines for CG and resembles the Cadbury Code or the Combined Code in the UK. The Cadbury Code has been adopted by the London Exchange Commission.

For this case study, we have made a qualitative analysis of the evidence. We have also analysed some facts and findings taken from authentic media sources, mainly national newspapers for this study.

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Titel: Convergence of Corporate Social Responsibility and Corporate Governance in Weak Economies: The case of Bangladesh
verfasst von: Mia Mahmudur Rahim
Shawkat Alam
Publikationsdatum: 01.06.2014
Verlag: Springer Netherlands
Erschienen in: Journal of Business Ethics / Ausgabe 4/2014
Print ISSN: 0167-4544
Elektronische ISSN: 1573-0697
DOI: https://doi.org/10.1007/s10551-013-1699-x

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