Progress on adoption of responsible business policies has been slower than the economic growth in South Asia. Acceptance of CSR principles has been unorganised and businesses tend to prefer giving donations rather than researching, planning, developing and implementing social and community development projects to build CSR programmes.
Experts from the UN’s Global Compact observe that Strategic CSR based on brand-associated corporate philanthropy has progressed at a faster pace than ethical CSR in South Asia. With the exception of a handful of leading multinationals and national companies, businesses continue to perceive CSR as a burden rather than a requirement to promote and expand their operations by giving something back to the society.
There is a clear need for creating awareness about doing responsible business and promoting ethical CSR rather than brand associated campaigns. As South Asian businesses expand they will have to look beyond short-term profits and identify ways and means of sustaining long-term growth.
Responsible business policies have been put in place at a faster rate in India than in Bangladesh, Nepal, and Pakistan. Foreign investments have continued to flow since the 1990s and the multinationals have taken the lead in promoting CSR. Leading Indian companies, some of them now becoming global players, have taken the lead in community development initiatives.
In Bangladesh, export-oriented companies have progressed further as they had to abide by the standards imposed by buyers from the developed world. The government has also been encouraging companies to pay attention to CSR, while the Central Bank of Bangladesh has directed all banks to adopt CSR policies.