Welcome to the Presentation on Corporate Social Responsibility (CSR) of HSBC Bank Limited

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HSBC BANGLADESH OVERVIEW

Year of Establishment: Head Office:

Nature of the organization: subsidiary Key Business Areas: banking,

Personal Financial Services, Corporate and institutional Commercial Banking.

HSBC BANGLADESH OVERVIEW (contd.) Capital: Shareholders: Products: Asset: BDT 4380 million Deposit: BDT 3,985 million HSBC group shareholders Savings & deposit services, Loan products, Corporate and Institutional services, Trade services. 9 branches (Banani, Gulshan, Dhanmondi, Anchor tower, Uttara, Mothijheel, Chittagong, GEC, Sylhet) 22 709 Offers full online banking from branch to branch and also from Dhaka to Chittagong. Serves individual and corporate customers within Dhaka, Chittagong and Sylhet.

Number of Offices:

Number of ATM s: Number of employees: Technology:

Service Coverage & Customers:

HSBC BANGLADESH OVERVIEW (contd.)

Group Values : y Having a diverse and inclusive culture underpinned by a meritocratic approach to recruitment, selection and promotion y Putting the team's interests ahead of the individual's y Being a fair and objective employer

HSBC BANGLADESH OVERVIEW (contd.)

y Dependable and doing the right thing y Openly esteemed commitment to quality, competence, truth and fair dealing y Commitment to complying with the spirit and letter of all laws and regulations wherever the Group conducts its business y Having and displaying highest personal standards of integrity at all levels

HSBC BANGLADESH OVERVIEW (contd.)

Business Principles
y The Group's Business principles direct how our business strategy

y y y y y y

is expected to be implemented. They underpin the business conduct of all HSBC employees and the Group's Values and HSBC's reputation is based on adhering to these. The HSBC Group is committed to the following Business Principles: Outstanding customer services Effective and efficient operations Strong capital and liquidity Prudent lending policy Strict expense discipline

HSBC's History
y Establishment and early years : HSBC is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between Europe, India and China.  The inspiration behind the founding of the bank was Thomas Sutherland, a Scot who was then working for the Peninsular and Oriental Steam Navigation Company. He realised that there was considerable demand for local banking facilities in Hong Kong and on the China coast and he helped to establish the bank which opened in Hong Kong in March 1865 and in Shanghai a month later.  Soon after its formation the bank began opening branches to expand the services it could offer customers. Although that network reached as far as Europe and North America, the emphasis was on building up representation in China and the rest of the Asia-Pacific region. HSBC was a pioneer of modern banking practices in a number of countries - for instance, in 1888 it was the first bank to be established in Thailand, where it printed the country s first banknotes. y Challenges and change : The twentieth century saw challenges and change for HSBC. In the early years of the twentieth century, HSBC widened the scope of its activities in the East. It became increasingly involved in the issuing of loans to national governments, especially in China, to finance modernisation and internal infrastructure projects such as railway building. The First World War brought disruption and dislocation to many businesses but the 1920s saw a return to prosperity in the East as new industries were developed and trade in commodities such as rubber and tin soared. The bank's new head office in Hong Kong (1935) and the new buildings at major branches such as Bangkok (1921), Manila (1922) and Shanghai (1923) reflected this confidence.

Corporate Social Responsibility - What does it mean?

HSBC's operations in Bangladesh

CSR of HSBC Bank in Bangladesh

Education
y HSBC provided funds to facilitate studies and to ensure bright future

for the meritorious students of Rajarbag Police Line Higher Secondary School. y Provided funds to Green Disabled Foundation (GDF) for the operating expenditure of the school along with a recommendation that the school bring some new initiatives in future. y Provided funds to SEID Trust for the salary of one physical therapist for 2008 to the unprivileged children with intellectual and multiple disabilities of SEID Trust and provided funds to Disabled Welfare Society for the purchase of Braille writing instruments for the society.

S ci l W lf r
y Centre for Disables Concern arranged a talent hunt program for the

y y y y

children with special needs of greater Chittagong which included a grand rally, drawing competition, cultural program and other events. This was sponsored by HSBC and attended by over 200 students from all over Chittagong. Provided funds to Sneho Education and Health Development Foundation for its nutrition project in Savar serving 100 children. Donated computers to the students of Gulshan Literacy Programe and Disabled Welfare Society. HSBC provided free Hepatitis B vaccinations to the orphan children of Sarkari Shishu Poribar through Liver foundation of Bangladesh. HSBC staff organized lunch for 200 street children at a shelter of Aparajeyo Bangladesh, orphans of Sir Salimullah Muslim Orphanage, etc.

Disaster Relief
y HSBC undertook a 2-phased initiative to provide support to the people

affected by hurricane Aila. In the initial phase, HSBC provided immediate relief to the affected areas of Khulna, Shatkhira, Potuakhali, Borguna, and Bhola. The relief materials included rice, lentil, potato, orsaline, sari, lungi, children s clothes, high-energy biscuits and water. y Based on the observations and the subsequent report provided to the top team, HSBC Bangladesh is now working on the next course of action for the 2nd phase. y HSBC built 120 houses in Pirojpur and Barguna for the Sidr affected people. Following the handover of 110 houses in Pirojpur and 10 Houses in Barguna in the Second Phase, HSBC Distributed rickshaws, sewing machines, live stocks, tree plants, seeds, fishing nets and boats to 120 families who received the houses. y The bank held a Sidr charity concert in Chittagong to raise funds for the Sidr affected People.

Environment
y Environment Champions, an awareness building campaign, was y y y

organized to raise awareness about the environment among the students of Bangladesh. On World Environment Day, HSBC Bangladesh carried out a large scale tree plantation (more than 1000 trees) program at the Osmani Udayan, one of the largest parks in Dhaka City. HSBC launched Go Green campaign to celebrate World Environment Day. Under this campaign, customers would get special discount on the CNG conversion loan and a Certificate. The team from Bangladesh won the Award in the HSBC Young Entrepreneur Awards 2008-09 at Regional Grand Finale in Hong Kong. Their business case was about solving the imminent water crisis of Megacity Dhaka by harvesting rainwater, and providing clean, drinkable water for everyday use in domestic and commercial structures. HSBC supported the United Nations World Environment Day (WED) event by launching Be Part of the Solution campaign. HSBC employees went to a nearby park and cleaned up the park of debris & wastes and deposited the items to the nearby waste facility. In addition, staff also planted about 600 trees in the park to provide a greener look.

Art and Culture

y y

at Viquarunnessa Noon High School & College. Sponsored the program titled HSBC Kali O Kolom Young Poet and Writers Award with a cash prize of Tk.100,000 for the winning submissions of original literary works. A photo exhibition was held at Drik Gallery and displayed works of three famous photographers of Bangladesh. HSBC launched a Dhaka city map containing major landmarks and historical places of Dhaka city. A seminar was arranged in recognition to Dhaka s 400 years celebration where eminent historians of Bangladesh shared their views on the celebration. Arranged the Young Entrepreneurs Awards 2008 (YEA), a business plan writing competition.

Others
y The HSBC Prothom Alo Language Competition (6th Bhasha y y y y y y y y y y y

Protijogita 2010) The HSBC Young Entrepreneur Awards 2009-2010 Launching of HSBC- The Daily Star Climate Award-2010 Footprint Management Corporate Social Responsibility Award HSBC Kali O Kolom Young Poets and Writers Award 2009 International Women's Day Celebration Winter Clothing Drive HIV/AIDS/STD awareness training at HSBC Sylhet & HSBC Chittagong HSBC runner up in prestigious Financial Times Sustainable Banking Awards Outstanding Partnership Award 2009/10 Yahoo! Emotive Brand Awards 2009-10

Group Opinion
Positive Aspects :
y y y y y y

Helping in poverty alleviation Reducing societal havoc Increasing employment opportunities Enhancing social values and morals Creating global exposure The new strategy of HSBC Bangladesh emphasizes the current focus on education for underprivileged children and supporting the environment. These two focus areas have been allocated at least 75% of the budget while the rest are used to support the needy, disability issues of the society and local culture

Gr Negative Aspects:

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y The company is not investing a big amount in the CSR activities in

Bangladesh. They spend only 1% of their profit in CSR activities in Bangladesh. In year 2008 the bank spent Tk. 200,000 and Tk. 16,400,000 in year 2009 only for the CSR activities in Bangladesh whereas they have been investing millions of dollar for the CSR activities all over the world. As we know that, ours is a poor country, we need lot of fund, and supports from a rich multinational like HSBC. Instead of investing more in an under privileged country, they are investing more in the developed countries, y HSBC is a commercial bank. We all know that, the main target of all the commercial banks is to earn profit. The purpose of HSBC is not exceptional either. They focus more on profit making rather than making social welfare, which can be observed from their activities clearly. Their main purpose through the CSR activities in Bangladesh is to create positive image throughout the world, y As stated earlier, HSBC is a multinational company. Their main focus is to earn profit, no matter wherever they do their business and take the profit back to their origin. That s why they are more profit oriented than society oriented.

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RECOMMENDATIONS

Arrange training sessions y Educate people y Provide required information y Take special scheme

Thank You