Corporate Sustainability in Bangladeshi Banks: Proactive or Reactive Ethical Behavior?
Abstract
1. Introduction
2. Background
3. Theory
4. Materials and Methods
5. Results
Test Statistics
6. Discussion
7. Conclusions
Author Contributions
Funding
Conflicts of Interest
References
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Bank Name | Type of Bank |
---|---|
AB Bank Limited | Private Commercial Banks (PCB) |
Agrani Bank Limited | State-Owned Commercial Banks (SOCB) |
Al-Arafah Islami Bank Limited | Islamic Banks (IB) |
Bangladesh Commerce Bank Limited | Private Commercial Banks (PCB) |
Bangladesh Development Bank Limited | Specialized Banks (SDB) |
Bangladesh Krishi Bank | Specialized Banks (SDB) |
Bank Al-Falah Limited | Private Commercial Banks (PCB) |
Bank Asia Limited | Private Commercial Banks (PCB) |
BASIC Bank Limited | Specialized Banks (SDB) |
BRAC Bank Limited | Private Commercial Banks (PCB) |
Citibank N.A | Foreign Commercial Banks (FCB) |
Commercial Bank of Ceylon Limited | Foreign Commercial Banks (FCB) |
Dhaka Bank Limited | Private Commercial Banks (PCB) |
Dutch-Bangla Bank Limited | Private Commercial Banks (PCB) |
Eastern Bank Limited | Private Commercial Banks (PCB) |
EXIM Bank Limited | Islamic Banks (IB) |
First Security Islami Bank Limited | Islamic Banks (IB) |
Habib Bank Ltd. | Foreign Commercial Banks (FCB) |
ICB Islamic Bank Ltd. | Islamic Bank (IB) |
IFIC Bank Limited | Private Commercial Banks (PCB) |
Islami Bank Bangladesh Ltd | Islamic Banks (IB) |
Jamuna Bank Ltd | Private Commercial Banks (PCB) |
Janata Bank Limited | State-Owned Commercial Banks (SOCB) |
Meghna Bank Limited | Private Commercial Banks (PCB) |
Mercantile Bank Limited | Private Commercial Banks (PCB) |
Midland Bank Limited | Private Commercial Banks (PCB) |
Modhumoti Bank Ltd. | Private Commercial Banks (PCB) |
Mutual Trust Bank Limited | Private Commercial Banks (PCB) |
National Bank Limited | Private Commercial Banks (PCB) |
National Bank of Pakistan | Foreign Commercial Banks (FCB) |
National Credit & Commerce Bank Ltd | Private Commercial Banks (PCB) |
NRB Bank Limited | Private Commercial Banks (PCB) |
NRB Commercial Bank Limited | Private Commercial Banks (PCB) |
NRB Global Bank Limited | Private Commercial Banks (PCB) |
One Bank Limited | Private Commercial Banks (PCB) |
Premier Bank Limited | Private Commercial Banks (PCB) |
Prime Bank Ltd | Private Commercial Banks (PCB) |
Pubali Bank Limited | State-Owned Commercial Banks (SOCB) |
Rajshahi Krishi Unnayan Bank | Specialized Banks (SB) |
Rupali Bank Limited | State-Owned Commercial Banks (SOCB) |
Shahjalal Islami Bank Limited | Islamic Banks (IB)) |
Social Islami Bank Ltd. | Islamic Banks (IB) |
Sonali Bank Limited | State-Owned Commercial Banks (SOCB) |
South Bangla Agriculture & Com. Bank Limited | Private Commercial Banks (PCB) |
Southeast Bank Limited | Private Commercial Banks (PCB) |
Standard Bank Limited | Private Commercial Banks (PCB) |
Standard Chartered Bank | Foreign Commercial Banks (FCB) |
State Bank of India | Foreign Commercial Banks (FCB) |
The City Bank Ltd. | Private Commercial Banks (PCB) |
The Farmers Bank Ltd | Private Commercial Banks (PCB) |
The Hong Kong and Shanghai Banking Corp. Ltd. | Foreign Commercial Banks (FCB) |
Trust Bank Limited | Private Commercial Banks (PCB) |
Union Bank Limited | Private Commercial Banks (PCB) |
United Commercial Bank Limited | Private Commercial Banks (PCB) |
Uttara Bank Limited | Private Commercial Banks (PCB) |
Woori Bank | Foreign Commercial Banks (FCB) |
Bank Type | Total Assets | Net Profits | ROA | ROE | NPL Ratio | Social | Env. | Green | Sustainability | |
---|---|---|---|---|---|---|---|---|---|---|
Conventional commercial | Average | 135,871.40 | 1413.37 | 0.98% | 9.70% | 5.81% | 0.43 | 0.58 | 0.29 | 0.43 |
Std. Dev. | 92,390.02 | 1211.72 | 0.66% | 5.45% | 15.15% | 0.21 | 0.29 | 0.18 | 0.21 | |
Foreign commercial | Average | 79,485.69 | 1726.81 | 1.37% | 8.24% | 5.26% | 0.30 | 0.66 | 0.12 | 0.36 |
Std. Dev. | 77,342.22 | 2964.60 | 6.62% | 10.13% | 4.44% | 0.12 | 0.19 | 0.12 | 0.12 | |
Islamic bank | Average | 213,850.90 | 1797.99 | 0.55% | 7.77% | 11.65% | 0.42 | 0.61 | 0.22 | 0.42 |
Std. Dev. | 208,579.00 | 1587.95 | 1.76% | 7.80% | 23.23% | 0.17 | 0.25 | 0.11 | 0.17 | |
Specialized bank | Average | 135,491.60 | −4580.30 | −2.40% | −6.83% | 22.90% | 0.37 | 0.43 | 0.08 | 0.29 |
Std. Dev. | 82,663.93 | 9151.55 | 4.19% | 8.61% | 6.70% | 0.03 | 0.26 | 0.12 | 0.12 | |
State owned commercial | Average | 307,341.60 | −1172.75 | 0.20% | −5.29% | 24.41% | 0.50 | 0.70 | 0.31 | 0.50 |
Std. Dev. | 376,413.20 | 7457.50 | 1.70% | 49.81% | 11.34% | 0.14 | 0.19 | 0.14 | 0.14 | |
Total | Average | 155,300.70 | 1033.14 | 0.79% | 6.97% | 9.15% | 0.41 | 0.61 | 0.24 | 0.42 |
Std. Dev. | 175,677.30 | 3614.27 | 3.12% | 18.17% | 16.06% | 0.19 | 0.26 | 0.17 | 0.19 |
Year | 2012 | 2013 | 2015 | 2016 |
---|---|---|---|---|
Social Sustainability | ||||
Social Policies | 78.9% | 80.7% | 93.0% | 93.0% |
Social Management System | 38.6% | 40.4% | 49.1% | 49.1% |
Internal Social Management | 82.5% | 89.5% | 98.2% | 98.2% |
Social Credit Risk Assessment | 61.4% | 70.2% | 86.0% | 86.0% |
Social Loans | 54.4% | 57.9% | 77.2% | 77.2% |
Social Mortgages | 0.0% | 0.0% | 0.0% | 0.0% |
Social Funds | 7.0% | 10.5% | 22.8% | 22.8% |
Social Asset Management | 5.3% | 8.8% | 19.3% | 19.3% |
Social Bonds | 0.0% | 0.0% | 0.0% | 0.0% |
Social Microfinance Startup | 42.1% | 43.9% | 56.1% | 56.1% |
Social Project Finance Assessment | 0.0% | 1.8% | 7.0% | 7.0% |
Social Savings Products | 0.0% | 0.0% | 0.0% | 0.0% |
Social Financial Inclusion | 50.9% | 54.4% | 66.7% | 66.7% |
Stakeholder Engagement | 75.4% | 77.2% | 91.2% | 91.2% |
Social Community Building | 64.9% | 68.4% | 78.9% | 78.9% |
Social Investment Banking | 7.0% | 8.8% | 15.8% | 15.8% |
Other Social Products and Services | 1.8% | 1.8% | 10.5% | 10.5% |
Average Social Sustainability | 33.5% | 36.1% | 45.4% | 45.4% |
Environmental Sustainability | ||||
Environmental Policy | 61.4% | 66.7% | 86.0% | 86.0% |
Environmental Management System | 0.0% | 0.0% | 0.0% | 0.0% |
Internal Environmental Management | 66.7% | 73.7% | 89.5% | 89.5% |
Environmental Credit Risk Assessment | 64.9% | 73.7% | 87.7% | 87.7% |
Average Environmental Sustainability | 48.2% | 53.5% | 65.8% | 65.8% |
Green Products and Services | ||||
Green Industry Loans | 17.5% | 19.3% | 33.3% | 33.3% |
Green Mortgages | 0.0% | 0.0% | 0.0% | 0.0% |
Green Funds | 3.5% | 5.3% | 14.0% | 15.8% |
Green Indices | 0.0% | 0.0% | 0.0% | 0.0% |
Green Asset Management | 0.0% | 0.0% | 0.0% | 0.0% |
Green Bonds | 0.0% | 0.0% | 0.0% | 0.0% |
Green Microfinance | 3.5% | 3.5% | 15.8% | 17.5% |
Green Project Finance Assessment | 42.1% | 45.6% | 68.4% | 68.4% |
Green Savings Products | 0.0% | 0.0% | 0.0% | 0.0% |
Green Investment Banking | 0.0% | 1.8% | 14.0% | 15.8% |
Green Banking Reporting | 17.5% | 21.1% | 36.8% | 36.8% |
Green Branch Initiative | 15.8% | 15.8% | 22.8% | 22.8% |
Green Banking Department | 59.6% | 63.2% | 82.5% | 82.5% |
Green Office | 61.4% | 66.7% | 84.2% | 84.2% |
Green Central Bank Products | 50.9% | 52.6% | 71.9% | 71.9% |
Other Green Products and Services | 0.0% | 0.0% | 5.3% | 5.3% |
Average Green Product and Services | 17.0% | 18.4% | 28.1% | 28.4% |
Year | Social Sustainability | Environmental Sustainability | Green Products and Services | Sustainability Score | |
---|---|---|---|---|---|
2012 | Mean | 0.34 | 0.49 | 0.17 | 0.34 |
SD | 0.20 | 0.33 | 0.15 | 0.21 | |
Skewness | −0.39 | −0.68 | 0.06 | −0.54 | |
Kurtosis | 2.18 | 1.62 | 1.49 | 1.80 | |
2013 | Mean | 0.37 | 0.54 | 0.19 | 0.37 |
SD | 0.20 | 0.30 | 0.15 | 0.19 | |
Skewness | −0.32 | −1.03 | 0.04 | −0.72 | |
Kurtosis | 2.45 | 2.35 | 1.58 | 2.34 | |
2014 | Mean | 0.43 | 0.66 | 0.26 | 0.45 |
SD | 0.16 | 0.21 | 0.16 | 0.15 | |
Skewness | −0.31 | −2.19 | 0.10 | −1.17 | |
Kurtosis | 3.43 | 6.71 | 2.67 | 4.63 | |
2015 | Mean | 0.46 | 0.67 | 0.29 | 0.47 |
SD | 0.18 | 0.20 | 0.17 | 0.16 | |
Skewness | −0.01 | −2.51 | 0.09 | −1.01 | |
Kurtosis | 3.18 | 8.22 | 2.37 | 4.34 | |
2016 | Mean | 0.46 | 0.67 | 0.29 | 0.47 |
SD | 0.18 | 0.20 | 0.18 | 0.16 | |
Skewness | −0.01 | −2.51 | 0.18 | −0.96 | |
Kurtosis | 3.18 | 8.22 | 2.40 | 4.28 | |
Total | Mean | 0.41 | 0.61 | 0.24 | 0.42 |
SD | 0.19 | 0.26 | 0.17 | 0.19 | |
Skewness | −0.28 | −1.58 | 0.18 | −0.91 | |
Kurtosis | 3.05 | 3.88 | 2.39 | 3.19 |
Year | Total Assets | Net Profits | ROA | ROE | |
---|---|---|---|---|---|
2012 | Mean | 11.39 | 6.62 | −4.70 | −2.68 |
SD | 1.16 | 1.57 | 0.97 | 1.12 | |
Skewness | −0.99 | −1.27 | −1.48 | −2.01 | |
Kurtosis | 3.81 | 4.51 | 6.11 | 7.46 | |
2013 | Mean | 11.06 | 6.40 | −4.75 | −2.89 |
SD | 1.51 | 1.94 | 0.82 | 1.43 | |
Skewness | −0.81 | −1.01 | −1.23 | −1.55 | |
Kurtosis | 3.09 | 3.12 | 4.52 | 4.88 | |
2014 | Mean | 11.30 | 6.61 | −4.70 | −2.87 |
SD | 1.34 | 1.80 | 0.91 | 1.48 | |
Skewness | −0.71 | −1.29 | −1.19 | −2.20 | |
Kurtosis | 2.99 | 4.43 | 5.24 | 8.61 | |
2015 | Mean | 11.47 | 6.66 | −4.69 | −2.66 |
SD | 1.26 | 1.70 | 1.33 | 1.17 | |
Skewness | −0.67 | −1.51 | −1.35 | −2.36 | |
Kurtosis | 2.77 | 5.33 | 5.87 | 8.94 | |
2016 | Mean | 11.61 | 7.08 | −4.59 | −2.43 |
SD | 1.23 | 1.16 | 0.80 | 0.72 | |
Skewness | −0.66 | −1.38 | −0.73 | −1.61 | |
Kurtosis | 2.78 | 5.37 | 3.40 | 5.52 | |
Total | Mean | 11.37 | 6.68 | −4.69 | −2.71 |
SD | 1.31 | 1.66 | 0.98 | 1.23 | |
Skewness | −0.81 | −1.38 | −1.36 | −2.21 | |
Kurtosis | 3.29 | 4.73 | 6.62 | 8.76 |
Dependent Variable (1-Year Time Lag) | Independent Variable | Coefficient | R2 | Sig. |
---|---|---|---|---|
Sustainability Score | Total Assets | 0.063 | 0.13 | 0.018 |
Total Assets | Sustainability Score | 1.56 | 0.24 | <0.00001 |
Sustainability Score | Net Profit | 0.007 | 0.08 | 0.530 |
Net Profit | Sustainability Score | 3.25 | 0.19 | 0.0003 |
Sustainability Score | ROA | 0.012 | 0.0009 | 0.443 |
ROA | Sustainability Score | 1.78 | 0.0047 | 0.0080 |
Sustainability Score | ROE | −0.004 | 0.099 | 0.712 |
ROE | Sustainability Score | 2.13 | 0.20 | 0.0130 |
Dependent Variable (Lagged) | Independent Variables | Coefficient | Significance of Coefficient | R2 |
---|---|---|---|---|
Total assets | Sustainability | 1.65 | <0.0001 | 0.24 ** |
Type of bank | 0.05 | 0.721 | ||
Net profit | Sustainability | 3.42 | 0.001 | 0.21 ** |
Type of bank | −0.21 | 0.250 | ||
ROA | Sustainability | 1.37 | 0.035 | 0.03 |
Type of bank | −0.16 | 0.195 | ||
ROE | Sustainability | 2.36 | 0.002 | 0.22 ** |
Type of bank | −0.22 | 0.093 | ||
NPL ratio | Sustainability | 0.31 | 0.496 | 0.13 ** |
Type of bank | 0.41 | <0.001 | ||
Sustainability | Total assets | 0.05 | <0.0001 | 0.14 ** |
Type of bank | −0.01 | 0.636 | ||
Sustainability | Net profit | 0.01 | 0.211 | 0.07 |
Type of bank | −0.01 | 0.773 | ||
Sustainability | ROA | 0.01 | 0.386 | 0.01 |
Type of bank | 0.01 | 0.966 | ||
Sustainability | ROE | 0.01 | 0.372 | 0.10 |
Type of bank | −0.01 | 0.969 | ||
Sustainability | NPL ratio | 0.03 | 0.073 | 0.04 |
Type of bank | −0.02 | 0.293 |
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Weber, O.; Chowdury, R.K. Corporate Sustainability in Bangladeshi Banks: Proactive or Reactive Ethical Behavior? Sustainability 2020, 12, 7999. https://doi.org/10.3390/su12197999
Weber O, Chowdury RK. Corporate Sustainability in Bangladeshi Banks: Proactive or Reactive Ethical Behavior? Sustainability. 2020; 12(19):7999. https://doi.org/10.3390/su12197999
Chicago/Turabian StyleWeber, Olaf, and Rezaul Karim Chowdury. 2020. "Corporate Sustainability in Bangladeshi Banks: Proactive or Reactive Ethical Behavior?" Sustainability 12, no. 19: 7999. https://doi.org/10.3390/su12197999
APA StyleWeber, O., & Chowdury, R. K. (2020). Corporate Sustainability in Bangladeshi Banks: Proactive or Reactive Ethical Behavior? Sustainability, 12(19), 7999. https://doi.org/10.3390/su12197999