Exporters in Bangladesh are feeling the pinch first as foreign buyers are increasingly raising questions about ethical practices.

Besides the readymade garment (RMG) sector that contributes over 75 percent to the country's total export earnings, leather and frozen foods are some of the major sectors that have to address the CSR issue immediately.

"There is no alternative to complying with the environmental, social and labour standards if export-oriented industries want to survive in the global market," Annisul Huq, former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said.

To be compliant is the need of the time and it is almost becoming impossible to get orders from the buyers without being compliant manufacturers, Huq said noting there is no way to avoid these things today because of the pressures from foreign buyers.

Bangladesh's garment exports to the European Union may face a bad time if compliance issues are not addressed within a certain period, leaders of Belgium-based International Textile, Garment and Leather Workers' Federation (ITGLWF) warned.

"You don't have customers if you don't have right products that are manufactured following local laws and international requirements," Neil Kearney, general secretary of ITGLWF, told journalists when he was in Dhaka few months back.

The ITGLWF leaders also met the ministers concerned to convey the message of EU buyers and importers, saying the government should consider the present situation and deadline as a wake-up call.

Considering the overall situation, the commerce ministry has formed 'Social Compliance Forum' for RMG sector. EU is the single largest export destination for Bangladeshi products.

"It is not enough to produce quality goods but it is imperative to create an honest brand image," observed Rasna Hasan, manager (Corporate Affairs) of Novartis (Bangladesh) Ltd.

“More and more corporations and business enterprises are realising that the country also needs dependable and trustworthy reputation in the international market,” Rasna explained.

Annisul Huq said corporate houses need to develop responsible business policies and practices and make them integral parts of their mission if they want to compete successfully both locally and globally.

As businesses in Bangladesh have to go through lengthy decision-making process, political agitation, high cost of fund, inefficient ports and fight against rampant corruption, it sometimes becomes very difficult for them to concentrate on other issues of the corporate world being practised globally, he maintained.

The Centre for Policy Dialogue study on 'Corporate Responsibility in Bangladesh: Where Do We Stand' corroborates the apprehension that today corruption and bribery are the fundamental requirements for doing business in the country.

CSR practice in the small companies is often neglected as they are facing fierce competition and struggling to survive in business. There are sectoral variations in corporate responsibility practices.

Although only 40 percent of the companies surveyed have a statement on fighting corruption and bribery, only about 29 percent follow the Transparency International or any other international guidelines to ensure fair practices, the CPD study added.

(Concluding part of the report on CSR will be published next Saturday.)