Dr. Atiur Rahman
Governor, Bangladesh Bank :
‘Inclusivity’, ‘Sustainability’ and ‘Responsibility’ are no more just buzzwords today. So, environmental conservation and caring human livelihood is no else the sole responsibility of government agencies since more than a decade. Businesses that integrate sustainability into their functions can explore themselves longer-term resilient position- better risk management, opening up new markets, innovation of products and services. Consumer confidence and loyalty are getting strengthened. Corporate sustainability, therefore, involves both respects for universal principles in these areas, as well as proactive support of a sustainability agenda.
We need to move beyond rhetoric. Consensus at a policy level does not automatically translate into successful implementation on the ground. We need leaders from all sectors of society who are ready to champion responsible business conduct and fair competition. Companies must adapt to this rapidly changing environment implement new creative ideas related to sustainability.
Businesses must be proactive for poverty alleviation from the society, the community and the country. Because, poverty is not only the problem for the poor, but also for the whole society.
Complete poverty alleviation is only possible through inclusive and sustainable development. Access to financing for output initiatives of the disadvantaged poor is a key requisite for equitable development. Unblocking and widening scopes, access to adequate financing must be the priority for transition from traditional polluting output practices to ‘green’ options.
Bangladesh Bank has spearheaded sustainable banking and socially responsible financing in financial sector corporates, for them in turn to influence non financial real sector corporates into embracing sustainable business practices. Bangladesh Bank has been stimulating the sustainable and responsible banking practices of banks and NBFIs. Bangladesh Bank has persuaded sustainable banking in Green Banking, Environmental Risk Management, Corporate Social Responsibility and Financial Inclusion.
These three themes/factors need to be involved together in the very process of attaining sustainable inclusive growth.
Bangladesh Bank’s motivation initiatives include frequent consultative engagements with banks, financial institutions and other stakeholders; guidance circulars on modalities and options; cross country road shows; mass communication events showcasing progress in inclusive and green financing; financial literacy and consumer education programs, and so forth. The motivation campaigns have already succeeded in sensitizing and enthusing the entire financial sector into initiatives of reaching out with financial services to underserved population segments. Banks and financial institutions have begun sensing growing appeal of the socially responsible financing credential in their clientele bases.
As we have seen from recent tragic examples, especially the Rana Plaza Disaster, Tazreen garments burn issue where irresponsible business conduct has been put on the scanner and we have been able to turn a disaster into opportunity by enthusing entrepreneur to go green and socially compliant. Society’s expectations of responsible business conduct cannot be ignored by any sensible entrepreneur. Every day, citizens’ voices are getting louder and clearer. Every one of us must be ‘responsible’ in our activities for making our society, environment and businesses ‘sustainable’.
That will generate happy and enriched earth for future generation through our collaborative and coordinated effort. Bangladesh Bank believes in partnership and through this strategy promotes socially responsible financing. We will continue to move in this direction.
