Abstract
Creating shared value is the opportunity driven approach of business entities to benefit the less addressed segment of the society through their core products and services. For bank financial institutions, the opportunity driven approach signifies that banking corporations ought to identify bankable needs that are less addressed or unaddressed and invest on purpose to benefit both society and business. The study strives to develop a conceptual model of how Private Commercial Banks (PCBs) in Bangladesh are creating shared value (a popular concept developed by ([Porter ME, Kramer MR], [The big idea: creating shared value; how to reinvent capitalism—and unleash a wave of innovation and growth], [2011])) through reviewing the products and services of PCBs in light of available literature in the field of strategic corporate social responsibility and creating shared value. The model has identified core products and services that are creating shared value for both the bank and the society concurrently. It has also identified factors that are limiting shared value creation capacity of PCBs. Thus, the model will assist the money market policy planners especially bankers to identify the products, services, markets, and value chain that could augment capacity of creating shared value and remove the road-blocks for creating upscale shared value in the developing country context.
Highlights
Balanced economic growth and prosperity of a developing country like Bangladesh basically depends on reducing the gap between rich and poor as well as between rural and urban people through satisfying their unmet or less focused social needs
Small and Medium Scale Enterprise (SME) investment had increased by 18.5% in Jamuna Bank Limited (JBL) followed by 8.24% in Islami Bank Bangladesh Limited (IBBL), 6.99% in Southeast Bank Limited (SBL), 4.95% in Dhaka Bank Limited (DBL), 2.21% in Eastern Bank Limited (EBL) and 1.21% in National Bank Limited (NBL)
In order to get competitive advantage from creating shared value, Private Commercial Bank (PCB) have to be innovative in product development to address the unmet needs and challenges of broad range of customers as well as to be efficient in banking operations through supply chain management and local cluster development
Summary
Balanced economic growth and prosperity of a developing country like Bangladesh basically depends on reducing the gap between rich and poor as well as between rural and urban people through satisfying their unmet or less focused social needs. PCBs in a developing country can satisfy unmet banking needs of large number of unbanked people through investing in innovating products such as SME (including firms of women entrepreneurs), agriculture (including rural microfinance), mobile financial service and environment friendly banking. The core banking operations are creating social value in terms of (i) enhanced job creation in the banks and self employment opportunities in rural areas, (Bendell, 2004) access to banking for the unbanked, (Bissoon, 2018) service and comfort for customers, (Bowen, 1953) regional development, (Broomhill, 2007) regulatory compliance, (Burke & Logsdon, 1996) government income, (Campbell, 2007) employee and customer learning, and (Carroll, 1979) reduced environment footprint among other. – safe custody – value based banking – online transactions – safe e-commerce – good governance
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More From: Asian Journal of Sustainability and Social Responsibility
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