This paper also suggests the following main challenges for implementing CSR in Bangladesh-
• Crisis of conceptualization: There is no universal definition of CSR. Although the essence remains welfare of people and communities, CSR may be masked through vested interests. As it has different meaning, it creates the problems of conceptualization.
• Lack of public awareness regarding CSR: Far reaching education and awareness programmes are required to create a common understanding of CSR across sectors and geographies. Without awareness customers are unable to reward CSR involvement of the company. But consumers of developing countries like Bangladesh are to some extent unaware and unknowledgeable about the CSR practice of the financial and other companies.
• Lack of community participation in CSR activities: There is a lack of interest of the local community in participating and contributing to CSR activities of companies. This is largely attributable to the fact that there exists little or no knowledge about CSR within the local communities as no serious efforts have been made to spread awareness about CSR and instill confidence in the local communities about such initiatives. The situation is further aggravated by a lack of communication between the company and the community at the grassroots.
• Problems of selecting partners: It is also reported that there is non-availability of well-organized nongovernmental organizations in remote and rural areas that can assess and identify real needs of the community and work along with companies to ensure successful implementation of CSR activities. This also builds the case for investing in local communities by way of building their capacities to undertake development projects at local levels.
• Problems of building local capacities: Challenges arise from the need for capacity building of the local non-governmental organizations as there is serious dearth of trained and efficient organizations that can effectively contribute to the ongoing CSR activities initiated by companies. This seriously compromises scaling up of CSR initiatives and subsequently limits the scope of such activities.
• Lack of trust on CSR: CSR practice always suffers from the problems of distrust. Consumers often view the CSR activities of various companies as a means of emotionally charging to earn more and more profits. General public may also perceive CSR activities as temporary, not sustainable.
• Lack of Transparency: Lack of transparency is one of the key challenges brought forth by the survey. There is an expression by the companies that there exists lack of transparency on the part of the local implementing agencies as they do not make adequate efforts to disclose information on their programs, audit issues, impact assessment and utilization of funds. This reported lack of transparency negatively impacts the process of trust building between companies and local communities, which is a key to the success of any CSR initiative at the local level.
• Challenges of invisibility: Like the iceberg, most CSR activity is invisible. The role of media in highlighting good cases of successful CSR initiatives is welcomed as it spreads good stories and sensitizes the local population about various ongoing CSR initiatives of companies. This apparent influence of gaining visibility and branding exercise often leads many nongovernmental organizations to involve themselves in event-based programs; in the process, they often miss out on meaningful grassroots interventions. To gain visibility CSR program often deviates from the core principles.
• Political pitfalls: While CSR is growingly viewed as a strategic tool for achieving sustainable competitive advantage, but political belief of the government or changes in the political party can hinders the CSR programs initiated by specific firms. For example, in Bangladesh several donations of Islami Bank Bangladesh Ltd. to government funds are rejected due to varying political belief of the ruling party. CSR leaders should choose what they promote wisely and set clear boundaries to avoid becoming political footballs.
• Non-availability of clear CSR guidelines and agenda: In Bangladesh, till today, there is no clear cut sector wise or sector specific statutory guidelines or policy directives to give a definitive direction to CSR initiatives of companies. Formal business practices and policies are still evolving in Bangladesh. General public perceive the bigger the company, the bigger is its CSR program. Besides, corporate are often faced with the dilemma of prioritizing sectors for implementing CSR projects. They also face the challenges of standards and standard setting.
• CSR has ulterior motives: Mass people often believe that, if there is a benefit to society, which in many cases is doubtful, is this outweighed by losses to society in other areas of the company's operation. Different internal and external stakeholders may think that what the company giving to them through CSR, they are getting back much more than that.
• Lack of skills: Successful CSR activities require certain level of skills- from know-how to attitudinal behavior. Greater financial, human and other resources are needed to design, develop, implement, manage, monitor, report and verify the CSR programs to ensure the longer term return on investment (ROI). But these skills are not readily available.
