Banks’ CSR Funds Spark Police School Debate

A fresh controversy has emerged in Bangladesh over the use, transparency, and prioritisation of corporate social responsibility (CSR) funds, following a proposal to finance a police-run school through donations from commercial banks. The initiative has reignited longstanding concerns within the banking sector about “directed CSR” and the thin line between voluntary philanthropy and perceived institutional pressure.

At the centre of the debate is a recent request by the Bangladesh Association of Banks (BAB), which has approached 20 commercial banks seeking contributions of Tk 5 million each from their individual CSR budgets. The collective target is approximately Tk 100 million. According to BAB officials, the request was made in response to a formal proposal from the headquarters of the Dhaka Metropolitan Police (DMP).

The proposal outlines plans to construct an eight-storey school building within the Demra Police Lines area of the capital. The school is primarily intended to serve the children of police personnel, though the authorities have stated that children from neighbouring communities would also be eligible for admission. The estimated cost of the project—including construction, furniture, and educational materials—stands at around Tk 100 million. DMP officials have argued that the project has not been included in the government’s Annual Development Programme and that the police force lacks sufficient internal funds, making private-sector support essential.

On 1 February, BAB formally sent letters to selected banks, a fact confirmed by several senior banking executives. While the full list of recipient banks has not been made public, BAB sources indicate that financially stronger institutions were prioritised.

The proposed school forms part of a broader infrastructure expansion at Demra Police Lines, where a 20-storey residential building has already been constructed on 36.66 acres of land to house nearly 300 police families. Police officials contend that the school would complement this residential complex and contribute to wider social welfare by opening its doors beyond police households.

Nevertheless, unease within the banking sector is palpable. Several managing directors, speaking on condition of anonymity, have described such requests routed through industry bodies as implicitly coercive. They argue that the defining principle of CSR is voluntarism, which risks being undermined when “suggestions” come with institutional weight.

These concerns have been voiced publicly by Mashrur Arefin, Managing Director and CEO of City Bank and Chairman of the Association of Bankers, Bangladesh. He has warned that past experiences with so-called directed CSR have exposed bank executives to questioning by the Anti-Corruption Commission. In his view, CSR spending must remain transparent, voluntary, and fully aligned with regulatory guidelines.

Bangladesh Bank’s CSR policy prioritises education, healthcare, and income-generating initiatives for marginalised communities. Economists note that while investment in education is a legitimate CSR avenue, targeted spending in areas such as healthcare often delivers more immediate and widespread social benefits.

The ongoing debate has thus broadened into a national discussion on the ethical use of CSR funds and the need for clearer institutional safeguards.

As scrutiny intensifies, the proposal has become a litmus test for how CSR funds should be mobilised—balancing social need, institutional independence, and public accountability.