Banks which have not involved key environmental stakeholders or which have not adopted a learning-organization approach to business (e.g. risk taking and outward looking), will find that adopting a green mindset is difficult. The new generation Banks and financial institutions in Bangladesh are particularly embracing environment protection with every passing day, in some cases with a missionary zeal to protect the mother earth. This is done both as a part of their corporate social responsibility and as a drive towards socially and ethically responsible banking. They are gradually coming to realize that there is a need for a shift from ‘Profit, profit and profit’ motive to ‘planet, people and profit’ orientation for sustainable development in the long run. In fact, the concept of socially responsible banking has grown considerably with the dawn of twenty first century with the growth in green movement and emergence of a new generation of environmental activists. Further, those industries which have already become green and those, which are making serious attempts to grow green, should be accorded priority to lending by the banks. This method of finance can be called as “Green Banking”, an effort by the banks to make the industries grow green and in the process restore the natural environment. This concept of “Green Banking” will be mutually beneficial to the banks, industries and the economy. To maximize this opportunity, banks must shift to an organizational-learning approach, such that the banks adopt an outward-looking and risk taking orientation.
Using Bangladeshi samples, this article tries to address the current position of environmental responsible banking by commercial banks in Bangladesh and examines which stakeholders should be involved in the developing of green banking products in Bangladesh, and what strategies can be used to involve these stakeholders and how banks can learn from these interactions. The results will hopefully provide some insights into strategies and approaches that can be used by others to develop less environmentally harmful green banking products.
Inhaltsverzeichnis (Table of Contents)
- Chapter 1: Introduction
- Chapter 2: A Brief Review of Literature
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This article investigates the current state of environmentally responsible banking in Bangladesh's commercial banks. It examines which stakeholders should be involved in developing green banking products, what strategies can facilitate their involvement, and how banks can learn from these interactions. The aim is to provide insights into effective strategies for developing less environmentally harmful green banking products.
- The role of commercial banks in promoting environmentally sustainable practices in Bangladesh.
- Identification of key stakeholders crucial for the development of green banking products.
- Strategies for engaging these stakeholders in the product development process.
- The importance of organizational learning and risk-taking in adopting a green banking approach.
- Examination of successful examples of green banking initiatives in Bangladesh.
Zusammenfassung der Kapitel (Chapter Summaries)
Chapter 1: Introduction: This chapter introduces the growing importance of green banking in response to increasing environmental concerns. It highlights the pressure on financial institutions to adopt green initiatives, driven by both customer demand and stricter environmental policies. The chapter emphasizes the potential benefits of green banking, including minimizing environmental risks, enhancing competitive advantage, and contributing to sustainable economic development. It also discusses the challenges faced by banks in adopting a green mindset, particularly the need for organizational change and a shift from a purely profit-driven approach to a “planet, people, and profit” orientation. The chapter uses examples from developed and developing economies, noting that while developed countries face challenges due to post-recession debt, the opportunity for developing countries to adopt green practices from the start is significant. Finally, the introduction lays the groundwork for the study's focus on stakeholder involvement in the development of new green banking products in Bangladesh, using the example of DBBL's Green Banking Cell as a case study of proactive environmental engagement.
Chapter 2: A Brief Review of Literature: This chapter reviews existing research on the relationship between environmental performance and financial performance. It explores studies demonstrating a positive correlation between the two, emphasizing the importance of banks considering environmental factors in investment decisions. The chapter examines how effective environmental management systems can lead to cost savings and improved financial outcomes. Additionally, it discusses the potential hindering effects banks can have on sustainable development due to preferences for short-term returns and the generally lower short-term returns of environmentally conscious investments. The chapter also summarizes key findings from previous research on environmentally responsible banking in Bangladesh and other countries, such as the work of Habib Pandit Mizan et al. (2010) and Shah Habib (2011), as well as research on stakeholder involvement in green product development by Polonsky, Rosenberger, and Ottman (1998) and the overview of green banking practices in Bangladesh by Islam and Das (2013). It sets the stage for the following chapters by establishing a theoretical foundation for the study.
Schlüsselwörter (Keywords)
Green banking, sustainable development, stakeholder involvement, environmentally responsible banking, Bangladesh, corporate social responsibility, organizational learning, green banking products, environmental risk, financial performance, new green banking product development (NGBPD).
Frequently Asked Questions: A Comprehensive Language Preview on Environmentally Responsible Banking in Bangladesh
What is the main topic of this language preview?
This preview provides a comprehensive overview of a study investigating environmentally responsible banking in Bangladesh's commercial banks. It focuses on stakeholder involvement in developing green banking products and strategies for successful implementation.
What are the key themes explored in this preview?
Key themes include the role of commercial banks in promoting sustainable practices in Bangladesh, identifying crucial stakeholders for green banking product development, strategies for engaging stakeholders, the importance of organizational learning and risk-taking, and successful examples of green banking initiatives in Bangladesh.
What chapters are included in the full text?
The full text includes at least two chapters: Chapter 1: Introduction and Chapter 2: A Brief Review of Literature.
What does Chapter 1 cover?
Chapter 1 introduces the growing importance of green banking, highlighting pressures on financial institutions to adopt green initiatives. It emphasizes the potential benefits (minimizing environmental risks, enhancing competitive advantage, contributing to sustainable economic development) and challenges (organizational change, shifting from a profit-driven approach). It uses examples from developed and developing economies and introduces the study's focus on stakeholder involvement in Bangladesh, using DBBL's Green Banking Cell as a case study.
What does Chapter 2 cover?
Chapter 2 reviews existing research on the relationship between environmental and financial performance, exploring studies demonstrating a positive correlation. It examines how effective environmental management systems lead to cost savings and improved financial outcomes and discusses potential hindering effects of short-term return preferences. It summarizes key findings from previous research on environmentally responsible banking in Bangladesh and other countries, laying a theoretical foundation for the study.
What are the objectives of the study?
The study aims to provide insights into effective strategies for developing less environmentally harmful green banking products by examining stakeholder involvement, strategies for engagement, and learning from these interactions within the context of Bangladesh's commercial banks.
What keywords are associated with this study?
Keywords include green banking, sustainable development, stakeholder involvement, environmentally responsible banking, Bangladesh, corporate social responsibility, organizational learning, green banking products, environmental risk, financial performance, and new green banking product development (NGBPD).
What is the intended audience for this language preview?
This language preview is intended for academic use, allowing for analysis of themes in a structured and professional manner.
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The full text of the study will provide further details. (Note: The provided preview does not specify where the complete text can be accessed.)
- Quote paper
- Prakash Saha (Author), 2013, Developing Green Banking Products In Bangladesh: Involvement of Stakeholders, Munich, GRIN Verlag, https://www.grin.com/document/212687
