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.
Table of Contents
Chapter- 1: Introduction
Chapter- 2: A Brief Review of Literature
Chapter- 3: Banks’Representation at the Flow of Adulteration to the Environment
Chapter- 4: Stakeholder’s Attitude/Attempt towards Green Banking Products
International council, Agreements, Guidelines, and Principles
Policy Makers Responding to the Changing Needs to Protect Environment
Approaches and Activities of IFIs and IGOs
Initiatives by Businesses are Incentives to the Green banking
NGOs Playing the Essential Roles
Responses from Consumers
Chapter- 5: Green Banking practices in Bangladesh:
The Role of Bangladesh Government
Bangladesh Bank’s Initiatives
An Investigation from BB
Online Banking:
Mobile Banking:
Banks’ in house Green activities:
Specific Findings:
Chapter- 6: Developing New Green Banking Products:
Chapter- 7: Bank as the Learning Organization:
Chapter- 8: Greater Involvement of Stakeholders in the Strategy and NGBPD Process.
Chapter- 9: Implications
Chapter- 10: Conclusions
Objectives & Core Topics
This work aims to evaluate the current status of environmentally responsible banking in Bangladesh, focusing on how commercial banks involve various stakeholders in the development of "green" banking products and the strategies used to foster these collaborative interactions.
- Analysis of green banking practices and stakeholder engagement in the Bangladeshi financial sector.
- Evaluation of the "Learning Organization" approach as a mechanism for sustainable product development.
- Investigation of the roles of government, NGOs, and central banks in shaping green banking strategies.
- Assessment of current bank procedures for managing environmental risks and promoting sustainable infrastructure.
Excerpt from the Book
Chapter- 6: Developing New Green Banking Products:
Product-development processes generally include a number of different steps, which are: (1) Opportunity; (2) Design; (3) Testing; (4) Introduction; (5) Life-cycle management (Urban and Hauser, 1993). Learning initiatives and stakeholder participation are involved in all five steps (see Table-1), although Urban and Hauser (1993) have not discuss about those elaborately. However, in the NGBPD process, it is assumed that environmental issues and performance objectives are equally important to include with other product development objectives and issues. For example, Dhaka Bank Ltd. adopts the green banking business model for switching over to electronic correspondence to make the process of reporting more effective and encourage the customer for using e-statements. As the bank is computerized with all branches, there is ample scope for doing paperless or less-paper banking (Normally banks use huge quantity of papers for office correspondence, recording public transactions and reporting, etc.). The NGBPD process means that banks consider new product related green issues and objectives to be as important as other issues, which may requires a change in the bank’s organizational culture. Banks need to become more outward-looking, as well as having systems in place that formally introduce bank-environmental stakeholder interaction. Table nine shows how green stakeholders and learning can be included in the NGBPD process (The scenario is assumed where Prime Bank Ltd. (PBL) is taking the initiatives of upgrading the system with technological developments through online-banking).
Summary of Chapters
Chapter- 1: Introduction: Provides an overview of the rise of environmental concerns in the 21st century and the subsequent necessity for the banking sector to adopt green initiatives.
Chapter- 2: A Brief Review of Literature: Reviews existing studies on the correlation between environmental and financial performance and the role of banks in sustainable development.
Chapter- 3: Banks’Representation at the Flow of Adulteration to the Environment: Discusses economic theories of market failure, externalities, and the role of global public goods in relation to environmental degradation.
Chapter- 4: Stakeholder’s Attitude/Attempt towards Green Banking Products: Examines how various stakeholders, including international councils, governments, NGOs, and consumers, influence green banking adoption.
Chapter- 5: Green Banking practices in Bangladesh:: Details the current state of green banking in Bangladesh, focusing on government policies, Bangladesh Bank's initiatives, and online/mobile banking infrastructure.
Chapter- 6: Developing New Green Banking Products:: Outlines the process of incorporating environmental objectives into product development and the necessity of organizational cultural change.
Chapter- 7: Bank as the Learning Organization:: Explores the conceptual framework of the learning organization as a means to improve adaptability and green performance in banks.
Chapter- 8: Greater Involvement of Stakeholders in the Strategy and NGBPD Process.: Analyzes different stakeholder engagement strategies, such as isolationist, aggressive, adaptive, and cooperative approaches.
Chapter- 9: Implications: Summarizes the study's findings on the current unstructured nature of stakeholder involvement in Bangladeshi banks and suggests pathways for improvement.
Chapter- 10: Conclusions: Concludes that while some progress exists, banks must shift toward a more proactive, learning-oriented culture to gain a competitive advantage in green banking.
Keywords
Green Banking, Bangladesh Bank, Stakeholder Engagement, Sustainable Development, Environmental Responsibility, NGBPD, Learning Organization, Corporate Social Responsibility, Climate Change, Green Finance, Environmental Risk, Financial Institutions, Market Failure, Externalities, Renewable Energy.
Frequently Asked Questions
What is the primary focus of this work?
This work examines the integration of environmental responsibility into the banking sector in Bangladesh, specifically focusing on how banks develop new green banking products through stakeholder collaboration.
What are the central themes of the research?
The core themes include green product development, stakeholder management, the "Learning Organization" model, and the role of regulatory bodies in promoting environmentally sustainable banking.
What is the main research question or objective?
The objective is to identify how commercial banks in Bangladesh involve stakeholders in the development of green products and which strategies are most effective for achieving sustainable growth and competitive advantage.
Which scientific methods are employed?
The study utilizes both primary and secondary data, including structured interviews with management across various commercial banks in Bangladesh and an analysis of organizational reports, journals, and official guidelines.
What topics are covered in the main body of the work?
The main body covers the economic theory of externalities, the role of international guidelines, specific initiatives by the Bangladesh Bank, the necessity of organizational learning, and strategic approaches for stakeholder involvement.
Which keywords characterize this research?
Key terms include Green Banking, Bangladesh Bank, Stakeholder Engagement, Learning Organization, Environmental Risk, and Sustainable Development.
How does the NGBPD process function in a bank?
The NGBPD (New Green Banking Product Development) process involves integrating environmental issues into traditional product development stages, necessitating an outward-looking and learning-oriented organizational culture.
What role does Bangladesh Bank play in these initiatives?
Bangladesh Bank acts as a regulator that provides policy guidelines, refinance schemes for renewable energy, and supervision to ensure banks adopt green practices and report on their progress.
Why is the "Learning Organization" concept crucial for banks?
It allows banks to adapt more quickly to external environmental changes and foster a culture that values innovation, stakeholder feedback, and continuous improvement in sustainability efforts.
- Quote paper
- Prakash Saha (Author), 2013, Developing Green Banking Products In Bangladesh: Involvement of Stakeholders, Munich, GRIN Verlag, https://www.grin.com/document/212687
