CSR and Zakat funds in unison can ensure security of the needy

Integration of CSR (corporate social responsibility) fund of the financial institutions and Zakat fund may play a vital role in ensuring social security of the country's underprivileged section, observed former Executive Director of Bangladesh Bank (BB) Abdul Awwal Sarker.

There is also scope to further explore the potential benefits of the nexus between the two funds as both the funds aim to achieve common goals, Mr Abdul Awwal viewed.

He made the observations while presenting a keynote paper at a roundtable on 'Corporate Social Responsibilities: Integrating Zakat and CSR Fund' held at a city conference centre on Sunday.

Center for Zakat Management (CZM), a non-profit organisation, organised the roundtable on the concluding day of two-day Zakat Fair 2023.

Former BB Governor Dr Salehuddin Ahmed attended the function as the chief guest while former secretary to the government Arastoo Khan moderated it.

CZM Chairman Niaz Rahim, former NBR Chairman Dr Abdul Mazid, Chief Executive Officer of CZM Dr Mohammad Ayub Miah and Member Secretary of the fair organising committee AMM Nasiruddin were present, among others.

The keynote presenter said there are opportunities for CSR-Zakat fund integration, with the common goal of human development.

He also said the central bank has already kept a provision in its guideline for the banks and financial institutions to work in tandem with the NGOs, micro-finance organisations and Zakat fund management agencies.

However, a number of speakers opined that it is not necessary to establish a linkup between the two funds because it would create some complications.

Dr Salehuddin Ahmed said the importance of Zakat is evident in the Islamic affairs.

Referring to an instance of improper use of CSR funds, the former central bank chief suggested separate management of the two funds.

Highlighting the necessity of implementation of any strategy, he said: "There is no scarcity of know-how in our country, what we are lacking is implementation."

Mr Arastoo Khan said a framework for environmental, social, governance (ESG) could be introduced in Bangladesh to ensure the optimum use of the funds meant for social security.

Dr Abdul Mazid said all of the financial institutions do not properly follow the CSR guidelines for using the fund as there have been instances of wrong beneficiary selection through nepotism.

Chief Executive Officer of SAJIDA Foundation Zahida Fizza Kabir said proper mobilisation of Zakat fund can help achieve some of the Sustainable Development Goals (SDGs).

"Financial aid for Bangladesh given by the international donors are gradually lessening, Zakat could be a suitable source of fund to fill the gap," she said.

The Financial Express (FE) was one of the media partners of the Zakat Fair.

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