&29,' - ICMAB

The Institute of Cost and Management Accountants of Bangladesh(A statutory body under the Ministry of Commerce, GoB)

ISSN

181

7-50

90

Bi-monthly Journal of the ICMABISSN 1817-5090NUMBER-02, MARCH-APRIL 2020

VOLUME XLVIII

Mr. Ruhul Ameen FCMA

w Mr. G M Omar Faruque Chowdhury FCMA

w Dr. Md. Saiful Alam FCMA

Mr. Md. Mahbub-Ul-AlamExecutive Director, ICMAB

Mr. Md. Abdul Maleque

Mr. Sami Al Mehedi

Md. Amirul Islam

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Contents

01Editorial

02From the President’s Desk

04Corporate Governance and its Implications for the Banking Sector of Bangladesh

10Income Tax Disputes Resolution through ADR: Bangladesh Perspective

18Stakeholders’ Perceptions towards Sustainability Reporting Practices of Listed Manufacturing Companies: Evidence from Bangladesh

30The Effect of Marketing Mix (7Ps’) on Tourists’ Satisfaction: A Study on Cumilla

41Beneficiary Accountability of NGOs: A Case Study on a Women EmpowermentBased Advocacy NGO

54Alternative Investments

55IFRS Update

57Update on Dhaka Stock Market

59CMA Students’ World

61ICMAB News

69Introducing The New Editorial Board

All rights reserved. No part of this publication may be reproduced, duplicated or copied by any means without the prior consent of the holder of the copyright, requests for which should be addressed to the publisher.

EDITORIAL

We are passing the March-April issue of the Cost and Management Accountants at such a time when the

entire world is struggling to prevent the transmission of novel corona viral disease (COVID-19). Like any other virus it cannot be fully eradicated but it can be controlled through developing higher immune power in our body. We cannot sanitize the whole world but we can sanitize our hands, feet, body and things around us by proper cleaning. We also can develop higher immunity through meditation and prayer, proper exercise and healthy food and a stress free life. Instead of these we are spreading panic and approaching a wrong way. This reminds me of the story of shoe discovery which cover our feet instead of covering the whole earth to protect us from dust.

The American Center for Disease Control and Prevention (CDC) stated that the genetic structure of the new virus has been changing rapidly. So, the world will have to wait one or more years for the vaccine of COVID-19. Hence, the World Health Organization (WHO) declared that the best way to prevent the spread of COVID-19 is to maintain ‘social distance’. Therefore, various countries already have adopted rigorous programs like lockdowns or shutdowns. Consequently, economic activity is gradually deteriorating around the world. Every day large number of people are joining to the procession of unemployment. The resultant situation is already creating multidimensional humanitarian crisis.

WHO appealed to the global leaders for reconsidering the way of our lifestyle and business approach. So as to adopt with the changing situation, we can move towards the virtual solutions like e-commerce, e-learning and telemedicine. Because, human civilization has already reached the entrance of the Fourth Industrial Revolution through the uses of Artificial Intelligence (AI), Internet of Things (IoT), Robotics and Computer Clouding. China has set a remarkable achievement in the field of digital economy. At the conference of the Association for the Advancement of Artificial Intelligence in New York in early February, Chinese researchers announced that consumer behavior in China has already been altered and may not revert. Alibaba’s CEO Yong Zhang noted: “We are confident in the ongoing digitalization of China’s economy”. Incidentally, the state of e-commerce in Bangladesh is encouraging. The world's largest e-commerce company- Alibaba, already entered our market with the acquisition of Daraj. According to media

reports, the Gross Merchandising Value (GMV) has increased several times in Bangladesh within last few months.

Besides, the COVID-19 infection is forcing us to think about our office management system. Because, the US CDC opined that the persons with symptoms of COVID-19 should stay at home. In this regard, “Remote Work” can be considered essentially relevant for today’s economy. A remote worker is someone who works at home instead of a traditional office. The World Economic forum referred to ‘remote work’ as “one of the biggest drivers of transformation of business. Various studies reveal that remote workers are considerably more productive than traditional office employees. As well, hiring remote workers can result in huge business savings by reducing in real estate costs together with office management costs, transportation cost and other relevant costs for employees. Moreover “Remote Work” is also a greener approach, because it could decrease huge volume of oil and gas burning. Thus, remote work can control tons of greenhouse gas emissions.

For ensuring e-commerce and Remote Work services, it is necessary to confirm sound internet facilities. In this regard, the preparation of Bangladesh is promising. Bangladesh already connected with two submarine cables and waiting for joining with the third submarine cable. Moreover, Bangladesh launched its first commercial satellite named Bangabandhu Satellite-1 into the space. Besides, with the aim of expand IT-based business and employment opportunities, the establishment of 100 economic zones along with the creation of sufficient number of high-tech parks are in progress. If we can be able to adopt such suitable virtual techniques in our economy, coronavirus may lead to more efficient opportunities and perhaps make possible better work practices and profits.

This journal has been striving for creating a platform of exploring the scholarly thoughts and insight of honorable members, Accounting scholars and other prospective academics and relevant researchers with the purpose of improving the national economy as well as our professional skill. We intensely believe that our esteemed members, academics and relevant researchers will come forward with pragmatic economic and social research articles. Which can be supportive for our state and corporate policy makers to get realistic direction for adopting with the current situation, as well take our journal to a new height.

Ruhul Ameen FCMA

Bi-monthly Journal of the ICMABISSN 1817-5090NUMBER-02, March-April 2020

VOLUME XLVIII

1 THE COST AND MANAGEMENTISSN 1817-5090, VOLUME-48, NUMBER-02, MARCH-APRIL 2020


I would like to remember with deep respect our Father of the Bengali Nation

Bangabandhu Sheikh Mujibur Rahman, the vivacious leader, the architect of independent Bangladesh and the greatest Bengali of all times, at his 100th birth anniversary. We should work all together to materialize his dream for building the country as “Sonar Bangla”.

I would like to remember with deep respect the ‘The Historic 7th March Speech’ by the Father of the Nation Bangabandhu Sheikh Mujibur Rahman on 7th March, 1971. His historic speech is often considered as one of the most influential speeches over the world as part of the world’s documentary heritage in 2017. The speech of Bangabandhu paved the way for independent Bangladesh in 1971.

In the meantime, we know that COVID-19 is touching every corner of our lives

From thePresident’s Desk

throughout the world. It is continuing to cause unprecedented challenges to our humanity, in terms of the public healthcare and economic stability. All companies are now facing unexpected and extreme challenges during this pandemic. It also now causes critical challenges to our accounting profession.

The business environment is being extremely affected due to reducing the volume of transactions, liquidity shortage, inefficiency in cash management and histrionic decrease of profits. Companies are under extreme pressure to meet company’s goals, objectives and expected returns. Layoffs and downsizing are driving employees under financial pressures as the business environment and market condition are changing rapidly due to COVID 19.

We should not assume to solve all of our difficulties today and we have to live with


uncertainty against the corona virus may be for indefinite period of time. But as a profession, we are providing the essential services to the global economy and society to restore the economy back to normal. I express my heartfelt thanks to Government for providing enormous stimulus packages in different sectors of Bangladesh to make the economic and financial condition stable. Professional accountants can also play a big role with the government's efforts to tackle the damages done by the coronavirus outbreak in Bangladesh. Our profession, with the global leaders and other professional bodies of accountants, is trying to join the efforts in restoring the economy. Moreover, we should develop a widely agreed upon conceptual framework (focusing the problems, challenges, reporting and other materials issues during the pandemic) considering the demand of various stakeholders. I am also expecting that the professionals will exercise the ethical practices with integrity and refrain from financial engineering.

The coronavirus might be an opportunity for the accounting, auditing and consulting regime to further grow under digital platforms and you will be happy to know that ICMAB is now offering online education, training and CPDs in a limited scale. In the meantime, we have successfully organized pre-budget discussion on national budget 2020-21 and international webinar on the theme “The challenges and Role of Professional Accountants amid and post COVID-19 era” using the digital platforms and provide the online CPD opportunities to enhance the knowledge of members. We are also trying to stand with our beloved members and students by giving financial assistance and engaging doctor’s service when necessary.

It is very unfortunate that the cost audit in all public limited companies has not yet been

ensured although notice was issued in this regard in 2001 under an act of Parliament . But, we are trying to pursue our Government to take necessary steps to implement cost audit in all public limited companies.

We are also planning to make a strategic plan 2020 to develop our institute in a new height and we have the plan to reform the existing education and examination systems, developing the course curriculum considering market demand, introducing the timely soft skill development programs, developing the qualified CMAs having technical and soft skills, creating the job opportunities for CMAs through meeting with employers, policy makers, business leaders, media and other segments, organizing more international conferences and seminars, and CPDs with joint collaboration using online platforms, provide training facilities on timely demanding issues, extending the scope of professional services for the members, implementation of cost audit in all sectors of the country and maintain liaison with the government officials for the development of the institute.

I am expecting that the world as well as Bangladesh would overcome the pandemic very soon and will restart a fresh journey of growth again with you all. I am seeking your full hearted support, cooperation, guidance and blessing to face the challenges due to COVID 19 and I firmly believe that with your continued support and blessing we will implement our strategic plan and uphold the image of the CMA profession in a new height.

“Keep our distance, wash our hands, think of others and play our part. All together.”

Md. Jasim Uddin Akond FCMA

AbstractCorporate governance plays an important role in economic growth and development. The governance of banks is of particular importance given their critical role in the financial system. Bank management has the responsibility to safeguard depositors’ money as well as to maximize shareholders interest. A sound banking system requires more prudential regulation and competitive banking environment. To be competitive banks must ensure corporate governance. In this context, the major objective of the study are to identify the critical factors responsible for governance in Bangladesh banking sector. Accordingly the study finds out nine critical factors contributing to the governance in Bangladesh banking sector and highlights on some issues on the governance practices in banks.

Key words: Corporate Governance, Banking Sector, Accountability, Transparency, Ethics.

Introduction and backgroundThere is no doubt that corporate governance plays an important role in economic growth and development. The governance of banks is of particular importance given their critical role in the financial system, channeling the public’s savings and providing the main source of funding for business. The impact of failure in banking can have immense costs. The growing importance of international standards and codes, such as the OECD Principles of Corporate Governance, Basel guidelines, have given both developed and developing countries an opportunity

Corporate Governance and its Implications for the Banking Sector of Bangladesh

Ashraf Al MamunAssociate Professor

Bangladesh Institute of Bank ManagementMirpur-2, Dhaka – 1216.

E-mail: [email protected]

GOVERNANCECORPORATE


to benchmark their progress towards strengthening their financial systems by improving governance. As banks are the main provider of finance to enterprises, their failure in that role can have a devastating effect upon growth, and ultimately thereby upon the need to tackle poverty (The World Bank, 2004).

Banks in any country are considered as the lifeline of the economy. Lack of corporate governance may pose serious threat to the economy as well as sustainability of banks. “Banks are institutions where people, rich and poor keep their money for safe custody as well as for getting benefits in the form of profit or interest (Ahmed 1998)”. Banks are the trustees of the depositors and depositors’ money are invested to generate profit which may ensure shareholders’ expectation. In doing so all the banks should run their businesses in a transparent and accountable way, which establishes good corporate governance. In this context, the role of corporate governance in the banking sector is considered critical to the sustainable growth in the banking sector.

Improving transparency, better disclosure of financial information, enhanced regulatory oversight and stronger corporate governance, including measures to improve accountability and better align shareholder and manager interests are necessary for better functioning of banks. Moreover, their impact has been reinforced by growing shareholder awareness of the importance of good governance and their increasing willingness to take action to hold managers accountable for their stewardship. These are all positive signs. However, this is a huge and complex task with many different facets. Looking forward, two areas need greater attention are, firstly, the corporate governance of banks- and, secondly, the need to promote the reform agenda at the international level and, in particular, within the developing world.

The need to regulate banking transactions is not new. Indeed, it exists in one of the earliest codes of law. But, in today’s modern world, the importance of banks has grown enormously: indeed, the special nature of modern banking institutions makes it not just desirable, but necessary, to take a broad view of corporate governance – one that promotes transparency and accountability as an integral part of sound financial regulation. In the broad sense of the term, corporate governance deals with all of the factors and forces,

both internal and external to the organization, that work to harmonize the interests of managers and shareholders (Baysinger and Hoskisson 1990). Corporate governance seeks to the harmonization of interests of managers and shareholders. The separation of ownership from control in modern corporations has led to some interesting questions and much debate among researchers and practicing managers (Baysinger and Hoskisson 1990; Berle and Means 1932; Johnson, Daily, and Ellstrand 1996; Zahra and Perace 1989).

As the banking sector has diversified into new products and services, and as it has grown in overseas representation and in the nature and scope of the risk it manages, so there is an even greater need for a sound framework of regulation and governance – one that balances protection for consumers and the wider economy with adequate incentives for taking on appropriate levels of risk. In fact, while bank governance has arguably had a lower profile than corporate governance, it raises all the usual ‘good governance’ questions. Moreover, there are some specific characteristics of banks that make good governance especially important:

n By their nature, banks manage liquidity and risk on highly leveraged balance sheets, and instability in banks can have a serious systemic impact

n Instability in the financial sector can, in turn, have a significant impact on the rest of the economy

n In addition, the complexity of many bank transactions means that good quality accounts and financial reporting are vital to ensure appropriate levels of transparency

n And, finally, there is also a particular risk of moral hazard in the operation of banks – particularly in being considered “too big to fail”.

Banking sector in Bangladesh is at present going through a transition. To catch-up with the tide banks must operate in a way so that it can maximize its earnings and take care of the different stakeholders properly. To ensure that the banking is moving on a right track, proper compliance of the existing regulatory and other national and international guidelines should be practiced.

The banking sector in Bangladesh comprises of four types of scheduled banks, namely, state-owned


commercial banks (SCBs), state-owned development financial institutions (DFIs), private commercial banks (PCBs) and foreign commercial banks (FCBs). According to Bangladesh Bank annual report 2017-2018 (as on 30 June 2018) there are 57 banks with 9654 branches in operation in the banking sector of Bangladesh. Moreover, few banks are in the process of obtaining license from the Bangladesh Bank, the central bank. The structure of Bangladesh banking is in the process of change i.e. more and more private commercial banks are entering into the market while SCBs are also in the process of either corporatization or complete privatization. Hence, the SCBs and PCBs in Bangladesh are introducing new banking products and services to be competitive in the market. For the SCBs, the overall performance is not satisfactory due to the fact that they had to comply with different government guidelines, political considerations etc. ignoring the fact that they must do their business in accountable and transparent way as the stakeholders of these banks are the people of Bangladesh. Again the PCBs are doing business sometimes by sacrificing the accountability and transparency. In recent past Bangladesh banking experienced some scams (Hallmark, Bismillah group, malpractices with bank funds etc.) which indicates lack of governance in their banking operations. Several measures have been taken by the Bangladesh Bank to put in place good corporate governance in the banks. These include regulation limiting the tenure of Board of Directors; appointment of independent directors in the boards of the banks by the Bangladesh Bank; limiting the number of Directors; fit and proper test for appointment of Board Members and Chief Executive Officer of the PCBs; constitution of audit committee of the Board and disclosure requirements. The role and functions of the Board of Directors and the Management of the banks have been redefined specifying the powers of the Management and the Board.

As the banking sector is being diversified into new products and services, so there is an even greater need for a sound framework of regulation and governance – one that balances protection for consumers and the wider economy with adequate incentives for taking on appropriate levels of risk. In fact, while bank governance has arguably had a lower profile than corporate governance, it raises all the usual ‘good governance’ questions. Therefore, it is relevant to focus on the factors responsible for ‘good governance’

i.e. transparency, disclosure, accountability, and ethics in banking.

A number of laws and regulations are in existence to regulate the banking sector of Bangladesh for ensuring corporate governance, such as, Bangladesh Bank Order, 1972 (P.O.No.127 of 1972); Bangladesh Bank (Nationalization) Order 1972 (P.O. No. 26 of 1972) as amended by Bangladesh Banks (Nationalization) (Amendment) Ordinance, 1977 (Ordinance No. 28 of 1977); Bank Company Act, 1991 (Act No.XIV of 1991), amended up to 2013; Financial Institutions Act, 1993 (Act No.XXVII of 1993); Financial Institutions Regulations Rules 1994; Foreign Exchange Regulation Act, 1947 (Act No.VIII of 1947); Money Laundering Prevention Act 2002 (Act No.VII of 2002); Negotiable Instruments Act, 1881 (Act No.XXVI of 1881); Negotiable Instruments (Amendment) Act, 1994 (Act No.XIX of 1994); Bankruptcy Act, 1997 (Act No.X of 1997); Bankruptcy Rules, 1997; Artha Rin Adalat Ain [Money Loan Court Act], 1990 (Act No.IV of 1990); Artha Rin Adalat Bidhan [Money Loan Court Rules], 1990; and Companies Act, 1994 (Act No.XVIII of 1994).

Objectives of the studyBased on the above discussions this study has the following objectives, the major objective of this study is to identify the critical factors responsible for governance in Bangladesh banks.

Methodologies and scope of the studyThe study is limited only to perception of the bankers for ensuring good governance in overall banking operation in Bangladesh. An opinion survey was conducted from the participants of the training course of the Bangladesh Institute of Bank Management (BIBM) regarding the factors responsible for ensuring good governance in banking sector of Bangladesh. To make the sample representative, the questionnaire (Annex) has been distributed among 250 officials of different commercial banks (SCBs, DFIs, PCBs, and FCBs) operating in Bangladesh in the rank starting from Senior Officer to Deputy General Manager or equivalent positions. Of them 211 bank officials responded (response rate 84%). The responses are processed using Factor Analysis (Principal Component Analysis) technique in the SPSS. The study was


conducted during 2019. As this study uses questionnaire survey, hence the principal source of data is primary. Secondary data is collected from different sources such as literatures, articles, publications, annual reports, Bangladesh Bank Circulars, and web sites.

The questionnaire comprises 9 factors identified by the researcher to measure the banker’s opinion on the governance in banks. The respondents are then requested to rank the 9 factors in order of their significance. For measuring the answer, a five-point Likert scale as mentioned below is used:

Strongly agree – 5; Agree – 4; Uncertain – 3; Disagree – 2; and Strongly disagree -1

The Likert scale is a convenient measurement to quantify the qualitative judgment such as opinion, perception, attitude of the respondents and it was also used in different studies e.g. (Beattie et al., 1999) and (Hussey and Lan, 2001).

Analysis and FindingsA well governed banking sector requires a legal, ethical and rational system of activities. To cope pace with the increased competition every commercial organization requires accountable and transparent system. Banks make business of trust and to do that they need to be accountable and transparent in their operation as well as reporting. To make the banks accountable and transparent, the central bank is strengthening its supervision and monitoring on a continuous basis. Not only the central bank has the responsibility to ensure good governance in the banking system but also all concerned should perform their duties in a legal and ethical manner.

By applying the technique of factor analysis (principal component analysis) the study have identified nine major contributing factors for ensuring better governance in the banking sector of Bangladesh. Based on the factor-wise average scores, ranks were obtained for nine factors as shown in the following table:

Table: Ranking of the Factors Contributing to Corporate Governance in Bangladesh Banking Sector

Name of the Factors Average Score Rank

Transparent Relationship Between Banks And Their Clients 2.958 1

Credit Administration, Monitoring And Recovery 2.860 2

Clearly Defined Management Structure And Policy 2.638 3

Exposure Concentration And Bias-Less Judgment 2.464 4

Independence And Competence In Risk Analysis 2.446 5

Mechanism Of Minimizing Conflict Among Stakeholders 2.359 6

Information Disclosure To Clients And Information On Market Risk 2.255 7

Obligation To Offer Higher Standard Service And Harmony Among Stakeholders 2.062 8

Credit Assessment And Board’s Role 1.858 9

Source: Result of the opinion survey.

The ranking of the factors reveals that “Transparent Relationship Between Banks and Their Clients” (score 2.958, rank 1) considered most important in case of governance in Bangladesh banking sector. It signifies that depositors, customers, and the public are adequately informed about the strength(s) and weakness(es) of bank and full disclosure is made to depositors, customers, and the public that bank’s directors and managers are adequately safeguarding depositors’ fund.

“Credit Administration, Monitoring And Recovery” (score 2.860, rank 2) reflects that the methods of loan authorization and lending limits are clearly spelled out, personnel assigned to credit risk management functions have relevant training, there is a separate section to follow up and monitor loans and there is a separate unit in bank to recover debt.

“Clearly Defined Management Structure And Policy” (score 2.638, rank 3) shows that management structure


i.e. responsibilities, reporting lines, qualifications, experiences etc. is clearly defined, appointment, posting, transfer and promotion of the employees are very much transparent, and remuneration policies, executive compensation, bonuses, are fairly transparent.

“Exposure Concentration And Bias-Less Judgment” (score 2.464, rank 4) shows that exposure concentration (lending and deposit) is disclosed and credit approval is largely based on quantitative or objective judgment and personal biasness does not happen. “Independence And Competence In Risk Analysis” (score 2.446, rank 5) signifying that there are some provision to train the directors and senior management of bank to understand and manage risks and there is an officer(s) assigned to monitor and report on corporate governance compliance and that they can act independently.

The remaining four factors i.e. “Mechanism of Minimizing Conflict Among Stakeholders” score 2.359, rank 6), “Information Disclosure To Clients And Information On Market Risk” (score 2.255, rank 7), “Obligation To Offer Higher Standard Service And Harmony Among Stakeholders” (score 2.062, rank 8) and “Credit Assessment And Board’s Role” (score 1.858, rank 9) also has significant influence on the overall accountability and transparency in Bangladesh banking sector.

Most of the factors that are required to ensure accountability and transparency in banking sector are at this moment present in the banking system. Even after that, it is generally spoken that in Bangladesh, banking environment is not sound. Several measures have been taken by the Bangladesh Bank to put in place good corporate governance in the banks. These include regulation limiting the tenure of Board of Directors; appointment of independent directors in the boards of the banks by the Bangladesh Bank; limiting the number of Directors in the boards; fit and proper test for appointment of Board Members and Chief Executive Officer of the PCBs; constitution of audit committee of the Board and disclosure requirements. The role and functions of the Board of Directors and the Management of the banks have been redefined specifying the powers of the Management and the Board. Also the Bangladesh Bank issued different manuals for management of the

six core risks (asset-liability risk, credit risk, money laundering risk, internal control and compliance risk, foreign exchange risk, and IT risk) to properly guide the banking sector.

Issues related to the governance practices in banks in BangladeshNot always, the profitability and assets quality figures only matter for a bank but also the management’s attitude, ethics and concern for the society matters. Most private banks’ lending is concentrated in the urban areas. How can the banking sector trade off the following two conflicting situations:

v A more privatized banking sectorv Extending banking services in the rural areas

Private banks should extend their services to the rural areas to be accountable because their deposits are not coming only from urban areas. Here remains the question of economic operation. They should also find test of economic operation and the answer because not all their activities are economically viable. Controlling operating costs is a major focus for all the commercial banks. For the SCBs inefficiency expense is a threat. On the other hand, for PCBs over spending to increase efficiency also must be taken into consideration because it creates social imbalance and as such it may not be transparent. Banking sector requires efficiency but becoming too aggressive, dynamic and efficient CEOs might sometimes create destruction for the overall banking sector. Payment must be related to performance. CEOs must earn their remuneration. The operation of the FCBs is limited to a few people and they are not extending their operation to agricultural sector and not even they have any rural operation. Foreign banks do not have shareholders in Bangladesh. They are in the same tax bracket but with operation in more profitable areas. Also, depositors having a smaller amount do not get any interest and moreover small depositors are charged with bank charges, so their degree of operational accountability and transparency begs a question.

ConclusionThis study is only an indicative study of corporate Bangladesh banking sector. There is scope for further study in the area of ensuring corporate governance in this sector. The study reflects the bankers’


opinion and perception about the factors critical for good governance in Bangladesh banking sector. A separate study considering the external perception (shareholders’ view) regarding accountability and transparency would certainly provide a complete picture. The adoption and implementation of the Code of Corporate Governance by the banking sector can enhance the degree of accountability and transparency in this sector.

Bangladesh banking sector is now facing strong demands for improvement in the following four aspects: (i) Transparency, (ii) Accountability, (iii) Information Disclosure, and (iv) Ethics. There can be no doubt that, in the future, a great competitive gap will open up between those banking companies that actively undertake reform of their governance and those that neglect to do so.

References

Ahmed, S. (1998). “First Nurul Matin Memorial Lecture on Ethics in

Banking”, Bank Parikrama, Vol. XXIII, March & June.

Bangladesh Bank, Annual Report (2017-2018), “Department of Public

Relations and Publications”, Bangladesh Bank, Dhaka.

Baysinger, B.D., and Hoskisson, R.E, (1990), “The Composition of

boards of directors and strategic control: Effects on corporate

strategy”, Academy of Management Review, 15: 72-87.

Beattie, V., Brandt, R and Fearnley, S., 1999), “Perceptions of Auditor

Independence: UK Evidence”, Journal of International Accounting,

Auditing and Taxation 8(1). 67-107.

Berle, A.A., and Means, G. C., (1932), The Modern Corporation and

Private Property. New York: Macmillan

Hussey, R. and Lan, G., (2001), “An Examination of Auditor

Independence Issues from the Perspective of UK Finance

Directors”, Journal of Business Ethics 32. 169-178.

Johnson, J. L., Daily, C. M., and Ellstrand, A.E., (1996), “Boards of

directors: A review and research agenda”, Journal of Management,

22: 409-38

The World Bank, 2004. Found in www.gcgf.org

Zahra, S.A., and Pearce, J.A., II, (1989), “Boards of directors and

corporate financial performance: A review and integrative model”,

Journal of Management, 15: 291-334.

Annexure

Questionnaire for Opinion Survey of Bankerson “Factors influencing corporate governance in

banks”

Name (Optional):

Designation:

Bank:

Please indicate by tick mark (√) the extent to which you support the statement in the following scale that best reflect your perception and judgment. (All the information will be used for research purpose only).

Strongly agree 5

Agree 4

Uncertain 3

Disagree 2

Strongly disagree 1

SL. Particulars Response

1 2 3 4 5

1 Factor 1: Information Disclosure To Clients And Information On Market Risk

2 Factor 2: Credit Assessment And Board’s Role

3 Factor 3: Credit Administration, Monitoring And Recovery

4 Factor 4: Independence And Competence In Risk Analysis

5 Factor 5: Transparent Relationship Between Banks And Their Clients

6 Factor 6: Clearly Defined Management Structure And Policy

7 Factor 7: Exposure Concentration And Bias-Less Judgment

8 Factor 8: Obligation To Offer Higher Standard Service And Harmony Among Stakeholders

9 Factor 9: Mechanism Of Minimizing Conflict Among Stakeholders


http://www.gcgf

AbstractAlternative Dispute Resolution (ADR) system is common place in settling revenue disputes in the tax administrations around the world. Bangladesh joined the club in 2011. Unlike the conventional dispute resolution mechanism, ADR facilitates settlement of disputes in a quick and cost effective manner. The system seems to be working efficiently in countries like the UK, Australia and other countries. In Bangladesh it is observed that though ADR system is in operation and gradually gaining ground the success of ADR as a tax dispute settlement forum seems to be a bit slow. The present article discusses the background of the introduction of the ADR system and the success of the same so far.

Key words: Income tax, Dispute settlement, Alternative dispute resolution, Bangladesh income tax department.

Tax is at the heart of our societies. A well-functioning tax system is the foundation stone of the citizen-state relationship, establishing powerful links based on accountability and responsibility. It is also critical for inclusive growth and for sustainable development, providing governments with the resources to invest in infrastructure, education, health, and social protection systems.

------Angel Gurria, Secretary General, OECD

Income Tax Disputes Resolution through ADR: Bangladesh Perspective

Dr. Sams Uddin AhmedCommissioner of Taxes

[email protected]


Part I: IntroductionThe traditional dispute resolution system in Bangladesh

is the adversarial system as developed in England by

Common Law. Taxation litigation is not an exception.

But the adversarial system is time consuming, full of

procedural complexities and expensive (Caenegem,

1999). This negative feature of the dispute resolution

system provides a perception among the taxpayers

that the income tax department is not taxpayer

friendly and consequently mars the investment climate

discouraging the FDIs and even local entrepreneurs.

Besides, a large amount of tax revenue cannot be

collected because of the pendency of the tax disputes

in the higher dispute resolution forum (Bangladesh

Protidin, 2020).These cases could have been settled

easily and speedily if there would be any dispute

settling forum that facilitates quick disposal of tax

litigations. Against this backdrop there is no gainsay

that alternative dispute resolution system is by far the

best system to resolve revenue cases in an accelerated

manner without wasting time and resources. Realizing

the truth the NBR introduced the ADR system in

2011.

After its introduction the ADR system faces challenge

since the number of cases resolved through ADR

is not very enterprising. Since the introduction of

the ADR system in the income tax department of

Bangladesh, the system does not seem to be a success

in terms of dispute settlements and the collection of

revenue as well. The purpose of the present article is

to delve into the matter why ADR is not experiencing

expected success in settling income tax disputes in

Bangladesh. The article is arranged as follows: Part I

gives an introduction. Part II narrates the tax dispute

resolution process in Bangladesh. Part III discusses the

introduction of ADR in the NBR. Part IV examines

the issue of success and failure of ADR in Bangladesh.

Finally part V gives a conclusion.

Part II: Tax Dispute Settlement Process in Bangladesh: The Protraction ContinuesThe legal system of Bangladesh is adversarial system

based on the Common Law of England. In this system

the judge plays the role of an umpire and passes

judgment in favor of the party who plays well i.e.,

the party who can defend her case well by producing

enough evidences and arguments. The present legal

frameworks and the bulk of statutes were crafted

by the English jurists and parliamentarians during

the British rule in the then Indo-Pak subcontinent.

Likewise in 1922 Income Tax Act was made by the

British people to impose and collect tax in the country.

That law continued until 1984 when the new Income

Tax Ordinance was adopted.

Income Tax Ordinance (ITO) 1984 prescribes the

legal provisions how to settle income tax disputes

between the assesse and the income tax department.

The process starts from the submission of income

tax returns. Under the ITO, there are two systems of

submission of return. One is under the universal self-

assessment system and the other is under the normal

system. When the assesse submits returns under

the normal system the DCT goes for administrative

assessment.

He issues notice to the assesse, takes hearing of

the assesse and finalizes the assessment. Under the

universal self-assessment system a few number of

returns are selected for audit with the prior approval

of the NBR and the DCT goes for making normal

assessment issuing notice of hearing to the assesse.

In both the cases, if the assesse is not happy with the

assessment order of the DCT she can prefer appeal

to the first appellate authority as per legal provisions.

This is called the first appeal. If the assesse is not happy

with the order of the first appellate authority then she

can file second appeal to the Taxes Appellate Tribunal.

The order of the Tribunal is final if the order relates

to the question of fact. If there is any question of law

then the assesse can prefer appeal to the High Court

Division (HCD) of the Supreme Court of Bangladesh.

If there is any law point and the department is

aggrieved, it can prefer reference application to the

HCD. The assesse can file writ petition with the HCD

in appropriate cases. In some cases a dispute can go

to the Appellate Division of the Supreme Court of

Bangladesh for decision.


So it is evident that for a tax dispute to be settled in the traditional dispute resolution forum takes necessitates several steps that takes long time, human hour and also cost. The following chart shows the time necessary for disposing of income tax disputes in different forums.

Besides, often huge amount of revenue remains uncollected due to pendency of cases in the higher dispute resolution forums. In a report published in the daily Bengali vernacular Bangladesh Protidin on March 2, 2020 it

Income Tax Dispute Resolution System in Bangladesh

Appellate Division of the Supreme Courte of Bangladesh

Question of Law

High Court Division of the Supreme Courte of Bangladesh

Question of Law

Taxes Appellate Tribunal

Assessee

Assesse files appeal against the order of the DCT

Deputy Commissioner of Taxes

Commissioner of Taxes(Appeals)

Files Return

Supreme Court of Bangladesh

No statutory time limit. But generally 2-3 years.

Average 10 months

Average 9 months

Average one yearDeputy Commissioner of Taxes

Commissioner of Taxes (Appeals)

Taxes Appellate Tribunal

High Court Division

Time Involved in Settling Tax Dispute through Tradition Forums

Appellate Division


is revealed that as of 2019 -2020 fiscal year revenue cases involving both direct and indirect cases stood at a number of twenty seven thousands seven twenty five hundred and the amount of revenue involved is forty one thousands crores taka. Among these cases the amount of income tax involved stands to the tune of taka twelve thousands nine hundred seventeen crores. These cases are pending before the HCD, Appellate Division of the Supreme Court of Bangladesh and in the respective taxes Appellate Tribunals. It has been reported that a section of dishonest business people take the cases to the higher forum to prolong tax collection and in some cases not to pay their fair amount of taxes. As a result it is creating pressure on the treasury of the government (Munna, 2010). The law officer of the NBR informed that if the cases were disposed of in a timely manner then the government could have collected huge amount of revenue. The statistics furnished presents the dismal picture of prolongation of revenue cases increasing time and costs for the taxpayers and the government simultaneously. Against this backdrop, it is worthwhile to look for alternative dispute resolution mechanism which is known as ADR.

Part III: ADR in the Income Tax Department of BangladeshSettling disputes through ADR is as old as the history of litigations and conflicts in the society. The ADR system can be traced back to 450 BC when the Roman Twelve Tables prescribed ADR to settle dispute (Gulfam, 2014). The traditional dispute resolution mechanisms do have their limitations in terms of time and cost involved in settling the disputes. ADR is common in the family matters and in large commercial disputes. The limitations of the traditional court system helped in the development of the ADR system. As the Irish Law Commission Report (2010) states, “It is clear that, from one perspective, the word—alternative refers to looking outside the courtroom setting to resolve some disputes. In this respect, the Commission fully supports the long-standing approach of the legal profession and of the courts that, where it is appropriate, parties involved in civil disputes should be encouraged to explore whether their dispute can be resolved by agreement, whether directly or with the help of a third party mediator or conciliator, rather than by proceeding to a formal—winner v loser‖ decision by a court. This

happens every day in the courts, in family litigation, in large and small commercial claims and in boundary and other property disputes between neighbours.”A democratic society must ensure access to justice for its citizens. The constitution of the people’s republic of Bangladesh like all other democratic countries, ensures the provision of access to justice to realize the fundamental right of the people of Bangladesh. Access to justice can be ensured through wider choice of avenues of dispute settlement mechanisms. In this respect the Irish Law Commission in its Consultation Paper noted, —In promoting access to justice, a modern civil justice system should offer a variety of approaches and options to dispute resolution. Citizens should be empowered to find a satisfactory solution to their problem which includes the option of a court-based litigation but as part of a wider ’menu of choices‘.

ADR is the part of the formal legal system of Bangladesh. Sajal (2015) notes, “ADR system has been introduced within the formal justice system to minimize inordinate delays and to reduce undue litigation costs.” Presently, in the civil matters, ADR is found in the Civil Procedure Code, Artha Rin Adalat Ain, 2003, The Family Courts Ordinance, 1985, Village Court Act, 2006, Code of Criminal Procedure, 1898 and Arbitration Act, 2001, The Value Added Tax Act, 1991, The Legal Aid Rules, 2015,The Conciliation of Disputes (Municipal Areas) BoardAct, 2004.The Labor Act, 2006,The EPZ Trade Union and Industrial Relation Act, 2004. From the very inception of the pilot project of ADR in the Family Court the ADR system witnessed success to a considerable extent (Gulfam, 2014). Though not an alternative for a formal judicial system, ADR program is commonly used by most of the tax administrations in the world to settle tax disputes. For example in the UK ADR system was introduced as a pilot project in 2011. Since its introduction the ADR system is considered to be a huge success both by the department and the taxpayers as well (EY, 2014).The UK tax administration is now seriously thinking to extend the use the ADR to resolve tax dispute involving factual rather than technical issues, the litigation that involves cost in regular forum, cases involving uncertainties of facts, cases involving lack of clarity and understanding regarding the parties’ respective technical position. In Australia the ADR in settling tax disputes is very effective (Sourdin, 2015). According to Australian


Taxation Office (2017) ADR is cost-effective, informal, consensual and speedy way to resolve disputes. The ATO uses three types of ADR namely in-house facilitation is the ATO’s version of mediation, and is a free service where a trained independent ATO facilitator assists participants to negotiate their dispute in large, complex disputes the ATO may consider engaging an external practitioner to conduct ADR can also be initiated by the courts or tribunals in litigation cases. Mediation, conciliation and early neutral evaluation are the most commonly used in tax and superannuation disputes.

However, in line with the successful introduction of ADR system in the formal legal system of Bangladesh, the National Board of Revenue (NBR) introduced ADR system in the income tax department through Finance Act 2011 to settle income tax disputes. New chapter XVIIIB that contains sections 52F to 52S and the newly added sections deal with the detailed provisions of dispute settlement through ADR. Regarding the ADR, the NBR states, “Alternative Dispute Resolution (ADR) is a process of resolving disputes within shortest possible time beyond the regular course of business followed by Appeal/Tribunal/Court. This is a platform for holistic and multilateral discussion with the third party in resolving disputes. This benefits both the taxpayers and the government. It reduces the cost of trial as well as facilitating the government in collecting revenue within shortest possible time. This is a speedy way of resolving disputes. Following a global trend of success of ADR in tax administration Bangladesh has introduced this method in 2011-2012 financial year.” ADR was introduced for resolving disputes involving both direct and indirect taxes in Bangladesh. According to section 152F any dispute of an assessee lying with any income tax authority, Taxes Appellate Tribunal or Court may be resolved through ADR. It means that cases pending at the High Court Division or Appellate Division of Supreme Court are also qualified to apply at ADR. The aggrieved assessee may apply at ADR obtaining permission from the concerned Court. The proceeding of such appeal or reference shall remain stayed till the disposal of the application for ADR. According to section 152II where an assessee has filed an application for ADR for any income year and for the same income year, the Deputy Commissioner of Taxes has filed an appeal before the Appellate Tribunal or the Commissioner has made a reference before the High Court Division and no decision has been made in that respect by the Appellate Tribunal or High Court Division as the case may be, the proceeding of such appeal or reference shall remain stayed till disposal of the application for ADR. It follows that the assesse has been given a wide range of privilege in resorting to ADR before the same is resolved by the traditional dispute resolution forums. Before filing ADR application the assessee must pay the tax as per the income tax return under the provision of section 74 of the Income Tax Ordinance 1984. In the ADR system a facilitator is nominated by the NBR who sits with the taxpayer and the representative of the income tax commissioner to settle the agitated issues. If agreement is reached the facilitator passes an order and the order is binding on the parties. The taxpayer has to pay the tax within the stipulated time failing which the order stands null and void. If there is no agreement the assesse can go for traditional dispute resolution as per the provision of law. Following chart delineates the statistics of the cases brought to ADR and disposed of by the same since the inception of the ADR system in Bangladesh.

Source: National Board of Revenue


The ADR system in Bangladesh appears to be very brief compared to the traditional dispute settlement system. The following diagram shows the ADR process of disposal.

Source: National Board of Revenue

Part IV: Is ADR a Success in Bangladesh?It is observed that in recent years ADR in tax matter is becoming popular around the world. Countries like India, Australia, and the UK all are gradually promoting ADR in tax disputes to reduce the time and financial cost of both the taxpayers and the governments. From the statistics furnished in the previous section it is observed that during six years of its operation only 998 cases were brought before the ADR forum for settlement. Among


the cases 597 cases were fully agreed on by both the

parties. Most of the cases were individual income tax

cases. The NBR is working hard to make the ADR

system popular among the taxpayers. Anecdotal

evidence shows that taxpayers, particularly the

income tax practitioners do not feel interested to go

to ADR forum and even if they go and agree with the

ADR decisions they do not abide by the order of the

ADR facilitator. Under the circumstances ADR can be

seen as another forum to protract the litigations. For

as mentioned earlier the other options of taking the

litigation to the traditional forums are not closed. So

if a taxpayer feels that the ADR order might not be in

her favor, she opts out of the ADR. One important

issue is the neutrality of the facilitator of the ADR

proceeding. So far there is no complain regarding

the neutrality of the facilitators. But there should be

a system of monitoring in this respect. Among the

weaknesses of the ADR system some important issues

have been identified by the researchers. For example,

Islam (2019) identities inter alia absence of proper

institutional tricks, lack of appropriate training of the

lawyers and judges, lack of proper education of the

people, negative attitude of the lawyers towards ADR

system, lack of awareness among the stakeholders

and to some extent corruption in the mechanism.

For income tax department it might seem early to

make any hasty comments regarding the success

and failure of the ADR system. But the NBR should

move more quickly to address the issues mentioned

in this article to make the ADR system a successful

one. It is to be mentioned that the tax lawyers of

Bangladesh expressed their opinion regarding the

institutional structure of the ADR system when on

the eve of its launcing.The lawyers were not against

the ADR system. But the demanded that the system

should be introduced in separate institutional frame

work (The Daily Star, 2011). It seems that they like

separate institutional framework like the Taxes

Appellate Tribunal, independent of the NBR. In fact

it is a question of tax dispute system design. It can be

argued that this is not important whether the ADR is

separate or not. What is important was the vision of

the NBR that it took the timely step to go for ADR.

The current system can be reviewed by a committee

of expert regarding its institutional perspective.

Currently, the ADR system lacks adequate manpower

and logistic supports. Anecdotal evidence supports

this statement. Besides the NBR should make

necessary arrangement to impart adequate training

to the officers and the lawyers regarding the effective

method of conducting ADR proceeding. The

facilitators should have the same opportunity and

bent for training to gain enough skill to facilitate ADR

cases.

Part V: ConclusionADR in Bangladesh has now gained ground because of its certainty, efficiency, timeliness and cost effectiveness. Islam (2019) states, “The ADR mechanism is very remarkable and successful development in Bangladesh to resolve the disputes inalternative way. When a dispute is solved amicably with thesaving of time and cost of the litigants then it ensures theimpartiality, integrity and authenticity of the ADRmechanisms.” Gearing the earlier resolution of income tax disputes is an important mission of the NBR. Settling disputes earlier saves time and money for taxpayers and the income tax department. ADR also provides certainty for assessees. It will facilitate the NBR’s capacity to contribute to the economic and social wellbeing of Bangladesh by encouraging willing participation in our income tax system. For the success of the ADR system it is necessary that the department be more responsive to the taxpayers, their advisors, the legal profession and other stakeholders in the income tax system. The taxpayers should also be aware of the benefit of the ADR system and also the tax advisers should come forward by making the taxpayers aware of the benefit of the system. By referring to a research on ADR in Australia Sourdin (2015) states, “The research… showed that there was a perception among some survey respondents that, in order for an ADR process to be beneficial, everyone has to ‘come to the table with an open mind’. It was suggested that in some circumstances participants had not engaged in good faith or appropriately. It was also noted that there should be clear guidelines as to when ADR is appropriate, as it may not be appropriate for all cases.” It is expected that the ADR in the income tax department of Bangladesh will be more prominent and much liked forum for early resolution of income tax disputes in coming days.


References

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is used to settle cases, Taxation (26 November 2019). https://

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Banglavision, 13(1), 205-2016. http://bv-f.org/17.%20BV%20

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Stakeholders’ Perceptions towards Sustainability Reporting Practices of Listed Manufacturing

Companies: Evidence from Bangladesh

Dr. Mohammed Fazlur Rahman Khan(Member of 24th BCS General Education Cadre)

Assistant Professor (Accounting)

Mymensingh Govt. College

Mymensingh, Bangladesh.

e-mail: [email protected]

Abstract

Sustainability Reporting has become increasingly relevant to the enterprise in ensuring environmental protection. Accordingly, target 12.6 of the SDG12 specifically advises to integrate sustainability information into the reporting cycle of companies. But, disclosure of sustainability information is largely depending on the expectations of stakeholders, because Sustainability Reporting is still unregulated in developing economies like Bangladesh. Therefore, recent Sustainability Reporting literature emphasizes the importance of exploring the perceptions of both managerial and non-managerial stakeholder groups regarding Sustainability disclosures. But, very few studies have been carried out that examined both managerial and non-managerial stakeholders’ views towards Sustainability Reporting practices in the context of developing countries. And so, the study aimed at exploring the perceptions of five selected managerial and non-managerial stakeholder groups regarding the various aspects of the reporting practices of the listed manufacturing companies in Bangladesh, by arranging a series of interviews with the help of a structured questionnaire. The study revealed that most of the selected stakeholders considered Sustainability Reporting as a significant tool for reducing environmentally hazardous activities of the companies. But stakeholder believed that external audit is essentially necessary for ensuring credibility of sustainability disclosures. Besides, maximum survey participants opined that Sustainability Reporting should be a mandatory task for the listed manufacturing companies in Bangladesh. The study included only 85 respondents from five stakeholder groups that were slightly different in sample sizes.

Keywords: Sustainability Reporting, Stakeholder, Stakeholders’ perceptions.


1.Background of the Study On 1st January 2016 the world takeoff for an exclusive journey of universal development in the name of the Sustainable Development Goals (SDGs). The SDGs incorporated 17 Goals with 169 associated Targets that can be utilized to frame the national and international agenda to end poverty and tackle climate change by 2030 (Khan, 2016). According to the UN Conference on Trade and Development (UNCTAD), at the beginning stage of investment in SDG-relevant sectors, developing countries alone face an annual gap of $2.5 trillion. So it is clear that the SDGs will not be achieved without engaging businesses. Because, as a key stakeholder, business organizations have a vital role in the sustainable development process either negative or positive. Consequently, the SDGs clearly call on all businesses to measure and report their impacts on sustainable development (DSE, 2019). Sustainability reporting is an emerging significant tool in introducing social and environmental cost and other relevant Sustainability information of the organizations to their stakeholders which is necessary to identify the ways of reducing or avoiding such cost and hazards for achieving sustainable development (Gray et al., 1995). Accordingly, SR is specified in target 12.6 of the SDG 12 (Responsible consumption and production) which exactly advises to encourage companies, to integrate sustainability information into their reporting cycle in order to apply their creativity that improve business approach as well reducing their footprint and minimizing overall impacts. It can provide a broader view of a company’s performance than financial disclosure alone (DSE, 2019).

On the other hand, The Labor Force Survey 2018 revealed that only about 13% people of the Bangladeshi labor market are engaged in institutional work. And about 4.2% of the total workforce is unemployed. (BBS, 2018). Therefore, Bangladesh has been striving for employment-intensive industrialization since its independence. Consequently, with a view to accelerating the pace of industrialization in the country, the ‘Outline Perspective Plan of Bangladesh (2010-2021): Making Vision 2021 A Reality’ have also recognized the importance of manufacturing as vehicle of reducing unemployment. Hence, the growth in manufacturing sector stood at about 9 percent in FY 2016-2017 (GoB, 2018). But, Bangladesh has not been achieved sufficient structural industrial transformation,

and insufficient consideration has been given to the sustainable consumption and production (Nath, 2012). The consequence of largely unregulated industrial development has caused in many adverse sustainability effects in Bangladesh (Alam, 2009). The toxic discharges from manufacturing industries pollute both surface and ground water sources. Thus industrial development of Bangladesh is taking high toll on its natural resources (Ahmad, 2012). But it is not expected to have more corporate profit at the cost of sustainability. (Enahoro, 2009).

Since SR has the potentiality to enhance accountability of the corporate organizations regarding sustainable development, it is essential to realize the reasons of SR is, or is not evolving in developing countries like Bangladesh (Belal & Cooper, 2011). Therefore, within the last few decades SR has become a popular field of research around the world (Yaftian, 2011). But, most of the previous studies of SR were focused on developed countries and very few studies have been carried out in the context of developing countries like Bangladesh (Belal & Owen, 2007). However, SR studies in Bangladesh are mainly determined by the volume of disclosure that using secondary data (Imam, 2000). Moreover, disclosure of sustainability information in Bangladesh is still voluntary in nature. As a result, several scholars (Islam & Deegan, 2008) have called for more direct engagement-based studies in developing countries like Bangladesh by using primary data. Besides, latest literature emphasizes the importance of exploring the perceptions of both managerial and non-managerial stakeholder groups regarding SR. Some very recent studies concentrate on the perceptions of multiple stakeholder groups (Belal & Cooper, 2011).

But, so far researcher’s knowledge goes, there is little evidence of comprehensive recent study that examined the perceptions of both managerial and non-managerial stakeholders’ views regarding the significance of SR and credibility as well adequacy or inadequacy of existing regulatory frameworks of SR of the listed manufacturing companies in Bangladesh context. So, there is ample opportunity to carry out an inclusive research in this field. In addressing the gap in the existing literature, present study aimed at exploring the perceptions of 85 managerial and non-managerial stakeholders regarding various aspects of


SR practices of the listed manufacturing companies in Bangladesh.

2. Objectives of the StudyThe objective of the study is to explore the perceptions of the multiple stakeholder groups regarding the significance, credibility and regulatory frameworks of Sustainability Reporting practices of listed companies in Bangladesh context.

3. Literature Review Rudyanto and Siregar (2018) conducted a study on “The effect of stakeholder pressure and corporate governance on the sustainability report quality” in Indonesia by using multiple regression method. The study revealed that pressure from consumers and employee positively affects the quality of sustainability reports of the companies. But pressure from shareholders has no effect on the quality of sustainability report. Zhao (2011) conducted a study on environmental reporting practices in a Chinese context. The researcher used content analysis, questionnaire survey and in-depth interview methods for conducting the study. The study reveals that the regulatory requirements and other national and international corporate issues influence the SEAR practice in China. Haque (2011) conducted a comprehensive study on ‘Climate change related corporate governance disclosure practices in Australia’. Attempt has been made to evaluate the nature of the climate change related corporate governance disclosure practices of the companies and to know the perception of the stakeholders regarding the reporting and to investigate the reasons for the practices. In this study the researcher used content analysis method, in-depth interview and survey methods. The study identified some reasons for the low level of climate change related corporate disclosures practices of the Australian companies. Belal and Robrets (2010) conducted a study with the aim of exploring the perceptions of non-managerial stakeholders regarding corporate social reporting in the context of a developing country, Bangladesh. By the help of a series of semi-structured interviews the study reveals that CSR is evolving in Bangladesh as a response of pressures from international markets and

is producing largely cosmetic responses. Clarkson et al. (2008) had a study on Revisiting the relation between environmental performance and environmental disclosure: an empirical analysis and revealed that sustainability report is made to assist decision makers and stakeholders by translating ecological, economic and social data. However, decision makers and stakeholders have to make sure that the sustainability report made by corporation is transparent Diouf and Boiral (2017) conducted a study on ‘The quality of sustainability reports and impression management: A stakeholder perspective’ with the purpose of analyzing the perceptions of the quality of GRI reports held by stakeholders involved in the field of socially responsible investment (SRI)’. The study revealed that the perceptions of SRI practitioners shed more light on the elastic and uncertain application of the GRI principles in determining the quality of sustainability reports. Belal and Owen (2007) carried out a study in order to determine the views of Bangladeshi managers on the current state of, and future prospects for, social reporting in the country. This study utilizes a primary research method such as interviews to investigate disclosure practices within the context of a developing country like Bangladesh. The results of their study revealed that managers’ major motivation for social reporting practices lies in a desire on the part of corporate management to manage powerful stakeholder groups such as multinational companies. Islam (2009) conducted a broad based study on by using in-depth interview, Annual Report Content Analysis and survey methods. The study also uses the legitimacy theory, stakeholder theory and institutional theory. The study reveals that social responsibility initiative of BGMEA respond directly to the concerns of multinational buying companies and media have influence upon corporate social and environmental disclosure practices. The study also reveals that Global and local NGOs can positively use the media to effect change in the disclosure practices of the organizations. Yaftian (2011) examined CSR practices in corporate annual reports and needs of Iranian stakeholders regarding CSR information. The study used content analysis method. Questionnaires survey method was also used to investigate the CSR information needs of stakeholders. The study revealed that annual reports were perceived as the main source of CSR information, and stakeholders


believed that CSR disclosures were sufficient among the sample companies. Hossain et al. (2006) revealed that a very few companies in Bangladesh are making efforts to provide Sustainability information on a voluntary basis by using questionnaire survey and content analysis method. Teoh and Thong (1984) conducted a study based on interview questionnaire survey. The study reveals that social reporting lags behind corporate social involvement Assaduzzaman et al. (2014) conducted a study on “Corporate Environmental Reporting (CER) Practices: Empirical Evidence from Selected Non-financial Companies in Bangladesh”. The study investigated the perceptions of 40 senior accounts executives of sample companies regarding the environmental reporting practices of the listed companies in Bangladesh by using a structured questionnaire. Besides, the study used a convenience sampling process to collect primary data. The study showed that survey respondents felt strong need for environmental disclosure in the corporate annual reports.

The review of relevant literature revealed that over the past few decades a number of studies have been conducted on SR practices of the corporate organizations, majority of which have been done in the context of developed countries. But a small number of studies conducted in Bangladesh context. it is also revealed that recent SR literature emphasizes the importance of exploring the perceptions of both managerial and non-managerial stakeholder groups regarding SR. However, some studies concentrate on the perceptions of multiple stakeholder groups in this country, but there are few studies that examined non-managerial stakeholders’ perceptions of SR in Bangladesh context. As per author’s knowledge goes there is a handful studies that exploring the perceptions of multiple stakeholder groups regarding various aspects of SR of the listed manufacturing companies in Bangladesh context.

4.Research Methods4.1 Overview

The study approach is descriptive in nature, and primary data has been used in this study. The study employed questionnaire survey method in investigating the manifold perceptions of multiple stakeholder

groups regarding various aspects of SR practices of the listed manufacturing companies in Bangladesh.

4.2 Study Population

The population of this study comprises all the manufacturing companies of Cement, Tannery, Textiles and Pharmaceuticals industries which are listed on the Dhaka Stock Exchange (DSE). In addition, survey population of this research includes all the members of the key stakeholder groups of the listed manufacturing companies like Accounts Executives and Internal Auditors of sample companies, Because, their activities are closely related in preparing the financial reports of the companies. Besides, Professional Accountants (ACA/FCA) play an significant role in the verification of disclosures of listed companies, and Environmental Activists have an important role in improving the corporate environmental conditions, as well, Member of the Regulatory Bodies [top or mid-level officials of the Bangladesh Securities and Exchange Commission (BSEC), Ministry of Environment, Forest and Climate Change, the Bangladesh Bank (BB) and the National Board of Revenue (NBR)] have the influence in framing the disclosure rules in Bangladesh with which companies bound to comply. Consequently, these groups are also included in this study.

4.3 Sample Size and Sampling Techniques

Based on the purposive sampling method, five companies from each of the four selected industrial sectors (Cement, Tannery, Textiles and Pharmaceuticals) were included in this study. To achieve the advantage of an in-depth research, a total number of 85 respondents were taken from five selected stakeholder groups. Chief Financial Officer (CFO) or one Senior Accounts Executive and Head of Internal Audit or one Senior Executive (internal audit) from each of the sample companies, 20 professional accountants (ACA/FCA), 15 officials from different regulatory bodies including 2 Deputy Directors of the Directorate of Environment, 2 Deputy Secretary and one Joint Secretary of the Ministry of Environment, Forest and Climate Change, 3 Directors of the BSEC, 2 Joint Directors of Bangladesh Bank, 3 Deputy Commissioner of Taxes, one joint Commissioner of Taxes and one Additional Commissioner of Taxes of the NBR, and 10 Environmental Activists were taken into consideration. Respondents were selected on the basis of convenience of data collection.


Table: 4.1 Details of selected respondents

Strata

No.Category of Respondents

Company wise

respondents

Sample

respondents

1 Chief financial Officer (CFO)/ Senior Accounts Executive 1 20

2 Head of Internal Audit / Senior Executive (internal audit) 1 20

3

Member of the Regulatory Bodies

–15

Officials of Ministry of Environment Forest and Climate

Change (#)

Directorate of Environment (2)

BSEC (3)

Bangladesh Bank (2)

NBR (5)

4 External Auditors (ACA/FCA) - 20

5 Environmental Activists - 10

Total respondents 85

4.4 Primary Data Sources

4.4.1 Questionnaire

The present study used a structured questionnaire in exploring the perceptions of stakeholders regarding SR. The questionnaire was divided into two parts. The first part of the questionnaire contained eight demographic questions. The second part of the questionnaire proceeds with the questions on the Significance of SR practices in improving the sustainability performance of the companies. The questionnaire also included questions on the Credibility issue, needs of external audit of sustainability disclosures and sufficiency of existing Regulatory Frameworks for SR practices in Bangladesh. Most of the questions of the questionnaire were designed by using a five-point Likert Scale. and were close-ended.

4.4.2 Actual field Work and Administration of Survey Instruments

4.4.2.1 Interview Procedures

The primary data were collected through e-mail survey with a structured questionnaire. The interviews took place between mid-September, 2019 and mid-December, 2019.

4.4.3 Statistical Techniques of Analysis

Quantitative data were analyzed by using appropriate statistical techniques such as frequency, mean, standard deviation, percentage etc. through SPSS program (Version-15).

5. Data Analysis and Presentation The aim of this segment is to provide analysis on manifold perception of the survey respondents regarding SR practices of the listed manufacturing companies in Bangladesh.

5.1 Responses of the Stakeholders on Significance of SR

The purpose of this section is to introduce analysis on the perception of stakeholder regarding the significance of SR practices for listed manufacturing companies in Bangladesh in reducing their environmentally hazardous activities, as it relates to the items SQ-1 of the questionnaire. The survey respondents were requested to rank their perceptions on a 5-point Likert Scale with one representing strongly disagree and five representing strongly agree-


Table 5.1: Perceptions of Selected Stakeholder Groups Regarding the Significance of SR

Respondent Groups Descriptive Statistics

SQ-1

Mean std

Accounts Executives 4.15 1.01

Internal Auditors 4.05 .81

Professional Accountants (ACA/FCA) 3.95 .86

Member of the Regulatory Bodies 3.87 .61

Environmental Activists 4.90 .3

Total Respondents 4.06 .85

Source: Field survey, Note: std=Standard Deviation, SQ-1=Survey Questionnaire’s Item No-1,

Table 5.1 and Figure 5.1 provide analysis regarding the levels of perceptions of the respondents on significance of SR (item SQ-1 of the questionnaire). Figure 5.1 indicates that 71.47% of the total survey respondents either supported or strongly supported the concept that SR practice can play a significant role in reducing environmentally hazardous activities of the companies.

Figure 5.1: Percentage Distribution of Views of Respondents on the Role of SR in Reducing Environmentally Hazardous Activities of the Companies

Source: Field survey.

5.2 Responses of the Stakeholders on Credibility Issue and Needs of External Audit of Sustainability Disclosures

This section provides analysis with the intention of addressing the perception of stakeholders regarding credibility issue and needs of external audit of Sustainability disclosures of listed manufacturing companies as it associated to the items SQ-2 to SQ-4 in the questionnaire of our study. For the items SQ-2 and SQ-3 of the questionnaire, respondents were requested to rank their perceptions on a 5-point Likert Scale with one representing strongly disagree and five representing strongly agree-

Table 5.2: Perceptions of Stakeholder Groups Regarding the Credibility and Needs of External Audit of Sustainability Disclosures

Respondent Groups

Items of the questionnaire

SQ-2 SQ-3

Mean std Mean std

Accounts Executives 4 .89 4.49 .59

Internal Auditors 4.15 .85 4.35 .73

Professional Accountants (ACA/FCA) 4.8 .4 4.50 .76

Member of the Regulatory Bodies 4.07 .77 4.4 .49

Environmental Activists 4.8 .4 4.90 .30

All Respondents 4.32 .80 4.38 .70

Source: Field survey. Note: std =Standard Deviation, SQ-2=Survey Questionnaire’s Item No-2, SQ-3=Survey Questionnaire’s Item No-3.


Table 5.2 and Figure 5.2 provide the group comparison statistics regarding the credibility issue of sustainability disclosures of listed manufacturing companies.

Figure 5.2: Perceptions of Different Stakeholder Groups Regarding the Credibility of Sustainability Disclosures of the Listed Manufacturing Companies


Figure 5.2 indicates that Accounts Executives, Internal Auditor and Member of the Regulatory Bodies were agreed or strongly agreed with the concept with a percentage distribution score of 65%, 70% and 73% respectively, while, 80% respondents of Environmental Activists and External Auditors (ACA/FCA) groups were strongly agreed with the concept. Figure 5.2 also reveal that 81.60% of the entire survey respondents were either agreed or strongly agreed with the concept.

Figure 5.3: Perceptions of Different Stakeholder Groups Regarding the Needs of External Audit of Sustainability Disclosures of the Listed Manufacturing Companies


Figure 5.3 provides the group comparison results regarding the item SQ-3 of survey questionnaire, Figure 5.3 also reveals that 84.46% of the entire survey respondents were either agreed or strongly agreed with the concept. This result is further reflected in the mean and standard deviation values of 4.32 and 0.80 respectively (Table 5.2) These findings indicate that most of the respondents strongly believed that Sustainability disclosures of the listed manufacturing companies should be externally verified. In a similar study of Asaduzzaman et al. (2014) revealed that 90% of their interviewees were pronounced that there should be scope of external verification of environmental disclosures of Bangladeshi companies.

The respondents were then asked (item SQ-4 of the questionnaire) to choose one or more applicable auditors groups between the companies’ Financial Auditors and specialist Environmental Auditors to perform the audit activities of the Sustainability disclosures of the listed manufacturing companies. A summary of their response is provided in Table 5.3.


Table 5.3: Descriptive Statistics on Choices of Respondents Regarding Auditors Group for the Audit Activities of Sustainability Disclosures

Respondent GroupAuditors Group

Financial AuditorsEnvironmental

AuditorsBoth Financial &

Environmental AuditorsAccounts Executives 10% 60% 30%

Internal Auditors 30% 50% 10%

External Auditors (ACA/FCA) 40% 30% 30%

Member of the Regulatory

Bodies

26.67% 53.33% 20%

Environmental Activists 10% 70% 20%

All Respondents 24.70% 50.59% 22.35%Source: Field survey.

Table 5.3 reveals that 50.59% of the entire survey respondents preferred the specialist Environmental Auditors and 24.70% of the respondent chose the companies’ Financial Auditors. While 22.35% of the total respondents opined that both Financial and Environmental auditors should perform the audit activities of Sustainability disclosures.

Figure 5.4: Percentage Distribution of Choices of Different Respondent Groups Regarding Auditors type for the Audit Activities of Sustainability Disclosures


As well, Figure 5.4 shows the group comparison result which revealed that most of our survey participants considered Environmental Auditors as necessarily relevant in establishing ideal SR practices among the listed manufacturing companies in Bangladesh. This finding is consistent with the recommendation of International Organization for Standardization (ISO, 2004).

5.3 Perceptions of Respondents on SR Related Regulatory frameworks in Bangladesh.

This section provides analysis on the perceptions of stakeholders concerning the regulatory frameworks of the listed manufacturing companies in Bangladesh.

Table 5.4 and Figure-5.5 present the descriptive statistics for the responses of the survey participants on items SQ-5 of the questionnaire which is related to the rules and regulations of SR in Bangladesh.


Table 5.4: Descriptive Statistics of Perceptions of Respondents Regarding SR Related Regulatory Frameworks in Bangladesh

Respondent Groups

Descriptive Statistics

SQ-5

Mean std

Accounts Executives 4.35 .79

Internal Auditors 4.05 .80

Professional Accountants (CA) 4.15 .85

Member of the Regulatory Bodies 4 .52

Environmental Activists 4.90 .3

Total Respondents 4.14 .78

Source: Field survey. Note: std=Standard Deviation, SQ-5=Survey Questionnaire’s Item No-5,

Figure 5.5: Perceptions of Stakeholders Regarding the Mandatory Regulatory Requirements for SR in Bangladesh.


Table 5.4 and Figure 5.5 revealed that 80% of the survey participants were either agreed or strongly agreed with the concept that SR should be a mandatory task for the listed manufacturing companies in Bangladesh.

As well, Figure 5.6 further provide the group comparison result which indicated that 80% respondents of Accounts Executives group, 70% of Internal Auditors group, 70% of External Auditors group, 86.45% of Member of the Regulatory Bodies and 100% respondents of Environmental Activists group were either agreed or strongly agreed with the idea that SR should be a mandatory task for the listed manufacturing companies in Bangladesh.

Figure: 5.6 Perceptions of Selected Stakeholder Groups Regarding the Mandatory Legal Requirements for SR in Bangladesh.



These findings indicate strong consensus among survey participants regarding mandatory legal requirements for SR in Bangladesh. Similar views were explored in the study of Asaduzzaman et al. (2014) which indicated that the main reason for not disclosing Sustainability information is the absence of mandatory legal requirements in Bangladesh. In this regard, a study of Ahmed and Ishwerf (2013) concluded that the prevailing managerial attitude is: ‘we will only comply if we are legally bound to do so’.

6. ConclusionsSustainability reporting has become increasingly relevant to the enterprise and in the development process for ensuring Sustainable development. Because, many development activities, specially manufacturing activities gradually increase environmental hazards. Therefore, perceptions of stakeholders regarding the reporting practices is considerable. Accordingly, with the purpose of exploring the manifold perceptions of five selected managerial and non-managerial stakeholder groups concerning the various aspects of the reporting practices of the listed manufacturing companies in Bangladesh, present study employed e-mail survey method with the help of a structured questionnaire. The findings show that most of the selected stakeholders considered SR as a substantial tool for reducing environmentally hazardous activities. Stakeholders also thought that external audit is essential for confirming credibility of sustainability disclosures and they want to see the SR practices as a mandatory task for the listed manufacturing companies in Bangladesh. These results have significant regulatory implications, because 55% of the total respondents have the membership with one or more professional accounting bodies like ICAB and ICMAB. Thus, the findings of this study have specific academic, regulatory and managerial implications. Based on the empirical findings on perceptions of stakeholders on credibility issue of sustainability disclosure, this study demands that ICAB, ICMAB and other relevant regulatory bodies should develop necessary guidelines or Auditing Standards for external verification of sustainability information as well take proper initiatives to encourage the listed companies to adopt the culture of environmental audit in order to enhance transparency of their sustainability performance and disclosures. Besides, Regulatory Bodies should emphasize on proper enforcement

of existing sustainability reporting related rules and regulations. Because, in absence of an effective law enforcement mechanism there is no guarantee that legal requirements will necessarily lead for compliance. However, due to time and resources constraints, only 85 respondents from five stakeholder groups were included in this study. The selected stakeholder groups were slightly different in sample sizes; a more similar sample size among the selected stakeholder groups would be preferred. Moreover, the study did not include the shareholders, consumers and commercial bankers in the list of selected stakeholder groups. Consequently, the researcher calls for future research to initiate similar survey so that a better informed picture of stakeholders’ perceptions on SR can be sketched by inclusion of shareholders, consumers and commercial bankers in the list of stakeholder groups. In this regard, stakeholder groups should be similar in size and the number of respondents should be increased. The researcher believed that such study may expand the knowledge concerning the views of stakeholders on sustainability reporting practices in Bangladesh.

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Appendix-A

Sample of Research Questionnaire

Dear Respondent,

I am a member of BCS (General Education) Cadre and presently

working as an Assistant Professor (Accounting) at the Mymensingh

Government College, Mymensingh. The title of my proposed research

is “Stakeholders’ Perception towards Sustainability Reporting

Practices: Evidence from Bangladesh”. The purpose of this study

is to explore the perception of the stakeholders regarding the various

aspects of Sustainability Reporting practices in Bangladesh. For

conducting the study, your cordial help is necessary. It is assured that

all the data supplied shall be used solely for the purpose of academic

research and will be treated with utmost confidentiality.

Sincerely yours

Dr. Mohammed Fazlur Rahman Khan

Assistant Professor (Accounting)

Mymensingh Govrnment College, Mymensingh,

Mobile:01745990946

E-mail: [email protected]

Section A: General Information

1. Name of the respondent:

2. Name of the organization:

3. Designation and department:

4. Number of working years with the current organization: : 1-5yrs /

5- 10yrs /10yrs and above


https://www.dsebd.org/pdf/DSE%20GRI%20Guidance%20Document%20Final.pdf

https://www.dsebd.org/pdf/DSE%20GRI%20Guidance%20Document%20Final.pdf

https://doi.org/10.1108/IJOES-05-2017-0071

http://ro.uow.edu.au/cgi/viewcontent.cgi?article=4239&context%20=theses

http://ro.uow.edu.au/cgi/viewcontent.cgi?article=4239&context%20=theses

http://digirep.rhul.ac.uk/file/9856f79c-55ec-ff02-3526....79e02/6/re_submit.pdf



5. No. of working years in the current role: 1-2yrs / 3-5yrs / 5- 10yrs /10years and above

6. Highest qualification: Secondary / Graduation / Masters / Others.

7. Field of study (for Bachelor Degree): Business Studies / Social science / Science / Others

8. Membership of Professional Accounting Bodies (if any): ICAB / ACCA / ICMAB / Others / No

Date of interview:

Data Collection Period: 2019

Section B

Significance of SR practices of the organizations

SQ-1. “SR practice can play a significant role in reducing environmentally hazardous activities of the listed manufacturing companies in Bangladesh.”

-to what extent do you agree or disagree to this statement?

[Please tick on the answer that applies.]

a) Strongly disagree b) Disagree c) Neutral d) Agree e) Strongly agree.

Credibility issue and needs of external audits

SQ-2. “Sustainability disclosures of the listed manufacturing companies in Bangladesh do not reflect the real Sustainability performance of the

companies”-to what extent do you agree or disagree to this statement?



SQ-3. “Sustainability disclosures which are published by listed manufacturing companies in Bangladesh should be externally verified”-to what extent

do you agree or disagree to this statement?



SQ-4. Which kind of auditor do you prefer to perform the audit activities of Sustainability Disclosures of the listed manufacturing companies in

Bangladesh?


a) The company’s financial auditors.

b) Specialist Environmental auditors.

c) Both financial and Environmental auditors.

Regulatory frameworks for SR in Bangladesh.

SQ-5. “SR should be a mandatory task for the listed manufacturing companies in Bangladesh.”-to what extent do you agree or disagree to this

statement?


a) Strongly disagree, b) Disagree c) Neutral d) Agree e) Strongly agree


Abstract

Tourism is a fast growing and multidimensional industry and it becomes an increasingly important sector in Bangladesh. The main intent of this study is to examine the effect of marketing mix (7Ps) elements on tourist’s satisfaction. The data of this paper were collected by using structured questionnaire from sample of 50 people from Cumilla district of Bangladesh. Data were analyzed with the help of software SPSS-22 version by using the statistical techniques correlation and regression. The findings of the study showed that five out of seven marketing mix elements were positively related to tourist’s satisfaction but the promotional activities and tourism process of Cumilla were not satisfactory to the tourist’s. So some recommendations have been given for future improvement and to position this place in the heart of tourist’s destination.

Key words: Tourists’ Satisfaction, Marketing Mix, 7Ps’,Cumilla, Bangladesh.

IntroductionThe role of tourism in earning revenues from home and abroad has long been recognized in many developing countries like Bangladesh.But, Tourism requires to attract tourists by providing marketing services and facilities. It is primary duty for any business to satisfy its customer according to their needs (Parasuraman, Berry &Zeithaml,

The Effect of Marketing Mix (7Ps’) on Tourists’ Satisfaction: A Study on Cumilla

Md. Moynul HasanAssistant ProfessorDepartment of Marketing,Comilla University,Salmanpur, Kotbari, Cumilla, BangladeshEmail: [email protected]

Mohammad Fakhrul Islam Assistant Professor

Department of Business Administration Stamford University Bangladesh

Dhaka, Bangladesh.Email: [email protected]


mailto:[email protected]

1990; Peterson & Wilson, 1992). Consumer satisfaction is particularly important to service industry like tourism (Matear, Osbourne, Garret & Gray, 2002; Oliver, 1994; Otto & Brent Richie, 1996; Pearce &Moscardo, 1998; Sparks, 2000) as there is a strong relationship between consumer satisfaction and service profitability (Bolton & Drew, 1994; Hill, 1996).Tourists’ Satisfaction regarding of any destination is largely affected by the marketing activities of that place and tourism marketing depends on successful implementation of strategies for each marketing mix elements.

The relationship between marketing mix and customer satisfaction is highly expressed among researchers (Zineldin&Philipson, 2007; Mohammed et al. 2012; Cengiz&Yayla, 2007; Wang et al., 2012 and Semeer, 2009). Rafiq and Ahmad (1995) suggested to use 7Ps framework as the extention to the 4Ps framework. The 7Psof marketing mix have been considered to have a significant impact on marketing for the sectors that are engaging with service to customers (Borden, 1984; Addmour and Ayish, 2005).

Cumilla is one of the ancient city and a palace with lots of tourist attractions. But, perhaps it fails to attract tourist, more specifically repeat tourist due to lack of satisfaction of tourists. So, this study aims to improve and develop the sector of tourism of Cumilla and raise its profile. From this approach, this study came to identify the extent of satisfaction of the tourists coming to Cumilla on tourism marketing mix (7Ps) elements,and the effect on tourism in Cumilla.

Major Tourist Attractions in CumillaThere are lots of tourist attractions found in Cumilla. These are almost 10% of all tourist attractions listed in Chittagong Division. Cumilla District is a district of Bangladesh located about 100 kilometers south east of capital city Dhaka. Within Cumilla there are many attractions like historical places, natural beauty, innovative food, clothing and hand crafted products those can attract a huge number of people about this place.The major types of tourist attractions listed in Cumilla.

Archeological heritage, Historical places &landmarks

Muras Mosques and temples Others

• Shalban Bihar

• Mainimati Ruins

• HatiabhangaFort (Daudkandi)

• PashchimgaonNawab Bari

(KurshedMunzi)

• Palace of king Bhoj

• Rani Kuthir

• Maynamati War Cemetery

• Ramnagar Elongated Math

• Hasnabad Math

• Harimangal Math

• Ranir Banglar Pahar

• Mainamati Museum

• Dharmasagar

• Palace of Maynamoti Rani

• Ananda Bazar Palace

• Rupban Mura

• Itakhola Mura

• Satera Ratna Mura

• Charendra Mura

• Kotila Mura

• Shah Shuja Mosque

• Chandi Mura Temple

• Jagannath Dev temple

• GonaigharBaitulAzgar

Sat GombojJame Masjid

• Shaitsala Jami Mosque

• Bangladesh Academy for

Rural Development(BARD)

• Bank of Gomti

• Dharmasagar

• Panch Pir Majar

• Magic Paradise Park

(Amusement park)

• Birchandra Public Library

and Auditorium

• Rosh Malai of MatriBhandar

• Khadi

Cumilla is flourished with many tourism places if it would be possible to understand the condition and effect of each marketing mix element to the tourists’ satisfaction then it would be possible to increase the number of visitors or tourists in Cumilla.


https://www.touristplaces.com.bd/comilla/landmarks/

https://www.touristplaces.com.bd/comilla/shalban-bihar/

https://www.touristplaces.com.bd/comilla/pashchimgaon-nawab-barikurshed-munzil/

https://www.touristplaces.com.bd/comilla/pashchimgaon-nawab-barikurshed-munzil/

https://www.alonelytraveler.com/palace-king-bhoj-comilla/

https://www.touristplaces.com.bd/comilla/rani-kuthir/

https://www.touristplaces.com.bd/comilla/maynamati-war-cemetery/

https://www.touristplaces.com.bd/comilla/mainamati-museum/

https://www.touristplaces.com.bd/comilla/dharmasagar/

https://www.alonelytraveler.com/palace-moynamoti-rani-comilla/

https://www.alonelytraveler.com/rupban-mura-comilla/

https://www.alonelytraveler.com/itakhola-mura-comilla/

https://www.touristplaces.com.bd/comilla/shah-shuja-mosque/

https://www.alonelytraveler.com/jagannath-temple-comilla/

https://www.touristplaces.com.bd/comilla/gonaighar-baitul-azgar-sat-gomboj-jame-masjid/

https://www.touristplaces.com.bd/comilla/gonaighar-baitul-azgar-sat-gomboj-jame-masjid/

https://www.alonelytraveler.com/bard-comilla/

https://www.alonelytraveler.com/bard-comilla/

https://www.alonelytraveler.com/river-gomti-comilla/

https://www.alonelytraveler.com/rosh-malai-matri-bhandar-comilla/

Literature reviewMarketing mix is the variables to be monitored by the company to satisfy the groups targeted (Cannon, et al, 2008). Marketing mix consists of all the things that a company can do to influence the demand for its products (Kotler and Armstrong, 2008). Kotler, Philip (2007) considered four P’s as marketing mix which has significant impact on marketing for tourism services. These marketing mix elements are Product, Price, Place and Promotion. In case of service organization and industry, he added extra three P’s. These are: people, physical evidence and process. In this research, these seven P’s considered as tourism marketing mix (Morrison, 1996) elements which are highlighted below:

3.1.1. Product

Kotler and Armstrong (2006)says a product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need. As for services, according to Verma and Singh (2017) as cited in Išoraitė (2016) defined product “as a physical product or service to the consumer for which consumer is willing to pay”. In the study, Ljiljana Stanković and Suzana Đukić (2009) examined tourist destination management and found that innovative and well co-coordinated tourism products is exceedingly important for tourism regions and satisfaction of tourists. Therefore, the study may propose a hypothesis-

H1: Product has positive effects on Tourists’ Satisfaction.

3.1.2. Price

Kotler and Armstrong (2007) said, price is the amount of money customers have to pay to obtain the product. Išoraitė (2016) argued that “price is perceived as the only element of the marketing mix, generating revenue and the most important customer satisfaction and loyalty factor”. So, the study may propose a hypothesis-

H2: Price has positive effects on Tourists’ Satisfaction.

3.1.3. Place

According to Kotler (2007) the place (distribution) in tourism is providing a guideline about different tourist spot. It also provide the appropriate tour time and

distances from various spot, give ideas of different travel routes, selecting attractions and support facilities along different travel routes, and informing potential tourists’(customers) about alternative travel routes. Inconvenience location or palace for the customers lead to dissatisfaction among the customers which further influence the organization in negative way (Niharika, 2015). This statement is also supported by the previous researches (Kadhim et al., 2016; Bawa et al., 2013; Alipour et al., 2018; Wahab et al., 2016). So, the study may propose a hypothesis-

H3: Place has positive effects on Tourists’ Satisfaction.

3.1.4. Promotion

Promotion is an activity that highlights the products or services to customers (Nuseir & Madanat, 2015).Marketing communication mix (Promotion mix) consists of the specific blend of advertising, personal selling, sales promotion, public relations and direct marketing tools that the company uses to pursue its advertising and marketing objective (Kotler 2007).The previous studies also show the linkage between promotion and customer satisfaction (Bawa et al., 2013; Kadhim et al., 2016; Wahab et al., 2016; Verma and Singh, 2017; Alipour et al., 2018). Therefore, the study may propose a hypothesis-

H4: Promotion has positive effects on Tourists’ Satisfaction.

3.1.5. People

According to Kotler (2007), the focal point in the hospitality sector is people’s behavior, quality control, and personal selling. Zeithaml et al. (2006) identified that people are the key stakeholders such as customer, another customer, firm’s personnel who actively involved in buying and selling of tourism product. Reid and Bojanic, (2010) narrate in their study, the attitude, skill, and appearance of personnel is important of to ensure overall satisfaction (Amin & Islam, 2017). Therefore, the study may propose a hypothesis-

H5: People have positive effects on Tourists’ Satisfaction.

3.1.6. Process

According to Kannan, Srinivasan (2009) the process in Tourism include, (a) trip planning and anticipation, (b) travel to the site/area, (c) recollection, (d) trip


planning packages. Well designed processes make services convenient to the tourists (Rodriguez, 2013).This enhances the tourist’s confidence and satisfaction largely. So, therefore, the study may propose a hypothesis-

H6: Processes have positive effects on Tourists’ Satisfaction.

3.1.7. Physical evidence

According to Kannan, Srinivasan (2009) in tourism the physical evidence is basically depends on travel experience, stay and comfort. Physical Evidence is that which can be easily associated with the product by the customer. As the tourism product is highly intangible, the place, the decor, the people, and everything else in the tourism office may be related to the experience in store. For example, when tourists visit a historic place for the first time, they carry home not only the memories of beautiful structure, but they also remember all other factors like transport facilities available, the surrounding markets, the people’s behavior, etc. as one whole experience. Sarker, Wang Aimin, Sumayya Begum (2012) found the positive relationship between physical evidence and satisfaction of tourist’s. Therefore, the study may propose a hypothesis-

H7: Physical evidence has positive effects on Tourists’ Satisfaction.

3.1.8. Tourists’ satisfaction

Khadka and Maharjan (2017) pointed out that customer satisfaction is dynamic and relative. In tourism, satisfaction is a tourist’s emotional state of mind after an experience. Oliver (1997) suggested that customer satisfaction is a fulfillment of response from tourist satisfaction on overall experience with the given destination.Customer satisfaction plays a significant role in the survival and growth of tourism product and services (Gursoy et al., 2003; Mawa, 2018).

3.1.9. Relationship between marketing mix elements and tourists’ satisfaction

Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of values with each other (Kotler, 2005).

Yelkur (2000) found that the critical elements in the services marketing mix influence and positively effects customer satisfaction. Therefore the result of our study supported the argument that there is a positive correlation between marketing mix and customer satisfaction.In the study of Al Muala & Al Qurneh (2012) showed that products had a significant effect on tourist satisfactions, while prices, people and processes had no significant effect on tourist satisfactions. On the other hand,the results of the study by Megatef (2015) concluded that all elements of the marketing mix had a very strong effect on tourist satisfactions.The findings of the studies conducted by Rasyid et.al. (2017), Teviana et.al (2017) and Ismail et.al (2015) were also exhibited that marketing mix had an effect on tourist satisfactions.Muhammad et al. (2018) conducted a study to reveal the relationship between marketing mix and tourist’s satisfaction. The results showed that the marketing mix had a positive and significant effect on tourist’s satisfaction.

Objectives of the StudyThe main objective of the study is to investigate the impact of marketing mix elements on tourist satisfaction. Besides that, the study also attempts to address the associated problems and possible solutions regarding the tourism of cumilla.

MethodologyDescriptive research has been conducted for this study.Data have been collected from primary sources by using the personal interview with using close ended questionnaire. Five point Likert scale has used to construct questions where each statement stands for:1= Very dissatisfied,2= Somewhat dissatisfied,3= Neither satisfied or dissatisfied,4= Somewhat satisfied,5= Very satisfied.50 respondents of tourists to Cumilla were surveyed through convenience sampling method. Descriptive statistics, Pearson Correlation and Regression analysis were employed to analyze thecollected data from the survey.

Proposed Model & Hypotheses

In this study, there are 7 independent variables (7 Ps) and single dependent variable (Tourists’ satisfaction) have identified. Based on the previous literatures and discussions, the following theoretical framework and


research hypotheses have been developed.

Figure 1: The conceptual framework of the research

To know about the effect of tourism marketing mix elements on overall tourists’ satisfaction, the following equation has been used:

Y=α + β1X1 + β2X2+ β3X3+ β4X4+ β5X5+ β6X6+ β6X7

Where,

Y= Tourists’ satisfaction, α =constant, X1=Product, X2=price, X3= place, X4= promotion, X5=people, X6=process and X7=physical evidence.

To achieve the objectives of the study mentioned in the previous section, the following hypotheses (based on literature review) are tested:

H1

H2

H3

H4

H5

H6

H7

Figure 2: Hypotheses of the study

Analysis and DiscussionBackground of Respondents

The following table shows the demographic characteristics of the respondents.Out of 50 respondents’ majority of the respondents (54 percent) are male, where as 46 percent are female. Highest number of respondents are Service holder (34 percent),24 percent respondents are Business person, 20 percent are students and 22 percent are others. Majority of the respondents are about the age of 22 years to 29 years and the table also reveals that majority of the respondents are from Cumilla (54 percent) and 46 percent respondents are from other districts.

7Ps: Independent Variables

Product

Price

Place

Promotion

People

Physical evidence

Process

Dependent Variable

Tourists’ satisfaction

Product

Price

Place Tourists’SatisfactionPromotion

People

Process

Physical evidence


Table 1: Demographic Characteristics of the Respondents

Frequency Percentage

Gender

Male 27 54.0

Female 23 46.0

Total 50 100.0

Occupation

Student 10 20.0

Service Holder 17 34.0

Business Person 12 24.0

Others 11 22.0

Total 50 100.0

Age Group

16-21 13 26.0

22-29 25 50.0

30-35 3 6.0

35-41 9 18.0

Total 50 100.0

Region of Respondents

Cumilla 27 54.0

Other district 23 46.0

Total 50 100.0

Descriptive statistics of the variables

According to mean score (Discussed by ranked of mean scores), Mean value of satisfaction level of product is 4.28, which lies in satisfied category & the standard deviation are 0.49652. Mean score for physical evidence is 3.6800, which lies in somewhat satisfied category of respondent response & the standard deviation is 0.47121. Mean value for price is 3.6400, which lies in somewhat satisfied & the standard deviation are 0.52528. Promotion’s mean value is 2.9000 & the standard deviation is 0.88641. Satisfaction level on place lies in neither satisfied nor dissatisfied category nor here the mean value is 2.6200 & the standard deviation is 0.60238. Again the mean value is 1.8800 for process & the standard deviation is 0.59385. And finally, the mean value of people is 1.7600, which lies in somewhat dissatisfied category of customer response & the standard deviation are 0.47638.

Table 2: Descriptive statistics

Individual Items Mean Std. Deviation

Satisfaction level on Product 4.2800 .49652

Satisfaction level on Physical evidence 3.6800 .47121

Satisfaction level on Price 3.6400 .52528

Satisfaction level on Promotion 2.9000 .88641

Satisfaction level on Place 2.6200 .60238

Satisfaction level on Process 1.8800 .59385

Satisfaction level on People 1.7600 .47638

Regression Analysis

Using variables from the questionnaire a regression analysis have been conducted on the basis of feedback from respondents. Here “Tourists’ satisfaction” has been used as the dependent variable and the other constructs


(Product, price, place, promotion, people, process, physical evidence) have been considered to be the independent variables. The purpose of the regression analysis is to measure the effect of the independent variables on the dependent variable. Now, we can assess the impact of each independent variables (Product, price, place, promotion, people, process, physical evidence) on dependent variable (Tourist’s satisfaction) by testing the assumed hypotheses.

Product: There is a significant correlation exists between product and tourists’ satisfaction. Inthe table given below we can see thecorrelation coefficient is .546** and the significance level is less than .01 which is the standard of Pearson’s correlation method. That means, variety of tourism products of Cumilla is significantly affect tourists’ satisfaction (Appendix-A). For product in the coefficient table the calculated vale of t=2.799 at significance level .008 which is significant at the level of 0.05 and the critical value of t=1.6766 (Appendix-B) is the evident of significant positive relationship between independent and dependent variable. There for with the basis of this result it can be inferred with confidence that the alternative hypothesis is accepted.So, Product and Tourist Satisfaction are positively related to each other.

Price: There is a significant correlation exists between price and tourists’ satisfaction. Inthe table given below we can see the correlation coefficient is .560** and the significance level is less than .01 which is the standard of Pearson’s correlation method. That means expenses connected to visit different places of Cumilla is significantly affect tourists’ satisfaction (Appendix-A). For price in the coefficient table the calculated vale of t= 2.478at significance level .017 which is significant at the level of 0.05 and the critical value of t=1.6766 (Appendix-B) is the evident of significant positive relationship between independent and dependent variable. Therefore with the basis of this result it can be inferred with confidence thatthe alternative hypothesis. So Price and Tourist Satisfaction are positively related to each other.

Place: There is a significant correlation exists between place and tourists’ satisfaction. In the table given below we can see the correlation coefficient is .484** and the significance level is less than .01 which is the

standard of Pearson’s correlation method.That means guide line available to visit different places of Cumilla is significantly affect tourists’ satisfaction(Appendix-A). For place in the coefficient table the calculated vale of t= 2.187 at significance level .034 which is significant at the level of 0.05.and the critical value of t=1.6766 (Appendix-B) is the evident of significant positive relationship between independent and dependent variable. Therefore with the basis of this result it can be inferred with confidence that the alternative hypothesis is accepted.So Place and Tourist Satisfaction are positively related to each other.

Promotion: There is a significant correlation exists between promotion and tourists’ satisfaction. In the table given below we can see the correlation coefficient is .472** and the significance level is .01 which is the standard of Pearson’s correlation method. That means promotional activities significantly affect tourists’ satisfaction (Appendix-A). For place in the coefficient table the calculated vale of t= .932at significance level .356 which is significant at the level of 0.05.and the critical value of t=1.6766 (Appendix-B) is the evident of significant relationship between independent and dependent variable but the relationship is not positive. Therefore with the basis of this result it can be inferred with confidence that the alternative hypothesis is rejected. So Promotion and Tourist’s Satisfaction are not positively related to each other.

People: There is a significant correlation exists between people and tourists’ satisfaction. In the table given below we can see thecorrelation coefficient is .473** and the significance level is .01 which is the standard of Pearson’s correlation method.That means hospitality from different people of this destination is significantly affect tourists’ satisfaction(Appendix-A). For people in the coefficient table the calculated vale of t=2.668 at significance level .011 which is significant at the level of 0.05 and the critical value of t=1.6766 (Appendix-B) is the evident of significant positive relationship between independent and dependent variable. Therefore with the basis of this result it can be inferred with confidence thatthe alternative hypothesis is accepted. So People and Tourist Satisfaction are positively related to each other.

Process: There is a significant correlation exists between process and tourists’ satisfaction. In the table


given below we can see the correlation coefficient is .457** and the significance level is.01 which is the standard of Pearson’s correlation method.That means tourism process of Cumilla is significantly affects tourist’s satisfaction (Appendix-A). For process in the coefficient table the calculated vale of t=1.734 at significance level of .090 which is significant at the level of 0.05 and the critical value of t=1.6766 (Appendix-B) is the evident of significant relationship between independent and dependent variable but the relationship is not positive. Therefore with the basis of this result it can be inferred with confidence that the alternative hypothesis is rejected.So Process and Tourist’s Satisfaction are not positively related to each other.

Physical evidence: There is a significant correlation exists between physical evidence and tourists’ satisfaction. In the table given below we can see the correlation coefficient is .514** and the significance level is less than .01 which is the standard of Pearson’s correlation method.That means physical evidence of Cumilla is significantly affects tourists’ satisfaction(Appendix-A). For physical evidence in the coefficient table the calculated vale of t=2.357at significance level.023 which is significant at the level of 0.05.and the critical value of t=1.6766 (Appendix-B) is the evident of significant positive relationship between independent and dependent variable. Therefore with the basis of this result it can be inferred with confidence that the alternative hypothesis is accepted.So, physical evidence has positive effects on tourist’s satisfaction.

Major FindingsThe finding of this study (Regression analysis) indicates that the product, price, place, promotion, people, process, physical evidence has significant effect on tourist’s satisfaction. But all the elements don’t have positive effect on satisfaction according to linear regression tourists became satisfied by experiencing the quality, price, place, people and physical evidence of Cumilla (As accepting the alternative hypotheses of H1, H2,H3,H5 & H7) but they are not satisfied with the promotional activities and delivery process of tourism products (As rejecting the alternative hypotheses of H4 & H6). Most of the respondents are dissatisfied about promotional activities and tourism process of Cumilla.

Table 3: Decision of Hypothesis testing

Independent Variable(s)

Dependent Variable

Significance Level

(P Value)

Hypothesis Result of Hypothesis

Product Tourists’ Satisfaction

.008 H1 Accept

Price Tourists’ Satisfaction

.017 H2 Accept

Place Tourists’ Satisfaction

.034 H3 Accept

Promotion Tourists’ Satisfaction

.356 H4 Reject

People Tourists’ Satisfaction

.011 H5 Accept

Process Tourists’ Satisfaction

.090 H6 Reject

Physical Evidence

Tourists’ Satisfaction

.023 H7 Accept

RecommendationsAccording to most of the visitors there are many tourism attractions in Cumilla. Visiting different places of Cumilla is not very expensive and not very difficult but the tourism authority of Cumilla has to increase facilities to give


tourists proper guideline about different places. The promotional activities in Cumilla are very poor. The people of Cumilla are sincere to the tourists but still, there are needed to have professional tour guides at tourism spots. In addition to that, the tourism process of Cumilla is needed to be redesigned. Physical evidences connected to visit places means transportation, accommodation, food and shopping facilities are quite good though still there is option to improve a bit.These are the things that the tour operators and concern authorities of government can do to achieve Tourists’ satisfaction.

ConclusionTourism industry can be a handy tool of alleviating poverty and improve the standard of living by maximizing the satisfaction of tourist in any region (Tooman, 1997; Emaad, 2007). For the growth of the tourists ’satisfaction, satisfaction with all marketing mix elements is very important. Though Cumilla is enriched with tourism elements like historical places, archeological sites, natural beauty, the promotional activities of Cumilla is very poor and most of the respondents are dissatisfied with the tourism delivery process of this destination. That’s why this destination is failed to attract the visitors after having a good amount of tourism elements.At present, the tourist satisfaction with Cumilla is ‘somewhat dissatisfied’; it can be upgraded to the next ‘high’ level if proper management with respect to promotional activities and tour operation process are applied. Similarly, it can be expected that in the other areas of tourism- such as restaurant, transportation, recreation and amusement – if adequate care is taken especially with respect to service quality, the growth in the tourism industry of Cumilla would simply be a matter of time. Based on the results of the study showed that except two (Promotion and process) had a positive and significant effect on tourist’s satisfaction in Cumilla. Therefore, if the better implementation of these two marketing mix, it will increase tourists satisfaction and eventually that will bring a positive synergy for economic and social development of Cumilla.

Research limitationsResearch has conducted in only one district in Bangladesh and sample size is small. So the result may vary in wide range. Future studies should consider

these limitations and take other mediators role in tourist satisfaction. As it was confined with specific district’s tourism, so it may not generalize to rest of the country.

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Appendix:A: Correlation Analysis

7 P’s Pearson Correlation with Tourists’ Satisfaction

Product Correlation .546

Sig. (2-tailed) .000

Price Correlation .560


Place Correlation .484


Promotion Correlation .472


People Correlation .473


Process Correlation .457


Physical evidence Correlation .514


B: Regression Analysis

Model SummaryModel R R Square Adjusted R Square Std. Error of the Esti-

mate

1 .845a .714 .666 .40875

a. Predictors: (Constant), physical evidence, place, people, process, product, promotion, price

ANOVAModel Sum of Squares df Mean Square F Sig.

1 Regression

Residual

Total

17.483 7 2.498 14.949 .000a

7.017 42 .167

24.500 49

a. Predictors: (Constant), Physical evidence, Place, People, Process, Product, Promotion, Price b. Dependent Variable: tourists’ satisfaction

Coefficients

Model Unstandardized Coefficients Standardized Coefficients

t Sig.B Std. Error Beta

1 (Constant) -2.857 .654 -4.367 .000

Product .364 .130 .256 2.799 .008

Price .329 .133 .245 2.478 .017

Place .231 .106 .197 2.187 .034

promotion .073 .078 .092 .932 .356

People .360 .135 .243 2.668 .011

Process .188 .109 .158 1.734 .090

Physical Evidence .324 .137 .216 2.357 .023

a. Dependent Variable: tourists’


AbstractThis main purpose of this case study is to examine beneficiary accountability practice of an NGO in the context of an emerging economy like Bangladesh. Based on the Social Capital Theory, this study considers the case of Ain O Shalish Kendra (ASK), a women-empowerment based advocacy NGO for assessing its beneficiary accountability practices. Findings showed that the intensity of dealings and the level of intimacy between the representatives of NGOs and the beneficiaries influence the accountability system of ASK. The study also found that the discharge of beneficiary accountability is a nonprocedural practice of setting beneficiaries as the central focus of NGOs’ programs. The study makes a theoretical contribution to social literature and also addresses Inkpen and Tsang (2005)’s call for research to examine effects of interactions among the three dimensions of social capital, specifically within the context of NGO accountability. Moreover, various parties related to NGOs may be benefited from this study as it gives empirical evidence of the mechanism, barriers and consequences of discharging beneficiary accountability.

Keywords: Accountability, NGO Accountability, Beneficiary Accountability, Social Capital.

IntroductionNon-governmental organizations (NGOs) are operating in most of the emerging and developed nations of the world. Their role in stimulating development through supporting governments and assisting the private sector has become prevalent everywhere (Banks et al., 2015; McKague et al., 2015). Kaldor et al. (2003a) argues that the decrease in government functions in some specific areas and the limitations of the government to reach all corners played significant roles behind the rise of NGO activities. Besides, extended globalization

Beneficiary Accountability of NGOs: A Case Study on a Women Empowerment

Based Advocacy NGO

Muhammad Easin Ibne MassudAssistant Professor of Accounting Govt. Ashek Mahmud College, Jamalpur

Alima Aktar, PhDAssistant Professor of HRM

School of Business and EconomicsNorth South University


and weakened local political ability also fuelled the process. Lawrence and Nezhad (2009) argue that due to the mounting significance of NGOs in international development arena transparency and accountability are becoming gradually more important issues.Some highly publicized scandals in the last couple of decades raised concern about NGOs’ accountability though this was associated with a fast growth in this sector around the world (Gibelman and Gelemen, 2001).Unlike much coverage of the quantitative issues like number and sizes of NGOs, the qualitative issues like service quality and accountability have got less importance and attention in the existing literatures (Lawrence and Nezhad, 2009).

With the growing scale and scope of NGOs all over the world, an affiliated intensification in debate related to NGO operations, accountability and performance has been observed (Murtaza 2012; Gauri and Galef 2005). Specifically, the downward accountabilities of the NGOs which is the accountability towards the service recipients is questioned due to the NGOs’ inclination towards meeting the unnecessary upward accountabilities to external donors and to the regulators (Davies 1997). Moreover, the growing domination of accountability to donors and regulators at the cost of accountability to wider stakeholder groups, specifically the recipients of services, has distorted the accountability priorities of NGOs (Ebrahim, 2005; Bladescu et al., 2005; O’Dwyer and Unerman, 2007). However, Galina (2019) cautioned that excessive focus on accountability to downward stakeholders may make some specific NGOs like advocacy NGOs as service organization to a specific population. This will make problems to the NGOs working for curbing human rights violation without targeting any specific group of people.

The thorough examination of the available literature on the NGO sector, as is done in the second chapter of this paper, reveals that this sector should not concentrate its accountability discharging only to upward stakeholders like donors and regulators at the expense of discharging accountability to theless powerful beneficiaries. During the past two decades there has been a substantial discussion to find out a way about how the NGOs can be made more accountable to the beneficiaries. The NGOs, over the stated time, has been a major focus of discussion and endeavors to get an accountability that is impartial

between the dominating and weak stakeholders. This extra focus on how to attain unbiased accountability has undermined to find out why imbalances in accountability exists and to find out whether there are any structural barriers that hinder improvement in beneficiary accountability. Remarkably, the existing literatures do not investigate the basic accountability problem of NGO sector: that is, as the beneficiaries do not fund the NGOs, they do not have the power and authority for demanding accountability. These just suggest that the NGOs are simply required to try to frame policies and principles for putting downward accountability into practice. This issue makes it hard to achieve downward accountability. Moreover, the literatures are also insufficient at describing the actual attempts by NGOs to improve the balance of the accountabilities. This research, thus, conducts a thorough study of one NGO’s endeavor to practice beneficiary accountability to contribute to fill the gap in literature. In addition to analysing the practice, this study also intends to explore the theoretical and structural limitations of NGO’s accountability towards the downward stakeholders.

The literature gap, as is briefly summarised above, requires an empirical investigation of attempts for enhancing beneficiary accountability, drawing on the concepts and theories from wider accountability literature on NGO sector. In this framework, my main research question is: how does a women empowerment based advocacy NGO discharge accountability to their intended beneficiaries?

This paper progresses through the lens of social capital theory. Though ‘social capital’ has been vastly used across various disciplines, yet there is no widely accepted definition of this (Adler and Kwon, 2002). However, in general, social capital has been conceptualized as an asset that comes out from a combination of networks, connections and norms that enables collective work among individuals or communities for ensuring benefits by value creation process (Granovetter, 1992; Leana and Van Buren III, 1999; Woolcock and Narayan, 2000). This study intends to show, with the help of a case study, that the social capital works as a facilitator in the discharge of beneficiary accountability by the NGOs. The use of this theory provides a clear theoretical framework in accounting and accountability literature. A previous study on the Ugandan grass-root NGOs shows that this


theory helps the NGOs to discharge result oriented and informal accountability towards the beneficiaries (Awio et al., 2011). A study of Nyamori and Gekara (2016) also shows three (cognitive, structural and relational) interrelated dimensions (Nahapiet and Ghoshal, 1998) of social capital as facilitators to the operationalisation of performance through a study on Nairobi City Council.

Literature ReviewThis part of the study investigates the concept of accountability, general discussion on NGO accountability and narrowed down discussion on NGO accountability to the downward stakeholders (beneficiaries). This chapter covers the existing literatures on NGO accountability that focus on beneficiaries. Though there is lack of enough studies on the beneficiary accountability of NGOs, this study of literatures intends to articulate: (i) the importance of beneficiary accountability; (ii) NGOs’ motivation behind discharging accountability towards the beneficiaries; and (iii) the process through which the NGOs discharge their beneficiary accountability. This chapter also targets to show that discharging proper degree of accountability towards the service recipients increases faith on the NGOs. This review part presents a synthesis of development sector journals, accountability literatures in accounting and business, management and ethics journal.

AccountabilityAccountability is one of the prime concepts in the area of social policy. This accountability is considered to be lying at the centre of the endeavors of both public and private sector in providing services to their stakeholders. Moreover, for the last three decades this is being seen as a panacea for solving any difficulties related to establishment of justice, ethical governance, effective delivery of services and democracy in both public and private sector (Ebrahim and Weisband, 2007). Scholars have accepted that defining accountability engrosses a high degree of complexity and there exists debates on the issue (Dixon et al., 2006a; Patton, 1992) as different ideologies, motifs and languages influence the definitions of accountability (Sinclair, 1995). Existing literatures reflect the continuous debates on the concept of accountability. Some authors interpret accountability as a mechanism for establishing legitimacy that reports institutional functions in indirect and objective

ways (Shearer, 2002; Schweiker, 1993). In this logic, generally, accountability is termed as an act of giving accounts (Mulgan, 2000; Roberts and Scapens, 1985). Sometimes, it is described as ceremonial procedure of formal administrative practices (Walker, 2016; Sinclair, 1995). On the contrary, some researches depict that accountability does not only show formal but also moral order of practices in society to satisfy particular promises that involve mutual rights and commitments of the interacting parties (O’Leary, 2016; Shearer, 2002; Jacobs and Walker, 2004). Collison et al., (2006) find that the spirit of accountability is represented by the association between organizations and the society and/or the recipients of services of the organizations. From this type of association it is possible to surmise the required procedures and the channels of accountability. Khan (2003) summarized classification of accountability as: micro level and macro level, functional and strategic, formal and informal, short term and long term. He further argues that the summarized typology of NGO accountability is still incomplete as some of the types overlaps. Sinclair (1995) termed the accountability as ‘chameleon’due to the diversified and subjectively constructed nature of accountability. In addressing the hovering behaviour of accountability, researchers want to study it in political, social and discursive contexts (Shenkin and Coulson, 2007), and also on the basis of the associations among interacting parties (Ebrahim, 2005).

NGO AccountabilityNGO accountability is comparatively a new area in the field of accountability study. The debate on the NGO accountability started in mid 1990s when Edwards and Hulme (1996) argued that as independent organizations with specific mission to accomplish, the NGOs should display proof of their capacity to actualize their mission. Moreover, the NGOs should also show that these will be accountable for their actions and will be committed to recognized authority or authorities. On the other hand, accounting researchers started to study NGO accountability in the mid-2000s and onwards (Uneman and O’Dwyer, 2006).

Since mid-1990s NGO accountability has been studied in a good number of researches. But, a complete and commonly accepted definition of NGO accountability is still awaited within accountability literatures. The meaning of ‘NGO Accountability’ is imprecise (Patton,


1992), intricate and confusing (Ebrahim, 2003; Najam, 1996a). The NGO accountability is a complex issue firstly because of the perplexing circumstances in which they operate. Being intermediary in nature, the NGOs deal with multiple stakeholders of different backgrounds with dissimilar demands (O’Dowyer, 2007; Jordan and van Tuijl, 2006).

Despite the complexity related to the issue of NGO accountability, various research scholars (e.g. Edwards and Hulme (1995); Schmitz et al. (2012); Brown and Moore (2001)) have tried to define it. Their definitions present a disheveled idea about NGO accountability and they termed NGO accountability as the process that shows how NGOs are responsible to their stakeholders for their actions through relevant mechanism of accountability. Coule (2015) argues that NGO accountability does not only represent the mere outcome of a principal-agent relationship. He states that limiting NGO accountability within the accountability of NGOs to a specific authority will narrow the actual notion.

Dimensions of NGO AccountabilityFor their survival NGOs are required to perform a multidimensional range of accountability to their diversified types of stakeholders (Lehman, 2007; Creed and Miles, 1996). It would be inadequate for the NGOs to go for only instrumental, functional and short-term accountability. Instead, they should move for more strategic, expressive and long-term form of accountability (Ebrahim, 2010; Knutsen and Brower, 2010; Edwards and Hulme, 1996; Avina, 1993b).

Many researchers tried to classify NGO accountability in different ways. Among them Edwards and Hulme (1996) categorized accountability as upward and downward on the basis of accountee. They described upward accountability as the one which is discharged towards the funders and the regulators. On the contrary, they described downward accountability as the one which is discharged to the partners, staffs and downward stakeholders. Accountability to the staffs of the NGOs was termed as lateral accountability by Christan and Ebrahim (2206). Edwards and Hulme (1996) also categorized NGO accountability on the basis of discharging mechanisms. On this basis they divided accountability into formal and informal accountability. Formal accountability is similar to the instrumental accountability framed by

Knutsen and Brower (2010). According to them this is the accountability that is discharged through some forms of instruments such as reports and disclosures complying with specific regulations. Coule (2015) argues that this mechanism relates to the principal agent relationship that involves objective rules and assessment standards. Contrary to the formal and instrumental accountability informal type involves subjective and implicit standard of appraisal which requires no external party evaluations (Coule, 2015). On the basis of time frame Avina (1993b) classified NGO accountability as short-term and long-term accountability. NGOs discharge the former type of accountability to the upward stakeholders through reports. These reports present detailed accounts of the resources used. On the other hand, the latter type of accountability is discharged by the NGOs to the wider stakeholders through assessment of the developmental impact of various projects. Depending on the motivation level Ebrahim (2003) divided NGO accountability as internal and external accountability. The internal accountability is motivated by internal factors like commitment for achieving mission and passion for being transparent to the beneficiaries. The external accountability is motivated by the willingness to fulfill the demand of the stakeholders.

Beneficiary AccountabilityGenerally the performance of NGOs are assessed by their powerful stakeholders such as regulatory bodies and the donors instead of being assessed by the weak but directly influenced stakeholders like employees and the beneficiaries (Unerman and O’Dwyer, 2006; Hyndman and McDonnell, 2009; Ebrahim, 2003). This situation brings imbalances of power in the mechanism of NGO accountability (de Montclos, 2012). Because, by using their influence over the NGOs, donors may structure a coercive system of accountability by demanding specific measurable results and beneficiary information (Mir & Bala, 2015). If the unbalanced accountability sustains for longer period it may challenge the achievement of NGOs’ target of providing social welfare to the beneficiaries (O’Dowyer and Unerman, 2008; Murtaza, 2012). However, if the donors work with the aim of helping the NGOs to perform better in achieving their missions through ensuring tighter upward accountability, this will encourage the NGOs to discharge effective accountability to the beneficiaries (Nicholls, 2009). On the contrary, Mir and Bala (2015) from their study


in Bangladesh found that the NGOs have to spend a major portion of their external funds to recruit the donor prescribed human resources. This also hampers the discharge of beneficiary accountability by the NGOs.

The beneficiaries are the lifeblood of the NGOs on whom their existence depends (Wellens and Jegers, 2014a) and this matter attracted the attention of the researchers and experts in the NGO sector and demanded more comprehensive studies on beneficiary accountability of NGOs and on the mechanisms for discharging accountability to this group (Benjamin, 2012; Banks et al., 2015; Boomsma and O’Dwyer, 2014).

Some literatures explained the reasons behind the NGOs tendency of prioritizing the upward accountability over the beneficiary accountability. Size of the NGOs ( Jacobs and Wilford (2010), unclear accountability mechanism (Boomsma andO’Dwyer, 2014; Kilby, 2006; Najam, 1996a), controlling parties (O’Dwyer andUnerman, 2008), and hesitancy to disclose (de Montclos, 2012; Lloyd, Warren, and Hammer, 2008) are the prime among the factors influencing the difference in degree of priority. Moreover, the study on Amnesty in Ireland by O’Dwyer and Unerman (2008) also depicts that the absence of demand for accountability from the beneficiaries is an important reason behind absence of appropriate degree of beneficiary accountability.

Rationales for Discharging Beneficiary AccountabilityFrom their study Schmitz et al. (2012) found that the NGO leaders accept the importance of beneficiary

accountability but more explanation on the need for

NGO accountability is required for motivating them

to start practicing beneficiary accountability.

Some previous studies have identified that

some external factors like force from the

donors (Mir and Bala, 2014; Benjamin, 2012;

Christensen and Ebrahim, 2006) and social

sanctions (de Montclos, 2012) and internal

factors like an awareness of obligation and

moral duty of management (O’Dwyer

and Boomsma, 2015) stimulate NGOs

to discharge accountability to their less

powerful beneficiaries. On the other hand,

donor influence on NGOs simultaneously

discourages and encourages accountability to

beneficiaries (Benjamin, 2012; Christensen and Ebrahim,

2006). Moreover, Jacobs and Wilford (2010) found two

factors that motivate implementation of accountability

towards the beneficiaries. Firstly, commitment of the

management of the NGOs to support the functions of

the staff working in the field; and secondly, the attitude

of the field staff to make the beneficiaries confident

about solving their own problems by themselves

through releasing some powers to the beneficiaries.

Ospina et al., (2002) voiced in the same way as Jacobs

and Wilford (2010). They argued that the moral

obligation of the management of the NGOs to help

the beneficiaries is a factor that motivates NGOs to

discharge beneficiary accountability.

Ospina et al. (2002) and Schmitz et al. (2012) opined that the NGOs can reduce irregularities in accountability due to the power gap between the upward and downward stakeholders through proactive and engaging communication with the beneficiaries. Therefore Banks et al. (2015) Baruah, (2015) argue that personnel with higher degree of beneficiary understanding are more required than higher educated and knowledgeable ones to address the issue of beneficiary accountability more properly. Moreover Romzek et al. (2012) depict that accountability towards the beneficiaries is mainly discharged through nonprocedural methods and it is determined by the facilitative actions (e.g. frequent and easy communication) and shared norms (e.g. faith) of the relationships among different NGOs and the beneficiaries.

NGOs’ Mechanisms in Discharging Beneficiary Accountability

Figure-1: Beneficiary Accountability (BA) Mechanisms


A number of studies on accounting and NGOs have ascertained some mechanisms for beneficiary accountability through using conceptual and empirical

methods. Dewi (2017) summarized the mechanisms as shown in the following figure. This provides an assessment of the diverse beneficiary accountability mechanisms that are identified, based on their dimensions.

The above figure shows that the maximum of the generally used mechanisms of beneficiary accountability are informal in nature (Edwards and Hulme, 1996; Romzek et al., 2012) and these require expressive communication between the NGO personnel and the beneficiaries (Knutsen and Brower, 2010). Being located in the upper left portion of the graph the participatory review report represents a short term oriented accountability mechanism to the upward stakeholders. This is managed by using formal instruments like questionnaires and involves beneficiaries in the data collection procedure. These are presented through official form of reports and aim to evaluate past and running projects (Agyemang et al., 2009b). On the other hand, being located in the lower middle-right area beneficiary participation aims to ensure long term goals of NGOs (Avina, 1993b). This accountability can be achieved by NGO management’s felt obligation towards the beneficiaries (O’Dwyer and Boomsma, 2015) and also it can be achieved by donor specification (Uddin and Belal, 2013).

Some researchers studied how the NGOs practice the above mechanism of beneficiary accountability. Awio et al. (2011) studied the procedures of discharging accountability that the grass-root NGOs follow to serve the target communities. From the study of an NGO in Uganda they found that NGOs are required to discharge accountability to upward influential stakeholders through effective and formal financial reporting and to the downward stakeholders through straightforward, transparent and trustworthy interactions and high community involvement in delivering their services to the public. The researchers also found that the ability of the people in the society to perform together for a common purpose (termed as social capital by Coleman, 1988) strengthens community involvement in the activities of the NGOs

through fostering a trustable interaction between NGOs and the community. In the context of large Bangladeshi NGOs Uddin and Belal (2013) found that donor funded NGO projects discharge better beneficiary accountability than the self funded projects. They articulated that interventions from the donors complement ensuring enhanced NGO accountability towards the beneficiaries. From the detailed studies of two development projects in India’s village area, O’Leary (2016) found that the motivations behind the NGOs’ discharging of beneficiary accountability are fulfillment of their commitments and their self-determination values which indicates a rights-based approach.

Taylor et al. (2014), in their study of a developed country context (Vitoria, Australia), found that presenting written reports are not important in effective discharge of beneficiary accountability in any disaster recovery projects in root level. Rather they found that the NGOs’ closeness to the beneficiaries and the engagement of the beneficiaries in the project are more important. Taylor et al. (2014) also showed that NGOs want to show beneficiary accountability for satisfying both the funders and for demonstrating commitment to their mission and values. Contrarily, from the study on the fishing industry of Aceh, Indonesia, Dixon and McGregor (2011) found that the conflict between prioritizing of powerful and weak stakeholder in relief and development programmes weaken the beneficiary accountability. They also found participation of the local volunteers that enhances beneficiary accountability.

Methodology The study focuses on the methods through which the NGOs tell their story about their accountability issues and performance to the stakeholders. This study is based on qualitative case study approach (Bell and Aggleton, 2012). In order to achieve the research objectives, this study considers Ain O ShalishKendro (ASK), an NGO in Bangladesh that fulfills many condition including size, women as one of the main beneficiaries, donors, staffs and volunteers and the roles played by these factors on discharging of accountabilities to the beneficiaries. Moreover, this study focuses on an NGO that serves women as a major client in different ways in different locations of the country. This is also a suitable NGO for


studying prioritizing process of accountabilities to different stakeholders as it has number of upward and downward stakeholders.

Data Collection In their book on data collection in emerging countries, Cusley and Lury (1981) revealed three possible methods for data collection under case study approach. These are interviews, observation and document analysis. This study used the document analysis method for collecting data. The documents that were studied include the existing literatures published in academic journals on the NGO accountability and governance, beneficiary accountability of NGOs. The publications of ASK were also extensively studied. Considering the relevance and availability of different types of documents and time constraint, only publicly available and accessible documents such as, Annual Reports, Quarterly Reports, Mission Statements, Human Rights Reports published by ASK and Newspaper articles by ASK were studied.

Case study: Ain O Shalish Kendra (ASK)In this section accountability mechanisms of ASK is studied according to the discussion and framework showed in earlier chapter. This case study specially concentrates on the women empowerment activities of the case NGO. Focusing on ASK’s women right and empowerment programme, the discussion in this chapter exemplifies how ASK intends to concentrate on serving beneficiary accountability in its socialising (Roberts, 1991) and strategic forms (O’Dwyer and Unerman, 2010; Agyemang et al., 2009b; O’Leary, 2016).

Background of ASK

Ain O Shalish Kendra (ASK) is a non-government legal assistance and human rights based organization which was established in 1986 in the aim of protecting human rights and providing free legal services to the underprivileged poor women, children and workers in Dhaka city, the capital of Bangladesh. ASK has developed itself as the apex and most acclaimed advocacy organization through providing their services to the target group of people and sector for over 30 years and pursuing a rights-based approach to development. Since the inception ASK has developed an all-inclusive approach for promoting and protecting legal and human rights and has extended its activities all over the country.

Legal Status of ASK

Since the beginning ASK has registered its name as a non-governmental organization under three existing laws of the country. These are: (i) Societies Regitration Act, 1860 since September 20, 1986; (ii) Foreign Donations Regulation Ordinance, 1978 since June 28, 1993; and (iii) NGO Affairs Bureau Act since 1993. ASK also has been upholding special consultative position with the United Nation Economic and Social Council (UNECOSOC) since 1998. The organization engages itself in advocacy with UN agencies and treaty monitoring bodies. ASK also holds the Europe Aid Potential Applicants Database Online Registration (PADOR).

Programmes of ASKThe operation of ASK are conducted under six strategic areas as presented in the figure below. Since all the six areas are interlinked those work in collaboration with the other strategic areas.

Figure-2: Six strategic areas of ASK’s operations (Source: ASK, 2017)

The above six strategic areas consist of multiple dimensions that encompass the major activities of ASK. ASK also extend special mediation and legal services to the distressed women and children in case of violations of their rights. It also performs rescue and shelter services for victims or survivors of violence. Moreover, it runs a number of non-formal education centres in Dhaka city for street children and the working children.

ASK’s Social Network

ASK’s programmes, interventions and support services to the underprivileged women and children outside Dhaka are provided through vast network of its partner NGOs, Community Based Organizations (CBOs), Schools, Lawyers and Stakeholders’ forums.


Presently its programmes are operated through 14 NGOs and CBOs, 20 Schools and 10 Human Rights Defenders’ Forums (HRDF). Moreover, ASK has close liaison and partnership with national and international forums for advocacy. The following figure shows the partnership structure of ASK.

Figure-3: Partnership network of ASK (source: ASK, 2017)

ASK utilizes the social capital (the connections among the partners and other functional players) in discharging its accountability towards the beneficiaries. For this, ASK maintains a vast network of experts of different fields of human rights and utilizes their expertise and experiences in the process of accountability discharge. ASK takes initiatives to enhance the capabilities of its partners through arranging a numerous programmes.

In order to raise awareness about various HR issues and to strengthen organizational structures ASK has formed various community based organizations (CBOs) through the partnership with local NGOs. These CBOs includes Community Based Human Rights Protection Groups (CBHRPG), Community Based Women Groups (CBWGs), Community Based Human Rights Theatre Groups (CBHRTGs), School Theatre Groups (STGs) and Human Rights Lawyers Forums (HRLFs). ASK nominates members of the CBHRPGs and CBWGs from different sectors of the society including school teachers, members of school managing committees, members of the local union councils. ASK, at first, train the members of the CBHRPGs and CBWGs on HR issues and then the members look after the local issues of human rights violations (HRVs). The trained members of the CBHRTGs and the STGs organize cultural programmes like HR issue based drama, street drama and debates on HR related topics for raising awareness among the students and the mass people. The school based groups also publishes wall magazines to educate the students about HR related matters. ASK arranges various training programmes for human

rights actors, ASK staffs and the staffs of the partner organizations for building and enhancing their capacity and understanding on HR related issues. In order to enhance the knowledge and awareness of the women and girls about their rights ASK also implemented a project titled South Asia Young Women’s Leadership and Monitoring initiative.

ASK’s HRLF extends legal services to the beneficiaries through helpline, legal clinics and halfway home services. Legal clinics are run through the partner NGOs working in different districts and the various legal services are given to the distressed people by the paralegal staffs under the supervision of ASK. These legal aid programmes have achieved success in ensuring justice at lowest cost through mediation, prompt tracing of HRVs, rehabilitating the women and children escaped from violent situation by providing them shelter, food, legal aid, medication and psycho-social counseling.

Accountability Framework of ASKLike most other NGOs ASK’s accountability discharging also is mainly inclined to upward stake holders. ASK discharges formal accountability to the donors and regulators for maintaining the legitimacy and it discharges informal, unmethodical accountability to the downward stakeholders though a network of actors in the society. ASK’s accountability is discussed in the following parts of this chapter.

Accountability to patrons

ASK is accountable to the Government and donors. Like other NGOs performing in Bangladesh, ASK needs to take prior approval from the NGO Affairs Bureau for all of its projects. The donor consortiums and the individual donor agencies also review the financial and normative aspects of all the projects in the periodic meetings. Funded projects of ASK are audited by both International auditing firms and the local audit firms approved by the government. ASK submits its audited financial statements to the donors and also to the NGO Affairs Bureau.

Accountability to Beneficiaries

ASK’s beneficiary accountability mechanism follows principle of simplicity, participation and close communication. To maintain close connections with the grass-root level beneficiaries ASK continuously reaches them through its partners as depicted in the above


partnership networks diagram. As a part of discharging beneficiary accountability ASK publishes different periodicals like annual reports, human rights reports, articles in the newspapers and quarterly bulletins.

ASK also reaches to the downward stakeholders through arranging different cultural programmes in collaboration with the local partners in different localities. These programmes help raise awareness among the deprived citizen groups including students, workers and women. ASK’s legal assistance, litigation and investigation services ensure the victims’ access to justice at the lowest cost. ASK also helps the victims get the Government’s Legal Aid Fund. Specially ASK provides support to the women through swift response to the cases of human rights and women rights violation. It has a special provision called ‘half way home’ through which ASK provides services to the distressed women and children. This service is extended to the women and children who can escape from any violent situation. Under this service the escaped women and children are provided shelter, food, medical care and counseling to overcome the traumatic condition.

To fulfill the accountability to the downward stakeholders like women ASK reports cases about various violence against women such as sexual harassment, stalking, rapes, dowry, domestic violence, violence against female domestic workers and acid throwing in its annual reports, quarterly bulletins, human rights reports, and through publishing articles in daily newspapers. It brings these matters into light for raising public opinion and concerns among law enforcing agencies. ASK meets the journalists and other media to inform them on the status of human rights and to enhance their roles in advocacy for HR. It issues press statements to different news and electronic media to express concern about HRVs and to demand justice in various HRV incidences.

Publications of ASK are well-known for raising public interest about rule of law and human rights. The publications highlight the contemporary incidences, newly framed and passed laws, HR issues and important judgments. The publications also raise issues of major concerns and challenges, the improvement in legal and policy framework or the status of implementation of the related laws. The annual human rights reports of ASK has been acclaimed locally and internationally.

It provides a comprehensive overview and analysis of the HR situation of the country. It also raises awareness among people and public policy makers and human rights activists. It helps the human rights activists initiate required advocacy in different levels. ASK also publishes quarterly bulletins and articles in newspapers on different contemporary issues.

Through over thirty years of experience ASK has built a core efficiency and effectiveness in the field of human rights work. Being supported by an adequate number of full-time staffs and a huge number of volunteers, ASK is capable of carrying out various programmes at local and national level. Moreover, this chapter also briefly discusses how ASK expliots the social capital (human, social and financial) in discharging accountabilities towards the downward stakeholders. The analysis chapter will further discuss on this matter.

Discussion and Analysis of FindingsPrior literature suggested that the downward or the beneficiary accountability has been established as an important issue of concern. Conceptual studies (e.g. Knutsen and Brower, 2010; Ebrahim, 2010; Edwards and Hulme, 1996) have discussed the significance of accountability towards the beneficiaries of the NGOs for achieving expected success in community development through NGO activities. Despite the immense importance described by these authors, the topic beneficiary accountability has not yet been defined precisely (O’Dwyer and Unerman, 2007) and it is characterized as a legitimising equipment (Goddard and Assad, 2006). Moreover, Taylor et al., (2014) disagreed to consider beneficiary accountability as a type of accountability blaming it to be a dedicated tool for attracting more funds from the donors.

Basing on the debate about beneficiary accountability, this study intends to analyses three matters. Firstly: what the term beneficiary accountability means; secondly: to examine how beneficiary accountability is discharged in the context of ASK; finally: to analyses how the social capital theory works in discharging of ASK’s beneficiary accountability.

Meaning of Beneficiary Accountability

From the study of the literatures we came to know that beneficiary accountability is the informal process of setting the beneficiaries in the point of focus of the NGO activities. This process aims to make the


beneficiaries self-reliant in a strategic manner that encompasses the provision of service delivery and financial statement disclosure. This definition shows how the achievement of accountability to the beneficiaries is related to informal and socializing forms of accountability instead of being related to the procedural and instrumental forms of accountability to the donors and regulators. This socializing form of accountability is perceived to be achieved through utilizing the social capitals depicted by the social capital theory.

Existing Practice of Beneficiary Accountability in ASK

The performance of beneficiary accountability is closely related to social contacts between the focal parties of NGOs and the beneficiaries (O’Leary, 2016; Roberts, 1991). It is revealed form the case study that the intensity of dealings and the level of intimacy between the representatives of NGOs and the beneficiaries influence the accountability systems that the case NGO discharges.

From the detailed study of the documents published by ASK it is found that in most of the HRV instances ASK has to proactively find out the cases of HRVs through searching and they discharges accountability through their own mechanism. It is not demand pulled. Distressed people are not yet coming to ASK with a demand for solution and help. This may represent that people have not the confidence or strength for demanding services that they need. Here comes the point of ownership by the beneficiaries. This matches with O’Dwyer and Unerman (2008) who found that beneficiaries of NGOs cannot demand measures from NGOs as the corporate shareholders can demand it form the corporate houses. For this, it can be presumed that a lot of cases of HRVs do not come to the light. If the distressed people could be given the feeling of ownership on the NGOs then they would come forward to demand measures. For this donors can place the beneficiaries in a stronger position by giving them the authority to report on the performance of the NGOs.

From the analysis of ASK, it is found that the practice of beneficiary accountability in ASK tends to be grouped into three main forms: delivery of provisions and services, disclosure of financial statements and

the empowerment of beneficiaries to be self reliant in facing HRVs. Among these three forms the first and the third are found to be more evident in ASK’s practice of beneficiary accountability as ASK provides legal and mediation related service to the beneficiaries and also takes measures to make the mass people aware of HR issues. To do both ASK takes the benefit of different social capital. But, ASK does not present any documents to the beneficiaries as part of discharging beneficiary accountability.

How the Social Capital Theory Works in ASK

ASK follows the social capital theory in serving the beneficiaries. It uses a network of human rights actor and partner organizations (‘social capital’ as mentioned by Burt, 1992; Coleman, 1988, 1990; Granovetter, 19992; Woolcock and Narayan, 2000) to serve the bottom-line beneficiaries. The process of beneficiary accountability in ASK includes interactions between beneficiaries and the structural networks of ASK, which does not invest efforts to engage the beneficiaries in determining the programmes to be carried out. This proves the findings of O’Leary (2016) and Ebrahim (2003) which found that accountability takes place as a process rather than a tool. Moreover, there is a possibility that in the social framework of a country like Bangladesh, there is a possibility that the local actors may act against justice in some cases for their vested interest. The actors may avoid some reporting of HRVs and thus may also deny to serve some distressed people whose interest can go against the personal interest of the HR actors.

The findings of this study also are consistent with the findings of previous studies (e.g. O’Dwyer and Unerman, 2007; Awio et al., 2011). Like them this study also found, from the analysis of ASK’s documents, that beneficiary accountability does not follow formal format of accountability as it is needed for upward accountability discharging where different types of reporting format is followed. Rather, it follows a wider informal form of socialising (Roberts, 1991). This study also conforms the findings of the study of Coule (2015) that the downward form of accountability does not match with the principal-agent relationship as perceived by the different stakeholders of NGOs. In ASK’s case also no principal-agent relationship between the beneficiaries and ASK could be observed or established.


ConclusionFrom the study it comes to the light that the prime assignment of an advocacy NGO based mainly in women empowerment is to analyse the consequences of political and economic decisions of the regulators on the HR condition of the underprivileged people (Davis et al., 2012; Brown et al., 2012). This matter helps the NGOs working in advocacy area become a very influential wing of the civil society. The case NGO of this study is also an advocacy organization working mainly for women and children rights and their empowerment.

This study, through the help of the case analysis, has been conducted to perceive beneficiary accountability, the mechanism of discharging beneficiary accountability and the method and elements that enable such practice of accountability. The study has been conducted through examining a prominent Bangladeshi NGO whose vision is to extend legal and mediation services to the distressed people through a large structural network of HR actors in the society. To enable the understanding of process of discharging beneficiary accountability, this study has been done following the social capital theory. Through the study we found that the elements of the social capital contribute to the achievement of beneficiary accountability. But, these elements still fail to contribute in the complete functioning of beneficiary accountability. This is mainly for the lack of ownership type control from the beneficiaries.

This study is based on a single NGO, ASK, and therefore the findings cannot be generalized. However, we hope that this study will provide some interesting idea and frameworks about the case NGO that can be further tested by researchers in case of other NGOs. Moreover, we conducted only document analysis and reviews of literatures. Though enough documents were available on the case NGO, the use of other tools like interviews of the NGO personnel, beneficiaries, donors and regulators, questionnaire surveys, focus group discussions could enrich the research. Another limitation of the study is due to the word limit we could not elaborately discuss the three dimensions of accountability as mentioned by Nahapiet and Ghoshal (1998) which are important to study beneficiary accountability. Further studies

are required to accommodate more similar NGOs to have general findings. Moreover, the future studies should include more data collection tools to have a complete result.

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Despite unique risks and considerations, Alternative Investments are useful tools to improve the risk return characteristics of an investment portfolio. They can increase diversification and reduce volatility, given low correlations to more traditional investments and they can offer the potential for enhanced returns due to the wider investment opportunity set. As such we can see below some of the recent Alternative Investment deals for Asian Market.

Actis sold South Korean Twin-Tower Office Building Young City for USD447.5m when ADB approved USD100m loan to Mongolia to support COVID-19 Response and USD300m loan to Geo Dipa Energi to Increase Indonesia’s Geothermal Power Generation Capacity. Asia-focused private credit investment fund manager ADM Capital has secured USD630m for its credit fund targeting mid-sized companies in Asia when AMP Capital and Stonepeak committed USD145m in Taiwanese Offshore Wind Farm Developer Swancor and Arkam Ventures has reached USD43m First Close for Debut Fund.

B Capital led USD60m Series B for Indian Fintech Khatabook when Bain Capital agreed to invest USD123m in South Korean Edtech ST Unitas and Baring PE Asia agreed to invest up to USD423m to Take Indian IT Service Provider Hexaware Technologies Private. Bertelsmann India Investments, Tribe Capital, and InnoVen Capital led USD13m Series C for Indian logistics startup Shiprocket. The Carlyle Group agreed to acquire up to 74% Stake in Indian Health Care Services Provider SeQuent Scientific for USD216m. China’s CDH Venture and Growth Capital has reached combined USD824m Close for RMB and USD Venture Funds. Chiratae, Accel, and Bain invested USD3.3m in Indian online Rental

Marketplace Rentomojo. ChrysCapital has acquired 3% Stake in Indian Pharma Intas for USD132m and ClearVue Partners led USD30m Series C+ for Chinese Smart Car Wash Company 1km. CVC Capital has acquired 29.16% stake in Indian Cancer Care Center Operator HCG for USD86.5m.

DEG provided USD12m long term loan to Myanmar’s Hospital Operator Asia Royal Company when DFC commited up to USD130m to Five EM Funds in Africa, Latin America, Southeast Asia, and India. DFC also provided USD15m loan to Indian School Financier Varthana. Dragon Ball Capital and CDH Investments led USD56m Series C for Chinese Food Distribution Platform Lehe ,Everstone Capital withdrew Singapore’s Human Capital Management Firm Excelity Group to Ceridian, India Based Exfinity Ventures and IAN Fund led USD5.1m Series A for Indian Multilingual AI Platform Vernacular.ai and Facebook and PayPal invested an undisclosed amount in Indonesian Rideshare Company Gojek. Gaja Capital, Lok Capital, and TIAA invested USD8.2m in Indian Non-Banking Finance Company Suryoday Small Finance Bank. General Atlantic Invested USD870m in Indian Telecom Company Jio Platforms for 1.34% stake and USD300m Funding Round for Chinese Grocery E-Commerce Platform Dingdong Maicai. Geopost, Grab, Monk’s Hill, B Capital, and Others invested USD279m Series D for Singaporean Logistics Platform Ninja Van. Asia and North America focused GGV Capital led USD230m Series A for Chinese MRO Unit of JD.com. Goldman Sachs led USD100m Series C for Chinese SaaS Platform Jushuitan and Hahn & Co. and Hana Financial acquired South Korean Bulk Carrier H-Line Shipping for USD1.45b and Hillhouse led USD160m Series B for Chinese Biopharma Genor.

[To be continued...]

Alternative Investments

G M Omar Faruque Chowdhury FCMA

The Journal is running a series of updates on IFRS, IAS, IFRIC and SIC. In this issue, Mr. Mohammad Samsul Arefin ACMA (UK), CGMA, FCMA has taken the responsibility to update the reflection on some latest pronouncements by IASB in their website.

Mr. Arefin has been working as Head of Internal Audit & Compliance in RAK Ceramics (Bangladesh) Limited.

IFRS Update

Proposal for amendment to IFRS 16:

The International Accounting Standards Board has proposed to amend IFRS 16 Leases to make it easier for lessees to account for covid-19-related rent concessions such as rent holidays and temporary rent reductions.

The objective of the amendment is to give timely relief to lessees when applying IFRS 16 to covid-19-related rent concessions.

IFRS 16 specifies how lessees should account for changes in lease payments, including concessions. However, applying those requirements to a potentially large volume of covid-19-related rent concessions could be practically difficult, especially in the light of the many challenges stakeholders face during the pandemic. The Standard requires lessees to assess individual lease contracts to determine whether the concessions are to be considered lease modifications and, if that is the case, the lessee must re-measure the lease liability using a revised discount rate.

The proposed amendment would exempt lessees from having to consider whether particular covid-19-related rent concessions are lease modifications, allowing them to account for these changes as if they were not lease modifications. The amendment would apply to covid-19-related rent concessions that reduce lease payments due in 2020.


Suggested changes:

The changes proposed in ED/2020/2 Covid-19-Related Rent Concessions (Proposed amendment to IFRS 16) would amend IFRS 16 to

1. provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification;

2. require lessees that apply the exemption to account for COVID-19-related rent concessions as if they were not lease modifications;

3. require lessees that apply the exemption to disclose that fact; and

4. require lessees to apply the exemption retrospectively in accordance with IAS 8, but not require them to restate prior period figures (a lessee would recognize any difference arising on initial application of the amendment in opening retained earnings (or other component of equity, as appropriate) in the annual reporting period that includes the date of initial application).

The proposed amendment would not supersede the educational material recently published on the same topic, but rather the two complement each other.

The IASB is not proposing any additional relief for lessors as the current situation is not as equally challenging for lessors, as most have operating leases and even if they have lease modifications, the required accounting is not as complicated.

Effective date

The Board expects to finalize the amendment to IFRS 16 by the end of May 2020 and proposes an effective date of 1 June 2020 for the final amendment (earlier application permitted, including in financial statements not yet authorized for issue at the date the amendment is issued).

IASB proposes deferring IAS 1 amendments’ effective date due to covid-19:

The International Accounting Standards Board (Board) has proposed to defer by one year the effective date of Classification of Liabilities as Current or Non-current, which amends IAS 1 Presentation of Financial Statements.

The IAS 1 amendments were issued in January 2020, effective for annual reporting periods beginning on

or after 1 January 2022. However, in response to the covid-19 pandemic, the Board is proposing to provide companies with more time to implement any classification changes resulting from the amendments by deferring the effective date by one year to annual reporting periods beginning on or after 1 January 2023.

The Board is not proposing any changes to the original amendments other than the deferral of the effective date.

Other discussions ongoing:

The International Accounting Standard Board also met remotely on 21 - 23 April 2020 to keep progressing on discussions with the following topics:

v Amendments to IFRS 17 Insurance Contracts

v Financial Instruments with Characteristics of Equity

v Post-implementation Reviews of IFRS 10, IFRS 11 and IFRS 12

v Maintenance and consistent application

v Management Commentary

v Review of the IFRS for SMEs Standard

v Disclosure Initiative—Subsidiaries that are SMEs

Source of information:

IASB website

IASplus.com


UPDATE ONDhaka Stock MarketThe Journal is running a series of updates on Financial Market of Bangladesh (i.e. Money Market and Capital Market). In this issue of THE COST & MANAGEMENT, Mr. Mohammad Shamsur Rahman, FCMA has given a reflection of relevant changes and updates on Financial Market. The analysis of the market has been done considering the period from March 01, 2020 to April 30, 2020. Mr. Rahman is currently working as Chief Regulatory Officer (CRO) of Chittagong Stock Exchange Limited.

Bangladesh Economic Outlook

w The Bangladesh Bank would inject Tk 50,742.5 crore into the money market in the form of refinance scheme out of the government-announced stimulus packages to support the businesses and farmers to overcome the impact of coronavirus pandemic.

w Reserve money recorded an increase of Taka 21174.00 crore or 9.29 percent at the end of January 2020 against the increase of Taka 17707.00 crore or 8.42 percent at the end of January 2019. Of the sources of reserve money, net foreign assets and net domestic assets of Bangladesh Bank increased by Taka 14175.40 crore and Taka 6998.60 crore respectively or 5.77 percent and 39.91 percent respectively at the end of January 2020 as compared to January 2019 Money multiplier gradually increased and it reached 5.16 at the end of December 2019 from 4.95 at the end of June 2019.

w The twelve-month average general inflation remained unchanged at 5.60 percent in February, 2020 which was 0.10 percentage point higher than the target of 5.50 percent for FY20.

w The point to point Food and non-food inflation dropped to 4.97 and 6.23 percent in February, 2020 from 5.12 and 6.30 percent in January, 2020. Therefore, point to point general inflation significantly decreased to 5.46 percent in February, 2020 which was 5.57 percent in January, 2020.

w The weighted average call money rate in the inter-bank money market increased to 5.15 percent up to March 23, 2020 from 5.06 percent in February, 2020, moving in-between the interest rate (Repo & Reverse Repo) corridor.

w Bangladesh Taka and Indian Rupee (INR) have depreciated by 0.53 percent and 4.53 percent respectively against the US dollar at the end of February 2020 as compared to its level of end June 2019. As per the latest available data, Bangladesh Taka has recently been appreciating against the Indian Rupee.

The summary of the economic outlook depicted below: Particulars 19 February 2020 30 April 2020

Foreign Exchange Reserve (In million US$) 32701.50 33109.81

Interbank Taka-USD Exchange Rate (Average) 84.9500 84.9500

Call Money Rate (Weighted Average Rate) 5..09 4.96

Import (C&F) (in million US$)Import (f.o.b) (in million US$)

December 20195254.004866.00

February 20204723.704371.00

Export (EPB) (in million US$) January 20203617.31

April 2020520.01

Rate of Inflation on the basis of Consumer PriceIndex for National (Base:2005-06=100) a) Twelve Month Average Basis b) Point to Point Basis

February 20205.605.46

March 20205.605.48

GDP Growth Rate (in percent, Base: 2005-06=100) 7.86 (2017-18) 8.15 (2018-19)

Source: Bangladesh Bank


Bangladesh Capital Market Updates

w Bangladesh Securities and Exchange Commission (BSEC) has approved the Envoy Textiles’ proposal of issuing preference shares which will raise a capital worth Tk 870 million issuing cumulative preference shares to expand business and repay high cost debt. The tenure of the preference shares will be five years while the characteristics are non-convertible, fully redeemable and unlisted. The offer price of the preference shares, which will be issued to institutional investors, is Tk 10 million. On the other hand, the shares will be issued to eligible investors at an offer price of Tk 5.0 million each. NDB Capital is working as issue manager of the said preference shares.

w The market regulator has decided to approve a proposal for amendment to the BSEC (qualified investor offer by small capital companies), 2018, and finalised the BSEC alternate investment rules, 2015, and approved the draft BSEC debt securities rules, 2020 after the end of general holidays.

w Bangladesh Securities and Exchange Commission has deferred the time for giving public opinions on the draft trading right entitlement certificate rules due to general holidays.

DSE and CSE Market Updates (from March 01, 2020 to March 25, 2020)

w The benchmark index of Dhaka Stock Exchange (DSEX) was 10.53 percent lower than of the beginning of the month. The daily turnover was highest on March 03, 2020. Changes in indices of DSE (from March 01, 2020 to March 25, 2020):

Indices Open Close Point Change % changeDSEX 4,480.23 4008.29 -471.94 -10.53%

DSES 1,044.91 920.69 -124.22 -11.89%

DS30 1,492.37 1330.86 -161.51 -10.82%

(*considering 1st March as base)

w The benchmark index of Chittagong Stock Exchange (CSE50) was 16.65 percent lower than of the beginning of the month. The daily turnover was highest on March 25, 2020. Changes in indices of CSE (from March 01, 2020 to March 25, 2020):

Indices Open Close Point change

% Change

CASPI (All share index) 13742.96 11328.00 -2414.96 -17.57%

CSE-30 11912.38 9975.51 -1936.87 -16.26%

CSCX 8332.96 6859.90 -1473.06 -17.68%

CSE 50 (Benchmark) 977.81 815.00 -162.81 -16.65%

CSI (CSE Shariah Index) 901.18 729.30 -171.88 19.07% (*considering 1st March as base)

w The total market capitalization of all shares and debentures of the listed securities of DSE stood lower by 7.62 percent at Tk. 3122.35 billion as on March 25, 2020 from Tk. 3,379.87 billion on March 01, 2020. On the other hand, the total market capitalization of all shares and debentures of the listed securities of CSE stood lower 9.33 percent at Tk. 2,445.72 billion as on March 25, 2020 from Tk. 2,697.46 billion on March 01, 2020.

Source: website of BSEC, DSE & CSE

Disclaimer:

All information and analysis contained in this article have been complied and analyzed from publicly available information. However,

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to, the accuracy or completeness of the information and opinions contained in this article or as to any information contained in this

article or any other such information or opinions remaining unchanged after the issue thereof.

The information contained in this article is not be taken as any recommendation made by the writer or CSE or any other person to

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Mr Hasibul Islam is a strategic level student of ICMAB having already completed 1500 marks with a positive trend of prospect in the ahead. He began academic journey with the science discipline in the SSC and HSC. However he shifted to business discipline and completed his BBA and MBA from the University of Sunderland, UK with major in International Marketing.

He is keen to transform his knowledge into practical skills and use the expertise in accounting and cost management for the greater national interest. He, therefore, intends to develop strategies in the perspective of international practices and aspects.

This section focuses on reflections from young students of ICMAB and how they have been pursuing their CMA career path and facing challenges in CMA study at the beginning of their career.

WorldCMA Students’

Why do you pursue CMA education from ICMAB? Explain in detail?Since I came from science background, my choice was BSC engineering in the beginning. However I was working in a well-reputed PR & Branding organisation in the Dhaka International airport where I was also entrusted with managing some dynamic projects. In course of my work, I was captivated by sophistication and challenge of the job. That fascination turned me to get motivation to study business and management. Subsequently I shifted from engineering to business background and switched to UK for studying BBA and MBA from the University of Sunderland. Soon after completing MBA, I felt that huge number of experts is entering in this sector like any other generalised field. So I must acquire some specialization in any compatible field. At that point, I envisaged that cost and management accounting would be unique for specialisation. But pursuing CMA from institutes of England was not affordable for me as its scope was limited and expense was high. So I realised that only CMA from Bangladesh could help in materializing my career plan.

Moreover when I came to know that ICMAB is offering CMA course at international standard in collaboration with CIMA (UK) at affordable cost and it has accreditation from international platform such as ACCA, CA, CIPFA etc. reasonably opted for ICMAB.

How do you make a comparison between CMA education and other academic qualifications?Well As an analogy I would say if academic qualification is the art then CMA is the craft of that art. The academic qualification emphasis on the theory, academic discipline and research rather than practical application but it can be used infinitely. On the other hand CMA is advanced studies. It imparts knowledge, understanding and practical experience to apply the knowledge in a practical manner, in a professional practice. This obviously leads to a completely different set of skills (especially in cost and management) each with different purposes and contexts for the world of work.

What are the main challenges you faced in studying for CMA education?As the CMA course is very strenuous one, everybody has to make paperwork consecutively for hours in


same sitting stance. In course of doing so students very often come across neurological problem or spinal cord related injury. Unfortunately I had also suffered from neurological problem in my spinal cord for two years in the middle of the course. For this reason I could not make any remarkable progress during two years of suffering. However after doing neurosurgery in my spinal cord, I recovered. By the strong will force and determination I quickly comeback to the race to make outstanding progress afterward. My doctor diagnosed the reason of such problem to arise from continuously sitting in same stance and their suggestion was to read and write in the same level of eye, which is not possible during the exam time. Hence huge paperwork instead of more practical works may be identified as a challenge in this profession.

Do you think that CMA qualification will help you to get added advantage in the job market?

Particularly CMA is a very rigorous course of systematic screening throughout its long span of programs in which most of the students cannot sustain with persistent hard work and patience. As a result, numbers of qualified CMAs are still few compared to growing demand in this field. Surely this inconvenient match between supply and demand of gives CMA professionals a clear advantage in the job market.

What are the strategy you are following to complete the CMA education on schedule?

I believe in constant improvement, so to complete the CMA education on projected schedule I will focus on incremental change, which can be listed as under:

1. Maintaining time schedule: Reading repeatedly to gather maximum amount of information.

2. Research and analysis: Research all the critical and crucial topics through swapping ideas and information with friends and if that’s not enough then consulting several resource materials or with the seniors.

3. Pen down minutes of each subject and formulas: Just to revise before exam preparing all the key points, based on each chapter of each subject just like a summaries of meetings to look at a glance.

4. Mock test and variance analysis: Before exam through mock test, evaluating own performance and find out lapses for last minute correction before exam, keeping confidence.

What do you expect to get from ICMAB as a student?

As we are incorporating to a globalized economy where competition is severe, we need more practical oriented studies or workshop. Besides exams:

w Creating career advising panel or mentorship program to look after at knowledge of soft skills, grooming, and networking will enrich our career.

w Special arrangements such as smart capsule for group studies are expected

w some adjustable sitting arrangement in the library for physically challenged students is required.

Could you remember any memorable event during your study at ICMAB?

Out of thousands sweet and sour memories, there is one, which still clearly stands out in my mind. I had huge limitation of time to catch up the earliest batch of CMA after completing my MBA course in UK. I had to wind up from London and at the same time process my admission from there within the last few days of admission. ICMAB admission committee advised me to quickly send the requisite papers through online and assured that they would even grant me to appear in the last moment if my papers adequately satisfied them. Accordingly I rushed to Dhaka by the earliest flight and directly headed to the ICMAB from the airport and could turn up really in the last moment of deadline. I was very excited to catch up the on-going batch amid tight time schedule and kept me with my planned career.

To fulfil your future dream comes true; do you think the CMA qualification will be able to fulfil your Aspirations?

I believe that CMA qualification will not only make my future dream come true but also enhance my innovative capacity to uplift any corporate management. I think there are often ups and downs and the system does not always run in linear way. As such CMA will facilitate me to deal with all uncertainties in order to boost up the level of performance of the corporation. Right now we are already in the big challenge to cope up with Covid-19 pandemic and we CMA professionals will together reconstruct the cost management system in this daunted world economic order In-Sha- ALLAH.

[Interviewed by: Sazedul Hoq ACMA]


NEWSICMAB delegation meets Hon’ble State Minister for Women and Children Affairs

ICMAB President Mr. Md. Jasim Uddin Akond FCMA and Past President & present Council Member of ICMAB Mr. A. K. M. Delwer Hussain FCMA met Hon’ble State Minister, Ministry of Women and Children Affairs Ms. Fazilatun Nessa Indira MP at her office on March 4, 2020.

ICMAB President updated the Honorable State Minister about the overall affairs of the Institute, particularly the development issues of CMA profession. He also sought help of the Minister for further development of ICMAB. The Minister highly appreciated the role of the Cost and Management Accountants in the economic development of the country and assured to provide full co-operation for the development of CMA profession.

ICMAB Celebrates International Women’s Day 2020


The Institute of Cost and Management Accountants of Bangladesh (ICMAB) celebrated the International Women’s Day 2020 by organizing a Seminar on 8th March 2020 at ICMAB Ruhul Quddus Auditorium, ICMA Bhaban, Nilkhet, Dhaka.

Chief Guest of the Seminar was State Minister for Women and Children Affairs Fazilatunnesa Indira MP. Managing Director of Probashi Kallyan Bank Mahtab Jabin was present as special guest. Professor Dr. Sadeka Halim, Dean, Faculty of Social Science, University of Dhaka was the key discussant in the program. Key note address was given by Rukhsana Rashid FCMA; Executive Director, Bangladesh Securities and Exchange Commission. Akhtar Sanjida Kasem FCMA, Partner, A. Qasem & Co., Chartered Accountants and Founder & Consultant of K. K. Foundation Esha Mahin was present as guest of honor.

ICMAB President Mr. Md. Jasim Uddin Akond FCMA thanked the chief guest for ensuring her valuable presence in the program and expressed his gratefulness to all honorable guests and invitees. The ICMAB President requested the honorable State Minister to allocate a fund for vertical extension of ICMAB Bhaban which would facilitate the arrangements for institute’s female students. He also requested her to allot few seats for ICMAB female students in the adjacent Kormojibi Mohila Hostel for their smooth study. Mr. Md. Mamunur Rashid FCMA, Vice President of ICMAB delivered the welcome speech and thanked the honorable guests and invitees for joining the program. Mr. Md. Munirul Islam FCMA, Secretary ICMAB offered vote of thanks in the program. ICMAB Past President and Council member Mr. A. K. M. Delwer Hussain FCMA thanked the honorable chief guest mentioning her bludgeoning political career and remarkable achievements. He thanked the chief guest and requested her to support this profession and the institute for betterment.

Chief guest Fazilatunnesa Indira MP greeted everybody for the Mujib barsho. She said that her ministry is doing important activities in this glorious year which would create a great impact for the development and empowerment of our women. She thanked ICMAB officials for inviting her and remembered her student life while she used to go through this area. Honorable State Minister assured that she would try her best to facilitate the institute for attracting more female members in the profession. She highlighted the present government’s outlook on women empowerment remembering Father of The Nation Bangabandhu Sheikh Mujibur Rahman and his family’s visionary approach. Special guest Mahtab Jabin said that the existence of equality between men and women in our constitution is lagging behind from the real scenario. Women are still enforced to work without payment, and real empowerment has not been achieved due to social distraction and many other barriers. She hoped that everyone would come forward to overcome this predicament situation.

Professor Dr. Sadeka Halim highlighted the prevailing patriarchy in the society among other issues and presented statistical facts of women oppression. She viewed that economic empowerment could strengthen women’s capacity but not empowering them at large as long as domestic violence, gender inequality, patriarchal family structures and traditional mindsets remain the same. She encouraged the women to come forward and made them significant, empowered and advanced.


Rukhsana Rashid FCMA, Executive Director, Bangladesh Securities and Exchange Commission said that women were working with success but they were not getting equal remuneration in most of the places. Although women are holding the top positions of many businesses, the numbers are still low. She inspired more women to come in the CMA profession. Akhtar Sanjida Kasem FCMA gave importance on women empowerment in both family and workplace. She believed that more female member would join in CMA profession in the upcoming days. She remembered late ICMA member Kirmani-Jannatul Couple and their child who died in a recent tragic fire accident at their residence in Mogbazar.

Founder & Consultant of K. K. Foundation Esha Mahin pointed out violence, lack of help, mental issues, family, tortures and insecurities as the impediments of women empowerment. Unless we change our mindsets and practice accordingly, it would take more than centuries to create an equal society where men and women will be equal in the basis of empowerment, she added. Past Presidents, Council Members, large number of Fellow and Associate Members of the Institute and a large number of running students attended the program.

ICMAB office bearers met officials of the Institute

The Newly elected office bearers of the Institute hold a meeting with all the officials of the Institute on March 10, 2020 at ICMA annex building. ICMAB President Mr. Md. Jasim Uddin Akond FCMA, Secretary Mr. Md. Munirul Islam FCMA and Treasurer Mr. Md. Ali Haider Chowdhury FCMA got introduced with all the officials of the Institute. The newly elected office bearers inspired the officials to work together to achieve the goals of the Institute. They emphasized on idea sharing, coordination, team work and responsibility for everyone. In every programs and flagship events, everybody needs to work according the plan and it should be designed properly. The president and secretary invited the officers feel free and come up with their ideas and thoughts regarding the Institute for its betterment. Executive Director of the Institute and the officers assured the Office bearers full support for the implementation of the programs planned by the Council of the Institute.


DBC NewsB R A N C HCOUNCILS activities

Do’a Mehfil for Shahidul Kirmany FCMA and Jannatul Fardaous ACMA including their only minor child who have died in a tragic fire accident and for recently deceased members of the Institute

DBC organized Do’a Mehfil for the sad demise of Mr. Dewan Md. Yunus FCMA (F-0062) expired on 19.10.2019, Mr. Md. Ishaque FCMA (F-0027) expired on 03.02.2020, Mr. A.K.M. Shahidul Kirmany FCMA (F-0914) expired on 02.03.2020, Ms. Jannatul Fardaous ACMA (A-1402) expired on 01.03.2020 and Rushdi (son of Mr. A.K.M. Shahidul Kirmany FCMA & Ms. Jannatul Fardaous ACMA) expired on 27.02.2020 . Mr. Md. Jasim Uddin Akond FCMA President of the Institute, Council Members of the Institute and Mr. Md. Abdus Satter Sarkar FCA, FCMA, Chairman of DBC, Dr. Syed Abdulla Al Mamun FCMA, Secretary of DBC, other office bearers and Councilors of DBC were present on the occasion. A large number of fellow and associate members and students were also present and actively participated in the program. Finally, a Milad and Do’a Mehfil was arranged for the salvation of the departed soul of the deceased members.


CBC NewsB R A N C HCOUNCILS activities

Discussion & Doah Mehfil for deceased members of ICMA Bangladesh held on March 05, 2020.

A discussion and doah mehfil for the deceased members of ICMA Bangladesh was held on March 05, 2020 at CMA Bhaban, CDA R/A, Agrabad, Chattogram. CBC office bearers, Council members, Past President and Past Chairmen of CBC were attended in the discussion.

Fellow and Associate members based in Chattogram participated in the program and prayed to Almighty Allah for the salvation and eternal peace of the deceased members of ICMAB.


BRANCH COUNCILS activities CBC News

“Class Orientation of January-June’ 2020 session” was held on March 12, 2020 at CMA Bhaban, Agrabad, Chattogram.

Chattogram Branch Council of the Institute of Cost and Management Accountants of Bangladesh (ICMAB) organized “Class Orientation of January-June’ 2020 session” on March 12, 2020 at CMA Bhaban, Agrabad, Chattogram.

Mr. Md. Anisuzzaman FCA, FCMA, Chairman, Chattogram Branch Council of ICMAB presided over the Program while Mr. Md. Jasim Uddin Akond FCMA, Honorable President, ICMA Bangladesh, was present on the occasion as “Chief Guest”. Mr. Abu Bakar Siddique FCMA, Vice-President, ICMAB & Mr. Md. Ali Haider Chowdhury FCMA, Treasurer, ICMAB were present in the program as “Special guests”.

The Chief Guest motivated to the newly admitted students for their success in passing CMA for a global career & bright future. He welcomed and congratulated the newly admitted students and advised the students to reach the goal with the proper study and thanked CBC for arranging such kind of program to motivate newly admitted students.

A large number of senior Fellow & Associate members of ICMAB & students of Chattogram Branch attended the program. The whole program was nicely conducted by Mr. Shahidul Hoque FCMA, Secretary, CBC and vote of thank was offered by Mr. Mohammad Arif FCA, ACMA, Vice-Chairman, CBC.


BRANCH COUNCILS activities CBC News

Reception of ICMAB National Council 2020-22 & Discussion on Professional Matters was held on March 12, 2020.

Chattogram Branch Council of the Institute of Cost and Management Accountants of Bangladesh (ICMAB) organized a Reception of ICMAB National Council 2020-22 & Discussion on Professional Matters on March 12, 2020 at Ambrosia, Agrabad C/A, Chattogram.

Mr. Md. Anisuzzaman FCA, FCMA, Chairman, Chattogram Branch Council of ICMAB presided over and conducted the Program while Mr. Md. Jasim Uddin Akond FCMA, Honorable President, ICMA Bangladesh was present on the occasion as “Chief Guest”. CBC members welcomed the newly elected council members by giving flower bouquet. President, ICMA Bangladesh, assured CBC to give his whole hearted support in his tenure and CBC also assured him to support in all activities. After that

CBC Chairman handed over crests to newly elected Honorable President, ICMAB, for the year 2020 and Mr. Imtiaz Alam FCA, FCMA, Chairman, Infinity Group of Companies & Corporate Support Limited who has been elected first National Council Member of ICMAB from Chattogram region for the period 2020-22. Members of ICMAB National council 2020-22 and Fellow and Associates members of ICMAB Chattogram region attended the program & enjoyed the dinner arranged by Chattogram Branch Council.


Member's AchievementMembers Achievement in Golf -2020On February 27th 2020, the “2nd South Asian Fellowship Golfer Rotarians (SAFGR) Tournament” was held at Kurmitola Golf Club, Dhaka organized by District 3281 Rotary Bangladesh. More than 40 golfers participated from India, Sri Lanka, Nepal and Bangladesh. Our fellow member & Rotarian Mr. Md. Mahsudur Rahman FCMA,FCA (F-487) participated in this tournament and won the Trophy as Runner-up. He also a national & international amateur Bodybuilder.

Another two professional Accountants also won the Trophy in their respective category. They are Mr. A F M Nesaruddin FCA- Past President ICAB and Mr. N K A Mobin FCA - Past Vice-President ICAB.

We would like to congratulate them on this achievement and wish them continued success in future endeavors.

We MournMs. Jannatul Fardaous ACMA (A-1402) passed away on 01 March 2020 at Sheikh Hasina Burn Hospital, Dhaka.

Mr. A. K. M. Shahidul Kirmany FCMA (F-0914) passed on 02 March 2020 at Sheikh Hasina Burn Hospital, Dhaka.

Mr. Khan Abdus Sobhan passed away on 26 February 2020 due to road accident at Muktarpur, Munshiganj. He was 76. He was first Director (Administration) of ICMAB.


IntroducingThe New

Editorial Board Bi-monthly Journal of the ICMAB

Mr. Ruhul Ameen, M.Com, FCMA, a widely travelled personality in home and abroad, an international award winning practicing Cost & Management

Accountants and a Fellow of the Institute of Cost and Management Accountants of Bangladesh (ICMAB) has a proven track record of success for more than 35 years in different foreign and local Companies.

The QUANTUM PRO-MASTER Mr. Ameen was the Managing Director of BANGLADESH THAI ALUMINIUM Limited the pioneer aluminum extrusion factory of the country for the last four years of his service career. Prior to this he was the Deputy Managing Director of Excelsior Shoes LIMITED (ESL) for more than two decades. He joined ESL, the country’s first and the largest 100% export oriented Athletic shoe manufacturer as its Marketing Manager in February, 1990. In 1991 he was promoted as Vice President to assist the Company’s Managing Director in the overall management of the company, especially in the field of

Marketing, Finance, Administration and high level public relation at home and abroad. He became the Director General of the company’s overseas affairs based in Moscow in 1992. He was promoted to the post of Deputy Managing Director in 1995. His active relationship with many people of every profession and social sector helped him to raise fund from the public in the year 1996 through the Stock Market. His active leadership fetched over Tk. 200 crores as public subscription out of the public offer of Tk. 15 crores. In recognition to his loyalty and efficiency the company’s Board has also inducted him as a Director in the same year. Eventually he led the sports shoes sector as founding President until 2014.Prior to his joining the Excelsior Shoes Limited, he held very senior positions as decision maker in many local, multinational and foreign companies like BEXIMCO, SIAMS Superior (HK) Ltd and PMP Group of Companies. He served this organizations for four years each and contributed significantly.

Mr. Ameen Served ICMAB in different capacities. He was the Vice President of ICMAB-2004, Secretary of ICMAB-2002 & 2003,Chairman, ICT Committee-2011 and Publication Committee-2012 & 2013 of ICMAB,Chairman-1990 & Treasurer-1989 of Dhaka Branch Council of ICMAB, Chapter Member, ICMAB-1977-1978,Member & part time Lecturer of Chittagong Branch Council from 1985-1987and Editor of the Monthly newsletter of Dhaka Branch Council of ICMAB-1988-89. He was the Govt. nominated member in Power Development Board and Securities Printing Press as professional accountant and presented papers as Resource Persons on many professional matters in home and abroad. He Presented a Paper “Cost Dynamics Future Direction of Management” as Resource Person at a conference held at Colombo organized by the Certified Management Accountants of Srilanka in the 2002.

Mr. Ameen is the President of Dr. Abdur Razzak Government Primary school in Brahmanbaria, the Advisor to District Governors of LIONS INTERNATIONAL District 315 B2, the past President and Advisor of Lions Club of Dhaka Glydia, the past District Chairman and Joint Cabinet Treasurer of Lions Club International, the Regional Advisor to the Chairman of Lions Club International-2012, Life Member of Bangladesh Economic Association, Life Member of Brahman Baria Zilla Samity, Chairman of Manob Sheba Samity, Manob Sheba Institute Limited and MSTH, President of PNS Angelica Co-operative Society, he is also an active life member of Niketon welfare society, Gulshan since 2009. Mr. Ameen is a Writer in National Dailies, Journals, Magazines and speaker on different economic & professional issues in Radio & Television. He was the Rapporteur of SAFA Conference, Co-chairman of SAFA Cultural Committee-2002 and SAFA Souvenir Committee-2013. He actively Participated in CAPA Conference in Dhaka. Mr. Ameen received Crest of Honor from different socio-cultural and anti-crime organizations including the best President Award from Lions Club of Dhaka Glydia and Best Chairman award from the ICMAB, Dhaka Branch in consecutive years. He was the Director, Bangladesh Economic & Industrial Forum. He contributed his time in mentoring the students as teacher and examiner.

Pen Portrait of theEditor, The Cost & Management


Pen Portrait of the Associate Editor,

The Cost & ManagementPen Portrait of the Associate Editor,

The Cost & Management

Dr. Md. Saiful Alam is currently working as an Associate Professor in the Department of Accounting &

Information Systems, University of Dhaka. He qualified as a Cost & Management Accountant in 2009. At present, he is a fellow member of the institute.

Dr. Saiful started his career in 2007 as an articled student in a renowned Chartered Accountancy firm of Bangladesh. He spent over a year there and had been involved in audit, assurance and consultancy services for dozens of leading national and multi-national corporations. In 2008, he joined as a Lecturer in Accounting at the University of Dhaka. He obtained highly competitive Commonwealth Scholarship in 2010 to pursue an MSc in Accounting & Finance at the University of Manchester, UK. After MSc, he resumed his position at the University of Dhaka in 2011. He was promoted as an Assistant Professor in 2012 and served the department till the beginning of his PhD study in 2014. Dr. Saiful was awarded with the prestigious Adam Smith Business School PhD Studentship, University of Glasgow, UK. His PhD thesis titled ‘Management Accounting, Control and Microfinance Operation: Three Papers’ where he studied the use of management accounting and control techniques in microfinance operation. In particular, his thesis highlights the importance of informal management accounting and control along with their formal mechanisms. Dr. Saiful briefly worked for the University of Hull, UK as a Lecturer in Accounting after his completion of PhD in January 2018. He came back Bangladesh in 2018 and resumed his position at the University of Dhaka.

Besides his permanent role at Dhaka University, Dr. Saiful works as an expert trainer of Bangladesh Power Management Institute (BPMI). Also, he teaches different modules at the ICMAB and serves as committee member of other public universities. He has published 12 papers in different journals and presented academic papers in various conferences of Bangladesh, United Kingdom and Canada.

Mr. G M Omar Faruque Chowdhury has been working as Chief Financial Officer & Company Secretary,

in Elite Paint Group Of Companies. Mr. Chowdhury qualified as a CMA from the Institute of Cost and Management Accountants of Bangladesh in 1997 and became the Fellow Member of the Institute of Cost and Management Accountants of Bangladesh in 2007. Mr. G M Omar Faruque Chowdhury also completed MBA from The Institute of Business Administration, IBA of Dhaka University. Ex Notre Damian Mr. Chowdhury is a trained capital market expert and Lead Auditor in Quality Management System ISO9001.

During his professional career Mr. Chowdhury served various organizations Scholastica, SF Denim, Lotus Kamal, Swan Foam, Generation Next, Interstoff Apparels Ltd, Aman Group , Opex and Sinha group and Ananta Group. His is a weathered Financial Modeler with indicators on experience in Supply chain, Company affairs, HR & Admin, Cost Accounting, Auditing, Taxation and VAT. Mr. Chowdhury is an alternative investment knowledgeable in Bangladesh.

Mr. Chowdhury is always affianced with the social networks. He is engaged with many social and religious activities and networks. He developed E Blood bank HEALTHPLUSE and E Sadaka platform for developing Mosque, Madrasa and helping the orphans.

He obliged the Institute of Cost and Management Accountants of Bangladesh, ICMAB as Teacher, Examiner helping the academic boulevards of the Institute. He presented papers ion EPS and ISO 9001 in the Institute of Cost and Management Accountants of Bangladesh, ICMAB. He also served the Institute through Dhaka Branch Council as elected Treasurer, Secretary and the Chairman in 2012.


The ICMAB Council 2020

Mr. Md. Jasim Uddin Akond FCMAPresident

Mr. Mohammed Salim FCMAMember

Mr. Md. Abdul Aziz FCMAMember

Mr. Aby Sayed Md. Shaykhul Islam FCMAMember

Mr. A.K.M. Delwer Hussain FCMAMember

Mr. Abu Bakar Siddique FCMAVice President

Mr. Md. Munirul Islam FCMASecretary

Mr. Md. Ali Haider Chowdhury FCMATreasurer

Mr. Md. Mamunur Rashid FCMAVice President

Mr. Arif Khan FCMAMember

Mr. Md. Abdur Rahman Khan FCMAMember

Mr. Mahtab Uddin Ahmed FCMAMember

Mr. Md. Kausar Alam FCMAMember

Mr. Imtiaz Alam FCMAMember

Mr. A.K.M. Kamruzzaman FCMAMember

Kazi Muhammad Ziauddin FCMAMember

Mr. Md. Shakhawat HossainMember

Mr. Sultan MahmudMember

Dr. Mohammad MohiuddinMember

Mr. Abdullah Al MamunMember

The ICMAB Council 2020

Regd. DA 34/82TK. 200.00 (home) US$ 8.00 (overseas)ISSN 1817-5090

ICMA Bhaban, Nilkhet, Dhaka-1205, BangladeshTel: 9615460, 9611799, 9615477, Fax: 88-02-58615703Email: [email protected], Web : www.icmab.org.bd

&29,' - ICMAB

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