Corporate Social Responsibility (CSR) has been described as corporate citizenship, moral and transparent business values, ecological sustainability or corporate charity. It is a business practice to deliver sustainable and ethical values to the equity holders, employees, customers, environment, society, government and other stakeholders at large.

Mercantile Bank Limited (MBL) is fully committed to conduct its business activities in an economically, environmentally and socially sustainable manner. The Bank always fosters the motive in mind to build a ever-lasting warm relationship with the customers, employees, capital providers, community people, regulatory bodies and other stakeholders. Keeping this motive in mind, MBL always cares all of its stakeholders and the community people since its inception.

For Community

As we all know that banks act as a 'Trustee' for the society. Therefore, MBL behaves in a responsible and ethical manner with the community people. The Bank always contributes towards changing the quality of life of the people as the Bank wishes to see them leading their life in a standard way. The Bank serves by adhering closely the national policies and thereby contributing towards the progress of the nation. In maintaining its responsibilities to the society where it operates its business activities, MBL focuses in the areas of employment, education, professional development and contribution to the underprivileged people.

Employment

MBL plays an important role in creating job opportunities for the people. Each year, the Bank creates employment opportunities for fresh graduates as well as experienced officials. In 2008, a total of 169 fresh graduates have joined with MBL family. The new recruits have joined as Probationary Officers (82) and Assistant Officer (87). Besides, experienced bankers are also being appointed in the Bank as and when required. At the end of 2008, the Bank has 1,115 officials in its payroll. Moreover, Bank's financing to the SME sector will indeed promote employment generation.

CSR Activities of the Bank in 2008 and one year back :

Education

MBL desires for an educated nation. The Bank through its Foundation, patronizes the education sector of the country. The Bank provides scholarship to the needy and brilliant students of different educational institutions. Best two MBM graduates of BIBM gets financial awards from the Bank. In the year under review, the Bank has provided scholarship worth BDT 1 lakh in this regard. The children of the employees of the Bank also get scholarship for brilliant results. MBL has also donated BDT 1.00 million to Bangla Academy for research in Bengali Literature with a view to aid academic research, which would eventually uphold Bangladeshi culture across the Globe.

Professional Development

Professional education has been encouraged in MBL. The Bank believes that to be more professional one should gather professional knowledge. The Bank is continuing its supports to the professional bodies as it continued earlier. The Bank encourages it employees to complete Banking Diploma by rewarding BDT 5,000 for completion of part-I and BDT 7,000 for completion of part-II.

Support to Destitute

MBL always shares the well and woe of the distressed people. Mercantile Bank Foundation has been set up to give financial support to the underprivileged communities. Through this Foundation, the Bank concentrates on addressing the needs of physically disable people such as blind, acid victims etc. The people of our country are used to be the victims of natural calamities every now and then. The Bank strives to assist the victims of natural disaster by providing financial help in rehabilitation and rescue purpose. In the year 2008, the Bank donated BDT15.30 lakh for helping the disaster victims.

For Customers

MBL provides the most efficient and need-based services in every aspect of its business by being more innovative and professional. The needs and expectations of the customers drive us to the development of new banking products and services. MBL uses trained personnel and state-of-art technology for delivering prompt services to the customers.

The Bank has high reputation for delivering better customer service and is also committed to uphold its image in coming days. Customer Service Excellence is an integral part of its strategy to stay ahead in an extremely competitive banking industry. To attain a continuous improvement in customer service, all branches of our Bank have established 'Customer Complain and Suggestion Box'. At branch level, officials are deployed to assist and interact with customers on banking queries and provide prompt solutions of the queries.

A number of banking products has been launched for the people who have traditionally been excluded from the banking services. 'Women Entrepreneurs Development Scheme' has been introduced in the Bank for the women who are experienced but dearth of capital is hindering their initiatives to start business. An agreement with Women Entrepreneurs' Association, Bangladesh (WEA) has been signed to encourage women entrepreneurs to come forward in the business. We have also introduced SME services for the marginal people of our country.

For Employees

MBL, which has 1,115 employees provides due importance for promoting the well-being of its employees by offering attractive remuneration and other fringe benefits. Employees' remuneration and benefits packages are monitored and regularly reviewed to ensure a competitive package in the industry. Incentive bonus from yearly profit is also rewarded to the employees on performance basis. Employees are awarded all sorts of supports to pursue professional educations. The Bank provides its employees personal loan facilities such as car loan, furniture loan and other loan to make their life easier and comfortable. Growth and progression opportunities for employees are available in the Bank. With competitive remuneration packages and employees' well-being is looked after through attractive benefits such as medical coverage, loans at lower rate of interest for housing and car as well as other forms of financial assistance. MBL seeks to provide a standard quality of life to its employees.

The Bank ensures a hygienic and convenient work environment for its employees. Performance and merit are the basis of promotion for the employees. The Bank respects the worth and dignity of individual employees. Importance has been given for building skill and efficiency of the employees to do their assigned day-to-day jobs with due confidence by bringing them in the 'Training Net'. For this purpose,Training Institute of the Bank has been refurbished in a large and well-equipped premise located in Swedesh Tower, 41/6 Purana Paltan, Dhaka, which has a well-resourced library. The trainees are being provided residential amenities in the Training Institution.

For Equity Holders

Maximization of wealth of the equity holders gets top listed priority in the Bank. MBL is committed to its capital providers to deliver fair returns on their investment. Equity holders are always concerned to see their institution progressive. The Bank runs its business activities keeping in mind as its shareholders wish to see it. MBL is consistently delivering a superior return to its shareholders and investors. In 2008, Dividend Payout Ratio was 58.41%.The Bank has achieved BDT 34.24 as EPS and declared Stock Dividend @ 20% in the year 2008.

For Environment

MBL is concerned with conservation and preservation of the environment. There is a rising level of awareness and demand to address the issue of sustainability of the environment because the whole world is increasingly experiencing the devastating effects of environmental changes for Green House affects due to Global Warming. The Bank is mindful of its responsibilities to the future generations by playing its part in promoting environmental awareness and in the conservation of the environment.

The Bank takes environmental issue very cautiously while financing new projects. It finances only in those projects, which are environment-friendly. Early detection of environmental risks is an integral part of credit appraisal system of the Bank. Ecological damage will sooner or later harm not only the society but also the Bank in the form of loan losses or image problems. In this regard, the Bank sent two officials to the Hague, Netherlands for training on 'Environment and Social Management Course for Financial Institutions' conducted by FMO, Netherlands. The Bank creates awareness among people of the community about the effects of environmental pollution and its consequences.

For Cultural Activities

MBL fosters the culture of various communities. The Bank is relentlessly supporting traditional games and sports by taking some non-profit initiatives. As a recognized benefactor of culture, the Bank provides funding for the publication of art books that familiarize the Bank. A variety of cultural institutions have been benefited by the initiatives of the Bank. The Bank also supports the writers, musicians and other performers in their inventive activities.

The Bank patronizes different cultural activities. A number of cultural programs encouraging different communities have been sponsored by the Bank. The Bank has sponsored National Chess Championship, Tennis competition and Swimming competition in different times. In 2008, the Bank was the Official Sponsor of '23rd National Swimming Championship Competition' arranged by Bangladesh Swimming Federation. BDT 1 (one) million has been donated to celebrate this ceremony.

Mercantile Bank Foundation

Mercantile Bank Foundation has been established to act as a helping hand to the community people and Bank's commitment towards CSR. The Foundation always plays its role by extending charitable and beneficial social services. The Foundation has been promoting a dialogue between the Bank and its community for over nine years. Through its programs, the Foundation strives to preserve and promote cultural heritage and support artistic expression. It also provides funding for state-of-art research, as well as for innovative projects in the areas of education, social insertion and disability.

Objectives of Mercantile Bank Foundation

Mercantile Bank Foundation has been formed with the aim of achieving some objectives, which has been stated below:

1. To take possible initiatives in increasing social well-being and alleviating poverty from the country.

2. To support the education by establishing new educational institutions, providing stipends/ scholarship to the poor and brilliant students.

3. To provide awards to the Scholars in eight significant arenas for their outstanding contribution. These arenas are:

• Bengali Language and Literature
• Education and Culture
• Research on Liberation War
• Economy and Economic Research.
• Commerce and Industry
• Medicine, Science and Technology
• Journalism and
• Sports

4. To assist research activities on Bengali Literature through Bangla Academy.

5. To support the writers and publishers through purchasing their books and distributing these to different educational institutions on the occasion of national and historical days.

6. To assist the unemployed young to make them self-sufficient.

7. To assist the rootless and distressed orphans through taking appropriate steps for their mental perfection and self-support.

8. To support in establishing hospitals, clinics, etc. for the improvement of the health sector, to donate one time financial endowment to the poor artiste, literature-patron and fatal disease-affected poor patients, to support the poor father for arranging his daughter's marriage, to help poor but bright students.

Financing of the Foundation

• The Bank contributes 1% of Operating Profit or BDT 4.00 million, which one is maximum.
• The Sponsors of the Bank donates to the Foundation a lump sum amount at a time or amount on yearly- basis from their own funds or their own business source.
• Grants and Donations from persons/ organizations of home and overseas.