A CONCEPTUAL MODEL: THE IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON LEVERAGE
Bangladesh is the ruling exporter to almost all the richest buyers, brands and countries worldwide because of its cheap labor, which often facing workplace issues like low wages, health and safety issues, gender discrimination, harassment at the workplace etc. At the same time, in very recent times, Bangladesh High Court withdraws 52 substandard products from the market. The court urges the government to declare a war on products adulteration. On the other hand, recently the country encountered a huge disaster on the debt level of the companies that made business companies unable to repay their loans. Therefore, this study proposes to explore the conceptual model on the effect of workplace CSR and marketplace CSR towards company leverage. Though corporate social responsibility generates considerable interest in western countries, the concept of CSR is still poorly understood in the public sector of Bangladesh. Due to the current crisis of Bangladesh, this study incorporates two essential CSR elements namely, workplace and marketplace. In spite of considerable academic research in CSR landscape, this particular relationship not yet been established. Hence, this study provides a better and clear understanding on how the workplace CSR and marketplace CSR give impact to the leverage cost. In order to carry out the research, this study intended to collect secondary data from annual reports and conduct a questionnaire survey among the top management leaders of the public listed companies in Bangladesh. The discussions suggest the government and the regulatory bodies’ that workplace and marketplace CSR practices may reduce the debt burden of the companies. The high burden of capital structure cost may threaten the Bangladesh PLC’s to bankruptcy.
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