'New trend of noncompliant business an upcoming threat’

Bangladesh’s biggest bilateral chamber of commerce has urged the government to prevent a new trend of doing business with some Chinese and Indian companies without adhering to compliance formalities.

“It can cause a big disaster for Bangladesh,” President of the Bangladesh German Chamber of Commerce and Industry (BGCCI) Shakhawat Abu Khair Mohammed Ullah said on Wednesday, ahead of the third Global Social Responsibility (GSR) Conference in Dhaka on Thursday.

He told bdnews24.com that with rising labour costs in China and India, some companies were coming to Dhaka and importing products for their own use “at cheaper rates and without caring for any compliance by the company”.

The BGCCI president said this was happening particularly in the leather industry having bright export prospects.

But the industry was unable to realise its potentials since the Bangladesh leather industry lacked global recognition as a business compliant industry due to the absence of a central effluent treatment plant in the tannery zone.

“Some businesses are making money for the time being (by virtue of the new trend), but, on the whole, others will be discouraged to invest to make themselves compliant with global practices.

“If this trend is not stopped, it will be disastrous for Bangladesh by giving it a bad name,” he said, urging prompt government action.

The BGCCI will hold a day-long conference themed ‘Shareholder value vs social responsibility’, as part of its long-term vision of “branding Bangladesh” with “responsible businesses”.

BGCCI briefed journalists about the conference at its office on Wednesday.

It is the biggest bilateral business chamber in the country with 600 member companies.

The two-way trade between Bangladesh and Germany recently reached $5 billion. Germany is Bangladesh’s second biggest export destination with garments comprising the bulk of its purchases.

Top managers, experts, ministers, and ambassadors of various European countries as well the US and Bangladesh will take part in this conference.

The panels will discuss issues on readymade garment and fire safety, leather industry, environment, social protection of workers, and Technical and Vocational Education and Training (TVET).

With economic growth, Bangladesh is now facing the challenges of water contamination, energy shortage, waste management, and social protection issues.

The BGCCI said at the press briefing that if these issues were not “timely and properly” addressed, they would undermine the country’s growth path and result in “causing potential harm to society and the environment”.

Thursday’s conference would highlight the benefit of addressing environmental and social impacts with innovative and responsible solutions in response to those challenges.

The BGCCI says it will also provide a platform for dialogue between American and European companies and their Bangladesh counterparts, while making recommendations for policy-makers to develop tools for sustainable development.

The president said the conference would aim to make policy-makers, media and everyone else to make them realise that sustainable business was possible.

For example, he said, factory effluents heavily impact the environment.

“But we want ‘zero-discharge’ factories. And it is possible using new technology”.

“We are using this technology is some of our factories,” he said.

“But government should offer incentives to environment-friendly businesses to encourage others to invest in technology,” he said.

BGCCI Executive Director Daniel Seidl said their focus would be on how to make businesses sustainable.

He said companies must make profits, but they must care for the people and for the planet at the same time.

“Unfortunately, some companies only think of profits. This mindset must change.”

He said senior journalists would be the moderators of all panels and people would be free to ask questions during the discussion sessions.

“Our aim is to brand Bangladesh,” he said, but the country has to take a “very tough decision” regarding its business policy – whether to produce cheap products and make small profits or to sell high-end products by maintaining full compliances and make big profit and brighten the country’s image.

“We (Bangladesh) have good business, but a bad image,” he told bdnews24.com, “but many countries, despite their bad business, have a good image”.