RESEARCH ARTICLE Business case of corporate social responsibility: A case study on Columbia Garments Limited in Bangladesh S.M. Akterujjaman 1,2 | Swapan Kumar Saha 2 | Md. Arafat Hossain 2 1 Nyenrode Business Universiteit, Breukelen, The Netherlands 2 Department of Business Administration, BGMEA University of Fashion & Technology, Dhaka, Bangladesh Correspondence S. M. Akterujjaman, PhD Candidate, Associate Professor, Department of Business Administration, BGMEA University of Fashion & Technology, Nishatnagar, Turag, Dhaka‐ 1230, Bangladesh. Email: smakter2010@gmail.com Abstract This paper provides insight into the business case of corporate social responsibility (CSR) at Columbia Garments Limited in Bangladesh. Therefore, the study analyses how CSR practices have resulted in an increased financial and nonfinancial perfor- mance of this factory. Qualitative data were collected from primary sources through observation and in‐depth interview with the key person who is directly involved with CSR planning and implementation in the company. Secondary data were collected from annual reports, books, articles, periodicals of different domestic, and interna- tional agencies. Based on these considerations, a questionnaire and an interview were used as data collection methods. The result showed that the overall cost of the orga- nization increased because of CSR implementation, but the company benefited finan- cially in the long run through reduced labor turnover rate, increased workers' efficiency, increased audit quality, enhanced productivity, and motivated employees. KEYWORDS Bangladesh, business, corporate social responsibility (CSR), implementation, ready‐made garments (RMG) 1 | INTRODUCTION This paper provides insight into the business case of corporate social responsibility (CSR) at Columbia Garments Limited (CGL) in Bangladesh. Therefore, this study needs to analyze how CSR practices can result in the increased financial and nonfinancial performance of this factory. CGL was one of the pioneers in lead platinum certified ready‐made garments (RMG) factories in Bangladesh. There is a bilateral agreement between Bangladesh Garment Manufacturers and Exporters Association (BGMEA) University of Fashion & Technol- ogy (BUFT) and CGL that facilitates the BUFT faculty members' access to the required information. It is also mentionable that CGL is in the surroundings of BUFT, allowing researchers to visit CGL frequently for collecting necessary data. The CGL factory has been selected because it is an interesting case in point. Due to disasters such as Rana Plaza collapse and the Tazreen Fire, production of RMG in Bangladesh is in a general opinion often associated with hazardous working conditions. It is almost a consequence of outsourcing to low‐cost production countries that these unsustainable practices occur. CGL is working in the same cir- cumstances in Bangladesh and proves it is possible to produce low‐ cost garments without unsustainable outcomes. Therefore, it provides evidence that sustainable production of garments is not just an outcome of a market system but also a matter of managerial focus. This paper provides insights into how CGL develops a business case for integrating many sustainability issues in their operations due to their CSR activities. This business case is based on both internal mechanisms linked to CSR and external mechanisms, especially in relation to customers. The customers of garment products are becoming more and more aware of the society and the environment. For this reason, customers like to select the garments factories that give more concentration on CSR. When purchasing particular RMG products, 88% of consumers showed their consciousness regarding the involvement of the compa- nies in social and environmental contribution (Epstein‐Reeves, 2010). If RMG manufacturers consider CSR as their social responsibility, then Received: 11 February 2019 Revised: 24 April 2019 Accepted: 25 April 2019 DOI: 10.1002/bsd2.67 Bus Strat Dev. 2019;1–7. © 2019 John Wiley & Sons, Ltd and ERP Environment wileyonlinelibrary.com/journal/bsd2 1