Last Updated 16 Jun 2020

Corporate Social Responsibility at MTN Nigeria

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    INTRODUCTION

    Corporate social responsibility has been in debate since 20th century even though there are some argument for and against if it were really the duty of an organization to provide some kind of social service to the people in its environment even though the organization generate both natural and human resources from its environment while at the same time exploit the opportunity meant to be enjoy by the society if without the existence of such organization.

    The Corporate Social Responsibility of MTN as an Information and communication Technology (ICT) Company will be examine in detail.

    MTN communication limited as a subsidiary of MTN group is the largest .MTN is one of the leading telecommunication Company that operates in 21 Africa countries and Middle East.

    MTN secured a licensed to operate digital Global System of Mobile Communication in Nigeria in February 2001 from the commission and based on that, it emerged as the first telecommunication company to make a commercial call on its GSM network.

    The rapid growth in the business of MTN as a telephony company gave the need for the company to provide its environment with some social service.

    WHAT IS CORPORATE SOCIAL RESPONSIBILITY?

    The Corporate social Responsibility (CSR) has been defined by different scholars so as to different individual stakeholder.

    Lawrence and Webber, (2008) ‘‘Corporate social responsibility (CSR) means that a corporation should be held accountable for his action that affect the society, people, communities and their environment.’’

    CSR simply means the duty of care owe the people, society and its environment at large by an organization as a result of damages cause in the line of carrying out their daily business activity such as air pollution, Evaporation, flow of waste in the stream, damaging of road due to heavy vehicles to mention but few.

    The social responsibility requires an organization to equate the goals to be achieved and the cost of achieving the set goals.

    COMPONENT OF CSR

    Ethical Consumerism

    Community Involvement

    Treatment of Customer

    Socially Responsible Investment

    Environment

    Treatment of Employee

    Social Reporting

    Cause related marketing

    As earlier said, the argument for and against Corporate Social Responsibility will be examine

    ARGUMENT FORARGUMENT AGAINST
    Promote business value and reputationConsistency in the profit of an organization.Amend any social discrepancies that may occur.Serves as a medium of saying thank you to the populace

    Reduction in profit sharingAdditional cost of competing with competitorsCost may outweigh benefit in terms of investing in capital projectLack of Information

    IMPORTANT OF CORPORATE SOCIAL RESPONSIBILITY

    In some years back, the concept of Corporate Social Responsibility (CSR) has been a very good strategy for most of the business organization to escape through in a highly competitive market environment. In a situation where there is a variation and unstable scales of preference from the consumers, the Corporate Social Responsibility is therefore the most applicable tool in order to survive.

    In the event of Corporate Social Responsibility, most company tends to reduce their operating cost for been socially and environmentally responsible.
    A company been socially responsible tends to gain the attention of more customers.

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    . Business is more responsive to its Ethical environmental and social performance because of the globalization. This tends to put more pressure on careful selection of strategic tools
    Improve organization efficiency.
    Increased in the investment opportunity open to the business.

    REASONS FOR COMPANY TO ADOPT CORPORATE SOCIAL RESPOSIBILITY

    There are many reasons or motives for an organization to adopt corporate social responsibility. It is argue that shareholder been one of the driver of CSR constitute to the growing of Social Responsibility. Below are some of the factors giving rise to the adoption of corporate social responsibility by a business organization:

    Public Trust: Lack of public trust in corporate management has contributed to the growth of CSR such as case of ENRON in the United State of America.
    Globalization: The act of increasing trade international has giving rise to SR. Counter Globalization movements calls for transparency among the companies.
    Increased In Competitions: Some of the company adopts corporate social Responsibility due to the competitive pressure such as Banks.

    CORPORATE SOCIAL RESPONSIBILITY AND STRATEGY OF MTN NIGERIA

    MTN Nigeria been socially responsible created a way to drives its social responsibility across the whole 36 states in the country together with the Capital territory.

    MTN Nigeria created a part called MTN Foundation through which they get to people around. This Foundation was incorporated in the year 2004 as a way to reward the people in their environment.

    Up to 1% of their profit after Tax was use to fund this foundation in other to create a unique impact and corporate social driven project.

    A good networking of both locally and internationally has made it possible for the organization to execute its various projects.

    In creating MTN foundation, they have make a lots of impact while also they have a good model for better corporate citizens and make it possible for the group like stakeholders, Tax authorities, Government etc to endorsed their foundation.

    REASONS FOR THE FOUNDATION

    The MTN Nigeria created the foundation solely for the creation of Economics empowerment, Good education, Good Health Services in a way to make a positive impact on their brand.

    ECONOMIC EMPOWERMENT

    Through the MTN foundation and its Economics Empowerment, It has been possible for them to at least be working how to eradicate poverty in so many ways such as granting micro credit, creation of employment, acquiring of necessary skill for a particular job (skill acquisition) building capacity.

    As part of MTN foundation’s economics empowerment, It has been possible for MTN to work alongside some other reputable organization in other to achieve the purpose for which the foundation has been set up.

    The area at which the foundation has contributing to the growth of their community and also to the expansion of their brand will be examined in details:

    MTNF Rural Telephone Project (MTNF RTP) (In partners with growing business foundation (GBF) and the International Finance Corporation (ICF)

    Description of the Project:

    This project is set up to equip small, medium and entrepreneurs by providing them with equipment needed to start their own business such as telephone business. Ths project has help eradicate poverty in their chosen communities and since the creation estimated figure of 4,500 has benefited from the project.

    The project has been able to provide the following:

    Mobile Phone
    Recharge cards
    Yanggi Antenna
    Solar Charger
    MTN promotional Materials such as Umbrella, Table, Chair, Banner, T-Shirt, Face cap and lots more
    A-Week training on basic accounting knowledge and customer service.
    MTN foundation Rural Housing Project (In partnership with Habitat for International (HFHI).

    Description of the project:

    In view of the accommodation problem encounter by some people in the country, The MTN foundation has created the project to provide shelter for the people with low-income.

    Objective of the project:

    2 bedrooms, a living room, toilet shower and the kitchen.
    Good Electricity
    Constant running water
    Sanitation facility
    MTN foundation- Lady Mechanic Initiative (MTNF-LMI)

    Description of the project:

    The acquisition of skill as a mechanic has always been classify as a men job only but with the introduction of Lady Mechanic Initiative by MTNF has made it possible for the foundation to empower and rehabilitate 50 young women by providing them with auto care skills

    Objective of the project:

    Practical Involvement in auto mechanic training at Pay & Train centre
    Provision of lecture on the theoretical aspect of Mechanical Engineering
    Lecture on the social and health related issues on monthly basis
    Industrial attachment at Peugeot Automobile for 3 months in Kaduna, part of Nigeria
    Industrial attachment at Coscharis Motors for 3 months in Lagos
    Provision of Driver’s License and Driving test
    Trade test Certification
    Internship programme at Mitsubishi, R.T. Briscoe, Elizade and Toyota
    MTNF ‘How to Guide’ project in partnership with Fate Foundation

    Description of the project:

    This project is designed to create wealth and alleviate poverty among the Nigerian youth by making available for them a small business opportunity and thus provide reliable economics empowerment.

    Objectives of the project:

    Provision of adequate training for the potential beneficiaries of the small scale business opportunity.
    Empowering 120 people by providing recharge cards and other MTN promotional materials
    Printing of 5000 copies of a guide on CALL CENTRS.
    MTNF- Farm Fresh Milk F.L.O.W project (Fulanis Living Optimal Willingly) project in partnership with Integrated Dairy Farm Ltd-Farm Fresh)

    Description of the project:

    This project was completed in year 2009; it involved provision of support to almost 150 cattle-rearer through cross breeding of Friesian bulls with local cows in other to produce and sale of new quality and quantity of milk.

    Objective of the project:

    70 Friesian Bulls
    3 artificial Insemination Kits and Accessories
    3 Liquid Nitrogen Containers
    3 First Aid Boxes
    3 Motor Bikes
    1 tractor and implements
    1 hilux pick up
    Veterinary drugs
    MTNF – Children’s Development Centre (CDC) ‘Disability and U’ Road show and seminar.

    Description of the project:

    This is a program designed to create and increase the awareness of the public on the people with physical and mental disabilities through banners, road shows and workshop/seminars across the country.

    MTNF Disability support project (MTN DSP) in partnership with independent Living Programme for Person with Disabilities.

    Description of the project:

    This was created to increased and improved the quality of life of those that lives with disabilities by providing for them the mobility aid and appliances such as crutches wheelchair, guide canes hearing aid to mention but a few. This will help them in carrying out their daily activities without experiencing any difficulties or limitation.

    Objectives of the project:

    Provision of mobility aids and appliances such as wheel chairs
    Creation of vulnerability Index Questionnaire
    Administration of Vulnerability Index
    Verification and selection of beneficiaries
    Distribution of the equipments
    MTNF Skill Acquisition Project for the People Living with Disabilities in Partnership with Friend of the Disabled (FOTD).

    Description of the project:

    The project was organize to empower 45 disabled youth across the nation with diverse skills such as Tailoring, Cobbler and welding to enable them make living successfully.

    Objective of the project:

    All the entire area of skill acquisition centre were renovated
    The boys and girls hostel were been renovated
    Training gadgets and consumables for welding, cobblers and tailoring were provided.
    Provision of 30KVA Generator
    A project vehicle was provided
    Provision of 10 Computer systems

    The MTN awareness in the need to promote corporate social responsibility and environmental has earned the corporation, a reputation as ‘The N0.1 CSR telecoms company’ and been the first mobile company to established a foundation. This has lead to the economics’ growth and development of Nigeria by helping to unleash the strong developmental potential through the provision of world class communication, innovative and sustainable social responsibility initiatives.

    CONTRIBUTIONS OF CSR TO CORPORATE STRATEGY

    Corporate Strategy is the analysis of how to achieve the set target and purpose for which the organization is set up. There are three main types of corporate strategy namely:

    I. Growth

    II. Stability

    III. Renewal

    Growth Strategy

    The means by which an organization tends to expand its market operation and product offered either through its current market or introducing new business. Here are some growth strategies:

    Concentration

    Vertical Integration

    Horizontal Integration

    Diversification

    MTN Nigeria adopted growth strategies by concentrating on their market and ensure expansion on the market.

    The most strategic of CSR occurs when a company adds a social dimension to its value proposition and ensuring social effect on integral part of the overall company strategy.

    CONCLUSION

    Corporate social responsibility is the guide to business ethical behavior

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    Corporate Social Responsibility at MTN Nigeria. (2019, Mar 25). Retrieved from https://phdessay.com/corporate-social-responsibility-at-mtn-nigeria/

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