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Corporate Social Responsibility at MTN Nigeria

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.And it makes the company be more visible and while serves as a medium by which the company will communicate to the public.
The Strategic Management both internal and external risks can be control by corporate social responsibility as well as social and environmental factors
A company been socially responsible tends to gain the confidence and trust of the investors and also it can be used as mean of influencing the decision of investors.
In the areas of employee, all worker wish to work in an organization that really cares about the welfare of its staff and its environment.
The concept of corporate social responsibility increased the reputation of the company and customer and investor and/or client can easily be influenced by the reputation.
Promote organization reputations and brand.

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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. Being socially responsible is the most important and key areas to the stakeholders and on corporate reputation.

The incorporation of Corporate social responsible into business mainstream practice it shows your corporate reputation while it does affect the opinion of the company.

RECOMMENDATIONS

In view of the conclusion above, The researcher thereby recommend to all the business, The Corporate social responsibility as the one of the channel to which a business organization could overcome some of the challenges that militating against business aims and objective such as losing to competitive, mimic of product while it will allow the business to promote business value and reputation.

REFERENCES:

http://www.ecrc.org.eg/Uploads/documents/Articles_CSR%20main%20concepts.pdf

Accessed: June 20th, 2011

http://www.mtnonline.com/mtnfoundation/

Accessed: June 20th, 2011

http://www.mtnonline.com/mtnfoundation/about-us/who-we-are

Accessed: June 20th, 2011

http://www.mtnonline.com/mtnfoundation/portfolio/economic-empowerment

Accessed: June 20th, 2011

http://www.mtnonline.com/about-mtn/corporate-information

Accessed: June 20th, 2011

http://osha.europa.eu/en/topics/business-old/csr/index_html

Accessed: June 20th, 2011

http://graphics.eiu.com/files/ad_pdfs/eiuOracle_CorporateResponsibility_WP.pdf

Accessed: June 20th, 2011

Lawrence and Weber, (2008) Business and Society, Mcgraw-Hill, International edition, 12th Editions.

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