The Corporate Social Responsibility In Nigeria’s Telecommunication Sector

Project and Seminar Material for Mass Communication

The Corporate Social Responsibility In Nigeria’s Telecommunication Sector

Abstract

The topic of the research is Corporate Social Responsibility in Nigeria’s Telecommunication Sector (A case study of Globacom Nigeria Limited, Enugu). The researcher used survey design in the study.

The population of the study was one hundred and twenty; comprising of both staff and customers of Globacom .The sample size was ninety two and it was determined using the yaro Yamane formula.

The research used both the primary and secondary sources of data in the course of study. The primary data were collected through the instrument of questionnaire, interviews and observation. The secondary data were collected from text books, journals, magazines, newspaper and libraries.

The research finding of the project work revealed that social responsibility programmes are necessary .the findings also unveiled that Globacom Nigeria, a telecommunication firm carries out its social responsibility programme in its host community. The researcher recommended that the company should increase and expand its social responsibility programmes. Corporate social responsibility is therefore something that a company should try and get right in implementing. It is something that business today should wholeheartedly be committed to. The danger of ignoring social responsibility is too dangerous.

Table of Contents

  • Title page
  • Certification
  • Dedication
  • Acknowledgement
  • Abstract
  • Table of content

Chapter One:

Introduction

  • 1.1 Background of Study
  • 1.2 Statement of the Problem
  • 1.3 Objective of the Study
  • 1.4 Research Questions
  • 1.5 Research Hypothesis
  • 1.6 Significance of study
  • 1.7 Limitation of study
  • 1.8 Scope of study
  • 1.9 Definition of special terms
  • 1.10 Historical Background of Globacom Nigeria Limited

Chapter Two

Review of Related Literature

  • 2.1 The concept of environment
  • 2.2 Definitions and concepts of corporate social responsibility
  • 2.3 Approaches to social responsibility
  • 2.5 Argument against corporate social responsibility
  • 2.6 Argument for social responsibility
  • 2.7 Factors motivating the adoption of corporate social responsibility
  • 2.8 The benefits of corporate social responsibility
  • 2.9 Corporate social responsibility focus in the telecommunication industry

Chapter Three

Research Design and Methodology

  • 3.1. Research Design
  • 3.2. Sources of Data
  • 3.2.1. Primary Sources of Data
  • 3.2.2. Secondary Sources of Data
  • 3.3 Population of study
  • 3.4 Sample Design and Determination of Sample Size
  • 3.5 Methods of Data Collection
  • 3.6 Secondary Method of Data Collection
  • 3.7 Methods of Data Presentation and Analysis

Chapter Four

Data Presentation and Analysis

  • 4.1. Data Presentation
  • 4.1.2. Presentation According to Key Research Question
  • 4.2 Testing of Hypothesis

Chapter Five

Summary of Findings, Recommendation and Conclusion

  • 5.1 Summary of Findings
  • 5.2 Conclusion
  • 5.3 Recommendation
  • References
  • Appendix
  • Questionnaire

Chapter One

Introduction

1.1 Background of the Study

Corporate Social Responsibility an essentially American phenomenon has over the years become a major concern in Western Europe and in other countries of the world following the western model of development.

According to Drucker, (2003:66).The genesis of the debate on the concept of corporate social responsibility has been traced to the wave of crisis in social values that engulfed America in the post World War II period and most especially in the sixties.

Owing to the vastness of this topic – corporate social responsibility the researcher shall have to restrict the investigation to manageable proportions by focusing attention on telecommunication sector Nigeria, using Globacom Nigeria Limited.

The telecommunication industry is one of the fastest growing sectors in Nigeria. There are so many telecommunication companies owned by foreign and local corporate bodies in Nigeria. These telecommunication industries have covered a large area in Nigeria from urban to rural areas in the country. As a result of this, the researcher has selected one out of the many telecommunication companies to take a look at its corporate social responsibility project.

The researcher has decided to pick on Globacom Nigeria Limited, Enugu Zone, and has decided to look into its corporate social responsibility activities, to see how the company has gone in performing its social responsibility in host community.

1.2 Statement of Problem

In recent years there have been series of arguments, debates and controversies among businessmen, academics, government officials and the society in general on what should be the principle objectives or business enterprises.
Over the years, managers have neglected the problems created by corporate firms to their host communities. These problems possess a lot of threat and sometimes make life difficult for these communities. The privilege giving to organization to operate in the society stems from the act that society believes that there is a mutual interdependency existing between them, that is, the organization and the society.

The relationship between organizations and their host community has become increasingly important. The decision made in an organization may influence community prosperity and also national and even internationally economic activity might be affected. An example of these problems was the crisis in the Niger Delta region which has led to the destruction of lives and properties. There were accusations from the youths in these areas that companies misdirected their efforts and resources that they should have used to develop the community to bribe opinion leaders in order to overlook their responsibilities to the community, and these had caused a lot of acrimonies between the two parties, community and the firm. These same problems can also be identified in other arrears and in other communities across the country where large companies are located. This prompted the researcher with deep sense of burden to these communities to unraveled the need for these large firms to see the need in helping the society solve some of its problems, most especially those they help to create, and involve in philanthropic donations to the needs of these communities and provide the community with some social amenities.

Despite the roles played by organizations in carrying out corporate social responsibility and the growing importance of social responsibility, the following issues have not been fully addressed:

  1. Why should organizations be socially responsible to their environment?
  2. What benefits do organizations get from performing its corporate social responsibility?
  3. Why is social responsibility considered as a waste drain of business resources?
  4. Are organizations in Nigeria socially responsible?

In view of the above, the researcher has taken up the issue of social responsibility in the telecommunication sector in Nigeria and used Globacom Nigeria as a case study to examine the extent of the company’s involvement in corporate social responsibility.

1.3 Objective of the Study

For organizations to successfully survive in business, it must recognize the importance of social responsibility to the society. The broad objective of the study is to –

  1. Examine the argument for and against corporate social responsibility.
  2. Whether Globacom Nigeria Limited has been involved in social responsibility activities, and if so, to what extent have they been involved in their corporate social responsibility to their environment?
  3. To examine whether the immediate environments are taking into cognizance during planning and implementation of social responsibility,
  4. To know the factors that motivates the adoption of corporate social responsibility.

1.4 Research Hypothesis

In pursuit of the objective of identifying the effectiveness and workability of corporate social responsibility the following hypothesis have been formulated, which intend to test in the course of this study:

  1. Ho: The organization involvement in social responsibility does not have an effect on the company and its host community.
    Ha: The organizations in social responsibility activities have an effect on the company and its host community.
  2. Ho: Globacom corporate social responsibility programme does not enhance organization-societal relationship.
    Ha: Globacom corporate social responsibility programme enhances organization-societal relationship.

1.5 Research Question

We also intend to answer the following research questions to collaborate with the above hypothesis.

  1. Why is social responsibility necessary in an organization?
  2. To what extent does an organization involvement in social responsibility have an effect on the company and its host community?
  3. What factors motivates the company in carrying out social responsibility activities?
  4. Who do you think are the beneficiaries of the company social responsibility activities?

1.6 Significance of the Study

The study of social responsibility of a business organization is hoped to be of benefits not only to student’s businessmen, government, customers, community, stockholders, academics, but the whole society. The study also hopes to highlight the problem associated with social responsibility and to make use of the analysis to improve the working situations thereby minimizing the problems social responsibility conflict in that organization and its environment as well.

Finally, the study will inform all at large, the need for corporate social responsibility not only to the firm, but to the society at large.

1.7 Scope of the Study

This research work focuses on the telecommunication industry in Nigeria, but with particular reference to Globacom Nigeria, Enugu Zone.

1.8 Limitation of the Study

This research was faced with a lot of problems and limitations. The major problem acting as a limitation was a problem of Nigerians attitude to the supply of data to a researcher due to fear. Secondly, because of financial constraints, the scope and dimension of this study could not be extended beyond this limit.

1.9 Definition of Terms

1: (Globacom):

Global communication. It is a name of a telecommunication firm in Nigeria. Global communication limited is the case study for this research work.

2: (CSR):

Corporate social responsibility.

3: (BSc):

Bachelor of Science.

4: (NCE):

National Certificate in Education.

5: (OND):

Ordinary National Diploma.

6 🙁 HND):

Higher National Diploma.

7: (MBA):

Master in Business Administration.

8: (SSCE):

Senior School Certificate Examination.

9: (FSLC):

First School Leaving Certificate.

1.10 Historical Background of Globacom Nigeria Limited

Globacom Limited is a Nigeria multinational telecommunication company. Glo is a privately owned telecommunication company that started operations on the 29th August, 2003 in Nigeria.

Globacom is privately owned by Mike Adenuga Group which consists of Equitorial Trust Bank, Conoil Plc., and a petroleum marketing company producing a crude exploration company.

The sole aim of introducing and lunching Globacom in Nigeria on the 29th of August, 2003 was to provide telecommunication service to the people of Nigeria as a means of solving the problem of inadequate communication flow.

Although Glo Mobil was the fourth telecommunication operator in Nigeria, within seven years of the company’s operation, its subscriber base has grown to over 25 million. Glo has an estimate of over 25 million subscribers. It has a reputation as one of the fastest growing multinational carrier in the world and the vision for Glo is to be the biggest and best carrier in Africa. Globacom currently operates in four countries in West Africa namely Republic of Benin, Ghana, Ivory Coast and Nigeria. Its Headquarter is in Lagos, Nigeria because it is 100 percent a Nigerian owned company.

According to Globacom Annual Report: (2009:6). In August, 2003, Glo Mobile was launched in Nigeria and it introduced lower tariffs, pay per second billing and along other value added services. Glo Mobile is a subsidiary of Glo, its Glo Mobile Network Unit. Globacom ability to become the best telecommunication company in Africa and all over the world is due to the strategies they design in other to carry out their business smoothly. An example of their strategic business units are, Globacom Broad Access, Glo Gateway, Glo 1 Submarine cable, etc.

In 2005, Glo Mobile introduced Glo fleet manager which is the most comprehensive Vehicle Tracking solution offered to save time and money. Glo fleet manager helps managers, transporters fleet operator manage their fleet effectively and efficiently. They also introduced the Glo Mobile Internet Service which provides subscribers with speed access to all popular Internet sites which have been customized for mobile phone browsing.

The company in 2006 introduced Black Berry (A) which is the leading wireless solution that keeps mobile professionals around the world connected to people and information. In 2009, Globacom launched Blackberry prepaid service which gives subscribers options to pay daily, weekly or monthly for the service.

The company now provides coverage to over 85 cities and towns and well over 5000 communities and villages spinning every geo-political zone and 36 of Nigeria’s States.

Globacom products and services are available at its friendship centers which have a structure and some departments. It also have nationwide network of dealership, banks and convenience channels where its products are sold.

Under the chairmanship of Otunba Michael Adeniyi Ishola Adenuga Jr., Globacom has turned out to become the fastest and best telecommunication industry in West Africa. Recently, in June, 2008, Glo mobile was launched in Republic of Benin. Glo Mobile showed unprecedented growth through sales of 600,000 Sim Cards in the first ten days of operation. Glo acquired an operating license through its Glo Mobile division in Ghana and currently has about 11 millions subscribers in Ghana, and in 2009, the company acquired submarine cable landing rights and international gateway services in Ivory Coast.

Globacom Nigeria Limited is a leading telecommunication company in Nigeria, which has been at the forefront of promoting sustainable development and high standards of corporate governance and is one of the few signatories that keep date to the convention of business integrity.

According to Frank Nweke, (2006.5. guardian newspaper) “Glo is an authentic Nigeria Company. What is has achieved in the past years demonstrates great potentials, great opportunities, drive for excellence and commitment to Nigeria”.

The Nigeria Communication Commission awarded the company as the second national operator driven by the success of Globacom in Nigeria.

Chapter Five

Summary, Conclusion and Recommendation

5.1 Summary of Findings

Social responsibility has been a hot topic in every business area, from corporate boardroom to the door of the classroom as to whether or not organizations should be socially responsible to its immediate environment.

Taking a critical look into the context of this research work, it is easy to say that an enlightened business is one that recognizes that it is in its own interest to be socially responsible, since an enhanced public image is more likely to be attractive to investors, employees, customers, suppliers, consumers and its host community and government.
It was discovered from the research conducted that Globacom Nigeria Limited has been involved in corporate social responsibility activities to its host community, since its establishment in Enugu state and the country at large. The company has seen the need to involve itself in its community affairs by providing sport activities and equipments and also providing entertainment services to its immediate environment.

But as beautiful as it may sound, a lot of factors are standing against a business performing what it owe its immediate environment.

  1. Political instability and various communal and inter-tribal clashes have been served as a factor that militates against a firm’s involvement in corporate social responsibility activities. In place where the political environment is not stable, organizations do not like to invest or sink their funds in performing social activities.
  2. Value system of the nation or community: The value system of this country is so eroded that finance budgeted for such quotas can be easily shared among the top ranking officers/executives of the company and the traditional rulers of such locality thereby, “closing” the mouth of those who may have the “voice” to speak for the community.
  3. The society is becoming ungrateful and unappreciative of the efforts of the company’s social responsibility roles. This always make the community to ask for more.
  4. Another militating factor is the State of the Economy: Instability in the economy such as, inflation, economic meltdown, recession, etc, will make the firm not to sink their funds into social responsibility activities.

Despite all these militating factors, it was discovered that many people in the community have benefited in one way or the other from Globacom apart from the facts that most of its employees are selected from its immediate environment. This shows that Globacom Nigeria Limited is not reluctant in rendering some social responsibility programmes to its immediate environment where she operates and to the entire nation as a whole.

No business organization exists in a vacuum, but has among itself an interacting variable – The business environment – for which it is a part. Social responsibility is an aspect that organizations should not neglect as it has a great impact on the organization.

The case study focuses on the approach Globacom Nigeria Limited takes to social responsibilities. The company is proud that in addition to being among the world best telecommunication service providing company, it still takes an active responsibility interest in individuals and communities at a local level where ever it operates.

This research work reveals that, Globacom social responsibility focuses on two aspects – Sport and Entertainment.

Their sport sponsorship has helped this nation in so many ways, youth who ought to have been involved in armed robbery are now using the same strength in playing football and some cheering and encouraging the team playing (Supporter Club).

The entertainment sector has helped to easy to stress from people by making them feel relaxed, laugh, have much to eat and drink, listen to music and joke which due to their busy or tight work schedule will not permit them to listen to. Also it helped people meet lost friends or relations.

Furthermore, the entertainment aspect helps most especially young ones display their talent to the world, so that people can see that the youths are loaded and not just roaming about wasting their lives.

Nevertheless, Globacom has provided employment for people especially members of its host communities, which has help reduce the level of unemployment in the country.

Many times, the company involves active strategy to social responsibility activities in the community, but sometimes encounters pressure from the public.

Since all parties’ benefits from Globacom social responsibility activities, it can now be said with air of certainty that the force that moved Globacom to the top of the telecommunication industry is their leadership role in social responsibility. As far as they maintain this policy, they are bound to remain at the peak of the telecommunication industries.

5.2 Conclusion

The survival of any organization is dependent upon series of exchange between the organization and its environment. The involvement of Globacom Nigeria Limited, Enugu, and participation in social responsibility practices shows that the company is socially responsible to its immediate environment.

For any organization to survive, it has to properly take part in social responsibility activity. Most organizations and government agencies agrees that social responsibility is well and truly on the agenda in the business world because businesses operate in an environment where her resources are sourced and for this citizens will be looking up to them with high expectations and if this expectations are dashed, it will not go well with both the organization and the citizens.

Where shareholders refuse the approval of social responsibility they may receive wrath from the government and its host community. Having said this, organizations should take up the issue of social responsibility seriously. If a company fails to meet stakeholders’ expectations, it can put its own future at risk.

In conclusion, corporate social responsibility can therefore be best described as a total approach to business. Corporate social responsibility creeps into all aspect of operations. Like quality it is something that you know when you see it. It is something that business today should genuinely and wholeheartedly be committed to. The dangers of ignoring social responsibility are too dangerous. When it is remembered how important brands are to the overall company’s value. Corporate social responsibility is therefore something that a company should try and get right in implementing.

5.3 Recommendation

The idea that the only function of business organization is profit maximization for the shareholders should be erased and become obsolete and thus they should shift emphasis to a newer term “social responsibility”. To this effect Nigeria businessmen and women would protect their long-term interest by redefining their objectives to include those of the communities in which they carry out their business operations.

In view of the above, the following recommendations are made which will be based on the findings presented in the study.

  1. The company should expand their activities by going into other areas like health, education, charity giving, instead of focusing on only sport and entertainment.
  2. The organization should provide adequate amenities to it immediate environment.
  3. The company should improve on their service; most times the network reception is very poor.
  4. Despite the fact that Glo does not cover many rural areas in Nigeria, their social responsibility programme should not only center in the urban areas. Their social responsibility project should also be shifted to rural areas where there is no network coverage.
  5. A committee should be established to oversee their social responsibility activities.
  6. The company should partner with the government to ensure effectiveness in running their social responsibility programmes.

Without endangering corporate survival, businessmen should realize the advantages of giving grants to universities and other institutions and to its community, to mention a few. Businessmen or organizations should realize that an increase in the entrepreneur spirit of the populace can only be beneficial to the business sector and that the government cannot do this all alone.

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