Execution Of Corporate Social Responsibility Among The Telecommunication Industries (A Case Study Of Globacom Nigeria Limited)

Project and Seminar material for Public Administration

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.

Chapter One

Introduction

1.1 Background to 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, (2001;231).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. The Chief Executive of General Motors who observed the changing trend could not help observing:

“I am concerned about a society that has demonstrably lost confidence in its institutions – in the government, in the press, in the church, in the military, as well as in business”.

Business to America has had a most unique history. Its development growth and impact on social life in America since the civil war II is almost common knowledge. What may not be common knowledge, however, is the fact that business which has hitherto shaped and controlled the lives of millions of Americans some two hundred years ago is today being threatened by a wave of protests from various publics it uses to serve. The crisis of confidence in the social role of business as made explicit in debates on corporate social responsibility points to the fact that America sees big business as a big powerful machine gone out of control. And efforts to control and at least re-orientate its directions form the core of the argument of all who urge business to change with the times. In other words, to deemphasize its so much vaunted profit maximization dogma and pay attention to the human lives and environment which it is subtly, ruthlessly and almost surely grinding out of existence. As one of the protagonists has viewed the concept of corporate social responsibility it is a crude blend of long-run profit-making and altruism, a doctrine which fuses social values with profit maximization goals.

In the early years of the American Republic and especially in the post civil war reconstruction era, business in America played an almost indispensable role as a powerful social tool for harnessing resources and ensuring material progress. Ducker (1986:66). But as the years rolled on and business began to concentrate and centralize capital, its role in the economy became expansive and pervasive. At the height of prosperity, the captains of industry were heralded as heroes of the society.

The later years of the post World War II era harbored a different story. The boom period following the end of World War II soon gave way to a periodic wave of depressions and crisis that was to rock every foundations of society on which business existed. The frustrating economic situation characterized by inflation, unemployment, failing profit, declining investment, pollution of the external environment etc., pushed Americans to re-examine almost every old values and the assumptions behind them.

According to Drucker, (1986:96) the debate on corporate social responsibility did not only take place in the United State of America. The noise of the debate filtered through to other countries that shares similar business cultures with America most especially the Western European countries. While the western European nations have responded positively to the debate, accepted and even implemented some of its own far reaching conclusions it is pertinent to know if the discussions and conclusion so far reached have had an impact on the countries periphery.

One of the objectives of this study is to investigate to what extent the current debate on corporate social responsibility and its conclusion has trickled down to the periphery of Nigeria in particular and how it is applied here by firms who have embarked on such projects in Nigeria.

It is believed by the researcher that although the present level of industrialization does not entitled us to discuss the issue on the same platform with the industrialized western economies; the fact that they are imitating their path to industrialization should imply that we should study their experience closely to avoid mistakes.

It is arguable also that foreign corporate bodies operating in host countries especially in the Third World countries are most likely to pay lip service to such principles as corporate social responsibility which are most likely to be of benefit to their host countries. Also local or indigenous organizations can neglect this principle of corporate social responsibility to their host communities.

These days, social responsibility of business is on what should or might be done to tackle and solve problems of society. The emphasis is on what contribution they can make to such social problems as protected and restoration of physical environment, racial discrimination or social discrimination.

In striving to satisfy its corporate goals and achieve its objectives the organization cannot operate in isolation from its environment. .

The performance of corporate social responsibility is not undertaking to boost profit at the short-run but to meet some social needs, aspirations, and profit at the long-run.

Organizations who hold this view of corporate social responsibility believes that once it does what is expected of it by law and its host community the organization is socially responsible.

Owing to the vastness of this topic – corporate social responsibility we shall have to restrict our 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 is the on-going crisis in the Niger Delta region which has led to the destruction of lives and properties. There are accusations from the youths in these areas that companies misdirect 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 have 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 carrying out corporate social responsibility and the growing importance of social responsibility, the following issues have not been fully addressed:

Why do organizations be socially responsible to their environment?
What benefits do organizations get from performing their corporate social responsibility?
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 Purpose of 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 –

Examine the argument for and against corporate social responsibility.
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?
To examine whether the immediate environments are taking into cognizance during planning and implementation of social responsibility,
To know the factors that motivates the adoption of corporate social responsibility.

1.4 Research Questions / 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:

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.
Ho: Globacom corporate social responsibility programme does not enhance organization-societal relationship.
Ha: Globacom corporate social responsibility programme enhances organization-societal relationship.

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

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

1.5 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.

1.6 Scope and Limitation of the Study:

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

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.

1.7 Definition of Special Term

Globacom

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

Glo

A short name for Globacom.

CSR

Corporate social responsibility.

BSc

Bachelor of Science.

NCE

National Certificate in Education.

OND

National Diploma.

HND)

Higher National Diploma.

MBA

Master in Business Administration.

SSCE

Senior School Certificate Examination.

FSLC

First School Leaving Certificate.

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.

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.
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.
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.
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.

From the fore-going, it can be deduced that in-spite of profit motives, Globacom Nigeria has demonstrated corporate social consciousness as she ought to do.

It was also discovered that and revealed that social responsibility is a legitimate action of the firm and that the firms involvement in social responsibility has a great positive impact on the firm and that the assessment of the community to the company’s social activities has been satisfactory.

The research also revealed that the quality of the company’s services is perfect which gives value to the sum of money spent for it and that the company’s social responsibility activities has enhanced organization – community relationship.

Findings:

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.

However, in recent times and in particular with the indigenization decree, Nigerian businessmen and organizations are beginning to come into the practice of corporate social responsibility. It will be a tragedy if exploitation increase under our indigenous entrepreneurs, Social responsibility achieves greater meaning where corporate leaders have a stake in society and do not wait for the government to do everything.

The government has played some part in recent times. We can only hope that business will reciprocate just as Globacom Nigeria Limited has done by getting involved in corporate social responsibility activities to its host community and the country at large. Based, however as it is on voluntarism, the “social responsibility of business” is likely to satisfy all the needs of the society.

Since a greater percentage of Nigerians have benefited from the corporate social responsibility role of Globacom Nigeria, it can now be discussed with air of certainty, that one of major force that catapulted Globacom to the top of firms in the telecommunication industry is their role in corporate social responsibility programmes.

As far as they maintain this policy/strategy, they are bound to remain on top as the leading mobile telecommunication industry in Nigeria.

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.

The company should expand their activities by going into other areas like health, education, charity giving, instead of focusing on only sport and entertainment.
The organization should provide adequate amenities to it immediate environment.
The company should improve on their service; most times the network reception is very poor.
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.
A committee should be established to oversee their social responsibility activities.
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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