THE IMPACT OF SOCIAL CORPORATE RESPONSIBILITY ON GOAL ATTAINMENT OF BUSINESS FIRMS (A STUDY OF MTN NIGERIA LIMITED)

CHAPTER ONE

1.1          INTRODUCTION

This chapter of the project will provide preliminary information to the project and cover the following; Statement of the Problem, Purpose/Objectives of the Study, Significance of the Study or Research Problem, Research Question, Statements of Hypotheses, Delimitation (Scope) of the Study, General Description of the Areas of Study (MTN Nigerian Limited), MTN Sponsorship, About MTN Nigeria Foundation, About MTN Nigeria Foundation Project, Selection, Executive Post Evaluation and Impart Assessment Strategies, What MTN Nigeria Foundation cannot sponsor, MTN Service Delivery on License Obligation in Africa, Product and Services of MTN Nigeria, Departments in the Organization and Organization Chart of MTN Nigeria Limited.

 

 

1.2          STATEMENT OF THE PROBLEM

The problem which this research intends to solve is the Impact of Corporate Social Responsibility on Goal Attainment of Business Firm.

How Nigeria business firms perceive and yield to social responsibility in different ways. Some firms believe that a mere contribution to social course like development of education, art, culture, sporting programme and sponsoring of different programmes in their environments in social responsibility, while some hold the belief that are needed to be socially responsible.

However, with an indepth look at firms and different industries in Nigeria, could easily notice that many on going concerns do not reckon with social responsibility and it impacts on business activities especially its effort on the corporate image and the project level of a firm. In this study, an attempt is made to look at Impact of Corporate Social Responsibility on Goal Achievement.

 

 

1.3          PURPOSES / OBJECTIVES OF THE STUDY

(i)            To know whether or not social responsibility is related to the corporate image of MTN Nigeria Limited.

(ii)           To examine social responsibility.

(iii)          To examine whether or not there is an acceptable conduct in the world of business.

(iv)          To know the meaning of business ethics in the world of business.

(v)           To review social responsibility.

(vi)          To know whether or not it has relationship with customers patronage.

(vii)         To indicate whether is has relationship with profitability of the business firm.

(viii)        To know how and why business and employees act responsible in the society.

(ix)          To know the bottom-line benefit of socially responsible corporate performance.

 

1.4          SIGNIFICANCE OF THE STUDY OR RESEARCH PROBLEM

This survey research is expected to expand the frontier of knowledge, concerning the issues that are relevant to social responsibility for the attainment of the corporate objective of a business firm.

 

1.5          RESEARCH QUESTION

In order to have related answer to the problem to be investigated, research questions are formulated which serve as a guide to such answers to the problem there-on.

Hence, these research questions are:

  1. Is there a correlation between social responsibility and consumers’ patronage?
  2. Is there a correlation between social responsibility and profit level of a business firm?
  3. Is there a correlation between corporate image of MTN Nigeria Limited and Social responsibility of the firm?

 

1.6          RESEARCH HYPOTHESIS

Hypotheses serve as a guide, like the research question, to me in my research work for data or information to be obtained. Therefore hypothesis is a tentative statement formulated in order to reach decision. It is a useful guide to make assumptions or guesses about the population involved, so as to give a clearer view of the problem under study.

Hypothesis must be tested whether it will be accepted or rejected.

A hypothesis should be simple and clear and must be related to the statement of the problem.

Hence, my research Hypotheses are:

  1. There is no correlation between social responsibility and consumers’ patronage.
  2. There is correlation between social responsibility and profit level of business firm.
  3. There is no correlation between corporate image of MTN Nigeria Limited and Social Responsibility of the Firm.

1.7          DELIMITATION (SCOPE) OF THE STUDY

As a researcher in the subject, ‘the impact of social responsibility on goal attainment of business firm; the areas to be covered on my research work are:

  1. Review of literature of some authors in the subject mentioned.
  2. Special emphasis on the case study, which is MTN Nigeria Limited.

Hence this research work will not cover the following:

  1. Anything that is contrary to the relevant study areas:
  2. All other business firms that are engaged in social responsibility.

 

1.8          GENERAL DESCRIPTION OF THE AREA OF STUDY (MTN NIGERIA LIMITED)

Before the commencement of the historical background of MTN Nigeria Limited, it is advisable to resolve the misconceptions that exist about the two acronyms that sprang up from this company MTN and GSM.

MTN means Mobile Telecommunication Network while GSM means Global System for Mobile Telecommunications.

MTN Nigeria Limited was incorporated in Nigeria on November 8, 2000 as a private company. It secured to a license to operate digital GSM telephony on February 9, 2001 from Nigerian Communication Commission.

MTN Nigeria is part of the MTN Group, Africa’s leading cellular telecommunication company. On May 16, 2001, MTN became the first GSM network to make a call following the globally landed Nigeria GSM auction condition by the Nigeria Communications Commission earlier in the year. Therefore, the company landed full commercial operations beginning with Lagos, Abuja and Port-Harcourt. This company has its headquarters in Lagos Island at Churchgate Tower, 15th Floor, Plot 30, Afribank Street, Victoria island Lagos.

MTN paid $285m for one of four GSM licenses in Nigeria in January, 2001. To date, in excess of US $1.8 billion has been invested, building mobile telecommunications infrastructure in Nigeria.

Since launch in August 2001, MTN has steadily deployed its services across Nigeria. It now provides service in 233 cities and towns, more than 10,000 villages and communities and a growing number of high ways across the country, spanning the 36 states of the Nigeria and the Federal Capital Territory, Abuja.

Many of these villages and communities are being connected to the world of telecommunications for the first time ever.

The company’s digital microware transmission, the 3,400 Kilometre Y’ello Bahn was Commissioned by President Olusegun Obasanjo in January 2003 and is reported to be the most extensive digital microwave transmission infrastructure in all of Africa. The Y’ello Bahn has significantly helped to enhance call quality on MTN Network.

The company subsists on the core brand value of leadership, relationship, integrity, innovation and “can-do” it pride itself on its ability to make the impossible possible, connecting people with friend, family and opportunities.

MTN Nigeria also recently expanded its network capacity to include a new numbering range with the prefix 0806 and later 0703, making MTN the first and only GSM Network system, having exhausted it initial subscriber numbering range – 0803.

In it resolve to enhance quality customer service, MTN Nigeria has also introduced a self-help toll-free 181 customer-care line through which subscribers can resolve their frequently asked questions free of charge.

MTN’s overriding mission to be a catalyst for Nigeria’s economic growth and development, helping to unleash Nigeria’s strong development potential not only through the permission of world class communications, but also through innovative and sustainable corporate social responsibility initiatives.

 

MTN SPONSORSHIP

MTN is positioned as the network of choice and the leading telecommunications network in Nigeria. It is also positioned as the leader in innovation.

To reinforce the above, MTN employs different properties that are not cluttered or disordered and that allow the MTN brand to reinforce her brand values.

The utilized platforms are (i) sports and (ii) music.

SPORTS

Sports have tremendously potential to positive effect Nigeria’s social and economic development, not only for its natural tendency to foster mutual understanding and conviviality among and between different sectors of society, but also for the economic pin-offs or useful results, including new jobs which investment in sports, creates. Sports have benefited significantly from sponsorship and support by MTN Nigeria.

MTN Nigeria sponsorship and support areas of sport are Golf and Polo, Soccer, Athletics.

GOLF AND POLO: MTN has led the way in sponsoring and assisting in the growth and development of golf and polo in Nigeria. Both sports have been popularized and recorded speedy growth as a result of MTN partnership. For instance, the Mtn/Virgin Golf Classic, a partnership between Mtn and Virgin Atlantic Airways has recorded resounding success and is now Nigeria’s prominent amateur golf tournament.

SOCCER: Football is another beneficiary of support from Mtn Nigeria. Mtn is a sponsor of the annual MTN/CAF African footballer of the Award to reward excellence among footballers of African descent.

ATHLETICS: After a lull of eight years, Mtn with the support of the Athletics Federation of Nigeria, AFN, in 2002, revived the road Running in Nigeria, the Marathon is a mass participation sport with professional athletes competing along side with amateur ones.

During the 2002 edition of the Mtn, Lagos Internaitonal half marathon “professional athletes ran alongside CEO’s of the blue ship companies, street traders, high school students, newspaper vendors and even the unemployed”, said CEO Adrain wood of the event. “It did not matter whether you were black or white, from the north or south, make or female, Christian or Muslim. Our differences disappeared and were subsumed in the conviviality of sport”.

The 2002 MTN Lagos International Half marathon brought immense positive attention to Nigeria across the world, having come under focus in several newspapers and television channels across the world for many days before and after the marathon.

MTN committed over N95 million towards the organization of that maiden marathon event. In 2003, it further committed additional funds towards rehabilitating the athletics to training camp in Jos and sponsored the top 5 Nigerian finishers at the 2002 event to the Gothenburg half marathon in Sweden. All the 5 Nigerians not only finished the Swedish race, but came between the 38th and 108th places in a race that had more than 43,000 runners.

The 2nd edition was scheduled for Saturday 20th November 2004. in 2002, Mtn brokered and sponsored a deal between the Nigeria institute of sports and the Australia Institute of Sports. Under the terms of this sponsorship paid up by Mtn and worth $600,000 (Australian dollars), AIS is providing training and development for Nigeria athletics coaches and will continue to do so for a period of three years.

MUSIC AND ENTERTAINMENT

Like sports, music and entertainment can help ginger social cohesion, in so doing, fostering development, Mtn is one of Nigeria’s leading sponsors of music and entertainment. In 2002, the company bankrolled the half of frame project of the performing musicians Association of Nigeria, a project designed to reward experience and commitment in Nigeria music. In December of the same year, it funded the production of a CD by 10 Nigeria groups, the first ever by any company in Nigeria some of the artistes so recorded have never had this opportunity. The CD, tagged play and go was launched in a musical event in Lagos that also afforded some of the recorded artistes of show case their talents.

For close to two years, the company has sponsored a musical countdown (Y’ellow Top Ten) on popular Lagos radio station, cool fm. The programme exclusively promotes indigenous Nigeria musical talent.

Its television entertainment programme, Y’ellow TV show, has been broadcast on mnet’s channel 0 and has no commendation across the country. Y’ello TV show deliberately showcases Nigeria musical and entertainment talent.

In March 2003, the company organized a two-day festival of music and entertainment, tagged Y’ello fest in Lagos. Though America-based entertainer, black street was one of the show’s start attractions, Nigeria star such as Femi Kuti and King Sunny Ade were deliberately promoted at par with the foreign star.

ABOUT MTN NIGERIA FOUNDATION

MTN foundations was established in November, 2003 as an Independent Corporate Non-profit, Non-governmental Organization that aims to improve the quality of life in Nigeria communities in the 6 geo-political zones. The keys focus areas that MTN foundations gives support to are: Health, Education, and Economic Empowerment.

HEALTH FOCUS AREA

MTN Nigeria foundation deploys resources to improve health challenges facing the country through strategic partnership with both public and private organizations. It intends to achieve the following objectives:

  1. To contribute to the health challenges currently facing the country by strategic partnership and facilitating a common response.
  2. To contribute to the national awareness campaign on HIV/AIDS.
  3. To generate awareness education programmes on environment cleanliness and malaria prevention.

MTN foundation’s current project include;

  1. HIV/AIDS awareness and donations of equipment to people living with HIV/AIDS.

MTN foundations health objectives are:

  1. To allocate the health challenges facing the country through partnerships.
  2. To contribute to national awareness campaign on HIV/AIDS.

EDUCATION FOCUS AREA

MTN foundation engages in education project that would impact on children from nursery to tertiary level. It strives to achieve the following objectives under the education project.

  1. Empowerment through information and technology resources.
  2. Enables skill acquisition, transfer and development.
  3. Raise the literacy level among Nigerians.
  4. Provide educational resources for effective learning.
  5. Enhance education infrastructure development.

The current projects of MTN Nigeria foundation under education portfolio are:

  1. Book projects school connect project – 21 computers each to selected schools in Enugu, Kaduna, and Lagos States (Phase 1) including satellite connection and teaching aids.

ECONOMIC EMPOWERMENT FOCUS AREA

Economic empowerment unit of MTN Nigeria foundation will focus on improving the economy of the country by empowering Nigerians to improve their individual economy through the following are:

  1. Poverty alleviation programmes
  2. Business support
  3. Venture capital
  4. Micro lending
  5. Empowerment creation
  6. Technical skill transfer
  7. Agricultural development / food security
  8. Entrepreneurship
  9. Housing

The current project include:

  1. Empowerment of rural women through micro-credit scheme in specific communities and donation of provision to the physically disabled.

Economic Empowerment objective include:

  1. Improving the economy by empowering Nigerians through skills acquisition, training, micro-financing, capacity building, business support.

WHAT MTN NIGERIA FOUNDATION CANNOT SPONSOR

The following are what MTN Nigeria foundation cannot sponsor:

  1. Start-up and general organization costs.
  2. Building, physical infrastructural and / or equipment that is not part of an MTN Nigeria foundation project.
  3. Individuals, political or religious projects.
  4. Raffles and competitions.
  5. Tours, oversea trips, transport, conferences and seminars, cocktail parties, dinners and award ceremonies that will not impact on other Nigerians.
  6. Projects benefiting commercial organizations.
  7. Projects whose beneficiaries are outside Nigeria, with the exception of African countries within which MTN Nigeria operates.

MTN SERVICE DELIVERY ON LICENSE OBLIGATIONS IN AREA

MTN limited delivery on license obligation and often exceed target ahead of schedule.

  1. MTN CAMEROON: The towns of Yaounde, Dauala and Bafonsam as well s the airports and main roads connecting the town were connected by April 2001, in accordance with the terms of user license obligations.
  2. MTN NIGERIA: After 12 months, post-launch MTN had to have 100,000 subscribers, in just seven months, it managed to reach 315,000 subscribers.
  3. MTN RWANDA: By March 2000, MTN Rwanda had coverage across 14 towns. In less than 18 months license obligations were exceeded.
  4. MTN SOUTH AFRICA: MTN South Africa required to provide service t0 70% of the population within 48 months. And it achieved this in 36 months.
  5. MTN SWAZILAND: By March 2000, it had coverage across 14 towns. By December 1999, it had 20 towns with MTN coverage. Today network coverage exceeds 70% of the country and mobile subscriber out number fixed lines.
  6. MTN UGANDA: Within five years, MTN Uganda was to all its obligations, including 89,605 lines and 2,000 pay phones. From the analysis above, it is noticed that MTN Nigeria has the highest subscribers of 315,000 after 12 months of post launch MTN IN August 2001 than all other Africa countries. MTN is now planning to set-up its operation in IRAN.

 

PRODUCTS SERVICES OF MTN NIGERIA LIMITED

The following are the products and services of MTN Nigeria Limited which make it to be able to carry out its social responsibility in various ways:

  1. MTN Biz Time
  2. MTN Booster Card
  3. MTN Flexi
  4. Welcome back-made-easy
  5. Pay as you go
  6. Value added services: these consist of:

Voice Mail

WAP Service

MTN Flash Mail

MTN Flash

These consist of:

Voice Mail

WAP Services

MTN Flash Mail

MTN Flash

Save-my-contracts

Customer Service

Call Barring and Forwarding

Call Waiting

Call line Identification

Enhanced Voice Mail

Short Messages (SMS)

Fax mail

International Roaming

Fleet Management Services

  1. Fleet Management Services
  2. Content Services Provision
  3. MTN Messenger
  4. MTN Family and Friend

MTN FAMILY AND FRIENDS: MTN family and friends is a service available to all PAYG per minute and per second subscribers that gives a 10% discount on all calls to 3 of your favorite numbers.

This service is available ONLY to prepaid paid subscribers on MTN Flexi or Booster Card would not benefit form the discount.

 

DEPARTMENTS IN THE ORGANIZATION

The departments in MTN Nigeria Limited are as follows;

  1. FINANCE DEPARTMENT: This is in charge of the company’s treasury i.e. payment of salaries, wages, fixed payment for materials used and preparation of financial statement.
  2. MARKETING AND STRATEGY DEPARTMENT: Markets the products and services of the firm and devices strategy in order to outright competitors.
  3. CUSTOMERS RELATIONS DEPARTMENT: Sources for customers as well as attends to those that have problems.
  4. INTERNAL AUDIT DEPARTMENT: This is the Department that examines, evaluates and reports on accounting and other control on the operations of the organization.
  5. NETWORK GROUP DEPARTMENT: Ensures the viability of the organization network as regard it functionality.
  6. CORPORATE SERVICES DEPARTMENT: Attends to the needs of the immediate environment, through the provision of corporate social responsibility, government and other public service as the need arises.
  7. CAPITAL PROJECT GROUP DEPARTMENT: This department is in charge of sites, building and also handles network roll outs.
  8. INFORMATION SYSTEM DEPARTMENT: This department specializes in processing data and information to provide new information in the organization.
  9. HUMAN RESOURCES: This department is in charge of all administration matters in the organization.
  10. SECURITY DEPARTMENT: Maintains the security of lives and properties of the organization both within and outside the organization. Ensuring all installations of the organization and not vandalized in their various locations.

1.9          ORGANIZATION CHART OF MTN NIGERIA LIMITED

Organizational charts are the best way to visualize and understand an organization’s workplace. An organizational chart is a decision making tool which provides a united view of critical employee data and enabling management to model business scenarios to plan for change.

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