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Transcript of 2
GHANA INSTITUTE OF JOURNALISM
VODAFONE CUSTOMERS’ PERCEPTION OF VODAFONE’S CORPORATE
SOCIAL RESPONSIBILITY ACTIVITIES
BY
AMY MAMLEY KISSEIH
A PROJECT WORK PRESENTED TO THE GHANA INSTITUTE OF
JOURNALISM IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR
THE AWARD OF A BACHELOR OF ARTS DEGREE IN COMMUNICATIONS
STUDIES.
1
Dedication
I dedicate this project to my children; Nana Akosua Kuntuwaa and Owura
Yaw Amofah Osei-Frempong.
Acknowledgements
2
I want to thank the Almighty God who is my supreme source of inspiration
and encouragement. I will continue to depend on him all the days of my life.
To my two lovely children, thanks for your endurance and tolerance during
the time I had to combine motherhood, scholarship and career development
in order to have a better view of the World. You are my source of inspiration.
Thanks.
To my late mother Mrs. Janet Kisseih, I say may God grant you perfect rest
where ever you are. You were a single mother who had to brave the odds to
take care of us.
To my siblings; Edna Ansu Manu, Gifty Kisseih and especially, Donald Kisseih
thanks for being there for me when I needed you.
To my husband, Mr Samuel Osei-Frempong, thanks for your support.
To my supervisor Mr. Kweku Rockson thanks for supervising me.
To my public relations lecturer, Mrs. Mavis Essandoh, thank you for boosting
the desire in me to pursue public relations as a profession.
To Gloria Ama Donkor, you are the person I call my best friend.
To my friend Mrs. Georgina Ahorbo thanks for your encouragement and
advice.
3
Declaration
This is to declare that all works presented in this project are my ideas. Any
source used is duly acknowledged. This is a requirement in partial fulfilment
of a Bachelor of Arts degree in Communications Studies at the Ghana
Institute of Journalism.
Table of Contents
Abbreviations 4
Corporate Social Responsibility (CSR)
Association of Ghana Industries (AGI)
Ghana National Chamber of Commerce and Industry (GNCCI)
Ghana Employers' Association (GEA)
Danish Development Agency (Danida)
Improving Business practice (IBP)
Sub-Component of the Business Sector Programme Support (BSPS)
Ghana Business Code (GHBC)
World Business Council for Sustainable Development (WBCSD)
United Nations (UN)
Internet Service Provider (ISP)
International Communication Technology centre (ICT)
Chapter one: Introduction
I. Background statement
II. Problem statement
5
III. Research objectives
IV. Significance of study
V. Scope of study
Chapter two: Literature Review
I. Theoretical framework
II. Review of related literature
III. Operational definitions
Chapter three: Methods
I. Sample and population
II. Instruments
III. Design
IV. Procedure
Chapter four: Results
I. Data analysis
6
II. Discussion
III. Recommendations
Chapter five:
I. Summary
II. Conclusion
III. Suggestions for further study
CHAPTER ONE
1. Introduction
There is a hidden hand which governs the operations and conscience of
corporate bodies and all that they do as far as image building strategies and
attention grabbing are concerned. It manifests itself in various ways and for
every muscle stretched and for every drop of sweat that goes into it, a 7
memory is created which will never go through the obliterating teeth of the
shredder. This is well known as Corporate Social Responsibility (CSR).
Most business concerns or organisations in Ghana and most parts of the
world seek to indulge in this extra corporate activity or important corporate
activity to win affection in communities in which they operate and even to
seek a better image outside their geographical confines. The reasons may go
beyond image building as others see a need that could easily be met or
sometimes turning a societal problem into a business activity or just
engaging in one of those spins to assume the role of the provider.
Modern best practices in the business community dictate that such deeds
should be seen as a duty of that organisation to give something back to the
community which has hosted it and has taken so much from.
Under the umbrella of CSR, organs or business entities are obliged to
consider the interest of society in all aspects of their operations. Their foci
are usually non profit making, but ensuring that they provide some of the
needs of society or the community in which they operate.
CSR as an obligation goes beyond what is required by the law and economics
for a firm to pursue long term goals that are good for society, the continuing
commitment by business to behave ethically and contribute to economic
development while improving the quality of life of the workforce and their
families, that of the local community and society as a whole. So when multi
8
millionaire Andrew Carnegie (1835-1919) stated that the rich hold the wealth
in trust for the poor and needy while John Cadbury would create a village for
factory workers and see to it that they led a healthy lifestlye (Rockson,
2008), they are enforcing the principle that the existence and management
of a company is about seeking the interest and welfare of society.
In Ghana, three key actors in the business and industry namely, the
Association of Ghana Industries (AGI), Ghana National Chamber of
Commerce and Industry (GNCCI) and Ghana Employers' Association (GEA)
with support from the Danish Development Agency, Danida‘s, Improving
Business Practice (IBP), Sub-Component of the Business Sector Programme
Support (BSPS), have crafted the Ghana Business Code (GHBC) as a set of
principles introduced into the Ghanaian business to guide the Ghanaian
entrepreneur in his or her quest to be socially responsible.
The GHBC is a series of prescriptions based on UN Global Compact relating
to human rights, labour standards, the environment and transparency in
business operations. (www.ghanabusinesscode.com).
The Ghana Business Code provides a yardstick for its members and ensuring
good business practises. The GHBC emphasizes the triple bottom line (3Ps)
9
of corporate responsibility with regard to People, Profit and Planet. These and
others have persuaded me to undertake this research.
1.1 Background to the study
In the 1960s, businesses came under scrutiny; the like of which most
executives had never experienced. Increased government regulations,
investigations by government agencies, and more intense reporting
requirements threw the media spotlight on business activities once relegated
to only financial pages. This gave rise to a new kind of journalism called’
muckraking’ also known as ‘investigative reporting’. Most businesses tried to
fight back, but due to the nature of legal defence which is time consuming
and costly, they had to re-negotiate their stand. This brought about the
introduction of codes of conduct because most of the corporations began to
look at their internal affairs and sought to put their houses in order. Some
businesses saw it wise to keep a low profile whiles others took theirs to the
‘court of public opinion’.
Still in the 1960’s and 70’s, most segments of the public scorned at
businesses for perceived wrongs and exploitation which had been fuelled by
the growth and acceptance of socialism (anti-capitalism) and radical trade
unionism as well as the environmental movement, auspiciously led by the
Greenpeace, demanding more accountability and ethical commerce. During
10
this time, two young investigative journalists were not only helping to bring
down a corrupt government during the ‘Watergate’ scandal in the United
States of America but were trying to open the doors to corporate boardrooms
long locked to an inquisitive outside world.
In 1972, an opinion research conducted on corporations found that 60
percent of adults held businesses in ‘low esteem’, highlighting a growing
problem for business. A corporate credibility gap cast a shadow over many
corporations that had operated under the guise of withholding information
because of “privacy rights”, or for fear of ‘trying a case in public’ or simply
‘no comment’.
The new era of corporate social responsibility and public relations began in
the 1980’s. An example is the handling of the Tylenol poisonings in 1983 by
Johnson and Johnson. It became a textbook on how to respond to crisis.
Unlike Three Mile Island, Johnson and Johnson responded to all media
requests for information and generally fulfilled the company’s responsibility
to the public interest. By the close of the 1980’s the chemical industries
caught up with Dow’s philosophy and instituted an across- the- program of
social responsibility. ‘Responsible Care’ is the name of the self- policing code
of conduct by which all members of the Chemical Manufacturers Association
abide.
11
A great deal of confidence was expressed by 25 percent of Americans in
major corporations, banks and financial institution, when the University of
Chicago Opinion Research Centre conducted a survey. When the Reagan
administration began deregulating various industries, CSR was again tested
in the airlines, railroads, banks and savings and loans sectors. This led to
business leaders and public relations practitioners take the centre stage as
the times called for a new spirit of volunteerism. (Cutlip, Center & Broom
1998).
1.1.2 VODAFONE GHANA
History
Ghana Telecommunications Company was established after World War II as a
wing of the then Post and Telecommunications Corporation. Ghana Telecom
was formed out of the Engineering Division of the erstwhile Ghana Post and
Telecommunications Corporation. In order that the company functions as a
commercially viable entity, it was split into two autonomous divisions by the
government of Ghana into Ghana Postal Services and Ghana
12
Telecommunications Company. The Company was under the then Ministry of
Transport and Communications in 1974.
On June 16, 1995, Ghana Telecom was incorporated to take over the assets
of the Telecommunication division of the P&T Corporation.
Privatisation
After its creation, Ghana Telecom has undergone three forms of
privatisation. The first one was with Telecom Malaysia on December 16,
1996. Government retained 70% of the shares while 30% was given to
Telecom Malaysia. The second privatisation which was more of managerial
re-orientation contract was with ‘Telenor’ of Norway. It came in to effect on
July 04, 2002 and lasted till June 2007. The current one is with Vodafone
group PLC of United Kingdom. It began on September 24, 2008 with
government selling seventy percent of its shares to Vodafone.
Vodafone Ghana is one of the Vodafone Group Plc, a leading global mobile
telephony company. This follows the successful acquisition of 70% shares in
Ghana Telecommunications Company (GT) by Vodafone international Plc on
July 23, 2008.
Vodafone Ghana, originally the Post and Telecommunications Department of
the Civil Service, went through several transformations before it was named
Ghana Telecom in 1996.
13
As one of the industry leaders, providing fixed, mobile and internet
broadband services, the company serves as the backbone for economic
growth and developing the ICT sector. Vodafone Plc is making significant in-
roads in Africa and currently operates in Kenya, South Africa, Tanzania and
Mozambique. It has significant presence in Europe, the Middle East, Asia
Pacific and the United States through the company’s subsidiary
undertakings, joint ventures, associated undertakings and investments.
Vodafone group has more than 289 million customers, excluding paging
customers, calculated on a proportionate basis in accordance with its
percentage interest in these ventures. Operational in 26 countries, the
company is ranked among the top 10 global companies by market
capitalization.
The company’s executive team that runs the affairs of Vodafone Ghana is
made up of the Chief Executive Officer, Chief Financial Officer, Head,
Corporate Communication, Head Legal & Regulatory, Chief Officer, Customer
Care, Head Integration, Director, Brand Migration, Head, Information
Technology, Chief Officer, Human Resource Management, and Head of
Consumer Mobile.
Services Provided
Vodafone Ghana is a telecommunications services provider (voice - mobile &
fixed lines, data, and internet) and is currently also providing fixed line and
14
internet services. Vodafone is the third ranked operator in the mobile
telephony market. As a corporate body, the company tries to build
relationships with the private sector, customers and government.
Fixed line services enable customers to make and receive local and
international telephone calls. There are added services, such as International
Direct Dialling (IDD), call transfer, itemized billing and many more.
Vodafone is the sole wholesale provider of internet service in Ghana. It also
provides retail services to customers; There are various packages for
residential and business needs that helps easy access to the Internet.
Vodafone Foundation
The foundation seeks to create another avenue for Vodafone to:
Develop programme (s) of social impact mitigation, utilizing mobile
communications technology.
Network with relevant NGOs and support activities that are aimed at
protecting the natural environment.
Develop and implement social investment plans including; creating
opportunities for employment and training, business development
partnership for community development.
Encourage Vodafone employees to volunteer in providing paid time
service in sustainable community projects.
15
1.1.2 Arguments against CSR
The "economic" argument against CSR is perhaps most closely associated
with the American economist Milton, (1962) who argues that it is unfair to
ask the company to provide a service, an amenity and that this should be
provided by the government. He makes it clear, that it is the duty of
government to provide for the societies in which the organizations are
situated since they pay their taxes Friedman further argued that the primary
responsibility of business is to make a profit for its owners, albeit while
complying with the law and any other thing done is a violation of the rights
of shareholders. Friedman further admonishes managers not to touch the
income of the organization. ‘We live in a free society so we should be able to
do what we want’. According to this view, the self-interested actions of
millions of participants in free markets will, from a utilitarian perspective,
lead to positive outcomes for society. Addressing CSR problems hurt the
competitive position of a company relative to other businesses.
Blumer (1969) makes the argument more simple when says; when better
working conditions are provided, it gives rise to better income and that
ripples to the families and friends of the workers and that is a form of CSR.
16
1.1.3 Arguments for CSR
Peach 1987, likens CSR to the effect of throwing a stone into a pond and
getting rippling effects. There are three levels of the effects.
The first step is the basic level;
Pay taxes
Observe the law
Deal fairly
The second step is the organizational level;
Minimize negative effects
Act in the spirit of the law
The third step is the societal level;
Responsibility for a healthy society
Help remove or alleviate societies ills
Harrison in Philip Kitchen’s book ‘Public Relations Principles and Practice’
says that organizations must as a matter of necessity earn a good
reputation. A survey carried out by Loughborough University for the
Economist in 1991, asked 1,800 British business people what qualities
17
contributed to a good, positive reputation? Community and environmental
responsibility was the first on the list. One view, held by critics of the
corporate world, is that since large corporations create many social
problems, they should attempt to address and solve them. Furthermore, it
may be in the corporate world's best interests to engage in socially
responsive activities because, by doing so, the corporate world may forestall
governmental intervention in the form of new legislation and regulation.
1.2 Statements Problem
A lot of problems do arise in organizations when they promise to be socially
responsible to the community in which they are sited but acts contrary to
their promises. The perception or reality of unfulfilment of this promise
creates chaos, tension and portrays a traitorous image of the organization.
What then do customers perceive as CSR projects and or activities executed
by Vodafone? How do CSR projects and or activities meet the needs of
communities in which Vodafone operates? This project seeks to find out
Vodafone’s customers perception about Vodafone’s CSR activities.
1.3 Research question
The following questions need to be answered in this project work;
I. What is the understanding of Vodafone towards CSR
18
II. To find out whether Vodafone undertakes CSR?
III. To find out whether projects required as CSR related undertaken by
Vodafone are CSR?
IV. To find out CSR the understanding of customers about what CSR is and
the projects they see as CSR related?
V. How the customers perceive what they see as CSR activities?
1.4 Research Objectives
GENERAL OBJECTIVE:
To find out how Vodafone customers’ perceive Vodafone’s Corporate Social
Responsibility activities.
Specific objective:
I. To ascertain whether Vodafone carry out CSR activities as part of its
operations.
II. To verify which activities or projects undertaken by Vodafone are seen as
CSR activities or projects by its Customers.
III. To find out whether the customers of Vodafone understand the rationale
of Vodafone’s CSR activities.
19
IV. To make recommendations
1.5 Significance of study
The significance of this study is to find the CSR activities undertaken by
Vodafone; to ascertain whether they are CSR based and to know how the
customers perceive it. Organisations that engage in CSR should have a good
relationship with the communities in which they are sited.
It is to encourage organisations that are not engaged in CSR to do so and
gain the benefits. It is ethically right to engage in CSR as an organisation
since it is an act of giving back to society what the organisation has taken
from it. This study would be beneficial to the organisations which are not into
CSR since the study would provide the necessary information for their future
use. It will serve as a source of reference to future researchers who will be
interested in CSR and related issues. The study will eventually be a store of
knowledge on CSR issues particularly how the concept is perceived by
customers of a telecommunications company like Vodafone.
1.6 Scope of study
20
The study will look at the different types of CSR activities undertaken by
Vodafone in areas of education, culture, health, sports and rural
communities. The study proposes to identify and ascertain how its activities
are being perceived. The organisation under this scope is Vodafone. The
researcher intends to find out the CSR activities of the company and how it
perceived by its customers, and what it has to do to include other
communities and institutions into its CSR projects.
1.7 Organization of the study
Chapter one of the project work includes the introduction, background
statement, problem statements and research objectives, significance of
study and scope of study.
The chapter two of the study deals with relevant literature review in the area
of the study. In addition, it evaluates the relevance of the theories that
underpin the study. Finally, it elaborates on the background history of
Vodafone Ghana.
The chapter three discusses the appropriate methodology of the study. It
used questionnaires to collect data through the purposive sample to sample
respondents.
Chapter four looks at analysis of the data collected in the study. It elaborates
on the data collected through the questionnaires administered to Tema
21
Community 19 Regimanuel-Gray Estates residents. This chapter also unveils
the interpretation of the findings in the study.
Chapter five, which is the final chapter, centers on the discussions based on
data explained in chapter four. It also includes the limitations, some
recommendations as well as the conclusion of the study.
CHAPTER TWO
2.0 Literature review
This chapter seeks to review related literature. The literature being
reviewed in the chapter takes the form of research or project works, books,
journals and magazines written and published on the subject matter.
Most scholars of CSR have expressed diverse views on the subject. Theories
that inform the study will be addressed whiles background of the company
will be elaborated.
2.1 Theoretical Framework
This study attempts to find a place for the significance of CSR on its
customers. Here theories that support and speak against CSR would be
discussed.
2.1.1 Social contract theory
22
One of the theories identified by scholars to have brought about Corporate
Social Responsibility is the Social Contract Theory. This theory of social order
was made popular in the seventeenth and eighteenth centuries by Hobbes,
Locke and Rousseau, although the idea echoes back to Plato (Marshall,
1998). Social Contract Theory is an unwritten agreement between the state
and its citizens in which relative rights and duties of each are expressed. It
holds a broad class of theories that explain the ways in which people form
states in order to maintain social order. The social contract theory postulates
that people give up part of their autonomy to a central governing structure
or the state. This theory forms a central pillar in the well accepted notion
that lawful state power must be derived from the consent of the governed.
According to Hobbes, ‘security and order could only be achieved by a
contract in which all citizens would give up all their individual powers to
central power (the Sovereign), in return for the protection of life and
property’. In its absence, we would live in a state of nature, where everyone
would have unlimited natural freedoms, including the "right to all things" and
thus the freedom to harm all who threaten our own self-preservation; there
would be an endless "war of all against all". To avoid this, free men establish
political community i.e. civil society through a social contract in which each
gain civil rights as a result of subjecting oneself to civil law or to political
authority.
23
Thomas Hobbes (1588–1679), the first modern philosopher to articulate a
detailed contract theory argues that the lives of individuals in the state of
nature were; "solitary, poor, nasty, brutish and short", a state where self-
interest and the absence of rights and contracts prevented the 'social', or
society to function as a collective polity. Life was 'anarchic' (without
leadership/ the concept of sovereignty). Individuals in the state of nature
were apolitical and asocial. This state of nature is followed by the social
contract’.
Another philosopher to tread this road was John Locke. His idea of social
contract differed from that of Thomas Hobbes but retained the central notion
that when people are in a state of nature they will eventually come together
to form a state or collective body for collective security. Locke believed that
individuals in a state of nature will have stronger moral limits on their actions
than Hobbes accepted, but recognized that people would live in fear of
another. Locke believed that when individuals form a state that would
provide a ‘neutral judge’ and that would protect their lives, liberty and
property of those who live in it.
There were violations to this theory. Locke or Rousseau argued that when
failings are found in a contract, it is only wise to renegotiate to change the
terms, using methods such as election and legislature (Hobbes 1651; Locke
1689).
24
Though described as fanciful and imaginative(Marshall,1998), it still raises
many interesting questions and queries about that nature, purpose and
reason for government and the characteristics of the ideal society as
constructed by Locke and Rousseau. (Marshall, 1998 pg 610).
2.1.2 Stakeholder Theory
The stakeholder theory originally constructed by R. Edward Freeman in his
book ‘Strategic Management’ addresses morals and values in managing an
organization. The theory also dwells on organizational management and
business ethics. The theory identifies models of groups which form the
stakeholders of an organization and how their interest and desires can be
addressed. In principle, it addresses the ‘Principle of Who or What Really
Counts’.
In a traditional view of the firm, the stake holder or shareholder is the owner
of the organization and the organization has an unwavering duty to put their
needs first. Proponents of the stakeholder theory argue that other parties
involved include governmental bodies, political groups, trade associations,
trade unions, communities and many others (Rockson, 2008).
2.1.3 Social Responsibility 25
The social responsibility theory is an ethical or ideological theory which
states that an entity whether it is government, corporation, organization or
individual has a responsibility to society. The responsibility can be negative
or positive meaning there is exemption of blame or liability, or there is a
responsibility to act beneficently. Ethical decision making helps to secure
one’s business by minimizing the involvement of government corporations
given special far reaching powers like the Environmental Protection Agency.
It is important to note that the social responsibility theory encourages ‘a
significant element of current thinking about privacy, however, stresses ‘self
regulation’ rather than market or government mechanisms for protecting
personal information’’ (Swire,1997).
2.1.4 Normative Theory
This theory makes a case or test for hypotheses about what is right and
wrong, desirable or undesirable, just or unjust in society. Most sociologists
consider it unlawful to move from explanation to evaluation. In their view,
sociology should strive to be value-free, objective, or at least to avoid
making explicit value judgement. The reason is, most popular philosophies of
social science, believe that conflicts over values cannot be settled factually.
(Marshal 1998)
2.2 WHAT IS CSR26
This is to help the researcher and other researchers have a clearer view of
the category of CSR undertaken by Vodafone, this section tries to explain
what CSR is. There are many views related to what CSR is, and what role it
should play in a corporation. Garriga and Mele distinguish between four main
groups of theories related to CSR, namely instrumental theories, political
theories, integrative theories and ethical theories (Garriga &Mele, 2004).
These four main categories will form the foundation of the following
discussion, this will help explain which kind or type of CSR Vodafone is
undertaken.
2.2.1 Instrumental Theories
These theories view CSR as an instrument which can be utilized in order to
reach economic objectives, like maximizing shareholder value or gaining
competitive advantage (Garriga & Mele, 2004). Milton Friedman is known for
his focus on maximizing shareholder value, and claimed that the only
responsibility a corporation has is to utilize its resources and activities in a
way which increases profits. The only criterion set by Friedman was the
‘rules of the game’ must be kept, meaning obeying rules and regulations,
and maintaining open and free completion without deception
(Friedman,1970). Based on this, one may claim that according to Friedman,
businesses have no responsibility to promote sustainable development,
beyond ensuring economic growth of the company.27
2.2.2 Political theories
The supporters of this theory emphasize the link between society and
business, and the relationship between the amount of responsibility and
power a business has in society (Garriga & Mele, 2004). A central author
advocating this view is Keith Davis (1967), who describes CSR as recognition
by management that a corporation needs a healthy society and environment
in order to survive. A disregard of these societal responsibilities will result in
the corporation ultimately losing its social power, what Davis refers to as the
‘iron law of responsibility’.
2.2.3 Integrative Theories
These theories place the main emphasis on integrating social demands in the
business activities, and claim that businesses rely on society to survive and
grow. The firm is therefore obliged to perform in harmony with social values
and demands. A sub-group to this theory is ‘issues management’ this
includes how a company must identify, analyze and react to certain societal
and political aspects and situations which can have an effect on it.
2.2.4 Ethical Theories
28
In this type of theory, the relationship between corporations and society is
rooted in ethical values. According to this theory a good society is built on
morally correct behaviour. It also advocates that stake holders are persons
or groups with genuine interest in the activities of the company, and that
these interests have intrinsic value.
2.3 Review of related literature
Abena Gyampo of the Ghana Institute of Journalism in a study conducted in
the Western region, specifically the Wassa community looked at the
perception of the community of CSR activities provided by Ashanti Goldfields
Limited. She that most of the people in the communities did not know about
CSR but in their own way understood that some of the projects were the
miner’s responsibility to the community, despite the fact that the
communities were populated by less informed people. They agreed that CSR
should be a compulsory activity that needed to be carried out by Goldfields
after it was explained to them. Most respondents were aware of the
development activities in their communities and did appreciate the effort as
well as agreeing to it. Even though they appreciated the developments, a
higher percentage agreed that the mining firm could do more. Another
percentage of the community was comfortable with the mode of interaction,
29
that is the channels of communication, but preferred the use of durbars and
opinion leader system to reach out to them. (Gyampo, 2007)
Another research work by Delali Andrews conducted at Vodafone Ghana. The
researcher wanted to find out the impact of CSR on the staff and stake
holders of Vodafone. The researcher realised that Vodafone does not
necessarily have a CSR policy. A plan is drawn every year, and this helps
them to know which areas to reach out to. Areas usually covered by
Vodafone are health, sports, culture, non-profit organisations and education.
Due to budget constraints, sports have currently been excluded from their
CSR plan. Vodafone states that its CSR projects are aimed primarily at the
deprived, destitute and physically and socially handicapped. The research
also showed that Vodafone provided an International Communication
Technology centre (ICT) and gave free broadband service to enhance the use
of the centre by the physically challenged. This initiative was extremely
beneficial to the beneficiaries and has given it an enhanced status being the
first in the sub region. This act has also equipped a lot of the physically
challenged in the field of ICT. This enabled them gain employment in a lot of
institutions in the country (Andrews, 2009).
Again, Professor Peter F. Drucker wrote about business and social
responsibility in the ‘Topic journal’. Two American men who probably did not
know each other were among the first business leaders to initiate major 30
community reforms. The first is Andrew Carnegie (1835-1919) who financed
three public libraries. He was the founder of the United States of America’s
steel corporation. He was recognized as one of the richest business men in
the world after retirement. He believed the sole purpose of being rich is to
give away money. He believed in the social responsibility of wealth. This was
his approach to social responsibility. His public libraries created opportunities
for individual self-development. Carnegie accepted that wealth and
economic power entail responsibility for the community. He set the tone
known as the social responsibility of business, a phrase that has become
exceedingly popular. This example was followed by John D. Rockefeller to
Henry Ford.
Julius Rosenwald (1862-1932) fathered the county farm agent system and
adopted the infant 4-h, head, heart, hands and health, clubs for the rural
youth. He owned a mail-order firm called Sears and Reobuck Company. His
concern was with communities and citizens. Rosenwald was known to be
modest, publicity shy and unassuming never preached, but his deeds spoke
louder than his words. He believed that ‘you have to be able to do good to do
well’. Rosenwald saw the need to develop the competence, productivity, and
income of the still desperately poor and backward American farmer.
Rosenwald’s community projects were not business ventures but benefited
his organizations. (Drucker, 1986)
31
Helene Lafferty, .......... University of Utrecht conducted the following
research on three telecommunications companies namely Telenor, British
Telecommunications Group plc and Deutsche Telekom. It was an assessment
of CSR strategies and the role of the UN Global Compact. They are known as
the three ‘frontrunners’ for CSR within the Telecommunications industry. The
study revealed how these three companies perceive and implement CSR.
Similarities and differences between the three companies will be looked at.
These are large multinational companies with their base in Europe. All three
were converted from state-owned to private firms around the same time.
This research was evaluated based upon their definition of CSR; their
motivations behind CSR; their objectives and strategies; and on how CSR is
incorporated in the companies’ general strategies, objectives and values.
The researcher realised that all three companies’ definitions of CSR refer to
the goal of sustainable development. However their focus and company’s
CSR objectives and strategies varied. Telenor for instance, expresses support
for the World Business Council for Sustainable Developments’ (WBCSD)
definition of CSR. Beyond this however, there is little mention of sustainable
development in the company’s strategies or objectives. BT’s CSR definition
clearly focuses on sustainable development and the company includes
sustainable economics as one of its strategic focus areas for CSR. There is
however, no mention of sustainable development in the company’s CSR
objective. Deutsche Telekom’s definition of CSR is directly linked to
sustainable development, and this is also the only company which includes 32
the goal of sustainability in its CSR objective and strategic guidelines. All
three companies stress the importance of maintaining a good reputation
among their stakeholders as a sustainable company, and this has been
identified as one of the most important drivers for CSR for all three
companies. Other motivations behind CSR mentioned by the three
companies are long-term value creation, employee satisfaction and risk
management. It is worth noting that these strategies and objectives are
formulated by people from for instance marketing departments, where CSR
issues have not yet have become a major focus area. Telenor focuses on
reputation as a socially responsible company; BT focuses on providing
technology in a responsible way; and Deutsche Telekom focuses on its role
as being a sustainable company. Summed up, the major goals of CSR and
the motivations behind it are similar for the three companies. However,
related to the goals and strategies of the companies, there is a rather high
degree of variation (Lafferty, 2006).
2.4 Operational definitions
Corporate Social Responsibility- ‘the broad concept that businesses are more
than just profit-seeking entities and, therefore also have an obligation to
benefit society’. A relationship between corporations and societies with
which they interact and it includes the responsibility that is inherent.
(Werther and Chandler 2006)
33
Communication- The act of communicating or the activity of conveying
information between people or a group of people is called communication. It
allows for connection or access between persons or places. It becomes
impossible to think of communication as predominantly a process of
information transmission. (Melkote & Steeves 2001; pg 31)
Stakeholder- A corporate stakeholder is a party that can affect or be affected
by the actions of the business as a whole. (Rockson. 2008)
2.4 Some Areas of CSR undertaken by Ghana Telecom ????????????
Ghana telecom has undertaken a number of CSR activities in Ghana. The
areas covered include health, education, sports, and culture. In the field of
education, Ghana telecom has contributed close to GH ¢30,000 to a number
of educational institutions like Otumfuo Educational Fund, Asogli state, Ga
Traditional Council, New Juaben Traditional Area and many other. Ghana
Telecom University used to be under the then Ghana Telecom now Vodafone.
It is an autonomous entity now.
Again in the field of education, Vodafone seeks to encourage the usage of
broadband in schools. Vodafone has therefore donated a number of
computers and accessories valued at 4,000 Ghana Cedis to a number of
schools. The latest to benefit from this programme is Ghana Secondary
34
Technical in Takoradi, to help promote the use of Information
Communication Technology (ICT) in the school.
According to Ghana telecom, it still believes in promoting the culture of the
Ghanaian. It still sponsors “Ghana’s most beautiful” which seeks to promote
local cultures amongst the youth. Again it has sponsored a number of
festivals which includes ‘Akwantukese’ ‘Homowo’, ‘Fetu afashye’, ‘Bakatue’,
‘Norvinyo’ and others (Rockson,2008). Vodafone partnered the royal Ashanti
kingdom with the sum of 60,000 Ghana Cedis to celebrate the 10 years of
Otumfuo Osei Tutu II reign as King of the Ashanti kingdom.
Within the communities of Ghana, Ghana telecom has identified with some
communities which have benefitted from CSR programmes. This includes;
Sumbrungu - Upper East Region, Fufulso - Northern Region, Adawso - Eastern
Region, Afrisipakrom - Brong Ahafo Region, Sefwi Dwenase - Western Region
and Greater Accra Region. Through its community assistance programme,
Ghana telecom has helped light up the streets of KNUST under a street
lighting project at the cost of 50,000 Ghana Cedis. Ten thousand Ghana
Cedis was donated to the Princess Umulhatiyya Foundation to help build a
primary school for the people of Tootlingli, a village near Tamale, Northern
region.
35
Chapter Three
3.0 Methods
In this chapter, the research will review secondary data and reports on the
performance of Vodafone Ghana and related issues. In research, the task of
identifying problems and finding solutions to them is the ultimate priority. In
the case of CSR, a lot of problems arise when organisations do not fulfil their
obligation to the communities (Kitchen, 2006), one of them being an
unfavourable image. This research will seek to find out if Vodafone Ghana 36
has fulfilled its CSR duties and how such activities are perceived by its
customers.
This chapter will illustrate the methodology in collecting data and how it will
be analyzed. It will cover the sample and population, instruments, design
and procedure.
3.0.1 Social Philosophy
The researcher saw it as a matter of importance to add some aspects of
social philosophy to the project since it talks about observations, knowledge
experience and the use of the senses. Social philosophy is the philosophical
study of interesting questions about social behavior (typically, of humans).
Social philosophy addresses a wide range of subjects, from individual
meanings to legitimacy of laws, from the social contract to criteria for
revolution, from the functions of everyday actions to the effects of science
on culture, from changes in human demographics to the collective order of a
wasp's nest (Blackburn, 1996). It is a wide field with many sub disciplines.
Social philosophy attempts to understand the patterns and nuances, changes
and tendencies of societies. It is a wide field with many sub disciplines. There
is often a considerable overlap between the questions addressed by social
philosophy and ethics or value theory. Other forms of social philosophy
include political philosophy and jurisprudence, which are largely concerned
37
with the societies of state and government and their functioning. Social
philosophy, ethics, and political philosophy all share intimate connections
with other disciplines in the social sciences. In turn, the social sciences
themselves are of focal interest to the philosophy of social science. The
philosophy of language and social epistemology are subfields which overlap
in significant ways with social philosophy. Contemporary philosophical
realism is the belief in a reality that is completely ontologically independent
of our conceptual schemes, linguistic practices, beliefs, etc. Philosophers
who profess realism also typically believe that truth consists in a belief's
correspondence to reality. We may speak of realism with respect to other
minds, the past, the future, universals, mathematical entities (such as
natural numbers), moral categories, the material world, or even thought.
Realists tend to believe that whatever we believe now is only an
approximation of reality and that every new observation brings us closer to
understanding reality. Realism is contrasted with idealism and anti-realism.
Despite the seeming straightforwardness of the realist position, in the history
of philosophy there has been continuous debate about what is real (Blackurn,
1996). In addition, there has been significant evolution in what is meant by
the term "real". The oldest use of the term comes from medieval
interpretations and adaptations of Greek philosophy. In this medieval
scholastic philosophy, however, "realism" meant something different—
indeed, in some ways almost opposite—from what it means today.
38
Another form of philosophy that will be looked at is empiricism. In
philosophy, empiricism is a theory of knowledge that asserts that knowledge
arises from sense experience. Empiricism is one of several competing views
that predominate in the study of human knowledge, known as epistemology
(Blackburn, 1996 PP.119). Empiricism emphasizes the role of experience and
evidence, especially sensory perception, in the formation of ideas, while
discounting the notion of innate ideas (except in so far as these might be
inferred from empirical reasoning, as in the case of genetic predisposition).
According to the empiricist view, for any knowledge to be properly inferred
or deduced, it is to be gained ultimately from one's sense-based experience
(Heywood, 2000). As a historical matter, philosophical empiricism is
commonly contrasted with the philosophical school of thought known as
"rationalism" which, in very broad terms, asserts that much knowledge is
attributable to reason independently of the senses. However, this contrast is
today considered to be an extreme oversimplification of the issues involved,
because the main continental rationalists (Descartes, Spinoza, and Leibniz)
were also advocates of the empirical "scientific method" of their day.
Furthermore, Locke, for his part, held that some knowledge (e.g. knowledge
of God's existence) could be arrived at through intuition and reasoning alone.
Again, Positivism is an epistemological perspective and philosophy of science
which holds that the only authentic knowledge is that which is based on
sense experience and positive verification (Heywood, 2000). The positivist
39
perspective has been associated with 'scientism'; the view that the methods
of the natural sciences may be applied to all areas of investigation, be it
philosophical, social scientific, or otherwise. Among most social scientists
and historians, logical positivism has long since fallen out of favour. Today,
practitioners of both social and physical sciences recognize the distorting
effect of observer bias and structural limitations. This scepticism has been
facilitated by a general weakening of deductive accounts of science by
philosophers such as Thomas Kuhn, and new philosophical movements such
as critical realism. Positivism has also been espoused by 'technocrats' who
believe in the inevitability of social progress through science and technology.
The philosopher-sociologist Jürgen Habermas has critiqued pure instrumental
rationality as meaning that scientific thinking becomes something akin to
ideology itself.
Positivists are guided by five principles:
1. The unity of the scientific method – i.e., the logic of inquiry is the same
across all sciences (social and natural).
2. The goal of inquiry is to explain and predict. Most positivists would also
say that the ultimate goal is to develop the law of general
understanding, by discovering necessary and sufficient conditions for
any phenomenon (creating a perfect model of it). If the law is known,
we can manipulate the conditions to produce the predicted result.
40
3. Scientific knowledge is testable. Research can be proved only by
empirical means, not argumentations. Research should be mostly
deductive, i.e. deductive logic is used to develop statements that can
be tested (theory leads to hypothesis which in turn leads to discovery
and/or study of evidence). Research should be observable with the
human senses (arguments are not enough, sheer belief is out of the
question). Positivists should prove their research using the logic of
confirmation.
4. Science does not equal common sense. Researchers must be careful
not to let common sense bias their research.
5. The relation of theory to practice – science should be as value-free as
possible, and the ultimate goal of science is to produce knowledge,
regardless of any politics, morals, or values held by those involved in
the research. Science should be judged by logic, and ideally produce
universal conditionals (Uddin and Hamidduzzaman, 2009).
Social philosophy forms an important part of any social research work. It
gives the bases for which leading corporate citizens stay a head of the
curve through courses, research findings and analysis. It also helps
companies put theory and best practice to work and this helps improve
the well being of the company and society. Finally social philosophy
improves trust and builds confidence between an organization and the
society.
41
3.1. Population
The researcher’s population was the customers of Vodafone Ghana. It was
narrowed down to the residents of Community 19 Regimanuel-Gray Estate at
Lashibi in the Tema Metropolitan Area. The total number of households
within the community is 200, with the population of approximately 1000
people. The land size is 5000 by 1000. The area is divided into seven
columns. Each column is associated by one of the seven streets in the
community namely Almond, Butternut Crescent, Coconut, Dog, Elm, Farm
and Guava Crescent. Four houses were purposively sampled in each column.
In each household, one person was purposively sampled.
3.2. Sample size
The entire population could not be examined due to time and resource
constraints. A sample can be said to be a representative of the entire
population. It is a subset of the population. The population under study is
community 19 Regimanuel-Gray Estate residents. It is important to state
that a sample that is not representative of the population will not be
accurate to generalize and have results satisfactorily tested. It is however
important to be able to determine a sample size in any research work. This
42
will make the research work authentic and anyone who chances on the work
will know that everyone in the population was represented.
The sample size under this study was fifty (50) respondents out of a 1000
population. This will compute into a representation of (7) respondents from
each street, numbering A-G.
3.3 Instruments
Here the researcher administered questionnaire to the various respondents.
The use of these instruments came about due to the homogeneity of the
population. Each of these steps has been discussed in the project.
3.3.1 Questionnaire
The use of a questionnaire was very crucial to this project. As a research
instrument that consists of a series of questions and other prompts for the
purpose of gathering information from respondents, it offered ample time to
the respondents to answer the questions at their own free will and did not
intimidate them since it can be answered and delivered to the point of need
at a given time. It is also less expensive to use this kind of survey tool. The
difficulty that may arise in the use of a questionnaire will be the respondent
not being able to read and write. The research used two types of
43
questionnaires, which are the open-ended and close-ended questions. The
opened-ended questions allow respondents answer questions according to
their own beliefs and feelings, and provide an opportunity to give in depth
responses. It will allow for responses or statements that are not foreseen in
the construction of the questionnaire (Weather burn et. al.,1992). Close-
ended questions give options whiles the respondent picks answer. The
options given to close-ended questions should be mutually exclusive and
exhaustive. Close–ended questions make for greater uniformity in responses
where the questions do not require any explanatory responses and where
there is the need to remove possible restrictions upon what the respondents
wish to express or explain (Silverman 1994).
3.4 Sampling Design
Lashibi community 19 in Tema Metropolitan Area of the Greater Accra
Region was selected to be the study area. The choice of purposive sampling
was adopted by the researcher because by its application each case has an
equal chance of selection so that the techniques of non-probability statics
can be applied to the resulting information (Marshall, 1998 pg 576). Results
from purposive sampling allows for generalization.
Purposive sampling involves the scions selection by a researcher of certain
elements, events or incidents to include in a research. Purposive sampling is
44
employed when the researcher wants to achieve goals and logic in research.
Purposive sampling strategies are designed to enhance understandings of
selected individuals’ experiences for developing theories and concepts.
In employing purposive sampling, the researcher aimed at getting to the
information-rich. Purposive sampling method is the best way to gain insight
into a new study or to obtain in-depth understanding of an experience or
event (Burns and Grove 2005).
3.5 Procedure
Qualitative research was employed in this project work. Qualitative research
is a term with varying meanings in educational research. The term is often
used interchangeably with terms such as naturalistic, ethnographic, or
subjective. The term ethnographic is referred to an overall rubric for
research using qualitative methods and for ethnographies. In qualitative
research, it is not necessarily assumed that the findings of one study may be
generalized easily to other settings. There is a concern for the uniqueness of
a particular setting and participants. Qualitative research is conducted to
gain insights and discover meaning about a particular experience, situation,
cultural element, or historical event. Qualitative research helps the
researcher to select subjects who hold extensive information about the
experience or situation to be studied (Burns and Grove 2005).
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At this stage of the research, a research assistant was employed to assist in
the administration of the questionnaire. Through the use of purposive
sampling method, customers who use Vodafone were given questionnaires
to answer. A total number of 50 households were selected. The method of
collecting data helped the respondents to answer the questions freely and at
their own pace. The population in this community are mostly professionals
some of whom had ideas about CSR. This enabled easy administration and
answering of the questionnaire.
3.6 Pilot study of questionnaire
This section allows for the pre testing of the questionnaire. Pre testing of a
questionnaire gives room for the researcher to make some corrections or
include some important questions that were not included in the
questionnaire. Pre testing is very important at this stage as it helps the
researcher to evaluate the research instruments to be used. It is a step to
conducting the real research. Developing and testing adequacy of research
instruments and establishing whether the sampling frame and technique are
effective are crucial to the success of every research.
Difficulties faced and corrections made then included in the project work
after it has been conducted to help those who may tread the researcher’s
path in future.
46
REFERENCES
(www.Britannica .com)
(www.ghanabusinesscode.com).
Baker, T., (1994) Doing social research (2nd Ed.), New York: McGraw-Hill Inc.
Blackburn.S., (1996) Oxford Dictionary of Philosophy: Oxford University
Press. Oxford.
Druker, P., F. (1986) Business and Social Responsibility, Topic, United States
Information Agency, Washington D. C.
Grove, K., & Burns. N., The practise of nursing research conduct critique and
utilization: Saunder (5th Ed), Texas
Heywood. Andrew, (2000) Key Concepts in Politics, Blackwell Publishers Inc,
U.S.A: pp-55-115.
Kitchen, P., (1997) Public Relations: Principles and Practice, Thomson
learning; Croatia.
47
Kvale, S., & Brinkmann, S. (2009) Interviews: Learning the craft of qualitative
research interviewing, Sage Publication, California.
Marshal, G., (1998) Oxford Dictionary of Sociology. Oxford University Press.
Oxford.
Melkote, S., & Steeves, L., (2008) Communication for Development in the
Third World, Theory and practice for empowerment, Second Edition, Sage
Publication, New Delhi, Thousand Oaks and London.
Rockson, K., (2008) How responsible has Ghana been to the global Corporate
Social Responsibility (CSR) imperative? An inter-faculty lecture on December
11 at the Ghana Institute of Journalism, Accra GIJ Press.
Silverman.D., (1994) Interpretating Qualitative data, Sage publication,
London.
Uddin.M.,N., & Hamiduzzaman.M., (2009) The Philosophy of Social Science:
The Journal of International Social Research. Volume 2/6.
Wether.B., (2006) Strategic Corporate Social Responsibility: Sage Publication,
inc.California.
www.vodafone.com.gh
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Questionnaire
Hello my name is Amy Mamley Kisseih. I am a student of the Ghana Institute
of Journalism. I am researching on the topic; Vodafone customers’ perception
of Vodafone’s corporate social responsibility activities. I wish to assure you
that any information you may give is purely for academic purposes and will
be kept secret and confidential. Thank you.
1. Are you a customer of Vodafone?
Yes No
2. Why did you choose Vodafone network?
3. How long have you been using Vodafone?
a) 1-6mths b) 6mths-2yrs
c) 2yrs-5yrs d) 5yrs upwards
4. Are you familiar with CSR projects?
a) Yes b) No
49
5. Which of these CSR projects undertaken by Vodafone have you seen or
heard?
a) Ghana’s most beautiful b) Festivals
c) Educational fund d) Community development
6. How do you perceive those projects?
a) Important b) Not important
c) Not applicable
7. What are some of the immediate CSR projects you will want to see in your
community?
a) Specify
Please indicate by marking the appropriate box.
10. Sex: female male
11. Age: 18-30 31-38 39-46 47-54 55-63
12. Professional level
a) Senior staff b) Middle level
c) Junior staff
50
d) Others:
13. Educational level
a) Senior secondary/ O’level
b) Certificate c) Diploma
d) Masters e) Bachelor
f) Professional qualification...please specify
51