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
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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
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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.
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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
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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
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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
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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)
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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
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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.
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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
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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.
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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
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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.
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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.
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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
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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
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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.
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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
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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
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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
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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