Corporations have come to understand that they are non working in an country where they are the exclusive influencing agents but instead that they exist in a society where they influence with their policies and are influenced besides by the actions of the society. Corporations are born out of the demand of society. Adam Smith ( 1776 ) said “ It is non from the benevolence of the meatman, the beer maker, or the baker, that we expect our dinner, but from their respect to their ain involvement ” ( p. 26 ) . Henderson ( 2008 ) said a free-market system is a market system where the monetary values of goods or demand and supply are determined by both the buyer and the provider without force or the assistance of a 3rd party be it authorities intercessions or whatsoever.
Corporations begin their being by acknowledging a demand of society and making a merchandise which would fulfill that demand, society takes this merchandise and makes usage of it and the more society is interested in the merchandise of the organisation the more the organisation grows. This is the work of the unseeable manus theory of a free-market. Smith ( 1776 ) besides believes that in a perfect competition market the monetary values of goods or the supply of goods would be determined by the manufacturer of the trade good or service and the consumer. This means should a marketer advertise a merchandise at a set monetary value and I chose to purchase the merchandise at that monetary values, so an exchange has taken topographic point in the free -market in that I was non forced by menace or abuse to buy the trade good but instead chose to buy it to fulfill my demand. Should a company sell a Sn of milk for GH cedis 150.00 and I do non purchase it, and authorities did non besides force the company to cut down the monetary value of the trade good, so monetary value would most likely maintain falling until it is of sensible pricing to me the consumer.
There is an expected balance between the personal businesss of the concern and that of the society in that the policies of the organisation are non expected to be damaging to the society and society is besides expected to maintain away from activities which would hold negative effects on the corporation.
In this century it is non plenty for any corporation to accomplish fiscal excellence. Corporations are expected to give back into society by shiping on undertakings which would besides safe-guard the other demands of society. This is known as Corporate Social Responsibility ( CSR ) . CSR can be used by companies as a agency of deriving favor in the eyes of the society or make better image for itself by doing society believe that the organisation cares about society.
Businesss engage in undertakings such as the proviso of clean imbibing H2O, free or subsidised medical attention, constructing undertakings such as schools, clinics and recreational centres amongst others. This paper seeks to sketch what CSR means, how it came approximately, which types of undertakings are embarked on, the pros and cons of it, and whether it is ethical.
Background of the survey
Corporate societal duty besides known as CSR has many definitions of which some are ( Raymond Baueraˆ¦aˆ¦.. ) “ It is earnestly sing the impact of the company ‘s actions on society ” . It is besides defined as “ the duty of determination shapers to take actions which protect and improve the public assistance of society as a whole along with their ain involvements ” ( p.39 ) ( Keith, D. and Blomstrom, L. R, 1975 ) . Another definition of CSR is by McGuire ( 1963 ) who said “ The thought of societal duty supposes that the corporation has non merely economic and legal duties, but besides certain duties to society which extend beyond these duties ” ( p.144 ) .
Assorted definitions have followed the other declared definitions. One of these definitions was by Carol who placed four duties on CSR. Business harmonizing to Carrol ( 1991 ) has four duties and they are the economic, legal, ethical and beneficent duties. The economic duty requires that concerns follow their primary aim which engages in activities or undertakings which result in net incomes or stuff additions. The legal duty besides ensures that concerns work within a jurisprudence staying model and does non go against society ; the ethical duty besides denotes that there are assorted patterns which are non improper but instead unethical in that they are non codified but instead are general behaviors which society scowls on. The ethical facet expects concern to non merely be lawful but besides ethical in their twenty-four hours to twenty-four hours activities. The last duty which is the philanthropic duty is a modern add-on to the duty of society since concerns besides have the construction and resources to do an add-on to bettering society by prosecuting in activities which can assist break the lives of society and non anticipate any material addition from these activities. This political orientation has come under unfavorable judgment by assorted bookmans.
Another author by name Lantos ( 2001 ) places the duties of concern in three ( 3 ) classs which are the ethical, selfless and strategic. The ethical duty is a combination of the economic, legal and ethical facet in that concerns are expected to be productive by following the legal or moral codifications of society and any effort to travel against these Torahs topographic points concern at logger-heads with society since society would non allow its rights to be trampled on by concern. The selfless facet of concern which is concern giving to society without anticipating returns from society has come under assorted unfavorable judgment since some people see it as concern utilizing resources which are chiefly meant to better stockholders capital, and utilizing these resources for activities which do non ensue in stuff addition without the permission of the stockholders. Besides strategic CSR is when concerns engage in activities which better the life criterions of the people and besides benefits the concern organisation. Society besides becomes encouraged to give back to concern and this is another agency of advertizement for companies. All the definitions of CSR have met examination of varied degrees and these unfavorable judgments would be elaborated on subsequently in this paper in ulterior chapters.
Statement of Problem
There have been assorted arguments refering the moralss of corporate societal duty. Most statements against CSR are aimed at the philanthropic or selfless duty of CSR. Some of the outstanding statements against CSR are that the selfless and beneficent facets of CSR are unethical. This is because the corporation takes resources which are supposed to be used for the conducting of activities which would ensue in stuff additions for the company and the stockholders. They use those resources on undertakings or plans which are aimed at cut downing the challenges society faces. “ Business organisations are non normally competent to efficaciously affect themselves in public public assistance issues ( Shaw, W.H. , and Barry, V, 1992 ) ” . This is because they do non hold equal preparation and installations to supply the needed assistance which society desires.
MTN Ghana has indulged in several activities which are aimed at bettering both the wellness and educational sectors of Ghana. MTN Ghana is a communicating service supplier whose corporate vision is to be the taking telecommunication service supplier in emerging markets. It is the primary map of concern to supply quality merchandises which would fulfill the demands of society and do net incomes for its stockholders. MTN Ghana is expected to ease good services for its endorsers, and all resources are expected to be used to ease that good services are provided. This paper seeks to happen out whether the CSR activities undertaken by MTN Ghana are supported or frowned on by the stockholders.
The undermentioned inquiries need to be answered in this undertaking work ;
What sort of CSR activity is practiced by MTN ( strategic or selfless )
Why organisations will take either strategic or selfless signifier of CSR?
What are the effects of CSR on the organisation and the society?
Are the stakeholders in understanding with this type of CSR or any signifier of CSR?
The chosen organisation for this research is a communicating web known as MTN since it is one of the taking communicating service suppliers. MTN was chosen because it has the largest market portion of endorsers in Ghana ( MTN Group, 2008 ) .
Sampling of Respondents
Since this research is a qualitative survey into the attitudes of stockholders towards CSR activities, the research worker would restrict his research to the MTN workers who are non stockholders and top executives workers who are besides stockholders. This is because workers who are non stockholders stand to profit if the resources that are allocated to CSR activities are instead used to better working conditions by increasing wages, allowances and supply better engineering to simplify work. MTN is aso a big company with legion stockholders as such Thursday research worker has decid to restrict himself to stockholders who are top executives because they ave a bettr apprehension of CSR and are im places to do determinations for the company
Relevant information on who the stockholders of MTN Ghana are would be collected from the MTN office in Dansoman due to its propinquity and acquaintance with the research worker. Three of these stockholders in the Greater-Accra part would be interviewed and the needed information recorded. Workers of MTN would besides function as a beginning of informations aggregation since they are privileged with some information the general populace does non hold.
It is the desire of this research worker to roll up informations from three MTN stockholders and three MTN functionaries in the chosen location. The stockholders should be people who have help MTN portions for non less than a twelvemonth, while the workers should be people who have worked for non less than two old ages. The simple sampling method, which is that trying method where all members have an equal opportunity of been selected would be used. This would give all members an equal opportunity ( Tucker, 1998 ) of been selected and by so making cut down research workers bias. The purposive sampling method as sated by Patton ( 1990 ) is that trying method where members are selected based on certain features. This sampling method would besides be used since there are a limited figure of stockholders and workers who may hold a clear apprehension of what CSR means and how it influences them.
Instruments for garnering informations
Data would be collected from both primary and secondary beginnings in that the secondary beginnings include assorted libraries in Accra from which information would be gathered. The cyberspace would besides be used as a beginning of garnering informations. The primary beginnings would be gathered with the usage of structured questionnaires for the stockholders and workers of MTN. This is due to the chance that they may non hold clip for interviews.
Analysis of Datas
The questionnaires would undergo random trying technique from which 50 questionnaires would be analyzed and the consequence would organize the general perceptual experience of the group. Random trying would be used because it presents equal opportunities of choice for every member of the group without attention for gender, ethnicity, race or whatsoever. The interview would besides be considered and the inquiries that would be asked would be based on the research inquiries.
Significance of the survey
Organizations have the duty of easing a good relationship with the community in which they can be found or seek to set up themselves. Businesss apart from non-profit organisations which are into charity plants are expected to maximise net incomes.
The determination of this paper would sketch the pros and cons of CSR and will educate concerns that undertake CSR activities and those who are non. This research will function as a beginning of mention to future research workers who will be interested in CSR and related issues.
2.0 Literature reappraisal
In this chapter, related literature would be reviewed and this reappraisal would take the signifier of research plants, books, magazines, diaries and web articles written or published in relation to this capable affair. Assorted theories refering to CSR would be addressed in this chapter along with a elaborate background into the company been understudied.
2.1 Theoretical Model
This survey attempts to happen a topographic point for the significance of CSR on its stockholders. Here theories that support and speak against CSR would be discussed.
2.1.1 Social contract theory
A outstanding theory which is believed to hold actively contributed to the proponment of CSR is the societal contract theory. This theory was foremost decribed by John locke ( ) who believed that before civil society developed governing organic structures or cardinal governments that regulated the personal businesss of people. Social members lived in a province where they were all equal and had the right to prosecute any involvement without fright of bias. He believed that this society that lacked a cardinal opinion organic structure was non unethical or immoral because they where capable of been guided by the jurisprudence of nature. This jurisprudence of nature harmonizing to Locke was the foundation of morality since it embodied the will of God. This basic jurisprudence commanded that no injury should be done to others with accent on life, freewill and ownership ( Williams, 2004, p.6 in yur word docu ) . The Social contract theory describes an understanding between society and province and underlines the several rights and duties of these two entities. This theory entails assorted other theories that describe why and how societies form provinces in its effort to make a system of societal jurisprudence and order. The theory besides holds that people give up a portion of their sovereignty to a cardinal opinion organic structure or construction that is charged with the duty of modulating societal order. In order words provinces arise out of the joint understanding of all or most members of the society, who agree to release portion of their liberty to the cardinal organic structure and charge this organic structure with the responsibility of guaranting order. Another societal contract theoretician who had a similar belief was ( **Hobbes, 1660 ) ( ) who believed that a society that lacked a cardinal opinion authorization would be a helter-skelter society. He flatly stated that in the absence of an governments control, “ work forces would populate in a province of nature, governed by his ground in the service of his passions and to accomplish his desires work forces would non merely strive for power, but for more power to procure the power he already has. ” ( Thomas hobbesaˆ¦aˆ¦aˆ¦ ) Thomas hobbes fundamentally meant in order to accomplish societal order, persons in society would hold to give up their personal rights to a crowned head who was required to guarantee the protection of life, freewill and ownership. Hobbes believed that without this autonomous people would populate in a province of nature. This province of nature provided the evidences for limitless freedom and therefore gave people the right to prosecute their involvement with complete neglect for other persons, which finally consequences in what he termed as a “ war of all against all ” . Hobbes farther believes that in order to avoid this war, freewomans must set up societies based on societal contracts so as present civil rights to single members who subject themselves to this governing organic structure or political authorization.
Locke and Hobbes have similar believes with the chief disparity been Locke ‘s belief that people in the province of nature would hold steadfast ethical motives although he besides acknowledged that these people would invariably fear each other while Hobbes believed that people in this province of nature would populate a “ lone, hapless, awful, beastly and short ” life. He believed this society would see a changeless instance of pandemonium and lawlessness since all persons would actively prosecute their ain involvement without sing the negative consequence on other members of society. Hobbes believed that lawlessness in the province of nature was solved by the relinquishment of single rights to a cardinal authorization. The similarity of their believes was that a province of nature was a necessary immorality since it laid the rudimentss or foundation for a societal contract which finally consequences in the relinquishment of liberty to a crowned head. This crowned head was they required to protect the lives, freewill and ownerships of the persons and groups within the society
Business exists in the premises of society and as such they both inte-react both straight through trade and indirectly though the effects of the trade such as pollution, or employment. A province of nature can in a sense be compared to a pluralistic society, which harmonizing to McGuire ( * , 1963 ) is “ A society in which there is broad decentalisation and diverseness of power concentration ” . Society and concern have some similar involvement every bit good as disparing involvements. MTN Ghana exists in the Ghanese society. Ghanaians besides have a bureaucratic system where there are presidents, curates and Judgess to whom the citizens and dwellers have delegated authorization to. These leaders have put in topographic point regulations and ordinances of which some have been codified into written jurisprudence and turn to how concerns may work in the Ghanese environment. Since MTN Ghana seeks to run in Ghana it is imperative that they adhere to these Torahs so as to hold a peaceable environment within which they can run. This is because traveling against the regulations and ordinances would convey about a struggle between the house and authorities or society.
There were misdemeanors to this theory. Locke or Rousseau argued that when weaknesss are found in a contract, it is merely wise to renegociate to alter the footings, utilizing methods such as election and legislative assembly ( Hobbes 1651 ; Locke 1689 ) .
Though described as notional and inventive ( Marshall,1998 ) , it still raises many interesting inquiries and questions about that nature, intent and ground for authorities and the features of the ideal society as constructed by Locke and Rousseau. ( Marshall, 1998 pg 610 ) .
2.1.2 Stakeholder Theory
Harmonizing to ( *Carroll, A. & A ; Buchholtz ) ” Stakeholders are those groups or persons with whom an organisation interacts or has mutualities ” ( p.7 ) .The word interest or stakeholder can be used in assorted ways of which some are descriptively and instrumentally harmonizing to ( Donaldson, T and Preston, L. E. 1995 ) . When interest or stakeholder is used descriptively it is used to stand for state of affairss where a individual or group is affected by the direct activities of the organisation. It in kernel shows the relationship between the group and organisation. The word is used instrumentally to stand for state of affairss where the person or group may hold an consequence on the organisation ( Freeman, 1984 ) .Every organisation be it concern, authorities or non-profit has legion stakeholders. Some of the stakeholders stand to profit from the operations of the house whiles others would prefer the shut-down of the organisation. The stakeholder direction construct is placed in three classs. The first requires that a concern knows who its stakeholders are and the sort of interest they have in the personal businesss of the house. The 2nd demand is for the stakeholders to pull off the personal businesss of their stakeholders. Harmonizing to Brummer ( 1991 ) the maximization of net income for the stakeholder ‘s investing is the position of the instrumental usage of stakeholder direction but the normative position looks at the normative claims that lend moral support to the bets. These claims must foremost be good defined and the duties outlined, although in some fortunes it is non known to whom a concern is obliged and the extent of the duty. Evaluation the claims of other stakeholders is besides of import because by first admiting that organisations have assorted stakeholders, struggle between these groups are inevitable and as such these struggles need to pull off and accommodate amicably and that can be done merely when the house knows who the stakeholders are and the sort of claim they have. Freeman ‘s book on strategic direction looks at how houses can run with moral values. The stakeholder direction theory fundamentally addresses the groups that make-up the stakeholders and how best to turn to the involvement and desires of these groups. Stakeholder direction attempts to incorporate groups with a interest in the house into managerial decision-making ( Dome`nec MeleA? & A ; Elisabet Garriga, , 2004 P..59 ) . The stakeholder of MTN have all invested resources into the activities of the house and it is their desire that these investings reap net incomes. There are assorted statements saying that stakeholders are the chief involvement of the house in that it is the responsibility of the house to guarantee that its activities would ensue in the maximization of stockholder net incomes.
The stakeholder direction theory holds that direction needs to cognize who its stakeholders are and achieve the ends of the primary stakeholders every bit good as have an ethical relatnship with the other stakeholders. The stakeholder direction theory looks at the assorted ways direction can hold or further good relationship with all its stakehder groups.
In a traditional position of the house, the interest holder or stockholder is the proprietor of the organisation and the organisation has an firm responsibility to set their demands foremost. Advocates of the stakeholder theory argue that other parties involved include governmental organic structures, political groups, trade associations, trade brotherhoods, communities and many others ( Rockson, 2008 ) .
2.1.3 Social Responsibility
The societal duty theory is an ethical or ideological theory which states that an entity whether it is authorities, corporation, organisation or person has a duty to society. The duty can be negative or positive significance there is freedom of incrimination or liability, or there is a duty to move beneficently. Ethical determination devising helps to procure one ‘s concern by minimising the engagement of authorities corporations given particular far making powers like the Environmental Protection Agency. It is of import to observe that the societal duty theory encourages ‘a important component of current believing about privateness, nevertheless, stresses ‘self ordinance ‘ instead than market or authorities mechanisms for protecting personal information ” ( Swire,1997 ) .
2.1.4 Normative Theory
This theory makes a instance or trial for hypotheses about what is right and incorrect, desirable or unwanted, merely or unfair in society. Most sociologists consider it improper to travel from account to rating. In their position, sociology should endeavor to be value-free, nonsubjective, or at least to avoid doing expressed value opinion. The ground is, most popular doctrines of societal scientific discipline, believe that conflicts over values can non be settled factually. ( Marshal 1998 )
2.2 WHAT IS CSR
This is to assist the research worker and other research workers have a clearer position of the class of CSR undertaken by Vodafone, this subdivision tries to explicate what CSR is. There are many positions related to what CSR is, and what function it should play in a corporation. Garriga and Mele distinguish between four chief groups of theories related to CSR, viz. instrumental theories, political theories, integrative theories and ethical theories ( Garriga & A ; Mele, 2004 ) . These four chief classs will organize the foundation of the undermentioned treatment, this will assist explicate which sort 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 make economic aims, like maximising stockholder value or deriving competitory advantage ( Garriga & A ; Mele, 2004 ) . Milton Friedman is known for his focal point on maximising stockholder value, and claimed that the lone duty a corporation has is to use its resources and activities in a manner which increases net incomes. The lone standard set by Friedman was the ‘rules of the game ‘ must be kept, intending obeying regulations and ordinances, and keeping unfastened and free completion without misrepresentation ( Friedman,1970 ) ” ” ” ” he in kernel agrees with the economical, legal and ethical actions of concern but non the philanthropic aor selfless facet as proposed by Carrol. Based on this, one may claim that harmonizing to Friedman, concerns have no duty to advance sustainable development, beyond guaranting economic growing of the company.
2.2.2 Political theories
The protagonists of this theory stress the nexus between society and concern, and the relationship between the sum of duty and power a concern has in society ( Garriga & A ; Mele, 2004 ) . A cardinal writer recommending this position is Keith Davis ( 1967 ) , who describes CSR as acknowledgment by direction that a corporation needs a healthy society and environment in order to last. A neglect of these social duties will ensue in the corporation finally losing its societal power, what Davis refers to as the ‘iron jurisprudence of duty ‘ .
2.2.3 Integrative Theories
These theories place the chief accent on incorporating societal demands in the concern activities, and claim that concerns rely on society to last and turn. The house is hence obliged to execute in harmoniousness with societal values and demands. A sub-group to this theory is ‘issues direction ‘ this includes how a company must place, analyze and react to certain social and political facets and state of affairss which can hold an consequence on it.
2.2.4 Ethical Theories
In this type of theory, the relationship between corporations and society is rooted in ethical values. Harmonizing to this theory a good society is built on morally right behavior. It besides advocates that interest holders are individuals or groups with echt involvement in the activities of the company, and that these involvements have intrinsic value.
2.3 Review of related literature
Abena Gyampo of the Ghana Institute of Journalism in a survey conducted in the Western part, specifically the Wassa community looked at the perceptual experience of the community of CSR activities provided by Ashanti Goldfields Limited. She that most of the people in the communities did non cognize about CSR but in their ain manner understood that some of the undertakings were the mineworker ‘s duty to the community, despite the fact that the communities were populated by less informed people. They agreed that CSR should be a mandatory activity that needed to be carried out by Goldfieldss after it was explained to them. Most respondents were cognizant of the development activities in their communities and did appreciate the attempt every bit good as holding to it. Even though they appreciated the developments, a higher per centum agreed that the excavation house could make more. Another per centum of the community was comfy with the manner of interaction, that is the channels of communicating, but preferred the usage of durbars and sentiment leader system to make out to them. ( Gyampo, 2007 )
Another research work by Delali Andrews conducted at Vodafone Ghana. The research worker wanted to happen out the impact of CSR on the staff and interest holders of Vodafone. The research worker realised that Vodafone does non needfully hold a CSR policy. A program is drawn every twelvemonth, and this helps them to cognize which countries to make out to. Areas normally covered by Vodafone are wellness, athleticss, civilization, non-profit administrations and instruction. Due to budget restraints, athleticss have presently been excluded from their CSR program. Vodafone states that its CSR undertakings are aimed chiefly at the deprived, destitute and physically and socially handicapped. The research besides showed that Vodafone provided an International Communication Technology Centre ( ICT ) and gave free broadband service to heighten the usage of the Centre by the physically challenged. This enterprise was highly good to the donees and has given it an enhanced position being the first in the sub part. This act has besides equipped a batch of the physically challenged in the field of ICT. This enabled them derive employment in a batch of establishments in the state ( Andrews, 2009 ) .
Again, Professor Peter F. Drucker wrote about concern and societal duty in the ‘Topic diary ‘ . Two American work forces who likely did non cognize each other were among the first concern leaders to originate major community reforms. The first is Andrew Carnegie ( 1835-1919 ) who financed three public libraries. He was the laminitis of the United States of America ‘s steel corporation. He was recognized as one of the richest concern work forces in the universe after retirement. He believed the exclusive intent of being rich is to give away money. He believed in the societal duty of wealth. This was his attack to societal duty. His public libraries created chances for single self-development. Carnegie accepted that wealth and economic power entail duty for the community. He set the tone known as the societal duty of concern, a phrase that has become extremely popular. This illustration 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, caput, bosom, custodies and wellness, nines for the rural young person. He owned a mail-order house called Sears and Reobuck Company. His concern was with communities and citizens. Rosenwald was known to be modest, promotion shy and retiring ne’er preached, but his workss spoke louder than his words. He believed that ‘you have to be able to make good to make good ‘ . Rosenwald saw the demand to develop the competency, productiveness, and income of the still desperately hapless and backward American husbandman. Rosenwald ‘s community undertakings were non concern ventures but benefited his organisations. ( Drucker, 1986 )
Helene Lafferty, … … … . University of Utrecht conducted the undermentioned research on three telecommunications companies viz. Telenor, British Telecommunications Group plc and Deutsche Telekom. It was an appraisal of CSR schemes and the function of the UN Global Compact. They are known as the three ‘frontrunners ‘ for CSR within the Telecommunications industry. The survey revealed how these three companies perceive and implement CSR. Similarities and differences between the three companies will be looked at. These are big transnational companies with their base in Europe. All three were converted from state-owned to private houses around the same clip. This research was evaluated based upon their definition of CSR ; their motives behind CSR ; their aims and schemes ; and on how CSR is incorporated in the companies ‘ general schemes, aims and values. The research worker realised that all three companies ‘ definitions of CSR refer to the end of sustainable development. However their focal point and company ‘s CSR aims and schemes varied. Telenor for case, expresses support for the World Business Council for Sustainable Developments ‘ ( WBCSD ) definition of CSR. Beyond this nevertheless, there is small reference of sustainable development in the company ‘s schemes or aims. BT ‘s CSR definition clearly focuses on sustainable development and the company includes sustainable economic sciences as one of its strategic focal point countries for CSR. There is nevertheless, no reference of sustainable development in the company ‘s CSR aim. Deutsche Telekom ‘s definition of CSR is straight linked to sustainable development, and this is besides the lone company which includes the end of sustainability in its CSR aim and strategic guidelines. All three companies stress the importance of keeping a good repute among their stakeholders as a sustainable company, and this has been identified as one of the most of import drivers for CSR for all three companies. Other motives behind CSR mentioned by the three companies are long-run value creative activity, employee satisfaction and hazard direction. It is deserving observing that these schemes and aims are formulated by people from for case selling sections, where CSR issues have non yet have become a major focal point country. Telenor focuses on repute as a socially responsible company ; BT focuses on supplying engineering in a responsible manner ; and Deutsche Telekom focuses on its function as being a sustainable company. Summed up, the major ends of CSR and the motives behind it are similar for the three companies. However, related to the ends and schemes of the companies, there is a instead high grade of fluctuation ( Lafferty, 2006 ) .