CHAPTER ONE

1.0 Introduction

This chapter consists of the background of the study, statement of the problem, objectives

of the study, significance of the study, research questions, and scope of the study and

organization of the study.

1.1 Background of the Study

The field of corporate social responsibility has grown considerably over the last decade.

Many businesses are becoming more active in contributing to society now than used to be

the case. Corporate social responsibility (CSR) issues are now being integrated into all

aspects of business operations and explicit commitment to CSR is made in the visions,

missions and value statements of an increasing number of companies all over the world.

CSR reports issued usually go beyond profit maximisation to include the company’s

responsibilities to a broad range of stakeholders including employees, customers,

community and the environment.

Stakeholder demands on businesses have increased at such a dramatic rate that, given the

immensity of these pressures, large and small firms find it increasingly difficult to avoid

assuming their corporate social responsibility (CSR).

According to Business for Social Responsibility 1999, CSR can be defined as “achieving

commercial success in ways that honor ethical values and respect people, communities
and the natural environment”. CSR at its best bolsters an organization’s status and

communications values to its stakeholders as well as to society. Nevertheless, corporate

profitability has been observed to be the overriding objective in relation to these CSR

practices.

About 70 to 80 per cent of customers give pluses to companies that contribute or sponsor

activities that they believe are worthy, Mulligan (1970). In this light, people will be and

are more likely to be interested in a company that is contributing to a cause like

HIV/AIDS than one that is just promoting or just selling goods and services without

saying what interest it has in ones aspect of society or other.

However, corporate social responsibility has long been a contentious issue not only

among management theorists but also among practitioners. Indeed, Sloan (1964) stated

that,

‘‘. . . the strategic aim of a business is to earn a return on capital, and if in any particular

case the return in the long run is not satisfactory, then the deficiency should be corrected

or the activity abandoned for a more favourable one.’’ This appears to be the overriding

goal of business.

The myth that firms have only one overarching goal within society (i.e. shareholder

wealth maximisation) has, however, clearly become obsolete. A more balanced, value-

based and integrative perspective has evolved (see Anderson, 1998; Holliday et al.,

2002).

Value-based social dynamics are important not only because CSR may help organisations

to attract talent (e.g., Greening and Turban, 2000; Turban and Greening, 1997) but also
because CSR can make a meaningful contribution to financial performance and

organisational effectiveness.

1.2 Problem Statement

Many corporate responsibility initiatives are designed to meet genuine community and
social needs. In Ghana, it is becoming common to see charitable and advocacy
organisaations and development agencies with an agenda by identifying companies with
similar values and CSR focus as theirs. They then develop corporate partnership and
programs around their CSR objectives. On the other hand, some companies pursue and
achieve their economic, social and sometimes environmental goals through various buy-
ins and undertakings with these charitable and advocacy organization.

However, more often than not, the reasons and motivation for some companies to
undertake CSR programmes and partnership as well as associated with social issues,
communities or charitable organizations are not very clear or obvious in these activities.
This has actually led to debates about legitimacy and value of corporate engagement in
CSR initiatives. Other businesses do not have it on their agenda to engage society and
communities at all or on a regular basis, irrespective of the nature of their operations and
relation to their community and or immediate environment. (New York time 13-9-1970)

In addition to the above challenges, most of the CSR studies and literature recorded have
focused on North America and European businesses or societies. There is a paucity of
CSR literature from West Africa and Ghana (Freeman Osei Tutu 2008, lecturer CUC).

1.3 Objective of the Study

The objectives of this study are to:

 Determine the extent to which Ghanaian firms ascribe to the notion of business’

social contract.

 Determine the level of CSR engagement and performance by MTN in Ghana.

  Examine MTN’s motivation to undertake CSR initiatives.

 Examines the influence of the company’s social environment on its corporate

decision making

 Investigate and illustrate the processes involved in implementing some of their

CSR initiatives.

1.4 Research Question

 Does your company owe any responsibilities to society?

 Does your company operate any policy guidelines covering illegal, unethical

and irresponsible corporate behaviour?

 Do you view social responsibility as an element of corporate image building?

 In determining corporate strategy do you take into account any moral and

ethical standards?

1.5 Significance of the Study

This study is important because it will give a comprehensive insight into the an

organization as far as corporate social responsibility is concerned. Findings of the

research work will benefit business owners and managers as well the community at large.

It will also serve as a reference for further study into similar areas by students and

professionals.

This study will further help to orient business organizations to view corporate social

responsibility activities as an essential part of a business.

Also the information provided will help remove erroneous impression that corporate

social responsibility is a mere public relations tool.

1.6 Scope of the Study

The research covered aspects of MTN’s operations related to corporate social

responsibility initiative, the interest area of management and their orientation to CSR.

Further we will look at the public value of the social activity and the public perception as

well. The scope shall consider when CSR was first initiated and its impact on the firm.

1.7 Methodology

1.7.1 Data Sources

The data for the research was collected within the context of the company. Data

collection comprised primary data and secondary data sources. The blend of both primary

and secondary data is believed to provide the necessary data that is reliable to meet the

requirement of the study.

The primary data consists of personal interviews and the administering of questionnaires

to various departments within a MTN Ghana Ltd.

Secondary sources will be related works on the topic from articles, news papers, journals,

text books, magazines and the internet. Also further information was gathered from data

already collected and compiled on the study.

1.8 Organization of the Study

The study is organized into five chapters.

Chapter One

The chapter looks at the background of the study, statement of the problem, research

questions, methodology and the significance of the study.

Chapter Two

This is devoted to the review of various literatures available on the corporate social

responsibility practices in Ghana.

Chapter Three

Discuses the procedures used in data collection and information on the study area.

Chapter Four

This chapter describes the results, data analysis and finding of the research.

Chapter Five

Finally, chapter five is devoted to the summary, conclusion and recommendations made

on the study.