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Special Report

MTN: A Case Study Of How CSR Impacts Performance
By Harry Okoruwa

  The idea, practice or concept whereby organizations consider the interests of society by taking responsibility for the impact of their activities on customers, suppliers, employees, shareholders, communities and other stakeholders, as well as the environment is known as Corporate Social Responsibility and is fast becoming an imperative when mapping out business strategies.
In the beginning, CSR was associated with simple donations to people and
 

communities but today, it has transcended 'doing good' or mere tokenism to corporate business strategy. Today, the world increasingly demands not only the financial reports of a company but also the report on commitment to social issues- Corporate Social Investment.

Internationally, these reports are known as 'The Triple Bottom Line'. Within the framework of 'Triple Bottom Line', companies and businesses will have to provide a detailed report on contributions made to corporate social investment therefore, eliminating insignificant contributions referred to as “Window Dressing”.

Thus, CSR has replaced the philanthropy of earlier years, which involved ad hoc donations inspired by vague notions of 'doing good' to becoming an integral business strategy which fully committed to and combined with commercial competence gives a good chance of strong environmental impact.

In a recent research conducted in the United States by Fortune, a global business magazine published by Time Inc, the most successful 500 companies all have a CSR strategy which is very robust and which enables them to become part of the structure of the societies in which they operate.

Why are these companies in the research doing so well one may ask? One of the answers as pointed out above lies in the fact that societies are becoming more aware and sensitive to social issues. As a result, people and corporate bodies have begun to restrict patronage

 

only to those businesses committed to ameliorating the wealth and opportunity inequalities in their own countries.

In the light of this development, therefore, telecommunications giant MTN will continue to lead in the telecoms sector for a long time to come.

MTN is the only telecoms company in Nigeria that dedicates a percentage of its annual profit to CSR initiatives across the country. MTN has a dedicated Foundation through which its CSR initiatives are implemented. The

MTN Foundation (MTNF) was commissioned in May 2005 to impact the lives in communities by intervening through projects in three key focal areas, namely Education, Health, and Economic Empowerment.

The most profound initiative of the Education portfolio of MTNF is the SchoolsConnect project. The project involves the provision of computers with VSAT interconnectivity to aid both the teachers and students. In simple terms, the project provides schools with digital laboratories which enhance the teaching and learning in secondary schools in Nigeria.

The laboratories aid effective learning while at the same time aiding and improving the knowledge base of the teachers. In addition, the teachers of the beneficiary Schools are trained in the use of these facilities to enable them access them and in turn transfer the knowledge gained to other teachers who will in turn transfer these skills to students. Thousands of teachers have gone through this train-the-trainer aspect of the SchoolsConnect initiative.

In addition, over 85,640 students have benefited from these digital laboratories. Till date, 49 schools across 12 states including the FCT have received these facilities. Meanwhile the project is expected to increase to 61 beneficiary schools by the end of 2008.
Apart from the secondary schools, MTNF deemed it fit to have a replica of such novel project in the tertiary institutions in the country.

 

To this end, MTNF introduced UniversitiesConnect.

These digital laboratories or libraries whichever one may prefer to call them have received commendations from the students and lecturers of the beneficiary institutions.

Students have found it easier to have access to unlimited information useful to them for assignments, exams, essay competitions and indeed for knowledge in general.

Lecturers, on the other hand, find the digital library as resource of immense value to research and other academic purposes.

The first phase of this project saw University of Lagos and Ahmadu Bello University benefiting from the project. Other national Universities should hopefully follow suit.

Investing in talents is another aspect of the Education portfolio of MTNF. The Foundation has been able to identify young talented people who are now undergoing training at the prestigious Muson Music School in Lagos. In all, a total of 220 music talents trained in singing and the use of most of most musical instrument will be supported over a period of five years.

By investing in Education, MTNF has helped to lay the foundation of a growing pool of skilled workforce which is indispensable to every developing economy.

The Health portfolio which is the second major portfolio of the foundation is contributing to efforts to stem the tide of the HIV/AIDS scourge in our society. It has initiated a project that will help to reduce the rampage of the disease by creating awareness. The project is known as MTNF Partners Against Aids in the Community (MTNF PAAC).

The project has established six voluntary Counselling and Testing centres in Lagos, Imo, Sokoto, Cross River, Gombe and Kogi states. MTNF PAAC has made it possible for thousands of Nigerians to become aware of their status as regards HIV/AIDS before the disease enters its devastating stage.

These centres offer free testing services to thousands of Nigerians who may not be able to afford the cost of such test in the hospital and importantly giving advice and counselling to those who are carrying the virus. MTNF PAAC has also deployed self instructional HIV/AIDS Touch Screens in various centres to increase the awareness of the disease in all its ramifications-from how it is contacted to symptoms, the stages and how it can be managed.

Interestingly, MTNF PAAC empowers people living with HIV/AIDS through businesses and skills acquisition training. These businesses and training have brought back confidence of the numerous HIV/AIDS patients that have undergone this special programme.

They no longer see themselves as societal rejects but rather as people who can still contribute to the good of their communities and the whole country at large through the businesses they run and the skills they have acquired.

Another remarkable project of the Health portfolio is tagged MTNF project clean. The project seeks to keep the local environment clean and healthy.

Apart from cleaning these communities, the project has gone further to provide waste recycling plants using Alesinloye market in Ibadan as a pilot scheme.

These recycling plants when they are fully deployed will help in the

 

prevention of the waste of potentially useful materials; reduce air (incineration) and water (from landfilling) pollution by reducing our need for “conventional” waste disposal and lowering greenhouse gas emissions which is deadly to the Ozone layer.

Yet another project of MTN Foundation is one in which children who are at risk on the account of HIV/AIDS are taken care of and provided for. The project is called MTNF CARES. CARES is an acronym for Children At Risk Empowerment Scheme.

In this project, children who are Orphans and those who are vulnerable are identified and they are not just given medical support but also educational assistance through the provision of exercise books, bags and text books etc. It is worthy to note that only people who are healthy can meaningfully be productive and as such the investments made by MTN in the health sector are worthy of emulation.

The economic Portfolio of MTNF, the third major platform, seeks to restore human dignity by creating opportunities and means for the less priviledged of the society to live productive lives. Rural Telephony Project falls under this portfolio. The rural telephony project empowers by providing them with equipment needed for call centre services in their communities.

On account of this project, these women often referred to as Phone Ladies, now earn respectable income with which they are better able to cater for the families confirming the adage which says empowering a woman amounts to empowering a family. Basically, over 400 women have been empowered in 14 states. Family wise, considering the size of the family of individual phone ladies, the number of people that have been empowered will be running into thousands.

To alleviate the problems shelter poses to average Nigerians in the Country, the Economic and Empowerment portfolio went in partnership with an NGO, Habitat for Humanity to provide low cost housing units. The first phase of this project was concluded and commissioned in Nassarawa State. The partnership brought the provision of 100 housing units comprising two bedrooms, a living room, kitchen and bathroom to 100 selected beneficiaries in the new Karu community in Nasarawa state.

The Economic Empowerment portfolio has also partnered with Lady Mechanic an NGO in training of 50 young ladies in auto repairs. This way, these young women are being provided with the skills and wherewithal to guarantee sustainable livelihood.
For a nation to grow economically, and to have an improved increase on per capita income, empowerment is invaluable.

   
       
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