CHAPTER ONE

INTRODUCTION
1.1

BACKGROUND TO THE STUDY

Over the last fifty (50) years, the idea of business social responsibility has continued to evolve
and broaden. The view that total responsibilities are broader than simple economic
responsibilities has become more compelling, more accepted by managers, and more widely
practiced.
The underlying cause of expended social responsibility is the historical force of economic
growth. Social responsibilities arise from the impacts of corporations on society, and as
corporations grow larger, their impacts are greater. Impacts have also become more visible in this
country.
An early and influential statement of the modern idea of social responsibility was made by
Bowen, H.R. (1953). According to him, Social Responsibilities are obligations to pursue those
policies, to make those decisions, or to follow those lines of action which are desirable in terms
of the objectives and values of our society. However, now managers are increasingly aware of
public expectations to act in ways that will go beyond profit seeking and in fact acting to meet
those expectations.
The myth that firms have only one overarching goal within society (i.e. shareholder wealth
maximization) has, however, clearly become obsolete. A more balanced, value-based and
integrative perspective has evolved (Anderson, 1998; Holliday et al., 2002). Value-based social
dynamics are important not only because corporate social responsibility may help organizations

to attract talent (Turban, 2000) but also because corporate social responsibility can make a
meaningful contribution to financial performance and organizational effectiveness.

It is in this regard, that this study is focusing on the corporate social responsibility operations of
Vodafone Ghana Limited as a case study, for which a foundation has been set up with the
following objectives;

To demonstrate Vodafone Ghana's commitment to, and support for, community

empowerment.

To administer social investment programs as part of the core business of Vodafone

Ghana.

To enhance the image of Vodafone Ghana as a responsible corporate citizen.

To develop a holistic corporate social responsibility programme as part of the reputation

management strategy for Vodafone Ghana.

To improve upon the Vodafone brand in all operating areas.

To foster teamwork values among Vodafone Ghana staff through a proactive Employee
Volunteer Association supporting the Foundation's activities in consonance with
Vodafone Ghana's HR Division.

To foster strategic partnerships with other national/international partners and stakeholders

for good corporate citizenship collaboration.

1.2

STATEMENT OF THE PROBLEM

Many corporate responsibility initiatives are designed to meet genuine community and social
needs. In Ghana, it is becoming common to see charitable and advocacy organizations and
development agencies with an agenda by identifying companies with similar values and CSR
focus as theirs. They then develop corporate partnerships 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 partnerships 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.

According to Freeman (2008), most of the corporate social responsibility 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. This makes it difficult for the subject
matter to be thoroughly examined.

This study therefore hopes to contribute to the continually growing literature on CSR activities of
Ghanaian companies or companies operating within Ghana.

1.3

OBJECTIVES OF THE STUDY

The objectives of this study are to:

Determine qualitatively the impact of CSR on the overall performance of Vodafone

Ghana.

Examine whether the Vodafone Ghana has a policy on CSR and the awareness of staff
about such policies.

To investigate To find out which csr programs Vodafone engages in

To ascertain Vodafone Ghanas motivation for engaging in CSR activities.

1.4

RESEARCH QUESTIONS

What is the impact of Vodafone Ghanas CSR initiative on organizational performance?

Has Vodafone Ghana got any policy of CSR and are the employees aware of such a
policy and its implications?

1.5

Which CSR activities have Vodafone Ghana been involved in?

What motivates Vodafone Ghana to undertake CSR activities?

SCOPE OF THE STUDY

This research, which employed the case study approach within the qualitative method of social
research, focused on the CSR activities of Vodafone within the borders of Ghana. In order to
obtain responses about the motivations for such activities, the researcher focused specifically on
obtaining responses from staff working in the Head Office of Vodafone Ghana located in Accra.
Coincidentally, this is where the administration of the Vodafone Foundation which is the CSR
wing of Vodafone Ghana is also centered. Data collection activities were therefore delimited to
the Head Office of Vodafone Ghana.

1.6

SIGNIFICANCE OF THE STUDY

This study is important because it will give a comprehensive insight into the role of firms as far
as corporate social responsibility activities are concerned. Findings of the research work will
benefit business owners and managers as well as 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 their business. Also to remove the erroneous impression that corporate social
responsibility is a mere public relations tool. Finally, this work is purposed to add to the body of
knowledge on corporate social responsibility in Ghana.

1.7

ORGANIZATION OF THE STUDY

The study is organized into five chapters. Chapter one looks at the background of the study,
statement of the problem, research questions, methodology and the significance of the study.
Chapter two is devoted to the review of varying literature available on corporate social
responsibility practices in Ghana. Chapter three discusses the procedures used in data collection

and information on the study area. Chapter four describes the results, data analysis and finding of
the research. Finally, chapter five is devoted to the summary, conclusion and recommendations
made on the study.

CHAPTER TWO
LITERATURE REVIEW
2.1

INTRODUCTION

Every social research can benefit from an existing or a prior knowledge or literature. This is true
whether the research aims at quantitative or qualitative research. Based on the above assertion,
the research aims at reviewing critical literature that relates to the issues under consideration.
This chapter begins with various definitions of corporate social responsibility that exist in
literature, looks at arguments for legitimacy of corporate social responsibility and examines the
practice of corporate social responsibility in developing countries and Ghana especially. The
chapter also reviews various approaches to corporate social responsibility, looks at modern day
drivers of corporate social responsibility and how companies benefit from engaging in corporate
social responsibility. The chapter concludes with operational definitions of various terms that are
used in the report.

2.2

DEFINITIONS OF CORPORATE SOCIAL RESPONSIBILITY

According to his latest writing, Freeman (2010), Corporate Social Responsibility (CSR) is
achieving commercial success in ways that honor ethical values and respect people,
communities, and the natural environment. Furthermore, he asserted that Corporate Social
Responsibility also means addressing the legal, ethical, commercial and other expectations
society has for business, and making decisions that fairly balance the claims of all key
stakeholders.

The Institute of Directors, United Kingdom (UK) (2002) state that CSR is about businesses and
other organizations going beyond the legal obligations to manage the impact they have on the
environment and society. In particular, this could include how organizations interact with their
employees, suppliers, customers and the communities in which they operate, as well as the extent
they attempt to protect the environment.
Davis et al (1975), claimed that Corporate Social Responsibility is the obligation of decision
makers to take actions, which protect and improve the welfare of society as a whole along with
their own interest.
Forstater et al. (2002), defined corporate social responsibility as a companys actions that
contribute to sustainable development through the companys core business activities, social
investment and public policy debate
Corporate social responsibility (CSR) has been defined as the "economic, legal, ethical, and
discretionary expectations that society has of organizations at a given point in time" (Carroll and
Buchholtz 2003, p. 36). The concept of corporate social responsibility means that organizations
have moral, ethical, and philanthropic responsibilities in addition to their responsibilities to earn
a fair return for investors and comply with the law.

2.3

ARGUMENTS

FOR

LEGITIMACY

OF

CORPORATE

SOCIAL

RESPONSIBILITY
Corporations have evolved from the traditional profit-centered model to the socially
responsible model. In line with this, there is a surfeit of definitions in the CSR literature.
Generally, the belief that profit maximization is managements only legitimate goal is seen as
8

one end of a continuum, while at the other end is the argument that businesses are the trustees of
societal property that should be managed for the public good. So, on the one hand, Friedman
(1962) asserted that the business of businesses should remain business; whiles Abrams (1954)
spoke of the firms responsibility to maintain an equitable and working balance among the claims
of the various directly interested groups; stockholders, employees, customers and the public at
large. Bowen (1953) suggested that, the concept of social responsibility emphasizes that
businesses exist at the pleasure of society and that their behaviour and methods must fall within
the guidelines set by society. In support of this, Cyert and March (1963), maintain that economic
and social variables must appear in the corporate decision-making process.

Continuing on this theme, Newman et al. (1985) argue that, socially responsible action for a
business enterprise is that course that enables the enterprise to function as a dynamic resource
converter on a continuing basis. Also, arguing from the so called service principle Lunden
(1988), stresses that although capitalism elevates humanity, companies and managers are still
obliged to undertake social programmes to benefit or serve the public. Wood (1991), expanded
these ideas encapsulating them into three driving principles of social responsibilities. He
identified these as: business is a social institution and thus obliged to use its power responsibly;
business is responsible for the outcomes relating to their areas of involvement with society; and
individual managers are moral agents who are obliged to exercise discretion in decision making.

Fredericks notion of CSR (Frederick, 1997) is that corporations have an obligation to constituent
groups in society other than shareholders and beyond that prescribed by law or union contract.
Similarly, Wood (1991) states that, the basic idea of CSR is that, business and society are

interwoven rather than distinct entities. The World Business Council for Sustainable
Development (WBCSD, 1999) proposes a definition for CSR as 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 as well as the local community and society at
large. The Business Council for Social Responsibility also defines CSR as achieving commercial
success in ways that honour ethical values and respect people, communities and the natural
environment. Steiner and Steiner (2000) state that social responsibility is the duty a corporation
has to create wealth by using means that avoid harm, to protect, or enhance societal assets.

McWilliams and Siegel (2001) describe CSR as actions that appear to further some social good
beyond the interest of the firm and which are required by law. Forstater et al. (2002) see CSR as
actions that contribute to sustainable development through the companys core business
activities, social investment and public policy debate. For Ford (2003), a good company
delivers excellent products and services, and a great company does all that and strives to make
the world a better place. Finally, Pearce and Doh (2005) describe CSR as the actions of a
company to benefit society beyond the requirements of the law and the direct interests of
shareholders

It is therefore evident that the arguments keep advancing with various authorities at each end of
the continuum. Hence the purpose of the research work will help draw some meaningful
conclusions in later chapters as to the importance of CSR and it legitimacy and impact or the
overall performance of a firm and the society as a whole.

10

2.4

THE PRACTICE OF CSR IN DEVELOPING COUNTRIES AND GHANA

The multi-faceted problem of the developing countries; Africa, Latin America and the main
challenges (low per capita income, high population growth rate, weak currencies, low
productivity and so on) made it almost impossible for indigenous companies to undertake social
actions (Austin, 1989) and so most of the social actions were undertaken by multinational
companies like Shell Oil, Uniliver, Mobile, MTN and so on.
Although the CSR concept is recorded to have evolved and broadened over the last fifty years,
literature reviewed does not present any chronological account of CSR practice in Africa, much
more West Africa and Ghana. Much as this may be because of lack of records, studies, and
literature on CSR practice in West Africa/Ghana, there exist records on foreign and multinational
corporate engagement in CSR and corporate philanthropy activities in Africa and Ghana in
consistence with head office policy. Overtime indigenous companies like ICGC, COCOBOARD,
VALCO and GCB are involved in CSR activities.

2.4.1

The Growing Pressure of CSR in Ghana

Although there is no legislative instrument which has a direct bearing on CSR, hence we may
say that firms are not obliged to undertake CSR action, society on its own continually puts
pressure on firms to undertake CSR activities. Over the last decade firms which have grown in
power and influence have been those which operate effectively within a global sphere of
operations. For example MTN, have been operating in the country for about twelve years. They
have in some way contributed to society, by donating to schools, clinics and so on. It is therefore
no wonder that they have been number one on Ghanas club 100 charts for their effectiveness
and obedience to public cry for support in the development of social programs. Today in Ghana,

11

the first question the people of Ghana mostly ask about foreign direct investment is what will
we as a people gain in terms of our development? The pressure has been intensified due to the
advent of consumer right groups and also the general affluence of some Ghanaian populists.

2.5

APPROACHES TO CORPORATE SOCIAL RESPONSIBILITY

In Carrol (1991)s view, for Corporate Social Responsibility (CSR) to be accepted by a

conscientious business person, it should be framed in such a way that the entire ranges of
business responsibilities are embraced. It is suggested here that four kinds of social
responsibilities constitute total CSR: economic, legal, ethical and philanthropic. Furthermore,
these four categories or components of CSR might be depicted as a pyramid. To be sure all of
these kinds of responsibilities have always existed to some extent. But it has only been in recent
years that ethical and philanthropic functions have taken a significant place. Each of these four
categories deserves closer consideration.

Figure 1: The Pyramid of CSR

12

SOURCE: A.B. CARROL (1991)

2.5.1

Legal Responsibility

Businesses, in the pursuit of their objectives, are expected to abide by all the rules, regulations
and laws within the firms industry and country at large. These are normally codified into laws
and they include environmental laws, consumer laws, and contractual obligations and so on. In
one sense, changes in ethics or values precede the establishment of laws because they become
the driving forces behind the very creation of laws and regulations (Carroll, 1996). The civil
rights, environment and consumer associations in Ghana for instance reflect basic alterations in
societal values, which may be considered for eventual legislation. This is why businesses must
subject themselves to environmental, consumer laws etc.

13

2.5.2

Philanthropic Responsibilities

Philanthropy encompasses those corporate actions that are in response to societys expectation
that businesses do to be good corporate citizens. This includes actively engaging in acts or
programs to promote human welfare or goodwill. Examples of philanthropy include business
contributions to financial resources or executive time, such as contributions to the arts,
education, or the community. A loaned-executive program that provides leadership for a
communitys United Way campaign is one illustration of philanthropy. The distinguishing feature
between philanthropy and ethical responsibilities is that the former are not expected in an ethical
or moral sense. Communities desire firms to contribute their money, facilities, and employee
time to humanitarian programs or purposes, but they do not regard the firms as unethical if they
do not provide the desired level. Therefore, philanthropy is more discretionary or voluntary on
the part of businesses even though there is always the societal expectation that businesses
provide it. One notable reason for making the distinction between philanthropic and ethical
responsibilities is that some firms feel they are being socially responsible if they are just good
citizens in the community. This distinction brings home the vital point that CSR includes
philanthropic contributions but is not limited to them. In fact, it would be argued here that
philanthropy is highly desired and prized but actually less important than the other three
categories of social responsibility. In a sense, philanthropy is icing on the cake or on the pyramid
as shown in figure 1.

2.5.3

Ethical Responsibility

The culture, value systems and norms of a people within the businesss area of operation (though
not codified into laws) must be respected. Thus what the community, consumers, employees,
14

shareholders regard as fair and just must be upheld by all, including the business entity. The
business must assert ethical leadership by subjecting itself to moral practices from the planning
process through the production and distribution processes. The health and safety needs of the
consumers, workers and so on, must be adhered to. Simply put, avoid harm to the society and
people by doing what is right, just and fair and by being ethical.

2.5.4

Economic Responsibility

Historically, business organizations were created as economic entities designed to provide goods
and services to societal members. The profit motive was established as the primary incentive for
entrepreneurship. Before it was anything else, business organization was the basic economic unit
in our society. As such, its principal role was to produce goods and services that consumers
needed and wanted and to make an acceptable profit in the process. At some point the idea of the
profit motive got transformed into a notion of maximum profits, and this has been an enduring
value ever since. All other business responsibilities are predicated upon the economic
responsibility of the firm, because without it the others become moot considerations.

2.6

MODERN DAY DRIVERS OF CORPORATE SOCIAL RESPONSIBILITY

Companies owe a responsibility to society, CSR is an element of image-building but it is also

about ethical values. Besides, companies stand to benefit from doing the right thing. Some of the
drivers are:

15

Ethical Consumerism

The rise in popularity of ethical consumerism over the last two decades can be linked to the rise
of CSR. As global population increases, so does the pressure on limited natural resources
required to meet rising consumer demand (Grace et al, 2005). Industrialization in many
developing countries is booming as a result of technology and globalization. Consumers are
becoming more aware of the environment and social implication of their day to day consumer
decisions and are beginning to make purchasing decisions relate to their environmental and
ethical concerns. However, this practice is far from consistent or universal.

Social Awareness and Education

The role among corporate stakeholders to work collectively to pressure corporations is changing.
Shareholders and investors themselves, through socially responsible investing are exerting
pressure on corporations to behave responsibly. Non-governmental organizations are also taking
an increasing role, leveraging the power of the media and the internet to increase their scrutiny
and collective activism around corporate behavior. Through education and dialogue, the
development of community in holding businesses responsible for their actions is growing (Roux
2007)

Governmental laws and Regulation

Another driver of CSR is the role of independent mediators, particularly the government, in
ensuring that corporations are prevented from harming the boarder social good, including people
and the environment. CSR critics such as Robert Reich argue that government should set the
16

agenda for social responsibility by the way of laws and regulation that will allow a business to
conduct themselves responsibly.

2.7

IMPORTANCE/BENEFITS OF CORPORATE SOCIAL RESPONSIBILITY

According the Freeman (2010), the under listed point are the main importance of firms
engagement in corporate social responsibility practices.

Increased Ability to Attract Retain Employees

Companies perceived to have strong corporate social responsibility commitments often find it
easier to recruit and retain employees, resulting in a reduction in turnover and associated
recruitment and training costs. Even in difficult labor markets, potential employees evaluate a
company's CSR performance to determine whether it is the right fit. For example, a survey
conducted by the Aspen institution Initiative for Social Innovation through Business between
1999 and 2001 found more than half of MBA students would seek another job if they found that
their values conflicted with the business where they work.

Reduced Operating Costs

Some corporate social responsibility initiatives can reduce operating cost dramatically. For
example, many initiatives aimed at improving environmental performance such as reducing
emissions of gases that contribute to global climate change or reducing use of agrochemicals also
lower costs. Many recycling initiatives cut waste-disposal costs and generate income by selling
recycled materials (Freeman, 2010).

17

Enhanced Brand Image and Reputation

Customers often are drawn to brands and companies with good reputations in CSR related areas.
A company considered socially responsible benefits both form its enhanced reputation with the
public as well as its reputation within the business community, increasing a company's ability to
attract capital and trading partners (ibid).

Improve Financial Performance

Business and investment communities have long debated whether there is a real connection
between socially responsible business practices and positive financial performance. In the last
decade an increasing number of studies have been conducted to examine this link and in each
case it was established that such links indeed exist. The more corporate social responsibility
activities a corporate entity pursue the better their financial performance. Of course the same
cannot be said of the developing world as they are still picking up on corporate social
responsibility actions (ibid).

Increased Productivity and Quality

Company efforts to improve working conditions, lessen environmental impacts or increase

employee involvement in decision making often lead to increased productivity and reduce error
rate. For example, companies that improve working conditions and labor practices among their
suppliers often experience a decrease in merchandise i.e. defective or cannot be sold (Freeman,
2010).

Reduced Regulatory Oversight

18

Companies that demonstrably satisfy or go beyond regulatory compliance requirements are

given more free reign by both national and local government entities. In the U.S., for example,
federal and state agencies overseeing environmental and example, federal and state agencies
overseeing environmental and workplace regulations have formal programs that recognize and
reward companies that have taken proactive measures to reduce adverse environmental, health
and safety impacts. In many cases, such companies are subject to fewer inspections and
paperwork, and may be given preference of fact-track treatment when applying for operating
permits, zoning variances or other forms of governmental permission. The U.S Federal
Sentencing Guidelines allow penalties and fines against corporations to be reduced or even
eliminated if a company can show it has taken good corporate citizenship actions and has an
effective ethics program in place. (ibid)

2.8

OPERATIONAL DEFINITIONS

Stakeholder: Any group of individuals who can affect or is affected by the achievement of an
organization
Shareholder: An individual, group, or organization that owns one or more shares in a company
and in whose name the share certificate is issued.
Corporation: A firm that meets certain legal requirements to be recognized as having a legal
existence as an entity separate from its owners.
Greenwashing: Activities undertaken by organizations or individuals to portray a good image in
the sight of the public.
Window Dressing: Activities undertaken to alter public perceptions by communicating positive
social responsible behavior while in fact that may not be the actual situation on the ground.
19

20

CHAPTER THREE
RESEARCH METHODOLOGY
3.1

INTRODUCTION

This chapter deals with the research paradigm, research design, sampling, data collection, ethical
consideration, data analysis, validity and reliability and the limitations of the study.

3.2

RESEARCH APPROACH

The research approach is often either quantitative or qualitative (Patel and Tebelius, 1987).
Selectivity and distance to the object of research characterize a quantitative approach whereas a
qualitative approach is characterized by nearness to the object of research (Holme and Solvand,
1991). Both approaches have their strengths and weaknesses and neither one of the approaches
can be held better than the other one. The best research method to use for a study depends on that
studys research purpose and the accompanying research questions (Yin, 1994).

In order to achieve the objectives of this study, a qualitative research approach was adopted. In
qualitative study, the data is collected in a natural setting sensitive to the people and places under
study and the data analysis is inductive and establishes patterns or themes. The final report in a
qualitative study is usually made of voices of participants, the reflexivity of the researcher and a
complex description and interpretation of the problem and it signals a call for action (Creswell,
2007). The choice of the qualitative approach was to allow for a deeper understanding of the
processes of the motivations behind CSR activities at Vodafone Ghana with respect to the
processes, policies and regulations and staff involvement and commitment. Also the qualitative
approach gave respondents the platform to express themselves on issues concerning the

21

implementation of these policies. The qualitative approach also afforded the researcher an
opportunity to be involved in a sustained and intensive interaction with the respondents. The
qualitative approach also makes use of multiple sources of data which enriches the study and
ensures the detailed description of issues by the respondents.

3.3

RESEARCH DESIGN

The case study strategy within the qualitative paradigm was adopted for this study because it
involves an in-depth or intensive description and analysis of a single unit or bounded system. It
is also useful when how or why questions demand explanations (Yin, 2003). Therefore, it was
appropriate to use case study approach since the study was trying to answer a how research
question and more so, as it provides a detailed account of the motivations behind the
implementation of a CSR strategy at Vodafone Ghana.

3.4

RESEARCH POPULATION

The research study was carried out to assess the motivations behind the deployment of CSR
initiatives by corporate organizations in Ghana therefore the research population consisted of all
the companies that have participated or actively participate in CSR initiatives within Ghana.

In this chosen subject area, various players exist consisting of local companies and
multinationals. Out of these companies, Vodafone Ghana Limited is one of the most
distinguished and recognizable brand. They have brought in a lot of innovation in terms of
initiation, administration, implementation and deployment of CSR initiatives due to their
international exposure. The company was therefore chosen because the researcher believed that

22

they are at the forefront of innovation and have established their dominance over the past decade
in Ghana. In addition to this they have nationwide coverage and presence. The target area of the
study was centered on the head office in Accra. The target population of the study included the
staff of Vodafone Ghana Limited and the Vodafone Foundation.

3.4.1

Replication Logic

For this case study, the researcher found it necessary to employ replication logic. Replication
logic is a strategy that uses theory to determine other cases to which the findings of one case can
be generalized (Yin, 2003).
Due to the above-mentioned characteristics and qualities of the chosen case study, the researcher
felt that even though the number of companies was just one, it adequately represented the subject
that was being studied. This will therefore improve the ability to generalize findings to theory
within the industry.

3.5

SAMPLING

3.5.1

Sampling Technique

The sampling method used for selecting the institution and respondents for the study was
purposeful sampling. This ensured that the researcher acquired a wealth of information for a
detailed study. The institution was selected because they were directly involved in the initiation
and deployment of CSR strategies and programs. This therefore qualifies staff who work there as
key informants who can contribute to the understanding of the research problem and as such

23

answering the research questions. In gathering the data, a group of staff such as directors, sales,
marketing and brand managers were targeted.

3.5.2

Sample Size

Due to time constraints the researcher administered the questionnaires to 30 respondents who
consisted of the staff of Vodafones Head Office. The purposive sampling technique was used in
selecting a sample of thirty (30) employees sample. The purposive random sampling was found
to be appropriate and was used to select the sample of 30 key informants.

3.6

DATA COLLECTION

The researcher made use of both primary and secondary data.

3.6.1

Primary Data

Primary data was gathered in the head office of Vodafone Ghana Limited. It was obtained
through questionnaire administration to the members of the sample to elicit information about
the research topic from them. A questionnaire was developed and this was used for the data
collection. Furthermore, direct observations were made by the researcher about the policies and
procedures of CSR by Vodafone in order to verify what had been said on the questionnaires.

3.6.2

Secondary Data

Secondary data was obtained from the Vodafone Ghanas website and industry documents.
Information was also obtained from published and unpublished books, journals, newsletters,
periodicals, articles and the Internet.

24

3.6.3

Data Collection Instrument

Questionnaires were used in collecting primary data. Questionnaires were developed in line with
the research objectives, for selected staff of the organizations selected. The questions in the
questionnaires were open and close ended to allow respondents express their views. The
questions were carefully developed, tested and sorted out before being administered. In all there
were 20 questions enquiring about the respondents background and the respondents views on
the research objectives.

3.6.4

Data Collection Procedure

Questionnaires were personally administered to the sample frame in question both questionnaires
were administered to respondents on the on days that were convenient to the researchers. Contact
was later made to collected responses from respondents.

3.6.5

Data Management and Analysis

Owing to the fact that the analysis did not require rigorous analysis, Excel computer software
was used. Data was entered in to the excel spread sheet and the required percentages were
calculated. The generation of data was categorized in the following forms such as frequency,
responses and percentages.

3.7

VALIDITY AND RELIABILITY

Validity refers to the degree to which a test or an instrument measures or performs the task it is
meant for. Reliability, on the other hand, refers to the replicability or the reproducibility of the
instrument, that is, if it is consistently replicable. The validity and reliability of the instruments of

25

this study was ascertained by following the research objectives and guidelines of questionnaire
design as outlined in Yin, 2003.

3.8

ETHICAL CONSIDERATIONS

Issues of ethical concerns constantly arise in social science research because it mostly involves
human participants. In order to minimize such issues, participation in this research was purely
based on the participants own volition. Thus their informed consent was obtained. The
respondents were made aware of the fact that the research is purely an academic requirement and
as such information gathered will be treated with strict confidentiality. Each participant was
given a copy of the questionnaire, which briefly but clearly explained the purpose and nature of
the study. Furthermore, the researcher sought permission from the respondents to record their
responses and assured them that the recordings were purely for the purpose of the study. Again,
the discussions were treated with confidentiality and anonymity. Even though, the respondents
provided their names, the researcher never made references to any of those portfolios in the
entire study.

3.9

LIMITATIONS OF THE STUDY

A number of challenges were encountered especially during the data collection stage. Some of
these challenges included;

Some respondents were unwilling to respond to certain relevant questions and also to

provide certain salient information due to the sensitive nature of the topic.
Other respondents also felt that the information might be used for other purposes other
than the ones stated in the interview guide.

26

Other respondents also felt that they might be maligned and targeted due to the responses

they gave during the interviews

Also time and resource constraints did not allow the researcher to further widen the scope
of the study to include other hospitals and more respondents. This would have provided
more information which could be more relevant on a nationalistic scale.

However, these limitations did not affect the findings of this research.

27

CHAPTER FOUR
DISCUSSION AND ANALYSIS OF FINDINGS
4.0

INTRODUCTION

This chapter is devoted to the analysis of data, interpretation of data and presentation of findings
based on the topic and the relevant data collected. The findings have been summarized in order
to make reading easier for users of this research work. Various methods of data presentation were
used, including statistical tools, tables and percentages. The views of respondents where
applicable were supported with the findings.

4.1

STAFF RESPONSES TO QUESTIONNAIRE

4.1.1

Gender Distribution of Respondents

Table 1: Gender Distribution of Respondents

Response
Male
Female
Total
Source: Field Data (2013)

Frequency
19
11
30

Percentage %
62
38
100

The staffs responses above shows that 19 (62%) of the respondents are males and 19 (38%) of
the remaingng respondents are female. It is therefore noted that the research captured more males
than females.

4.1.2

Age Distribution of Respondents

Table 2: Age Distribution of Respondents

28

Response
18-30
31-40
41-50
50+ years
Total
Source: Field Data (2013)

Frequency
7
13
5
5
30

Percentage %
22
42
18
18
100

The table above illustrates the following; 7 (22%) of respondents are between ages 18-30 years,
13 (42%) fall between ages of 31-40years of age. Furthermore, 5 (18%) of staff respondents fall
between the ages of 41-50 years and 50 years plus respectively. The reaseachers therefore
deduced that the majority of respondents were between 31-40years, which also happens to be the
active age group in the country.

4.1.3

Educational Background of Respondents

Table 3: Educational Background of Respondents

Response
Ordinary/Advanced Level
Diploma
Bachelors degree
Masters degree
Doctorate degree
Total
Source: Field Data (2013)

Frequency
2
4
15
9
0
30

Percentage %
6
14
50
30
0
100

The above exhibition shows that 3 of the respondents constituting 6 percent of respondents hold
OLevel /ALevel certificates, also 7 of the staff members constituting 14 percent possess
diploma certificates. The remaining 25 respondents constituting 50 percent had degrees and 15
constituting 30 percent had masters degrees. Based on the information provided; the researchers
can therefore say that the company had degree holders making up the majority of staff members.
29

4.1.4

Position of Staff Respondents

Table 4: Position of Staff Respondents

Response
Junior Staff
Senior Staff
Management Staff
Total
Source: Field Data (2013)

Frequency
9
12
9
30

Percentage
30
40
30
100

As based on the sampling technique used, 9 of the respondents constituting 30 percent are in the
position of junior and management staff respectively. The remaining 21 constituting 40 percent
which also makes up the majority are in the senior staff position.

4.1.5

Number of Years With Vodafone

Table 5: Number of Years With Vodafone

Response
1-3 years
4-6 years
7-10 years
11 years plus
Total
Source: Field Data (2013)

Frequency
3
11
12
4
30

Percentage %
10
36
40
14
100

Table 5 illustrates that, 3 employees making up 10 percent have been working with the
oraganisation for about 1-3 years, also 11 employees constituting 36 percent have been working
with Vodafone between the periods of 4-6 years. However, majority of staff thus 12 (40%) have
been with the orgainsation between 7-10years, and the final 7(14%) have been with the firm
since its establishment.
30

4.1.6

Is Your Organization Involved In CSR Activities?

Table 6: Organizations Involvement in CSR Activities

Response
Yes
No
Total
Source: Field Data (2013)

Frequency
30
30

Percentage %
100
100

According to the above table 30 respondents which happening to be 100 percent of respondents
all agree that the firms is involved in CSR initiatives. When asked why it was so, the respondents
all affirmed that it was compnay policy.

4.1.7

Staff Understanding of CSR

Qualitatively, views summorned from staff responses explains that corporate social responsibility
is a recent business philosophy for which business organisation in their quest to make profit must
ensure that their daily activities does not destroy the society (physical structures, morals,
atmostpher). Furthermore, they also explained CSR as companies donating some of its profits
made to the society since it extracts resources from its immediate enviroment for production.

Also some of the corporate social activities or initiatives engaged in by the firm include the
following; supporting education by providing scholarships to students for which one beneficiary
spoke of having obtained assistance to complete his tertiary education.

The firm also engages in providing funds to assist health research, this is evident in various
hospitals where the Vodafone Foundation has adopted various wards, for which they pay for

31

equipment purchases and so on. Finally, the organization also supports entertainment activities
such as football and others as well.

4.1.8

Should Govermental Mandate Be Passed On CSR

Table 7: Views on Governmental Mandate and CSR

Response
Yes
No
Maybe
Total
Source: Field Data (2013)

Frequency
17
7
6
30

Perctage %
57
23
20
100

The findings above shows that staffs have varying views as far governemtal involvement is
concerned. In the table above; 17 (57%) of staffs responded yes, thus they were of the view that
governemt should mandate firm to be socially responsible. Moreso, 7 (23%) of staffs think
otherwise, with the view that government should not mandate firms to practice CSR rather it
should be a voluntary action from firms as against government pressuring firms to do so. The
remaining 6 (20%) said maybe government should mandate firms to practice CSR, the views of
this last group was an uncertain one though. Based on the findings the researchers realised that
majority of the respondents agreed that government should have a legislative instrument
requiring every organisation to practice CSR as part of their operations.

32

4.1.9

Does Your Involvement In CSR Have Any Impact Of The Image Of The Firm?

Table 8: CSR and the Image of the Firm

Response
Positive Impact
Negative Impact
Total
Source: Field Data (2013)

Frequency
30
30

Percentage%
100
100

All thirty respondents, constituting hundred percent were of the view the their involvement in
corprate social responsibility intiative has had a positive impact on their firm. These include; a
positive impact on the firms image, profitability, competitiveness and overall performance of the
organisation.

4.1.10 Have Profitability Gone Up Due To CSR Activities

Table 9: CSR Activities and Profitability
Response
Yes
No
Total
Source: Field Data (2013)

Frequency
30
30

Percentage %
100
100

Out of the thirty responses obtained from staffs, all 30 (100%) were of the view that CSR
impacts positively on their profts. However the percentage increase in performance could not be
determined because they felt that information was only limited to mangement and not for the
public.

33

4.1.11 What Areas of CSR/Philanthropic Actions Do you Strive to Set Your Mark In?
Table 10: CSR Activities Vodafone is Involved In
Response

Frequency

Percentage %

Donation (cash)

11

36

Donations of goods/services (own

Donations of goods/services (others

24

Sponsorship

11

36

30

100

corporate)

of

activities/events

(linked to own goods/services)

Sponsorship of activities/events (not
linked to own goods/services)
Total
Source: Field Data (2013)

Based on the above data 11 (36%) of staff respondents say the firms donates cash and sponsorhip
items not linked with their products respectively. 1 (4%) of respondents says Vodafone donates
its own product as its support to society. And the remaining 12 (24%) claims the firms donates
other firms products as their CSR contribution to society. Eleven respondents (36%) said the
company focuses more on the sponsorship of activities and events not linked to Vodafones
goods and services.
4.1.12 What Dimensions Of CSR Do You Subscribe To?
Table 11: Dimensions of CSR Respondents Subscribe To
Response

Frequency
34

Percentage %

Ethical dimension
Economic dimension
Legal dimension
Philanthropic dimension
All the listed
Total
Source:Field Data (2013)

30
30

100
100

According to 30 (100%) of staff respondents, the firm engages in all the above listed dimenisions
of corporate social responsibilty developed by AB Carroll.

4.1.13 Movtivation Of Engaging In CSR

According to the summary of quality data collected, staff and mangement of Vodafone engage in
CSR activites for various reasons. These include; imagery, profitabiliy, comptitive purposes and
fianally for the good of the society which they regard to be paramount.

4.2

DISCUSSIONS

4.2.1

What Is The Impact Of Your CSR Initiative On Your Organizational Performance?

As based on the analyses made on the questionnaire it is evident according to table 8 and 9, 100
percent of staff respondents were of the view that CSR initiatives has had a positive impact on
the firms profitability though the margins could not be determined from this study. Also overall
image of the firms has been enhanced due to CSR activities. Indeed this impact is in accordance
with assertions made by Osei-Tete 2010 who stated that CSR impacts on profits and imagery
positively.

4.2.2

Has Vodafone Got Any Policy On CSR?

35

According to table 6, respondents gave further information with the view that management has
CSR as part of it overall organizational policy. This view was affirmed by 100 percent of
respondents.

4.2.3

Which CSR Activities Have Vodafone Been Involved In?

In accordance to table 10, the management and staff on Vodafone have been involved with cash
donations, donations of their own products, sponsorship of activities with products purchased
from other organization and also donation of other items.

4.2.4

What Motivates Vodafone To Undertake CSR Activities?

According to the summary of qualitative data collected, staff and mangement of Vodafone
engage in CSR activites for various reasons. These include; imagery, profitabiliy, comptitive
purposes and fianally for the good of the society which they regard to be paramount.

36

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1

INTRODUCTION

This chapter presents the concluding parts of the study. The chapter presents the summary of the
major findings, drawn conclusions, and then suggests appropriate policy recommendations for
the effective adoption and implementation of CSR by telecommunication firms.

5.2

SUMMARY OF FINDINGS

The current study examined why corporate organizations in Ghana practice or under take
Corporate Social Responsibility activities. The study therefore adopted Vodafone Ghana as the
case study. A number of specific objectives were examined and are:

To determine the impact of CSR on the overall performance of Vodafone

Examines whether Vodafone has a policy on CSR

To investigate Vodafones level of involvement in CSR initiatives

To ascertain Vodafones motivation for engaging in CSR activities

To ascertain the processes adopted in selecting key customers accounts by Unique FM

The study adopted the use of a descriptive research strategy for which both primary and
secondary data were used. Secondary data was collected from staff records and other external
sources; while primary data was collected from staff (field data) through the use of
questionnaires.

37

Questionnaires were administered to thirty employees of Vodafones at the head quarters in

Accra who were sampled purposively. Analysis of responses was done using Microsoft excel
making used descriptive data such as percentages, frequencies and tables.

5.2

CONCLUSION

Sequel to the findings above, the following conclusions was drawn;

The researcher concluded that Vodafone Ghana limited is involved in corporate social
responsibility activities which is mainly as a result CSR being part of its corporate policy.
More so, it recommended that government should be involved in CSR initiative by
coming out with a legislative instrument requiring firms to be necessarily involved with
CSR initiative.

The research noted that the practice of corporate social responsibility of the organisation
had impacted positively on the image, market share, brand visibility and profitability
which are the main reason for Vodafones involvement in corporate social responsibility
activities.

The researcher also concluded that Vodafones corporate social responsibility actions
usually focus on cash donations and the sponsorship of events with items and goods that
were not directly associated with their products and services.

5.3

RECOMMENDATIONS

Based on the findings the researcher made the following recommendations;

It is recommended that top management and all other stakeholder be part of setting up
CSR programmes and policies to ensure that only relevant programmes and also pressing
38

issues in society are considered as against a company enforcing it own CSR activities on
a community.

To ensure companies become more socially responsible, it is recommended that

government should a pass legislation ensuring that firms add corporate social
responsibility as part of their operations.

In addition it is also recommended that CSR initiatives should to just not be tied to cash
donation as the main factor, but also donations that are intangible such as education
projects such as health education and scholarship for students as well.

The researcher for the stake of generalization of findings recommended that future
researchers or institutions researching on the same or similar topic should consider a
larger sample size and a multiple case study approach. This will ensure a more detailed
covered of the topic and also providing findings that can easily be adopted by other
research or institution for immediate use.

39

REFERENCES
1. A.B. Carroll, A Four-Dimensional Conceptual Model of Corporate Social Performance,'
Academy of Management Review, 4, 4 (1991): 497-505.
2. Anderson, R. (1998), Mid-course Correction: Toward a Sustainable Enterprise: The
Interface Model, Peregrinzilla Press, Atlanta, GA.
3. Andrew Carnegie (1835 1919) courtesy of the Library of Congress.
4. Adam Smith Journal of Political Economy, April 1927.
5. Bowen, H.R. (1953), Social Responsibilities of the Businessman, Harper & Row, New
York, NY, p. 6.
6. David C. Korten Limits to the Social Responsibility of Business, the people Centered
Development Forum, No. 19, June 1, 1996.
7. David L. Mathison European and American Executives values, Business Ethics: A
European Review, April 1993.
8. Forstater, M., MacDonald, J. and Raynard, P. (2002), Business and poverty: bridging the
gap, paper presented at the Prince of Wales International Business Forum, London.
9. Frederick, W.C. (1994), From CSR1 to CSR2: the maturing of business and society
thought, Business and Society, Vol. 33 No. 2, pp. 150-64.
10. Friedman, M. (1962), Capitalism and Freedom, University of Chicago Press, Chicago, IL,
p. 10.
11. Osei-Tete Freeman Corporate Social Responsibility second edition 2008.

40

12. George A. Steiner and John F. Steiner Business Government, and Society Ninth edition
2000.
13. Holliday, C.O., Schmidheiny, S. and Watts, P. (2002), Walking the Talk: The Business
Case for Sustainable Development, Greenleaf, Sheffield.
14. Keith Davis and Robert Blomstrom. Business and its environment (New York; Mc Graw
Hill, 1966)
15. Turban, D.B. and Greening, D.W. (1997), Corporate social performance and
organizational attractiveness to prospective employees, Academy of Management
Journal, Vol. 40 No. 3, pp. 658-72.
16. Wood, D.J. (1991), Corporate social performance revisited, Academy of Management
Review, Vol. 16No. 4, pp. 691-718.

41

APPENDIX
QUESTIONNAIRE FOR STAFF OF VODAFONE
I am a final year student the Ghana Institute of Journalism conducting a research on the topic:
Why Organizations Embark on Corporate Social Responsibility Programmes (A Case Study of
Vodafone Ghana). I will be grateful if you will take some time off your busy schedule to respond
to this questionnaire. Any information provided will be for academic purposes only and your
answers will be aggregated with others and treated with utmost confidentiality

[Please state or tick the appropriate box bearing your answer to the question]
1. Gender of Respondent: Male [ ] Female [ ]
2. Age Distribution of Respondents:
18-30[ ] 31-40 [ ] 41-50 [ ] 50+ years [ ]
3. Marital Status:
Single [ ] Married [ ] Divorced [ ] Separated [ ]
4. Educational Background:
Ordinary/Advanced Level/ Diploma [ ] Bachelors degree [ ] Masters degree [ ]
Doctorate degree [ ]
Any other, please specify..
5. Position in Organization: Junior employee [ ] Senior employee [ ] Management [ ]
6. How long have you being working with the organization:
1-3 years [ ] 4-6 years [ ] 7-10 [ ] 11 years and above [ ]
7. What is your understanding of an organization being socially responsible?

42

8. Is your organization involved in CSR activities?

Yes [ ] No [ ]
9. If yes, what are some of the CSR activities?

10. Do you think that government should enact laws to make social responsibility of business
mandatory? Yes [ ]

No [ ]

Maybe [ ]

11. Does your activity pose environmental or health hazards to members of the community?
Yes [ ]

No [ ] Sometimes [ ]

12. Do you believe that corporations, in general, should be socially responsible?

Yes [ ]

No [ ]

13. Does your organization contribute more to social activities only when it makes more
profits? Yes [ ]

No [ ]

14. Do you recommend CSR to other firms? Yes [ ] No [ ]

15. Does your involvement in CSR have any impact of the image of the firm?
Positive Impact [ ] Negative Impact [ ]
16. What dimensions of CSR do you subscribe to?
Ethical dimension [ ] Economic dimension [ ] Legal dimension [
dimension [ ] All the listed [ ]
17. Have profitability gone up due to CSR activities
Yes [ ] No [ ]

43

] Philanthropic

18. If yes? By what percentage

19. Are your CSR actions targeted at specific group of people?
Always [ ]
Sometimes [ ]
Really [ ]
Usually [ ]
Never [ ]
20. What areas of philanthropic actions do you strive to set your mark in?
Donation (cash) [ ]
Donations of goods/services (own corporate) [ ]
Donations of goods/services (others) [ ]
Sponsorship of activities/events (linked to own goods/services) [ ]
Sponsorship of activities/events (not linked to own goods/services) [ ]

Thank you for your time

44