CHAPTER ONE

INTRODUCTION

1.1 Background of the Studyrticle introduces a conceptualization ofcorporate

Corporate social responsibility can be acquired from the

three words within the name: “corporate”, “social”,

“responsibility”. Corporate social responsibility has been

defined by various scholars across the globe and some

amongst the few of such definitions are: CSR isa concept

whereby organizations consider the interests of society by

taking responsibility for the impact of their activities 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 (Freeman Osei-Tete,2010). Holme and Watts

(2000), also defined Corporate Social Responsibility (CSR)

as the continuous 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 the society at large.The past few

1

years have witnessed the immediate development of the

globalization movement, of shareholder activism, and of

corporate governance reform. This trend has cultivated a

climate of defiance toward businesses, a climate that has

only been exemplified by recent accounting scandals. Perhaps

in response to this growing suspicion, some leading

companies have openly profiled themselves as socially

responsible,Sen and Bhattacharya (2001). For instance

Vodafone Ghana has adopted a strategy which promotes

corporate social responsibility and they call it “Vodafone

Health line”. This enthusiasm for corporate social

responsibility (CSR) has been echoed in the marketing

literature. In particular, scholars have examined consumer

responses to

CSR initiatives, the perceived importance of ethics and

social responsibility among marketing practitioners, along

with the marketing benefits resulting from corporate actions

with a social dimension example, Maignan, F. and Hult.

(1999).

2

Since the 1950s, CSR along with the related concepts of

corporate social responsiveness, corporate social responses

and corporate social performance have been the subject of

many conceptualizations originating mainly from the

management literature. This section outlines the main

conceptual viewpoints that emerge out of this generous

works. CSR as social obligation. This was first launched by

Bowen (1953), who defined CSR as the obligation "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" (p. 6). The view of

CSR as a social obligation has been encouraged in later

conceptualizations (e.g., Carroll 1979) and contemporary

marketing studies (e.g., Brown and Dacin 1997; Sen and

Bhattacharya 2001. CSR as stakeholder obligation startedin

the mid- 1990s. A number of scholars have opposed that the

idea of social obligation is too broad to facilitate the

effective management of CSR. (Jones 1995; Wood and Jones

1995) argue that businesses are not responsible toward

society as a whole but only toward those who directly or

3

indirectly affect or are affected by the firm's activities.

These different actors are called stakeholders and can be

regrouped in four main categories (Henriques and Sadorsky

1999): Organizational (e.g., employees, customers,

shareholders, suppliers), Community (e.g., local residents,

special interest groups), Regulatory (e.g.,

municipalities, regulatory systems), and Media

stakeholders. CSR as ethics driven. The views of CSR as

either a social or a stakeholder obligation imply that CSR

practices are motivated by self-interest: they enable

businesses to gain legitimacy among their constituents.

Swanson (1995) regrets that such approaches fail to account

for a "positive commitment to society that neglects self-

interest and concerns" (p. 48). In addition, the view of

CSR as an obligation fails to provide normative criteria to

evaluate the extent to which actual business practices can

or cannot be considered as socially responsible (Jones

1995). With philanthropic donations or employee-friendly

policies, a firm may just conform to social norms; yet,

these initiatives may also be "a protective expression of

4

corporate power" (Swanson 1995:50). Based on these

criticisms, some scholars advocate an ethics-driven view of

CSR that asserts the rightness or wrongness of specific

corporate activities independently of any social or

stakeholder obligation (e.g., Donaldson and Preston 1995;

Swanson 1995). For example, following justice-based ethics,

a company could attempt to systematically favor decisions

and procedures that stimulate equality, liberty, and

fairness of opportunity for its various partners and

associates. CSR as managerial processes. The three

perspectives introduced thus far essentially characterize

the factors inducing

businesses to commit to CSR. In contrast, a number of

authors have depicted CSR in terms of concrete

organizational processes often analyzed under the label of

corporate social responsiveness, For example, Ackerman

(1975) outlined three main activities representative of

corporate social responsiveness: (a) monitoring and

assessing environmental conditions, (b) attending to

stakeholder demands, and (c) designing plans and policies

5

aimed at enhancing the firm's positive impacts. Similarly,

Wartick and Cochran (1985), along with Wood (1991),

suggested that issues management and environmental

assessment constitute two sets of managerial processes

useful to achieve a practical social responsibility

attitude. Given the variety of the views outlined above, it

is obvious that no single conceptualization of CSR has

dominated past research. The assessment and assimilation of

past definitions is especially difficult because scholars

have considered the social responsibilities of different

conceptual entities, including (a) businesses in general,

(b) the individual firm, and (c) the decision maker (Wood

1991 ).

1.2 Statement of the Problem

The role of most businesses is to maximize profits for its

shareholders by providing goods and services which satisfy

customers’ wants. This major objective shows that business

organizations have additional responsibilities to the

society in which they operate and to their customers. For

some time now, glocalization and the use of technology has

6

accelerated and as a result of this, many companies have

realized that in order to stay competitive, productive and

effective in today business world, they must practice

corporate social responsibility. Organizations must

therefore protect their employees, loyal customers, brand

and their image in order to gain a competitive edge over the

others in the industry.

1.3 Objective of the Study

How companies relates to its stakeholders can greatly

contribute to the sustainability of its business success,

therefore the study seeks ,

To access the concept of corporate social responsibility and

competitive advantage.

To determine whether the concept will be sustainable

To determine the effects it will have on value creation and

image enhancement for the organization.

Corporate social responsibility can therefore be defined as

the integration of business operations and values, where

the interest of the stakeholders including

customers ,employees, investors or shareholders and

7

environments are reflected in the companies policies and

actions. It can also be defined as the legal, economic,

ethical and discretional expectations that society has of

organization at a given point in time. It is a balancing act

where organizations tread the line between sustainability

and social responsibility. This means open and transparent

business practices that are based on ethical values and the

respect for the government ,employees,customers,the

community and the natural environment.it also means that the

concept is about organizations contributions to a better

society, a clean environment and a shared value with key

stakeholders.

A competitive advantage on the other hand is an advantage

gained over competitors by offering customers greater value,

either through lower prices or by providing additional

benefits and service that justify similar, or possibly

higher, prices.

It is against this background that the study seeks to find

out;

Does corporate social responsibility attract customers?

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Does corporate social responsibility help a company to gain

competitive edge over the others in the same industry?

Does corporate social responsibility create value for

stakeholders?

Does corporate social responsibility help retain customers?

1.4 Significance of the Study

The study seeks to analyze the concept of corporate social

responsibility being used to create competitive advantage by

companies in the telecommunication industry. The research

findings would inform organizations of the importance of

practicing corporate social responsibility. Organizations

would therefore give the concept a role in their long term

strategic plans.

To students, teachers and lecturers, the study would impact

knowledge and could be used as a source of reference. It can

also serve as a source for further research work on a

related topic.

1.5 Methodology

9

Two types of data collection would be considered for this

research. Primary data collection and secondary data

collection .primary data will be used to collect information

from both staff and customers of Vodafone through

questionnaire administration and structured interviews. The

questionnaire would be in two folds; one to be responded by

the staff of Vodafone and the other will be answered by

their customers.

Secondary data will be sourced from monthly and annual

reports, publications and brochures of Vodafone. Others from

National Communication Authority will also be of importance.

The data will then be analyzed and presented as tables and

charts for effective and efficient conclusions to be derived

from the study.

1.6 Organization of the Study

The essay will have five chapters of which this proposals

elaborating on the introduction is the first. The chapter

two emphasizes on literature review of corporate social

responsibility and competitive advantage. The third

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highlights the study of methodology. Chapter four contains

results and discussions and chapter five elaborate on the

summary, conclusions and recommendations.

1.7 Limitations

Due to financial constraints the study will be limited to

Vodafone Ghana and just a little information from MTN Ghana

to help with my comparisons.

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CHAPTER TWO

LITERATURE REVIEW

2.1 Introduction

This chapter of the study will consider the concept of

corporate social responsibility, history background of

corporate social responsibility, importance of CSR,Corporate

social marketing, Telecommunication industry in Ghana,

Vodafone Ghana ,Vodafone Ghana and CSR , Vodafone Ghana

foundation , and last but not the least competitive

advantage.

2.2 Concept of Corporate Social Responsibility

Corporate social responsibility is a concept whereby

organization consider the interest of society by taking

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responsibility for the impact of their actions on customers,

suppliers, employees ,shareholders and all other

stakeholders as well as the environment. (Freeman Osei-

Tete). A single globally definition does not exist because

the concept is still evolving. The concept is always being

redefined to serve changing needs and time. Corporate social

responsibility is a balancing act where organizations tread

the line between sustainability and social responsibility.

This means the concept is about organizations contributions

to better society, and a shared value with key

stakeholders.” Corporate social responsibility embraces two

major concepts – accountability and transparency .in modern

time, stakeholders expect organizations to perform well in

non-financial areas that involve human rights, business

ethics, environmental programs, corporate donations, society

growth, corporate supremacy, miscellany and workplace

issues”(Meghan conolly,2004).

A company’s stakeholders are all those who are influenced by

and can influence a company’s decisions and actions, both

locally and globally.

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A lot of company’s in today world have recognized the need

for corporate social responsibility especially in the

telecommunication industry. According to Bill

Valentino(chairman of the European chambers) , success in

business is based on the relationships companies have with

people.it is the role of marketers to build these

relationships with all their stakeholders if they want to

achieve great success in today’s hypercompetitive

marketplace. Companies are now practicing cause related

marketing to make contributions or donate to a specific

cause based on product sales. Companies are also practicing

corporate social marketing to provide support for the

development and the implementation of a behavior change.

This intends to improve public health, safety, the

environment or community wellbeing. Kotler and Lee

illustrate many of their case studies with charts that

describe how an organization engages in corporate social

causes. Apart from the cause promotions mentioned above,

there are other factors that promote the cause of social

14

responsibility. This was listed out by (Bloom 2004) and they

include

1. Strategic philanthropy and sponsorship

2. Community relations project

3. Sustainable development and green project

4. Economic development programs

5. Quality/ safety improvement programs

6. Self-regulation initiatives

7. Consciousness raising.

2.3 History of Corporate Social Responsibility

“The History of CSR is almost as long as that of

companies”(Freeman Osei Tete 2010). There has been a

generous entrepreneurship in the UK for over 150 years. Old

companies such as Barclays and Cadbury, as well as social

democrat, such as Engels and Morris, investigated with

socially accountable value- based forms of trade. And

Victorian philanthropy could be said to be responsible for

considerable portions of the urban landscape of older town

center’s today (Andrian Henriques, 2003).

15

According to Steiner George (2000), the impression of

corporate social responsibility “has developed differently

around the world because of unique histories, cultures, and

institutions”. The economic melancholy in Europe in 1930s

saw Germany experiencing, rapidinflation.A lot of people

became unemployed across the globe and government also

couldn’t hold the forts. These brought to the rise of

unassertive personalities into the worlds politics. People

like AdolphHitler of Germany and Joseph Stalin of Russia and

japan gained economic and military power due to the

situation. After the war, the government was forced to hold

businesses responsible for societalobjectives such as full

employment, job security, safety measures for workers and

income equality as well as donations towards society, and

not just the payment of taxes out of profits.socialist

Countries that wanted to solve social problems using

government owned enterprises also started operating

entrepreneurial policies and sooner or later transformed

into mixed economy e.g. Germany. This led to pressure on

corporate interties to engage in social actions or be wiped

16

out. Most of the firms that rejected CSR in England and

France were nationalized (steiner 2000). Other countries

such as japan adopted CSR in 1868 and a typical example of a

country that practiced CSR during that time is Asahi

Company. They ended up building the biggest clinic in Tokyo.

Issues relating to CSR gained major grounds after the

1950s(A.B. Carroll) during this period, emphasis moved from

awareness of social and moral concerns to a period where

specific issues-product safety, honesty in advertising,

employee rights, affirmative action, environmental

protection, ethical behavior are emphasized.

Factors such aslow per capita income, high population rate,

weak currencies, capital flight, low productivity, low

savings and other factors of the developing countries in

Africa and Latin America made it difficult for local

companies to accept social actions (James Austin, 1989).

Social actions were therefore taking by global companies

like Johnson and Johnson, and Shell Oil.

In Ghana, the socialist idea of our first president (Dr

Kwame Nkrumah) gave the impression, rightly or wrongly that

17

the state owned enterprises where going to take

accountabilities of social problems. Companies during that

era therefore limited their social obligation to the payment

of taxes. Today, companies such as MTN Ghana, VALCO, Coca

Cola, and Uniliver Ghana practice social responsibility.

Persons and businesses that accumulate great wealth are

obligated to use it for social welfare activities (Steiner

2000).

Social responsibility activities therefore stated from the

capitalist economies through diverse economies to the

socialist countries, it is indeed more felt in the

industrial world.

2.4 Importance of Corporate Social Responsibility

CSR benefits has advanced today (RadleyYeldar2004). CSR has

become significant in the following ways:

Corporate social responsibility has decreased operating

costs and increase operational efficiency.

In spite of the fact that businesses must practice CSR, it

does not lead to loss of capitals. Instead, it leads to

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ecological management and this in turn lead to advance

operational efficiency by reducing waste production and

water usage. A community responsible company deed can

therefore result in environmental, social and economic

benefits. Some construction companies for example reuse

products on site by reducing landfill, plummetingcommunity

and noise disturbance of trucks bringing material to the

site, reducing the environmental impact of damage caused by

heavy wheels and reducing cost for buying new materials

CSR also enhances brand image and reputation.

Companies with good reputation easily get customers. A

company well thought-out as socially responsible can profit

both from its enhanced reputation with the public as well as

its status within the business community, increasing a

company’s ability to attract customers and investors. In

Ghana, CSR is now revolving so a study is being undertaken

to know whether there is a positive correlation between CSR

and enhanced reputation.

CSR also increase sales and customer loyalty.

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Customer despite the fact that they take some few things

such as quality, price and convenience into consideration,

they also consider buying from companies who sponsor a cause

such as supporting children, orphans and any other activity

which promote or enhance human lives. A research conducted

in Accra by the 2002 Human Resource Management students of

the Central University College revealed that only 16%

Ghanaians consider CSR friendly organization before

purchasing their product. The other percentage left don’t.

This clearly show that it is quite new and it’s a process

which is revolving.

CSR also improve financial performance and profit.

Research has showed that companies who practice social

responsibility gain profit when their goods and services are

purchased. This remains a high priority of many CEOs across

the globe.

2.5 Corporate social marketing

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Corporate social marketing is a strategy that uses marketing

principles and techniques to foster behavior change in a

target population ,improving society while at the same time

building markets for products and services(Philip Kotler and

Nancy Lee2004). Organizations who comprehends the unique

value of bringing together corporate social responsibility

into the marketing scope need to know the value they offer

to customers and the values they make known in the creation

of their product and marketing. The value the organization

creates is meant to create a competitive advantage which

will help them differentiate their brand and create a good

and unique relationship with their customers. This makes

marketing and corporate social relationship a little bit

related because most organization are now customer centered

and it means that they are willing to satisfy the various

needs of various customers or stakeholders.

The second most significant driver of customer demand only

after the perception of the quality of a company’s products

or services is corporate reputation.The importance of CSR in

the marketing mix aims to create an unrestricted barrier

21

around a brand and it reputation. The marketing mix is made

up of the 4ps of goods and the 7ps for services and they are

product, place price, promotion, physical evidence, process

and people. Corporate social responsibility transects with”

product”component by seeking to identify how actual goods or

services are related to the end users’ needs and values. CSR

intersects most importantly with the element of promotion

where it plays a key role in the various methods of

promoting a product, brand and reputation.

Kotler and lee identified six types of corporate social

initiative. The first three shows mutually beneficial

commercial relationship between companies and causes and

that is what I will elaborate on.

Cause promotion is the first one and it emphasize on

corporate providing funds ,in kind conditions or other

resources for promotions intended to increase awareness and

concern about a social cause or to support fundraising,

participant or volunteer recruitment for a cause.(Freeman

Osei Tete). An example is, Vodafone Ghana foundation is in

partnerships with communities in various ways and they are:

22

Financial and human resources to support community

initiatives.

Bringing economic, social and environmental benefits to

local communities.

Partnership with non-governmental organizations,

community based groups, civil society and other corporate

bodies who share the foundations vision, mission and values.

The second talks about cause related marketing. This

emphasizes on companies commitment to donate a percentage of

revenues to a specific cause based on the sale of products.

An example is,in December 2009, Vodafone Ghana Foundation

was established and is a registered charity funded by

Vodafone Ghana and the Vodafone Group Foundation. The

Foundation provides an official process for generous

contributions to communities, community groups and Non-

Governmental Organizations (NGOs) in Ghana who are key

partners in answering to social and economic development

matters in the country. Vodafone Ghana Foundation was built

on the philosophy that corporate bodies have a

responsibility to give back to society.

23

Corporate social marketing is the third one and it

emphasizes on organizations support for the development or

implementation of a behavior change campaign intended to

improve public health, safety and the environment.(Freeman

Osei Tete). For example, Vodafone health line which is shown

on TV to provide sponsorship to people who are sick but

cannot provide financial resources to help operate them

outside and within the country.

There are many benefits derived from practicing corporate

social marketing. Organizations and individuals who

participate in CSM will have more information about their

target markets which will help the organization take

decisions to improve upon themselves based on the

information derived. The company will also gain the required

reputation needed to enhance their image which will in turn

lead to growth in sales and the organization as a whole.

2.6 History of thetelecommunication industry in

Ghana.

24

“In 1881 the first telegraph was installed” (then the

British Colony theGold Coast) (Allotey&Akorli, 1999). Ghana

had reached one of the highestteledensities in Africa by

1950: 0.3 mainlines per 100 inhabitants (Michelson, 2003),

but deteriorated at this level for the next forty years

(Haggarty, Shirley &Wallsten, 2002).The incumbent

telecommunication provider, Ghana Post and

TelecommunicationsCorporation (PTC), times past had a

reputation of inefficiency and poor services(Allotey&Akorli,

1999, p.182). During that era, Ghanaians live in rural areas

and more than 80% of all telephone lines were in urban

areas, out of which 53.6% were inAccra. In 1985 the

International Telecommunications Union (ITU) estimated that

atthe then current rate of line growth it would take 80

years to connect everyone onPTC’s waiting list (Haggarty et

al., 2002, p. 6) The time was overdue for reform. Post

andTelecommunications Corporation was privatized and turned

into Ghana Telecom (GT) in 1995.according to history and

facts, Ghana was thesecond African nation to have full

Internet connectivity in 1995.After the liberalization of

25

the telecom sector,there was a huge number of telephones

within a short time. The number ofmainlines reached 1.3

mainlines per 100 persons in 2003 – well above the average

Sub-Saharan Africa (GT, 2003).the most important change,

however, was thephenomenal growth in the number of mobile

telephones.Four mobile phone companies together had 600,000

subscribers in 2003 (GT, 2003). Unrestricted access to

telephonesalso improved significantly. 5,000 payphones were

installedthroughout the country between 1997 and 1999 ,

quite a change considering that there had only been

25payphones (all in Accra) (Segbefia, 2000, p. 83). more

than 10,000communication centers, often providing fax and

Internet services in addition totelephones, also sprung up

in Accra alone ( Falch & Anyimadu, 2003). Bothpublic and

private access to telecom services for Ghana’s 20 million

populations greatly improved. the process of getting fixed

line telephones installed is bureaucratic and cumbersome

and the waiting list were long. Since January 2003 the

Norwegian Telenorhas been managing Ghana Telecom. Ghana

Telecom after managing the company for some years,

26

searchedfor a new investor to buy Telecom Malaysia’s shares

due to factors beyond their control.When Mobitel began

operationsmultiple licenses for cellular networks were

awarded in 1992.in 1995, Celltelbegan operations and

Spacefon in 1996. Ghana Telecom launched its own GSM

network (OneTouch) in 2000.Phone subscribers faced numerous

problems due to congestion and it was impossible to call

from one network tothe other and, a few of those who can

afford it, acquire two or three mobile phones, one for each

cellular network. In spite of liberalization, (overseas)

telecom investors facepolitical, economic and cultural

barriers in Ghana. This limits their interest and abilityto

make mobile telephony accessible for Ghanaians. However, it

is clear that a mobile phone revolution took place.

.

2.7 History of Vodafone

The organization was established after World War II as a

wing of the then Post and Telecommunications Corporation. It

was split into two autonomous divisions by the government of

27

Ghana in order for the company to function as a commercially

viable entity, Ghana Postal Services and Ghana Telecom.After

two years, GT was privatized to G-Com Ltd and subsequently

contracted to Telenor Management Partners (TMP) of Norway to

manage. A Ghanaian management team then started managing the

affairs prior to Vodafone’s acquisition.Vodafone Ghana,

formerly Ghana Telecom, is the national telecommunications

company of Ghana. In 2006, it had around 400,000 customers

for fixed and mobile telephony and Internet services.On 3

July 2008, the sale of the company for $900 million to

Vodafone group was announced. After the transaction closed,

Vodafone had a 70% stake in the company, while the Ghanaian

government retained a 30% stake.On 16 April 2009, the

company was rebranded as Vodafone Ghana.

One of the latest additions to Vodafone Group Plc is

Vodafone in Ghana, the world's leading mobile

telecommunications company. On July 23,2008, Vodafone

successful acquired 70% shares in Ghana Telecommunications

28

Company (GT) for $900 million dollars by Vodafone

International Plc. Vodafone Group Plc is making improvement

in-roads in Africa and presentlyworks in Kenya, South

Africa, Tanzania and Mozambique. It has significant

existence in the Middle East,Europe, Asia Pacific and the

United States through the company's subsidiary undertakings,

joint ventures, associated undertakings and investments.

Vodafone Group has over 315 million consumers, excluding

paging customers, considered on a balanced basis in

accordance with its percentage interest in these ventures.

Vodafone operates in 31 countries, the company is graded

among the top 10 global companies by market capitalization.

Vodafone’s Profile

Vodafone has anexclusive portfolio of products and services.

Vodafone provide its customers with high speed access to the

internet, mobile services and fixed lines. Vodafone applies

the latest industry technology and is keen on building the

most versatile network.

29

Vodafone is the market leader in providing broadband

services which are among the most competitive in the market

in Ghana. The company has a deep sense of social

accountability. “We do this through responsible employee

volunteerism, providing access to communication in deprived

communities and investing hundreds of thousands of cedis

through the Vodafone Ghana Foundation in social

causes”(VodafoneGhana.com).

2.8 Vodafone Ghana Foundation and CSR

“Corporate responsibility is simply approaching our business

aims RESPONSIBLY with an awareness of our surrounding

environmental needs in order to fulfill stakeholder demands,

achieve PROFIT and still remain competitive. Corporate

responsibility in short, is taking a fresh approach to our

objectives in Vodafone Ghana in order to reduce the

environmental impact on business and to meet the needs of

our stakeholders, whilst maintaining a successful financial

bottom line. In Vodafone, we believe that by practicing

30

greater responsibility we would have a positive impact on

the wider society” (www.vodafoneghana.com).

CSR is impending business goals and objectives

conscientiously with aresponsiveness of the environmental

needs in order to fulfill stakeholders demands, achieve

profit and remain competitive. Vodafone believes that by

involving greater responsibility, it would have a positive

impact on the wider society and also gain advantages over

its competitors. The most well-known societal impact is the

Vodafone Ghana Foundation.

In December 2009 Vodafone Ghana Foundation was established

and is a registered charity funded by Vodafone Ghana and the

Vodafone Group Foundation.The Foundation provides anofficial

process for generous contributions to communities, community

groups and Non-GovernmentalOrganizations (NGOs) in Ghana who

are key partners in answering to social and economic

development matters in the country. Vodafone Ghana

Foundation was built on the philosophy that corporate bodies

have a responsibility to give back to society. The

31

foundation funds initiatives projects that provide

supportable solutions to the most pressing social

challenges. Its focus areas are Vodafone health line which

is shown on TV, World Difference, Red Alert, Road Safety,

Employee Volunteerism and economic empowerment. Vodafone

foundation also answers to disasters and charitabletraumas.

The aim of Vodafone is to contribute to the development

agenda of Ghana through the work of the foundation. Vodafone

Ghana was built on the viewpoint that corporate bodies have

a responsibility to give back to the society. Gradually, the

success of its business is based on the quality of its

linkage to communication through its schemes and

initiatives. Vodafone Ghana foundation are in partnerships

with communities in various ways and they are:

Financial and human resources to support community

initiatives.

Bringing economic, social and environmental benefits to

local communities.

32

Partnership with non-governmental organizations, community

based groups, civil society and other corporate bodies who

share the foundations vision, mission and values.

Supporting the relegated, susceptible and less advantaged in

society.

Developing close association with a number of partners to

enable the foundation to provide specialized support and to

extend its reach to host communities and the society at

large.

Globally, Vodafone Group aims to:

Reduce by 2020, carbon dioxide emissions by 50%

Maintain an approval rating against external stakeholder

opinion on how responsibly Vodafone is acting regarding

mobile phone mast and health as a rolling average at, or

above, 80% over any three-year period

Audit subcontractors’ compliance with our group policy on

responsible network deployment in all Vodafone operations by

March 2010.

33

Reduce work-related accidents resulting in lost time by a

further 10% (from the 2007/08 baseline) by March 2011.

Improve Global Wellbeing People Survey score by 10% (from

2007/8 baseline) by March 2011.

Every market to offer an option facilitating their hearing

impaired, visually impaired and elderly customers to access

telecommunications services by March 2011.

To be recognized as a “green” brand in at least 75% of the

developed markets where they operate, by 2012.

To be recognised as a communications company making one of

the most significant contributions to achievement against

the Millennium Development Goals by 2015.

To have developed joint carbon dioxide reduction strategies

with suppliers accounting for 50% of procurement spend by

March 2012

To have contributed to capacity building for addressing

electronic waste in three emerging markets by March 2012.

Suppliers accounting for 50% of procurement spend to have

adopted the GeSI / EICC* common industry approach by March

2012

34

To increase by five times the number of mobile-to-mobile

connections which have a positive impact on carbon dioxide

reduction, by March 2013

2.9 WHAT VODAFONE INTEND TO DO IN GHANA

Environment

Vodafone aims to will reduce carbon emissions and ensure

compliance with all environmental requirements. This will be

done by collaborating with all units to: cut down on

energy use in offices; turning air conditioners off when out

of office; ride staff bus instead of driving to work; use

conference calling instead of travelling physically to

attend meetings.

Stakeholder Engagement

Vodafone will engage their stakeholders who are mostly

affected by and in turn affect their operations. This they

will do by holding face to face discussion sessions;

interviews and stakeholder forums twice every year. They

35

will also give feedback to their stakeholders on issues

raised.

Ethics

Vodafone will uphold the highest ethical standards in all of

their business practices: responsible network deployment;

responsible marketing; legal compliance staff and

stakeholder engagement [all senior staff to have done

mandatory anti-corruption training by end march 2010].

Access to communications

The organization will strive to make it possible for all

people in the countries in which Vodafone operate to have

access to communications through the V School booth project,

as well as lower tariffs for the disabled and elderly.

Vodafone addresses these issues because it is the right

thing to do,It’s good for business, Stakeholder expectation,

Regulation/legislation.

36

Vodafone in their report aim to get there by, involving all,

Establishing management framework, Effective internal and

external communication (www.vodafoneghana.com).

Vodafone Green Project

“Vodafone Ghana and the Environmental Protection Agency

(EPA) launched the Green Project on 23 July 2010 to help

integrate climate change issues into telecommunications in

Ghana”(Vodafone Ghana.com)

Also a two-year GH¢150,000 project is being financed by

Vodafone Ghana as part of a wider strategy to establish an

early warning system for disaster prevention and recovery in

Ghana.

The project, according to Vodafone Ghana will be harmonized

by a steering committee and a team of four technical experts

from the EPA and Vodafone Ghana, will develop systems to

allow identification and rollout of Next-Generation Networks

(NGN) that will help reduce energy consumption by 40 per

cent and lead to overall efficiency. Ms. Sherry Ayittey, the

Minister of Environment, Science and Technology (MEST),

37

commended the organization’s for the initiative and called

for closer collaboration of all telecommunications industry

players with the MEST.She said the collaboration should be

in their dealings with respect to the mounting of

communication masts, to help reduce their possible impact on

communities during disasters.Ms. Ayittey said

telecommunication was considered among the sources of

greenhouse gases, contributing 25 per cent globally through

upstream and downstream energy-use and produced emissions

that add to climate change. “As heroes they can be part of

the solution by providing a channel for mass education and

help decarbonize other sectors of the economy by involving

other industry players in their activities to help suppress

the dreadful effect of climate change," she added.

Mr. Edwin Provencal, Vodafone representative, said

management considered the initiative as part of its

corporate social responsibility in approaching its business.

He said the company had already initiated some green

projects including the efficient use of energy in its

operations, control of emissions and radiation within the38

guidelines of the EPA, as well as seeking to extend the

network to some remote parts of the country using low energy

equipment which was primarily solar powered.

Mr. Provencal said other technologies such as forced air

cooling, which reduces the need for air-conditioning, deep

cycle batteries which could eliminate or reduce the use of

generators and introduction of low energy lightening, all

geared towards reduction of the impact of its networks on

climate change.

He said the project would also generate, review and collate

existing data on climate change and the telecommunication

industry.(Vodafone Ghana 2013)

Vodafone Donates Computers

Vodafone Ghana also donated 20 computers and their

accessories to three institutions to boost information and

communication technology (ICT). The donations are aimed at

supporting the government’s efforts in making ICT accessible

to all junior and senior high schools across the country.

These donations again forms part of Vodafone’s corporate

39

responsibility (CR) initiatives aimed at enhancing the

teaching and learning of ICT in our schools, whilst

supporting institutions which are deprived in their

communication efforts, and contributing to the Millennium

Development Goals (MDGs).

Numerous institutions have benefited from this ingenuity.

These include:

1. The Akropong School for the Blind in the Eastern Region,

2. Ejusi-Juabeng Municipal Hospital in the Ashanti Region,

3. Kpeve SHS in the Volta Region

4. Ghana Secondary/ Technical School in the Western Region.

5. Ramsyer Training Centre

6. St’ Hubert Seminary and Secondary school

7. Kaneshie Senior High & Technical school

40

8. Akatsi Education Directorate.

9. Nima police directorate

10. Adenta Fire Office

11. Ghana Fire Service- Industrial Area Branch

12. Akro Senior High

13. Makrosec senior High

14. Mount Mary’s Teacher Training College

15. Savlegu Senior High

16. Kpadai Senior High School (SHS) in the Northern Region,

17. Ko Senior High

18. Piina senior high in the Upper West Region

19. Kongo senior high

20. Chiana senior high in the Upper East Region

21. Takpo RC Junior High

22. Takpo MC Junior high

41

23. Agape Star Centre – East Legon

24. Faculty of Agric- KNUST

25. Environmental Protection Agency ( EPA)

Vodafone has taken awareness of the unacceptable conditions

under which most schools operate in Ghana. The company, in a

bid to bridge the ICT void, had already made similar

donations of computers to several institutions and

particularly schools across the country.

“It is our hope that we can serve all deprived schools and

institutions in the country. We trust this token will go a

long way to help the teaching and learning of ICT in Ghana's

schools”(Vodafone Ghana)

The company has confidence that the geographical location of

a child should not limit them in education. Vodafone is

willing to support schools that do not have teachers for ICT

and have donated a total of over 200 sets of renovated

computers.

42

2.10 Vodafone Phone Booth Initiative

Vodafone Ghana’s phone booths, positioned in over 400 senior

high schools (SHS), hold the key to solving the Ghana

Education Service’s (GES) ban on the use of mobile phones on

SHS campuses.

The Vodafone Booth is a fixed public GSM terminal with all

the roles of a standard mobile phone and can be used to make

calls. It allows a subscriber to receive a lasting personal

number on the Vodafone network, while allowing him or her to

view, search and add entries to his or her sim phone book

amongst other functions.

• The phone has full voice functionality, pre-paid mode of

operation with exclusive Vodafone sim card

• The Vodafone Booth is built to withstand Ghana's often

harsh environment, and can be mounted indoors or outdoors

for the convenience of users.

2.11 Benefits to Customer

43

The equipment or machine can be used by Vodafone customers

to subscribe to all the value-added services on the Vodafone

network such as the Call Me Back Service, IDD, Family and

Friends, SMS, Vodafone Help Line and SOS/Emergency Calls.

Vodafone customers can also use the same sim card to check

credit received and account balance.Subscribers of Vodafone

Booth may not own personal mobile handsets but they can

benefit from all the promotions that Vodafone runs on its

network for its prepaid mobile customers(www.vodafone

Ghana.com).

2.12 Competitive Advantage

To start, it will be helpful to take a more in-depth look at

what it means to have competitive advantage: an edge over

the competition. For some companies, particularly those in

markets where the products or services are less

differentiated, answering this question can be difficult. A

key point to understand is that a company that has customers

has customers for a reason. Successfully growing a business

44

is often hooked upon a strong competitive edge that

gradually builds a core of loyal customers, which can be

prolonged over time. Successful companies perform a

combination of business activities well, including

marketing, production, distribution, finance, customer

service, and/or other activities important to the

enterprise. However, a competitive advantage is often a

single key element that gives an edge to a business beyond

what the competition has or does.

“A competitive advantage is an advantage gained over

competitors by offering customers greater value, either

through lower prices or by providing additional benefits and

service that justify similar, or possibly higher, prices”.

(Barone, M.J. and T.E. DeCarlo, 2003). When organizations

do well in creating more value for customers than its

competitors, that company is said to enjoy competitive

advantage in an industry. Competitive advantage is measured

comparative to opponents in a given industry. There are two

ways to achieve competitive advantage. First and foremost, a

firm can pursue a low cost strategy that enables it to offer45

products and services at lower prices than the others in the

same industry. It may also be gained by differentiating ones

products and services so that customers perceive exceptional

benefits, often go with premium price. Both strategies

mentioned have the same effect and they both contribute to

the company’s value scheme. Two critical models of

competitive advantage have received considerable attention

by many scholars. They are” generic strategies and strategic

intent”. Under generic strategies, we have cost leadership,

product differentiation, cost focus, and focused

differentiation.

Cost leadership is competitive advantage based on a

company’s position as the industry’s low cost producer, in

generally defined markets or across a wide mix of products.

This means within the industry, the organization has a

strong cost ability such that it is able to produce at a

much lower price compared to others in the same industry.

Producing as a cost leader does not mean quality is

compromised or the person is producing an inferior good.

Achieving overall cost of leadership simply means:46

Producing in large quantities

Achieving economies of scale

Input coming from a cheaper source

Using modern technology in your production

Investing in research and development to be able to come out

with innovative ways.

Taking advantage of good relationship building with your

stakeholders especially the suppliers.

When a firms product has a definite or supposed

exceptionality in a broad market, it is said to have

achieved competitive advantage by differentiation. It occurs

when an organization offers a distinct and unique product

compared to other substitute the market. However this

distinctiveness or uniqueness must be measured or perceived

by a consumer such that the consumer will be willing to pay

premium price for the product .This can be done in the

following ways below:

Improvement of product features such as the packaging.

Building superior brands or distinctive brand name.

47

Differentiation can also be achieved through superior

customer service

Can also be achieved through a unique product design.

Strategic intent is another framework for understanding

competitive advantage efforts on competitiveness as a role

of the pace at which a company inserts new benefits deep

within its organization. The essence of strategy lies in

creating tomorrow’s competitive advantages faster than

competitors mimic the ones you possess today. Officialdoms

capacity to improve existing skills and learn new ones is

the most secure competitive advantages of all.

CHAPTER THREE

METHODOLOGY

3.1 Introduction

The methodology provides the techniques and methods for the

research. It’s a system of methods used in a particular area

48

of study to show where information was derived to complete

the project work. It explains how a researcher collected

data and combined those data to gain unique information.

Methodology is therefore very important if the validity and

the reliability of the study will be considered.

3.2 Data Collection.

There are two main sources of data collection techniques and

they are Primary and Secondary data collection techniques.

Primary data collection uses surveys, experiments or direct

observations.Secondary data collection may be led by

collecting information from a varied sourceof documents or

electronically stored information, census and market studies

are examples ofa common sources of secondary data."Primary

data means original data that has been collected specially

for the purpose in mind. It means someone collected the data

from the original source first hand.This is called primary

data. Primary data has not been printed and is more

consistent, reliable and impartial. Primary data has not

been altered by human beings; therefore its validity is

49

greater than secondary data. The people who gather primary

data may be an official organization, investigator, and

enumerator. These people are acting as a witness so primary

data is only considered as reliable as the people who

gathered it. A research can be conducted without secondary

data but a research based on only secondary data is least

reliable and may have biases because secondary data has

already been manipulated by human beings. In arithmetical

surveys it is necessary to get information from primary

sources and work on primary data. One such source is old and

secondly theycontain limited information as well as they can

be deceptive and prejudiced.

3.3 Sample Size

Sampling is done to select participants for a research

project. The sample size represents a unit or a part

selected which will be used for the research. If I want to

get information from a large group of people the only way

this can be done easily is by selecting a small group of

people from the larger group which represents them well to

50

prevent errors from occurring. For the purpose of this work,

students and people who use Vodafone are used to represent

all Vodafone customers. In all twenty women between the ages

of 30-50, ten men and one hundred and seventy students of

Central University College will be selected as respondents.

3.4 Sampling Technique

Basically there are two sampling techniques and they are

probability and non-probability sampling. Probability

sampling technique give the most reliable representation of

the whole population and on the other hand, on-probability

sampling technique rely on the judgment of the researcher

and cannot be used to make simplification about the entire

population. Probability method uses random methods to select

the sample. The procedure should aim to guarantee that each

element has an equal chance of been selected. Probability

sampling can be categorized into many ways and some few are,

simple random sampling, systematic sampling, stratified

sampling and cluster sampling. Simple random sampling

assures each element of being selected whiles stratified

51

sampling represent various strata equally. Clustersampling

takes a random sample of strata and surveyseach member of

the group. Under non-probability sampling, convenience

sampling, judgment sampling and quota sampling are used.

Convenience samplings obtain people most conveniently

available such as volunteers and members of a class.

Judgment sampling occurs when selection is done based on the

characteristics of the sample members. Quota sampling on the

other hand ensures that particular characteristics of a

population will be represented to the exact extent that the

investigator desires. Due to the above information, non-

sampling technique is preferable due to financial

constraints and limited time and information.

3.5 Questionnaire Design

In order for the research to produce acorrect outcome, the

ordering of data has to be distributed over a large

population. Thus, the survey questionnaires are designed to

apply to a various population, where targeted respondents

come from the general open public from difference genders,

52

races, age groups, marital status, education backgrounds,

designations and professionalisms. Owing to the fact that

different levels of the society have different expectations

and needs, therefore, the idea of choosing respondents from

different backgrounds will most certainly generate a more

reliable outcome. While some responded promptly to the

survey, others took a little bit time to digest the

questions and enquiries. Nonetheless, overall, most of them

are very helpful and kind to fill my questionnaire patiently

and some even provided their own personal opinions. The

survey questionnaires were conducted through face to face

interviews and through other avenues such as email, so as to

ensure that the survey covers a broader geographical area.

Questionnaires were also distributed and the questions asked

were based on corporate social responsibility, brand image,

competitive advantage and customer loyalty.

The questionnaire is considered into three parts. The first

part of the questionnaire is taking consideration in the

demographic factor of the respondents that is the age and

gender of the respondent. The questions are designed with53

multiple choice selections for convenience. The second part

of the questionnaire is required the respondent to rate the

satisfaction level of Vodafone and this is attached into a

five pre-defined level scale - “Strongly Disagree”,

“Disagree”, “Neutral”, “Agree” and “Strongly Agree”. The

final part of the questionnaire also applies the same

concept used in the second part of the questionnaire. The

aim is to collect the opinions of the respondents in respond

to the importance ofcorporate social responsibility. The

answer of the questionnaire is solely based on the

respondents` experience and personal opinion, there are no

exact answers. It is domineering that all information

collated is strictly for the Term Paper research purpose

only. The aim of the critical incident technique is to

collect very detailed descriptions or stories from

respondents about a memorable experience.

3.6 Data Analysis

Data are also alienated into two other categories based on

their characteristics. This affected the way they are

54

recorded, analyzed and collected. There are two main ways a

data can be analyzed and they are qualitative and

quantitative. Quantitative data can be measured because they

are usually expressed in numbers. They can be simple and at

times sophisticated. Qualitative data cannot be accurately

measured and counted and are mostly expressed in words than

numbers for example attributes such as ideas, customs and

beliefs cannot be measured in a particular way. They are

therefore descriptive in nature; qualitative research

depends on careful definition of the meaning of words and

the development of concept and variables. Concept such as

happiness and loyalty. Typical examples of qualitative

research are, interview transcript, and literary texts,

minutes of meetings, historical records, memos and

recollections, documentary of films and observation notes.

For this reason, statistical package for the social sciences

will be used and Microsoft excel will also be used to

tabulate information gained to help gain accurate results.

CHAPTER FOUR

DATA ANALYSES

55

This chapter presented the findings achieved on the

study. The chapter outlined analyses of respondents’

personal data characteristics, test of hypotheses and

illustration of objective analyses.

4.1 Respondents Data characteristics

Table 4.1.1 below showed the sample characteristics

regards to gender. The study involved 180 males and 220

females out of 400 respondents. Independently; the males

and females represented 45% and 55% respectively. The

distribution showed that more females responded to the

study than males.

Table 4.1.1-Gender distribution

Gender Frequency PercentValid

male 180 45.0female 220 55.0Total 400 100.0

Source: Field Data

56

57

Table 4.1.2 Distribution of Respondentsby Age(years)

Frequency

Percent

ValidPercent

CumulativePercent

Valid

Below20 67 17

.0 17.0 17.0

20-29 193 48.0 48.0 65.0

30-39 100 25.0 25.0 90.0

40-49 33 8.30 8.3 98.3

50andabove

7 1.7 1.7 100.0

Total400

100.0

100.0

Source: Field Data

The survey considered age categories (20yrs and below), (20-

29), (30-39), (40-49) and (50 and above). As shown in table

4.1.2, respondents who fell within 20-29 years recorded the

highest frequency of 193, this constituted 48% of 400

participants. The few 7(1.7%) who responded to Vodafone CSR

activities were aged 50 and above.

4.2 VODAFONE Corporate Social Responsibility (CSR)activities

58

59

Table 4.2.1 Respondents Knowledge on CSR

Frequency

Percent

ValidPercent

CumulativePercent

Valid

StronglyDisagree

215.0

5.0 5.0

Disagree 60

15.0

15.0 20.0

Neutral 60

15.0

15.0 35.0

Agree237

60.0

60.0 95.0

StronglyAgree

225.0

5.0 100.0

Total

400

100.0

100.0

Table 4.2.1 above depicted the majority, 237(60%) of

respondents agreed that they knew at least one Vodafone CSR

activity; on the contrary, 22(5%) strongly disagreed and

60(15%) disagreed. Generally, per results herein, people

know of Vodafone social responsibility activities.

60

Table 4.2.2. Consistency of VODAFONE CSRactivities

Frequency

Percent

ValidPercent

CumulativePercent

Valid

Stronglydisagree

205.0

5.0 5.0

Disagree 80

20.0

20.0 25.0

Neutral 10

0

25.0

25.0 50.0

Agree180

45.0

45.0 95.0

StronglyAgree

205.0

5.0 100.0

Total

400

100.0

100.0

Source: Field Data

61

In Table 4.2.2, it was seen that, most; 180(45%) respondents

attested by agreement that VODAFONE is consistent on its CSR

activities.

4.3 CSR activities have positive relationship on BrandImage

One of the hypotheses stated was that Vodafone Social

Responsibility activities have had a good impact on its

brand image.

62

Table 4.3.1: Correlation test result of CSRactivities and Brand Image

Variable N Mean(M)

Std.Deviation(SD)

Correlation(r)

p-value

CSRactivities

Brand Image

400

400

43.14

51.67

5.03

10.310.69

0.001

The results in table 4.3.1 above, showed a significantly

(a=0.05, p=0.001) and positive correlation (r=0.69) between

CSR activities (M=43.14, SD=5.03) and Brand Image (M=51.67,

SD=10.31).The data gathered provided enough evidence to

support the hypotheses which stated that; Vodafone CSR

activities have had positive relationship on its Brand Image. There had been

a responsive increase on VODAFONE’s reputation and market

63

share per VODAFONE putting more attention on its corporate

social responsibility activities, See table 4.3.2,

64

Table 4.3.2. VODAFONE Reputation

Frequency

Percent

ValidPercent

CumulativePercent

Valid

Stronglydisagree

205.0

5.0 5.0

Disagree 15

20.0

20.0 25.0

Neutral 24

25.0

25.0 50.0

Agree

98

45.0

45.0 95.0

StronglyAgree

243

60.8

60.8 100.0

Total

400

100.0

100.0

SOURCE: Field Data

65

Majority 243(60.80%) of respondents strongly agreed that

Vodafone has attained a higher reputation.

4.4 CSR activities have positive relationship on Competitive

advantage

The study analyzed the kind of relationship that existed

between Vodafone CRS activities and Competitive

advantage. Table 4.4.1 showed the results.

Table 4.4.1: Correlation test result of CSRactivities and Competitive advantage

Variable N Mean(M)

Std.Deviation(SD)

Correlation(r)

p-value

CSRactivities

Competitiveadvantage

400

400

41.13

64.17

5.03

8.310.76

0.001

SOURCE: Field Data

66

The table above showed a mean 41.13 and standard deviation

5.03 on CSR activities scores. The mean and standard

deviation for competitive advantage were 64.17 and 8.31

respectively. There was a significant p=0.001 difference

between CSR activities and Competitive advantage. The result

also showed a positive impact r=0.76 of CSR activities on

Competitive advantage. The field data supported the

hypotheses which stated that; Vodafone CSR activities have had

positive relationship on its Competitive advantage. VODAFONE’S CSR

activities have served it advantage over its competitors,

See table 4.4.2 below.

67

In

table 4.4.2: Majority, 200(60%) of the respondents preferred

Vodafone to other networks. The result illustrated before

68

Table 4.4.2 Respondents Preference to Vodafone

Frequency

Percent

ValidPercent

CumulativePercent

Valid

StronglyDisagree

195.0

5.0 5.0

Disagree 62

15.0

15.0 20.0

Neutral 60

15.0

15.0 35.0

Agree200

60.0

60.0 95.0

StronglyAgree

575.0

5.0 100.0

Total

400

100.0

100.0

this did not agree with the choice to network by users, see

table 4.4.3 below.

SOURCE :

Fielddata

69

Table 4.4.3 Type of Network used byRespondents

Frequency

Percent

ValidPercent

CumulativePercent

Valid

VODAFONE 94

23.5

23.5 5.0

MTN114

28.5

28.5 20.0

TIGO

97

24.3

24.3 35.0

EXPRESSO

45

11.3

11.3 95.0

AIRTEL

45

12.5

12.5 100.0

GLOTotal

5400

1.3100.0

100.0

MTN 114(28.5%) has the most users followed by TIGO 97(24.3%)

then Vodafone 94 (23.5%). A comparative result of tables

4.4.2 and 4.4.3 showed that users preferred VODAFONE though

they used other networks. Users may switch from their

networks to Vodafone with the slightest opportunity. In some

cases, Respondents used Vodafone alongside other networks.

4.5 Vodafone CSR activities and Customer Loyalty

The third hypotheses stated that; there is a positive relationship

between Vodafone CSR activities and Customer Loyalty.

70

Table 4.5.1: Correlation test result of CSRactivities and Customer Loyalty

Variable N Mean(M)

Std.Deviation(SD)

Correlation(r)

p-value

CSRactivities

CustomerLoyalty

400

400

41.13

54.18

5.03

4.110.66

0.002

SOURC: Field data

The mean and standard deviation for customer loyalty were

54.18 and 4.11 respectively. There was a significant p=0.002

difference between CSR activities and customer Loyalty. The

result showed a positive impact r=0.66 of CSR activities on

Customer Loyalty. The field data supported the hypotheses

which stated that; Vodafone CSR activities have had positive relationship

on its Customer Loyalty. Tables 4.5.2 and 4.5.3 below clarified

the hypotheses test results. According to the respondents,

in as much as Vodafone practices unique CSR activities, they

71

will intend continue using their services, and also

recommend to other people.

72

Table 4.5.2 Continue usage of VodafoneNetwork by Respondents

Frequency

Percent

ValidPercent

CumulativePercent

Valid

StronglyDisagree

215.3

5.3 5.0

Disagree 22

5.5

5.5 20.0

Neutral 5

1.3

1.3 35.0

Agree201

60.0

60.0 95.0

StronglyAgree

151

50.3

50.3 100.0

Total

400

100.0

100.0

Source: Field Data

73

Table 4.5.3 Recommendation of Vodafone toother Users

Frequency

Percent

ValidPercent

CumulativePercent

Valid

StronglyDisagree

216.3

5.3 5.0

Disagree 12

3.5

5.5 20.0

Neutral 55

12.3

1.3 35.0

Agree211

60.0

60.0 95.0

StronglyAgree

111

50.3

50.3 100.0

Total

400

100.0

100.0

Source: Field Data

CHAPTER FIVE

DISCUSSION, SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.0 Chapter framework

This chapter discussed the literatures reviewed with the

findings achieved on the field data. A summary of the

findings herein has been illustrated. This chapter ended

with conclusion on the major lessons to be learnt from

Corporate Social Responsibility (CSR) activities, hence

a recommendation to companies and institutions aiming to

achieving a good branding image.

5.1 Discussion

5.1.1 Respondents characteristics to CSR activities

The study used approximately equal samples of males and

females, this was the only variable that was controlled,

and the importance of this decision effected when other

parameters viewed took their natural appearances. Not

74

withstanding that, females showed a good attitude

towards the research activity per the findings. The

issue of males’ reluctance can not be overemphasized as

more women and children benefit from Majority of

Corporate Social Responsibility activities.

Aside the fact that most people, aged between 20 and 29

years (see table 4.1.2) show more participation in

research activities, it could also be said that this

people, directly or indirectly benefit from CSR

activities. Accordance with Swanson (1995), People who

benefit from CSR activities show more interest in

anything on the subject matter.

5.1.2 VODAFONE Corporate Social Responsibility(CSR) activities

Holme and Watts (2000) defined Corporate Social

Responsibility (CSR) as the continuous 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

75

and the society at large. Though, the field data did not

sort the detailed understanding of respondents on CSR, by

reflection; respondents attested to knowing the dynamics of

CSR, specifically, that of Vodafone. Partially it could be

interpreted that this people who know and can mention any

one of VODAFONE’S CSR have benefited. The analyses showed

more than half of the 400 respondents aware of Vodafone CRS

activities. Like Holme and Watts (2000), the aspect of

improving the quality of life of families as well as the

local community and the society at large is well achieving

by Vodafone. Adding to this, Bill Valentino (chairman of the

European chambers) said success in business is based on the

relationships companies have with people. It is the role of

marketers to build these relationships with all their

stakeholders if they want to achieve great success in

today’s hypercompetitive marketplace.

According to ROAKN (2012), Recognition is achieved by

constant exhibition of anything that creates a difference.

It was not far to mention when the field data (see Table

4.2.2) revealed the majority 180(45%) of respondents76

attesting that VODAFONE is consistent on its CSR activities.

It was then not a surprise when Vodafone has almost become

the people’s choice.

On the contrary a number of scholars have opposed that the

idea of social obligation is too broad to facilitate the

effective management of CSR. (Jones 1995; Wood and Jones

1995) argue that businesses are not responsible toward

society as a whole but only toward those who directly or

indirectly affect or are affected by the firm's activities.

5.1.3 Brand Image

One of the hypotheses stated was that Vodafone Social

Responsibility activities have had a good impact on its

brand image. The data gathered provided enough evidence to

support this hypothesis. Majority 243(60.80%) of respondents

strongly agreed that Vodafone has attained a higher

reputation.

According to Radley Yeldar (2004), Companies with good

reputation easily get customers. A company well thought-out

77

as socially responsible can profit both from its enhanced

reputation with the public as well as its status within the

business community, increasing a company’s ability to

attract customers and investors. The field study did not

access the profit outcome of Vodafone, regarding issued

questionnaires, better still; respondents highly agreed that

Vodafone has achieved additional reputation from CSR

activities. Vodafone gesture has created high customer

retention and recommendations.

5.1.4 Competitive advantage

Corporate social marketing is a strategy that uses marketing

principles and techniques to foster behavior change in a

target population, improving society while at the same time

building markets for products and services (Philip Kotler

and Nancy Lee2004).Confirming with Philip et-al, There was

a significant p=0.001 difference between CSR activities and

Competitive advantage. The field data showed a positive

impact r=0.76 of CSR activities on Competitive advantage. The

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field data supported the hypotheses which stated that;

Vodafone CSR activities have had positive relationship on its Competitive

advantage. VODAFONE’S CSR activities have served it advantage

over its competitors.

Organizations who comprehends the unique value of bringing

together corporate social responsibility into the marketing

scope need to know the value they offer to customers and the

values they make known in the creation of their product and

marketing (Freeman Osei Tete,2012).

In table 4.4.2: Majority, 200(60%) of the respondents

preferred Vodafone to other networks. This attests that

Vodafone appreciates the value it gives its customers,

responsive of CSR activities.

The value the organization creates is meant to open a

competitive advantage which will help them differentiate

their brand and create a good and unique relationship with

their customers. This makes marketing and corporate social

relationship a little bit related because most organization

are now customer centered and it means that they are willing

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to satisfy the various needs of various customers or

stakeholders.

5.1.5 Customer Loyalty

The third hypotheses stated that; there is a positive relationship

between Vodafone CSR activities and Customer Loyalty.

According to Charlse (2012), Customers loyalty is all about

attracting the right customer, getting them to buy, buy

often, buy in higher quantities and bring you even more

customers.

There are many definitions of customer loyalty, yet each of

them fails to realize that loyalty runs hand-in-hand with

emotions. Customer loyalty is the result of consistently

positive emotional experience, physical attribute-based

satisfaction and perceived value of an experience, which

includes the product or services.

Consider who you yourself are loyal to. Surely you’ll answer

family and friends. Why? Because of the emotional bond you

have with them. Your family and friends can do things you

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may not like, but you stay loyal because of that bond. The

same applies with customer loyalty. To prompt customer

loyalty you must build an emotional bond with your

customers, not less mentioning CSR activities.

To build customer loyalty, customer experience management

blends the physical, emotional and value elements of an

experience into one cohesive experience.

Retaining customers is less expensive than acquiring new

ones, and customer experience management is the most cost-

effective way to drive customer satisfaction, customer

retention and customer loyalty. Given the highly

commoditized competitive landscape today, customer

experience programs; CSR is one of the most effective ways

to differentiate your organization from the competition.

Such differentiation effectively drives customer loyalty

when customers are engaged on an emotional and intellectual.

Like from field data, the result showed a positive impact

r=0.66 of CSR activities on Customer Loyalty. The field data

supported the hypotheses which stated that; Vodafone CSR

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activities have had positive relationship on its Customer Loyalty. According to

the respondents, in as much as Vodafone practices unique CSR

activities, they will intend continue using their services,

and also recommend Vodafone to other people.

5.2 Summary of findings

In Table 4.2.2, it was seen that, most; 180(45%) respondents

attested by agreement that VODAFONE is consistent on its CSR

activities.

The results in table 4.3.1, showed a significantly p=0.001

and positive correlation (r=0.69) between CSR activities

(M=43.14, SD=5.03) and Brand Image (M=51.67, SD=10.31).

Majority 243(60.80%) of respondents strongly agreed that

Vodafone has attained a higher reputation.

There was a significant p=0.001 difference between CSR

activities and Competitive advantage. The result also showed

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a positive impact r=0.76 of CSR activities on Competitive

advantage.

In table 4.4.2: Majority, 200(60%) of the respondents

preferred Vodafone to other networks.

A comparative result of tables 4.4.2 and 4.4.3 showed that

users preferred VODAFONE though they used other networks.

The mean and standard deviation for customer loyalty were

54.18 and 4.11 respectively. There was a significant p=0.002

difference between CSR activities and customer Loyalty. The

result showed a positive impact r=0.66 of CSR activities on

Customer Loyalty. The field data supported the hypotheses

which stated that; Vodafone CSR activities have had positive relationship

on its Customer Loyalty.

5.3 Conclusion

Vodafone CSR activities have had positive relationship on its Brand Image.

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There had been a responsive increase on VODAFONE’s

reputation and market share per putting more attention on

its corporate social responsibility activities.

Vodafone CSR activities have had positive relationship on its Competitive

advantage. VODAFONE’S CSR activities have served it advantage

over its competitors,

Users may switch from their networks to Vodafone with the

slightest opportunity.

In as much as Vodafone practices unique CSR activities,

their customers will continue using their services, and also

recommend to other people.

5.4 Recommendations

Organizations should practice CSR activities as this will

help them get more information about their target markets, a

means of aiding decisions and development.

The company will also gain the required reputation needed to

enhance their image which will in turn lead to growth in

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sales and the organization as a whole. In this regard,

Companies should practice consistent CSR activities.

CSR activities enriches competitive advantage of companies,

this gives more power to companies and a wider market share.

Companies, as a form of keeping their customers should

involve in Corporate Social Responsibility activities, this

brings customer retention, loyalty and also,

Promote brand image

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