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PROJECT TITLE:
Do businesses have responsibilities to the communities in which they operate?
A critical analysis of telecommunications companies in Zimbabwe.
I also declare that to the best of my knowledge this research project has not been
previously submitted for any other degree program at this or any other university.
Courage Shoniwa
January 2015
ACKNOWLEDGEMENTS
Completion of this Masters in Business Leadership program has been a life- long ambition
for me. It’s a personal achievement I guard jealously with my life. As such I would like to
thank everyone who helped me along the way.
First and foremost I would like to thank our Mighty God for giving me the strength and
wisdom to undertake this research project. I would also like to thank my wife, Martha
Memory Shoniwa and my two daughters, Shanice Anotipa Maggie Shoniwa and
Shawna Tawana Shoniwa for taking time out of their busy schedules to assist me with
the research project and also for giving me time to do my project without much
interference. I love you all and keep on supporting and believing in me.
In addition I would like to thank all the people that participated in the research project
including the questionnaire respondents and the people I interviewed. The research
project would not have been a success without your involvement.
Lastly I would like to thank all UNISA SBL staff and my two supervisors (Prof Zeleke
Worku and Mr. GW Dalton) for giving the advice and guidance throughout the research
process. I will be forever indebted to you.
Courage Shoniwa
January 2015
ABSTRACT
An early view of Corporate Social Responsibility was that companies should seriously
consider the impact of their actions on society. Adam Smith’s concept of the “invisible
hand” was the major starting point of Corporate Social Responsibility. Early authors such
as Abrams (1951) argued that companies should not think of profits alone but also their
employees, customers, and the society in general.
The discussion over whether companies have a duty to do good in the communities in
which they do business in is still raging on and will continue into the 21st century. This
research extends the knowledge base that currently exists in that field and tries to answer
to old age question of whether companies have responsibilities in the communities they
operate in. If they have responsibilities in the communities they operate in, this research
will help companies in narrowing the expectation gap between the activities they are
currently doing for the community and what the community expects them to be doing.
The findings from this study will form a bedrock for future research specific to telecoms
companies in Zimbabwe. Currently there is a literature gap specific to telecoms industry
in these countries.
Table of Contents
LIST OF TABLES ....................................................................................................................................... 1
LIST OF FIGURES..................................................................................................................................... 2
LIST OF ACRONYMS ............................................................................................................................... 3
CHAPTER ONE: INTRODUCTION ......................................................................................................... 4
1.1 BACK GROUND TO THE RESEARCH .................................................................................. 4
1.2 RESEARCH QUESTIONS ........................................................................................................ 6
1.3 SIGNIFICANCE OF THE STUDY ............................................................................................ 6
1.4 DELINEATION ............................................................................................................................ 6
1.5 LITERATURE ARTICLES ......................................................................................................... 7
1.6 RESEARCH METHOD .............................................................................................................. 9
1.7 CHAPTER DIVISION ............................................................................................................... 13
1.8 SUMMARY ................................................................................................................................ 13
CHAPTER TWO: LITERATURE REVIEW ........................................................................................... 14
2.1 DEFINING AND ANALYZING KEY CONCEPTS ................................................................ 14
2.2 BACKGROUND OF CSR ........................................................................................................ 17
2.3 COMMUNITY AND STAKEHOLDER EXPECTATIONS .................................................... 18
2.4 STRATEGIC NATURE OF CSR ACTIVITIES IN ORGANISATIONS .............................. 20
2.5 THE ADEQUACY OF CURRENT CSR ACTIVITIES ......................................................... 22
2.6 LEGISLATION SURROUNDING CORPORATE RESPONSIBILITIES ........................... 24
2.7 EXPECTATION GAP ............................................................................................................... 26
2.8 ARGUMENTS FOR AND AGAINST CSR ............................................................................ 27
2.9 DRIVERS OF CSR................................................................................................................... 29
2.10 CSR ACTIVITIES IN THE ZIMBABWEAN ECONOMY ..................................................... 30
2.11 CURRENT TRENDS IN CSR: ................................................................................................ 30
2.12 SUMMARY ................................................................................................................................ 33
CHAPTER THREE: METHODOLOGY ................................................................................................. 34
3.1 INTRODUCTION AND RESEARCH OBJECTIVES ........................................................... 34
3.2 OVERVIEW OF RESEARCH METHODS ............................................................................ 34
3.3 RESEARCH STRATEGY ........................................................................................................ 36
3.4 BUDGETARY CONSTRAINTS .............................................................................................. 37
3.5 ETHICAL CONSIDERATIONS............................................................................................... 38
3.6 RESEARCH INSTRUMENTS AND DATA COLLECTION................................................. 40
3.7 POPULATION AND SAMPLING PROCEDURES .............................................................. 43
3.8 VALIDITY AND RELIABILITY ................................................................................................ 47
3.9 DATA ANALYSIS ..................................................................................................................... 48
3.10 SCOPE AND LIMITATIONS OF THE STUDY..................................................................... 48
3.11 ASSUMPTIONS ....................................................................................................................... 50
3.12 CONCLUSION .......................................................................................................................... 50
CHAPTER FOUR: RESULTS ANALYSIS ............................................................................................ 51
4.1 INTRODUCTION ...................................................................................................................... 51
4.2 ANALYSING BACKGROUND DATA FROM QUESTIONNAIRES.................................. 51
4.3 ANALYSING SPECIFIC DATA FROM QUESTIONNAIRES ............................................ 54
4.4 CHI- SQUARE TEST TO INVESTIGATE ASSOCIATIONS ............................................. 61
4.5 QUESTIONNAIRE RESULTS AND ANALYSIS OF RESEARCH OBJECTIVES. ........ 68
4.6 ANALYSING SPECIFIC DATA FROM INTERVIEWS....................................................... 69
4.7 CONCLUSION ......................................................................................................................... 82
CHAPTER FIVE: RECOMMENDATIONS AND CONCLUSION....................................................... 83
5.1 INTRODUCTION ..................................................................................................................... 83
5.2 RECOMMENDATIONS .......................................................................................................... 83
5.3 CONCLUSION ......................................................................................................................... 85
LIST OF REFERENCES ......................................................................................................................... 86
LIST OF APPENDICES........................................................................................................................... 91
APPENDIX ONE – SAMPLE QUESTIONNAIRE ............................................................................ 91
APPENDIX TWO – SAMPLE INTERVIEW QUESTIONS ........................................................... 100
Do businesses have responsibilities to the communities in which they operate?
LIST OF TABLES
LIST OF FIGURES
LIST OF ACRONYMS
Most companies around the world are realizing that sustainability and social responsibility
are not just ethical necessities, but are an essential part of good and vibrant business
operations. The devotion given to the study of business responsibilities over the last
several years has served to strengthen the principle that businesses have an ethical
responsibility that necessitates them to use some of their resources to address needs in
the communities that they operate in.
However many opponents of this view insist that companies have no responsibilities to
the society beyond obeying the law as they go about their normal business operations.
The overriding responsibility is to shareholders, and the primary objective is to maximize
shareholder value. Perhaps the best-known proponent of this view is Milton Friedman
and the researcher will use some of his works to answer the research question.
The discussion over whether companies have an ethical duty to do good in the
communities in which they operate will continue to rage on into the 21st century. According
to Castka (2009) the area of CSR has grown immensely in the last decade and more
businesses than ever before are involved in serious efforts to outline and integrate these
activities into all aspects of their business operations.
It is against this background that the researcher wants to explore further the issue of
whether the companies do in fact have a responsibility that goes beyond the minimum
standards set by law.
In Zimbabwe the telecom industry has been the best performing industry in the
past 10 years. In fact one of the biggest telecoms company is the second largest
counter on the Zimbabwe Stock Exchange (by Market Capitalization).
In Zimbabwe Econet and Telecel ( the two largest telecoms companies) have a
combined subscriber base of more than 5 million subscribers and as such the
researcher believes that they telecoms company have adequate pockets to take
care of the communities that they operate in.
Telecom companies have been in the newspapers for neglecting the community
and at times degrading the environment with no real benefits to the local
communities.
Telecommunication companies have been blamed for raking millions of dollars in
profits with no real tangible benefits to the communities.
In addition most telecom have been accused of putting their base stations close to
residential areas thereby exposing communities to radiation caused by the base
stations.
On the flip side telecom companies in Zimbabwe has been quoted in the public
media boosting about the various CSR projects they are involved in and they
various initiatives aimed at “ploughing back” to the community.
It is against this background that the researcher wants to do a study on the responsibilities
that telecom companies have in the communities they operate in. The researcher in
domiciled in Zimbabwe but attends university in South Africa. It is with this in mind that
the researcher has chosen Zimbabwe as the scope of his studies so that he can do the
research in the country he is domiciled in.
The findings from this study will also form a bedrock for future studies and research
specific to telecoms companies in Zimbabwe as currently there is a literature gap specific
to the telecoms industry in these countries.
1.4 DELINEATION
This research will only focus on the telecoms industry in Zimbabwe and as such it is
acknowledged that this research will be limited to the telecoms industry in that country
only. It is however important to do such a research as it will provide an insight into issues
surrounding telecoms companies relationships with the communities.
It is also acknowledged that not all of the telecoms companies will be assessed and
included in this study. Only the two biggest telecoms companies in Zimbabwe will be
included in the research.
The research project began in March 2014 and will run until October 2014; as such it is
intended to be a pilot project for further full scale research which will take more than two
years to complete.
Conducting a literature review is a vital test of the research questions against information
that is already known about the research area. Various authoritative books, journal
articles, public relations fliers, corporate publicity reports, annual reports, thesis,
dissertations, Internet based articles and websites are available around the subject
matter, this will enrich the researcher’s knowledge of the research at hand.
However, the researcher noticed that so far most past researchers and scholars who have
conducted research on this topic have generalized their research study to a broader view
and not to a specific industry in Zimbabwe.
Leedy and Ormrod (2010) states that, the aim of conducting a literature review is to look
again at the literature drafted and compiled by others in a related area not essentially
identical but related to your own area of research. In this regard the researcher will read
widely in the field of ethics and corporate social responsibility studies.
The researcher will attempt to look at literature that both supports and opposes the
proportion that businesses should have a responsibility to the communities in which they
operate in. Most emphasis will be placed on latest journal articles as opposed to text
books as most journals have some empirical evidence to the topics being discussed.
1. Carroll AB and Buchholtz AK. 2012. Business and society: ethics and stakeholder
management. 8th Ed. United States: Cengage Learning.
2. Cooper, D.R. and Schindler, P.S. 2011 .Business research methods, 11th ed.
Boston: McGraw-Hill.
3. Galan, J.I. 2006. ‘Corporate Social Responsibility and Strategic Management’,
Journal of Management Studies.
4. Johnson, G and Scholes, K. 2002. Exploring Corporate Strategy. 6th ed. Harlow,
England: Pearson Education.
5. Journal of Corporate Citizenship, Volume 2005 and 2006. Published by: Greenleaf
Publishing in association with GSE Research
6. Knight, C. 2011. Responsibility and Distributive Justice. United Kingdom: Oxford
University Press.
7. Leedy, P.D and Ormrod, J.E. 2010. Practical Research: Planning and Design 9th
Ed. New Jersey: Pearson Education International, Saddle River.
In addition the researcher will review the various Annual Reports, Sustainability and
Accountability reports, press statements and websites for the two biggest telecoms
companies in Zimbabwe. With that in mind the review will be limited to Econet and Telecel
in Zimbabwe.
This section provides the intended methodology to be used in the research and what
techniques the researcher intent to apply. The research consists of a literature review and
an empirical investigation. The literature review has been discussed in the previous
section of this chapter as such this section looks at the empirical investigations. It is
important to note that various authors have different preferences with regard to the
techniques and models that are applied in research.
Quantitative Research
The aim of this research is to get reliable explanation on whether the community
thinks that telecoms companies have additional duties in the communities. This
can be obtained from a qualitative research because it tends to appreciate the
emotional state, ideals, and perceptions that inspire and impact behavior.
The objectives of the research is to gain an understanding of underlying reasons
and motivations towards CSR activities.
Population
According to Copper and Schindler (2011) the concept of population can be considered
as the total collection of the elements about which inferences were made in a statistical
study. This research will follow a format of a cross-sectional design. A cross-sectional
design enables people from various and different age groups to be sampled and
compared. Due to the time constraints of the research project, this method was identified
to be the best method as it enables the researcher to collect all of the required data at
once (Leedy & Ormrod, 2010).
Data Collection
Data collection is any process of formulating and gathering data for the research. Data
collected can either be primary or secondary data. Primary data is data from original
sources and is gathered especially to respond to the research problems, while secondary
data is data that has been gathered by others for use in their own research or other uses.
According to Sapsford and Jupp (2006) a proper data gathering process is essential as it
confirms that data gathered is both well-defined and accurate. In addition it ensures that
succeeding decisions are based on arguments embodied in the findings that are valid.
A researcher can decide to use one or more data collection methods while bearing in
mind its overall suitability to the research project, along with other practical
considerations, such as: anticipated quality of the data gathered, projected costs,
foreseen non response rates, anticipated level of errors, and duration of the data
gathering period. The choice of data collection techniques is determined by the data
collection strategy, the types of variable, the level of accuracy required and the skills of
the researcher and those entrusted with the data collection. The researcher choose to
collect data through questionnaires and structured interviews based on the limited time
phrase involved in the research project.
Questionnaires
According to Leedy and Ormrod (2010) questionnaires can be directed to a large number
of respondents and this works well when there is limited time and money. In addition
respondents are more likely to tell the truth when replying to questionnaires regarding
sensitive and contentious issues in particular due to the fact that their responses remain
anonymous. However questionnaires also have limitations. Most of the respondents who
receive questionnaires do not bother returning them and those who return the
questionnaires might not be an adequate representation of the selected sample.
The researcher chose this method because it’s a cheaper method that is practical where
most of the respondents are literate and respondents are co-operative. In order to
maximize return rates, the researcher designed the questionnaires to be as short, simple
and clear as possible.
Structured Interviews
According to Leedy and Ormrod (2010) in a structured interview, the interviewer asks a
standard set of questions and nothing more. The interviews have a discrete advantage of
allowing the interviewer to establish a bond with the participants and therefore improve
their cooperation. The interviews also result in the highest response rates in research as
the information is gathered face to face. The interviews also enable the researcher seek
clarity to unclear answers and where applicable, seek additional information.
Sample selection
De Vaus (2002) states that if an adequate representative sample from the population is
not collected, the researcher runs the risk of attaining biased results. He also mentions
that the size of the sample depends on two major factors, firstly, the degree of accuracy
required from the sample, and secondly, the degree to which there is a variation in the
target population with regards to the key elements of the research study.
There are four main sampling techniques and these are: random sampling, stratified
sampling, systematic sampling and cluster sampling. The researcher chose random
sampling for selecting the sample for the questionnaires to the research subjects.
According to Gay (1996) random sampling is the process of selecting a sample in such a
way that all individuals in the target population have an equal and autonomous chance of
being selected for inclusion in the sample. However the researcher chose quota sampling
(a non-random sampling method) because it was considered as the best way to obtain a
representative sample that was appropriate for the study. This method was also
considered ideal for the research because when the sample is not representative of the
population, selection bias is a possibility and the researcher wanted to reduce selection
bias to a greater degree.
The research will follow a structured approach and the following chapters were
envisaged:
Chapter one: Introduction
Chapter two: Literature review
Chapter three: Methodology
Chapter four: Results
Chapter five: Discussion and conclusions
1.8 SUMMARY
This chapter focused on the background to the study and provided the problem statement
and importance of the study. The limitations of the study were also discussed. This was
followed by a detailed discussion of the proposed research methods. An outline of the
chapters that will follow was also provided so as to guide the reader in understanding the
flow of the research paper. The next chapter will focus on the relevant literature. A
section of the forthcoming chapter is devoted to defining the key concepts in the study.
In the previous chapter, the background and importance of the study, as well as the
research methodology were documented and discussed in detail. In this chapter a
detailed analysis of available literature was done. The literature review process is an
important test of the research questions compared to what has already been done around
the topic. There is a profusion of literature on corporate responsibilities, but there is limited
research on the subject in relation to the telecoms industry.
To ensure that the literature review follows a logical sequence, the research project has
been split into chapters with different segments according to the research questions and
research objectives as discussed in the previous chapter.
A good way to start the literature review is to define and analyse the key terms as they
relate to the subject at hand. The researcher will examine critically all the key terms and
concepts with a view to bring out the essential elements of the concepts. The following
terms and phases will be defined and analyzed under this heading:
CSR
CSR has become a dominant term in today’s business language. However it still remains
as one of the most defined and confused term in the business community. Different
entities have outlined varying definitions for CSR. However there is some significant
common ground amongst these definitions although it still remains a broad term.
According to Frankental, (2001), CSR is a vague term which can mean anything to
anyone, and therefore is essentially does not have a meaning. CSR is highly individual
and as such it does not allow for a collectively appropriate definition.
CSR can be viewed as company initiatives that are aimed at providing support to the
community without legal enforcement or pressure from special interest groups. According
to Certo (2008), CSR is the managerial duty to take action that protects and improves
both the wellbeing of the society as a whole and benefits the organisation in the process.
Baker (2004) agrees with Certo (2008) and defines CSR as how entities manage the
business practices to produce an overall positive influence on the society. Holme and
Watts (2000) further defines CSR as the ongoing pledge by companies to behave in an
ethical manner and contributing to the development of the community, while improving
the quality of life its staff and their families as well as of the community and the society in
general.
STAKEHOLDERS
Johnson and Scholes (2002) define stakeholders as those individuals or groups who rely
on the organization to fulfill their own objectives and on whom, in turn, the organization
depends on. While it is generally agreed that companies need to manage their
relationships with their stakeholders, identifying the relevant stakeholder groups is the
key starting point. The main stakeholders are:
Shareholders - concerned with their dividends and capital growth of their equity.
Customers and suppliers – interested in the goods and services the company provides.
Government – especially the tax authorities who are interested in receiving taxes.
The community – concerned with whether the entity is acting suitably towards their
interests.
According to Frankental, (2001) CSR can only have real value if it embraces all the
identified stakeholders of a company and if it is open to public scrutiny. An entity must
identify its stakeholders and arrange them in their order of significance to the company
before they can consider the needs and expectations of these stakeholders. In most
cases the aims of the stakeholders are not the same as shareholders and they come into
conflict on various issues. These clashes usually arises because most shareholders want
short-term profits, while the other stakeholders’ needs and wants come as an expense
and tend to reduce the company’s profitability.
COMMUNITY
James (2006) defines a community as a group or setup of people who are linked
(objectively) to each other by fairly strong social relationships that go further than
immediate genealogical ties, and who jointly define that relationship (subjectively) as
significant to their social personality and social practice. Thus a community is a group of
people who share a common understanding and bond that goes beyond just staying close
to each other.
SOCIAL EQUALITY
According to Knight (2011), social equality is a state of undertakings in which all people
within a defined society have the same standing in certain respects. It concerns the
distribution of social goods and problems, such as profits, wealth, prospects, health care,
and education.
An early view of CSR stated that it involves completely considering the effects of the
company’s actions on the general communities. Adam Smith’s notion of the “invisible
hand” was the key initial point of CSR. Early authors such as Abrams (1951) argued that
companies should not think of profits alone but also their staff, customers, and the general
populace at large. In the 1960s CSR activities grow in popularity largely motivated by the
social movements in the USA and the onward thinking academics who attempted to
define what CSR meant for businesses. The term CSR came into regular use in the late
1960s after many companies fashioned the term stakeholder meaning those on whom an
entity’s actions have an impact. This was a major breakthrough for CSR as early authors
such as Friedman (1962) had noted that management has one responsibility of
maximizing profits for its shareholders.
Carroll’s four part definition of CSR is valuable in tracking the background and history of
CSR activities. The definition helps us comprehend the elements that make up CSR.
According to Buchholtz and Carroll (2012), the CSR of a company involves the economic,
legal, ethical, and discretionary (philanthropic) anticipations that the society has of the
organisations at any point in time. This can be depicted graphically as shown below:
The 21st century has seen a dramatic change in stakeholder expectations on companies.
However significant change has been noticed in community expectations than any other
group of stakeholders. According to Buchholtz and Carroll (2012) there are several factors
affecting society’s expectations on companies. They emphasize that over the years,
various factors in the social and legal environment have produced a climate in which
criticism of company practices has taken centre stage and succeeded. According to the
two authors the following factors in the social environment has affected societal
expectations on business:
Normally as a people become more successful and better educated, the more
sophisticated their expectations on businesses. The combination of affluence and
education has created an environment in which societies can criticize business practices.
There is an increasing level of public awareness in our communities and this can be
attributed to the increased use of electronic media. Through electronic media the society
can get a profusion of information that can increase the society’s expectations on
business.
In a nut shell this era of rising expectations means a certainty that each succeeding
generation should have a standard of living more developed than of its previous
generation. If rising expectations continue, then the societal expectations on companies
will continue to increase.
Entitlement mentality
Rights movement
The rising expectations and the entitlement mentality have given rise to a rights
movement that is now evident in most communities. In addition to the basic human rights
enshrined in the constitution there are now additional rights being brought forward by
special interest groups. Some of these rights have been seen as common for all the
people. There is a growing number of special interest groups putting pressure on
companies to provide the special rights to communities.
Victimization philosophy
All the above factors have left to a victimization philosophy within the society. Most
societies view themselves as victims of past imbalances and as such feel that they should
be compensated for these past injustices.
The diagram below shows how the above points are interrelated as the drivers of the
increased expectations to businesses:
An effective way to handle CSR is to integrate and embed the CSR strategy into the
business strategy of the business. According to Buchholtz and Carroll (2012) CSR is an
important strategic imperative for most organisations. For a CSR program to be effective
the following practices should be incorporated into the program:
Current research has shown an increasing prominence of CSR for a wide range of
stakeholders, from communities, consumers and employees to law enforcement and
investors. Thus the various expectations of the different stakeholders may clash, so that
every company needs to change its strategies regularly to meet the identified
stakeholders’ expectations. CSR is achieving a huge significance for companies globally.
As such this generates a need for businesses to improve their strategy towards CSR so
that it meets their unique requirements and business strategic circumstances. In an
empirical research, Udayasankar (2008) concluded that the bigger the company size the
bigger its motivational base for CSR activities.
Rogovsky and Dunfee (2002) highlighted that CSR projects cannot be effectively fulfilled
without a clear appreciation of the costs and benefits of the activities. A good CSR
initiative requires definite objectives and an effective execution. The main objective of
CSR is to generate long-term benefits, and these can only be attained if management
has a proper account of where the company resources have been deployed and what
return the company has realised from this deployment. To achieve this, it is important for
companies to come up with refined meanings and pointers of successful CSR initiatives.
Because of this need to define and measure CSR activities it is of fundamental importance
to put CSR activities as part of the corporate strategy of the organisation. However
modern research has shown that most companies’ attitude towards CSR highlights that
they do not appreciate CSR as a life-threatening activity which should be enshrined in the
business strategy. Hull and Rothenberg (2008) pause a stimulating question in backing
this view. They maintain that CSR is normally followed as a response to mounting
pressure from various stakeholders. As a result, the CSR initiatives implemented are
neither strategic nor effective but cosmetic in nature.
The expectations and needs of the various stakeholders will differ and as such it is typical
for clashes to arise concerning the status and attractiveness of the CSR initiatives. In
many cases, a concession will have to be reached amongst the various expectations that
cannot all be accomplished concurrently. This compromise in most cases will lead to the
lack of adequacy of CSR activities in the eyes of the community.
According to Tilcsik and Marquis (2013) a usual tactic to CSR is through benevolence
activities. This usually involves donating funds to areas such as the education,
accommodation, arts, health care, and environmental awareness and protection.
The organisation needs to assess the expectations of all its identified stakeholders. The
assessment should cover the aspects of the ‘Triple Bottom Line’ – economic,
environmental and social. The Triple Bottom Line, commonly designated by the three Ps:
People, Planet and Profit, helps to support companies in addressing justifiable
development in its entirety. The Triple Bottom Line can be depicted by a diagram as
shown below:
Through CSR initiatives companies can contribute to viable social, environmental and
economic development. The three pillars include: profit (the monetary value created by
the business, or the financial benefit to the general populace), people (the rational and
satisfactory company practices regarding the community in which the business operates
in) and planet (the use of maintainable conservational practices and the reduction of
environmental damage).These three key pillars are important factors to
good CSR initiatives because they ensure an effective CSR policy that leads to
sustainability. The Triple Bottom Line is a complete CSR methodology for companies to
see the people, the planet and profitability (the three Ps) as equal stakes in the company
mission.
The general philosophy of the triple bottom is that there is more to business than just
making money and as such companies should also look at their operation’s impact on the
communities and the environment they operate in. People represents the source of
labour, the community and the area in which an organisation operates. Companies that
embrace the triple bottom line into their strategic plans aim to increase welfares for all
identified stakeholders without manipulating or compromising any of the stakeholders.
In most countries there are laws to impose minimum CSR levels. However an effective
CSR policy is mainly about producing best practice, and conducting it in a way that
achieves a win-win situation for both the various stakeholders. As such CSR is not CSR
unless it goes beyond what is required by the law.
The governance of companies in Zimbabwe and across the globe reflects the interests of
shareholders but not of the other stakeholders such as consumers and communities. The
Zimbabwean companies act offers legal protection for shareholders but no protection to
any other stakeholders affected by the companies’ decisions and operations.
However some countries have mandated the CSR activities with a view of at least setting
up the minimum standards which companies should adhere to. One such country is India,
the CSR provision is part of their legislation in their companies act. It necessitates that
businesses (both public and private) of a particular size must create a CSR Sub-
committee including three directors (one of whom should be an independent non-
executive), and this sub-committee should administer the investment of at least 2 percent
of pre-tax profit in CSR activities.
Many authors among them Lantos (2001) argues that CSR should be obligatory for it to
be effective in meeting stakeholder needs and expectations. Recently the Zimbabwean
Mines and Mining Development Minister, Mr. Walter Chidhakwa was quoted issuing a
warning to mining companies that are not doing anything to help and advance the
communities in which they do business in. He said his office was working on a new policy
in line with ZimAsset (the current Zimbabwean economic blueprint) which compels all
mining companies to add value in all the communities where they are mining and to
ensure that infrastructure was in place. These sentiments where echoes by the
Zimbabwean Speaker of Parliament Advocate Jacob Mudenda said parliament supported
the ministry’s proposal to come up with a law that compels all mining companies to carry
out community development initiatives wherever they do their mining activities.
Swire (1997) noted that most guidelines and regulations on CSR are designed due to
public outcry. In most cases the outcry negatively affects profitability and therefore the
welfare of the shareholders. However if there is no outcry then often will be narrow CSR
guidelines. As such public outcry can be viewed as the main driver of legislation of CSR
activities.
Buchholtz and Carroll (2012) note that rules and regulations are essential for the
implementation of CSR. They noted that laws and regulations represent a partial fulfilment
of the social contract between business and the society. De Schutter (2008) agrees with
this notion and stated that the business case for CSR relies on certain presumptions about
the company profitability and the business setting, which cannot be merely assumed. As
such the CSR initiatives should be positively created by a regulatory and legal framework
for CSR.
due to the fact that ISO 26000:2010 only offers direction rather than requirements, so it
cannot be certified to unlike some other ISO standards already in place. However
according to the International Standards Organisation, ISO 26000 is important because
it provides clarify on what CSR is, assists companies to interpret philosophies into
effective actions and best practices relating to CSR.
Since time immemorial there has been conflicting expectations of the nature and extend
of companies’ responsibilities to the society. According to Buchholtz and Carroll (2012) it
could be argues that people’s rising expectations on companies’ social performance have
overtaken most companies’ capability to meet these mounting expectations. Due to the
gap in expected social activities and actual company activities companies are being faced
with a much larger social problem. Jocoby (1973) defines a social problem as a break
between society’s expectations of social conditions and the existing social actualities.
The graph below illustrates the growing social problem arising from the expectation gap:
Rogovsky and Dunfee (2002) noted that in order to reduce the expectation gap,
companies should examine the external environment to assess where its resources can
provide the maximum benefit to the general populace. In this analysis of the settings, the
company should also contemplate the views of the general public and other identified
stakeholders on what kind of CSR initiatives derives the maximum value to them.
According to Buchholtz and Carroll (2012), the relationship between businesses and
society is through a social contract. This is a set of mutual agreement that describe the
relationship between companies and the society. The social contract is shifting to reflect
the society’s expanded expectations on companies. The social contract is shown below:
The laws and regulations are established by the society as a framework within which
businesses much operate. These laws and regulations form the expected rules of the
CSR landscape.
The common understanding evolved over time as each group’s expectations of each
other. They address those expectations that are normally understood but not essentially
formally communicated. The social contract is the foundation of stakeholder theory.
According to Porter and Kramer (2006) once it is recognized that business and society
require each other, the administration of the business side of this mutual relationship
becomes a vital feature of the company strategy and performance.
In order to fully assess whether companies have any responsibilities in the communities
they operate from, it is important to analyse the arguments for and against CSR.
Proponents of CSR usually argue that there is interrelationship between business and
society and as such successful companies need a healthy society to operate effectively.
This was supported by Porter and Kramer (2006) who noted that a business that follows
its objectives at the expense of society’s needs and wants will only achieve temporary
success. The arguments for and against CSR have been summarized below:
According to Buchholtz and Carroll (2012) the advocates of CSR argue that socially
responsible actions can have a positive impact on the long term profitability of the
company. They state the following as the benefits of CSR activities:
Opponents of CSR often claim that companies should concentration their efforts and
channel their resources towards the company profitability and leave social responsibility
issues to the government and NGOs. Milton Friedman was one of the opponents of CSR
and he argued that free markets rather than businesses should choose what is best for
the people.
Ronen (2011) also argued that CSR activities are purely window-dressing initiatives, or
endeavors to prevent the role of governments as a regulator over influential companies.
The following are some of the arguments against companies doing CSR activities:
One of the biggest CSR barriers is that the perceived value is less than the expected cost
most of the times. A key question to ask is, what drives businesses to adopt CSR
activities? This is extremely important to understand because according to Waddock and
Graves (1997) businesses involved in CSR are at a disadvantage in regards to their
competitors, since they would be suffering extra costs which can be avoidable. According
to Buchholtz and Carroll (2012) both internal motivators and external pressures push
businesses towards embracing CSR. The drivers are:
According to Buchholtz and Carroll (2012) CSR activities have intensified because
businesses are realizing that proacting is healthier than responding to the external
pressures. Thus companies are now involved in proactive CSR strategies (foreseeing,
preparing, and instigating) is more effective and less costly than responding to the societal
pressures once they arise.
Companies like Delta, Econet, Netone, Barclays, ZIMASCO, and Telecel amongst others
have been involved in availing school fees sponsorship to disadvantaged students and
understanding other various CSR activities. According to Mathibela (2013) Zimbabwean
companies should appreciate CSR because it is an essential factor to an effective and
workable business strategy, preventing likely societal difficulties while optimizing
circumstances for long-term success. However CSR activities have been overtaken by
the need to increase their profitability given the harsh economic environment prevailing
in Zimbabwe.
The CSR field has advanced immensely over the previous years such that it has become
an integral element of business strategy. It has built a firm foundation to other more
involving and elaborate forms of corporate philanthropy. Vogel (2005) noted that the
scrutiny of the association between CSR activities and the company’s profitability has
paved the way for new forms of CSR initiatives.
The two main new forms of CSR has been Creating Shared Value (CSV) and Corporate
Social Investment (CSI). We will drill down these two concepts with a view of establishing
if businesses do have responsibilities in the communities they operate in. We will also the
CSR trends in the emerging markets. Zimbabwe is an emerging market as such it will be
crucial to analyse the CSR trend in the emerging markets in general.
Rogovsky and Dunfee (2002), in their research paper stated that these CSV initiatives
are different from their previous CSR projects in that they are linked to the company’s
core values, they are receptive to ethical pressures, based on the company’s core
capabilities, and have precise goals on which achievements can be measured.
CSI indicates a long-term obligation in a CSR project, with the main focus on returns.
Expected social returns are defined from the beginning and measuring yields and
evaluating impact are important project procedures. The CSI projects are designed and
implemented in consultation with the local communities.
Baskin (2006) in his research paper investigates the extent of CSR uptake in leading
emerging economies (South Africa, Brazil, and India), and compares this with the CSR
state in developed markets. His research highlights that actual CSR in emerging
economies (mainly South Africa, India and Brazil) is further advanced than normally
assumed and often exceeds the standards in some high-income economies such as the
UK and USA. Thus there is sufficient evidence to show that emerging markets are
embracing strategic CSR initiatives with a view of enhancing shareholder value.
In his research paper, Weyzig (2006) agrees with research conclusion by Baskin (2006).
Weyzig (2006) argue that developments in CSR in emerging countries is different from
those in high-income economies. He highlighted that CSR developments are largely
determined by international developments, but are designed by context-specific factors.
The international element is most evident in the varying standpoints on CSR and the
standards for responsible business actions.
2.12 SUMMARY
The purpose of this chapter was to deliver the theoretical outline for the research theme:
“Do businesses have responsibilities to the communities in which they operate? A
critical analysis of telecommunications companies in Zimbabwe” This chapter provided
the foundation for the research project and extensive background information has been
gathered in terms of assessing if businesses have responsibilities in the communities they
operate in.
The importance of CSR has changed in modern times in the light of everyday experience
involving global benchmarks on business ethics, social justice and environmental sustain-
able development. This has shed more light in answering the research question “Do
business have responsibilities to the communities in which they operate”. There seem to
be no significant disapproval to appropriate CSR initiatives in any situation, although the
acceptance of CSR initiatives faces a range of corporate challenges.
In the previous chapter, the existing literature was reviewed and discussed in detail. The
review of literature has produced a body of knowledge that has formed the basis of the
research methodology. In addition the literature review is an essential foundation for the
methodology of this research project. This research project was conducted based on the
methodology detailed in this chapter. The methodology detailed in this chapter plays a
central role in the implementing the research project as it is the blue print of how the
research was conducted.
This research is of importance to the CSR field as it extends the knowledge base that
already exists in the field. In addition the research will help the telecoms companies in
narrowing the expectation gap between the activities they are currently doing for the
society and what the society expects the companies to be doing. This will improve the
image of the industry and the companies involved and at the same time improving the
relationships between telecoms companies and business.
The findings from this study will also form a bedrock for future studies and research
specific to telecoms companies in Zimbabwe as currently there is a literature gap specific
to the telecoms industry in these countries. According to Coldwell and Herbst (2004),
research projects are vital for business in that they moderates indecision by availing
valuable information that helps in the policymaking exercise.
The planning and execution of any research assignment requires significant analysis and
strategy on the research procedures and the data analysis processes to be
followed. The selection of the research method is critical for what inferences the research
will come up with.
Pellissier (2007) state that quantitative (or positivist) approach is used when the
researcher wants to focus on what is now and what the respondent knows of which they
have facts, including what respondents have done.
The aim of this research is to get reliable explanation on whether the community
thinks that telecoms companies have additional duties in the communities. This
can be obtained from a qualitative research because it tends to appreciate the
feelings, morals, and insights that motivate and impact behavior.
The objectives of the research is to achieve an appreciation of the fundamental
motives and incentives towards CSR activities.
Qualitative research is used to reveal dominant developments in beliefs and views
and this is one of the objective of this research. In addition the research avails
discoveries that were not agreed in advance.
The research also provides answers that are appropriate outside the immediate
boundaries of the current research study.
Qualitative research is mainly valuable as an instrument for defining what is central
to the community and why it is vital to them.
Qualitative research assists us recognize issues and appreciate why they are
essential.
The researcher preferred qualitative research because it allows the researcher to
ask people for their views in an organized way so as to yield solid facts that can
be used to reach a conclusion.
Qualitative research exposes areas of agreement, either positive or negative, in
the patterns of response. It also defines which thoughts produce a solid emotional
response. Thus, it is particularly beneficial in circumstances which include the
ongoing expansion and improvement of fresh concepts.
Qualitative research is used to recommend a final course of action and the
research was meant to provide an answer to the research problem and provide
recommendations to companies.
samples are small and not essentially representative of the wider population, so it
is challenging to know how far we can generalize the conclusions;
the results lack consistency and precision;
Lastly it is challenging to articulate how far the conclusions are biased by the
researcher’s personal sentiments.
There are three main categories of business research strategies namely descriptive
research, exploratory research and casual research. The main aim of an exploratory
research project is to determine ideas and insights on the other end, descriptive research
is mostly aimed at describing a population with regards to certain significant variables.
Lastly causal research’s main aim is to determine the cause-and-effect relationships
between variables.
For this research, a descriptive research approach was conducted. According to Burns
and Grove (2003), descriptive research is planned to give a representation of a condition
as it naturally occurs. Jackson (2009) agrees with this notion and state that descriptive
research is used to get evidence about the present position of the phenomena to describe
what exists with reference to various variables. As such descriptive research may be used
to defend present practices and make decisions. In addition it helps to develop concepts
to support the current practices. For the purpose of this research study, descriptive
research was used to obtain the views of the community and management of Telecoms
companies on whether the companies do have responsibilities in the community they
operate in.
The major budgetary constraints for the research are time and money to fund the project
activities. Due to money constraints, the researcher used unpaid volunteers to distribute
the questionnaires. In addition the respondents to both the interviews and questionnaires
were not be paid for their participation in the research project.
In addition the research project was constrained by timed resources. Due to time
constraints this research was done at the expense of other pressing commitments at work
and social requirements at home. However adequate time was set aside to ensure that
the project is finished within the stipulated timeframe.
This research involved major interactions with the community and senior management at
Telecoms companies. As such high levels of ethics were expected as the researcher
came into contact with sensitive information during the data collection phase of the
project. During the preparation and obtaining of data, the safeguarding of confidentiality
and anonymity of the respondents was advocated; data was gathered only for the
purpose of this research. In addition other ethical issues such as confidentiality, debriefing
and informed consent were upheld during the research process.
McDaniel and Gates (2001) noted that a high standard of ethics and proficiency go hand
in glove. As such good ethics provides a firm basis for professionalism, and striving for a
high level of professionalism requires appropriate principles on the part of researchers.
Blaxter et al. (2001) highlighted that a common cause of ethical problems is conflicts of
interest between the researcher and the researched subjects. The researcher ensured
that the data collected in this research collected was objective and factual and did not
demonstrate the researcher’s own point of view of the subject matter. The results were
not distorted or changed to be in line with the researcher’s own personal point of view.
Since our survey was being administered to the company’s management and community
members, we had to adhere to strict company policies and sign Non-Disclosure
Agreements (NDAs) regarding the disclosure on the information obtained from the study.
Our standard UNISA cover letter included information instructing the respondents to
remain unidentified, to only fill out the survey voluntarily. The researcher also guaranteed
them that their responses would remain confidential as the research was purely for
educational purposes only.
The Oxford English Dictionary (2007) explains ethical behaviour as being in harmony with
the principles of beliefs; ethically right; honorable; upright; decent. There are various
ethical considerations the researcher took into consideration in the planning and
implementation of the research plan. The researcher was conscious of the general
obligations he had to people who provided data in the research. A summary of the ethical
considerations taken into account by the researcher is shown below:
Informed Consent
The full involvement of all the respondents to the research project cannot be entirely
assured, even though the researcher advised the respondents that the information
provided will remain private and confidential. The researcher also availed to the
participants the information regarding the aim of the research study, and this was to
ensure maximum participation and feedback from the participants. The researcher
ensured that all the participants were aware of the intentions of the study.
Right to Privacy
This study has withheld the names of the participants who may have compromising
information which could influence any future deliberations and decisions of the involved
companies. The results of the study have been documented in such a way that the
identities of all the parties that participated in the study were protected.
.
Protection from Harm
The participants were employees of the telecoms companies and the people in the
community. In all the questionnaires and interviews, the confidentiality of the sessions
was emphasized and an assurance of the good intentions of the study was given at the
start in a less interrogative and more collaborative and participative manner to ensure
that no harm was caused on the part of the participants.
acknowledgement was also given to all contributors of the research project. The
researcher abided by the anti-plagiarism rules as issued by UNISA and this culminated
in the respect of intellectual property.
Data collection is a process of formulating and gathering data for the research. Data
collected can either be primary or secondary data. According to Cooper and Emory
(1995), primary data originates from original sources and is gathered exclusively to
respond to the research questions, while secondary data is a source material that has
been composed by others for their own requirements.
Sapsford and Jupp (2006) noted that a proper data gathering process is essential as it
makes sure that data collected is both clear and correct. In addition it ensures that
succeeding decisions based on opinions embodied in the conclusions are valid. The
choice of data collection techniques is determined by the data collection strategy, the
types of variable, the level of accuracy required and the skills of the researcher and those
entrusted with the data collection. The researcher choose to collect data through
questionnaires and structured interviews based on the limited time phrase involved in the
research project.
Questionnaires
According to Leedy and Ormrod (2010) questionnaires can be directed to a large number
of respondents and this works well when there is limited time and money. In addition
respondents are more likely to answer honestly while responding to the questionnaires
regarding contentious issues in particular due to the fact that their responses are secret.
However questionnaires also have limitations. Most of the respondents who receive
questionnaires don't return them and those respondents who do so might not be
representative of the designated sample.
The researcher chose this method because it’s a cheaper method that is practical where
most of the respondents are literate and respondents are co-operative. In order to
maximize return rates, the researcher designed the questionnaires to be as short, simple
and clear as possible.
The questionnaires contained a mixture of structured and semi structured questions with
blanks to be completed, questions with multiple choice selections, and some open-ended
questions where the respondent was asked and recommended to respond in detail.
A copy of the questionnaire is shown on appendix 1. The following key questions and
concepts where addressed by the questionnaires:
Structured Interviews
According to Leedy and Ormrod (2010) in a structured interview, the investigator asks a
standard set of questions and nothing more. The interviews have a discrete benefit of
allowing the investigator to establish a bond with the interviewees and thus gain their
cooperation. The interviews also result in the highest response rates in research as the
information is gathered face to face. The interviews also enable the researcher seek
clarity to unclear answers and where applicable, seek additional information. However
In the structured interviews information was gathered through inquiry and documented by
the researcher. The structured interviews were conducted using specially designed
questions and the notes are subsequently structured (interpreted) for further analysis. A
copy of the interview questions is shown on appendix 2. The following is a summary of
the interview questions:
What position do you have at the company?
How many years have you been with the company?
What do you understand as the meaning of CSR?
What CSR activities has the company performed in the past 5 years?
Do you think the community is satisfied with the CSR activities being provided?
What additional activities should be provided by the company to its community?
Is there any additional information you would like to share concerning the CSR
activities at your company?
Researchers using qualitative research approach normally make sampling selections that
allow them to extend their understanding of whatever phenomenon it is that they are
studying. The researcher took this into account when he analyzed the population and
sample to be selected. Burns and Grove (2003) defined a population as all the elements
that meet the standards (eligible) for inclusion in a research study. They further noted that
suitability criteria is a list of characteristics that are essential for the inclusion in the target
population. According to Copper and Schindler (2011) the concept of population can be
considered as the total collection of the elements about which inferences were made in a
statistical study.
Since it is usually not possible to test the whole population, the tests have to be done on
a sample. There are two types of sampling and these are:
De Vaus (2002) states that if an appropriate representative sample from the targeted
population is not gathered, the researcher runs the risk of attaining biased outcomes.
Patten (2004), noted that attaining an unbiased sample is the chief measure when
assessing the suitability of a sample. Patten also classifies an unbiased sample as one
in which item of the targeted population has an equal chance of being selected for
inclusion in the sample.
available, as well as the research objectives. Quota sample sizes are usually determined
on the basis of theoretical saturation (the point in data collection when new data no longer
bring additional insights to the research questions). Quota sampling is convenient when
time and resources are limited, a sampling frame is not available, and when
comprehensive accuracy is not important.
Step one
The first step was to choose the population and the relevant stratification and divide the
population accordingly our population is all the communities in Harare were the telecoms
companies operate. The researcher has identified the split between male and female as
the relevant stratification for the population.
According to the latest Zimbabwean census (2012) Harare has 2,1million people as
residents split as follows:
GENDER POPULATION %
Step two
The second step was to calculate a quota for each stratum (male and female residence
in Harare).The number of cases that should be included in each stratum varies depending
on the make-up of each stratum within the population.
The researcher has used professional judgment and has identified 100 as the optimal
sample size for the questionnaires. Thus based on the sampling quota, 48 questionnaires
were completed by males and 52 by females.
Step three
The final step was to administer the questionnaires. The researcher continued to invite
cases until the quota for each stratum was met (48 male respondents and 52 female
respondents). The analysis of the data was analyzed in the next chapter of this research
project.
The participants for the interviews were selected purely based on the fact that they were
the easiest to involve in the study and the researcher did not contemplate choosing
subjects that are representative of the entire population. In addition the participants for
the interviews were selected based on their relevance to the conceptual questions and
availability as opposed to their representativeness to the population. The disadvantage
of the sampling method is the sampling bias since the sample is not representative of the
entire population.
Convenience sampling is a moderately quick and easy way to attain the sample size
required for the research. However the disadvantage of convenience sampling is that the
sample may be fairly biased. Some people may be overselected, others underselected or
missed altogether. In addition it could also potentially be that the sample is unlikely to be
representative of the population being studied and, therefore, limiting researchers’ ability
to make generalisations of the findings to a wider population (Creswell 2007).
not representative of the population, the results of the study cannot speak for the entire
population.
The structured interviews were done with 5 employees of Econet Wireless, the largest
telecoms company in Zimbabwe. The managers that were available for the interviews and
hence formed the sample for the structured interviews were:
The use of convenience sampling led to a low external validity of the research. Patten
(2004) highlighted that validity is a substance of extend and the argument should
emphasize on how valid a test is, not whether it is valid or not. According to Tustin, Ligthel,
Martins, and Van Wyk (2010) a carefully controlled experiment conducted in a laboratory
environment yields results that are unambiguous. The experiment has a high internal
validity. A consequence of the artificial nature of a laboratory is the loss of generalizability
to more realistic situations. The experiment lacks external validity. Babbie and Mouton
(2008) define validity as the degree to which an experimental measure sufficiently
reproduces the actual meaning of the theory under consideration.
Due to the small sample size, there are dependability issues as the researcher give
guarantee that the data gathered reflects the entire target population. To reduce the risk
of the sample not representing the entire target population, the research results were
triangulated with the structured interviews to enable some form of reliability.
However with the interviews the respondent might be responding using their view as
opposed to the actual truths related with the research. There might be a biased view and
therefore to alleviate this, the researcher used the literature review to ensure that the
views obtained are in line with recent trends around the globe.
There are two main categories of validity and these are: (face validity) - contents of the
test or procedure seem like they are measuring what they are intended to measure and
(content validity) - content of the test or procedure sufficiently characterizes all that is
required for validity.
Quality of data
The quality of the data was verified soon after collection of the primary data. Data quality
was evaluated using different forms of analysis which included frequency counts,
descriptive statistics (mean, median and standard deviation), normality (skewness and,
frequency histograms). This analysis was important because it helps in the analysis of
the results of the study.
Although the researcher had adequately planned and prepared for the study it had its
limitations and shortcomings. First of all, the research was conducted in the 9 months
(April 2014 to December 2014), this is a very short time to come up with conclusive
solutions to the research problem.
The questionnaire design was meant to get specific data from the community members
and as such the data obtained was only for the specific structured questions contained in
the questionnaires.
In addition, selection of the convenient sample for the interviews was done by the
researcher, thus a certain degree of subjectivity can be found in the study. A more
statistical sampling method should have been used to main objectivity of the sample
selected.
The data collection was confined to only community members and employees of the
telecoms companies in Zimbabwe. The replication of the study at different companies
within other industries would enable better generalizability of the findings of the study.
Collecting such data was beyond the scope of the current study and future studies
might include other industries and countries as well.
The study has relied predominantly on qualitative methodology of data collection which
is therefore restrictive and subjective in nature. Therefore, more of quantitative
methodology of data collection should be used in future studies so as to fully explore the
research problem. This would provide a wider perspective to the current study conducted
by the researcher.
Another restriction of the research includes the cross-disciplinary nature of this research
assignment. This research combined various modules which included, Business
Research, Operations Management, Marketing and Strategic Management. There is an
implied danger involved whenever concepts and ideas are borrowed from other related
disciplines and then applied in the current setting. The researcher had limited knowledge
in some of the disciplines and as such had to rely on information obtained from the
literature reviews and interactions with subject experts in the relevant disciplines.
Last but not least financial budgetary constraints also limited the extent of the study. The
research was funded internally by the researcher and as such there was limited funding
to adequately address all the research objectives. Future research will have to be funded
by a sponsor for it to be able to cover all the intended objectives of the study.
3.11 ASSUMPTIONS
All research studies make assumptions about various issues affecting the project. The
most obvious and common one is that the chosen sample is representative of the
population. Other assumptions by the researcher are that the instruments used are valid
and that they measure the desired constructs. Another importation assumption is that all
participants in the research study will answer honestly. However the most important point
is for the researcher to state precisely what assumptions are being made when analyzing
the data and also acknowledge these assumptions when coming up with conclusions.
3.12 CONCLUSION
Chapter three managed to describe the chosen research methodology in detail. The
target population, sample selection, data collection methods as well as the strategies
used to guarantee ethical standards, reliability and validity of the research were also
discussed, justified and analyzed.
The researcher chose to do the research using qualitative research techniques. The key
component of qualitative research design is flexibility. Therefore, when a researcher
chooses a qualitative research design, they must have high tolerance for ambiguity. This
chapter has set the stage for the collection of data and analysis of the results. The next
chapter will therefore concentrate on the presentation and analysis of the data obtained.
4.1 INTRODUCTION
The objective of this chapter was to present and analyse the results obtained from the
community questionnaire survey and employees interview that were undertaken as part
of the primary data collection. The results from these two primary data collection methods
was then matched to the theory obtained in the literature review so as aid in the
interpretation of the findings. In qualitative research, data analysis normally takes place
at the same time as data collection. The collected data was captured on an Excel
spreadsheet and then organised and analysed.
The researcher used the Likert scale in the design and analysis of the questionnaire. This
was appropriate to answer all the sub- problem areas identified in the literature review.
Preliminary data analysis was an inherent part of data collection through the
questionnaires.
The background variables are age, gender, marital status, educational background,
number of children, years in the community, and the industry they work for.
In this research project the demographic characteristics of the respondents (age, gender,
marital status, educational background, number of children, years in the community, and
the industry they work for) play a very important role in expressing views about the
research objectives. In this research project the background variables of the 100
respondents were obtained through the confidential questionnaires distributed by the
researcher. This information was summarised and analysed in this chapter.
51 | P a g e MR. C SHONIWA – 77435834 (MBL 2014)
Do businesses have responsibilities to the communities in which they operate?
Gender
The frequency table for the gender is shown below:
DESRIPTION FREQUENCY PERCENTAGE
1 MALE 48 48%
2 FEMALE 52 52%
Total 100 100%
Age
The frequency table for the age is shown below:
MEAN = 3,423
100
The mean is = 34
The mode is the most common value and it is the above 41 age group. Because data is
grouped data the midpoint of the group was used to calculate the mean. The mean age
is 34 years old.
The median is the middle value when the values are arranged in order of size. Because
its grouped data, the research could not find an exact value for the median, but managed
to find the class which contains the median. There were 100 respondents, so we were
looking for the class which contains (100+1)/2 i.e. 51st value. The median is there within
the 33 to 40 age group.
Because the data was grouped data the midpoint of the group used to calculate the
Standard deviation. There the standard deviation of the age is 7.91
2 (Sxf)2
RANGE FREQUENCY (f) MID POINT (X) fX xf
SSx = Sx f -
2
1 18 - 25 17 22 366 7,858
2 26 - 32 23 29 667 19,343 n
3 33 - 40 35 37 1,278 46,629 = 123,336 - 117,135
5 ' above 41 25 45 1,113 49,506 SSx = 6,201
Total 100
6,201
Sf = Sxf = Sx2f 99
Total 100 3,423 123,336
62.64
7.91
Marital Status
The frequency table for marital status is shown below:
The mode of a set of data is the number with the highest frequency. In this case the mode
was the married group with 58 respondents out of 100 total
Level of education
The frequency table for the level of education is shown below:
The mode of a set of data is the class with the highest frequency. In this case the mode
is the high school class with 42 respondents out of 100 total. Thus from the above analysis
97 respondents out of 100 had high school education or better. This finding was
consistent with a recent research which showed that Zimbabwe had a literacy rate of 90%,
the highest in Africa.
According to Leedy and Ormrod (2010), qualitative research produces results that give
meaning, experience and views. In order to achieve this, the data that was collected
through the questionnaires related to concepts, opinions and values of people in the
social context as it relates to the subject matter. The responses to the specific questions
was analysed below:
All the respondents (100) knew the three major telecoms companies in Zimbabwe which
are Econet, Telecel, and Netone. Only 8 people knew another small company called
Brodacom. However the company’s licence was cancelled in July 2013 and as such is
not an operational telecom company for the sake of this research project.
Done projects
Company Nature of project(s) done
(Y/N)
Econet 67 Healthcare Cholera, Educational assistance, Caring for orphans
Telecel 33 Educational assistance,caring for disabled
Netone 26 Caring for orphans and disabled, Health care Anti-Malaria
Other 1 (specify) 0 Brodacom did not do any CSR projects in the community
Are you happy with the current community projects by telecoms companies?
Response #
Not Happy 53
Happy 21
Extremely Happy 8
They have not done anything 16
Others (specify) 2
Total 100
Response Number
Yes 80
No 20
Total 100
Sector #
Manufacturing 65
Mining 3
Services 30
Retail 40
informal SMEs 5
Response #
Not Happy 22
Happy 65
Extremely Happy 9
They have not done anything 4
100
Do you think the Government should come up with legislation that will make these
community projects mandatory?
Response #
Yes 81
No 19
Total 100
Which other additional projects would you want telecoms companies to do in your
community?
Response #
Rehabilitation of roads 73
Rehabilitation of street lights 28
Building of community recreation centres 30
Nothing more 6
Only 5 of the 100 respondents included additional comments and/or suggestions on the
spaces provided in the questionnaire. The additional comments were summarised as
follows:
RESPONDENT COMMENT/SUGGESTION
Respondent 1 Telecoms companies such as Econet make a lot of money in profits
as such they should contribute more to the rebuilding of the
country’s economy through the funding of SMEs and other start-up
businesses.
Respondent 2 The Government should put up a legislation that will compel all the
big corporations to plough back a percentage of their profits to
community projects and other social responsibility activities.
Respondent 3 Econet has done massive projects in this community and I would
like to urge other big companies in Zimbabwe to emulate what
Econet has done to this community. This a true sign that it is a truly
Christian organisation build of religious and moral grounds.
Respondent 4 All three telecom companies (Econet, Telecel and Netone) have
contributed immensely to the education, arts and culture sectors of
our country. They should continue doing that so as to create a long
lasting solution to the social and economic crisis being faced by
many families in Zimbabwe.
Respondent 5 Most companies do these CSR activities just as a formality or as a
marketing and publicity tool. Its high time these companies take
these initiatives seriously and contribute meaningfully to the
communities they operate int.
From the additional information from the 5 respondents, it was evident enough to show
that the community expects the telecoms companies to do more for the community than
the current CSR activities. In addition the community expects more economically
sustainable projects as opposed to more of social and cultural projects that some of the
companies undertake. However some of the respondents were happy both the nature
and magnitude of the CSR projects being done by the telecoms companies.
Age and gender were the major background variables in the questionnaires that were
distributed to the community. In this research project we used the test to investigate
the association between:
a) Age with:
Are you happy with the current community projects by telecoms
companies?
Should the telecoms companies be doing more for the community?
b) Gender with:
Are you happy with the current community projects by telecoms
companies?
Should the telecoms companies be doing more for the community?
A critical factor in using the chi-square test is the “degrees of freedom”, which is
essentially the number of independent random variables involved i.e. (row -1) x (column
-1) degrees of freedom. The significance level was set at the 5% level, and p-values
smaller than .05 were interpreted as indicative of significant differences.
The null hypothesis (H0) asserts the independence of the variables under consideration.
The alternative hypothesis (H1) is one in which a difference (or an effect) between two or
more variables is anticipated by the researchers; that is, the observed pattern of the data
is not due to a chance occurrence.
1. Age with satisfaction with the current community projects done by telecoms
companies.
Response classes
Response Class
Not Happy 1
Happy 2
Extremely Happy 3
They have not done anything 4
Others (specify) 5
Observed data
Expected data
5 1 2 4 1
1 2 0 0 0
0 0 0 0 0
6 2 1 4 1
= 31 and P is 21.
2. Age with whether telecoms companies should be doing more for the
community.
Response classes
Response Class
Yes 1
No 2
3
Observed data
Expected data
0 0
0 1
1 2
0 1
Conclusion: Because is lower than P, we accept the H0 and reject H1 and conclude
that there is no association between age and the opinion on whether telecoms
companies should be doing more for the community. Thus this information can be
used in the analysis of the results as age cannot act as a bias to opinion on additional
community projects to be done by the telecoms companies.
Response classes
Response Class
Not Happy 1
Happy 2
Extremely Happy 3
They have not done anything 4
Others (specify) 5
Observed data
Expected data
0 3 0 4 1
0 2 0 3 1
= 15 and P is 9.5.
4. Gender with whether telecoms companies should be doing more for the
community.
Response classes
Response Class
Yes 1
No 2
3
Observed data
Expected data
2 6
1 6
The results from the questionnaires were used to answer the research questions as
contained in the introduction chapter of this research project. Below the researcher listed
the questions were part of the research objectives of the project and the conclusions
obtained from the questionnaires:
1. Are the current and planned activities that the telecoms companies are doing
adequate to the communities?
From the questionnaire responses, 71% of the respondents were not happy with
the current activities that the telecoms companies were doing in the community.
Compared with companies in other industries (Manufacturing, Mining, and Retail),
74% of the community was happy with the current CSR activities these companies
were doing. The major companies identified by the respondents were Delta
Corporation, Lafarge, CBZ Bank, OK Zimbabwe, and Dairibord. Thus from the
analysis of the responses the telecoms companies are not doing enough for the
communities as evidenced by the large number of respondents who were not
happy with the current CSR activities.
2. What are the communities’ expectation with regards to the activities that the
telecoms companies should be doing?
80% of the respondents felt that the telecoms companies should be doing more
for the community. Thus from this analysis there is an expectation of more CSR
activities by the communities. In terms of the additional CSR activities that the
telecoms companies should be doing, 73 respondents said rehabilitation of roads,
while 30 and 28 respondents said building of community recreation areas and
rehabilitation of street lights. From the above we can conclude that the community
wants the telecoms companies to uplift the image of the communities in which they
operate from.
From the questionnaires. 81% of the respondents felt that the Government should
come up with legislation that will make the CSR projects mandatory. Only 19% felt
that there was no need to involve the Government in the implementation of CSR
activities. Many authors among them Lantos (2001) argues that CSR should be
obligatory for it to be effective in meeting stakeholder needs and expectations. This
dovetails with the responses from the questionnaires where a majority of the
respondents were for the implementation of legislation to compel companies to
partake in CSR activities.
4. Is there an expectation gap between the two parties? If it exists, what should
be done to narrow the expectation gap between the community and the
telecoms companies?
It can be concluded that there is an expectation gap between the current CSR
activities and what the community expects from telecoms companies. From the
responses from the questionnaires, the community is expecting the telecoms
companies to participate in the rehabilitation and rebuilding of the social
infrastructure which is in a dilapidated state. If the telecoms companies are
involved in these activities it will go a long way in narrowing the expectation gap.
However telecoms companies should avoid implementing cosmetic CSR activities
that are only as a reaction to the pressure from the community. The CSR activities
have to be of strategic nature to both the company and the community.
The analysis of data obtained from a qualitative research encompasses unearthing and
understanding the big picture by using the obtained data to describe and analyse the
phenomenon. However the analysis of qualitative data is difficult as it requires an
accurate description of participant responses without introducing some level of
subjectivity into the research.
obtained from a qualitative inquiry by cross-checking information. The data obtained from
the questionnaires was compared to the data obtained from the interviews conducted by
the researcher. In addition to these methods, the primary data was then compared with
the secondary data obtained from the literature review. The information collected was
then triangulated against each other to ensure reliability and validity.
The researcher chose to triangulate the responses from questionnaires with interviews.
This was because according to Kendall, 2008, while questionnaires can offer evidence of
patterns amongst large populations, qualitative interview data often collect more
exhaustive perceptions on participant views, opinions, and actions. Thus the purpose of
the interviews was to gather more in depth insights as to whether telecoms companies
have responsibilities to the communities in which they operate in.
The analysis of the qualitative research interview comments began at the time of
interviewing as the researcher identified problems and concepts that appear likely to help
in understanding the situation. Content analysis which involves coding, classifying and
analysis the data was used in the interpretation of the interview responses. The object of
content analysis is to make sense of the data collected and to highlight the important
concepts, features and findings. A sample interview sheet with the questions in attached
as appendix 2. The summary of the 5 interviews has been summarised and analysed
below:
Q # Question Response
7 What do you understand as the CSR for us is a means of giving back to the
meaning of CSR? community. We have been a very successful
organisation and through the various CSR
activities we are saying thank you to the
community that has served us so well over
the past 15 years.
8 What CSR activities has the The main thrust of our CSR activities has
company performed in the past 5 been to fund education for less- privileged
years? members of our community. Econet has
provided bursaries and scholarships to a
number of under- privileged scholars in the
past 5 years. This was and is still being done
through the Joshua Nkomo Scholarship
Fund and Capernaum Trust, an NGO
funded fully by Econet.
9 How much has the company Econet believes that these projects are more
spend on CSR activities in the than a just factor of social responsibility, but
previous years? rather a business imperative. Therefore,
these projects are at the core of all decision-
making within Econet. In terms of much we
have spent, I am not too sure of the exact
numbers but it is more than 10 million dollars
over the past 5 years.
10 Do you think the company Yes the company benefits from these CSR
benefits from these CSR activities through the publicity that we get, but
activities? If, yes how? bear in mind that this is not the main reason
that Econet undertakes these initiatives. The
company was founded on Christian values
and these forms the basis of our CSR
activities.
11 Do you think the community is I think the community is satisfied from these
satisfied with the CSR activities CSR activities. On a yearly basis we get more
being provided? Provide reasons than 100 letters and emails of appreciation
for your answer. for former students and parents who would
have benefited from our CSR activities.
Unfortunately Zimbabwe have more than 12
million people and more than half of them live
Table 4.6 – Interview summary for Head of Planning and Budgetary control
Q # Question Response
7 What do you understand as the These are Corporate Social Responsibility
meaning of CSR? activities that a private company undertakes
through donations as a means of giving back
to the community. The company doesn’t
benefit directly from these activities and as
Q # Question Response
7 What do you understand as the Giving back to the community through
meaning of CSR? various projects done by the company but
purely for the benefit of the community.
8 What CSR activities has the Provided scholarships and bursaries to
company performed in the past 5 Zimbabwean students who are high
years? performers but come from poor backgrounds.
9 How much has the company I am not sure but it runs into millions of dollars
spend on CSR activities in the in educational grants and scholarships.
previous years?
Q # Question Response
7 What do you understand as the These are activities that an entity undertakes
meaning of CSR? to enhance the livelihood of the environment
and the society that supports the entity’s
operations.
8 What CSR activities has the 50 free educational websites were introduced
company performed in the past 5 to allow students to perform academic
years? research and other learning activities.
Trusts were set up to assist the
underprivileged access good education
9 How much has the company We are not allowed to disclose that
spend on CSR activities in the information as company policy, but an idea of
previous years? how much is contained in our most recent
sustainability report which is publicly
obtainable on the internet.
12 What additional activities should None, I think we are actually doing more than
be provided by the company to its enough at the moment.
community?
Q # Question Response
7 What do you understand as the CSR is the way through which a business
meaning of CSR? achieves a balance of economic,
environmental and social objectives for its
1 2 3 4 5
From the above analysis of the 5 interviews all the employees understand the meaning
of CSR. In addition all the 5 respondents managed to justify the benefits of CSR to the
company. However because of company policy issues, only 2 of the 5 interviewees
managed to give a rough idea of how much the company has spent on CSR activities.
However there is evidence of an expectation gap between the community and the
employees of the telecoms companies. This came from the fact that 4 of the 5
interviewees noted that the company was indeed doing more than what is adequate for
the community. This was in sharp contract from the results of the questionnaires where
80% of the respondents felt that the telecoms companies should be doing more for the
community.
From the discussions during the interviews there was a general perception that the CSR
activities by telecoms companies are a necessary evil that has to be done for the company
to remain outside the legislative radar. Thus the main reason why these CSR activities
where being done was because of the Christian background of the entity and covering
the company’s back from authorities in the event that there are laws compelling
companies to engage in CSR activities.
4.7 CONCLUSION
From the literature review there was evidence to suggest that there is an expectation gap
between what the community expects and what most companies are doing for the
communities. The results of the questionnaires and interviews tend to support this
information from the secondary data. Indeed there seem to be a disparity between the
community’s expectations and what the telecoms companies are doing for the
community. This was particularly evident from the responses received from the interviews
where all but one felt that the company was actually doing more than enough for the
community.
The next chapter will discuss recommendations both for telecoms companies and future
researchers who would want to explore further this exciting subject on CSR.
5.1 INTRODUCTION
This chapter summaries the recommendations to both the telecoms companies and future
researchers who would want to explore this topic further. The research project was of
importance to the field of CSR as it extended the knowledge base that presently exists
around that area of study.
5.2 RECOMMENDATIONS
From the analysis of the results of the questionnaires there was evidence to that there is
an expectation gap between the current CSR activities done by telecoms companies and
what the community expects. Thus the research will help telecoms companies in
narrowing the expectation gap between the activities they are currently doing for the
society and what the society expects them to be doing. By doing this the telecoms will
improve the image of their industry and the companies involved and at the same time
improving the relationships between telecoms companies and business.
80% of the respondents felt that the telecoms companies should be doing more for the
community. Thus from this analysis there is an expectation of more CSR activities by the
communities. In terms of the additional CSR activities that the telecoms companies
should be doing, 73 respondents said rehabilitation of roads, while 30 and 28 respondents
said building of community recreation areas and rehabilitation of street lights.
From the above we can conclude that the community wants the telecoms companies to
uplift the image of the communities in which they operate from. As such we recommend
that the telecoms companies follow these requests in their future CSR activities. If the
telecoms companies are involved in these activities it will go a long way in narrowing the
expectation gap.
In future the researcher recommends that telecoms companies should come together and
fund CSR research projects as part of their strategic implementation of CSR activities.
Only through researches like this one can the telecoms companies be in a position to
make informed decisions in terms of which CSR activities to embark on.
CSR research is still in its infancy in Zimbabwe and the researcher recommends that
much more research is needed to build to this body of knowledge. The findings from this
study will form a solid foundation for future research on CSR activities. In Zimbabwe
there a literature gap on CSR activities specific to the telecoms industry. Thus future
researchers should research more in the field of specific activities that the community
expects from telecoms companies.
The research was done on a shoe string budget and as such there was limited resources
in terms of both time and funding. The researcher recommends that future researcher
should source adequate grants from companies and universities so that they can
adequately resource the research project.
The researcher also recommends that future researchers should consider sampling larger
sample groups within the industry. In addition a quantitative research approach should
also be used in future research projects. According to Anderson and Taylor (2009)
quantitative research produces quantifiable, reliable data that are usually generalizable
to some larger population. As the research results are intended to be applied to a larger
population in the future, quantitative research will be more applicable to future studies.
Future researchers should introduce a third primary data collection method (in addition to
questionnaires and interviews). This will allow a proper triangulation of results as a way
of introducing accuracy in the description of participants’ responses. Triangulation is the
procedure of consolidation the results obtained from an inquiry by cross-checking
information. This will give more accurate results of future studies.
5.3 CONCLUSION
The research has been an eye opener to the researcher in the field of CSR activities in
Zimbabwe. However it was not an event but a process that should be used as a
foundation by other future researchers. For the telecoms companies, now that the
research has shown that there is an expectation gap, they can now go back to the drawing
board and come up with CSR activities that both add value to the lives of the community
while at the same time still compliant with their strategic goals of the company. This
research has not being exhaustive in nature but tried to create new avenues for future
research around CSR in Zimbabwe and Africa in general.
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LIST OF APPENDICES
Dear Respondent
You are herewith invited to participate in an academic research study conducted by COURAGE
SHONIWA, a student in the Master of Business Leadership at UNISA’s Graduate School of
Business Leadership (SBL).
The purpose of the study is to investigate whether the community feels that the
telecommunication companies have a responsibility in the communities they operate in.
All your answers will be treated as confidential, and you will not be identified in any of the research
reports emanating from this research.
Your participation in this study is very important to us. You may however choose not to participate
and you may also withdraw from the study at any time without any negative consequences.
Please kindly answer the questions in the attached questionnaire as completely and honestly as
possible. This should not take more than 10-15 minutes of your time.
The results of the study will be used for academic purposes only and may be published in an
academic journal. We will provide you with a summary of our findings on request.
Please contact my supervisor, MR G W DALTON on daltogw@unisa.ac.za if you have any
questions or comments regarding the study. Please sign below to indicate your willingness to
participate in the study.
Yours sincerely
COURAGE SHONIWA
___________________________ ____________________
Respondent’s signature Date
1. Gender?
Male
Female
5. Number of Children?
None 1 to 3
4 to 5 more than 5
Econet
Telecel
Netone
Other 1 (specify) ____________________
Other 2 (specify) ____________________
Other 3 (specify) ____________________
10. What community projects have they done for the community?
(Please tick the ones you know and state the project(s) done by the company)
11. Are you happy with the current community projects by telecoms companies?
Not Happy
Happy
Extremely Happy
They have not done anything
Others (specify) ____________________
12. Should the telecoms companies be doing more for the community?
Yes
No
13. Besides telecoms companies, which other big companies operate in the
community?
(Please tick sector and mention name of the company or companies)
Manufacturing _________________________________________
Mining _________________________________________
Services _________________________________________
Retail _________________________________________
Other 1 (specify) _________________________________________
14. What projects have these companies done in the past 5 years?
(Please state company name and the projects they have done)
16. Do you think the Government should come up with legislation that will make
these community projects mandatory?
Yes
No
17. Which other additional projects would you want telecoms companies to do
in your community?
(Please list the projects in order of preference)
_______________________________
_______________________________
_______________________________
_______________________________
18. Is there any additional comments or suggestions you would like to give.
COURAGE SHONIWA
___________________________ ____________________
Respondent’s signature Date
2. Your gender?
________________________________________________________________
________________________________________________________________
3. Marital status?
________________________________________________________________
________________________________________________________________
8. What CSR activities has the company performed in the past 5 years?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
9. How much has the company spend on CSR activities in the previous years?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
10. Do you think the company benefits from these CSR activities? If, yes how?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
11. Do you think the community is satisfied with the CSR activities being
provided? Provide reasons for your answer.
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
13. Is there any additional information you would like to share concerning the
CSR activities at your company?
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
________________________________________________________________
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