Business Organizations In Nigeria – Social Responsiveness : A Study Of MTN Enugu Branch

Business Organizations In Nigeria – Social Responsiveness : A Study Of MTN Enugu Branch

Business Organizations In Nigeria – Social Responsiveness

The idea that business has a responsibility other than producing goods and services and profit maximization is not new. According to Pearce and Ribinson (2003) there are three principal reasons why managers should concerned about the social responsible behaviour of their firms.

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First, a company’s right to exist depends on its responsiveness to the external environment. Secondly, federal state and local government threat increased regulation if business does not evolve to meet changing social standards. Third, a responsive corporate social policy may enhance a firm’s long term viability under-scoring the importance of these factors to the firm is the implicit belief that long-run profit maximization is inexorably linked to corporate social responsibility.

Thus, broadly speaking, the concept of social responsibility now embraces the responsibilities of a firm to customers, communities, minorities and other environmentalities. It also includes payment of taxes and other levies to constituted authorities, environmental protection, corporate philanthropy and volunteerism Babashola (1997).

According to Cook and Mencleson (1977), social responsibility is the intelligent and objective concern for the welfare of society which restrains individual and corporate behaviour from ultimately destructive activities, no matter how immediately profitable, and which leads in the direction of positive contributions of human betterment.

Davis and Blomstrom (1980) defined social responsibility as the obligation of decision makers (corporate management) to take actions which protects and improves the welfare of society as a whole, along with their own interest.

It has also been defined as a concept that involves all the activities of an organization in which their limited resources are expanded, appear less economically attractive and viable, but are socially awarding members of the society. Examples include awarding scholarship, financial support for charities, road construction, sinking borecoles and so on Onuoaha (1999).

Based on the emphasized explanations of the social responsibility above, I therefore, give my own point of view as the roles of any business organization (MTN) to execute in favour of the indigenes or its stakeholders where it operates. Today, the above definitions are invalid because the business organizations such as MTN do not embark on social responsibilities. Although, there is no book recorded that the business organizations much embark on social responsibilities but due to the fact that it points to be environmentally friendly, between the business and its stakeholders, therefore, they are expected to respond to social needs of the its stakeholders.

The question which needs to be examined goes in this way “to which extent MTN is “alive” to its responsibilities to its “stakeholders”.

Meanwhile, Mobile telecommunication network has stayed for more than 7yrs in Nigerian with neither contributing to the boosting of the economy nor social duties of its stakeholders. It is expected to have achieved the following social needs that is doing much more for the society but instead their reaction to them are nothing but total failure.

Education: MTN in this function can contribute to the establishment of schools (primary, secondary and tertiary institutions) in Nigeria. It can as well help to fund the schools so as to solidify and establish a good educational background. More responsibilities that mobile telecommunication owed its stakeholders stress on the empowering the schools with donation and equipping of the libraries and laboratories, awarding scholarships to its stakeholders and total response to the research projects. Meanwhile, for the extent mobile telecommunication network is alive in Nigeria, it has never been indulged any these offers given above, after constituting a foundation of trustees board charred by Ambassador Hamzat Almadin while main Oyagbola was the executive director of the foundation. The foundation therefore equipped Unilag research library with computer facilities, powered more than 500 female mechanic, help in powering more less privileged person and physically challenged ones in the society but this package is not enough comparing how long it continues to operate in Nigeria, as well as how much the business organizations makes everybody, monthly and yearly. Moreover, other duties, which expected from their business organization include primary health care contribution ie to help in construction and establishment of health clinics and hospitals being able to provide the clinic and hospitals with drugs and other hospital facilities. The organization equally helps in immunization and disease control and even embark on training of personnels and research grants. Ironically, MTN since it came into existence in Nigeria has never thought of setting plans for those request let alone of executing any of them.

Employment Generation

It goes without saying that MTN has not contributed in the major generator of employment in Nigeria. They should contributed significantly towards developing a skilled workforce for the country through training and retraining programmes but they have vowed to be silently in all this aspects. They only contributed in employing more than 500 female mechanic, help in powering less privileged person and psychically challenged ones in the society but this package is not enough comparing what they are making monthly and yearly.

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The primary motive of the stakeholders for allowing the establishment of business organization especially foreign ones is for them to execute both spaced and human oriented development within the state, of which the employment opportunities are one of them, but MTN has not contributed much more since their arrival into the state etc. (Enugu for example) instead the top workers presently working in the company are all foreigners. This is a total breach of environmental relationship between the network and its stakeholders.

Rural Infrastructure

Rural infrastructure such as roads, bridges, markets. they have to be part of it in providing fund for all these rural infrastructure because they are making use of it but since their arrival they have been exceptional to the improvement of the state, community e.t.c. their only after making huge amount of money monthly and yearly. All these, Mobile telecommunication has not been able to do in the lives of the state, community, society e.t.c to date.


Primary health care contribution that is the health clinics, hospitals, child incubators, boreholes etc. Provision of drugs and other training of personnel and research grants. They have to support in various health institutions in Nigeria (state, community etc) but they been exceptional till date. They don’t care to go any length to make life better for Nigerians. Their mission and vision is just making money forgetting that charitable projects are good for business. That business organization should do much more for the environment etc.


Payment of comensurate tax that is for collaterals etc. It is doubtful that they don’t pay tax in various taxes, duties and rates to the three tiers of government (local, state and federal) which is unlawful because all these are sources of income to the three tiers of government (local, state and federal) for improvement.

1.2 Statement of the Problems

It is doubtful there’s hardly any aspect of the lives of the three tiers of government (local, state and federal) that MTN has touched in over 7years communication excellence. Their concern only just to be making money (profits) monthly and yearly. They have not contributed sufficiently to satisfy the expectation of its stakeholders. Despite the progress that has been made by them, we believed that MTN ignores social responsibilities. If a company’s management consistently ignores social responsibility, the business organization will suffer and eventually fold.

The primary motive of the stakeholders for allowing the establishment of business organization especially foreign ones is for them to execute both spaced and

human orientated development within the three tiers of the government (local, state and federal) but the mobile Telecommunication Network has become exceptional since their arrival. The stakeholders had not experienced any form of development since it was establish thereby breaching the environmental relationship that supposed to have been created within the stakeholders and the mobile telecommunication network.

The top workers presently working in the company are all foreigners, adding that the price for the office rentage is very low compare to how much they generate each month. Secondly, each mask and signboard mounted in every area renders very huge amount of money compare to how much they respond to social issues to its stakeholders since both of them are sources of advertisement for their product, and they are great sources of income.

1.3 Objectives of the Study

The main objective of this study is to examine the extent to which MTN is alive to its responsibilities to the stakeholder’s Specifically, the following are the sub-objectives:

1. To examine the extent MTN is alive to its social response to its stakeholders.

2. To determine the negative and positive effect of social issues render to its stakeholders.

1.4 Research Questions

1. Does mobile telecommunication network respond to social needs of its stakeholders?

2. Does the social issues render influence it’s stakeholders?

1.5 Significance of the Study

The study will be of immense help to Mobile Telecommunications Network. This is because it exposes the various strategies in which MTN should respond to social issues to it’s stakeholders.

The study will also be of great help to students of higher learning in their respective research studies concerning social responsiveness of non-indigenous business organization in Nigeria.

1.6 Scope of the Study

The study focused on social responsiveness of non-indigenous business organization in Nigeria. Specifically, the researcher narrowed it down to Mobile Telecommunication Network Enugu Branch.

1.7 Limitations of the Study

The researcher intends to investigate into the whole non-indigenous business organization but due to some factors such as money, time and scarcity of materials the researcher is limited to study only the Mobile Telecommunications Network.

In addition, getting required data and other information for this study was quite difficult because series of appointment between the researcher and the management were not successful. Again, some of the respondents were reluctant to give out some information they regarded as confidential.



2.1 Introduction

In this chapter, the opinions, views and positions of various scholars and authors we reviewed under the following sub-headings:

2.2 Conceptual framework:

A lot of definitions of social responsiveness by different authors have been put forward. Some of these definitions are wide enough to highlight the actual meaning of this important company tool. Others seem to be too narrow to make a headway. Based on the latter definitions, some of them are not only narrow but also create the impression that stakeholders could be perceived as predicted responsive.

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In it’s most narrow conception by John (1948), social responsiveness is the cumulative response of non-indigenous companies coming into Nigeria to invest in business management administration. In other words, it appears to say that it is a follow up of the social responsibilities of federal government of Nigeria. this response is not far from a positive reaction towards the socio-economic friendly environment being provided by the federal government of Nigeria. It is also a source of encouragement and motivation necessary for non-indigenous companies to trive in Nigeria. For this to be so there are has to be some measures of an economic friendly environment to be provided by the government.

Another comprehensive attempt was put forward by R. Edward Freeman and Daniel R. Gilbert, J.R. (2007) where they defined social responsiveness that business organizations should do much more for the society, State. They said charitable projects can be good for businesses.

2.3 Different Definitions of Business

The term “business” is differently provided. Some see it as the act of buy and selling of goods and services Okafor et al (2002) others describe it as an economic activity. Other say it is an organization that makes profit. The economists conceptualize any exchange transaction that produces profits a business. Boone and Kurts, (1976) in Okafor et al define business in more technical sense. He sees business as “all legal, profit-directed economic and commercial activities that provide goods and services necessary to a nations standards of living”.

The intelligent and objective concern for the welfare of society which restrains individuals and corporate bodies from ultimate destructive activities no matter how immediately profitable and which leads in the direction of positive contributions to human betterment, is social responsibility (Nwachukwu 1988).

The analysis of these definitions by Nwachukwu stressed the importance of being socially responsible both by individuals and organization. This is to say that social responsibility is not limited to business organization but it also extents to individuals.

2.4 Mobile Telecommunication Network; A Profile

Mobile Telecommunication Network was established in that year 2001 by president Olusegun Obasanjo. And it the leading GSM of operator in Nigeria, with 7.6 million subscribers. Mobile Telecommunication Network currently comprises nearly 2000 base stations and 279154 square Km of transmission infrastructure, providing access to approximately 58% of Nigeria’s population. It was establish in the president Olusegun Obasanjo administration, when need for improve communication became imperative as a structure of good governance. Then MTN Nigeria crabbed the opportunity to serve Nigeria with good service when her unified. Access service license (UASL) was approved in 2001 and since then the life of Nigeria has change for good.

The company which has about 4000 base station now, started few base station in Lagos, Abuja Kaduna, Enugu, kano etc. because the base stations were few then, for her to upgrade her network, she employed the services of Harris corporation, a leading global supplier of wireless equipment and services, to build phase I of the Y’ hello Bahn transmission backbone, this phase created largest 4:1 backbone in Nigeria, that addressed the lack of reliable terrestrial transmission links and spanned 3, 400, kilometers across Nigeria.

MTN Nigeria is a group company which has it headquarter in South Africa with Phuthuma Nheleko as president and Ceo of MTN group while Ahmed farroukh is the ceo of MTN Nigeria.

2.5 Summary of Review

From what have been done so far, it is clear that social responsiveness has been variously described as an act how business organizations become aware of and then respond to social issues and subsequently rating the stakeholders to a particular standard. The process of measuring and reporting behaviour and accomplishment for a given period for the purpose of improving to social issues.

Therefore, the purpose of social responsiveness is to examine or determine to what extent of non-indigenous business organization is alive to its responsibilities to its stakeholders.


5.1 Findings

With respect to the researcher’ findings, in chapter four, we made the following findings

a. MTN Network Company Enugu should do much more for society employment quota for the local community where they operate more especially in top position if they have the necessary qualification for the post. When this is done, it will help to improve the image of the company and there will be increased friendly relationship between the company and the general public.

b. The company should engage in given scholarship to the public.

c. The company should form a committee apart from the public relations officer who will be going round to seek the public advice on the areas which they want the company to be socially responsible.

d. The MTN Network company should provide school to the children of their employees.

e. They should provide hospitals to maintain adequate health care of the states, local e.t.c.

5.2 Summary

The topic that has been researched on by the researcher is an interesting and very important one which so many company do not pay much attention to.

Social responsiveness that business should do much more for society. It is services any business organization renders to its environment for which money and materials are spent by the money and for the benefits of the community for which the organization gain nothing usually performed in Nigeria in a charitable manner while in some other, advanced countries, the law usually mandates companies to carry out these responsibilities. The type of services includes; scholarship award, road construction, health care services, donations to charitable homes, community development centers.

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Though some people argue that business organizations should concentrate on their profit motive while forget social responsibility while others argued that every business organization should be interested in the development of the community or environment in which they carry out their business. This point was buttressed by group of people based on the fact that business should not operate in isolation nor does it operate successfully in an unhealthy environment. All these views about social responsive has been reviewed during the literature review of this work. Nevertheless, we have equally seen the areas where MTN Network company Enugu has exhibited or carried out their social responsiveness function and the areas they need to sit up given more attention to.

5.3 Conclusion

This research work social responsiveness of business organization which MTN Network company Enugu was a study had been thoroughly carried out. From the analysis given above, it can be seen that MTN Network company carry out their social responsiveness mainly on its internal environment like the employees, staff welfare services etc. and to support its external environment like the stakeholder, customers, Government, etc while it pays little or not attention to some of the environment which is the most important of all because it is when people have healthy environment that they will be healthy to consume the company’s product which is the determinant of profit to the organization.

Though social responsiveness does not generate immediate return to the company, it usually has long-term benefits to any findings so far made that the company will spring up to action on those areas they are lagging behind in order to maintain the position, which they have attended in the service world.



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Instruction: please fill correctly in the gaps provided against the option of your choice or Indicate your response by ticking (√) in the appropriate options (s) chosen.


1. Sex: (a) Male (b) Female

2. Age bracket: (a) 18-25 (b) 26-33 (c) 34-41

(d) 42-49 (e) 50 and above

3. Marital status: (a) married (b) single

(c) Divorced

4. Educational qualification: (a) FSLC (b) SSCE

(c) OND/diploma (d) first degree (e) 2nd degree and above


5 Have you heard about “social responsiveness”?

(c) Yes (b) No

6 Does your company respond to social issues?

(a) Yes (b) No


7 If Yes, how often is the exercise done in your company to the stakeholders?

(a) Annually (b) Every six month (c) once in 3 months (d) Once a month (e) state any other…………………………………………………………………………………..

8 Do you think the inefficiency in your company’s social responsiveness to stakeholder depends on poor of ineffectiveness of company? Yes No

8.1 Strongly Agreed

8.2 Agreed

8.3 Disagreed

8.4 Strongly Disagreed

9 There any government law guiding social responsiveness of non-indigenous business organization?

(a) Yes (b) No

10 Is it a must that business organization must embark on responding to social issues? (a) Yes (b) No

11 To what extent of your social performance…………..

12 business organization’s inability to meet with its social issues can lead to operations instability

(a)Yes (b) No

13. To what extent have your business organization contributed to social needs of the stakeholders?

Rural infrastructure (a) roads (b) market Bridges

Employment awarding scholarship


Others …………………………………………………………………………………

Business Organizations In Nigeria – Social Responsiveness : A Study Of MTN Enugu Branch

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  1. Kila Emmanuel says:

    As part of your social responsibilities can you sponsor an individual like me for a surgery abroad. I have been diagnosed with cervical spondylosis which causes a lot of pains.Thank you and God bless MTN.

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