Any corporation's business goal is to provide value and incentive to its shareholders. Therefore, profit-oriented corporations or organizations are not a charitable organization although sometimes it is in their direct interest to support charitable activities. Furthermore, sometimes corporations or organizations carry out certain activities that governments should undertake, although they are not government agencies. It is beneficial for the corporations to carry out such socially responsible activities.
Corporate social responsibility (CSR) is defined as categories of economic, legal, ethical and discretionary activities of a business entity as adapted to contribute to the values and expectations of society (Joyner, Payne & Raiborn, 2002; Coldwell, 2000; Grunig, 1979). CSR is also the continuing commitments by any business organization whereby they emphasize the ethical elements in their management and overall organizational structure (Richardson et. al, 1999). At the same time, companies are responsible for national economic development by improving the quality of life of the whole workforce and their families as well (Abbott & Monsen, 1979).
In Namibia, a sustainable developing country, the business environment is typically characterized by powerful business enterprises, a legal environment aimed at ethical behaviours on the part of businesses, and societal expectations that businesses should be more ethical and socially responsible. Along with that, as a developing country the organizations need to be more competitive, therefore, issues of customer service and satisfaction is of great importance. Thus, in decision making processes, companies try to avoid actions that may breach any regulation or negatively impact their reputation in order to avoid consumer dissatisfaction.
This assignment briefly states the history of CSR, a brief company profile on the chosen companies and highlights CSR on the companies as well as the impact of CSR on the community and its benefits on the company itself.
As a group, we've chosen two of Namibia's most well-known companies, namely:
Namibia Breweries limited
A BRIEF HISTORY ON CORPORATE SOCIAL RESPONSIBILITY (CSR)
Corporate Social Responsibility (CSR) refers to clear business practices with respect to ethical values, compliance with legal requirements and respect for economic values. In other words, it is a business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders. These stakeholders include investors, customers, employees, business partners, local communities, the environment and the society at large. The Corporate Social Responsibility is a concept with many practices in which it aims at encouraging companies to be more aware of the impact of their CSR on the rest of society, including their own stakeholders and the environment .Corporate Social Responsibility goes beyond making profits, therefore, companies and stakeholders are responsible for their impact on people and the planet. Increasingly, stakeholders should expect that companies should be more responsible both socially and environmentally in their conduct of their business operations.
According to Bolman & Deal (2008); Kim et al., (2010) the history of Corporate Social Responsibility began many years ago, around 5000 years ago. It began around 1700 BC, when king Hammurabi introduced a code in which builders, innkeepers or farmers were put to death if their negligence caused the death of others or major inconvenience to local citizens. In that time, senators grumbled about the failure of businesses to contribute sufficient taxes to fund their military campaigns. In 1622, shareholders in the Dutch East India Company started issuing pamphlets complaining about management secrecy and self-enrichment. With Industrialisation, the impacts of business on society and the environment introduced an entirely new dimension. By the early 1920s, discussions about the social responsibilities of a business had evolved into what is now recognised as the beginning of the modern CSR movement. According to the Corporate Watch Report (2006) the phrase CSR was introduced in 1953 with the publication of Bowens Social Responsibility of businessmen.
By the 80s and the 90s, CSR was taken into discussion, the first company to implement CSR was Shell in 1998 (Corporate Watch Report, 2006). In 1990 Corporate Social Responsibility was standard in the industry with companies like Price Waterhouse Copper etc. CSR evolved beyond code of conduct and reporting, eventually it started taking initiative in Non-Government Organisations, multi-stakeholders and ethical trading. Although some companies may achieve remarkable efforts with unique Corporate Social Responsibility initiatives, it is difficult to be on the forefront on all aspects of Corporate Social Responsibility means that organisations have moral, ethical and philanthropic responsibilities in addition to their responsibilities to earn a fair return for investors and comply with the law.
According to Jonathan Porrit who is an author, the birth of modern day Corporate Social Responsibility began in the 18th and 19th centuries. In the period leading up to World War 1, as the global free trade boomed and corporate power grew, the whole idea of Corporate Social Responsibility was seen as a distraction. The dominant ideology of the time was all about private self-interest as the best way of serving the public. The year 2000 saw more mergers and acquisitions than any other year in history in November 2000, the International Partners for Progress held a conference in Paris in which they stressed the importance for businesses to adopt socially responsible behaviour, in an effort to more forward towards sustainable local development. The early roots of CSR can be found in the actual business practices of successful companies in the eighteenth century. There are companies in many countries that have adopted a CSR approach to business management for centuries. The current CSR movement is mainly trying to make corporate responsibility a common practice for most companies to create the kind of impact that can make a difference to sustainability of our world and the quality of life of the present and the future generations'. Today, Corporate Social Responsibility is benefiting many stakeholders such as greater use of renewable resources, product safety and quality, etc.
BRIEF HISTORY/PROFILE OF TELECOM NAMIBIA MOBILE (TN MOBILE)
' Telecom Namibia Limited is the national telecommunications operator, established in August 1992 and wholly owned by the Government of the Republic of Namibia. Telecom Namibia is functioning as a commercialized company and as a subsidiary of its parent company, Namibia Post and Telecom Holdings Limited.
' Telecom Namibia is a customer driven company that change telecommunication products and services to the demand of its customers. Telecom Namibia is there to makes customers wants such as fast, reliable and advanced services possible.
' Telecom Namibia runs the largest Digital Telecommunication Network in Namibia.
' The company aims to be Namibia's most preferred, high performance information communication technology service provider of world class standards, to anticipate and understand the telecommunication/ information needs and wants of customers. The company would address those needs and wants through the development of solutions, sales and support of quality electronic voice, data, image, and text services at competitive rates.
WHO IS TN MOBILE?
' Telecom Namibia was first introduced as Cell One and then Leo (after the company took full control of Leo in 2012), it is a mobile telecommunications company in Namibia providing cellular coverage (TN Mobile, 2017). The company was renamed TN Mobile meaning Telecom Namibia Mobile.
' Telecom expanded and upgraded the network to a 4G Lite ( LTE) network with an IP Multimedia System (IMS) core enabling Telecom Namibia to offer Fixed-mobile Convergence (FMC) products, a first for the Namibian market and pre-paid 4G Lite (LTE) devices (TN Mobile, 2017).
According to the Telecom Namibia 2008/9 annual report (2009), the highlights on company CSR are as follows:
Occupational health and safety (OHS)
A healthy and safe working environment enhances organisational performance and also contributes to employee well- being. Telecom Namibia has developed and implemented relevant OHS standards and guidelines aligned to local legislation, best practices and the company's own unique circumstances.
The Telecom Namibia Clinic opens on a daily basis between 8h00 and 10h00. On average, 100 employees visit the clinic on a monthly basis for treatment, which reflects continued use of the in-house facility, thereby positively impacting productivity, as less time is wasted compared to visiting outside GPs.
A medical surveillance programme was introduced for the first time during that year. The objective of the programme is to give the company an understanding of the general health of the workforce and institute holistic integrated health management services to mitigate risks, both the physical and psycho-social, including HIV/AIDS.
HIV/AIDS workplace programme
Since the launch of TN's very own Voluntary Counselling and Testing programme (VCT) in December 2008, 564 employees have since been for HIV/AIDS. The anti-retroviral therapy is available to all employees and their dependants given that they are registered as such on their medical aid and at no cost to employees or their family members.
THE IMPACT OF TELECOM NAMIBIA (TN MOBILE) ON THE COMMUNITY
Telecom Namibia Mobile, also known as TN Mobile, plays a big role in the entire Namibian community in terms of contributing to economic growth, as well as in the entire Namibian education and the rising of the living standards of the people in the country.
Corporate social responsibility (CSR) is fundamental to Telecom Namibia's culture and core values. These commitments drive the company to perform with the highest standards of good governance and ethics to provide products and services that meet the rising expectations of customers and business partners, attract and retain quality employees, provide meaningful support in the communities and improve the social and environmental impacts of the business practices and those of their suppliers.
As one of the largest and most progressive players in the Namibian telecommunication services sector, Telecom Namibia is committed to delivering the best for their customers and shareholders. Sponsorship for the company is about building relationships by connecting with consumers, building brand awareness and extending their business reach. Telecom Namibia's sponsorship strategy allows them to play an integral role supporting various community initiatives. Telecom Namibia focuses its sponsorship participation in the areas of education, women development, sports, health, disaster relief, charity and poverty alleviation, and the provision of telecommunications access to poor communities.
TN Mobile awards bursaries to people with talent and ability who, because of economic circumstances or other barriers such as disability, are prevented from reaching their full educational potential. A bursary from Telecom Namibia covers the cost of tuition, books, monthly allowances, accommodation, meals and travelling.
The Telecom Namibia 2004/2005 annual report states that telecom Namibia sponsored sporting events through cash, other forms of assistance or provision of communication facilities. The major sporting events sponsored were the Telecom Namibia Box 'n Dine organized by the Nestor Tobias Boxing Academy and the men's Gymnastics national championship organized in 2005 under the Namibia Gymnastics Federation (Telecom Namibia, 2005).
According to the Telecom Namibia 2004/2005 annual report (2005) Telecom Namibia also took part in activities that empowered the youths whereby it gave a sponsorship of N$55 000 as an award to Miss Namibia in 2005 which lead to the national beauty queen's (Miss Namibia 2005) decision to act as a Goodwill ambassador for Telecom Namibia Mobile (Telecom Namibia, 2005).
BENEFITS OF CORPORATE SOCIAL RESPONSIBILITY ON TELECOM NAMIBIA (TN MOBILE)
Employees would feel proud of the organization they work for. An employee with a positive attitude towards the company, is less likely to look for a job elsewhere. It is also likely that TN Mobile will receive more job applications because people would want to work for them.
More choice means a better workforce. Because of the high positive impact of CSR on employee wellbeing and motivation, the role of Human Resources in managing CSR projects is significant.
Research shows that a strong record of CSR improves customers' attitude towards the company. If a customer likes the company, he or she will buy more products or services and will be less willing to change to another brand. Business executives seems to believe that CSR activities are giving their firms competitive advantage, primarily due to favourable responses from consumers whereas consumers are to buy more likely from a company that supports and engages in activities that's aimed to improve society.
CSR provides the opportunity to share positive stories online and through traditional media. TN Mobile no longer have to waste money on expensive advertising campaigns. Instead they generate free publicity and benefit from worth of mouth marketing.
A CSR program doesn't have to cost money. On the contrary. If conducted properly TN Mobile can reduce costs through CSR.
TN Mobile reduces costs by:
' More efficient staff hire and retention
' Implementing energy savings programs
' Managing potential risks and liabilities more effectively
' Less investment in traditional advertising
More business opportunities
A CSR program requires an open, outside oriented approach. The business must be in a constant dialogue with customers, suppliers and other parties that affect the organization. Because of continuous interaction with other parties, TN Mobile finds it easy to be know about new business opportunities on first hand basis.
Long term future for TN Mobile
Products and Services
CSR allows TN Mobile to interact with their customers. This helps the company know where their weaknesses lie within their products and services and how to produce a better product and service to their customers.
'Deliver a sustainable society in which business and its stakeholders can prosper in the long term'
THE HISTORY/COMPANY PROFILE OF NAMIBIA BREWERIES LIMITED
According to the Annual Report (2012), Namibia breweries limited was established on the 29 October 1920 and is one of the prominent beverage manufacturing corporations in Namibia and in the south of the African continent. The report further states that in 2010, NBL celebrated 90 years of brewing excellence, and could look back a proud Namibian heritage. It continues to tell that in 1920, the Kronen Brauerei (Swakopmund), the Omaruru brewery, the Klein Windhoek brewery (Windhoek), and the felsenkeller brewery (Windhoek) were acquired by Messers Karl List and Hermann Ohllhaver, who consolidated them to form the south west breweries Ltd. The report further informs that with Namibia's liberation in 1990, south west breweries Ltd changed its current name of Namibia breweries Ltd (NBL).
In May 1996 NBL was itemized on the Namibian stock exchange (NSX) and became a publicly owned company. In 2003, leading drinks company Diageo and Brewer Heineken became NBL's strategic partners. The Annual report (2012) also states that the NBL Company won gold medals during the prestigious Deutsche Landwirtschafts-Gesellschaft awards in 2005, 2007, 2008, 2010, 2011 and in 2012. The executive director H Van der Westhuizen was allotted to the board of directors as the managing director on 02 April 2012. The company has a lot of different ranges that are too many to mention. At that time (2012) the company had 12 non-executive directors. The Annual Report (2012) continues to inform us that NBL also made significant investments in Tafel Lager, which had been on the decline in Namibia according to Van der Westhuizen.
Merchandises produced by NBL are Club Shanty, Tafel Lager, and Windhoek Draught, just to name a few. Some drinks are also being brewed under licences which are Heineken and Amstel Lager and the list continues. Apart from brewing, the company also distribute drinks like Foundry Cider beer brand (February 2012).
HIGHLIGHTS OF THE NAMIBIAN BREWERIES CORPORATE SOCIAL RESPONSIBILITIES
Namibia breweries minimize any negative impacts, while maximizing their contribution towards advancing the communities within which they operate. They fulfil their role in the O&L Group to support a diversity of programs where they strive to be responsible and caring corporate citizens amongst others and their support to national issues such as HIV/AIDS, Cancer, and vulnerable groups like People with Disability, orphans and vulnerable children and the elderly.
Companies such as the Namibian breweries limited decided to partner on an ad-Hoc basis to promote and support activities that promote environmental integrity. Some schools are already involved in the process, through competitions such as the RNF recycle. There are recycling stations equipped with compartments for paper, cans, plastic and glass at several shopping centres in Windhoek, where citizens can place their waste material.
The group is also quick to respond to national disasters such as the floods which affected many Namibians in the northern parts of the country and prompted an immediate response by Namibia Breweries (NBL) as well as Pick n Pay. The company did not only provide employees with relief, but also assisted the Government's Emergency Management Unit with its national relief effort by sponsoring much-needed mosquito nets, blankets and food items, while making equipment available to offer temporary accommodation to those displaced by the floods.
NBL has earned recognition as a leader in promoting environmental preservation within and beyond its operations. In addition to employing cleaner production practices and ranking amongst the top five breweries in its peer group when it comes to managing efficiencies, NBL works with numerous stakeholders in promoting natural resources management in communities and promoting environmental responsibility, in the broader society.
BENEFITS OF CORPORATE SOCIAL RESPONSIBILITY ON THE NAMIB BREWERIES
Namibia breweries limited play a role in reducing alcohol-related harm. This is achieved through education and awareness campaigns that promote the responsible use of alcohol. This is done through their stay cool and enjoy responsibility campaign. Drinking training programs and active involvement in many private sector road safety forum and self-regulating alcohol industry forum (NBL, 2016). The savekidslives campaign with the objective to save children's lives on roads around the world specifically in Namibia. Collected 14821 declarations that were handed over to support the safe mobility of children (NBL, 2016). This works in favour of the safety of all Namibians.
Namibia continues to benefit from NBL on education and youth development through its various initiative that enhance education ranging from support to orphan and vulnerable children, to more than 25 years of support to the schools of visually and hearing impaired (Namibia Beverages Limited, 2016). According to Namibia Beverages Limited (2016) NBL jointed the other companies in the Q&L group to replace the tented classrooms of learners of the Monte Christo project school in Havana Katutura, with contained classrooms in 2016.
Namibia Breweries Limited has also supported the back to school and Stay at school project of the office of the Prime Minister that encourage and support learners from marginalized communities to stay in school and enhance their education. The campaign is said to have reached more than 6 schools and 3500 learners annually. These all efforts made by NBL, benefits the education and still development of the country which is a national priority.
On the heath of the country, NBL partnered on a public private partnership project with the ministry of health and social services that was initiated in march 2014 (Namibia Beverages Limited, 2016). The partnership ensured the distribution of 3.2 million smile condoms to remote areas. NBL also partnered with the Windhoek central hospital department of ophthalmology and the state ophthalmology service of Namibia by sponsoring a Zeiss Visucam Machine which constructs retinal photograph and enhances ophthalmological treatment of many patients (Namibia Beverages Limited, 2016). This provides a better eye care to the country.
Moreover, Namibian Breweries Limited has been a long standing supporter of cancer association of Namibia and remains committed to enhancing the lives of Namibians through awareness, prevention, early detection and treatment of cancer patients.
On environmental support, NBL provided N$1000 000 to reward people with information that lead to the prosecution and conviction of rhino poachers in the country (Namibia Beverages Limited, 2016). In addition to rewards, NBL support awareness raising initiatives aimed at changing behaviours and saving rhinos as well as other species, while also to foster a greater appreciation to wildlife and general environmental preservation '(Namibia Beverages Limited, 2016).
Rhino poaching has become a major concern in Namibia as the country has the second largest population of black rhinos in the world and Namibia is one of the preferred tourist destination in Africa. Therefore, having these initiatives that protect rhinos attract continuous tourism in Namibia and it will lead an increase in the number of people employed in the tourism sector.
IMPACT OF CORPORATE SOCIAL RESPONSIBILITY ON THE COMMUNITY BY NAMIB BREWERIES
This picture represents one of the positive impacts of social corporate responsibility on the community by Namib Breweries. Namibia Breweries sponsor hospital with N$100,000 cheque.
Corporate social responsibility is committed to improve the well-being of the community through discretionary business practices and contributions of corporate resources (Chakraborty, 2010).
According to the annual report of Namibia Breweries, the company played a big role on benefiting the community.
Caring for the community (NBL)
NBL (Namibia Breweries Limited) crowned the second annual Windhoek Lager Ambassador as stated in the annual report. This competition not only celebrates Namibians who have made a positive contribution to the society, it also ensures that each month, a donation charity that enhance citizens' lives receives a charitable donation to further their objectives.
Amongst the project that benefited during the year, were the Dr. Helena Ndume Eye Clinics, which conducted eye operation to restore sight for underprivileged Namibians, and basic feeding projects such as helping hands soup Kitchen , and Organization for Empowerment widows/widowers and Orphans of HIV and AIDs in Namibia. Seven (2012) said that Windhoek Draught brand also embraced a strong element of giving back to the community. A charity which trains unemployed men and gives them access to the job market, received an N$250,000 donations to further their skills development programs.
Another positive impact of NBL corporate social responsibility on the community is that NBL provide food production on the community such as the one they hosted in Oshitemo initiative in the Okavango Region to promote food production and community volunteerism. NBL also support the Tusano program for people living with HIV by sponsoring water installation works at 14 project sites, thus assisting beneficiaries to enhance food productions through agriculture.
Furthermore, NBL continues to alleviate the plight of orphans and vulnerable children through its role as a business partner the Dr. Christina Swart-Opperman AIDS orphan foundation Trust which provide children in various parts of the country with necessities such as food, shelter and clothing (Hendrick, 2012).
In addition, Corporate Social Responsibility mostly have positive impacts on the society such as community projects. 'Those that the company the played a significant role or provided substantial support for. These include civic and cultural programs, youth activities, students and social activities and local earth programs' (Boone, 1984).
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