Corporate Social Responsibility at United Bank for Africa Plc (UBA) & GLO Mobile

Policies and strategies

Corporate Social Responsibility at Glo Mobile

Conclusion
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NEW MANAGEMENT APPROACHES IN AFRICA

The cultural and managerial traits described in previous sections give an indication of the complexity in transforming western models to other regions in the world, as for example to Africa, it seems to be an increased awareness of the need for management and institutional systems that are more in balance with cultural roots and traditions. A number of new approaches have, and are being developed in Africa.

African renaissance
The African Renaissance is a concept popularized by south African Thabo Mabeki in which the African people and nations are called upon to solve the many problems troubling the African continent. The concept reached its height in the lat 1990s and the phrase was first used in 1994 in South African following the first democratic election after the end of apartheid.
Jackson describes in his book “Managemtn and Change in Africa-a crosscultural perspective” the concepts as an “emerging, ideal type which provides a view of what african can offer global management generally” (Jackson 2004). The key values can be summarized as follows:

Sharing

The value of people helping each other has resulted from poverty and people’s need for security. The value is a result of a network of social obligations based primarily on kinship.

Defence to Rank

The value of deference to rank its not only to existing power distance within organizations. Traditional rulers had to earn respect and ruled by consensus, even though they had inherited their titles. For a person to take his/her proper place in the social scale is regarded as an important aspect of the virtue of humanity.

Sanctity of commitment
Commitment and mutual obligations derives from group pressures to meet what one ha promised and to confirm to social expectations.

Regard for compromise and consensus
This value can be viewed as the maintenance of harmany within the social context but also qualifies a deference to rank. The chief of the tribe had to live the values of his community in an exemplary way. Since the people were strongly represented with a duty to attend court hearings and all had a responsibility to each other. As a result of this collective responsibility everyone had a right to question in open court. The concept of openness is an important value.

Good social and personal Relations

High levels of humanism, collective responsibility, community self-help and mutual assistance are values within many African societies. Jeckson (2004) labels the leadership orientation of African renaissance management systems as consensus. This is not because leadership in traditional African societies was mainly consensus but also because there are values in African leadership embracing harmony in all part of life as well as with the community and stakeholders.

In Nigeria the evolution of new management approach CSR, as change the face of corporate social responsibility to an extent that it has began to assist in expanding the frontiers of the respect of human rights. Examples of organization with formal CSR strategies in Nigeria:

.         oceanic Bank Int’l Plc
.         united bank for Africa Plc
.         Celtel (now Zain)
.         GloMobile
.         Astro Soccer Nigeria Limited.

NGOs working on CSR in Nigeria
The new Nigeria foundation

Wangonet

SMEs without formal CSR practices

A3 & O Media
Orun Energy limited

Corporate Social Responsibility at United Bank for Africa Plc (UBA) & GLO Mobile (As Case Study)

United Bank for Africa Plc (UBA) is the product of the merger of nigeria’s third and fifth largest banks, namely the old UBA and the Standard Trust Bank Pls (STB) respectively, and a subsequent acquisition of the Continental Bank limited (CTB). The union emerged as the first corporate combination in the history of Nigerian banking.

CSR Definition
UBA has adopted the CSR definition of the World Business council for sustainable Development.

Corporate Social Responsibility is the commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workface and their families as well as of the local community and society at large.”

Drivers for CSR
The main drivers for UBA’s CSR work are brand building and the desire to give back to society. The CSR of UBA is in line with its mission statement “to be a role model for African business by creating superior value for all our stakeholders, abiding by the utmost professional and ethickal standards”.

The creation of the UBA Foundation is in line with its mission statement.

The benefits from working on CSR are:
*      Closer relationships with community leaders and officials
*      Greater customer loyalty
*      Increased positive name recognition and brand awareness
*      Leadership development for employees via volunteering
*      Enhanced reputation and standing in the community
*      Beneficial business-to business relationship with non profits
*      A reservoir of goodwill within the community that can serve a company in a time of crisis.
*      Improved internet communications and sense of common purpose
*      Exposure to staff to new ideas, points of views and important social movements.

Policies and strategies

UBA has not yet formalized its UBA foundation and the CSR agenda is at present being organized and institutionalized. Today there are employees in the foundation but the objective is to recruit additional employees in the near future.

The foundation is a grant making and operational foundation, and the structure is presented as below:

*        Operational in that some of the projects are operated by UBA
foundation employees.
*        Grant making in that, there are some projects that fall under
Special Projects which UBA support financially and to which a proportion of the yearly budget is allocated.
*        The remaining three areas are Education, Economic Empowerment and Envrionment.

It should be noted that 1 percent of UBA profit before tax is designated for the UBA foundation.

CSR practices

UBA has a number of focus areas for its CSR agenda and constantly tries to focus on the basic needs of society, reaching as many people as possible through its CSR initiatives. The objectives is to target all parts of the country with its CSR activities but UBA is presently using as a test area for its projects and initiatives. Regarding the internal CSR work the focus of the foundation is at present to gain commitment and understanding ofor the CSR initiatives.

Some UBAs external CSR initiatives are presented below:

Micro credits – UBA has initiated micro credits to its customers. The Nigerian government has also introduced a micro credit finance programme but interest rates are still as high as 36 percent. The objectives fo UBA is therefore to give the opportunity for people to take a loan without interest or at least with very low interest rates.

Scholarships- UBA also runs a scholarchip programmes. The objectives is for 108 pupils to be exanimate each year through scholarships. UBA finds it important that the pupils don’t feel like “second hand” students because of the scholarships. Therefore UBA has also inmtroduced a grant that is being offered to the school in combinations with the scholarship that makes the scholarship beneficial not only for the student but also for the school.

Environmental - UBA also works intensively on waste management and environmental issues. For example, a project has been run with the purpose of installing refuse collections centers as well as offering training for people to become refuse collectors. The vision is to create an environment movement where all companies, large and small, contribute with something in the work of improving the environment.

Corporate Social Responsibility at Glo Mobile
The company has a holistic view on CSR and regard sustainability as a strategic matter. The company strives to become a role model for other Nigerian companies.

CSR organization
The CSR agenda is run by the Glo Mobile foundation and the organization is at present building up its formal structure for CSR.

CSR practice
Glo mobile first CSR initiative stemmed from the platform on which it launched its operations with per second Billing. Any GSM network operating on per Minute Billing stands a good chance of making more returns on investment than a network operfating on the per second Billing Platform. Glo Mobile decided to make more returns on its goodwill with its subscribers and  the generality of the people of the nation over an immediate return on investment.

The CSR strategy of Glo Mobile has set up till now had a strong focus on sports sponsoring and to date it has committed almost two billion naira to sports alone. Beginning with the exclusive partnership with the organizing committee of the 8th All African games, Glo Mobile committed over 100 million naira in cash and over 400 million in equipment and infrastructure to the games. Glo Mobile’s support for sports has also been extended to Golf, Polo and Squash. The biggest beneficiary of the company’s philanthrophy is soccer and sponsorship.

Glo Mobile has also initiated an involving partnership with the National Poverty Eradications Programme (NAPEP), to help unemployed youths established call centres. The pilot scheme has involved the distribution of handsets, tables, chairs and parasols for 500 call centres and this has been extended to more beneficiaries.

Ultimately, the beneficiaries will be transformed to operators of mini business s\centres that will offer telephone, fax and internet services. There has also been a major partnership with the Niger Delta Development Commission (NDDC) towards the eradication of poverty in the region. The programme, opportunities for youths in the region by helping them to establish their own commercial phone centres.

Glo Mobile also support the annual Nigerian Institute of Management competition for young managers in Nigeria.

CONCLUSION
Before concluding this paper, I must refer to two foundations which have exemplified good corporate respoinsibility by individuals/organization.

Carnegie Foundation
Founded by Andrew Carnege in 1905 but chartered in 1906 by the congress.

Bill and Mellinda Gates Foundation – focusing on health, agric and arts – set up in 1999. it has 290 Billion USD endownment, which includes substantial donation from Warren Buffet.

M O Ibrahim Foundation
Gives 5 million USD to ex African leaders Head of States for good governance in their respective centre.

In view of the foregoing, with good CSR police and implementations by the various companies operating in Nigeria and in additin with proper policy guideline and legialation by government, the frontiers of respect and protection of the human rights of citizens of Nigeria as enshrined in the Constitution will be guaranteed.

Thank you

Dele Kelvin Oye, Esq.   

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