Marketing Ethics and Social Responsibility in Telecommunication Industry - Literature review Example

 Title: Marketing Ethics and Social Responsibility / Telecommunication industry Table of Contents Title Page 1 Introduction 3 Marketing Ethics 3 Social Responsibility 4 The Telecommunication Industry in Kuwait 5 Conclusion 10 List of References 11 Introduction Ethics in business is a long concept that has its history dating back in the early 1970s according to available published records. In today’s economic climate, it is emerging that most businesses are adopting the themes of transparency, trust, confidence and comparability in building responsible business practices (William, 2010). Similarly, Laczniak et al (2007) have evidently explained that businesses cannot be separated from the societies and communities in which they operate if they must survive. This argument is found resident in Zain, a Kuwait’s telecommunications company that is committed to the social and economic development of the communities in which it operates as explained by William (2010). In regards to this reason, Cetina and Preda (2005) argue that no business can logically continue generating wealth surrounded by a failed society. As observed from Zain’s CSR strategy, the integration of the four pillars of workplace, community, marketplace and environment must be re-emphasized for a profitable business undertaking (William, 2010). This essay concentrates on the concepts of marketing ethics and social responsibility in relation to the telecommunications industry. Marketing Ethics Research work has reported that the concept of marketing ethics is taken from the idea of business ethics. Laczniak et al (2007) have explained that “business ethics attempts to examine ethical principles and moral problems that arise in a business environment”. Marcoux (2009) further argues that the “concept applies to all aspects of business conduct, including that of the individuals and the business organizations as a whole”. This argument is similarly supported by what is formulated as zain’s CSR mission of guiding and streamlining the company’s business conduct in line with social and environmental requirements (William, 2010). In a nutshell, Cetina and Preda (2005) state that “ethics in marketing deals with the principles, values and ideals by which the marketing function ought to operate”. It is in the views of researchers that marketing ethics has become another very competitive field in the world of business. Social Responsibility The term social responsibility has been referred by a variety of names ranging from corporate responsibility, corporate citizenship, responsible business and sustainable responsible business just to mention only but a few (William, 2010). By whichever name is used, social responsibility is considered a ‘form of corporate self-regulation integrated into a business model’ (Marcoux, 2009). Simply put, CSR has been identified as the new business reality particularly in the telecommunications industry that must be embraced in an effort to guarantee sustainable success and prosperity for all (Ulrich, 2008). In ideal situations, much of the accessed research work has variously indicated that social responsibility policy can effectively function as “a built-in, self-regulating mechanism whereby business is capable of monitoring and ensuring its adherence to law, ethical standards, and international norms” (Ulrich, 2008). This can be seen in Zain Company which is committed to corporate social responsibility by advocating transparency, creating corruption-free atmosphere, concerned with education and the welfare of the poor (William, 2010). The telecommunications industry in Kuwait The telecommunications industry in the Middle East and Kuwait in particular is shown to be very stable under the management of Telecommunications Regulatory Authority (TRA) established sometimes in 2003. According to research findings by William (2010), the authority is shown to have been “actively engaged in regulating the ICT market and driving the sector’s growth to fulfill the vision of creating and sustaining a globally recognized and competitive ICT sector in the wider Middle East region”. It is further projected that the ICT sector in the region is expected to realize substantial growth given the current TRA’s leadership strategies. Reports by William (2010) indicate that Kuwait in particular has been ranked among the top three countries globally committed in prioritizing ICT programs and strategies. Specific cases abide in the Telecom market trends illustrated by Zain’s vision of creating a regional and global presence in business as well as ensuring community and environmental development in the spirit of CRS (William, 2010). Similarly, the government in Kuwait has been in the frontline in regulating the operations of industry players. This has been made possible by initially outlining strategic objectives through TRA that need to be met. These common objectives include licensing of telecommunications services, developing of the community as a whole while at the same preserving the environment. Documented evidence to this effect indicates that zain for example is committed to minimizing its environmental impact by working towards a reduced energy consumption and waste production strategy (Cetina and Preda, 2005). A major step is realized in the government’s commitment to restrict internet access for none compliant companies like the blackberry and smart phone users (William, 2010). Studies show that users of these phones have been operating in contravention of TRA’s regulations on content and environmental issues (William, 2010). This has resulted in the banning of a number of websites for the concerned companies in line with the region’s ICT policy as reported by (Marcoux, 2009). A strategic report by William (2010) sampling commends from company executives about corporate responsibility programs explain that they all unanimously believed that these programs can positively impact their business and help achieve strategic goals. In their views, investing in corporate responsibility programs by companies is beneficial both to the business itself and the society at large. Reports have variously demonstrated that zain has noticed this provision and taken the necessary steps. Documentary evidence to support this claim is provided by Cetina and Preda (2005) who stresses that Zain is fully committed to uplifting the social and economic development of the communities in it area of operation. A reliable source from within the company indicates that the company provides an environment in which CSR can succeed with no problems (William, 2010). In addition to the above explanation, zain has also been reported to be spending a lot of money on ethical staff training aimed at equipping them with skills necessary to meet the needs of its large base of expatriate staff and stop the high turnover rate experienced in today’s businesses (Ulrich, 2008). Moreover, further reports have demonstrated that zain is committed to address even more basic matters like workers’ health and safety as explained by William (2010). In view of this illustration, several research findings have shown that a large number of companies are afraid of spending money in societal affairs. In fact most of them are reported to be keeping their workers inadequately informed about elementary safety issues in fear of rebellion from the workers themselves. A case in point is provided by Marcoux (2009) who claims that zain gives priority to the well being of their employees by first of all maintaining a safe workplace. This objective is achieved by ensuring that there are no obvious risks in the workplace and equipping all employees with proper safety skills. Moreover, reports by William (2010) indicate that Zain Company has put in place suitable methods to prevent common workplace accidents and ailments from occurring. Some of these measures include the opening of a functional “fully-equipped, on-site health clinic that treats employees and their families while referring more serious cases to specialists in advanced hospitals in the country” (William, 2010). Further reports reveal that “one of Zain’s CSR objectives for 2009 is to begin implementing other on-site clinics throughout the region of operation” (William, 2010). In spite of the seemingly diversified views regarding the institution of social responsibility, William in his study of 2010 has convincingly illustrated that there has been some redefinition of this concept over the years in connection to marketing function. In line with this argument, it is further reported that experts in the industry have been in agreement that social responsibility is essentially aimed at giving support to ‘an organization’s mission and vision as well as a guide to what the company stands for and will recommend to its consumers’ (Marcoux, 2009). From this realization, an approach for social responsibility in corporations that is becoming more widely accepted is the community-based development approach (Cetina and Preda, 2005). In this approach, researchers report that corporations work with local communities with the express intention of bettering each other. A working example is found strongly embedded in the sponsorship and support programs started by zain in supporting many cultural, sports and human rights activities as pointed out by William (2010). Taking for example sports, it is reported “that Zain formed a basketball club in Jordan in 2002 with the sole aim of interacting with the community and promote the company in the country and the region” (William, 2010). This exercise later resulted in major sponsorships in world’s famous sports like football, tennis, golf and athletics, just to mention but only a few as cited in William (2010). In the same manner, zain has been found to be engaged in promoting cultural activities in regions where it operates particularly across Africa and the Middle East (William, 2010). William (2010) cites the Iraqi Symphony Orchestra as one example Zain’s efforts to support cultural development. The issue of human rights has been a major concern of Zain Company in attempting to incorporate CSR in business strategies. A recent study has revealed that Zain has been advocating strongly against child labor drawing much strength from major support groups. Another area where corporate social responsibility is in application in today’s telecommunications industry is in education. It is demonstrated by numerous study findings that many projects have been started across the Middle East and Africa in education in regards to Corporate Social Responsibility (Marcoux, 2009). In Africa for instance, published works show that Zain’s corporate social responsibility programs have concentrated on education by initiating certain projects like the ‘Build Our Nation’ program in Tanzania and the popular Zain Africa Challenge television show (Marcoux, 2009). Through these projects, zain has been able to support the provision of education by making donations in the excess of several million US dollars. In particular, zain has been very active in incorporating CSR initiatives in education in Kuwait by collaborating with Cisco and Kuwait University to train several instructors from schools across the country as explained by William (2010). An earlier mentioned area of CSR by zain is in health where studies show that the company has made increasingly tangible donations and contributions to the society particularly the MTC Hospital which is affiliated to it according to William (2010). The initiatives started by zain in this area include the provision of safe drinking water to the community. Additionally, reports show that most of Zain operations have been on charity basis in the specific countries they operate in. The foregoing clearly demonstrates the monumental achievements of zain Company in CSR considering its short history since1983 by which time it was known as MTC Vodafone (Laczniak et al, 2007). Over the years, zain has developed a remarkable group profile by using a catch phrase “zain, a wonderful world” which has gained a lot of popularity globally. Through this profile, the telecommunications company has been able to “improve people’s lives by working hand in hand with the community in addition to providing exceptional telecommunication services” (William, 2010). Conclusions From the text above, it has emerged that corporate social responsibility must put into consideration the four pillars as set out by zain including the workplace, community, marketplace and the environment (William, 2010). It has been argued by Laczniak et al (2007) that a business must bear “responsibilities for the impact of its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere”. Moreover, available studies stipulate that businesses keen on focusing on social responsibility are capable of promoting the society through community growth and development as stated by Cetina and Preda (2005). Similarly, Marcoux (2009) adds that these businesses concerned with the welfare of the community within which they operate would willingly attempt to remove all the practices that can endanger the public as a whole regardless of any authority involved. In connection to the examples enumerated in the text, it is the author’s contention that they form the basic principles of social responsibility as applied in marketing, a concept indicated to have been conceived in the early 1970s when most of the present day multinational corporations came to being (Ulrich, 2008). From this point onwards, published research works have demonstrated that marketing ethics and social responsibility have always been considered together. List of References Cetina, K and Preda, A., 2005. The sociology of financial markets. Oxford, Oxford University Press. Laczniak, et al., 2007. “An ethical basis for relationship marketing: a virtue ethics perspective”. European Journal of Marketing 41(1&2): 37–57. Marcoux, A., 2009. Business-Focused Business Ethics: Normative Theory and Business Ethics. J. Smith. Plymouth Rowman & Littlefield: 17–34. Ulrich, P., 2008. Integrative Economic Ethics: Foundations of a Civilized Market Economy. Cambridge, Cambridge University Press. William, S., 2010. How to Govern Corporations So They Serve the Public Good: A Theory of Corporate Governance Emergence, New York: Edwin Mellen. Read More