Chapter One

NAME CAVEN

SURNAME MASUKU

PROGRAM MASTERS OF SCIENCE IN MEDIA AND SOCIETY STUDIES

MODULE DISSERTATION

MODULE CODE MMSS801

SUPERVISOR MUGARI

TOPIC:
A COMPARATIVE ASSESSMENT OF THE APPLICATION OF CORPORATE SOCIAL PESPONSIBILITY APPROACH IN PR PRACTICE AT ECONET AND NRZ

1.0 INTRODUCTION
This study seeks to look into the application of corporate social responsibility by National Railways of Zimbabwe (NRZ) and Econet’s PR department. Corporate social responsibility which is sometimes called corporate social investment reflects excellent PR that is talked about by Grunig (2001). Corporate social responsibility is the continuing commitment by business to behave ethical and contribute to economic development while improving the quality of life of the workforce and their families as ell as of the local community and society at large www.mallenbaker.net/csr. Corporate social responsibility is about capacity building for sustainable livelihoods. It respected cultural differences and finds the business opportunities in building the skills of employees, the community and the government. In short corporate social responsibility is about business organizations giving back to society. Corporate social responsibility have six salient aspects that is community involvement, development and investment, involvement and respect for diverse cultures and disadvantaged people, corporate philanthropy and employee volunteering, customer satisfaction and adherence to principles of fair competition, anti-bribery and anti-corruption measures, accountability, transparency and performance reporting and supplier relations, for both domestic and international supply chains. http://www.mallenbaker.net/csr/definition.php. NRZ is a national rail transport company which was formed by the British South Africa Company in terms of Royal Charter granted to it on October 1889. NRZ has various programs that it conducts to assist the community in Zimbabwe which will be compared with the CSR programs conducted by ECONET, a wireless company privately owned by Strive Masiyiwa. Econet is the largest wireless company in Zimbabwe which is made up of Econet Wireless Holding Limited with five merged departments namely Buddie, Libertie, Business partner, TXT and YourFone. htpp:www.econet.co.zw/inside.aspx?paid=1. Econet Wireless Holding Limited has many corporate programs that it uses to plough back to the community that it serves. There are five major programs that are conducted by Econet Holding Limited for social responsibility across the country namely; Joshua Mqabuko Nkomo Scholarship (JNSF), Capernaum Trust, Employment Creation, Sports Sponsorships and HIV/AIDS. The two mentioned above companies based in Zimbabwe will be compared on their approach to corporate social responsibility as a communication strategy to enhance excellent PR. The research will then analyze comparatively how the internal and external public benefits from the corporate social responsibility programs run by NRZ and Econet Wireless Holding Limited.

1.BACKGROUNG OF THE STUDY
The history of Corporate Social Responsibility (CSR) is as old as trade and business itself. Freedman (1962) says that; CSR as an issue has been around since commerce began in the ninetieth Century. Kotler and Lee (2005:5) state that according to KPMG, a US professional service firm, a 2002 survey of the Global Fortune top 2005 companies indicated a continued increase in a number of American companies reporting on corporate responsibility in 1998. In 2002, 45 percent of these companies issue environmental, social, or sustainability reports compared with 35 percent in their 1999 survey.

One milestone Smith (2005) identified issues that contributed to the evolution of “New Corporate Philanthropy” as the US Supreme Court decision in the 1950’s that removed legal restriction and unwritten codes which up to that time had restricted corporate contributions involvement in social issues. One of the next milestone Smith (2005) cited was the Exxon Valdez Oil Spill in 1989, which brought into serious question the philanthropy of the 1970 and 1980’s, where corporations tended to support social issues least associated with their line of business. A final milestone that Smith identified was the emergence and visibility of model in the 1990’s such as one used at AT & T that proposed a new view of the role of corporate foundation and its relationship to the for profit arm.

Prior to 1990’s, decision regarding the selection of social issues to support tended to be made based on themes reflecting emerging pressures for “doing good to look good”. Corporations would commonly establish, follow, and report on a fixed annual budget for giving, sometimes tied to revenues or pretex meaning. Funds were allocated to as many organizations as possible, reflecting a perception that this would satisfy the most constituent group and create the most visibility for philanthropic efforts(Kotler and Lee 2005:5) decisions regarding issues to support and organizations to sponsor were also more heavily influenced by preferences and wishes of senior management and directors of boards than the needs to support strategic business goals and objectives.

Econet Wireless Holding Limited is the cellular network operator and main subsidiary of Zimbabwe stock Exchange-listed Econet Wireless Holding Limited (EWH), a company with interests in telecommunications and other sectors of the Zimbabwean economy.
Econet is the largest telecommunications company in Zimbabwe, with an overall market share of over 61 percent total mobile sector, and a cellular subscriber base of 1.2 million as at February 2009, the latest published figures available. Econet is currently upgrading its network capacity towards 2.5 million, and has already secured funding for a further upgrade to five million.
The company’s network was launched on 10th July 1998 and the holding company listed on 17th September 1998, and is now one of the largest listed companies on the Zimbabwe Stock Exchange (ZSE) in terms of market capitalization.

To remain at the top, the company relentlessly pursues innovative strategies and constantly grows its knowledge base with uncompromising passion for excellence. Its main products include pre and post paid cellular service that are uniquely branded for easy convenience and instantly recognition.

In line with its Christian-based vision and mission, Econet has a broad strategy for social and community development called “Econet in the Community” through which the company supports diverse range of charitable cause, which includes children orphaned by HIV/AIDS, religious and church organizations, as ell as an annual scholarship program that provides financial assistance to the bright students selected from schools in the country’s ten provinces under the Joshua Nkomo Scholarship Fund (JNSF).
Furthermore, other companies under Econet Wireless Holding Limited (EWH) are YourFone, the largest public pay phone operator in Zimbabwe, with a presence in all major cities as well as in the larger commercial agricultural centers. In addition to owing its own payphone shops, Econet has franchised the concept under which the pay phones are owned by small business people who have assumed a significant role in the economy.

Also in the group is Ecoweb, the largest independent internet service provider in Zimbabwe, serving both corporate and individual dial-up customers, as well as operating internet cafes across the country and at Econet retail outlets; Transaction Processing Systems, a leading provider of financial transaction switching, point of sale and value added support services that is exploiting the convergence of banking, information technology and telecommunications, and Econet capital, the vehicle through which the group invested in various sectors of the economy and also has significant shareholding in listed companies, Kingdom Financial Holdings Limited and First Mutual Limited.

National Railways of Zimbabwe (NRZ) grew out of a number of different companies most of which were originally formed by the British South Africa Company (BSAC) in terms of the Royal Charter granted to it on October 29 1889. Over the years these underwent amalgamations, change of ownership. NRZ is controlled by the government of Zimbabwe and has programs that are meant to benefit the community.(National Railways of Zimbabwe : Historic Milestone)
The development of the Railways in Zimbabwe was directed by several considerations, among which was the need to serve the towns, mines and farms which were fast being established before the turn of the century, and to link the landlocked country with sea-ports in Mozambique and South Africa.(National Railways of Zimbabwe 1997:6)

Line construction began from Fontesvilla, 56 km inland from Beira, to Umtali (Mutare) in September 1892, and from Vryburg in the Cape Province to Bulawayo in may 1893. The Bulawayo line was completed in October 1897 and the Mutare line in February 1898. The link between Salisbury (Harare) and Bulawayo was finally completed in October 1902 after initial construction was brought to a halt by the outbreak of the Anglo-Boer War in October 1899, when materials had to be brought in on the Beira line.

The next stage was the line northwards from Bulawayo, which began in 1903, crossed the Zambezi River at Victoria Falls in September 1905 and reached the Congo border in December 1909.
For several years this whole system was operated by the Mashonaland Railway Company under the title Beira and Mashonaland and Rhodesia railways, but on 1 October 1936 Rhodesia Railways Limited became the owner of the hole railway system in Zimbabwe and Zambia as well as the Vryburg-Bulawayo section. The line from Vryburg to Ramathlabama on the Botswana border was acquired by South African Railways in December 1959.
On 1 April 1947 the then Rhodesian Government acquired the assets of Rhodesia Railways Limited and on 1 November 1949 the undertaking became a statutory body known as Rhodesia Railways. On 1 July 1967 the system was divided at the Victoria Falls bridge, with Zambia Railways in the north and Rhodesia railways in the south. (Baxter ad Turner 1967)
Rhodesia Railways was redesigned Zimbabwe Rhodesia Railways on 1 June 1979 and finally National Railways of Zimbabwe on 1 may 1980 soon after the attainment of national independency (Bolze 1968).

Therefore ranging from the background of NRZ and Econet it is therefore important to give a comparative approach in the manner in which there are involved in corporate social responsibility. This study looked at the social assistance that NRZ and Econet are doing to their employee and to the ordinary citizens of Zimbabwe. Corporate social responsibility is a reflection of excellent PR practice by PR departments from big organizations in giving back to the community. Econet is a wireless communications organization which uses new technology and has spread to seven countries, while NRZ is an organization that have been operating for more than a century. It is therefore interesting to inquire how their PR department approach and apply excellent PR through corporate social responsibility.

1.2 Research Problem

This research seek to study the extent that NRZ and Econet applies and approach the issue of corporate social responsibility in their PR department to enhance excellent PR. Corporate social responsibility is one of the key issues that PR departments should fully implement in order to maintain a good rapport with the employees as internal public and the community as the external public. The study seek to assess comparatively how NRZ’s approach to corporate social responsibility differs with that of Econet Wireless Holding to create a mutual understanding with both the internal and external public.
1.3 Research questions
1. Are there any Corporate Social responsibility programs at Econet and NRZ that caters for the internal and external public?
2. To what extent do PR departments at Econet and NRZ practice excellent PR?
3. How do Public relations departments from Econet and NRZ enhance corporate social responsibility?
4. Which department at Econet and NRZ is directly responsible for implementing CSR programs?
5. Do PR departments at Econet and NRZ conduct researches that meet the needs of their publics?
6. What are the differences of the application of corporate social responsibility by PR departments at Econet and NRZ?

1.4 Objectives of the study
This study undertakes to contribute to the literature on excellent Public relations practice by local corporate organization such as Econet and NRZ that have international recognition by.
Establishing the organizations and functions of PR in meeting the demands of their internal and external publics.
Assess the programs that capture social responsibility by Econet and NRZ
Establish the objectives and relative importance of PR departments and activities at Econet and NRZ in maintaining excellent PR
Identify the modern technologies used by the PR department at Econet and NRZ that fosters reciprocity with their publics
To add to the body of knowledge about the importance of corporate social responsibility in modern practice of PR for the prosperity of the business.
To establish the importance of reciprocity with the publics through corporate social responsibility as excellent PR.
To indicate the importance of PR departments in bigger organization in building the image and reputation of an organization


1.5 Assumptions
The following basic assumptions have been made;
That respondents from Econet and NRZ PR departments would be without any reservations, willing to give their opinion and respond effectively to interview questions when asked to do so
Both organizations under study will give true information about their PR department operation towards meeting the needs of external and internal public
Econet and NRZ PR departments are in the forefront to foster corporate social responsibility.

1.6 Justification of the study
Most research conducted has been looking at the role of public relations in big organizations and how public relations and marketing departments are integrated. Nothing much from previous studies looked at the implementation of corporate social responsibility (CSR). It is salient to look at the effort exerted by the local organization PR department to assist their publics in order to create mutual understanding and goodwill. The study of this type is for the first time to be conducted and seek to assess the performance of NRZ and Econet in taking care of their publics as effective PR practice. The negative and positive impact of practicing CSR by NRZ and Econet assist the study to assess how much ground have been covered in take care of the public. Also to be noted here are the challenges that the organization encounters to fully implement CSR.
The research can be of utmost importance to highlight the weaknesses of the PR departments of corporate organization in their attempt to practice effectively to boost the image and reputation of the organization. The study indicates the area of concern that corporate organizations ignore in dealing with their public. Again the study will enable local corporate organization to improve their service delivery to the publics and to include them whenever they are making decision. Corporate social responsibility can be full implement after research. The study will assess as to whether CSR programs done by NRZ and Econet are derived from the needs of the public. CSR is effective communication which can maintain lasting relationships with various stakeholders. Studies conducted by Kotler and Lee (1995) in US are of paramount importance since they will indicate the areas which PR department from local organizations are lacking. Therefore the study highlights the roles that corporate organization should play in assist its public and community to develop. Again the research seek to create an awareness to the roles of PR which in most corporate organizations is limited to in house keeping.

1.7 Delimitation of the study
The study focuses on the differences and similarities of the application of corporate social responsibility in PR practice at Econet and NRZ. Public relations managers and their teams were approached by the researcher for interviews. The investigation is limited to Econet and NRZ corporate social responsibility programs. At list eight people from PR departments from Econet and NRZ are used as a sample to elicit data. However, limiting the interviews to few people from PR department causes bias. Narrowing the study to NRZ and Econet do not give a true picture to all corporate organization that operate local since these organizations have different structure and operation. In house publications by NRZ and Econet assisted the researcher to tell how much ground has been covered by the two organizations in corporate social responsibility issues.

1.8 Limitation of the study

Best and Khan (1993) define limitation as :
“Conditions beyond the control of the researcher that may place restrictions on the conclusions of the study and their application to other situations’
The most significant challenge of the study was financial constraints. The researcher have limited money to pay for consumables such as stationary, telephone expenses and lack of the internet service to access information forwarded to him. The research as a result of financial constraints had to fit the limited resources without compromising the validity and reliability of the research findings. Scarcity of time to conduct an in-depth study is another severe constraint that the project faced and the researcher had to maximize the available time by sending the questionnaires through emails and to conduct interviews over the phone. Resistance by relevant authorities from the organizations under study to assist is another serious challenge that the researcher faced. Corporate organizations sometimes are not friendly and open to discuss pertinent issues with outsiders in fear that they can expose their weakness. Targeted respondents had to gate-keep the information to the researcher in fear that the information can be used to tarnish the image of their organization. The researcher had to free the interviewee through an assurance that the supplied information will be used strict for academic purposes

1.9 Summary
This chapter sought to give the reader an insight of the body text of this study. The problem statement of this research is derived from corporate communication which is equal the same with public relation. Background of CSR, Econet Wireless holding limited and NRZ have been talked about in this chapter. Corporate social responsibility (CSR) is defined for the clarity seeks of the entire study and some of corporate social responsibility programs have been discussed within the introduction. The researcher’s intention to give relevant literature for corporate social responsibility that touches Econet and NRZ is given in this chapter in passing. However, detailed literature review and theoretical framework will be explored in the next chapter. It should be clear in this study that a comparative assessment of the application of CSR approach in PR practice at Econet and NRZ is discussed in short in this chapter.