Corporate Social Responsibility in Saudi Telkom Company - Case Study Example

Corporate Social Responsibility at Saudi Telkom Company Name Institution Course Date Corporate Social Responsibility in Saudi Telkom Company Introduction Corporate Social Responsibility has a strategic significance in the business world for organisations and governments alike (Ali and Al-Aali, 2012). It is a critical issue in today’s business world thus many organisations set apart significant resources in carrying out Corporate Social Responsibility. In emerging nations that focus on building dynamic economies, Corporate Social Responsibility and Sustainability has taken on an added advantage and value. Typically, there is a clear acceptance that national growth and CSR are normally intertwined (Ali and Al-Aali, 2012). Therefore, developing nations will not develop or succeed without the involvement of organisations in societal issues and contribution to capacity building. Needless to say, competitive position and the well-being of citizens are dependent on the environmental, competency and technological problems (Bowen, 2013). Such challenges can truly be managed through corporate programs in partnership with the government. Companies cooperating with the government enhance the innovative solutions to the challenges. The Arabs nations are no exception (Abdulla, 2007). Arab countries’ governments have espoused various doctrines of CSR especially environmental sustainability, healthy living, social sustainability and water conservation (Abdulla, 2007). Saudi Arabia is a major country that is faced with issues such as urban planning, water conservation to name a few. For this, Corporate Social Responsibility is vital for the survival and development of the country (Friedman, 2007). This paper will examine the scope of Saudi Telecom Company and the Corporate Social Responsibility programs it is involved in. The paper will also explore how the program has impacted the community in Saudi Arabia and the issues it is involved in curbing societal challenges. Corporate Social Responsibility in Saudi Arabia Saudi Arabia is considered one of the world’s rapidly growing economic powers (Abdulla, 2007). With national resources and strong military and political links to the West, the country has chosen to respond to the Western countries’ economic priorities while focusing at maintaining their political and social systems. Since 1970s, the government has been committed to providing economic and technological advancement for its citizens in addition to incorporating the economy into the market worldwide (Ali and Aali, 2012). The plan is aimed at enhancing the competitive advantage of the kingdom with regard to dealing with ever changing global economic environment. The plan involves partnership between the government and the corporations in integrating Corporate Social Responsibility (Friedman, 2007). The goals have been implemented by the government directly and indirectly. Many organisations have changed the aspect of caring for the society and social responsibility for a number of reasons such as; efficient Corporate Social Responsibility initiatives strengthens a brand and enhances reputation of any company, meeting the needs of the society that has a positive impression on the customers’ loyalty and commitment towards the company (Hatmi, 2013). Advanced technology and innovative methods are available and thus leaves Corporate Social Responsibility to impact the moral support of the customers and changing from one product to another is influenced by the customers’ loyalty thus attributing to the use of social responsibility activities in an organisation (Bowen, 2013). An example of a company that is involved in Corporate Social Responsibility initiative is the Saudi Telecom Company. Saudi Telecom Company has established its social responsibility initiative by adopting projects that enhance sustainable development on the basis of humankind, environment, education, economy and health (Hopkins, 2007). Saudi Telecom Company Saudi Telecom Company is a Telecommunication company situated in Saudi Arabia that provides landline, internet services and mobile and computer network (Mallin, 2009). The company has its headquarters in Riyadh. It is the leading Telecommunications Company in the country in relation to revenue generation, net income and market capitalisation. The company was established in 1998 and serves more than 100 million customers worldwide with cutting-edge solution of the knowledge economy using a fibre-optic cable network covering approximately 137,000 kilometres across the Middle East and Asia (Kaul, 2008). The company runs the Middle East’s biggest mobile network serving more than 85% of Saudi Arabia population. Beside its operations in Saudi Arabia, Saudi Telecom Company footmarks as a Telecom server and covers Viva Bahrain, Viva Kuwait and has 35% stake in Oger Telecom limited. The services offered by the Saudi Telecom company cover three broad categories namely; mobile network, enterprise services and landline network. Achieving success and growth for Saudi Telecom Company is not an easy task (Kaul, 2008). With regard to this, the company has incorporated Corporate Social Responsibility programs in its operations for the purpose of achieving its noble cause. The concept of CSR encompassed by the company surpassed the aspect of providing help to specific social groups that require charity for publicity sake (Idowu and Caliyurt, 2014). The company has instituted its CSR programs and strategies for building an effective relationship with the community. Corporate Social Responsibility at Saudi Telecom Company Saudi Telecom Company’s initiative towards the Saudi Arabian community evolves through a number of programs where activities differ in accordance to their type (Kaul, 2008). For instance, direct programs that are in direct correlation with the company’s commodities and results, focussed on innovative technology and services and Corporate Social Responsibility programs providing continuous services to the society. Generally, Saudi Telkom Company adheres to economic, ethical, legal and philanthropic responsibilities. Economic responsibility Over the years, Saudi Telkom Company is known to make profit. A business is considered profitable if it sells products that are more valuable than its materials, operations and labour used to create them (Millin, 2009). In making profit, the company add value to the economy. Adding value serve the interest of direct stakeholders. Saudi Telkom Company also uses its profits to pay employees and at the same time reward the investors. Saudi Telkom Company act with transparency and offer enough information about its operation. The company allows stakeholders to see its practices and financial position openly. Investors have access to enough information about the company in order for them to evaluate potential risks and opportunities of investing in the company (Millin, 2009). In addition, Saudi Telkom Company ensures sustainability of its operations by developing long-lasting relationships with customers, employees and suppliers. Direct stakeholders benefits to a greater extend from sustainability. Because of its secure future, Saudi Telkom Company earns dividends, employees continue to receive salaries and customers continue to buy its products and services. From these, Saudi Telkom Company satisfies its economic responsibilities. STC has also launched a venture capital of 50 million dollars that is expected to fund new and small-sized companies in the field of telecommunication and information technology (Mallin, 2009). Its technology marketing as a driving force to creation of small companies has enhanced economic growth of Saudi Arabia. The company has also resulted to positive impacts in relation to income resource development and employment creation (Tsutsui and Lim, 2015). The creation of capital led to the achievement of good return for the investors, has created market opportunity for the investors and has encouraged creativity and innovation and has supported the infrastructure of the economy. In Saudi Arabia, women receive special support and attention. The company has thus developed programs to support businesses women and housewives meet their targeted needs. Legal responsibility All companies are expected to accomplish their legal responsibilities and adhere to legal laws that impact organisation operation and planning process for them to operate soundly (Kaul, 2008). Saudi Telkom Company adheres to its tax requirements and code of practise and sells products that meet the consumer rights and responsibility law. In addition, the company obey legal responsibilities ranging from environmental law to securities regulations and labour laws. STC is very vigilant to uphold its role in social initiative as proactive leaders in CSR (Kaul, 2008). As part of the society, the company celebrate national events and supports national festivals as a way of maintaining country’s heritage. Saudi Telecom has been able to maintain its devotion to its homeland and also to its religion and this comes about due to its respect to the Allah. The leadership in the company has upheld the hallowed land and has keenly unified the thoughts of all the Muslims (Kaul, 2008). In the society, keeping healthy is an important constituent in building our economy. As much as it is considered the most important element, it often requires hard work, giving and persistence. Ethical responsibility Saudi Telkom Company has integrated social responsibility towards their employees. The company acknowledges the employees and perceives them as the most essential assets for the survival of the company thus social responsibility starts with them (Mallin, 2009). Social responsibility towards the employees is incorporated by continuous projects that support the employees to develop a model work environment; it encourages them to take up voluntary work and care for their families and relatives. The company also always pays visit to its ill employees especially during national events and holidays. It offers gifts and support as a way of expressing their share of their feelings during the hard times (Millin, 2009). Furthermore, Saudi Telecom Company has integrated ethical responsibility by offering quality products and services to the customers at affordable prices (Ilahi, Haider and Hawi, 2014). The company is known for its contribution for increased customer satisfaction and speed of customer service and enhanced customer experience. Saudi Telecom Company adheres to the environmental policies and health and safety codes in carrying out their operations in a manner that would protect its employees and customers from any danger. It provides the employees with healthy working environment that enable them work at providing better quality and safe products and services to its clients (Ilahi, Haider and Hawi, 2014). It has adopted an environmental management system that supports the development of services and commodities that features low energy use within the company. Discretionary responsibility Saudi Telecom Company’s social responsibility program has incorporated goodwill projects (Jamali and Sidani, 2012). For instance, the company has launched a package known for special needs with the purpose of meeting their specific technical needs. The package was intended to focus on specific type of services. The package initiative has helped the company provide free services that are assigned a particular limit of free and cost calculated at 50% discount. The package initiative has helped a good number of children to utilize technology and additional services they need at low cost (Jamali and Sidani, 2012). The benefits of the package initiative towards the society include free base fees, 50% discount on Mobile Net, 100 free media messages for a period of two months, 150 free minutes for visual communications for two months and free calls to the call centre 905. Also, Saudi Telecom Company has initiated public auction for charity purposes (Kaul, 2008). The auction involves distinguished numbers in supporting kids who are orphans, ill or with special needs. The revenue gotten from the auction goes to the charity associations. So far the company has held three public auctions raising approximately ten million SR supported the Insan Group and Kilana Group charity association. Furthermore, being a Telecommunication company, Saudi Telecom Company uses its technology in supporting charitable work in the country (Ilahi, Haider and Hawi, 2014). The company has made it easy for clients to donate to over 70 charity associations working in Saudi Arabia by offering short code services for donation offering. This makes it easier for the clients to donate to group they like to donate to. It also assist charity groups cements their operations of offering invaluable services to the society (Jamali and Sidani, 2012). Various Corporate Social Responsibilities within Saudi Telkom Company are implemented under a program termed as ‘Al Wafaa Programs’. The Waafa program has incorporated various initiatives including Waafa Education responsibility, Waafa Social Responsibility, Waafa Religious Responsibility, and Waafa Health Responsibility. The company supports education and scientific research through sponsorship of scientific researchers specialised in Telecommunication research at King Saud University (Kaul, 2008). The research has had a direct relationship with technology that replicates upon technology and has an effect on development of technology education. Through the Education responsibility initiative, the company supports rehabilitation and vocational training platforms. For instance, Saudi Telecom Company has sponsored more than 2,300 young people and their training in vocational fields (Ilahi, Haider and Hawi, 2014). Also, in support of the country’s education sector, the company has initiated programs that develop skills among school advisors and teachers. Based on its support for education, Saudi Telecom Company pays attention to books’ publications in Saudi Arabia. It supports publishing by means of sponsoring the printing scientific and educational books (Mallin, 2009). Examples of books published by assistance of the company include Nour Al Madaen, Your Health in Hajj, Together for Traffic Safety to name a few. Saudi Telecom Company has gone ahead to take care of its community by recognizing its duty of hard work which comes with commitment to the affluence and health to our homeland (Idowi and Caliyurt, 2014). The company has been able to build 22 health centres. This has come with huge donations of about 100 million Riyal which has been used to institute and provide health services to all. This has helped the locals, who used to move long distances from one place to another, in order to get free health services. Conclusion Corporate Social Responsibility has a strategic significance in the business world for organisations. Many companies in Saudi Arabia have adapted CSR as a way of enhancing their competitive advantage in addition to providing societal support for its people. An example of an organisation that has integrated Social Responsibility in its operation is the Saudi Telecom Company. Corporate Social Responsibilities within Saudi Telecom Company is implemented under a program termed as ‘Al Wafaa Programs’. The program has incorporated goodwill projects such as education responsibility, health responsibility, economic responsibility, ethical responsibility etc. Such initiatives have enabled the company provide assistance to the community in terms of the specific needs of different people. Saudi Telecom Company is considered a proactive leader in incorporating Corporate Social Responsibility. References Abdulla, R. (2007). The Internet in the Arab world Egypt and beyond. New York: Peter Lang. Ali, A., & Al-Aali, A. (2012). Corporate Social Responsibility in Saudi Arabia. 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