The document discusses Etisalat's philanthropic activities. Etisalat is a telecom company based in Abu Dhabi with $14 billion in annual revenue operating in 17 countries. It pursues philanthropic activities in education, health, charities, and civic infrastructure. The document discusses benefits Etisalat gains from philanthropy like improved reputation, employee engagement and retention, customer loyalty, and access to new markets. However, it risks being seen as substituting for local governments, which could challenge its operations and relationships with governments and communities.
The document discusses Etisalat's philanthropic activities. Etisalat is a telecom company based in Abu Dhabi with $14 billion in annual revenue operating in 17 countries. It pursues philanthropic activities in education, health, charities, and civic infrastructure. The document discusses benefits Etisalat gains from philanthropy like improved reputation, employee engagement and retention, customer loyalty, and access to new markets. However, it risks being seen as substituting for local governments, which could challenge its operations and relationships with governments and communities.
The document discusses Etisalat's philanthropic activities. Etisalat is a telecom company based in Abu Dhabi with $14 billion in annual revenue operating in 17 countries. It pursues philanthropic activities in education, health, charities, and civic infrastructure. The document discusses benefits Etisalat gains from philanthropy like improved reputation, employee engagement and retention, customer loyalty, and access to new markets. However, it risks being seen as substituting for local governments, which could challenge its operations and relationships with governments and communities.
The document discusses Etisalat's philanthropic activities. Etisalat is a telecom company based in Abu Dhabi with $14 billion in annual revenue operating in 17 countries. It pursues philanthropic activities in education, health, charities, and civic infrastructure. The document discusses benefits Etisalat gains from philanthropy like improved reputation, employee engagement and retention, customer loyalty, and access to new markets. However, it risks being seen as substituting for local governments, which could challenge its operations and relationships with governments and communities.
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UNIVERSITY OF ECONOMICS HO CHI MINH CITY
COLLEGE OF BUSINESS FACULTY OF INTERNATIONAL BUSINESS - MARKETING
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GLOBAL STRATEGIC MANAGEMENT
MINICASE 09: ETISALAT’S PHILANTHROPIC ACTIVITIES
Section Class: 23D1BUS50317801
Lecturers: Master. Duong Ngoc Hong Student Group: Group 4 Hoang Phuong Anh (31211024049) Nguyen Phuoc Quy Chau (31211026165) Nguyen Truong Kieu Diem (31211020888) Nguyen Khanh Huyen (31211022640) Đang Tran Khanh Lam (31211025216) Lao Thi Khanh Linh (31211023105) Mai Ngoc Đoan Trinh (31211023512)
Ho Chi Minh City, February 27th, 2023
TABLE OF CONTENTS
1. Summaries the main contents of the mini case..........................................................1
2. The main content..........................................................................................................2
2.1. What benefits does a global corporation such as Etisalat draw from its philanthropic activities?.................................................................................................2
2.2. In financing these philanthropic activities, and in choosing which ones to support, does a global corporation run the risk of being seen as a substitute for the local government? If so, what are potential drawbacks to this?..............................................4
Etisalat’s philanthropic activities The United Arab Emirates' Etisalat Group is a telecom company with its head office in Abu Dhabi. It has 14 billion US dollars in annual revenue and operates in 17 nations in the Middle East, Asia, and Africa. Etisalat has developed a company policy known as "stakeholder engagement" in which it forges connections with several local stakeholders in the various nations where it operates. As such, it pursues a variety of philanthropic activities worldwide, in collaboration with the UAE’s Ministry of International Cooperation. It intervenes in the fields of education, health, charities, and civic infrastructure works.
2.1. What benefits does a global corporation such as Etisalat draw from its philanthropic activities? Philanthropy is a powerful tool for promoting sustainability and enables corporations to open a meaningful dialogue about their social values and aims with a wide range of stakeholders - businesses, employees, consumers, local government, and wider society to achieve positive change. Over the last few years, there’s been an increase in the number of businesses engaged in philanthropic activities, as well as a diversification in the size and types of businesses that participate. Etisalat Group is also doing its target by investing time and money in improving the living standards of people wherever it operates in the form of free education, creating better health facilities, or advanced civic infrastructure development. There are several benefits that a global corporation like Etisalat can draw from its philanthropic activities: Firstly, philanthropy is a sort of public relations or advertising that assists corporations in improving their reputation and raising brand awareness. Being involved in philanthropy is a great way to show the public that your corporation is a concern and can be trusted. Companies can boost brand recognition or improve their corporate image, resulting in higher sales and profits. Studies show that people will spend more money on brands that support causes. According to Cone Communication’s Study (2017), when given the choice between two brands of equal value, ninety percent of consumers are likely to choose a cause-branded product. Eighty-seven percent of consumers also said they would purchase a product simply because a corporation advocated for an issue they care about. Secondly, another benefit for businesses is that philanthropy can retain employee engagement and retention rates. CSR research consistently shows that corporations that offer corporate philanthropy opportunities see higher employee motivation and
productivity. Their employees are more likely to stay with the company for a longer period of time as a result of feeling honored to be a part of an organization that truly improves the lives of those in need. Up to 78% of employees prefer to participate in corporate social responsibility initiatives. Whenever any company is engaged in philanthropic activities or CSR it brings lots of positivity to the workspace. The atmosphere is always pumped and people are more willing and enthusiastic than ever. Moreover, employee engagement also improves productivity and business results. According to a survey by Gallup’s meta-analysis, when a company has engaged employees, they see a 17% increase in productivity, are 21% more profitable and can have 41% lower absenteeism. Innovation and creativity also increase in an engaged workplace. As a result, the work they do with more effort and dedication overall leads to an increase in productivity and sales as well. Besides, philanthropic activities can help to create a positive corporate culture that values social responsibility and community development, which can attract and retain top talent. Thirdly, by engaging in philanthropy activities, global corporations can increase customer loyalty and create a positive attitude among their consumer base. Corporations can establish more personal connections with their consumers by participating in the community. Consumers are more likely to do business with a company that is actively engaged in making their community a better place. In fact, according to America's Charities, 47% of global consumers said they buy products from brands that support a good cause at least once a month. Community participation is an excellent approach to boosting customer engagement and fostering goodwill among consumer groups. By attracting new customers and maintaining the loyalty of existing ones, corporations will be expanding and growing. Fourthly, philanthropic activities can help corporations to gain access to new markets, particularly in emerging economies where social responsibility and community development are highly valued. Additionally, corporations can also take advantage of the
opportunity to engage in markets to develop positive relationships with stakeholders,
including consumers, employees, communities, and government agencies, which can enhance corporation sustainability and growth. Finally, connecting with the community is a benefit drawn from philanthropy activities. It’s a fantastic way to make new professional connections, learn about your community, and inspire company innovation. Participating in various types of charities puts companies in direct contact with new people and businesses who may be able to assist the corporation in thriving. Overall, philanthropic activities can provide numerous benefits to global corporations. Additionally, corporate philanthropy can be a significant symbol of community rebuilding and reestablishing connection and legitimacy with society (Saiia, 2003). Corporations must be encouraged to understand that these activities should not be seen as impediments to corporate profits, but rather as potential investments in long-term growth that could be advantageous to both the corporation and the community (Smith, 1996; Weeden, 1998).
2.2. In financing these philanthropic activities, and in choosing which ones to support, does a global corporation run the risk of being seen as a substitute for the local government? If so, what are potential drawbacks to this? In financing these philanthropic activities, and in choosing which ones to support, an international company runs the risk of being seen as a substitute for the local government, regardless of whether it is based on the point of view of the helpee "the people", the global company or the local government. As we can see from the information in part one, a global corporation, like Etisalat, is doing what the government needs to do and should focus on. In another case, with the desire to work with experienced, professional, reliable partners, a number of global corporations will develop relationships and work with local governments to better deploy their philanthropic activities.
However, when the global corporation as a whole faces the risk of being seen as a substitute for the local government, this also creates several potential limitations, as follows: Firstly, global corporations' operations in these markets may face challenges. When the governments of nations that are engaged in society think that it is replacing the responsibilities and roles of the government, the governments of these countries will implement legislations to make Etisalat's business difficult, such as restrictions on the right to operate or invest, utilize resources, etc. are more strict in the way of regulation. In addition, Etisalat may also find it difficult to collaborate with government stakeholders. In another aspect, by providing direct support to a community, a corporation may inadvertently undermine the authority of local government. This can create confusion and potentially lead to conflict over who has the responsibility and authority to provide certain services or support. Secondly, when your corporation becomes a public figure and is seen as a substitute for the local government, it is more likely to be scrutinized in all aspects. As an organization that maintains its credibility through its activities, even little infractions might result in criticism. This can put the corporations at a disadvantage because it will have an impact on your customer base. Thirdly, in addition to business goals, global corporations engage in philanthropic activities to boost their corporation's image and awareness. Being considered a substitute also becomes a barrier when they achieve their global goals and limit operational efficiency. Fourthly, when a corporation provides assistance to the community, there is a risk that the community will become dependent on the company's support rather than building its own resources and capabilities, resulting in negative effects for that community. Fifthly, unlike local governments, corporations may not be held accountable by the community they are supporting. This might lead to a lack of transparency and
accountability in how funds are used, and whether or not they are having a positive impact. Last but not least, global corporations may have their own interests, priorities, and agendas that are incompatible with the needs and priorities of the community they are supporting. In some cases, corporate objectives may even conflict with community needs, which can lead to unintended negative consequences. Overall, while corporate philanthropy can be a powerful force for good, it is crucial to be aware of the potential risks and drawbacks of corporations acting as a substitute for local government. To avoid these risks, corporations should work in partnership with local governments and communities, rather than acting as a substitute for them.
3. References [1] Lasserre Philippe. (2018). Global Strategic Management. Fourth Edition. Palgrave Macmillan. [2] Group Corporate Communications. (2012). Etisalat CSR & Sustainability Report 2012. Available at: https://eand.com/en/system/docs/reports/Etisalat-CSR- Sustainability-Report-2012_lowres.pdf. [3] Smith, C. (1996). Desperately seeking data: Why research is crucial to the new corporate philanthropy. In D. F. Burlingame & D. R. Young (Eds.), Corporate philanthropy at the crossroads (pp. 1-6). Bloomington: Indiana University Press. [4] Weeden, C. (1998). Corporate social investing. San Francisco: Berrett-Koehler [5] Saiia, D. H., Carroll, A. B., & Buchholtz, A. K. (2003). Philanthropy as Strategy. Business & Society, 42(2), 169–201. https://doi.org/10.1177/0007650303042002002 [6] Amabile, T. M. (1993). Motivational synergy: Toward new conceptualizations of intrinsic and extrinsic motivation in the workplace. Human Resource Management Review, 3(3), 185–201. https://doi.org/10.1016/1053-4822(93)90012-S [7] Backhaus, K. B., Stone, B. A., & Heiner, K. (2002). Exploring The Relationship Between Corporate Social Performance and Employer Attractiveness. Business & Society, 41(3) [8] Bauman, C. W., & Skitka, L. J. (2012). Corporate social responsibility as a source of employee satisfaction. Research in Organizational Behavior, 32, 63–86. https://doi.org/10.1016/j.riob.2012.11.002 [9] America's Charities (2022) Facts & Statistics on workplace giving, matching gifts, and volunteer programs, America's Charities. Available at: https://www.charities.org/facts-statistics-workplace-giving-matching-gifts-and- volunteer-programs. [10] Tuokuu, F. X. D., & Amponsah-Tawiah, K. (2016). Corporate social responsibility: is it an alternative to government? Journal of Global Responsibility, 7(1), 26–38.
