Corporate Social Responsibility in Emerging Markets

> Executive Briefing

1

Miriam Mertens

Miriam.Mertens@detecon.com

Reza Moussavian

Reza.Moussavian@detecon.com

1

Corporate Responsibility business enabler in emerging markets

Corporate Responsibility (CR) is en vogue. Many business leaders and multinationals acting in emerging markets decorate themselves with CR activities presented as an act of charity. Only a few corporations have identified its business potential. This article outlines a new approach for telecom operators in emerging markets to pursue innovative integral Corporate Responsibility – aligned with business strategy and operations.

1

1

1

1

Detecon International GmbH  10/2008 1 www.detecon.com

Corporate Responsibility – business enabler in emerging markets

> Executive Briefing

2 Telecommunications in emerging markets Increasing ARPU expectations and the triple-digit growth rates of mobile subscriptions are encouraging more and more international operators to invest into emerging markets. In 2 developing countries telecommunication providers are confronted with the question as to how and to what extent they can and want to contribute to the economic welfare of the local society. An integrated corporate responsibility strategy can help operators to create sustainable business, build trust with local stakeholders, and thereby establish a broadly 2 accepted “license to operate”, to the benefit of the corporation as well as the surrounding society. With respect to corporate responsibility three central questions arise:  2 Is CR an unavoidable expenditure needed to comply with moral and legal obligations, or is it an opportunity to enable business success?  2  Should CR be clearly marked as charity and social sponsoring, or should it be linked to core business? Can CR foster competitive advantage and support strong moves towards sustainability?

2

From one-off charity to balanced business

CR as a business success factor is a long-term process which can be defined...