research methodology
Corporate Social Responsibility and Sales Performance of Telecommunication Companies
A Case Study of MTN Mbale Branch
CHAPTER ONE
INTRODUCTION
1.1 Introduction
This chapter presents background of the study, the problem statement, purpose, objectives of the study, research questions, study scope, justification of the study, significance, Hypotheses, conceptual framework, as well as operational definition of key terms and concepts.
1.2 Background to the Study
In Ancient Rome senators grumbled about the failure of businesses to contribute sufficient taxes to fund their military campaigns, while in 1622 disgruntled shareholders in the Dutch East India Company started issuing pamphlets complaining about management secrecy and “self enrichment” (Asongu, 2007; Souran and Rao, 2011). In 1790 there was a first large-scale consumer boycott in England which finally forced importers to adopt free labour sourcing. Within a few years more than 3,00,000 Britons were boycotting sugar, the major product of the British West Indian slave plantations. Nearly 400,000 signed petitions to Parliament demanding an end to the slave trade and in 1792, the House of Commons became the first national legislative body in the world to vote to end the slave trade (Hochschild, 2005; Lau, 2007; William et. al., 2011).
In the late 1800s during the rapid rise of industrialization in Europe and United States of America there were conflicts between the politicians and businessmen over the responsibility of the industries to the wellbeing of communities. The industries were becoming wealthy at the expense of community resource as a result, some American companies like standard oil stated providing essential services like Education and Health and this was before even the term corporate social responsibility was coined (Zulfiqar, Sadaf, Popp, Vveinhardt, & Máté, 2019).
According to McWilliams and Siegel (2018), Corporate Social Responsibility is the situation where a firm goes beyond compliance and engages in actions that appear to promote social good, beyond the interests of the firm and that which is required by law, Corporate Social Responsibility (CSR) refers to a firm’s ability to simultaneously fulfill its economic, legal, ethical and philanthropic responsibilities (Caroll, 2019).
In the 18th century a Scottish philosopher and economist named Adam Smith wrote numerous articles on social responsibility, his magnum opus being “An Enquiry into the Nature and Causes of The Wealth of Nations” in which he expressed that the needs and desire of the society could best be met by the free interaction of individuals and organizations in the marketplace. However, he also recognized that marketplace participants must act honestly (Arthaud-day, 2005; Yehia, 2007 Panda and Kajilal, 2012).
Until 1990s, CSR was generally limited to corporate philanthropy. It is from the early 1990s that enlarged concepts and practices of CSR have come to the force. 1990s were characterized by swift expansion of globalization following the collapse of the Soviet Union and the end of the Cold War, IT revolution increased economic productivity, while high levels of private investment in equity markets increased individual prosperity (Thinking Shift, 2017).
In the early 1990s most of the companies in the African continent involved in CSR were multinational companies from the United states and Europe, however the practice in CSR by African indigenous companies is currently increasing as most of the African companies are seeking to expand their participation in the daily life of their customers by investing in key areas like education and Health for the betterment of the community members with in, (Uduji, Okolo-Obasi, & Asongu, 2019).
The companies in some of Africans largest economies like south Africa and Nigeria have observed an exponential increase in CSR activities by the local African companies than in the past as of 2019 Companies in south africa spent an estimated R10.2 billion on corporate social investment (CSI) in South Africa in 2019 – a 5% year-on-year increase in rand terms (2018: R9.7 billion) and on the same note Nigerian Companies spent about N11.3 billion as charitable donations for the year ended December 2018 compared to about N10 billion a year earlier this therefore indicates that there is growth and development among the African companies in terms of CSR in both their domestic countries and the continent at large.
Makwara, Mutambara, & Magagula-Hlatjwako, (2019) indicates that, Although Corporate Social Responsibility (CSR) has customarily been linked with big businesses, the SME business sector has shown itself to be a substantial sector in the South African economy, Kechiche and Soparnot (2012) postulated that in south Africa the involvement in “SMEs in CSR is a true indication that companies both Big and small had acknowledged the importance of CSR to both communities and their business and therefore an opportunity they cannot afford to miss.
The government of Kenya has emphasized the importance of CSR to the extent that In Kenya, before an organization can be granted a license to exploit any natural resource, for example, minerals or oil, it has to show how the project will benefit the local community. The Local Content Bill has provisions on this and contains clauses on revenue sharing between the local community and the organization that exploits the natural resource. As a result of in Kenya CSR is crucial It has a lot of benefits to the society, for example, Safaricom, a Telecommunication company, has built a school that accommodates up to 1000 needy companies. The secondary school dubbed M-Pesa Academy is a Ksh. 3 Billion ($ 30 Million) project that targets needy but bright companies. It is built and owned by M-Pesa Foundation; a charity organization established by Safaricom in 2010. In the same vein, Equity Bank is pursuing the provision of education and mentorship for bright companies. Equity Group Foundation and The MasterCard Foundation, with additional funding support from USAID, UKAid, KfW, Equity Bank, have all increased their CSR activities.
In Uganda, most companies evidently view CSR as a move that would further eat into their already limited profit margins (Katamba, 2018). This explains why most companies operating in Uganda still do not have CSR policies. For most of those that do, it is only on paper as there is nothing on the ground to show they are actually implementing the policy. Social and environmental problems are wreaking havoc in the country as a result of poor corporate governance practices. As a result of not taking CSR seriously, there is in the country a strong belief that generally, locally-operating companies care only for their personal economic growth and nothing about the well-being of the communities in which they operate. But labelling all profit-making companies in Uganda as selfish would not be fair, as there are some companies operating in the same economically unstable environment, but have done a lot to improve the communities in which they operate. (Katamba, 2018).
According to Uganda Bureau of Statistics (2007), companies that employ over 101 employees are involved in some form of corporate social responsibility. MTN is no exception. MTN is committed to being a socially responsible company in Uganda. MTN views its Corporate Social Responsibility initiatives as integral to its core mission and sales performance. In Mbale, corporate social responsibility has been considered important, but people have developed different perceptions towards corporate social responsibility, that is all functions of management like planning, organizing, staffing, leading and controlling are no longer effectively achieved in MTN and they expect corporate social responsibility to be the major cause, it is against such a back ground that the researcher will intends to assess the relationship corporate social responsibility and sale performance within organizations.
- The background to the study does not demonstrate your masterly of the subject under investigation. Besides it does not demonstrate that you are aware of the historical evolution and theoretical developments of CSR!
- One would have expected to read the debate whether or not companies should engage in CSR in your background to the study.
- The background does not highlight how CSR has been/can be used as part of an organisation’s overall business strategy, to receive financial returns to be used to sustain their responsible actions.
- Remember you are trying to convince the reader on the importance of Corporate Social Responsibility as one way of increasing sales – profitability rather than an additional cost with no returns. In other words you should be able to build the business case for Corporate Social Responsibility- can MTN enhance its sales performance at the same time as increasing social welfare or perhaps enhance sales performance because it is increasing social welfare.
1.3 Statement of the Problem
In the last two decades, there has been phenomenal growth in the telecommunications sector worldwide. The telecommunications industry has made its mark in history by revolutionising lifestyles of individual, systems, governments and entities. There are a number of factors that have in different ways contributed to the growth in the sector. Uganda has equally had its share of this progress and in some instances pioneering the use of mobile phones attributes to change lives.
With the advent of deregulation and liberalization in Uganda in the past two decades, an occurrence that was embraced in much of the world economies, the telecommunications industry has been characterised by a dynamic environment, rapidly growing and manifested by unprecedented innovations.
By March 2018, the number of mobile phone users had increased to 24.8 million, a 70.9 percent penetration rate. As of June 2020, the number of mobile telephone customers were estimated at 25.5 million, as reported by the Daily Monitor newspaper. This could be deleted
MTN was launched in Uganda in 1998, and today it is the leading telecommunications company in the country, servicing over 7.5million subscribers. It covers over 95 percent of the local population, providing services in over 150 towns and villages and their immediate environments.
Despite the successful growth by MTN Uganda it has also me?????
a lot of challenges currently some of these including the declining sales performance of MTN Uganda specifically Branch, more to that MTN Uganda Limited is still not perfect at growing sales for example in 2005 number of customers reduced from 70 percent to 65 percent in aspects and has not made it on international standards hence cannot fully compete with other communication company on both local and international scene (Company reports, 2006). Is there any proof that these poor performance can be attributable to CSR?
Low sales volume has often been identified as a central area of concern in The MTN Uganda Limited (MTN Company annual reports, 2010). Despite the initiatives by management to get engaged into philanthropic endeavors the sales volumes are still low (MTN Uganda limited Company annual reports, 2010).
The MTN, Records, (2017) this is too general; be specific and state the name of the record….further indicates that the percentage growth of sales of the company has been declining ever since Airtell and Warid merged this has thus made the company face stiff competition from its close competitors and this has puzzled experts of what could be the cause. Thought there has been numerous researches on the sales performance of companies no research has specifically been centered on impact of CSR on sales performance of companies in the telecommunications sector. It’s against this background that this study intends to investigate into the impact of CSR on sales performance of companies in the telecommunications sector in Uganda, with specific reference to MTN Uganda, Mbale Branch.
In your problem statement show the ideal situation; what happens when a company engages in CSR? Highlight how CSR influences consumer preference (CSR vs Sales). Then what is actually going on at MTN? What do you propose i.e you should be able to give the business case for Corporate Social Responsibility?
In short your research problem should have the following components:
- Provides Key Background information that is necessary for understanding the main concepts or variables in the study – CSR and Sales performance
- Provides how an ideal occurrence of the research concept ought to be like; or provides how the ideal relationship between the variables [CSR and Sales performance] ought to be like.
- Contrasts the ideal occurrence or the ideal relationship with actual occurrences or actual relationships between the concepts or variables in a specific context.
- Provides evidence to show both the ideal and/or actual occurrence or relationship.
- Provides key literature gaps (what other researches have not done which the research wants to do about the issue)
- Justifies the rationale and urgency of the research to a specific audience
- Ends with a thesis statement (the general objective of the study
1.3 Purpose of the Study
The purpose of this study is to examine the impact of corporate social responsibility and sales performance of telecommunications companies a case Study of MTN Mbale Branch.
- To determine the influence of philanthropy on sales performance.
- To examine the relationship between community volunteerism and sales performance.
- To establish the influence of adopting Ethical policies on sales performance.
The research objectives are derived from the problem statement. Since there are certain weaknesses in the formulation of the research problem I find it difficult to make an assessment of the current objectives as stated.
1.5 Research Questions
- What is the influence of philanthropy on sales performance?
- What is the relationship between community volunteerism and sales performance?
- What is the influence of adopting ethical policies on sales performance?
1.6 Scope of the Research Study
Geographical scope
The research will be conducted at the MTN District branch offices in Mbale District. This case study has been chosen because Mbale district is one of the largest district in Eastern Uganda with the Majority number of MTN network users since the study is focused in the Eastern Region.
Time scope
The research will cover a period of five years of implementation of corporate social responsibility initiatives by MTN from 2010-2015. This is because it is expected to be having the necessary information pertaining CSR and its effect Sales Performance on since this is the period MTN increased its CSR activities.
Content scope
The scope of the study will include; the influence of philanthropy on sales performance, the relationship between community volunteerism and sales performance and the influence of adopting Ethical policies on sales performance.
1.7 Conceptual Framework
According to Crane, Matten, & Spence, (2019) Conceptual Framework is defined as the idea of determining the relationship of relevant variables of the study and maping out how they might relate to each other.
Moderating variables
Source: Agudelo, Jóhannsdóttir, & Davídsdóttir, (2019) as modified by the researcher
Corporate Social Responsibility is defined as when a company operates in an ethical and sustainable way and deals with its environmental and social impacts. This means a careful consideration of human rights, the community, environment, and society in which it operates and the dimensions of measuring CSR is therefore it level of involvement in Philanthropy, Volunteering in the community, Socially and environmentally conscious investments and its commitment in Improving labor policies, all these are good for the societal wellbeing. On the same note sales performance of an organization is measured by key dimensions like Sales volume, Sales income, Market share and Customer loyalty. However all these factors are influence by other variables that are not with in the ability of an organization to manage and they are called moderating variables these dimensions include; Competition, Environmental laws, Company policies and Government policies.
1.8 Significance of the Research Study
- The research findings helps the government and policy makers to understand the various CSR activities that the Company is involved in and how its of great benefit to the entire public and the possible support that can be offered by the government.
- The researcher will benefit from the study through acquiring proficiency in carrying out future research studies with ease.
- The findings contribute to the new knowledge and information in the areas concerning CSR which will help other researchers and academicians in conducting research in the same area.
- The study will enable management to understand the challenges faced in the implementation of CRS and the possible solutions based on the recommendations given by the researcher so as to improve on the CRS activities.
1.9 Definitions of key terms
Corporate social responsibility refers to the discretionary actions undertaken by companies that are intended to advance social issues (Richardson A.J, Welker M, Hutchinson I.R. (1999).et al, 1999).
Corporate Social Responsibility is defined as actions that appear to further some social good beyond the interests of the firm and which is required by law cited in (Katamba, 2008).
Sales performance is defined as the rate at which a given business enterprise completes a commercial activity (Gilligan & Grauthern (1976:27). Sales are as a result of marketing communication in consultation with other marketing variables (Gilligan & Grauthern 1976:27). Sales performance refers to the quantity an organization is able to exchange for money. A sale is completed by a seller who is the owner of the goods. It starts with the consent to an acquisition followed by passing of title (Rubaliskas 2006).
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter presents the literature review put forward by different scholars and personalities on the Corporate Social Responsibility and Sales Performance Of Telecommunication Companies as well as critically analyzing the deviations in the explanations to find out the existing research gap in the study variables. Literature will be reviewed objectively starting with theoretical review of the study, followed by reviewing of objectives. Sources like published articles, magazines, dissertations, e-books and journals related to the topic under study have been used.
2.2 Theoretical review
This section of the studies analyzes the relevant theories in line with the study.
- What is a theoretical review and why must you include it in your research? Give a technical definition of a theoretical review.
- After detailing the above; then, mention the theory(ies) that you have found relevant to your research before explaining them.
- It would be good if you identified one theory that addresses all the objectives; however in the event it is not the case then you can use more than one theory.
- At the time of explaining the theory take note of the following:
- State the theory, the author and year.
- State the prevailing circumstances under which the theory was first applied.
- Highlight the issues the theory addressed, the gaps that need to be addressed etc.
- In each theory you should indicate how the theory has been used by other researchers and how it will be used/its relevance in your study has to be highlighted and analytically evaluated.
It specifically explains the strength and weaknesses of the theory inline to the study. The basic idea of CSR is that business and society are interwoven rather than separate entities (Wood 1991). As discussed, a number of theories have been identified in the literature to explain CSR. For example, stakeholder theory explains how CSR is important, and the social contract and legitimacy theories explain why CSR is important (Moir 2001).
CSR includes a number of theories and many studies have discussed agency, stakeholder and social contract that are behind the concept of CSR; these theories and CSR approaches under the themes of economics, politics, social integration and ethics (Parsons and Sociales 1961; Garriga and Melé 2004; Jamali and Mirshak 2007).
2.2.1 Stakeholder theory
Stakeholder theory is a theory of organizational management and business ethics that deals with principles and values in managing an organization (Freeman and Phillips 2002; 2003). According to this theory, stakeholders are recognized as the group of people interested in the company‘s activities (Freeman 1984; Friedman 2007).
2.2.2 Social contract theory
According to Weiss (2008) a social contract is a set of rules and assumptions about behavioural patterns among the various elements of society‘. This theory combines organisational attention with stakeholder management. Much of the social contract is rooted in the traditions of society. The theory says that the social contract is formulated between people and organizations when exchanging something. Weiss stated that basic social contract theory is mutual trust and relationship between the organization and the stakeholders (Weiss 2008).
Donaldson and Preston (1995) explained that social contract theory establishes the general legitimacy of business and further restrictions and changes should not be part of the contract. However, they argued that the changes should be made within the limitations of the contract. Social contract theory focuses on the relationship between the business customers and stakeholders. The long-term economic benefits for organizations, shareholders and other stakeholders arise from the contracts with them, which should balance the external and internal regulations of the corporations. Therefore, the stakeholder management approach of the corporation is grounded in the concept of the social contract.
2.2.3 Legitimacy theory
Legitimacy theory is based upon the notion that the firm activates a social contract, where it agrees to perform various socially desired actions in return for approval of its objectives, other rewards and its ultimate survival. Legitimacy theory posits that corporate disclosures react to environmental factors (economic, social and political) and that disclosures legitimise actions (Preston and Post 1975; Hogner 1982; Lehman 1983; Lindblom 1983). It therefore needs to disclose enough social information for society to assess whether it is a good corporate citizen. In legitimising its actions via disclosure, the corporation hopes ultimately to justify its continued existence (Lehman 1983). This theory is largely reactive in that it suggests that organisations aim to produce congruence between the social values inherent (or implied) in their activities and societal norms (Lindblom 1983). Corporate social disclosures may then be conceived as reacting to the environment where they are employed to legitimise corporate actions.
2.2.4 Resource dependence theory
Resource dependence theory (RDT) is the study of how the external resources of organizations affect the behaviour of the organization. The procurement of external resources is an important tenet of both the strategic and tactical management of any company. Nevertheless, a theory of the consequences of this importance was not formalized until the 1970s, with the publication of The External Control of Organizations: A Resource Dependence Perspective (Pfeffer and Salancik 1978). Resource dependence theory has implications regarding the optimal divisional structure of organizations, recruitment of board members and employees, production strategies, contract structure, external organizational links, and many other aspects of organizational strategy.
However, this theory includes three core ideas (Davis & Cobb 2009): social context matters, strategies to enhance autonomy and pursue interest power for understanding internal and external actions of organizations. Resource dependence theory is one of many theories of organizational studies that characterize organizational behaviour. In many ways, resource dependence theory predictions are similar to those of transaction cost economics, but it also shares some aspects with institutional theory.
2.2.5 Coase’s Theory of the Firm
Ronald Coase set out theory of his transaction cost of the firm in 1937.This was one of the first arguments to define the firm theoretically in relation to the market. He explained the need for the firm to be consistent with constant returns to scale, rather than relying on increasing returns to scale. Another is in defining a firm in a manner which is both realistic and compatible with the idea of substitution at the margin, so instruments of conventional economic analysis apply. He notes that a firm‘s interactions with the market may not be under its control, but that its internal allocation of resources. Coase concludes by saying that the size of the firm is dependent on the costs of using the price mechanism, and on the costs of organization of other entrepreneurs. These two factors together determine how many products a firm produces and how much of each.
2.2.6 Agency Theory
Agency theory is a separation of ownership and control of the company that explains the relationship between principals and agents. In this relationship the principal hires an agent to perform work. The theory attempts to deal with two specific problems: first, that the goals of the principal and agent are not in conflict (agency problem), and second, that the principal and agent reconcile different tolerances for risk. However, this problem appears to be new and current, this is considered in Adam Smith‘s work called An Inquiry into the Nature and Causes of the Wealth of Nations (1776), which expresses doubts about the value of joint-stock companies, which reduce the financial incentives to managers in relation to the performance, if the capital is provided by the owners rather than by managers (Adams, 2008).
2.3 Influence of philanthropy on sales performance
Given that financing development has become one of the key cornerstones for the SDGs and the need to widen the scope of development finance through stakeholder diversification, the philanthropic sector is expected to contribute towards addressing the SDGs’ annual investment gap of about US$5 trillion US$7 trillion (UNCTAD, 2014). Private philanthropy is therefore expected to build on the complementarity of other funding mechanisms by leveraging their innovative capacity in raising additional financial resources (African Development Bank et al., 2015; SDG Philanthropy Platform, 2015). The Addis Ababa Action Agenda (AAAA) explicitly acknowledges the importance of philanthropy in achieving the SDGs in paragraphs 10 and 42 by stressing the need for philanthropic donors to give towards local and national development priorities (AAAA, 2015).
Understanding corporate philanthropy’s effect on the firm’s reputation for corporate social performance (CSP) is important for many reasons. Studies have long contended that a reputation for CSP is a significant determinant of many positive organizational outcomes, such as overall reputation (Brammer & Millington, 2005), organizational attractiveness to potential employees (Lin, Tsai, Joe, & Chiu, 2012), favorable corporate evaluations and product impressions from consumers (Lii & Lee, 2012), and partial buffering from scandal revelations (Janney & Gove, 2011).
From an historical point of view, corporate sustainability has been viewed upon by businesses as predominantly a cost or an obligation that slows down efficiency and hinders development of profitable growth. However, over the past fifty years, business leaders have begun to perceive corporate sustainability as an opportunity rather than as a necessity gradually redefining the way that businesses interpret and create value (Ludema, Laszlo & Lynch, 2012). This development has been driven and encouraged by higher expectations and requirements from various stakeholders concerning the level of transparency of corporations’ operational activities (Fischer & Sawczyn, 2013). Furthermore, the rise of different corporate sustainability reporting standards (e.g. Global Reporting Initiative, GRI) and stricter public regulations (Directive 2014/95/EU1) are placing additional pressure on corporations to develop or expand their sustainability practices.
Moreover, in the extensive literature investigating the effect of CSP on financial performance (Griffin & Mahon, 1997; Margolis & Walsh, 2003; Orlitzky, Schmidt, & Rynes, 2003; Roman, Hayibor, & Agle, 1999), a firm’s reputation for CSP is often seen as a mediating variable between CSP and financial performance. Of course philanthropy is one of many aspects of CSP (Waddock & Graves, 1997), but philanthropy is particularly important as it is characterized by a great degree of discretion (Hadani & Coombes, 2015). Understanding the effect of corporate philanthropy, which can be seen as a voluntary, nonobligatory, and nonreciprocal transfer of wealth from the corporation to its external stakeholders (Godfrey, 2005; Hadani & Coombes, 2015; Seifert, Morris, & Bartkus, 2004), on the firm’s reputation for CSP is also critical as increasing resource scarcity is making firms increasingly strategic in their philanthropic donations (Liket & Maas, 2016; Saiia et al., 2003).
Following extensive work in the reputation literature (Rindova et al., 2005), we conceive a firm’s reputation for CSP as the estimation in which the firm’s various stakeholders hold its CSP. A firm’s reputation for CSP results from the accumulation of various positive and negative CSP signals, which enhance and diminish reputation, respectively (Janney & Gove, 2011). It can shape overall corporate reputation, as stakeholders use the firm’s CSP activities as signals that allow them to evaluate the firm and its activities under conditions of incomplete information (Fombrun & Shanley, 1990). Moreover, reputation for CSP has been found to enhance several positive organizational outcomes such as attractiveness to labor markets and favorable product impressions by consumers, inter alia (Janney & Gove, 2011; Lii & Lee, 2012; Lin et al., 2012).
Overall, corporate reputation has been mainly viewed from an economics and an institutional perspective. These perspectives jointly propose that reputation is a bidimensional concept consisting of stakeholders’ awareness and perception. For our purposes, we draw on prior literature on CSP reputation (Gardberg & Schepers, 2008) to propose that reputation for CSP consists of two dimensions: CSP awareness and CSP perception. Asper the study of reputation from an institutional perspective (Rindova et al., 2005), CSP awareness refers to stakeholders’ “collective awareness and recognition” regarding the firm’s CSP. CSP perception refers to the stakeholder evaluations of the firm’s CSP as good or bad. As per the study of firm reputation from an economics perspective (Rindova et al., 2005), CSP perception can be seen as reducing the uncertainty caused by information asymmetries that stakeholders face in dealing with firms (Lopatta, Buchholz, & Kaspereit, 2016).
According to Aidoo, (2012), Informal giving or horizontal philanthropy has been part of Ghanaian historical, traditional and religious contexts where people give to support the poor in society. In most traditional societies, horizontal philanthropy is an important tool for addressing poverty and social exclusion because it is considered as self-help. While giving is mostly in kind such as emotional support and the provision of food, clothes and advice, these acts are important social protection mechanisms. This is informed by the belief that the wellbeing and welfare of members is a communal responsibility. Therefore, the aim of giving is to promote redistribution, especially in traditional Ghanaian societies informed largely by the understanding of economy of affection. Here community structures and mechanisms are developed to ensure resource distribution, which is also informed by future expectations of reciprocity. This form of philanthropy is akin to the idea of ‘philanthropy of community’ where community members support each other (Wilkinson-Maposa et al., 2005). Giving also serves as an initiator and stabiliser of social relationships as well as an assertor of social status. For this reason, traditional leaderships including chiefs and queen mothers have been instrumental in acts of giving by playing both coordinating and care-giving roles with regard to the welfare of their people. This supports the observation by UNDP (2017) that chieftaincy institutions in Ghana have served as an important governance structure by becoming centres for philanthropy and charity in society.
Moir (2001) and Wilson (2000) argued that there are a multitude of reasons behind the motivation of an organization to engage in Corporate Social Responsibility. According to William et al (1997), often organizations tend to seek for appropriate information to increase their sales volume. However as they go for new markets, they forget and ignore the existing ones, defect to the competition for the support and service that was promised by the selling organizations. Therefore he urges organizations to always conduct after sale service and investigations about their customers to obtain information about whether satisfaction has been obtained or not. This helps them to cope up with new strategies to maintain their customers to increase their sales volume. Albert (1993) argued that buyers especially of high class services tend to resist new services for fear of quality. He therefore recommends organizations to establish such information through marketing research to break through that fear to be able to realize an increased level of sales.
Ramani and Kumar (2008) commented that organizations need to develop and adopt a business orientation that allows them to survive in an increasingly competitive market place. They further reiterated that Corporate Social Responsibility may be conceptualized as a business orientation.
If an organization prescribes to a business orientation, then it is assumed that the firm will exhibit corresponding capabilities that are aligned with that orientation (Day 1994).
From marketing studies which were conducted, ceteris paribus, a company’s practices of CSR can actually attract customers. In a national survey done by Smith and Alcorn (2009) found that 45.6% of the participants indicated that they were likely to shift brands in favour of those who donates to charitable events. This implies that CSR investment can positively affect market share of any entity leading ultimately leading to increases in revenue. Revenue increases can be reached indirectly through improvement in brand image or directly through market development.
Before making any purchase decision, customers consider a company’s CSR activities (Bhattacharya and Sen 2004, Penn Schoen Berland 2010). Their research suggests that customers are willing to spend an extra amount for products of those firms with high CSR engagement and practices. Work from other authors in the same discipline argue that although consumers are not prepared to pay a higher price, they are more likely to purchase goods from organizations which are into corporate social responsibility. These results support Baron’s (2001) insight that “a practice that is labelled as socially responsible raises the demand for the firm’s products”. Some companies carry out strategic CSR activities which positions themselves to maximize firm value.
A majority (77%) of consumers think that companies should be socially responsible, according to a survey by branding company Landor Associates cited by the University of Pennsylvania’s Wharton School. Consumers are drawn to those companies that have a reputation of being a good corporate citizen. Research at Tilburg University in the Netherlands showed that consumers are prepared to pay a 10 percent higher price for products they deem to be socially responsible. CSR practices must have a direct financial impact which refers to cumulative financial impact, where there is improved access to capital, reduced penalty payments, direct cost savings due to proactive measures, improvements in investors’ relations and shareholder value, and also impact on returns and revenues directly attributable to responsible business practice.
Whilst on the other hand, similar studies established different results which showed that CSR actions and investments leading to additional costs for an organisation, which would lead to a comparative disadvantage as compared to their rivals without those actions. Costs can be separated into opportunity costs, sunk costs and recurrent costs. Opportunity costs include any activity that could not have been undertaken due to capital and labour being bound to the CSR activity, which might result in lost revenues (Sprinkle & Maines, 2010). Some scholars (Economist, 2004) presume CSR may cause companies to add additional costs which will reduce their profits. The Economist, 2005 contends that CSR reduces both profits and social welfare due to most of CSR activities having at least some cost. Therefore, CSR seems only increase the total expense and lead companies get in losses and no advantages at all.
Carrol (1979) notes that organizations have four responsibilities or obligations to the societies in which they operate. These are economic, legal, ethical, and discretionary obligations. The economic and legal responsibilities are obligations that have always existed for organizations and obligations that will continue to exist in the future regardless of further changes in the mindset of consumers (Balmer et al. 2007; Drucker 1984). They include producing a product that is demanded by consumers and ensuring that the organization is obeying legislations enacted by the government at all levels.
Being socially responsible has been linked to an organization achieving a positional advantage (Garriga and Mele’ 2004; Porter and Kramer 2006). According to the authors, a firm that has a strong Corporate Social Responsibility orientation will have invested in creating continual superior value for its customers, as a key stakeholder group. The superior value that is consequently present is unique to the firm and helps to strengthen the positional advantage the firm has over its competitors.
Numerous other studies, however, suggest that, as a result of a firm engaging in socially responsible practices, overall profitability of the firm is enhanced (Berrone et al. 2007; Mc Williams and Siegel 2000; Orlitzky et al. 2003). Mc Williams and Siegel (2000), in their analysis argue that there has been mixed results of the financial impact of such well –doing strategies on short –term and long term profitability of the organizations. Corporate social responsibility and an organization’s goals share a broader connection and much research supports a positive correlation between corporate social responsibility and an organization’s financial performance (Lee 2008).
When annual statements of companies disclose improved sales turnover, this is an indication that these companies are capturing larger market shares through customer goodwill. From this finding, the research deduces that, within the Ugandan firms, environmentally friendly practices affect corporate performance and corporate image. Hence, Environmental investment is not a wasteful venture, but is part of corporate strategy, as well as, corporate responsibility to comply with regulations and support the environment while at the same time achieving the economic goal of the firm.
Auperle and Harfield (1985), Cochran and Wood (1984) follow a similar line of research by investigating the relationship existing between corporate social responsibility and firms’ performance.Lankoski (1998) in his doctoral dissertation analyzed, at firm level, the relationship between environmental performance and economic performance. His data shows a correlation between environmental performance and economic performance and corporate social and environmental investment. While some companies may start reaping within a short period, others may experience economic gain only after a long period. According to Hillman and Kein (2001) not all social investment may yield return in a financial form but may boost corporate competitive strategy and be of strategic value.
Corporate philanthropy is in decline. Charitable contributions by U.S. companies fell 14.5 % in real dollars last year, and over the last 15 years, corporate giving as a percentage of profits has dropped by 50 %. The reasons are not hard to understand. Executives increasingly see themselves in a no-win situation, caught between critics demanding ever higher levels of “corporate social responsibility” and investors applying relentless pressure to maximize short-term profits. Giving more does not satisfy the critics he more companies donate, the more is expected of them. And executives find it hard, if not impossible, to justify charitable expenditures in terms of bottom-line benefit, this dilemma has led many companies to seek to be more strategic in their philanthropy. But what passes for “strategic philanthropy” today is almost never truly strategic, and often it isn’t even particularly effective as philanthropy. Increasingly, philanthropy is used as a form of public relations or advertising, promoting a company’s image or brand through cause-related marketing or other high-profile sponsorships. Although it still represents only a small proportion of overall corporate charitable expenditures, U.S. corporate spending on cause-related marketing jumped from $ 125 million in 1990 to an estimated $ 828 million in 2002. Arts sponsorships are growing, too they accounted for an additional $ 589 million in 2001. While these campaigns do provide much-needed support to worthy causes, they are intended as much to increase company visibility and improve employee morale as to create social impact. Tobacco giant Philip Morris, for example, spent $ 75 million on its charitable contributions in 1999 and then launched a $ 100 million advertising campaign to publicize them (Breeze, & Wiepking, 2018).
However, the short-termism prevalent in many businesses create potential barriers for corporations to invest in more long-term sustainability practices (Bansal & DesJardine, 2014). For example, the market’s expectations on quarterly reports may pressure top management to smooth earnings to secure stock prices and as a result possibly sacrificing sustainable value creation (Bansal & DesJardine, 2014). Consequently, leading to potential trade-offs between being sustainable from a long-term perspective or profit seeking from a short-term perspective. However, due to improvements in technology and communication, it is becoming increasingly difficult to ‘get away’ with more questionable unethical corporate behaviours – at least for extended periods of time. Furthermore, since the level of global sustainability reporting is rapidly growing (KPMG, 2013).
There has been an extensive criticism aimed at sustainability reporting, such as it being too costly and complex, debateable in regards of its return on investment, or that the reports are simply used as a tool for ‘greenwashing’ or corporate magic -that is, deprived of any true intentions of actually contributing to society at large (KPMG, 2013). To eliminate such beliefs, as well as motivating sustainability practices into becoming an established part of corporations’ strategies, more evidence is needed showing that corporate sustainability behaviour could be beneficial also from an economic perspective – as opposed to only being philanthropic. Thus, reducing the trade-offs and potentially creating shared value for the corporation as well as relevant stakeholders from a long-term perspective.
2.4 The relationship between community volunteerism and sales performance
Consumers not only want good and safe products, but would also like to know that what they buy was produced in a socially and environmentally friendly way, and are sometimes willing to pay more for products that are produced in a socially and environmentally friendly manner. Loyalty is a combination of product or service quality, price and intellectual or emotional bonding. More and more customers are considering the environmental and social impacts of companies’ activities when they are making purchasing decisions. Customer loyalty can be created through cause promotions, cause related marketing. The companies need to identify and implement the initiative. Brand visibility, recognition and awareness among the stakeholders can be achieved by putting a good CSR plan in place. Cause branding is intended to reinforce or improve a company’s image by demonstrating the company’s support for a particular cause.
In 2013, 62.6 million volunteers participated in community service around the nation (Corporation for National & Community Service, 20 1 5). Volunteers participated in many different types of service including tutoring, office servicing, fundraising, and many more (Corporation for National & Community Service, 20 1 5). In recent years, participation in community service has taken on an integral role in the development of a well-rounded college student (Case, Henck, Schreiner, & Herrmann, 2011). Trends show that male companies are less likely to participate in club and organizations on campus, including community service (Case et al., 2011). The trends also show that males are missing out on cognitive development because of these missing pieces, while females continue to get involved in campus activities (Case et al.2011).
Participating in community service activities has allowed companies to integrate the community development agenda into their companies policy this has thus made it possible for these organizations to make themselves popular (Hoffman, 2018 ). It is not only important to the companies but it is also beneficial to the community surrounding (Spalding, 20 13).
Companies take up voluntary activity for a range of reasons (Francis, 2011; Gage & Thapa, 2012). Passion for a cause and feelings of obligation have been found to underpin volunteering across all types of volunteers. Companies may also undertake volunteering to enhance their resume, to seek out employment opportunities, or to find out if their chosen profession or pathway will suit those (Lee & Won, 2011). For the university, it is important not only to attract companies to volunteering, but also to keep them for future events. Proper human resources policy, the use of existing experience in attracting and retaining volunteers will allow universities to work more effectively with young volunteers. Motivational policy
According to Callan and Thomas (2009), there is therefore need for more research concerning the relationship between sustainability performance and financial performance. This, to be able to determine the level of generalization that is possible between various empirical studies. There is also, to a certain degree, need for updated research, since several previous studies could be considered as dated, due to the fast development of sustainability practices and the surrounding context in recent years (Callan & Thomas, 2009). Furthermore, previous research has focused almost exclusively on U.S. firms (Surroca, Tribó, & Waddock, 2010). Thus, more research should be conducted on non-U.S. companies to be able to establish whether there are any differences between nations; where societal or cultural traditions may differ in regards to how corporations should respond to environmental and social concerns (Callan & Thomas, 2009).
Friedman (2018) argues that corporations engaging in sustainability activities incur more costs, thus reducing their net financial performance (Friedman, 2018). Since these additional costs and administrative burdens may affect the corporation’s bottom line negatively it may potentially lead to competitive disadvantages for the firm (Friedman, 1970; McWilliams & Siegel, 1997; Jensen, 2001; Barnett & Salomon, 2006). Therefore, a focus on corporate sustainability challenges the traditional main objective of corporations, which is to maximize shareholder value. More specifically, according to this view, it is believed that any manager who makes investments that is not beneficial for employees, shareholders or its customers, is believed to abuse the firm’s resources (Friedman, 1970). Instead, the cost of social issues and inequality are perceived as problems that may best be solved by others, for instance the government (Waddock & Graves, 1997) and that corporations, thus, should do no more than to abide the law (Friedman, 1970). Jensen (2001), however, has suggested a more nuanced view on value maximization, in which companies should satisfy the needs of their stakeholders as long as the cost of doing so does not distort shareholder value.
2.5 Influence of improving Ethical labor policies on sales performance
The survival of corporate industries is dependent on maximizing profits from existing capabilities, while recognizing and adjusting to the fact that what may work today may not necessarily work in the future (Kortmann, Gelhard, Zimmermann, & Piller, 2014). To make or maintain their companies’ profitability, leaders of companies must work hard to engage employees (Kortmann et al., 2014). However, leaders may sometimes struggle to adapt their organization in response to change if they limit their focus to existing products and processes (Hill & Birkinshaw, 2012). Understanding how to manage the balance between employee relations, adopting innovation, and maximizing short-term profits is critical to business leaders ensuring a viable future for their corporations (Hill & Birkinshaw, 2012).
The use of advanced technologies, skilled labor, best practices, and education has helped to increase the efficiencies in many major organizations and firms. However, disengaged employees who have lowered productivity since the 2008 financial meltdown have affected the financial performances of many U.S. organizations (Purcell, 2014). The longevity of an organization is affected by employee engagement, which is a factor on the financial performance of the organization (Bersin, 2014). In contrast, improved employee productivity had a positive effect on organizational financial performance.
Negative effects on productivity could be caused by negative interpersonal behaviors that lower employee engagement. Bersin (2014) found that only 13% of worldwide employees are fully engaged at work. In addition, twice as many are so disengaged that this negative behavior is spread to other employees (Bersin, 2014). Leaders of U.S. corporations who incorporate strategic employee engagement behaviors may experience higher employee productivity. This study is limited by the knowledge, experience, skills, and techniques of communication business leaders in Jackson, Mississippi, and the strategies they use to engage their employees.
Employee engagement is critical to any organization. Deci and Ryan conducted the most influential study on employee engagement in 1985 (Berens, 2013). Deci and Ryan (1985) expanded on early work by differentiating between intrinsic and extrinsic motivation. Competence, autonomy, and psychological relatedness which are psychological needs, motivate the individual to initiate behavior essential for psychological health and well-being of an individual and if satisfied may lead to optimal function and growth (Deci & Ryan, 1985). The basic needs of satisfaction have been found to directly relate to dedication of employees (Vandenabeele, 2014).
Dedicated and meaningful work enables employees to realize how valuable they are within the organization and makes them engaged. Bolman and Deal (2014) suggested there is an opportunity for employees’ autonomy when SDT is leveraged, and furthermore, employees can influence those around them. This influence transcends to the benefits of intrinsic rewards. Meaningful work will allow for an increase in employees’ participation; however, it does not guarantee that the employee will be engaged. The need for autonomy, intrinsic rewards, and influence are required to achieve employee engagement (Bolman & Deal, 2014).
Organizations must provide a psychologically safe workplace to improve employee engagement (Kompaso & Sridevi, 2010). The culture of psychological ownership and engagement begins when leaders create a psychologically safe workplace (Dollard & Bakker, 2010). The manner in which an individual feels satisfied and enthusiastic in work-related activities fosters employee engagement (Nasomboon, 2014). Organizations should develop training programs that focus on skills to influence employee performance and engagement. Kompaso and Sridevi (2010) described engaged employees as those who have an emotional connection with the organization. Service training increases engagement and has a direct effect on the organization’s profits (Granatino, Verkamp, & Parker, 2013).
Leaders influence depends on the leadership ability to connect emotionally with employees. I1 suggests this kind of leader can influence employee engagement. Researchers, who have conducted prior research, clearly outline that leadership, retention, and culture are intertwined. Leaders influence culture by acceptance of core organizational values and providing a positive environment with clear communication and engaging employees (Men & Stacks, 2013).
Employees who find themselves subject to greater demands and responsibilities than they are capable of handling suffer from raised stress levels which can be detrimental to an employee’s emotional and physical responses, thus, causing challenges for both the employee and the organization (Leong, Furnham, & Cooper, 1996). Research has linked work stress to role ambiguity and role conflict (Chang, 2008) and indicated that certain factors, such as work overload and poor working conditions often result in negative mental and physical health consequences for employees (Murphy, Cooper, & Payne, 1988).
Armstrong (2009) distinguishes between the concepts of training and development; identifying development as the new skills and knowledge that an employee gains from his/her company that help to fit and progress into a future position. Training helps employees to practice their current skills to a better standard, thus increasing performance and helping them to advance in the workplace. Training and development serve to enhance the confidence of employees and can consequently improve their general attitude toward the company. Adequate knowledge and information about their roles and the products or services they are providing helps employees perform better on the job, thus, making them better equipped to assist customers.
In Malaysia, one of the greatest challenging faced by the construction industry is to attract and to attain skilled labour. Low productivity among the labour will give impacts to the construction industry such as cost overruns and schedule delays. Besides that the foreigner labour which is estimated to constitute 70% of the construction workforce were reported to be involved in such social problem, lack of skill and communication problem. In order to expand the economic growth and to compete globally, the construction industry has to continuously improving the standards of construction especially regarding quality of labour performance because productivity is part of a key performance indicator to determine the success of the project. According to Tucker et al., 1999, lack of technical and managerial skills is often identified as one of the major problems of contractors in developing countries resulting in poor competitiveness with their well developed and industrialized counterparts. Technology has a tremendous effect on overall productivity. Tools and machinery have increased both in power and complexity.
Management complicates progress in productivity within the construction industry. Past studies found that poor management was responsible for over half of the time wasted on a job site. Good management is required for profitability and success (Tucker et al., 1999). Toor and Ofori, 2007 have identified that labour morale is also affected by extensive numbers of changes.
Cross-training and multiskilling can reduce unit labour costs (Burleson, 1997). Contracts that create flexible work rules on the job site promise productivity benefits as well. Barriers between trades have historically been a source of problems in construction. Reduction in the percent of the workforce comprised of organized labour and improved project agreements with remaining construction labour organizations have reduced this problem (Tucker et al., 1999).
Ethical labour policies is an essential ingredient of organizational performance and a source of sustainable competitive advantage. Although it is often stated that larger firms are more likely to provide training than small firms, this observation applies only to formal training methods and it is important to recognize that most small firms provide forms of learning and training that are informal in nature. Findings on training provision are highly dependent on the research approach, i.e. whether focused on formal or informal training, the type of training methods included in the research and the staff group targeted, as well as factors such as the growth orientation of the firm, sector and the role of the national training systems and institutions involved. Although there is some evidence for a link between both formal and informal training and positive outcomes at the enterprise level in SMEs, few studies have been able to provide persuasive evidence that training leads to improved performance such as increased productivity. Kenny, (2012) indicates that Ethical labour practices is an important element to unify various company cultures in the corporate group structure. Successful cultural integration within the corporate group is an important element to maintaining successful communication and improving performance (Nesterova, 2018). Establishing an effective strong corporate values in the corporate group is necessary to improve performance and productivity (Gajewski, 2018).
Pyeman, et al., (2015) notes that organizations have four responsibilities or obligations to the societies in which they operate. These are economic, legal, ethical, and discretionary obligations. The economic and legal responsibilities are obligations that have always existed for organizations and obligations that will continue to exist in the future regardless of further changes in the mindset of consumers (Kucharska, & Wildowicz-Giegiel, 2017). They include producing a product that is demanded by consumers and ensuring that the organization is obeying legislations enacted by the government at all levels.
Being socially responsible has been linked to an organization achieving a positional advantage (Kucharska, & Bedford, 2019). According to the authors, a firm that has a strong Corporate Social Responsibility orientation will have invested in creating continual superior value for its customers, as a key stakeholder group. The superior value that is consequently present is unique to the firm and helps to strengthen the positional advantage the firm has over its competitors. Numerous other studies, however, suggest that, as a result of a firm engaging in socially responsible practices, overall profitability of the firm is enhanced (Idris, 2015).
Personal selling is an interpersonal influence process involving a business promotional presentation conducted on a person-to-person basis with the prospective buyer (Reid, 1981). Kotler (2006) defines personal selling as face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions and procuring orders. Jobber (2007) also describes personal selling as the marketing task that involves face-to-face contact with a customer. Personal selling permits a direct interaction between buyers and sellers. Okyere et al. (2011) noted that this two-way communication practices means that the seller can identify the specific needs and problems of the buyers and tailor the sales presentation in the light of this knowledge.
You still have not grasped how this chapter should be written. Kindly refer to the earlier comments.
However, as a reminder this is the format for second chapter as per the University guidelines:
- Chapter title: Literature Review
- Introduction
- Theoretical review
- What is a theoretical review and why must you include it in your research?
- You should indicate; the author, year, the prevailing circumstance, how the theory (ies) has been used by other researchers (critiques) and how it will be used/its relevance in your study has to be highlighted and analytically evaluated.
Conceptual review
- Explain to the reader what this section s about i.e; what is a conceptual review?
- Your review of the concepts is very limited. You need to clearly explain the different concepts as indicated in the conceptual framework and with some detail as possible. This section gives you the opportunity to tell the reader that you understand the different concepts
- Try to explore what other researchers have said about the concept you are dealing with.
Empirical Review
- The empirical review should be done objective by objective highlighting what others have said about your research objectives
- The review should therefore demonstrate to the reader why the writer’s research is useful, necessary, important, and valid.
- The review should demonstrate your thoroughness in the field being investigated by critically reviewing empirical studies that have been done in the same or related study.
- Your review unfortunately runs short of this thoroughness and this could be indicative of having not widely explored what others have written on the same.
Summary of the Literature Review
- In this section you should identify the key lessons learnt from the literature review. The gaps that have been identified in the literature which the study intends to address have to be highlighted.
- Your primary purpose here is to show readers that you are familiar with the field and are thus qualified to offer your own opinions.
- However, your larger purpose is to show that in spite of all this wonderful research already done on your subject area, no one has addressed the problem in the way that you intend to in your current proposed study. This gives your summary a purpose.
Follow this format in writing the literature review
CHAPTER THREE
METHODOLOGY
This chapter will include the research design, study population area, sample size, sampling techniques and procedure, data collection methods, data collection instruments, validity and reliability, data quality control, data analysis, data measurements, ethical considerations and limitations of the study and it will provide justifications of the methodology that will be used for the study. The research design and analytical path of any research project should have a specific methodological direction based on its research objectives and framework.
Fisher (2007) states that a research design is defined as a detailed outline of how an investigation takes place. The study will adopt a descriptive survey design which will provide descriptions of the variables to answer the research questions. This study will use two approaches; the qualitative and quantitative research design. Quantitative design also allows comparisons between respondents, giving the right perspective on the variables under study (Riffe, et al., 2019). quantitative design is based on measurement of quantity hence this will be used in calculating simple percentages and the number of respondents (Gray, 2019). The choice of this technique is also guided by the fact that the study aims at generating findings, which would facilitate a general understanding and interpretation of the problem. The quantitative data will be triangulated with Key Informant Interviews to provide explanatory information to the statistical data.
Martin, (2019) defines a study population as the group in which a researcher wants to pick a sample from in order to make generalizations. The study will specifically focus on the employees of MTN Mbale branch since they are the people who have clear information regarding the subject under study.
Category | Population size |
Top management | 4 |
Managers | 12 |
Division Heads | 6 |
Sales representative | 20 |
Financial managers | 18 |
Total | 60 |
Source: source MTN Mbale branch which year?
What is sampling? This study will employ both probability and non-probability sampling techniques. Probability sampling techniques will include simple and stratified random sampling which will be used to select key respondents of the study. This will ensure that there is representativeness. Besides, it will provide an equal chance to all of being selected. Non-probability sampling techniques will include purposive; namely key informants to ensure people with particular information about the subject under study are selected. Snow ball sampling will be used to reach respondents through referrals and enable the researcher interview respondents who can provide data on the topic under study.
3.4 Determination of the sample size
Mugenda and Mugenda (2018), argue that it is impossible to study the whole targeted population and therefore the researcher shall take a sample of the population. A sample is a subset of the population that comprises members selected from the population. Using Krejcie and Morgan’s (1970) table for sample size determination approach, a sample size of 52 employees will be selected from the total population of 60 employees.
Table 1: Population, Sample size and Sampling technique
Source: MTN Mbale branch Employee List, (2016)
Determination of the sample size comes before the sampling techniques section
Purposive sampling
The purposive sampling technique, also called judgment sampling, is the deliberate choice of an informant due to the qualities the informant possesses.
Simple Random sampling
A simple random sample is a subset of a statistical population in which each member of the subset has an equal probability of being chosen.
3.5.0 Data sources and collection instrument
Majorly, two types of data sources – primary and secondary will be used for this study. Primary data: This is the data that is collected from the field by the researcher while Secondary data: is data which has been collected by individuals or agencies for purposes other than those of a particular research study.
3.5.1 Data sources, Collection Procedure and Instruments
Two types of data namely primary and secondary data will be used to collect data using different methods. Primary data will be collected using questionnaires and direct interviews. The study will adopt a mixture of qualitative and quantitative methods to obtain data on the topic under study. Qualitative data will be collected using interview guides and will be used to collect data on feelings, beliefs and attitudes regarding the subject under study. Quantitative methods will be used to generate quantifiable data, using a questionnaire, which will be the main instrument used because of its convenience and efficiency in data collection. The different tools and data sources will be used to make triangulation feasible (Amin 2005).
Secondary sources of data that will be reviewed include scholarly books, magazines, dissertations journals and articles. This source is useful in collecting data from already written literature for example e-books, journals, published articles and periodicals as part of literature review. Documentary resources will be classified in order to facilitate the data collection and textual analysis (Mubazi, 2008).
3.6 Data Collection Methods and Instruments
The study will adopt a mixture of qualitative and quantitative methods. Qualitative data will be collected using interview guides. The use of interview guides to enable data collection on feelings, beliefs and attitudes regarding the subject under study. While quantitative data will be collected using a questionnaire.
Ahuja (2009) defines a questionnaire as a structured set of questions that are given to people in order to collect facts or opinions about something. The researcher will use closed-ended questions because they are easy and quick to answer, and they are helpful in improving consistence of the responses.
According to Ahuja (2009), an interview is a two-person conversation initiated by the interviewer for the specific purpose of obtaining research-related information. It focuses on the content specified by the research objectives, description and explanation. An interview guide, which is referred to as a set of questions for which answers, will be used by a researcher to interview respondents. The use of this tool gives the researcher control over the line of questioning hence time saving. Interviews will be conducted in a quiet place without noise with the key informants
Like parents.
The researcher will obtain a recommendation and an introductory letter from Uganda Martys University, after which he will seek permission from the university.
3.9 Data Quality Control of the Instrument
3.9.1 Reliability of the questionnaire
According to Mugenda and Mugenda, (2003) reliability is the measure of the extent to which research instruments are able to provide the same results upon being tested repeatedly. Crobach’s coefficient alpha (a) as recommended by Amin, (2005, P.302) will be used to test the reliability of the research instrument. The instrument is deemed reliable if reliable of 0.7 and above is obtained and therefore, it will be adopted for use in the data collection.
Formula for reliability is
= ()
Where = alpha reliability co efficiency.
K=Number of items included in the questionnaire
= sum of variance of individual items
= variance of all items in the instrument.
To ensure credibility and trust worthiness of qualitative data the researcher will ensure that only the officials who are employees of MTN will be interviewed.
The coefficient ranges between a=0.00 for no reliability, a =1.00 for perfect reliability. The closer alpha gets to 1.0 the better. If the study findings result to Cronbanch’s Alpha of 0.7 and above, this will signify that research instrument is good enough for the study. According to Amin (2005), all the measurements in the instrument that show adequate levels of internal consistency of cronbach’s alpha of 0.77 and above are accepted as reliable.
3.9.2 Validity of the questionnaire
Validity is defined as the extent to which results can be accurately interpreted and generalized to other populations (Oso & Onen, 2008). While Borg & Gall, 1989 as cited in Onyinkwa, (2013) validity is defined as the degree to which results obtained by the research instrument correctly represented to the phenomenon understudy and Mugenda & Mugenda, (2019) as the accuracy and meaningfulness of inferences which are based on the research results.
Amin, (2005) recommended minimum CVI of 0.7 to be used. Validity will be tested using content validity index which involves judges scoring the relevancy of the questions in the instruments in relation to the study variables.
The formula for Content Validity Index is;
CVI =
Where CVI = content validity
n= number of items indicated relevant.
N = total no. of items in the instrument
In this study, validity will be achieved by establishing content validity. The researcher will achieve content validity by using the experts to assess the validity of the research instrument. The experts especially research supervisors and consultants from Uganda Martys University will be given data collection tools to assess whether the items in the instruments are valid in relation to research topic, objectives, and questions. From the instruments they will declare some items valid and others invalid. Those declared invalid will be dropped, others adjusted, while the valid ones will be maintained. Then content validity index (CVI) will be computed by dividing the number of items declared valid by total number of items/questions in the data collection instrument.
3.10 Data Collection Procedures
The researcher will obtain an introductory letter from Uganda Martys University to seek permission and enable easy access of information by the researcher from MTN Mbale branch, after the permission is granted from, the researcher will go ahead and administer questionnaires and interviews will be done for the selected respondents however the researcher will seek the consent of the respondents before being given questionnaire and the respondents will be informed that the study is strictly for academic purposes.
3.11 Data Processing and Analysis
This section covers methods of data processing and analysis.
In order to ascertain the accuracy, consistency, uniformity, proper arrangement and completion of the data, the researcher will use the computer for data entry, editing and data coding. The computer will be used because it increases the speed of computation and data processing and handles huge volumes of data, which is not possible manually. It facilitates copying, editing, saving and retrieving the data easier and validation, checking and correction of data.
Data collected will be checked, coded and edited for completeness and accuracy. Data will be analyzed using the statistical package for social scientists (SPSS) version 21.0 for Windows. It will be analyzed using frequency distribution tables, excel spread sheets and Spearman correlation to determine the degree of relationship between variables. Qualitative data will also be used to analyze descriptive statistics using opinions and attitudes of respondents and developing themes.
- The consideration of ethics in research, and in general business for that matter, is of growing importance. It is, therefore, critical that you understand the basics of ethical research and how this might affect your research project.
- There are a range of interactions in your research that might occur, including in-depth interviews, focus groups, surveys, or even observing people’s behaviour, researcher’s relations with sponsors of research, those who permit access to sources of data, and research participants/respondents.
- Though all researchers (student, professional, or academic) are well intentioned, there is the possibility that interaction with participants may inadvertently harm them in some unintended way.
- It is your responsibility to consider whether any type of harm could occur when you plan your research and to ensure that mechanisms are instituted to remove it. It is, therefore, essential that you carefully evaluate the potential for harm to arise and ensure that you:
- behave according to appropriate ethical standards
- consider how your research might negatively affect participants
- protect yourself, your supervisors, and your institution from being placed in situations in which individuals could make claims of inappropriate behaviour, resulting in public criticism or even your being sued.
- Hence this section should highlight and show how you handled the ethical issues of data collection, confidentiality and anonymity, informed consent, voluntary participation (Involving participants in research without their knowledge), informed consent, the potential for harm (physical harm, psychological harm, emotional harm, embarrassment), communicating the results (plagiarism, academic fraud, and misrepresenting results), and more specific ethical issues (Conflicts of Interest, Focus Group Participant Identification, Deceit, Video/Audio Taping etc.)