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Using Corporate Social Responsibility (CSR) to Build Brands

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Using Corporate Social Responsibility (CSR) to Build Brands Using Corporate Social Responsibility (CSR) to Build Brands: A Case Study of Vodafone Ghana Ltd George Kofi Amoako Thesis submitted in fulfilment of the requirements for the award of the degree of Doctor of Philosophy in Marketing April, 2017 Declaration ―I, George K. Amoako, declare that the PhD thesis entitled Using Corporate Social Responsibility (CSR) to Build Brands: A Case Study of Vodafone Ghana Ltd contains no material that has been submitted previously, in whole or in part, for the award of any other academic degree or diploma. Except where otherwise indicated, this thesis is my own work‖. Signature: ___________________ Date: ______________________ II Acknowledgements This thesis would not have been possible without the support of numerous people, whom I wish to acknowledge. First, my deepest gratitude goes to my principal supervisor, Professor Nana Owusu Frimpong, for his commitment, invaluable supervision, scholarly support and dedication of time, without which this thesis would not have become a reality. Secondly, I am thankful to my co-supervisor, Dr. Edwin Muji, for his scholarly support and commitment of time throughout this process. My sincere thanks go to the management of Central University College, Accra, Ghana, for their financial and moral support. Furthermore, I am grateful to Chiara Francesconi, Research Administrative Officer at the Faculty of Business and Law, London Metropolitan University, for her frequent responses to my enquiries during my PhD work: I will admire their dedication throughout my life. I could not have completed this journey without the love and friendship of my family and friends. III Dedication This thesis is dedicated to my beloved wife, Cynthia Amoako, and my three children, Nkosuo, Yaw and Nhyira, for their love, patience and encouragement during this long journey and to my beloved brother, Rev. Addai Dapaah, my mother and my siblings, who were there to support me in my education. IV Abstract The concept of corporate social responsibility (CSR) has received much attention over several decades. This research aimed at investigating the impact of CSR on organisational brand value. This thesis conceptualises CSR using the stakeholder theory approach as a brand building tool to increase organisational brand value emphasising the strategic importance of CSR and its potential to create mutually beneficial outcomes for organisations and their stakeholders. This thesis proposes that firms can gain increased organisational brand value and enjoy superior performance by incorporating CSR as an integral component of their corporate brand building strategy. A new and empirically tested CSR-brand strength- organisational brand value conceptual framework was developed in this thesis. The data was analysed to identify the significant relationships amongst these three main variables using the structural equation model (SEM) PLS.The first round of data collected were qualitative and was subjected to content analysis. It comprised of responses from the general public, customers, academic and industry practitioners. The results pointed out that most respondents understood what CSR is about and were aware of Vodafone‘s CSR activities in Ghana. They also indicated that culture has an effect on organisational CSR practice and CSR practice is more proactive in the Western world. The purpose of the second round of data analysis was twofold: to perform confirmatory factor analysis for each of the 65 variable in the model; and to use the structural equation model to examine the hypothesised relationships between CSR, brand strength and organisational brand value. By using the discriminant validity correlation matrix table, a positive relationship between all the variables of brand strength and organisational brand value was established. However, no evidence was found to support the mediating effect of brand awareness, on organisational brand value when SEM was used. Importantly, of the seven variables of brand strength only brand awareness did not significantly contribute to organisational brand value. Moreover, brand knowledge was found to make the greatest contribution to organisational brand value. In summary, this thesis argues that the results support the proposition that CSR has a direct and positive impact on organisational brand value, therefore management of firms in the telecommunications industry in Ghana can use CSR to increase organisational brand value if they incorporate CSR activities appropriately into their brand building efforts. This thesis concludes with a discussion of the limitations of the study and provides recommendations for future research. V Table of Contents Declaration ................................................................................................................................ II Acknowledgements .................................................................................................................. III Dedication ................................................................................................................................ IV Abstract ..................................................................................................................................... V Table of Contents ..................................................................................................................... VI CHAPTER ONE - INTRODUCTION....................................................................................... 1 1.1 Chapter Overview ................................................................................................................ 1 1.2 Background to the Research ................................................................................................ 1 1.3 Limitation of Western CSR Theories .................................................................................. 2 1.4 Purpose of the Research ....................................................................................................... 5 1.5 Aim of the Research............................................................................................................. 6 1.6 Research Objectives ............................................................................................................. 6 1.7 Research Questions .............................................................................................................. 6 1.8 Thesis Structure Outline ...................................................................................................... 7 CHAPTER TWO - CONTEXTUAL FRAMEWORK OF GHANA‘S MOBILE TELECOMMUNICATIONS INDUSTRY ............................................................................... 9 2.1 Structural Adjustment Programme and the Economic Recovery Program ......................... 9 2.2 Perspective of the African Telecommunications Industry ................................................. 11 2.3 Gross National Income and Fixed Broadband in Sub-Saharan Africa .............................. 12 2.4 Mobile Telephony Growth in Africa ................................................................................. 14 2.5 Ghana‘s Mobile Telecommunications Industry ................................................................. 16 2.6 The National Communication Authority ........................................................................... 18 2.6.1 Services Sector and Mobile Telecommunications Industry in Ghana ............. 19 2.6.2 Competitors in Ghana‘s Mobile Industry ......................................................... 20 2.6.3 Shareholding Structure in Ghana‘s Mobile Industry........................................ 21 2.6.4 Market Share and Performance in the Mobile Industry ................................... 22 2.6.5 Prefix Number Codes for Mobile Operators .................................................... 28 2.7 Key Developments in the Mobile Industry ........................................................................ 29 2.7.1 Africa‘s First Commercial Broadband Network Utilising ‗White Space‘ Broadcast Frequencies Launched in Ghana .............................................................. 29 2.7.2 Deployment of Fibre Optics Cables ................................................................. 30 2.8 Mobile Telecommunications Industry and the Ghanaian Economy .................................. 30 VI 2.8.1 Contribution to Economic Growth ................................................................... 31 2.8.2 Employment Generation by Mobile Telecommunications .............................. 33 2.8.3 Social Contributions of Mobile Telecommunications ..................................... 34 2.9 Service Delivery and Customer Satisfaction by Mobile Service Providers ...................... 35 2.10 History and Activities of Vodafone ................................................................................. 36 2.11 Geographical Coverage .................................................................................................... 37 2.12 Current Activities ............................................................................................................. 38 2.13 World of Difference ......................................................................................................... 38 2.13.1 Health ............................................................................................................. 38 2.13.2 Agriculture ..................................................................................................... 39 2.13.3
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