Corporate Social Responsibility:
An Imperative for the fulfillment of the Promise of the Digital Age
Jimson Olufuye, fncs, ficma, PhD
ITAN President, Vice Chair’ WITSA (sub-Saharan Africa)
Member International Chamber of Commerce (ICC)
CEO Kontemporary Group
3/14/2016
Monday, January 10, 2011
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Agenda
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Introduction
Definitions
Looking at the Big Picture
Current Realities: Africa Connectivity Infrastructure
Cases of Failures of CSR: The Congo Mineral Conflict
Solution: The Congo Mineral Conflict
Cases of Failures of CSR: The Nigeria’s Niger-Delta
Solution: The Nigeria’s Niger-Delta
Lessons Learnt: The Nigeria’s Niger-Delta
CSR: Application to ICT Industry Association
CSR: World Bank Perspective
Conclusion
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Introduction
• About me
www.google.com – Jimson Olufuye
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Introduction
• About ITAN
www.itan.org.ng
- Established in 1991 by IT Companies
- Membership now over 200
- Runs 2 flagship events: Information Technology Public-Private Forum ITPPF
(April) & IT CEO Summit (Sept)
- Joined other stakeholders to form the Nigeria Computer Society in 2002
- Engendered Nigeria’s admission into WITSA in 2008
- Represents Nigeria in WITSA since 2008
- Focus:
- IT Advocacy for market expansion for members
- IT industry Intelligence & research
- Industry capacity building/ Certifications
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Vision:
- To fulfill the promise of the Digital Age for Nigeria
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Introduction
• About WITSA
www.witsa.org
- Established in 1978 in USA
- Membership now about 75 countries
- Controls 90% of global ICT market
- Runs biennially, 2 flagship events: World Congress on IT (even year) & Global
Public Policy Summit (odd year)
- Partnership: UN, ICANN, ITU, ICC, OECD
- Established 7 Regional Secretariats across continents including Africa in 2009.
Nigeria is hosting the African Regional Secretariat thro’ ITAN
- Focus:
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IT Public Policy Advocacy
Global Trade
IT industry Intelligence & research
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Vision:
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Publishes the Digital Planet of global ICT Market Data
To fulfill the promise of the Digital Age for Everyone on earth
Chairman: Dato’ Dan Khoo – Malaysia
Secretary-General: Dr James Poisant – USA
Vice-Chair WITSA (sub-Saharan Africa):
Dr Jimson Olufuye
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Definitions
• Information –
Communications
Technology (ICT) industry
is composed of four
technology categories:
– Computer Hardware:13%
– Computer Software: 9%
– Computer Services: 20%
– Communications: 58%
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Definitions
• Computer hardware: This includes computers,
storage devices, memory upgrades, printers,
monitors, scanners, input-output devices,
terminals, other peripherals, and bundled
operating systems.
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Definitions
• Computer software: This includes software
such as operating systems, database systems,
programming tools, utilities, and applications.
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Definitions
• Computer services: This includes outsourced
services – whether domestic or offshore –
such as IT consulting, computer systems
integration, outsourced custom software
development, outsourced world wide web
page design, network systems, network
systems integration, office automation,
facilities management, equipment
maintenance, web hosting, computer disaster
recovery, and data processing services.
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Definitions
• Communications: This includes voice and data
communications services and equipment.
– Communications services include local and long
distance wire-line telecommunications, wireless
telecommunications, paging, satellite
telecommunications, internet access, private line
services, and other data communications services.
– Communications equipment includes wire-line and
wireless telephone handsets, legacy and IP PBXs, key
systems, wired and wireless LAN equipment, WAN
equipment, central office equipment, modems,
multiplexers, and telephone answering machines and
systems.
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Definitions:
Ave Growth rate over the next 4yrs
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Computer Services:
Computer Software:
Communications:
Computer Hardware:
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7.9%
7.7%
7.4%
6.6%
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Definitions
• Broadband
Simply refers to a high data rate connection to
the internet with 1meg upstream and 4meg
down stream according to the US FCC.
The data rate is often adjusted as the market
roles out faster services. In this regard,
broadband used to be 128kbps/256kbps when
narrow band was 56kbps of telephone modem.
The term itself is technology neutral; broadband
can be delivered by a range of technologies
including DSL, WiMAX or next generation access.
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Definitions
• Convergence
Convergence in this context is
a technology enabled digital
state in which voice, texts,
video, pictures, broadcasts,
presentation, streaming
media, global connectivity
and personalized services;
are provided through
common platform – Internet
Protocol.
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Looking at the Big Picture
• The global ICT market is worth more than US$4tr according to WITSA
Digital Planet 2010. This is so with about 2.2billion people in the world
connected digitally. What would happen if the remaining active world
population ie another 4billion people is connected? The implication is
clear, more businesses and profit for companies.
• More than 20terabit/s ring of fibre will surround Africa by end of first
quarter in 2011 and without peace and order the last man cannot be
reached.
• Therefore, my advocacy is for the private sector government to undergo
deep self examination and take strong steps to avert further conflict on
the Congo and even in Nigeria and other potential locations in our global
village where mineral raw materials are sourced.
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Current Realities:
Africa Connectivity Infrastructure
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Cases of Failure of CSR:
The Congo Mineral Conflict
• The conflict in eastern Congo, the deadliest war on earth is a case of
failure to address CSR. In the absence of law and order, rebel groups, local
militias, and the Congolese army fight for access to Congo’s abundant
minerals, to the tune of $180 million per year, according to estimates by
The Enough Project.
• The mineral ores mined in Congo, like tin, tungsten, tantalum, and gold, all
end up in electronic devices like cell phones, MP3 players, and laptops.
http://www.flickr.com/photos/grassrootsgroup/sets/72157621838823803/sh
ow/
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Cases of Failure of CSR:
The Congo Mineral Conflict
• What is expected to advance the fulfillment of the digital
promise is driving digital penury, hopelessness and hell and the
underlining economic interest is to blame.
• In the conflict, women and children are being displaced en
masse, sexually assaulted and forced to take part in the trade,
whether at gunpoint or by economic necessity. Well over 5.4
million people have been killed, either directly by violence or by
the myriad hardships the conflict has caused.
• Companies that do not support vigorously the effort to stop
conflicts in Congo are unwittingly committing a crime against
humanity.
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Cases of Failure of CSR:
The Congo Mineral Conflict
• “Making the minerals trade more transparent and accountable could not
only help bring an end to the conflict, but would also promote sustainable
economic growth, strengthen Congolese state institutions, and reduce
corruption in the security services,” student leaders Sara Egozi and Liza
Starr wrote in the Yale Daily News recently.
• When trade rules are changed, it is to pressure electronics companies to
take responsibility for the minerals in their supply chain, so that other
reforms necessary for ending the conflict can take hold. This line of action
should be pursued with vigor.
• But why should companies be forced to do what is right? Power without
control is destructive…
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Cases of Failure of CSR:
The Congo Mineral Conflict
• Here was President Obama signing the highly anticipated financial reform
bill on September 30, 2010. With it, the United States took a significant
step to address the mineral trade fueling conflict in the Democratic
Republic of Congo.
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Solution:
The Congo Mineral Conflict
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The financial regulation Act includes a provision requiring U.S. companies that import
products containing certain minerals to file an annual report declaring whether they
source their minerals from Congo or one of the nine surrounding countries, since much
of Congo’s mineral wealth is smuggled out of the region through its neighbors. If a
company declares that its supply chain passes through the region, it will have to report
what steps it is taking to trace the origin of the minerals and ensure that its purchases
don’t fund armed groups responsible for atrocities in eastern Congo.
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While the provision doesn’t ban companies from importing conflict minerals into the
United States, companies will have to publish this information on their websites.
Consumers will then be able to choose which products to buy based on a company’s
track record in Congo. This would give advocacy groups information to organize around
and make the consequence a market driven one.
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There’s a long road ahead, no doubt littered with ploys by those who currently benefit
from the trade in conflict minerals. But consensus is clearly building around the belief
that cutting off militias in eastern Congo from a key source of funding is good not just
for Congolese civilians and the Congolese government, but also for U.S. & other
consumers and companies that prioritize social responsibility.
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Solution:
The Congo Mineral Conflict
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Another step that can be taken is a combination of UN Military intervention
through the strengthening of the Congolese Military with the support of the AU
coupled with sanction of neighbouring Countries involved in the Congo illicit
mineral plunge; and the convening of national conference among the Congolese
people to determine the most practical income sharing mechanism on the
minerals and the enthronement of a Social Responsibility culture on the operators
of the mines based on the rule of law.
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It is only when this is done that respite can quickly come for the women, children,
unwilling victims of Eastern Congo and elsewhere in the world.
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Cases of Failure of CSR:
The Nigeria’s Niger Delta
• Accumulated neglect of corporate social responsibility by MNC eg Shell,
Exxon Mobil, over a significant period of time in the oil and gas rich Niger
Delta region…
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Cases of Failure of CSR:
The Nigeria’s Niger Delta
• Accumulated neglect of corporate social responsibility by MNC eg Shell,
Exxon Mobil, over a significant period of time in the oil and gas rich Niger
Delta region caused the eruption of militancy, kidnapping and other vices
in the area.
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Cases of Failure of CSR:
The Nigeria’s Niger Delta
• The neglect took the life of Ken Saro-Wiwa, the Ogoni activist and eight
others in 1995 among many others and caused unprecedented
environmental devastation in the region.
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Cases of Failure of CSR:
The Nigeria’s Niger Delta
• Accumulated neglect of corporate social responsibility by MNC eg Shell,
Exxon Mobil, over a significant period of time in the oil and gas rich Niger
Delta region caused the eruption of militancy, kidnapping and other vices
in the area.
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Solution:
The Nigeria’s Niger Delta
• The government of Nigeria lost revenue in excess of US$30b in 7 years due
to the instability; and it took the introduction of amnesty by the Federal
Government of Nigeria in 2009 for some calm to return. A law was also
enacted by the National Assembly of Nigeria to make mandatory Social
Responsibility contribution of operating companies into the cleaning up
and development of the region
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Lessons Learnt:
The Nigeria’s Niger Delta
• Lessons learnt in the oil and gas sector have quickened operators in the
telecom sector to take serious the issue of corporate social responsibility.
Companies like MTN, Zain, Glo to mention but a few are quite popular and
receive good patronage for being socially responsive to the community.
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CSR:
Application to ICT Industry Associations
• While some companies in the Nigerian IT sector pursue some form of
individualistic corporate social responsibilities, their effort is however
incomplete.
• Why? Because they feel there is no need to be part of the organized
private sector industry group to develop the industry.
• I’m talking about the failure of companies like HP, Cisco, Microsoft, Huawe,
Dell etc to be part of the industry association in Nigeria eg Information
Technology (Industry) Association of Nigeria (ITAN) –
www.itan.org.ng
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CSR:
Application to ICT Industry Associations
• Corporate Social Responsibility demands that MNC join hands with local
industry group to accelerate the development of the local community
know-how and capabilities.
• It is not enough to come, do business and make money and that is it. As
global brand, MNC should be part of the happenings in their local
communities. Failure to see the imperative need for this is what
degenerates to violence in the future.
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CSR:
World Bank Perspective
• The World Bank Managing Director, Dr (Mrs) Ngozi Okojo-Iweala (former
Nigeria’s Minister of Finance) said in China recently while addressing
Chinese investors interested in mineral exploration in Africa that the way
business is conducted in African communities should change.
• She said that investors should be transparent with agreement signed,
involve the local communities by providing employment, social amenities
and be involved in local activities as stakeholders otherwise discontent will
brew and the effect of that from experience is conflict as seen in Congo
and the Niger Delta of Nigeria.
• The time to make a change is now.
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Conclusion
• The failure of leading global private sector government to show
responsibility fueled conflicts, wars, kidnapping, rape and the commission
of erroneous crimes in Africa. This development is threatening the
fulfillment of the United Nations Millennium Development Goals by 2015
and stands as one of the greatest obstacles to the achievement of the
promise of the digital age for everyone.
• From Congo to Nigeria, MNC must rethink their corporate social
responsibilities and engage local communities and organizations and be
part of the environment to assure more business and profit on the long
run.
• The need to operate locally through CSR in a globally connected world is
an imperative to avert future conflict and assure the bottom line.
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…
The next generation is watching…
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Thank you…
www.itan.org.ng, president@itan.org.ng
www.witsa.org, jolufuye@witsa.org
www.kontemporary.net.ng, jolufuye@kontemporray.net
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