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Social Responsibility and the triple bottom line

Dr Meshack Khosa General Manager: MTN Foundation 28 JULY 2005. Social Responsibility and the triple bottom line. MTN’s Commitment to Development and Empowerment.

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Social Responsibility and the triple bottom line

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  1. Dr Meshack Khosa General Manager: MTN Foundation 28 JULY 2005 Social Responsibility and the triple bottom line

  2. MTN’s Commitment to Development and Empowerment • “Whilst we make a profit, it is our responsibility to be a contributor to the development and sustainability of the communities we touch and interact with.” Phuthuma Nhleko, CEO MTN Group

  3. What is Triple-Bottom Line? • A triple-bottom-line report discloses three interrelated organizational imperatives • economic prosperity, • environmental integrity • and social contribution

  4. MTN Group Revenue and Profit

  5. The role of private sector in development • Private sector is a key partner contributing to development through funding, expertise, and can mobilise additional local and international resources • Private sector can use its investment portfolio in line with national developmental priorities • Private sector is a creator of jobs and providing incomes to society • Private sector has national license obligations in addition to being a tax payer

  6. MTN Foundation – MTN’s Commitment to Corporate Social Responsibility • The MTN Foundation was launched by Dr Nelson Mandela in 2001 • The MTN Foundation Patrons are: Dr Nthato Motlana, Dr Frederick van Zyl Slabbert, Prof Raymond Parsons, Mrs Albertina Sisulu, Ambassador Barbara Masekela and Professor Jakes Gerwel • MTN Board approved spending 1 % of PAT on CSI • MTN Group to create Foundations in each country operation • During 2004/05 the MTN Foundation spent R92 million on social investment

  7. MTN Foundation Strategic Objectives • Assist in bridging the digital divide through • ICT connectivity in schools/communities • & expanding the network of ScienCentres Science and Technology & ICT Enterprise • Position MTN Group a a leading • contributor to art development Arts and Culture • Promote entrepreneurship training & • opportunities among rural women Education • Support HIV/AIDS education, outreach & job creation programmes HIV/AIDS

  8. MTN Group Payment to Local Suppliers and BEE

  9. MTN South Africa - CSI • MTN SA has over 8 million subscribers in South Africa • MTN SA spent OVER 1% of profit after tax • Foundation budget for 2005/6 is R30 million • Created 110 multi media centres • MTN contributes R2.5 million to CIDA campus over 3 years • MTN ScienCentres reach 250 000 per year • ICT for Business Women Enterprise to reach 500 in 16 Business Centres • Contribute 5000 school connectivity over 8 years • MTN HIV/AIDS programmes reach 11.5 million people per year

  10. MTN Nigeria • Invested US $ 880 million in capital investment in 2004/05 • MTN Nigeria Foundation spends 1% of MTN Nigeria group revenue • Created 24 schools connectivity • CSI focus on health, education and economic development

  11. MTN Cameroon • CSI spend in Cameroon is 1% of MTN Cameroon revenue • R3.1 million was spent on CSI in 2004/5 • R551 million was paid to local suppliers in Cameroon • CSI support in health, economic development and sports development

  12. MTN Uganda • MTN Uganda spends 1% of profit after tax on CSI • MTN Village Phone project in partnership with Grameen Foundation established in 2004 • 1000 Village Phones installed throughout Uganda • Committed to installing additional 5000 Village Phones in the next 5 years

  13. MTN Swaziland and Rwanda • Swaziland • CSI spent in 2005 was over 1% of profit after tax • Support education projects, water projects, and emergency projects • Established schools connectivity project • Rwanda • CSI spent in 2005 was over 1% of profit after tax • Focus on rural development and HIV/AIDS • 2000 community payphones installed in Rwanda

  14. MTN’s ICT & Rural Entrepreneurship Project Vision: Rural communities in which entrepreneurs use ICT to develop and improve business performance. Mission: To enhance rural entrepreneurship through provision of ICT infrastructure, skills development and guidance

  15. Project Principles • Broad-based BEE • Women’s empowerment • Skills development • Sustainability • Innovation • Partnerships

  16. Strategic Objectives

  17. NAFCOC and MTN • MTN is a member and supporter of NAFCOC, CHAMSA and BUSA • Over 10 NAFCOC members are already directly benefiting from MTN programmes • 500 rural business women to be trained will be linked to NAFCOC Business Solutions • 16 ICT Business Centres in rural areas will be associated with NAFCOC programmes at regional level • NAFCOC to consider mentoring the beneficiaries of the ICT for rural women enterprise programme

  18. Total Commitment from the Group CEO and the MTN Group Board • “By investing in our communities, MTN is creating a better African future.” Phuthuma Nhleko, MTN Group CEO

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