Balancing commercial objectives with social responsibility and developmental obligations is often difficult, particularly in emerging markets where infrastructure investments required for basic mobile network accessibility are large and where the communities in need of access and developmental support are remotely situated and thinly spread.
While our first mandate is to ensure economic sustainability through infrastructure investment and to secure meaningful returns to shareholders, we understand and accept our developmental role as a responsible corporate citizen in the countries within which we operate.
We achieve long-term sustainability in our operating countries through the following operational activities:
- Our payments to regional governments and regulatory bodies support infrastructure development and social services
- We stimulate regional economies directly and indirectly by supporting local SMEs, generating opportunities for new entrepreneurs and utilising local suppliers
- We employ local citizens wherever possible and ensure knowledge is transferred from expatriates in local operations to local employees
- We have initiated a process of establishing MTN Foundations in our countries of operation. Through the MTN Foundation, each operation will manage its Corporate Social Responsibility (CSR) projects. Funding for the MTN Foundation will come from up to one percent of annual profit after tax (PAT).
We channel our CSR spend toward developmental priorities in the countries in which we operate, such as education, health and HIV/AIDS awareness programmes, rural development and entrepreneurial training. During the 2004-2005 financial year, the MTN Group spent R92 million on social investment. In the nine-month period March to December 2005, our CSR investments amounted to R55 million.
Sustainability forms the foundation of the MTN Groups investment philosophy. Actively embedding sustainability principles in the way we do business ultimately impacts on our people, our reputation and our profits. We want to be here, as successful as ever, in the future. We therefore acknowledge that while we must make a profit, it is our responsibility to be a relevant contributor to the development and sustainability of the communities we touch and interact with.
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