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Annual Report : Corporate reputation   Next : Economic performance and governance
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Sustainability review - Contents

Corporate reputation

Corporate reputation

The process

The objective of the corporate reputation audit is to obtain stakeholders’ perspectives of MTN’s reputation in South Africa, Nigeria, Cameroon, Rwanda, Swaziland and Uganda.

MTN’s key stakeholders consist of customers, special publics (which include corporates and SMEs) as well as employees. The corporate reputation audit tracks stakeholder attitudes toward key issues that drive MTN’s reputation as well as indicators such as favourability, communication effectiveness and social responsibility. The reputation drivers have been identified as:

            • Industry leadership
            • Social performance
            • Employee focus
            • Financial performance
            • Product/service quality
            • Community
            • Management quality
            • Customer focus

In addition, the process considers the behavioural impacts that stem from these reputation drivers. These include:

  • Whether stakeholders would invest their money in the company
  • Whether they would recommend the services of MTN
  • Whether they would be willing to work for the company
  • Whether they would believe any negative information on the company
  • Whether they would support the company in a crisis
  • If they are existing employees, whether they would continue working for the company
  • Whether they would support the company on key issues
  • Whether they would purchase products or services from the company

Group results

MTN conducted its fourth Group-wide corporate reputation audit between May and July 2005. The overall Group findings (indexed score1) reveal a consolidation of the Group's performance at levels similar to those achieved over the previous two years. The table below summarises the results of our annual corporate reputation review for 2005 compared to the results of the previous two years. Ratings are scored below:

  2005
%
2004
%
2003
%
Industry leadership 75 75 74
Product service/quality 68 68 70
Social performance 67 67 67
Community 64 65 67
Employee focus 64 65 67
Management quality 68 68 69
Financial 75 76 76
Customer 67 67 63

Each operation implements measures to address issues highlighted in the review.

1Corporate reputation index is a composite measure comprising the reputation drivers as well as indicators of favourability, communication effectiveness and social responsibility.

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Operation results December 2005

South Africa

  • Of all the leading companies referenced in the South African survey, MTN rates as the company with the best overall reputation. That said, if employees were excluded from the corporate reputation audit, MTN would slip down to fourth place in the survey.
  • The company's performance against the eight reputation drivers shows slight declines in all ratings between 2003 and 2005, albeit within a narrow margin. Overall, all reputation driver scores for the South African operation reflect healthy and consistent levels.
  • In terms of the company's overall performance per stakeholder group:
    • The customer index score is down 5%
    • The employee index score is 59%
    • The special publics index score is down 9%

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Cameroon

  • MTN Cameroon far outperforms all other companies referenced in the survey in terms of best overall reputation – both including and excluding the participation of employees.
  • MTN Cameroon reflects ongoing improvements in terms of performance against most reputation drivers, affirming its strong competitive reputation position. The company’s social performance reflects particularly strong growth over the past three years.
  • In terms of the company’s overall performance per stakeholder group:
    • The customer index score is up 3%
    • The employee index score is 72%
    • The special publics index score is up 4%

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Nigeria

  • MTN rates a joint second place as the company with the best overall reputation compared to leading Nigerian companies. This rating excludes employees. With employees included, MTN rates joint third in the survey.
  • MTN Nigeria’s performance against the eight reputation drivers reflects a tapering off in 2005 compared to the marked improvement shown in 2004. However, 2005 score levels are still above 2003 levels, which were notably low. Financial performance and industry leadership scores are high, while employee focus scores are low.
  • In terms of the company's overall performance per stakeholder group:
    • The customer index score has increased by 1%
    • The employee index score is 53%
    • The special publics index score is down 10%

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Rwanda

  • MTN rates second as the company with the best overall reputation compared to leading companies in Rwanda. This rating includes employees.
  • MTN Rwanda’s performance against the eight reputation drivers shows upward movement compared to 2004. Industry leadership and product/service quality are up and compare favourably with the previous high score reflected in 2003.
  • In terms of the company’s overall performance per stakeholder group:
    • The customer index score is up 2%
    • The employee index score is 70%
    • The special publics index score is up 2%

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Uganda

  • MTN Uganda rates second as the company with the best overall reputation compared to leading companies in Uganda, be it including or excluding employees.
  • The company’s performance against the eight reputation drivers reflects an improvement in 2005, in five out of eight reputation drivers. This follows a decline in 2004. However, 2003 scores remain higher. The financial rating is strong but the employee rating is notably low, showing a consistent downward movement since 2003.
  • In terms of the company's overall performance per stakeholder group:
    • The customer index score is down 2%
    • The employee index score is 72%
    • The special publics index score is up 4%

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Swaziland

  • MTN rates third as the company with the best overall reputation compared to other leading Swazi companies – including or excluding employees.
  • The company’s performance against the eight reputation drivers reflects a consistent reduction – except for customer focus – since 2003. Customer focus has improved significantly but ratings for community involvement and employee focus are notably poorer.
  • In terms of the company’s overall performance per stakeholder group:
    • The customer index score is up 4%
    • The employee index score is 41%
    • The special publics index score is down 8%

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Growing reputation management in the Group

As a global technology company, MTN continues to broaden and refine its understanding and management of corporate reputation. As the number of MTN operations has increased the corporate reputation review will be further developed to provide more specific insights for each operation, thereby enhancing the utility of the review for management decision-making purposes.

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