Case Study on Zain Mobile Telecommunications Company

Case Study Template – Integrity-Related Practices

Company Name: Zain Mobile Telecommunications Company

Headquarters: Kuwait City, Kuwait

Sector: Public traded company

Number of employees: 7000

Annual gross revenue: US$5.5 billion

Status: Corporate

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Company Description

Zain is currently recognized as a Mobile Telecommunications Company and was founded in 1983. Zain has achieved constant growth and modernization since it was established and had created a commercial presence across the Middle East and Africa in at least 23 countries. Zain can grant services related to data and mobile voice to 42.7 million customers (Zain, 2020). The headquarters of Zain is located in Kuwait and is listed based on the Kuwait Stock Exchange. The main objective of Zain Company is to build a reliable and creative digital-based communication company and serve consumers with simple mobile experiences. There are six basic initiatives on which the business strategy of Zain is dependent. Since the company’s capital is publicly traded and 100 percent free float, there exist no limitations on the shares of Zain Company. Zain Company mainly focuses on experiences of Customer, Management, effective operations. The Investment Authority in Kuwait is recognized as the leading shareholder in Zain Company.

Description of the Integrity Related Practice

As per the analysis, Zain Company has adopted Anti-corruption practices. Anti-corruption mainly refers to the activities that oppose corruption (Unglobalcompact, 2020). In other words, it is the deceitful act of granting and receiving money or other goods with the sole objective of acquiring a favor. Zain Company has framed various anti-corruption policies, comprising maintaining accounting records of a periodic audit, reporting to ensure whether the policies are associated with anti-corruption policies based on global and local issues. Since there are many forms of corruption, anti-corruption efforts greatly vary in their objectives and strategies. Anti-corruption practices mainly comprise assessment of risks, practices based on the supply chain, and reporting. Zain Company was rated first for anti-corruption and simplicity by acquiring a weighted index score of approximately 9.5 points. It has been noted that Zain acquired complete disclosure of accounting based on income, income tax, and investments. Zain proved successful in anti-corruption programs and a section of organizational simplicity with its optimistic outcomes on anti-corruption issues. According to the recent estimates, it has been found that Zain was the only significant company that aimed to recover its reporting measures. Zain had implemented certain requirements and framed relevant policies that assist in its expansion. Zain Company believes that accountability and simplicity are the key factors to be kept in mind while fighting against corruption. The company also firmly believes that business’s honest and reliable practices are required for stakeholders’ benefits. Since the company is listed on the Kuwait Stock Exchange, deliberate objectives must be achieved and operated as per the maximum standards of professionalism. Hence, anti-corruption practices guide to maintain genuine connections with their stakeholders. The management must check whether operations of the business are conducted following efficient standards.

Policy Development

Brief description of the policy– The policy that has been identified in the case study is the anti-corruption policy. This policy conducts all of the business work in an integrated and ethical manner wherein the company takes an approach of zero-tolerance to corruption and bribery and is committed to performing professionally, comparatively, and with integrity in all the dealings of the businesses and affiliations and in the promotion of the global goals.

Process transforming the idea into a policy– Bribery, corruption, and lack of transparency in business transactions have added to a large amount of risks to trade and investment in the region. Transforming the process into a policy and responsibility for developing the policy was introduced by the CEO and the company’s stakeholder with the concept of commitment to honesty and impartiality across the organizational operations to show a positive reputation to the local communities and meet the terms with the legal requirements.

Stakeholder engagement in policy development– In any business, stakeholder engagement is considered important for any organization’s decision-making. Stakeholder engagement indicates the process wherein an organization involves an individual who might be affected by the decisions that have been implemented. Hence, after analyzing the overview of Zain’s policy development, it has been found that the level of stakeholder engagement was active and flexible on adopting the policy for the business advancement (cloudfront, 2020). The company believes that by engaging the stakeholders in the business ethical practices, they got to know about the plans and actions that will affect their goals in forthcoming days. Thus, they will improve their communication and preplan their strategies and operations through long-term advantages that include a brand’s reputation or first-mover benefit. However, the stakeholder engagement had made the policy’s development more transparent and clear to achieve the agreed outcomes and identified the basic responsibility mechanism.

Process for Embedding the Practice within the Organization

The process of embedding the policy of anti-corruption practices had started to provide training to the company’s employees by using several tools, techniques, and accessible resources. Hence, the company trains their staffs on the compliance issues and codes of conduct of Kuwait. The organizational management set the training program wherein the different session was conducted, and that includes training and development program under the supervision of HRM department with communication and information sharing (Shelash Mohammad, 2011). The training concerning the practices that have been adopted by the company focuses on improving individual perspectives towards ethical business practices and should be followed by every individual within the organization. Hence, the organization expects to create a sense of certainty, boost employability, and loyalty in the management. Thus, the training involves planning and supporting the learning activities that resulted in the desired performance range in an ethical means. This will help the organization and the employees achieve the overall purpose of the organization by promoting the productivity and the satisfaction of the employee for a better understanding of the policy adopted by the organization.

The trainers had prepared the materials like presentations, trainee manuals, and gaming software for the training purpose. Hence, they had also prepared training guides that were tailored to the area using examples and language wherein Kuwait and the overseas employees can learn easily. However, the training program’s main purpose was to let the employees know about the organization’s new practices and make them aware of it. In the training session, the employees were trained for 267 hours to beware of the organizational business practices wherein a violation of the policy can be covered up with a huge penalty.

Furthermore, while training the employees, particularly in Kuwait, it has been found that the trainees had faced many challenges regarding the language, legal frameworks, and timing. The other problem faced during the training process was organizing the training session without affecting the technical service standard. Hence, in order to overcome this, the trainees were given rewards to be motivated to attend after their work is over for the nominal interference. Rewarding the trainee for better training purposes had helped the company overcome the problem faced during the training session.

Identification and Reporting of Issues

During the reporting period, there was no major transformation in operations, closing, or expansions. Zain is recognized as a member of the Global scheme of the Mobile Communications Association and went into collaboration for the progress of principles of Mobile privacy. An efficient group-wide company and the five-year plan were framed by Zain in 2014 to change the company from operating in mobile centers to conduct their operations in integrated telecommunications and exclusive experiences based on digital lifestyle. Zain is determined to operate according to its principal stakeholders’ benefits, comprising employees, shareholders, and the wider community. To ensure that the organization remains liable towards its stakeholders and increases the value of shares, accurate policies and Zain Company must promote effective corporate governance. To determine, regulate, and overcome the organization’s risks and limitations, the Zain Company must implement policies and procedures based on risk management. Zain Company plans its audits in association with guidelines framed by the Internal Auditors Institute. Assessments based on materiality are also conducted by Zain Company so that relevant themes that are of great significance to the organization can be defined. Zain began to conduct reports on the agenda of Social Responsibility and Corporate Sustainability and has adopted reliable measures to betterment communities. Despite the obstacles that occurred in the context of operations, Zain achieved remarkable financial performance (Bh.zain, 2020). Zain has maintained a great deal of communication with all its group of its shareholders. Zain has the ability to effectively continue its agenda based on sustainability, which is possible only because of active management. The employees and local management will require adequate training on policies of anti-corruption. The training sessions are normally conducted once a year, and local language should be used so that appropriate policy can easily be analyzed.

Policy Enforcement

The company has an obedience department in order to enforce the practices that handle potential practices of violations. The actions that have been taken by the company for the violations of the practices and the one involved in the violations of practices will be penalized in the form of demotion, termination from the employment, financial fines, lawsuits as well as suspension.

However, for monitoring the practice’s policy enforcement, all the employees, officers, or supervisors must follow the anti-corruption policy. But the main responsibility of this practice is the regional external auditors and compliance panel. Hence, a role has been designated to examine the business’s operations periodically, the records of the company’s accounts, and confirm the business’s ethics to make sure the code of conduct is severely followed. Nevertheless, the company’s management took certain steps to convert the concept of formal policy by defining the change and supporting it to the business goals. Thus, the employees and supervisors were observed on a daily basis to make sure that they are following the procedures of the practices.

Furthermore, in Zain Company, the anti-corruption will be punished or penalized by the organization. In the Middle Eastern countries, passive bribery or corruption will be punished more severely. Hence, certain provisions that exist in a number of Gulf countries present a potential for mistreatment and might impact the country’s ability to effectively avoid the giving of bribes to the officials of the public in the business conduct. Additionally, the fact that reactive bribery is often punished more strictly than active bribery is the other picture of it (Oecd.org, 2020). In some of the nations, the sanctions deliver for active corruption of public officials’ come into view to be much humble for being dissuasive. At the same time, it can be said about the confiscation unavailability of the proceeds of corruption.

Lessons Learned

To achieve success in the regional and global markets, the management has to frame reliable, ethical policies where stakeholders can raise concerns in several regions where it conducts its operations. The anti-corruption policy of Zain influences a company to follow national lawful necessities and preserve a good status. The advantage, which has been acquired, is customers’ trustworthiness, which further leads to subsequent profitability. Both internal and external stakeholders must participate when a particular company is framing ethical policies. It also has to take into consideration distinctions based on the culture in several regions. The policies based on ethics must be applied uniformly to employees, managers, and supervisors. However, the firm should develop a secure and reliable identification and reporting technique to increase the policy’s effectiveness. Various experts of industry must also be consulted to serve as a guide on certain matters of ethics. While framing anti-corruption policies, Zain must include financial experts from several regions to conduct business operations smoothly without any obstacles.

References

Bh.zain, 2020. [online] Bh.zain.com. Available at: <https://www.bh.zain.com/en/zainbahrainsite/csr/Documents/zain_sustainability_270415-.pdf> [Accessed 5 November 2020].

cloudfront, 2020. [online] D364xagvl9owmk.cloudfront.net. Available at: <https://d364xagvl9owmk.cloudfront.net/media-10-4-18/media/filer_public/52/de/52def886-1e6b-4d9a-a47a-5bbceb0d7bd3/zain-sustainability-report-2012_4.pdf> [Accessed 5 November 2020].

Oecd.org, 2020. [online] Oecd.org. Available at: <https://www.oecd.org/mena/competitiveness/36086689.pdf> [Accessed 5 November 2020].

Shelash Mohammad, S., 2011. Human resource management practices in ZAIN cellular communications company operating in Jordan. Perspectives of Innovations, Economics and Business, pp.26-34.

Unglobalcompact, 2020. Anti-Corruption | UN Global Compact. [online] Unglobalcompact.org. Available at: <https://www.unglobalcompact.org/what-is-gc/our-work/governance/anti-corruption> [Accessed 5 November 2020].

Zain, 2020. You Are Being Redirected…. [online] Zain.com. Available at: <https://www.zain.com/en/about-us/overview/> [Accessed 5 November 2020].