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Econet Global's Ethical Leadership Insights

Econet Global is a telecommunications group founded in 1993 that practices ethical leadership. It empowers employees through programs like "An Hour a Week" that allows an hour of paid study per week. Leadership is trained at the Success Motivation International to develop management skills. Econet also demonstrates strong corporate social responsibility through environmental protection initiatives and social programs that have supported over 40,000 children through education and healthcare. The company's ethical leadership is evidenced by its educated, experienced leaders and policies against corruption, as well as the positive impacts on employees through skills development and socially through community support programs.
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100% found this document useful (1 vote)
788 views4 pages

Econet Global's Ethical Leadership Insights

Econet Global is a telecommunications group founded in 1993 that practices ethical leadership. It empowers employees through programs like "An Hour a Week" that allows an hour of paid study per week. Leadership is trained at the Success Motivation International to develop management skills. Econet also demonstrates strong corporate social responsibility through environmental protection initiatives and social programs that have supported over 40,000 children through education and healthcare. The company's ethical leadership is evidenced by its educated, experienced leaders and policies against corruption, as well as the positive impacts on employees through skills development and socially through community support programs.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

1.

Ethical Leadership at Econet Global: Case Study 


Econet is a telecommunications group that was founded in 1993 by Strive Masiyiwa [1]. The
group has many subsidiaries that help in attaining its goals. These include Econet wireless,
Cassava smartech, which include ECOCASH and EcoFarmer, and Cassava Technologies. The
company will be used as subject for case study on ethical leadership and how its practices align
with ethical leadership.  
2. Econet Leadership Styles 
2.1 Transformational leadership through Empowering employees 
The management of Econet launched a program to enable their employees gain new knowledge
in the telecommunications industry as it always changing [2].They created a LinkedIn account
where the employees could access resources for studying. On the launch of the program the
COO, Fayaz King made a statement on the importance of change and evolving by improving
their skills in telecommunication[2].The management set a goal, an hour per week, to read.
Employees were given a chance to take an hour off work and study or engage in discussions with
other employees [2]. About 94% employees participated in the program.  

The program made it possible for workers to gain new skills and this made it possible for the
company to reach their goals. The management would tell the employees areas where
improvement is needed, and employees would study materials related to the areas. Six months
review were done, and employees would discuss their findings [2].Employees could easily apply
new positions in the company, but they were questioned about their learning activity. 

In 2001, Econet started sponsoring their employees in management positions to attend the
Success Motivation International, SMI, to train them about management and to realize their full
potential [3]. This initiative made the leaders gain knowledge on how to manage people in a
workplace ethically and how to manage time to attain personal and organizational goals. Some of
the training programs at SMI include employee management, industrial relations, counselling,
motivation, and psychology[4].

2.2 Corporate Social Responsibility 


From the literature review, corporate social responsibility leaders focus is on the environment
and the society. Econet has demonstrated its CSR, in health, education and environment.  

2.2.1 Environment Responsibility 


One of their statements reads, “It is of priority to the organization that the business does not
leave a negative footprint on the environment and the ecological ecosystems in which we
operate” [5]. The company has programs to ensure they keep up with their program such as solar
projects, spill waste and integrated waste management [5].
On the 22nd of September 2017, Econet donated 1000 bins to the City of Harare to ensure that
waste is disposed in the bins [6]. This helped Zimbabwe in initializing the country vision of
having clean cities by 2025. 
In 2017, the company released a report stating that it had shipped 360 tons of telecommunication
equipment for disposal via the program “Obsolete Equipment Take Back” which they agreed
with their suppliers [7].This is helps preserve a clean environment for everyone. Econet also
introduced a way to buy airtime via ECOCASH to limit the number of scratched cards. 
2.2.2 Social Responsibility 
Econet caters the education, health and physio-social life of underprivileged children and
orphans in Africa through the HigherLife foundation[8]. Econet have other related organizations
that support underprivileged children such as Capernaum trust, which offers life skills, food
parcels and scholarships for orphaned children. Econet through its foundations have sponsored
more than 40000 children since its launch in 1996 [8].
 
In 2020, during the covid19 pandemic when countries were struggling to deal with the pandemic,
Higher Life Foundation partnered with other foundations donated 45 Intensive Care Unit
Ventilator suites which were distributed in Zimbabwe public Hospitals [9]. HigherLife
foundation Lesotho also provided food packages to an orphanage, Ministry of Hope in Lesotho,
in 2021 after the second wave of covid 19 [10]. The public relations manager Puleng Masoabi in
her speech mentions that the company’s drive was to provide monthly donations to orphanages
[10].
3. Nature of leadership at Econet 
This section focuses on the nature of the leaders in terms of ethical leadership. 
3.1 Ethically sound  
A study performed by [4], on the level of education of employees in leadership positions in
Econet showed that about 60% had a master's degree or higher and 80% had more than 5 years
working experience. This shows that the leaders are highly educated, and they understand their
roles and responsibilities clearly to make sure that the organization meet their targets [4].The
leaders through experience have acquired skills on how to lead people ethically and not
compromise with meeting the organization’s goals. 
Econet has a group, Social and Ethics group, that is responsible for observing the ethical conduct
in the company and integrity of the employees and leaders [7]. The committee is made up of Mr
G Gomwe, who has 27 years of experience in executive positions, Mr K Chirairo and Mrs. T
Mpofu both have MBAs among other qualifications and Ms B Mtetwa who joined the company
in 2010 is a lawyer who has an international recognition [7]. The board through its experienced
members overviews how members behave and takes disciplinary measures to those who behave
unethical. 
3.2 Leaders relates well with employees  
According to [4], the employees at Econet relates well to their management. The employee
empowerment programs at the company enable the leaders to interact with employees ethically
and they can easily form team or group to enable that organizational targets are met. The leaders
acknowledge best employees with awards, for example Tlali Phoofolo and Tumelo Lilele
received awards for being high performing employees and their department were the
“performance beyond expectations” trophy [11].[12] The initiative reduces employee
absenteeism and ensures a competent workforce. 
One of the ways that Econet does to make sure that their employees are always happy is to assist
them in fighting economic hardships [7]. The leader understands that having a house is one of
the main priorities of most employees and it offers house loans to help them alleviate the
economic hardships [7]. The leaders made a platform where employees can suggest solutions on
improving the company’s services [7]. This communication platform gives employees a sense of
belonging when ideas are implemented or considered. This also demonstrates that there is no
discrimination because anyone is given a platform to express their ideas. Some employees also
use the communication channel to say their issues. 
3.3 Battle against Corruption 
From its onset in 1993, the founder Strive Masiyiwa, and his management group faced major
setbacks from the Zimbabwean government. They were faced with a challenge to get a telecoms
license to start operating legally in the country, at that time the only telecommunication company
was state owned [12]. The leadership fought the government via the court in its decision to
award other operators who had acquired the license in an illegal way, that is through corruption
[12]. Although, they were against the government and many government officials had visited
them and were willing to help them, they did not resort to corruption. They were awarded the
license to operate in the country in 1998 [12].
In 2019, Mr Masiyiwa the CEO of Econet at the 9th Annual Desmond Tutu International Peace
Lecture in Cape Town spoke against corruption and how Africa as a continent must unite and
fight corruption [13]. This is in line with what he practices, that is being honest, and it also
shows that he leads by example and practices what he preaches. 
The leadership behaved ethically, even though they could have acted unethical and paid bribes to
government officials in return of the license. The demonstrates that the leadership of Econet
believes in acting ethical even when the situation is not favorable. The company has gone on to
win awards for behaving ethically and some of their top leaders have received individual awards
for being the best managers nationally, for example Daniel Mhonda in 2018 won the HR (Human
Resources) Manager of the year [14].  
4. The impacts of Econet’s leadership 
4.1 Inside the organization  
The employees in the company are given access to information through the “An hour a week”
program and this helps them improve their skills or to gain new skills. This program helps the
employees to be highly skilled and they can easily find employment elsewhere if they want to
change due to some reasons. The empowering program to send leaders to attend the SMI
program helps the leaders of be great leaders and improve their leadership skills not only in the
organization but also in other personal areas. 
4.2 Outside the organization 
Strive Masiyiwa being one the biggest patron in Zimbabwe and Africa has encouraged
companies and individuals across Africa to be corporate socially responsible. In 2014, leading
mobile operators joined forces in the fight against Ebola [15]. They managed to raise over 30
million dollars to help fight the disease.  

The founder through HigherLife foundation managed to educate many orphans and less
privileged children to school, this enables them to acquire skills and help change the world. The
foundation also helps the children to realize the need help others who are poor in future.  

[1] (2022, September 2). About Econet. Available: [Link]


[2] P. Petrone. (2017, September 7). [Link]
success-stories/how-this-company-inspired-their-employees-to-learn-an-hour-a-wee.
[3] L. Canada. (2022, September 3). "Econet Wireless Zimbabwe, Ltd. Client case Study. Available:
[Link]
%20case%20Study(1).pdf
[4] H. Chakonza, "EVALUATION OF THE ROLE OF ETHICAL LEADERSHIP DEVELOPMENT ON
ORGNISATIONAL PERFOMANCE: THE CASE OF ECONET WIRELESS ZIMBABWE," 2019.
[5] (2022, September 2). Environmental Sustainability. Available:
[Link]
[6] T. Mutusi. (2017, September 7). Innovation Village. Available:
[Link]
harare/.
[7] (2017, September 9). Annual report 2017 sustainable development”. pp 40 – 45, 2017. Available:
. Available: [Link]
%20Annual%20Report/2017/Annual%20Report%202017%20Sustainable%[Link]
[8] Econet. (2022). HigherLife. Available: [Link]
orphan-and-underprivileged-children.
[9] M. Gwarisa. (2020). Healthy Times. Available: [Link]
masiyiwa-donates-ventilators-in-covid-19-response/.
[10] (2021, September 5). ECONET donates to the ministry of ophernage. Available:
[Link]
[11] L. Times. (2017). ECONET Rewards High Performance Employees. Available:
[Link]
[12] S. R. Velamuri, "Resisting Political Corruption: Econet Wireless Zimbabwe (Research Case
Study)," 2003.
[13] C. Loggenberg-Roberts. (2019). It-is-possible-for-governments-to-stop-corruption. Available:
[Link]
masiyiwa/.
[14] B. A. Mutingwende. (2018). Econet-wins-top-global-and-national-human-resources-awards.
Available: [Link]
awards/.
[15] M. Malakata. (2014). NETWORKWORLD. Available:
[Link]
[Link].

Common questions

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Econet's initiative to use ECOCASH for airtime purchases aligns with its environmental sustainability goals by reducing the reliance on physical scratch cards, thereby minimizing waste production. By encouraging digital transactions, Econet not only improves convenience for users but also supports environmental efforts to reduce disposable material usage, contributing to a cleaner and more sustainable environment . This aligns with the company's broader commitment to minimizing its environmental footprint and promoting sustainable practices .

Econet has demonstrated a commitment to corporate social responsibility through several environmental initiatives. It has programs aimed at minimizing negative ecological impacts, such as solar projects and integrated waste management. Econet donated 1,000 bins to the City of Harare to aid in waste management and has implemented an "Obsolete Equipment Take Back" program to ensure proper disposal of 360 tons of telecommunication equipment . These efforts reflect the company’s priority to maintain a positive environmental footprint.

Econet's operational transparency in environmental and social practices positively influences its corporate image by demonstrating accountability and responsibility. Initiatives like the "Obsolete Equipment Take Back" program and significant environmental contributions such as donating waste bins underscore Econet's commitment to sustainability . Additionally, social efforts through the HigherLife Foundation and other programs show Econet’s dedication to community welfare, enhancing its reputation as a socially responsible and ethical corporation. This transparency not only fosters public trust but also sets a benchmark for corporate responsibility .

Econet's social responsibility initiatives, such as those undertaken by the HigherLife Foundation, have made a significant impact on communities beyond the organizational boundaries. By sponsoring education and life skills programs for over 40,000 underprivileged children, including orphans, since 1996, Econet has enabled these individuals to acquire necessary skills for future success . During the COVID-19 pandemic, the foundation's contribution of 45 ICU ventilator suites to Zimbabwean hospitals and food packages to orphanages in Lesotho further demonstrated Econet's commitment to societal welfare, contributing positively to public health and community support .

Econet's transformational leadership style, which emphasizes employee empowerment through learning and development initiatives, has significant implications for achieving organizational goals and enhancing employee relations. By promoting continuous learning and skills acquisition, Econet fosters a highly skilled workforce capable of driving the company’s strategic objectives. The inclusive practice of acknowledging employees' contributions through awards like the 'performance beyond expectations' trophy also strengthens employee-management relations, reduces absenteeism, and ensures a motivated workforce .

Econet's focus on battling corruption underscores its commitment to ethical leadership and integrity. The founders' initial resistance to political corruption in acquiring a telecoms license in Zimbabwe, and their eventual success without succumbing to unethical practices, highlights their dedication to principled business operations . CEO Strive Masiyiwa's public stance against corruption and advocacy for integrity in leadership further solidifies Econet’s reputation for ethical practices and aligns with its leadership values that prioritize honesty and transparency in business dealings .

Econet's strategy of fostering interaction between employees and management significantly enhances its organizational performance. By establishing a communication platform where employees can propose service improvement ideas and express concerns, Econet facilitates an inclusive and participative work environment. This openness leads to innovation, increased employee satisfaction, and a sense of belonging. Consequently, the organization's performance is bolstered through enhanced workforce engagement and retention, as well as by promoting a culture of trust and mutual respect .

In its early stages, Econet faced ethical challenges primarily in the form of political corruption, as they struggled to obtain a telecoms license in a state-dominated market in Zimbabwe. The company addressed these challenges by refusing to engage in corrupt practices, choosing instead to pursue legal avenues. Strive Masiyiwa and the leadership resisted offers that involved unethical shortcuts, ultimately winning the license through the courts in 1998. This established Econet’s foundational commitment to ethical business practices and set a precedent for its future operations .

Econet's ethical leadership is demonstrated through its employee empowerment programs, such as the initiative to allow employees an hour off-work to study and engage in discussions to improve their skills in telecommunications. This encourages personal development and aligns with transformational leadership, as evidenced by the 94% employee participation rate and the structured six-month reviews . Additionally, the company's decision to sponsor employees to attend Success Motivation International for management training further showcases its ethical commitment to professional growth and leadership development .

Education and experience play pivotal roles in Econet's leadership structure, contributing significantly to ethical management. The majority of leaders at Econet possess a master's degree or higher, with over 80% having more than five years of experience, which equips them to clearly understand their roles and responsibilities . The Social and Ethics group, comprising members with extensive executive experience and academic qualifications, oversees ethical conduct, ensuring that ethical standards are upheld across the organization. This foundation of knowledge and experience facilitates informed decision-making, fostering an ethical culture within Econet .

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