vodafone egypt case study

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Case study: How Vodafone Egypt promotes data security and privacy

Vodafone Egypt is a subsidiary of the Vodafone Group and the largest mobile network operator in Egypt, offering a range of communication services to both consumers and businesses all over Egypt. Vodafone Egypt is committed to processing personal data honestly, ethically, with integrity, and always in accordance with applicable laws and its values.

This case study is based on the 20 18-2020 Sustainability Report by Vodafone Egypt published on the Global Reporting Initiative Sustainability Disclosure Database  that can be found at this link . Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.

Respect for privacy is a key component in the design, development, and delivery of Vodafone Egypt’s products and services.     Tweet This! In order to promote data security and privacy Vodafone Egypt took action to:

• implement the Vodafone Group GDPR Programme
• apply a Privacy Programme
• implement a Privacy Policy

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With this case study you will see:

• Which are the most important impacts (material issues) Vodafone Egypt has identified;
• How Vodafone Egypt proceeded with stakeholder engagement , and
• What actions were taken by Vodafone Egypt to promote data security and privacy

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What are the material issues the company has identified?

In its 2018-2020 Sustainability Report Vodafone Egypt identified a range of material issues, such as Covid-19 pandemic and crisis management, market leadership, business continuity, customer service excellence, community development. Among these, promoting data security and privacy stands out as a key material issue for Vodafone Egypt.

Stakeholder engagement in accordance with the GRI Standards             

The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:

“The reporting organization shall identify its stakeholders, and explain how it has responded to their reasonable expectations and interests.”

Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.

Key stakeholder groups Vodafone Egypt engages with:               

To identify and prioritise material topics Vodafone Egypt engaged with its stakeholders through the following channels:

What actions were taken by Vodafone Egypt to promote data security and privacy ?

In its 2018-2020 Sustainability Report Vodafone Egypt reports that it took the following actions for promoting data security and privacy:

• Implementing the Vodafone Group GDPR Program me
• Vodafone Egypt follows and implements the Vodafone Group GDPR (General Data Protection Regulation) Programme to ensure compliance with the new European GDPR, since it is mandated by Vodafone Group even for non-European Markets that do not primarily deal with European personal data and are not directly impacted by the new regulation. This direction ensures consistency, maturity and standards for the Vodafone Privacy Programme across Vodafone’s global footprint, to meet the requirements of the changing global regulatory and reputational privacy landscape. In addition, it puts Vodafone Egypt in the leading position in the Egyptian Market, being pioneers in this field and allows Vodafone Egypt to be the first compliant telecom operator with the intended Data Protection Law that is adopting GDPR, to be released soon in Egypt. Vodafone sets the required controls for protection against transactions with a sanctioned entity in breach of the sanctions legislation, potentially resulting in reputational damage, large fines, criminal penalties for individuals, and termination of the Vodafone Group’s financing arrangements. The objective is to make sure that Vodafone Egypt has a clear and robust set of controls in place, to minimise the risk of Vodafone breaching sanctions legislation.
• Applying a Privacy Program me
• Design for Privacy
• Protect Confidentiality
• Collect relevant data
• Provide a Privacy Notice
• Provide Choices
• Manage Data Carefully
• No unauthorised disclosure
• Secure Data
• Protect Children’s Privacy
• Respect Individual Rights
• Implementing a Privacy Policy
• Vodafone Egypt’s Customer Privacy Policy concerns the handling of Data Subject’s personal information, including the collection, storage, access, use, updating, disclosure, disposal, destruction, or any other processing of such information. Gathering information from customers serves the purpose of operating Vodafone Egypt’s business and enhancing its customer experience. Vodafone Egypt’s Privacy Notice was updated in April 2020.

Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?

The GRI Standard addressed in this case is: Disclosure 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data

Disclosure 418-1  Substantiated complaints concerning breaches of customer privacy and losses of customer data corresponds to:

• Sustainable Development Goal (SDG) 16 : Peace, Justice and Strong Institutions
• Targets: 16.3, 16.10

78% of the world’s 250 largest companies report in accordance with the GRI Standards

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See upcoming training dates. References:

1) This case study is based on published information by Vodafone Egypt, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original, please revert to the original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:

http://database.globalreporting.org/

2) https://www.globalreporting.org/standards/gri-standards-download-center/

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Vodafone Egypt and the Arab Spring: When Government and Business Collide

By: Andrew Hoffman

This case centers around Vodafone Egypt and its role in the political instability of Egypt in 2011. The then-president of Egypt asked telecommunication providers to terminate operations to help…

• Length: 12 page(s)
• Publication Date: Feb 27, 2015
• Discipline: International Business
• Product #: W94C17-PDF-ENG

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This case centers around Vodafone Egypt and its role in the political instability of Egypt in 2011. The then-president of Egypt asked telecommunication providers to terminate operations to help mitigate the abilities of citizens to rally rapport with the global media and organize local demonstrations. The core dilemma surrounds the idea of how much influence corporations should have on public policy and what a corporation's role is in relation to politics and/or the government, specifically in areas with political instability and conflict.

Learning Objectives

1.) Identify how corporate strategy intersects with human rights.

2.) Explain the interconnected relationship among social media, corporations, and politics.

3.) Describe the role of corporate social responsibility in a politically unstable setting.

4.) Identify complications that impact the bottom line and business strategy of a multinational corporation operating in crisis situation.

Feb 27, 2015

Discipline:

International Business

Geographies:

Egypt, Middle East, Tunisia

Industries:

Internet service providers

WDI Publishing at the University of Michigan

W94C17-PDF-ENG

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• This case has been featured on our website, click to view the article .

Vodafone in Egypt

Since December 2010, we have witnessed a social media as well as a political revolution across North Africa and the Middle East. Although it was the brave citizens of these countries that took to the streets, social media played an influential role in helping to mobilize mass protests. However, it has also brought into focus the many ways that governments can restrict freedom of expression, and their willingness to shut down internet services and telecommunications infrastructure when their authority is threatened. With increasing frequency, we have seen governments target social media – earlier this year the Turkish government blocked access to YouTube and Twitter.

Drawing on these events and the challenges faced by telecommunications and internet providers in these countries, ESMT’s  Urs Müller  and  Shirish Pandit  wrote the case study  “Vodafone in Egypt: National crises and their implications for multinational corporations.”  According to  Shirish Pandit , “This is something that is also relevant when one looks to events in Turkey or Ukraine. In a socio-political sense, they all have in common that they involve unforeseen popular uprisings with wide-reaching implications for politics, the economy, and society. These events allow us the opportunity to explore some of the ethical, political, and business challenges prevalent in emerging markets. They also pose tough questions for companies who enter seemingly stable markets, but which develop into a state of turmoil.” The Vodafone case illustrates the difficult situations faced by corporations where there are overlapping ethical, political, business, and legal considerations.

Since Vodafone’s entry into the Egyptian market in 1998 as a minority stakeholder in the second GSM license holder, Vodafone Egypt had grown over the years to become the leading mobile operator in Egypt in terms of revenues as well as customer base. By the end of 2010, it was serving 24.6 million customers and had 6,500 employees. Although the Egyptian government had made many moves since 1999 to liberalize the telecom industry in Egypt – successfully bringing about increased competition between the three key market players – the government still retained a significant amount of control. For example, the Egyptian government under then President Hosni Mubarak could not only monitor ICT activities but was also technologically in a position to disconnect the entire system if it wished.

On Thursday, January 27, 2011, hundreds of thousands of protesters in Egypt gathered to demand an end to the 30-year rule of President Mubarak. The communication and connectivity through social media had acted as a key catalyst in enabling the protesters to coordinate their actions. With the protest movement expected to gather momentum the following day, the government not only blocked access to Twitter and Facebook, but it ordered the three main voice and data communications providers – Vodafone, Mobinil, and Etisalat – to suspend mobile services in selected areas, especially those around Tahrir Square, the nucleus where protesters had assembled. The government also instructed the communications providers to broadcast a series of propaganda text messages on its own behalf.

The following morning, the government ordered a complete shutdown of internet services – something unprecedented in the history of the internet. The sanctions for non-compliance included imprisonment of the telecom operators’ management, as well as suspension of their license to operate. With these factors in mind, Vodafone management not only conformed with the order to shut down mobile services, but it also sent out the text messages. However, its competitor – Mobinil – reacted differently, making it clear that the messages were coming from the Ministry of Interior. There was sharp criticism of Vodafone following these decisions, both from organizations such as Amnesty International and customers in Egypt.

“Vodafone in Egypt” provides a timely and fresh viewpoint on the notion of responsible leadership. This case shows that there is often no correct response. Vodafone made a decision that was legally correct under the laws of that country, but in the process it temporarily deprived its customers of their freedom of expression. This raises many questions, including: How far should companies go to protect their business interests? Do companies have an obligation to protect human rights? This case also highlights the risks involved in allowing governments to control – and potentially misuse – key communications infrastructure. The Vodafone case provides students with an important platform for debate on how multinationals operating in – and/or aiming to enter into – emerging markets should make decisions that balance business, legal, ethical, and political considerations, particularly in the event of a national crisis.

Shirish Pandit

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Vodafone in Egypt: How tech companies can uphold, not violate, human rights

In carrying out the policies of repressive regimes, multinational telecommunications companies can violate international standards for human rights. Joining a global network committed to ethical uses of technology would help these corporations uphold, rather than undermine, those rights.

• By Luke Allnutt

February 22, 2011 | Prague, Czech Republic

In recent years, we have put corporations under greater scrutiny. We don’t buy shoes if they were made in Asian sweatshops. We boycott companies whose practices contribute to the destruction of the rainforest. Consumers expect to be satisfied with the service, but they also want to be reassured that the company providing the service has not harmed others. We should expect the same high standards from technology companies.

Uprisings throughout the Arab world, especially in Egypt , have brought to light the role that multinational telecommunications companies play in the hands of repressive regimes . Western technology giants are increasingly finding themselves in the uncomfortable position of having to comply with local laws that might not correspond with international rights norms. But in a wired world, Internet access is increasingly seen as a fundamental human right – and the gatekeepers of those rights are not just governments, but corporations.

IN PICTURES: Top 10 countries that say Internet access is a basic right

Vodafone's role in Egypt

For five days during the recent uprising in Egypt, the Egyptian Internet and mobile telecommunications were blacked out . The details are still murky about how the authorities managed the shutdown, but accounts indicate that on Jan. 27, the Egyptian government asked the country’s Internet Service Providers (ISPs) to switch off their services. Two of those companies were the British-based Vodafone , which runs a joint venture with the state-controlled Telecom Egypt, and France Telecom , which runs Mobinil in a joint venture with an Egyptian concern, Orascom Telecom Holding .

In a statement, Vodafone said that it was obliged to comply with Egyptian law, and the authorities could shut down the network without its consent anyway. Several rights groups, including Amnesty International , have since been critical of Vodafone’s decision to pull the plug.

When the Internet and phone services were restored, Vodafone got into hot water once again, allowing its network (technically closed to regular users at the time) to be used to send out pro-Mubarak text messages. One of the messages called on “Egypt’s loyal men to confront the traitors and the criminals and to protect our families, our honor and our precious Egypt.” The “traitors” and “criminals” were presumably those camped out in Tahrir Square . Vodafone has said that it was obliged to send the messages under “emergency powers provisions of the Telecoms Act” and has protested to the authorities.

Local governments vs. international rights

Regardless of where the blame lies, Vodafone’s experience in Egypt is a good case study of the types of pressures multinational technology and telecommunications companies will find themselves up against a s states assert their sovereign rights over information , often in order to limit freedom of expression or invade their citizens’ privacy. It’s an awkward situation for these companies: Upholding a certain government’s policies puts these companies in local compliance, but can also conflict with international standards for human rights.

Until Google shut down its search services on the Chinese mainland last year after a cyber attack targeting rights activists, the company had self-censored Chinese search results for years.

With the world’s netizens increasingly using services like Facebook, Twitter, or Google , and with much more information living in the cloud, many foreign governments aren’t overjoyed by the prospect of their citizens’ data living, not readily accessible, on some Western server. RIM, the company that makes Blackberries, for example, has butted heads with the governments of India and the United Arab Emirates , which want access to RIM’s encrypted email and messaging services.

Western technology companies have had a checkered history in dealing with repressive regimes. In 2005, a Chinese activist was imprisoned for 10 years after Yahoo China provided his personal details to the government. During Iran’s post-election unrest in 2009, it was revealed that Nokia had supplied Iran with mobile surveillance technology , which it used to clamp down on protesters.

Other examples are less clear-cut, but still raise moral and ethical questions. For example, should telecom companies sell GSM (Global System for Mobile Communications) equipment with “legal intercept” capabilities to repressive regimes? The data (call records or even a user’s location) can be accessed in criminal investigations but it can also be used to find and convict pro-democracy protesters. Or should Narus, a Silicon Valley company owned by Boeing , sell Egypt deep packet inspection technology, which enables the authorities to monitor its netizens’ viewing habits?

Companies should join global network

To help navigate these choppy waters and to prevent future corporate complicity in shutdowns or excessive monitoring, a good start would be for technology companies to join the Global Network Initiative (GNI) – a loose conglomerate of technology companies, rights groups, academics, and investors. The GNI provides a framework to help companies “respect and protect the freedom of expression and privacy rights of users in responding to government demands, laws and regulations, [and] integrate into their decision making and culture responsible policies and procedures.”

Member companies also “commit to an independent assessment process focused on how they are implementing the GNI’s principles within their organization.”

The GNI is crucial, but still desperately needs more companies – such as Twitter and Facebook – to join. (To date, only Google, Yahoo, and Microsoft have signed up.) A critical mass of companies would not only help enshrine universal standards of moral and ethical behavior but would also present a united front to the world’s repressive regimes.

Countries in the Middle East where the 'winds of change' are blowing

These companies bear a responsibility not just to uphold human rights, but to their consumers. They, at least, should make sure they are on the right side of history.

Luke Allnutt is the editor in chief of Radio Free Europe/Radio Liberty ’s English website and blogs at Tangled Web . The views expressed in this piece are his own and do not necessarily reflect the opinion of Radio Free Europe/Radio Liberty.

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Please note you do not have access to teaching notes, vodafone egypt (b), managing corporate cultural change and organizational performance.

Publication date: 15 November 2016

Teaching notes

Subject area.

This telecommunications international business case study is the second in a series (A, B and C) of Vodafone cases.

Study level/applicability

This case is intended to be used in MBA graduate and undergraduate business courses in strategy, cross-cultural management and human resources.

Case overview

This case examined organizational structures and human resource operating strategies of Vodafone Egypt from 2002 until 2007. Vodafone’s business model, how Vodafone addressed the differences in national culture between Britain and Egypt and how Vodafone fostered adoption of the Vodafone corporate culture are the main themes of this case. Further, this case examined business issues, products, processes and people systems that challenged Vodafone to grow quickly from zero local operations in 1998 to 4,000 employees and national mobile coverage in 2007.

Expected learning outcomes

The students who have used this case in the author’s classes have gained a clearer understanding of how international managers often have to develop a change culture and structure as a catalyst for firm growth in emerging markets. Adaptation to the local culture may not be an option for fast growth technology firms and may be ill-suited to meet corporate objectives.

Supplementary materials

Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Subject code

CSS 5: International Business.

• Telecommunications
• Change management
• Multinational business cultures
• Performance-based organizational systems
• Wireless communications

Harlow, H.D. (2016), "Vodafone Egypt (B), managing corporate cultural change and organizational performance", , Vol. 6 No. 4. https://doi.org/10.1108/EEMCS-07-2013-0141

Emerald Group Publishing Limited

Copyright © 2016, Emerald Group Publishing Limited

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Case Study of Vodafone in Egypt: National Crises and Their Implications for Multinational Corporations

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Introduction

This paper sets to address various cases study questions related to Vodafone in Egypt with a particular focus on the issue of national crises and the kind of implications that they have for the existing multinational corporations.

Question 1: What are the At Least Five Alternative Actions for Vodafone Egypt

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The third alternative would have been to comply with the government’s order, given the fact that the company’s license to operate would be suspended as well as its management sanctioned for non-compliance. However, just like its competitor did, it would have considered indicating that the propaganda text messages that it had also been instructed to send were strictly coming from the Ministry of Interior and not from the company. The fourth alternative would be to partially obey the government of Egypt by not suspending services to the customers but go ahead and send propaganda text messages. The fifth alternative would be to set proxy limits and security measures that would greatly help in limiting pro-revolution user-generated content and at the same time ensure that it has sent the messages as directed by the government.

Question 2: Reasons to Support the Identified Alternatives

One of the reasons as to why Vodafone Egypt should not comply with the directive of President Mubarak’s government is that it would end up violating the business ethics that it has always promised to uphold. Moreover, the second alternative would be best defended by the fact that Vodafone Egypt had notified its customers of the intention to suspend its services to them thus allowing them enough time to look for an alternative option that would less reduce the effects that would be caused by this action. The primary reason as to why Vodafone would have considered indicating that the messages that it was sending were strictly coming from the Ministry of Interior of Egypt would be to assure its customers in Egypt that these were not its views but those of their ruling government and that the company was acting independently.  The reason as to why Vodafone Egypt should have partially complied with the directives of the Egyptian government by sending SMS and not suspending its services to the clients would be to ensure that it has complied with the laws of the country. At the same time, it would uphold its policies and obligations to its clients through not violating their rights of expression. Additional, the reason as to why Vodafone Egypt should set the proxy limits and security measures in the effort of limiting pro-revolution would be to ensure that no hatred content is communicated amongst its subscribers as that would result into more crises in the country.

Question 3: Selection of the Course of Action that I Would Take if I Were in the Position of CEO of Vodafone Egypt

If I were in the position of the CEO of Vodafone Egypt, I would certainly not comply with the government order to suspend services in the selected areas that is Tahrir Square among others as directed by President Mubarak’s government. I would, however, send the propaganda texts messages to the subscribers but indicating that they are from the Ministry of Interior of the Egyptian government. That is because, by obliging to the demands of this government, I would be violating the rights of the Egyptian subscribers to communicate freely.

Question 4: Missing Information and how to Get it

Some of the missing information in this case study is in regards to the extent to which a government has the power to influence telecommunications services to act in the best interest of the government rather than its customers. This information can be best retrieved through talking to an expert who has extensive knowledge on the rights of Multinational Corporations operating in foreign countries, especially when there is an emergence of national crises.

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Vodafone egypt uses nts retail to manage and monitor store processes.

In 2015, Vodafone Egypt decided to upgrade to the new NTS Retail X3 version of the software to centrally manage and monitor their store processes. The upgrade allows the telecom provider to handle logistics workflows in more than 350 Vodafone shops throughout Egypt with about 1,000 POS terminals at an even higher quality level than before.

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Vodafone Egypt

• Major telecom provider in Egypt

Product portfolio

• Voice services
• Fixed and mobile internet content and services
• Complex customer-specific sales data integration
• Two different operating modes (Citrix and Fat client)
• Improved system security
• Central control of store processes
• Optimized calculation of order quantities

"We are very proud of the successful completion of the POS X3 upgrade, one of our major strategic projects at Vodafone Egypt. It will avail a new process that will help us save millions. I acknowledge the cooperation, encouragement and strong dedication of the NTS staff during the project phase; a very professional and committed team. It was our pleasure to work with you on such an important project. Thank you NTS Team!”

Mohamed ElHosieny / Senior IT Project Manager / Vodafone Egypt

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Case study summary: Vodafone in Egypt

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Attached. Surname 1 Prepared By (Your Name) Submitted To (Your Teacher) Course Number Date Case study summary: Vodafone in Egypt International cooperation/organizations face myriad of challenges in their operation around the globe that are presented by the fact that they operate in different countries with varying political ambiances and constitutional mandates. According to the case study, these multinational have a mandate to adhere to the Constitution of the countries they operate on and still observe company policy hence a delicate balancing act. Vodafone Ltd which was founded in 1982 in the United Kingdom from Racal Strategic Radio Ltd that dealt with military technology at the time grew expeditiously since its inception years at the London Stock Exchange to become the most successful in its industry in the UK by 1991 as indicated by its over-the–roof share prices. Through numerous merger...

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