How Telcos can leverage corporate philanthropy programme to start social enterprises

In an increasingly interconnected world, telecommunications companies (telcos) are in a unique position to drive social impact through their expansive reach and technological expertise. Over the years, many telcos have established successful corporate foundations and philanthropic programs that have significantly contributed to addressing gaps in education, health, and sustainability. However, as societal expectations shift and the demand for corporate social responsibility (CSR) intensifies, there is an opportunity for telcos to build on their philanthropic successes and launch social enterprises that not only drive scalable, sustainable public impact but also foster innovation and revenue growth.

By focusing on big opportunity areas such as education, health, and sustainability, telcos can create business models that align social impact with financial objectives, paving the way for long-term success.

The Evolution of Corporate Philanthropy in Telecommunications

Telecommunications companies have long been involved in philanthropic activities, primarily through their corporate foundations. For instance:

• Deutsche Telekom in Germany has made substantial contributions to STEM education and digital literacy.

• Orange Foundation in France has focused on digital education, women’s empowerment, and healthcare, particularly in underserved regions.

• Vodafone Foundation has spearheaded initiatives like Instant Network Schools and m-mama, improving education and healthcare in refugee camps and remote areas.

• Reliance Foundation in India has targeted rural development and healthcare through mobile health units and digital education platforms.

These programmes have not only enhanced the reputation of these companies but also positioned them as leaders in digital inclusion and social responsibility. However, with the growing emphasis on sustainability and innovation, there is a need for telcos to transition from traditional philanthropy to more integrated, sustainable business models—specifically, social enterprises.

Why Social Enterprises?

A social enterprise is a business model that prioritizes social and environmental goals alongside financial returns. Unlike traditional CSR initiatives, social enterprises are designed to be self-sustaining and scalable. For telcos, starting social enterprises presents several benefits:

1. Innovation: Social enterprises encourage innovation by addressing unmet social needs. For telcos, this could involve developing new products or services using capabilties in 5G infrastructure, Unified Comms, IOT, AI that solves user needs in education, health, or sustainability. All these verticals are undergoing rapid digital transformation, which positions telcos in a unique position to tap into these market opportunities.

2. Revenue Growth: By creating products or services that address social challenges, telcos can tap into new markets and customer segments, driving revenue growth. For instance, providing affordable mobile health services in rural areas could open up new revenue streams.

3. Public Impact: Social enterprises inherently focus on creating positive public impact. For telcos, this could mean improving access to digital education, improving skill capabilities, delivering tele- healthcare, or sustainable energy in underserved communities.

4. Brand Reputation: Engaging in social enterprises enhances a company’s brand reputation, attracting customers, investors, and talent who prioritize social responsibility.

Leveraging Previous Philanthropic Experience

Telcos have developed significant understanding of the challenges of operating in frontier markets, local partnerships at a community level to make their existing philanthropic programmes a success. They can leverage their existing philanthropic experiences to successfully transition into social enterprises.

Building on Established Programmes in Education

Many telcos have made significant philanthropic contributions to education. For instance, the Vodafone Foundation’s Instant Network Schools programme offers digital education to students in refugee camps, providing access to learning resources in difficult conditions. Similarly, the Orange Foundation has successfully implemented digital schools in Africa and the Middle East. These telcos could transition from philanthropy to social enterprise by creating a scalable digital content education platform offering affordable services globally. The platform would include skill development programmes tailored to local needs, driving employment, social impact and revenue. Partnering with local governments and educational institutions would enhance the program's reach and effectiveness.

Expanding Health Initiatives into Social Enterprises

Telcos like Vodafone and Reliance have advanced health through philanthropic programs. Vodafone's m-mama connects mothers and newborns to life-saving healthcare in rural Tanzania and Lesotho, reducing maternal deaths, a key challenge in the UN's SDGs. Reliance Foundation in India operates mobile health units for rural communities, laying the groundwork for a mobile health social enterprise. Telcos could expand by providing telemedicine, health info, and diagnostics via a mobile app, reaching remote areas and enhancing services through partnerships.

Sustainability as a Business Model

Environmental sustainability is becoming increasingly important in corporate strategies. Deutsche Telekom has focused on sustainability through its educational initiatives, promoting awareness and action on environmental issues among young people. To build on this experience, Deutsche Telekom could establish a social enterprise focused on sustainable energy solutions. For example, Deutsche Telekom could develop a business that offers affordable solar energy solutions to households and small businesses in emerging markets. By leveraging its technological expertise and distribution infrastructure, Deutsche Telekom could provide energy-as-a-service, where customers pay a small fee for using clean energy. This not only addresses energy poverty but also creates a new revenue stream aligned with sustainability goals.

Driving Innovation and Revenue Growth Through Social Enterprises

Transitioning from traditional corporate philanthropy to social enterprises requires a shift in mindset—from viewing social impact as a cost to seeing it as an opportunity for innovation and growth. Telcos have the advantage of technological expertise, broad reach, and established trust within communities, making them well-positioned to drive this change.

To successfully launch social enterprises, telcos should:

1. Leverage Core Competencies: Utilize existing technological capabilities and infrastructure to develop innovative solutions that address social challenges.

2. Collaborate with Stakeholders: Partner with governments, NGOs, and other businesses to enhance the reach and impact of social enterprises.

3. Focus on Scalability: Design social enterprises to be scalable, ensuring that they can grow and adapt to changing social needs and market conditions.

4. Measure Impact: Implement robust mechanisms to measure both social and financial impact, ensuring that the enterprise remains aligned with its dual goals.

5. Communicate Value: Clearly articulate the value proposition of the social enterprise to customers, investors, and other stakeholders, highlighting the tangible benefits it offers.

Conclusion

Telecommunications companies have a rich history of corporate philanthropy, particularly in the areas of education, health, and sustainability. By leveraging their previous experiences, telcos can successfully transition into social enterprises that drive innovation, revenue growth, and public impact. The examples of Deutsche Telekom, Orange, Vodafone, Reliance, illustrate how telcos can build on their philanthropic successes to create sustainable business models that align social impact with financial objectives. As the demand for corporate social responsibility continues to grow, the time is ripe for telcos to embrace social enterprises as a catalyst for long-term success and societal progress.