Cross-Border Management: Pre-Registered Sim Cards Essay

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As of now, the existence of the excessive number of pre-registered SIM cards in use indicates an ethics dilemma that damages MTN’s reputation and global standing. Although the current fine is high, further infractions can lead to the company losing its access to the Nigerian market if it decides to relocate its operations outside the country. The failure to comply led to a $5.2 billion fine is a disastrous hit to MTN’s credibility (Bartlett & Beamish, 2018). Without imposing strict regulations on SIM card ownership, the company will continue to break its corporate social responsibility by allowing criminals to utilize its services. MTN Nigeria already has socially responsible campaigns that promote the development of telecommunications through knowledge sharing and accumulation by local specialists (Chioma & Agbaenyi, 2021). It can improve the overall situation on the market and in the country in general by establishing a clear statement on its corporate ethics and following it afterward.

In order to achieve this goal, the firm should establish its service centers across the country and require all users of pre-registered SIM cards to visit them or be disconnected from the network. While this is a drastic turn of events that will damage MTN’s profits, this move is necessary due to ethical and regulatory concerns. Chukkol (2020) reveals that Nigerian laws state that companies who are “collecting, maintaining, using or disclosing individually identifiable consumer information shall take reasonable steps to ensure that the information is accurate” (p. 11). Without adhering to this code, companies shall not be able to participate in the market without being continuously fined. Even if MTN would leave Nigeria and operate in it from an outside location, its already massive fine will not stop growing. Thus, expenditures on opening new service centers will be a financial burden in the short term, yet they would allow MTN to remain on the market.

References

Bartlett, C. A., & Beamish, P. W. (2018). Transnational management: Text, cases, and readings in cross-border management (8th ed.). Cambridge University Press.

Chioma, D. L., & Agbaenyi, A. N. (2021). Issues in Corporate Social Responsibility, 4(1).

Chukkol, O. G. (2020). . SSRN Electronic Journal.

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