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Vodafone Egypt Case Study
The Vodafone Egypt case study presents an intricate scenario whereby Vodafone Egypt was caught up in the country’s politics. In early 2011, a political storm was brewing in Egypt and even spreading to other Arab countries. The revolt against Mubarak’s 30-year-rule was characterized by massive protests in towns across Egypt and was being attributed to the massive internet penetration in the country. As a measure to control the situation, the government directed internet providers, Vodafone Egypt being one of them, to shut the internet to thwart online communication and hence public gatherings. Additionally, the company was required to send pro-government texts to the citizens. It is this development that put Dowidar, the CEO of Vodafone in a precarious situation knowing very well that obeying such a directive will have far-reaching ethical and financial consequences on the business operations of the company. Equally, disobeying such a direction would have serious legal ramifications from the government side. There is no doubt he was in a dilemma and had to make a crucial managerial decision with each course of action likely to have serious consequences.
However, the Vodafone Egypt situation is not an isolated case as corporations in countries such as Ukraine and Turkey have faced similar challenges in the recent past. The common factor affecting Vodafone Egypt and corporations in Ukraine and Turkey is a socio-political situation that involves unpredictable popular revolts with far-reaching consequences on the society, economy and the respective countries politics.

Such situations bring into the limelight the challenges corporations face in situations where political, legal, ethical, and business issues overlap.
Considering the factors surrounding the situation in Egypt, one of the possible courses of action for Dowidar was to comply with the directive by the government. This is because non-compliance would mean that top company managers including Mr.Dowidar himself risked imprisonment. What is more, given that the emergency law was in effect in Egypt meant that the government was entitled to compel the internet providers such as Vodafone Egypt to comply with the directive. Additionally, if the CEO failed to comply, the company risked losing its operating license coupled with other sanctions. By complying, Mr. Dowidar was equally guaranteed of keeping his job and those of other senior managers who would otherwise be fired if they failed to comply.
The other possible course of action would have been to civilly disobey the order considering that Vodafone’s international ethical guidelines do not align with the emergency law that was used to order them to shut the internet. Shutting down the internet and sending pro-government text messages would have undoubtedly temporarily denied the company’s customers of their entitlement to the right of expression. In fact, the CEO should have been bold enough to denounce the directive publicly and instead support the masses who were resisting president Mubarak’s 30-year dictatorial regime. Such was the case in Germany in the 1930s when most American subsidiaries operating in Germany firmly opposed Hitler’s dictatorial rule and supported uprisings against Hitler’s government (Heineman 1).
Alternatively, Vodafone Egypt should have tried to modify the emergency law that gave the government powers to compel telecommunication companies to shut down some of their operations. While it was not practical to try and change the law within such short notice, perhaps it would have been appropriate to get a court injunction reversing the order. This would have marked the first step towards changing the law while still operating within the confines of the law hence no penalty. The other option would have been to negotiate with the government and arrive at a gentleman’s deal. In this regard, the CEO should have tried to convince the government that the company is guided by ethical standards that prohibit any infringement of their customers’ freedom of expression. He would go ahead and inform that implementing the order was indeed an infringement of this basic human right. Perhaps with this understanding, the government could have withdrawn the directive. Lastly, the company should have halted its business operations in Egypt altogether and move to another country. This way the company would have avoided any confrontation with the government while remaining true to their ethical standards.
Out of the five alternatives, I find the first option the best option given the prevailing circumstances. First, as earlier indicated, Vodafone Egypt was required by law to comply with the order as per the emergency law. Failing to comply would also lead to imprisonment of the company’s management and the termination of its license. It is also obvious that the company was not ready to exit the Egyptian market hence it was in the best interest of the company to obey the directive and continue its business activities in the country. What is more, the benefits of obeying far outweigh the benefits the company would derive if it had settled on any other option. Additionally, scholars support the view that organizations should weigh the risks and benefits of options before settling on one alternative (Radcliffe 1). However, a critical analysis of the country’s law would be appropriate before implementing the option. As the CEO I will talk to the company’s secretary and other legal experts to get their perspective on the issue so as to avoid any legal mistakes when executing the option.
Works Cited
Heineman, Ben W. “The Conflict between a Corporation’s Global Standards and National Law | Business Ethics.” Business Ethics | The Magazine of Corporate Responsibility, 5 Apr. 2016, business-ethics.com/2016/04/05/1514-the-conflict-between-a-corporations-global-standards-and-national-law/.
Radcliffe, Dana. “Should Companies Obey the Law If Breaking It Is More Profitable?” HuffPost, 4 Sept. 2012, www.huffingtonpost.com/dana-radcliffe/should-companies-obey-the-law_b_1650037.html.