EDITORIAL: MTN’s Iran headache
G7’s commitment to enforcing sanctions puts SA behemoth between a rock and a hard place
MTN Group is facing a quandary that could give even the most seasoned corporate strategist a migraine after the pledge by the Group of Seven (G7) last week to tighten the noose on Iran’s economy.
The telecom behemoth, a post-apartheid corporate success story that prides itself on connecting the unconnected, has had its fair share of navigating a labyrinth of geopolitical tensions and economic sanctions in Iran. Yet the hidden jewel in MTN’s portfolio exemplifies what it wants to achieve at home and elsewhere in Africa.
The G7’s commitment to enforcing additional sanctions against Tehran leaves MTN between a rock and a hard place. On one hand is the moral high ground for adhering to international sanctions; on the other hand, ensuring compliance will cost time and resources — and money.
The additional sanctions could force the company to make an unenviable choice: comply and pay the costs or stay in the hope that Tehran will decide to play by the international rules soon. For MTN the decision is as much about ethics as it is about economics.
The company is walking a tightrope, trying to balance its corporate conscience with its capitalist instincts. It’s a pickle, and one that MTN must address with caution and conviction.