The shift of structural power was accompanied by a shift of personnel. A second
generation of managers entered the venture, which was largely oblivious to the initial
spirit and terms of GrameenPhone as a shared value creating entity. Grameen Telecom 39 felt that old agreements were not honored and a shareholder maximization approach
took hold (Berglund, 2006). Observers attributed ensuing ethical scandals to that
strategic shift (Rahman, 2008). In 2008, for example, GrameenPhone was found to use
unacceptable working conditions, including incidents of child labor to reduce costs
(Telenor, 2008). Similarly, GrameenPhone had been found guilty of violating state law
with regard to the usage of VOIP (Voice over Internet Protocol) to increase revenue and
was fined USD 55 million (Rahman, 2008; Telenor, 2008).
The shift towards the primacy of financial-value creation might have been spurred by increased competition. These competitors entered the market, largely pursuing a traditional shareholder value maximization strategy. To ensure GrameenPhone’s lasting success the rules of the competitors affected its strategy and forced it further into a more traditional approach. The latest manifestation of such a strategic shift can be witnessed in the initial public offering (IPO) of 10 percent of GrameenPhone stock by Telenor to fund further growth.