Telus Corp., the second-largest wireless company in Canada, introduced an “adult content” service to their cell phone customers in 2007. Customers were charged $3 to $4 for downloads, and the company expected to make very large amounts of money based on observable Internet trends. Fairly quickly, however, Telus was under pressure from customers rather than the government to discontinue the service, even though the service was apparently legal. In response, Telus’s company spokespeople argued about the following

• The service consisted of photographs and videos featuring “full and partial nudity, but no sex.”

• Customers would be age verified very rigorously to prove they were adults.

• The service was already universally available, although Telus was the first wireless carrier in North America to offer such a service. 

There were many complaints in the form of calls from cell phone users and the Roman Catholic Church threatening to discontinue their contracts with Telus. According to Archbishop Roussin, the service  “takes the accessibility of pornographic material further into the public realm. At the same time, Telus was developing a community support program involving community investment boards and ambassadors in an effort to improve its reputation and acceptance. On its website at the time, Telus stated: At Telus, we aspire to be Canada’s premier corporate citizen. We are committed to building a corporate culture of giving, and engaging the hearts and minds of our team members and retirees to improve the quality of life in our communities. We recognize that leading the way in corporate social responsibility is as important as our financial performance. We have made a commitment to our customers, shareholders and all stakeholders to stay ahead or our competitors in all aspects of business—economically, environmentally and socially. Corporate social responsibility remains an integral part of what we do—it defines our business practices and culture as we strive to achieve long-term sustainable growth. 

Questions

1. If selling pornography is legal, profitable, and readily available elsewhere, should Telus shut down its adult service? Why or why not?

2. Telus said that it wanted to be Canada’s premier corporate citizen. Should companies such as Telus feel obligated to give back to society?