II. Findings of the CRM
793.
The CRM found that the corporate sector in Tanzania is generally still in its infancy as a result of the country’s
long history of socialism. Accordingly, the shift to a private sector-driven economy with corporations in the
forefront will need some time to take root. The consequence of this for the promotion of adoption of codes of
ethics in business, as well as other principles of good corporate governance, is that these processes are similarly
still in their infancy.
794.
In addition, the concept of corporate governance as a convergence of stakeholders (that is shareholders, the
board and management of a company, the consumer, the state and the community) as well as the environment
in which a company operates (also relevant in formulating a Code of Ethics in Business), represents a fairly new
way of thinking in Tanzania that is yet to ‘catch on’.
795.
CRM consultations with stakeholders revealed efforts to develop and ensure the adoption of codes of ethics
by listed companies and other large corporations. Companies seeking to be listed on the Dar es Salaam Stock
Exchange have to comply with the 2002 Capital Markets and Securities (Corporate Governance) Guidelines,
issued by the CMSA. These Guidelines aim at: (a) improving and strengthening corporate governance practices
by companies issuing securities through the capital market; and, (b) promoting self-regulation standards to raise
the level of corporate governance, in line with global trends. The National Plan of Action in the CSAR indicates that
the country will draw on such codes as the Cadbury and the King Codes to guide corporate sector development.
796.
The Cadbury Report (1992) was a pioneering report on corporate governance in the United Kingdom. It was
directed more at the relations of directors, auditors, and company members and provided a Code of Best
Practices. There have been other committees since then, including the Hampbel Committee (1998). Their reports
dealt, in the main, with issues of accountability and full disclosure in financial reporting and are discussed further
under Objective 5. It is evident that codes and standards of good business ethics and corporate governance are
constantly evolving worldwide, although their underlying principles are fairly universal.
797.
On internal codes of ethics, consultations with members of the business community in Dar es Salam revealed
that most companies do have their own tailor-made internal codes. The codes are duly brought to the attention
of employees and are also pasted in conspicuous locations in company premises for the benefit of all staff. It was
not clear whether these internal codes encourage ‘whistle blowing’ by stakeholders (i.e. employees, contractors
and the public) to draw attention to fraud, theft, corruption, as well as poor health and safety practices. The last
is particularly relevant to the mining sector (a key player in Tanzania’s economy), because of the constant risks
to employees.
798.
Discussions with stakeholders in Mbeya and Dodoma revealed that the Tanzanian Chamber of Commerce made
an effort to provide institutional support for the promotion of formalisation of businesses and generally, the
adoption of best practices in the conduct of business.
799.
With regard to the ability of accountants to enforce codes of ethics, consultations with the business community
in Dar es Salam revealed an acute shortage of qualified accountants in Tanzania. The problem is therefore more
one of insufficient numbers than of poor performance. The National Board of Accountants and Auditors (NBAA)
considerably advanced the accountancy profession in Tanzania. However, the professional education still falls
short of international standards, compromising the quality of the professionals in the discipline.
800.
Apart from specific references to accountants and engineers in the CSAR, media practitioners have their own
external code of ethics issued by the Media Council of Tanzania, etablished by the media in June 1995. The
Media Council oversees the practice of the profession. It has an Ethics Committee that enforces compliance and
receives reports of breaches in the Code of Ethics.
801.
Consultations also revealed the diversity of media ownership in Tanzania and as such, media houses also provide
their own codes of ethics, policies and guidelines that must be adhered to by individuals within their organsations.
802.
Interaction with stakeholders across the regions confirmed that media practitioners recognise their fundamental
role in, (a) promoting the adoption of codes of ethics by different professions; (b) highlighting issues of ethics,
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