Corporate Governance and Corporate Social Responsibility Principles as Incorporated in Tanzania, Kenya, and Uganda Corporate Laws

30 Pages Posted: 21 Jul 2018

Date Written: June 29, 2018

Abstract

'To attract companies like yours . . . we have felled mountains, razed jungles, filled swamps, moved rivers, relocated towns...all to make it easier for you and your business here.' Korten quotes a Philippine government advertisement (1995). "Successful governance in the world in the 21st Century requires companies to adopt an inclusive and not exclusive approach. The company must be open to institutional activism and there must be greater emphasis on the sustainable or non financial aspects of its performance. Boards must apply the test of fairness, accountability, responsibility and transparency to all acts or omissions and be accountable to the company but also responsive and responsible towards the company's identified stakeholders. The correct balance between conformity with government principles and performance in an entrepreneurial market economy must be found, but this will be specific to each company". King II Report (2002). The quotations above entails the importance of encompassing the two concepts, Corporate Governance as all of the above activities needs a good management of the company including the relationship between the company and its employees, and Corporate Social Responsibility as the activities above influence the living organisms and conditions of the individuals who are living in those mountains, jungles, swamps, rivers, and towns, and therefore it has to be socially responsible for any act affecting them, and also responsible in creating the better living conditions and environments surrounding those living organisms. Corporate or Company Law includes the law concerning the establishment, functional and administration of corporations and their associations with other legal persons. Corporate Governance and corporate Social Responsibility principles are some of the principles used worldwide in relation to handle a matter of business activities specifically corporate activities. There is an assertion that these principles are new phenomenon and not well incorporated to many of the African countries particularly on the laws dealing with businesses. This paper aims at assessing a number of business laws of at least three African countries including Tanzania as to whether, the same principles have been stipulated or not. For the purpose of this paper, Tanzania, Kenya and Uganda legal frameworks are going to be used to assess the position of the two concepts named above.

Keywords: Corporate Governance, Corporate Social Responsibility Principles, Business Law

Suggested Citation

Magalla, Asherry, Corporate Governance and Corporate Social Responsibility Principles as Incorporated in Tanzania, Kenya, and Uganda Corporate Laws (June 29, 2018). Available at SSRN: https://ssrn.com/abstract=3205573 or http://dx.doi.org/10.2139/ssrn.3205573

Asherry Magalla (Contact Author)

Independent ( email )

8401 Dar Es Salaam
Dar Es Salaam, +255
Tanzania
0716348882 (Phone)

HOME PAGE: http://https://ssrn.com/author=2828854

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