The role of multinational business corporations to sustainable development : the case of Tanzania Tobacco Processing Ltd

Abstract

There is a certain tension between MNCs and the local environment where these MNCs operate. Depending on where in the world the company acts, where it sells and produces its products, frequently there are different culture, values, beliefs and social patterns. To overcome the tension between the two actors, principles and codes of conduct can be seen as a response to reduce this tension between the communities and companies. Most of MNCs have principles on Corporate Social Responsibility (CSR), where they have to help the communities in development process. The main objective of this study is to examine the role of multinational corporations on sustainable development with the specific focus on Tanzania Tobacco Processing Company (TTPL). The study was conducted in Morogoro municipality and Sikonge district in Tabora region. The study approaches were both qualitative and quantitative. The respondents were 100 in number. They were approached to give the required information through questionnaires and interviews. The study looked at how TTPL helps the community to achieve sustainable development through CSR. In exploring the efforts made by TTPL to figure out and maintain sustainable development, the study explore first on how TTPL helps to sustain the wellbeing of its employees. It was found that TTPL invested in its employees by increasing human capital and in the society through commitments to Corporate Social Responsibility. It was revealed to the study that TTPL increased human capital through job rotation, mentoring, coaching, job context, job content and job enrichment. The increased human capital resulted to employees’ motivation something essential for improving organisation performance. The CSR extended to community’s health, education and environmental sectors. In these areas, TTPL had established development projects for the good of the communities in which it was operating. However, it was found that there were little and inactive participation and involvement of the community members in the established development projects especially in the early stages of the projects. TTPL involve community leaders who act as the representatives of the whole community during the decision-making process. These community leaders do not have any say in this meetings; they attend just to bring feedback to the community. The inactive or low participation of the community members is dangerous to the sustainability of the established and implemented projects. For the projects to be sustainable community members must be involvement right from the beginning of the project this is due to the fact that, it is the society members who know what they need the most when it comes to poverty eradication.