TANZANIA

Policy brief no. 2

2015

UPHOLDING CORPORATE SOCIAL RESPONSIBILITY AND THE

ROLE OF CIVIL SOCITIES

1. Background
Tanzania shows unprecedented discoveries of natural gas. As of December 2014,
Natural gas discoveries totaling about 8 trillion cubic feet (TCF) and 45.2 TCF have
been made in onshore and offshore basins respectively. The deep - sea discoveries
have brought about new exploration targets for hydrocarbons in Tanzania and the
whole of Western Indian Ocean Region.
While such development brings crucial opportunities to the Government and
the people, for instance, through employment creation, improved livelihoods,
and poverty eradication, it also brings with it dreadful risks both to people and
the environment. This could be exacerbated by infancy of regulatory framework
on oil and gas. Therefore, it is imperative for oil and gas companies to base their
behavior on international standards, guidelines or rules of best practices that are
in accordance with accepted principles of right or good conduct in the context of
specific situations, even when these situations are challenging i.e., Corporate Social
Responsibility (CSR).
The National Natural Gas Policy of 2013 defines Corporate Social Responsibility
(CRS) as the commitment by the business to share benefits arising from the business
with the community in which it operates. Beyond the feel good outcome of such
practice, CSR is an instrumental in developing and maintaining sound and trustworthy
relations between business and the community.
The role of Civil Society Organizations (CSOs) is acknowledged in the National
Policy on Natural Gas, 2003 and the National Environmental Policy, 1997. The Policy
recognizes CSOs by being independent, play a critical role in implementation of
environmental objectives, as they possess diverse experience, expertise and capacity.
Moreover, the National Natural Gas Policy of 2013 requires the Government to
ensure a contractual obligation to all investors and contractors in the natural gas

activities to undertake locally prioritized community development programs; and

ensure companies in the natural gas industry submit credible Corporate Social
Responsibility Action Plans to the appropriate authority. However, it has been noted
that the preparation and implementation of the CSR Action Plan is not in line with
the local community needs and priorities. It is worth to note that the preparation of
CSR Action Plan is not participatory and rather a top-down invasion.
The main purpose of this Policy Brief is to show the importance of the Corporate Social
Responsibility in oil and gas industry, its contribution to local communities poverty
reduction and the role of civil societies in the preparation and implementation of the
CSR. Moreover, this Policy Brief is also intended to advocate for stronger voice and
more spaces for civil societies particularly in monitoring compliances and auditing
CSR action plan as well as ensuring accountability and transparency on investments
surrounding oil and gas investments in Tanzania.
2 Context
CSR Policies of oil and gas companies in Tanzania were assessed against the
international standard and practices. Mostly, the standard and good practices require
that a comprehensive CSR Policy to include six core subjects, namely: human rights,
good labor practices, the environment, fair operating practices, consumer issues,
community involvement and development.
It was noted that most of the CSR policies of oil and Gas companies operating in
Tanzania had incorporated only one subject which is Community involvement and
development. Regarding CSR implementation, most of the oil and gas companies
have made a significant effort in supporting the community in terms of health
services, education, water supply, improvement of infrastructures and sports.

3 Legal and Policy Implications

The Natural Gas Policy is still at infant stage (developed in 2013) and it stereotypes
CSR as a philanthropic issue (sharing profit) instead of advocating for ethical
corporate citizenship. The Policy prescribes that Local Government Authorities and
CSOs should be involved in setting up CSR strategies, however, it is anticipated
that mandate for monitoring and evaluation of the strategies shall be provided in
subsequent principal legislation and regulations of natural gas.
CSR policies of most oil and gas company embrace just one core subject, community
involvement and development; presumably, due to limitations existing of the Natural
Gas Policy 2013. Leaving out other five CSR core subjects, which are: human rights,
fair operating practices, consumer issues, the environment and labour practices.

CSOs have very limited access to relevant information and training, and lack
capacity to engage in a meaningful way in the petroleum development debate or
influence petroleum development or its consequences on the environment and local
communities.
Civil Society Organizations are not consulted in most oil and gas environmental
assessment studies. CSOs are acknowledged in National Environmental Policy as
critical group in environmental management. By being able to articulate environmental
and socio-economic issues of the society, their comments add significant value to
environmental assessments.
4. Policy recommendations
a) The National Policy on Natural Gas should provide framework that will enable
compliance of CSR by oil and gas companies and other investor in the supply
chain.
b) Subsequent regulatory framework on natural gas, principle legislations and
regulations, should give provisions for monitoring and evaluation of CSR
policies of oil and gas companies to Local Government Authorities who
should collaborate closely with CSOs
c) Companies should go beyond Corporate Social Responsibility (CSR)
d) Develop and customize industry standard metrics that define and address
the community needs.
e) Capacity building to CSOs on the basics of Corporate Social Responsibility
and auditing of CSR strategies of oil and gas companies.
f) The EIA reports on oil and gas projects should be made available to the
public and the Environmental Management Plans provided in the EIA reports
should be effectively implemented and monitored;
g) There is a pertinent need to build the capacity and enable CSOs to make a
follow up on implementation of the Environmental Management Plans.
h) Where there are no national standards and guidelines, the policy on natural
gas should emphasize the usage of international standards which require
organizations to go beyond regulatory requirements.
i) The Government should Facilitate indigenous firms to form partnerships with
international suppliers

For further information please contacts;

Novati Kessy, Program Officer, Oil and Gas, WWF Tanzania country office, Plot
350, Regent Estate Mikocheni, P.O.Box 63117, Dar es Salaam, Tanzania, Email.
NKessy@wwftz.org, info@wwftz.org, Website.www.panda.org
Acknowledgement
It is worth to note that most of the information which was analyzed, documented
and used to prepare this Policy Brief was collected from the consultations and
interviews conducted to members of Mazingira Network (MANET), and Mtwara
Region Non-Governmental Organizations networks (MRENGO).
We also feel indebted if we would not appreciate the insightful comments
which were given by the Oil and Natural Gas Environmental Alliance during
the stakeholders meeting workshop which was held in Bagamoyo on 10th to
12th December 2014. Their views and opinions helped to recast and revisit the
contents of this Policy Brief.
Disclaimer
The statements, opinions, and ideas used in this Policy Brief have been retrieved
and paraphrased from desk review research studies done by Environmental and
TANSHEQ Limited, Dunny Geo-informatics Consultancy and Services companies
respectively. The views presented in this document dont reflect the official
positions of the organisations or individuals involved.

World Wide Fund for Nature (WWF) is one of the worlds largest and most respected
independent conservation organizations. WWFs mission is to stop the degradation
of the earths natural environment and to build a future in which humans live in
harmony with nature.
info@wwftz.org