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Debate on firms' role in society heated [Citizen, The (Tanzania)](Citizen, The (Tanzania) Via Acquire Media NewsEdge) Dar es Salaam. A debate is going on whether to enact the Corporate Social Responsibility (CSR) Act or not. Supporters of the law say it is necessary for the benefit of communities around investment areas. In 2010, for example, Dr Peter Kafumu, then commissioner of Minerals, proposed that the CSR clause be incorporated into the new mining law. However, the proposal did not materialise. Mr Ngala Lwitiko, of Imperial Attorneys Chamber, would like a study to be conducted on CSR and how it is handled. However, the Legal and Human Rights Centre conducted a survey in areas where CSR is conducted and established that 53.3 per cent of respondents did not see any benefits of investors in their areas, 7.9 per cent were unsure whether certain benefits came from investors or their local authorities and 39 per cent affirmed that investments in their areas were not beneficial to them. The report titled 'Human Rights Business Report in Tanzania -2013', found since the CSR was non-existent there were challenges involving CSR. Some investors were promising to contribute to socioeconomic development projects like the provision of jobs, construction of roads, dispensaries and classrooms as a ruse of getting land, but nothing is done thereafter. According to the report, experience shows that many such promises are not documented. Nor are there written contracts or agreements to indicate that they committed themselves to doing so. Such plain promises make it easy to avoid fulfilling their obligations. The centre proposed that Tanzania emulate Scandinavia countries and India on CSR regulation. According to some economists, mining experts and lawyer, some investors have been valuing CSR and have been fulfilling their promises. Mr John Bosco Mwakatage said all serious investors knew what it meant by working with the communities through complementing efforts aimed at fighting poverty. "Investment cannot be safe while communities around it are starving. That is why investors offer employment to the local labourers, build schools, health centres, roads and provide other services," commented Mr Mwakatage, who is experienced in mining for three decades. Mwakatage, a specialist in mining geometry, said despite the involvement of some investors in community development, local communities should know that it was the responsibility of the government to ensure its citizens get services. "Investors pay taxes and other charges. It is upon the government to use the revenue for the benefits of the people." A University of Dar es Salaam lecturer, Prof Haji Semboja, said he was aware that some companies were doing CSR activities to address community problems. "Mining companies have gone far in CSR. They have set up special departments that ensure that projects they agree to undertake are implemented," said Prof Semboja. He explained that if the law was made, it would have to be well defined to show which companies should be accountable for CSR. However, he cautioned that if the CSR Act was aimed at raising the revenue through taxes to find development activities, it might be difficult to achieve the goal, given the current situation whereby levies paid to the local government were yet to have more impacts. There is also concern on whether Tanzania will have capacity to enforce the CSR Act, owing to the experience of weak enforcement of some regulations. "I support the CSR law, but it needs high wisdom and capacity to implement," said Nuru Haule, a lawyer. About the compliance once the law is made, the Confederation of Tanzania Industries (CTI) board member, Mr Stephen Kilindo, said there could be a way of motivating companies to act accordingly. "The regulation may be defined in such way that if a company offers a certain amount as part of its net profit for CSR, it will have some benefits. This will help compliance, otherwise it will be challenging," Mr Kilindo told BusinessWeek. In India, one of the first countries to have the CSR clause, the clause wants companies to pay 2 per cent of net profit in the preceding three financial years. To ensure compliance, the Act wants the formation of CSR Committee, within the board of directors to devise, recommend and monitor CSR activities and the amount spent on such activities. The committee must consist of three or more directors, at least one of which must be an independent director, and the composition of CSR committee must be disclosed in the annual board report. It only applies to registered companies: those with net worth of $80 million, turnover of $160 million or net profit that exceeds $830,000. The law led into a hot discussion with players taking different sides, and penned pieces of opinions to show their stands. Wipro chairman Azim Premji was quoted as saying: "I don't think you generate CSR by putting statutory requirements. I think there is enough social consciousness among the larger companies to drive it on the basis of what they consider their responsibility." Kordant Philanthropy Advisors said in a report that companies should not view the CSR clause as an onerous reporting requirement or a necessary cost of doing business in India. Instead, they should utilise the 2 per cent amount of the CSR clause as an opportunity to effect positive impact in the communities where they work and in the communities they affect. According to LHRC, CSR in Tanzania remains challenging given that the extent to which investors contribute to the CSR is unknown because the government is apparently uninterested of this area. The little of what investors contribute can be found in media and companies annual report, which could be verified anyhow. However, a close check in Tanzania media shows number of coverage showing companies giving back to the communities as part of their CSR, describing it as part of their company's commitment. One example is Tanga Cement whose Corporate Social Investment Policy states that the company will invest 1 per cent of its profit before tax in specific and pre-defined projects, associations and charities in areas like education, health, community development and environment. 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