Chapter 19: Engaging Transnational Corporations in Community Microenterprise Initiatives in Subsidiary Operations: The Case of TNCs in Tanzania
Aloysius Newenham-Kahindi INTRODUCTION This chapter discusses the details of a 2006 in-depth case analysis (Yin, 2003; Bryman, 2004) of three transnational corporations’ (TNCs) engagement in the developing country of Tanzania. The qualitative research involves three TNCs that were actively engaged in microenterprise initiatives that were intended to address a variety of social issues in the Tanzanian communities where the companies operated. The study seeks to identify the “how” and “why” of each TNC’s engagement. The subjects of the three case studies are two global banks and a mining company, each representing a subsidiary operation of the parent TNC. The two banks were located in urban cities, and the mining company was located in the rural area that lies south of Lake Victoria in Tanzania. Each case was selected because it showed clear evidence of microenterprise initiative corporate policies through social investment projects and an active engagement with various local stakeholders, such as non-governmental organizations (NGOs), the public sector, social activists, and local governments. Social investment units were administered by innovative individual managers in each TNC. Each manager had been tasked with the responsibility of initiating new ways to engage their company with local stakeholders and to find ways to expand their business opportunities locally. Through their company’s social investment divisions, each TNC was selected because it had developed highly successful track records with local partners, ranging from corporate social responsibility programs, pro-poor entrepreneurs, social enterprise groups, and knowledge spillover to developing microenterprise investment policies in various communities. 247 248 Contemporary...
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