Corporate governance and the enforcement of standards: An appraisal of standards organizations in Tanzania

Abstract

This article debates the enforcement of quality standards within Tanzania’s corporate governance framework. The article probes into whether the continuing increase in the number of organizations responsible for monitoring and enforcing quality standards of consumable and non-consumable industrial products (also referred to in this article as standards organizations) has an impact on protecting the rights and welfare of stakeholders (consumers). Specifically, the article examines the extent to which these organizations have been effective in carrying out their prescribed functions. Using documentary review, the article concludes that Energy and Water Utilities Regulatory Authority (EWURA), Tanzania Bureau of Standards (TBS) and Tanzania Food and Drugs Authority (TFDA) have not been effective in monitoring and controlling the enforcement of standards, a situation that puts consumers’ welfare and public health at stake. Such ineffectiveness is attributed to a number of factors such as lack of adequate financial and human resources, weaknesses in the synergies among standards organizations, poor networking with other stakeholders and weak legal framework that deprives these organizations of some of the powers to make final decisions. Finally, the article emphasizes that any successful attempt to effectively enforce standards in Tanzania has to address these challenges.