2. Message from GIZ & BGR
The study was commissioned by GIZ and BGR in order to:
• build on recent interest in CSR and provide a baseline from which to
further develop CSR in Lao PDR
• explore tangible measures for developing CSR among different
stakeholders by providing existing and potential examples of;
o the application of CSR type activities or
o measures that enable and encourage adoption of CSR
BGR and GIZ strongly encourage everyone concerned to use the report as
a tool for the introduction of social and environment standards and comply
to respective regulations.
3. What is CSR?
‘the continuing commitment by business to contribute to economic
development while improving the quality of life of the workforce and their
families as well as of the community and society at large’ (WBCSD)
• Various definitions (strict compliance through to strict philanthropy)
• Debate about the roles of business and government in promoting CSR
• 3 common approaches identified by GIZ (2011):
o Ethical CSR – Doing what’s right
o Altruistic CSR – Corporate philanthropy
o Strategic CSR – ‘Shared value’ and ‘social licence to operate’
• CSR towards compliance vs CSR beyond compliance
• ISO 26000 - Guidance on Social Responsibility
4. ISO 26000 Core Issues
• Organisational Governance
• Human Rights
• Labour Practices
• The Environment
• Fair Operating Practices
• Consumer Issues
• Community Involvement and Development
5. The Study
• Rapid baseline Assessment of Social and Environmental Regulations
and Standards in Lao PDR
• Six target sectors
• Desktop review
• 35 meetings with government and key sectoral informants
• Analysis of the potential to support opportunities for efficiently fostering
the growth of CSR (and sustainable development) in Lao PDR
6. Status of CSR in Lao PDR
• CSR still a relatively new concept
• CSR as a voluntary and business led initiative
• CSR approaches:
o Ethical – Organic and fair trade in the coffee and tea sectors
o Altruistic – ‘Buddhist CSR’ amongst local and regional companies
o Strategic – Concept of ‘shared value’ adopted by leading
hydropower and mining companies
• ‘Regulatory CSR’ emerging in GOL policy and legislation
7. CSR Drivers in Lao PDR
• Tourism, Coffee and Tea Sectors
o Consumer demand (ecotourism packages, organic/fair trade products); and
o Environmental and social credentials of company operators and service
providers
• Hydropower and mining
o Investor demand (internationally financed projects)
o Development and maintenance of ‘social licence to operate
o Maintain competitive advantage in sectors where ‘best practice’ is becoming
more commonplace
• Transport and Logistics Sector
o Limited incentive due to protectionist policies that limit involvement of
international companies
8. CSR Drivers in Lao PDR
• ASEAN
o Significant policy and legislative reform across all Lao government sectors
o CSR is an important focus of the ASEAN socio-cultural pillar
o ASEAN CSR Network
• Lao Business Community Interest
o CSR measures as a way to drive sustainable development in developing
countries
o Increased interest among sections of the Lao business community in recent
years
9. CSR in Lao PDR
Coffee Sector
• Sector Overview: Niche vs
quantity producers / traders.
• Key CSR drivers: Consumer
demand (international coffee
markets).
• CSR Initiatives: Local and
International Certification
(Organic, Fair Trade, Rainforest,
UTZ, 4C).
• Opportunities: Promote
importation of CSR; Support Lao
Organic Initiative; Promote
regional cooperation (ACF etc…)
Photo: Sinouk Coffee producers
10. CSR in Lao PDR
Tea Sector
• Sector Overview: Smallholders
vs contract farming.
• Key CSR drivers: Consumer
demand (organic/FT tea markets).
• CSR Initiatives: Local and
International Certification
(Organic, Fair Trade, Rainforest,
UTZ).
• Opportunities: Establishment of
Lao Tea Association; Support Lao
Organic Initiative; Develop
linkages between tea and tourism
Photo: Tea plantation in Phongsaly
11. CSR in Lao PDR
Tourism Sector
• Sector Overview: Domestic vs
International/regional
• Key CSR drivers:
Consumer/stakeholder demand
for green products and services.
ASEAN Tourism Standards
• CSR Initiatives: Local and
International Certification (The
Mark, Green Globe, ISO, UN
Code of Ethics for Responsible
Tourism).
• Opportunities: Vocational
training, Lao Standards, ASEAN
co-operation
Photo: Vang Vieng
12. CSR in Lao PDR
Transport &
Logistics Sector
• Sector Overview: Logistical islands,
international/domestic transport
companies.
• Key CSR drivers: Stakeholder
demand (for international companies).
• CSR Initiatives: Limited. Road safety
programs (Beerlao), Driver safety
systems (PBM).
• Opportunities: Support for integrated
logistics infrastructure, Support GOL
with EST, establishment of transport
training centre Photo: Isuzu truck near Luang Prabang
13. CSR in Lao PDR
Hydropower Sector
• Sector Overview: Internationally
financed vs domestic/regionally
financed projects.
• Key CSR drivers: Stakeholder
demand, lender requirements,
corporate strategy.
• CSR Initiatives: Community
programs, infrastructure
development, education.
• Opportunities: Support HWG on
sector specific CSR initiatives,
Assist MEM with hydropower
policy to encourage CSR (ie CDF)
Photo: Nam Theun 2 Dam
14. CSR in Lao PDR
Mining Sector
• Sector Overview:
International/regional/domestic/
artisanal
• Key CSR drivers: Stakeholder
demand, lender requirements,
Industry standards, corporate
strategy.
• CSR Initiatives: Community
programs, infrastructure
development, education.
• Opportunities: Re-establishment
of Lao Mining Association,
emerging CSR mining program,
EITI
Photo: Phu Bia Mining Phu Kham Mine site 2012
15. Potential next steps
Development Co-operation
• Coordinate CSR training programs and activities with business community
• Co-ordinate establishment of a CSR stakeholder committee
• Integrate sector-specific CSR components into existing / up-coming
development programmes
Business Community
• Work with GOL to develop a country-specific understanding of CSR - develop
a joint statement on CSR in Lao PDR
• Develop a MOU with regional COC’s and business associations of CSR
across Southeast Asian region
• Membership of ASEAN CSR Network
16. Potential next steps
Lao Government
• Continue to strengthen implementation and enforcement of current legislative
framework
• On-going engagement with business community on the development of policy
and regulations which are intended to mandate CSR
• Work with business community and development sector to further adopt Lao
specific standards for business and industry (i.e. Lao Organic, ‘The Mark’)
• CSR incentives for the business community (i.e. tax deductions) for additional
investment into CSR activities and the adoption of ‘international best practice’
CSR
17. Acknowledgements
• Government of Lao PDR
• Key informants for each sector
Please contribute ideas for further discussion at: http://bit.ly/csr-ideas
18. Thank You
Please send any feedback about the CSR report to:
Earth Systems GIZ
Level 5, Alounmai Tower, 23 Singha Road 247/19 Watnak Yai Road
Ban Nongbone, Vientiane, Lao PDR Ban Thaphalanxay, Vientiane, Lao PDR
Tel: +856-21 454 434 Tel: +856-21 353 605
Fax: +856-21 454 434 Fax: +856-21 312 408
Email: enviro@earthsytems.com.au Email: giz-laos@giz.de
Website: www.earthsystems.com.au Website: http://www.giz.de/en/
