Mai Savanh Lao is a Fair Trade company in Laos established in 2005 to help mulberry farmers and silk weavers. It produces high quality Lao silk and tea products. The company employs 40 full-time staff and works with 150 silk farmers and 40 weavers. It adopts Fair Trade values like paying fair prices, ensuring good working conditions, and investing profits back into the community and business. Adhering to Fair Trade principles has helped the company access international markets while creating opportunities for disadvantaged producers and positive social impact.

1. Mai Savanh Lao
and CSR

2. • Mai Savanh Lao ("Silk from Paradise") is a Fair Trade Lao Silk and Tea
Company established in 2005 in Laos
• The idea to set up Mai Savanh Lao came out of a development
project that helped mulberry farmers and silk weavers produce high
quality Lao silk scarves
• In light of the positive impact the project had on the population in

3. Mai Savanh Lao in 2014
• Head Quarters in Vientiane
• Silk and Tea Farm in Sekong province
• 40 employees (full time)
• 150 contract farmers in southern Laos (silk
production)
• 40 contract weavers in northern Laos

4. Activities and income in 2014
• Silk products : 75%
• Food (Tea, Spirulina,
Nuts): 25%
• Export : 70% ( 90% EU)
• Local market : 30%

5. Expected growth
Silk: 10-15% / year
Food: 30-40% / year

6. We have a Voice, we have a choice
• All 4 Share holders share the same vision on
CSR
• We adopted Fair Trade values since the first
day of MSL
• No pressure for profit distribution as MSL is
run as a “Non for Profit” Business
– 80% of profit goes back to stabilize the business or develop new
activities
– 10% goes to a company security fund
– 10% goes to a charity fund

7. Fair Trade
• Fair Trade is a strategy for poverty alleviation and sustainable development. Its
purpose is to create opportunities for producers who have been economically
disadvantaged or marginalized by the conventional trading system.
• Fair Trade is also a well balanced Package of Corporate Social Responsibility
• Mai Savanh Lao is a member of the World Fair Trade Organization (WFTO)
and is co-founder of Fair Trade Laos,
• Promoting and explaining the FT values to employees, production partners
and customers is adding a lot on our business journey

9. 10 principles of Fair Trade
• Creating Opportunities for Economically Disadvantaged
Producers
• Transparency and Accountability
• Fair Trading Practices
• Payment of a Fair Price
• Ensuring no Child Labor and Forced Labor
• Commitment to Non Discrimination, Gender Equity and
Freedom of Association
• Ensuring Good Working Conditions
• Providing Capacity Building
• Promoting Fair Trade
• Respect for the Environment

10. Key points in our daily work
• Worker hiring, signing contracts create trust
• Capacity building, on the job Training create satisfaction
• Focus on quality, soft management create involvement
• Share the vision and the success create a proud team
• CSR or FT is not “green washing” for us but real investment
of money and energy in persons
• It is not philanthropy or charity but It is a vital investment in
persons for a stronger future and our business success

11. Results of good CSR
Social aspects
– More stability among the workers
– Less staff rotation
– Less training costs
– Less production drops or stops
– Better involvement of employees in Company
strategies
– Employees are part of success and get rewarded

12. Results of good CSR
Environment
• Silk is “green”
– No use of pesticides or herbicides
– Use only safe Azo free dyes
• Go for Organic Certified Food
• Develop new ways for a safer agriculture
– Be innovative (find better technologies)
– Be creative (find new products)
• Good feeling not being a bad company
– not exposing workers or consumers to toxic products
– Take care of Nature

13. Results of good CSR/FT certification
Business side
• Access the world wide Fair Trade market network
(70 Countries)
• Being clearly identified by potential customer
• 60-70% of MSL Export go to FT companies or
companies interested in FT values
• A world wide market in expansion

14. Difficulties
• CSR as well as Fair Trade is new to Laos in
many places
• No direct immediate financial return make it
not so attractive

15. Thank you
Thank you