csr in lao pdr earth systems smithies
TRANSCRIPT
Corporate Social Responsibility in Lao PDR
A baseline assessment of social and environmental regulations and
standards
Message from GIZ & BGRThe 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.
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 righto Altruistic CSR – Corporate philanthropyo Strategic CSR – ‘Shared value’ and ‘social licence to operate’
• CSR towards compliance vs CSR beyond compliance
• ISO 26000 - Guidance on Social Responsibility
ISO 26000 Core Issues• Organisational Governance
• Human Rights
• Labour Practices
• The Environment
• Fair Operating Practices
• Consumer Issues
• Community Involvement and Development
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
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
CSR Drivers in Lao PDR• Tourism, Coffee and Tea Sectors
o Consumer demand (ecotourism packages, organic/fair trade products); ando Environmental and social credentials of company operators and service
providers
• Hydropower and miningo Investor demand (internationally financed projects)o Development and maintenance of ‘social licence to operateo Maintain competitive advantage in sectors where ‘best practice’ is becoming
more commonplace
• Transport and Logistics Sectoro Limited incentive due to protectionist policies that limit involvement of
international companies
CSR Drivers in Lao PDR• ASEAN
o Significant policy and legislative reform across all Lao government sectorso CSR is an important focus of the ASEAN socio-cultural pillaro ASEAN CSR Network
• Lao Business Community Interesto CSR measures as a way to drive sustainable development in developing
countrieso Increased interest among sections of the Lao business community in recent
years
CSR in Lao PDRCoffee 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
CSR in Lao PDRTea 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
CSR in Lao PDRTourism 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
CSR in Lao PDRTransport & 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
CSR in Lao PDRHydropower 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
CSR in Lao PDRMining 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
Potential next stepsDevelopment 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
Potential next stepsLao 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
Acknowledgements
• Government of Lao PDR
• Key informants for each sector
Please contribute ideas for further discussion at: http://bit.ly/csr-ideas
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 RoadBan Nongbone, Vientiane, Lao PDR Ban Thaphalanxay, Vientiane, Lao PDRTel: +856-21 454 434 Tel: +856-21 353 605Fax: +856-21 454 434 Fax: +856-21 312 408Email: [email protected] Email: [email protected]: www.earthsystems.com.au Website: http://www.giz.de/en/