History of CSR:
- Lao is a party to several treaties in the field of environmental protection, biodiversity and labour standards.
- Lao has signed Agreements on the Promotion and Mutually Protection of Investments, which have due regard to the protection of environment.
- Development projects and concession agreements signed by the Government and investors include terms and conditions related to mitigation of environmental and social impacts.
- CSR remains an issue of international business in Lao, with very little awareness of the concept among local companies and government, increasing awareness among companies wanting to make international investments, and strong awareness in internationally headquartered companies.
- Hydropower and mining － potential scale and risks associated with environmental and social impacts has led to heightened awareness of CSR amongst the public, government and businesses operating in the
- International financiers require borrowers to go beyond national regulations and comply with strict international environmental and social safeguard
- Tourism, coffee and tea demand from international markets is the principal driver of CSR in these three sectors.
- 2012 – first ever forum to discuss the role of business and CSR
Legal framework and Initiatives:
- Child Labour and Forced Labour
No provision for light work under the labour law and the minimum age for employment is 14 years, there are about 75,231 child labourers in the age group 5-13 years, while the rest (119,394) are aged 14-17 years. - Labour law
There are shortages of labour at almost every age level in Lao. Employment contracts are mandatory, but rarely used in practice. - Corruption
Corruption remains a major issue for business in Lao. This year the government has taken a harder stance against it, with the Deputy Prime Minister taking charge of an investigation to help eradicate corruption - Environment
Chapter 1, Article 4 of Lao Environmental Protection Law states that “All Lao people, resident aliens, stateless persons and residing foreigners, engaged in any production or service have a responsibility to protect the environment.” - CSR Law
There are no current laws dealing explicitly with CSR in Lao PDR.
Good practice:
Companies known for implementing CSR iinclude:
- Lao Brewery Company Limited
- Sinouk Coffee Company
- Nam Theun 2 Power Company
- Minerals and Metals Group (MMG)
Latest news on CSR:
http://www.eco-business.com/news/concerned-groups-condemn-laos-planned-pak-beng-dam/
References:
GIZ and BGR (2015) CSR in Lao PDR: Baseline Assessment of Social and Environmental. Regulations & Standards, Vientiane, February 2015. Vientiane, February 2015.
http://www.ilo.org/ipec/Informationresources/WCMS_202334/lang–en/index.htm
https://www.export.gov/article?id=Laos-Labor
https://laotiantimes.com/2017/01/19/corruption-in-laos/
https://www.socialprogressindex.com/?code=LAO
