Lao Firms Boost Responsible Business Practices

Enterprises across the Lao People's Democratic Republic are taking steps toward greater competitiveness and long-term sustainability by integrating responsible business conduct (RBC), the labour dimension of human rights due diligence and environmental, social and governance (ESG) considerations into their operations.

Organized by the International Labour Organization (ILO) and the Lao National Chamber of Commerce and Industry (LNCCI), in collaboration with provincial chambers of commerce and industry, a series of capacity building workshops took place during October in Vientiane, Luang Prabang and Savannakhet.

The workshops introduced the concept of responsible business conduct in line with global and regional policy developments, highlighted the relevance of international labour standards, and discussed the business case for integrating labour rights considerations into enterprise management systems.

Particular emphasis was placed on the social dimension of ESG frameworks and the importance of the Fundamental Principles and Rights at Work. Participants explored practical approaches to identifying labour-related due diligence requests and strengthening stakeholder engagement within supply chains.

"Developing company policies and putting these principles into practice will help enterprises become more sustainable and competitive, particularly in integrating into international markets and global supply chains. It can support enterprises in attracting investment and building trust among workers, customers and business partners," said Xaybandith Rasphone, Vice-President of LNCCI.

In all more than 130 representatives from enterprises in sectors including garment manufacturing, tourism and hospitality, electronics production, food and beverage processing, agriculture, logistics and construction took part. Officials from provincial labour and social welfare authorities, employers' organizations, workers' organizations and academic institutions also participated.

"Strengthening responsible business conduct and ESG is important for promoting decent work and sustainable enterprises. These workshops help enterprises to translate international labour standards into action at the workplace level," said Viengprasith Thiphasouda, ILO National Coordinator in Lao People's Democratic Republic.

The workshops were conducted under the ILO's Building Responsible Value Chains in Asia through the Promotion of Decent Work in Business Operations (Phase II) project, funded by the Ministry of Economy, Trade and Industry of Japan. The project supports enterprises and tripartite constituents in the Lao People's Democratic Republic to promote responsible and sustainable business practices that align with national legal frameworks and the principles of international labour standards, guided by the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy.

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