Mar 13, 2012

Laos - Corporate social responsibility contributes to growth of socio-economic development



(KPL) More than 200 representatives from various sectors of government, businesses, development partners and experts gathered in Vientiane at an annual forum on international law on 12 March, to share ideas on the concept of corporate social responsibility and its relevance to the Lao PDR.

The meeting is aimed at raising awareness and understanding of Corporate Social Responsibility (CSR) in the Lao PDR. This is vital as the country opens up in the process of economic integration in the region and the world, said Deputy Minister of Foreign Affairs Alounkeo Kittikhoun at the opening ceremony of the forum.

The event was co-chaired by UN Resident Coordinator Minh Pham, Charge d' Affaire of European Union to the Lao PDR, Mr Michel Goffin. Both of organizations are main sponsors of the international law project and accelerated capacity development for Lao PDR in international law.

"I am optimistic that we can use this forum to explore for direction and the way forward to improve and consolidate CSR in the Lao PDR, said Deputy Minister of Foreign Affairs Alounkeo, adding that �today, CSR is one of the most important topics discussed at all levels of policy making: at the UN, at the regional level and at national policy levels."

"As the regional grouping moves firmly towards the building of an ASEAN Community by 2015, the issue of CSR has become very much relevant to the ASEAN Economic Community," he pointed out.

A central element of CSR is the well-being of people. Therefore the ASEAN Inter-Governmental Commission on Human Rights has initiated a thematic study on Corporate Social Responsibility and Human Rights among its different thematic studies in its the 5th year work plan.

For the Lao PDR these developments concerning CSR are very important. Rich in natural resources, the Lao PDR pursues its economic development based on its national potential and comparative advantage with due regards to the country' s obligations and commitments under treaties and general international law. In this process, the Lao government attaches importance to environment; protection, social justice and human development among others. Under international human rights law and environmental law, the state has the primary responsibility to promote and protect human rights and to protect the environment. The private sector has a role to play in this regard. CSR provides an avenue for private sector to contribute.

The private sector is vital to the implementation of the 7th NSEDP achieve the target of 8% economic growth per annum to support achieving the MDGs, which stresses the need to ensure sustainable development by balancing economic development with social and cultural development, and the protection of the natural environment. In pursuance of this the Lao PDR has policies in place to promote CSRE in the country, although CSR may sound new in Laos.

The existing national policies relating to CSR consist of the national Constitution and several laws adopted by the National Assembly; and the sub-laws, decrees and policies adopted by the government. The laws have been approved so far including environment protection, mining, electricity, forestry, agriculture, water and water resources, labour, enterprises and the Prime Minister' s decree No 192 on compensation for the affected people by development projects.

In addition, the Lao PDR is a party to several treaties in the field of environmental protection, biodiversity, human rights, and labour standards. Furthermore Laos has signed agreements on promotion and mutually protection of investments, which have due regard to the protection of environment. Furthermore, development projects and concession agreements signed by the government investors include terms and conditions relating to mitigation of environmental and social impacts.



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