Lao Enterprises Advance Sustainability Through Responsible Business Practices

Viengprasith Thiphasouda, ILO National Coordinator in Lao PDR, underscored the importance of strengthening responsible business practices.

Enterprises across the Lao People’s Democratic Republic (Lao PDR) are accelerating efforts to build more competitive, resilient and ethical business models by integrating responsible business conduct (RBC), human rights due diligence in the labour sphere, and broader environmental, social and governance (ESG) principles into their organizational practices. This shift marks a significant step forward as Lao enterprises seek to align with international expectations, improve workplace conditions and strengthen their position in global supply chains.

Throughout October, the International Labour Organization (ILO) and the Lao National Chamber of Commerce and Industry (LNCCI), working closely with provincial chambers of commerce and industry, jointly organized a series of capacity-building workshops in Vientiane, Luang Prabang and Savannakhet. These workshops brought together a diverse group of business leaders, government representatives and social partners to deepen understanding of responsible business standards and their importance for long-term economic growth.

The training sessions introduced global and regional developments that guide responsible business conduct, including the OECD Guidelines for Multinational Enterprises, the UN Guiding Principles on Business and Human Rights, and ASEAN regional frameworks on sustainable business. Facilitators emphasized the growing global trend toward mandatory due diligence regulations, particularly in major export markets such as the European Union, and explained how compliance with international labour standards is becoming an essential part of doing business.

A central focus of the discussions was the social pillar of ESG—a dimension often overshadowed by environmental considerations but critical for building fair, inclusive and sustainable enterprises. Participants examined the ILO’s Fundamental Principles and Rights at Work, which include freedom of association, the elimination of forced and child labour, and the prohibition of workplace discrimination. Experts highlighted how these principles form the foundation for responsible business operations and are increasingly assessed by investors, international buyers and consumers.

Participants also explored practical tools for implementing labour-related due diligence, such as conducting risk assessments, engaging with workers and trade unions, improving occupational safety and health systems, and responding to supplier audits. Strengthening dialogue with local communities and enhancing transparency throughout supply chains were identified as key components of successful responsible business strategies.

According to Xaybandith Rasphone, Vice-President of the LNCCI, adopting responsible business practices brings clear advantages. “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,” he said.

The workshops drew more than 130 representatives from a wide range of sectors, including garment manufacturing, tourism and hospitality, electronics, agriculture, logistics, food and beverage processing, and construction. Their participation reflects growing recognition across industries that responsible business conduct is no longer optional—it is integral to market access, productivity, and long-term viability. Officials from provincial labour and social welfare departments, employer and worker organizations, and academic institutions also contributed to building a shared understanding of the country’s goals for sustainable enterprise development.

Viengprasith Thiphasouda, ILO National Coordinator in Lao PDR, underscored the importance of strengthening responsible business practices. “Enhancing RBC and ESG is essential for promoting decent work and sustainable enterprises. These workshops help enterprises translate international labour standards into action at the workplace level,” she said.

The initiative forms part of the ILO’s Building Responsible Value Chains in Asia through the Promotion of Decent Work in Business Operations (Phase II) project, supported by Japan’s Ministry of Economy, Trade and Industry. The project aims to help enterprises and tripartite partners in Lao PDR align national regulations and business practices with global standards, guided by the ILO Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy. Through this support, Lao businesses are better positioned to meet the expectations of international markets, promote decent work, and contribute to sustainable national development.

As global markets increasingly prioritize ethical production and transparency, Lao enterprises embracing responsible business conduct will be better prepared to seize new economic opportunities while ensuring that growth benefits workers, communities and the environment.