Japanese Firms in Laos Advance Human Rights Due Diligence with ILO-JETRO Support

In a decisive step towards embedding ethical practices in international business operations, Japanese enterprises in the Lao People’s Democratic Republic (Lao PDR) deepened their understanding of responsible business conduct (RBC) and human rights due diligence (HRDD) through a dedicated seminar organized by the International Labour Organization (ILO) in partnership with the Japan External Trade Organization (JETRO) Vientiane Office.

The seminar, titled “Responsible Business Conduct and the Labour Dimension of Human Rights Due Diligence”, was held on 27 June 2025 in Vientiane, the capital of Laos. It brought together 11 corporate leaders and senior managers from Japanese manufacturing and logistics firms operating in the country to explore how aligning business practices with international labour standards can enhance both operational integrity and competitive advantage.

Emphasizing Corporate Responsibility and Risk Management

In his opening address, Yasushi Kikuchi, General Director of JETRO Vientiane, underscored the strategic value of HRDD for international companies.

“While we consider human rights due diligence important from a risk management perspective,” he stated, “we also believe that strengthening HRDD initiatives can help Japanese businesses gain a new competitive edge.”

This dual focus on ethical responsibility and strategic opportunity reflects a growing trend among global corporations—particularly in Asia—to integrate environmental, social, and governance (ESG) principles into core business models.

A Deep Dive into Labour Rights and International Standards

The session was guided by the ILO’s Tripartite Declaration of Principles concerning Multinational Enterprises and Social Policy (MNE Declaration)—a foundational framework that sets out international expectations for how businesses should uphold labour rights and decent work principles in their operations.

Yuki Kobayashi, Programme Coordinator for the ILO’s Building Responsible Value Chains in Asia project, urged participants to see HRDD not as a compliance burden but as a catalyst for innovation and improvement.

“It is important to connect HRDD with existing initiatives and management systems within the company to drive continuous improvements,” she noted.

Participants gained insights into regional and global trends related to RBC and business and human rights, with special attention given to how the labour dimension of HRDD plays out in practical terms—especially in emerging markets like Laos, where local regulatory frameworks and enforcement mechanisms are still evolving.

Interactive Learning Through Case Studies and Peer Exchange

The seminar featured a case study designed to contextualize HRDD within the everyday realities of workplace management in the Lao PDR. Through interactive discussions, participants shared personal experiences, challenges, and innovative practices related to labour rights promotion, workplace grievance mechanisms, and supply chain monitoring.

By comparing approaches and identifying common pain points, the managers engaged in peer learning and generated actionable ideas to strengthen internal policies and collaborate more effectively with local stakeholders, including workers, community leaders, and government agencies.

The event concluded with a forward-looking dialogue on how to build more sustainable, inclusive, and rights-respecting workplaces in Laos—particularly in light of increasing global expectations around corporate responsibility and ESG reporting.

Part of a Larger Effort: Building Responsible Value Chains in Asia

The seminar was organized under the umbrella of the ILO’s broader initiative: “Building Responsible Value Chains in Asia through the Promotion of Decent Work in Business Operations (Phase II)”. Funded by the Ministry of Economy, Trade and Industry of Japan (METI), the project seeks to advance responsible business conduct and ensure compliance with international labour standards throughout Asia.

In Laos, the program supports companies in:

• Enhancing compliance with national labour laws

• Promoting the decent work agenda

• Aligning with UN Guiding Principles on Business and Human Rights

• Building inclusive and transparent value chains

These efforts are especially critical as Laos seeks to expand its role in regional supply chains while safeguarding the rights and wellbeing of its growing industrial workforce.

Looking Ahead: A Shared Responsibility for Ethical Growth

With global scrutiny intensifying around how businesses uphold human rights in their operations and supply chains, seminars like this represent a crucial platform for knowledge exchange and capacity building. For Japanese companies operating abroad, particularly in developing markets, the path to long-term success lies in balancing profitability with principled business conduct.

As stakeholders across sectors increasingly demand transparency, fairness, and accountability, such proactive learning initiatives are not only timely but essential.

In the words of one participant:

“This seminar didn’t just raise awareness—it gave us a toolkit to take meaningful action in our operations.”