Mai Savanh Lao

and CSR

• Mai Savanh Lao ("Silk from Paradise") is a Fair Trade Lao Silk and Tea Company established in 2005 in Laos

• The idea to set up Mai Savanh Lao came out of a development project that helped mulberry farmers and silk weavers produce high quality Lao silk scarves

• In light of the positive impact the project had on the population in

Mai Savanh Lao in 2014

• Head Quarters in Vientiane • Silk and Tea Farm in Sekong province

• 40 employees (full time)

• 150 contract farmers in southern Laos (silk production)

• 40 contract weavers in northern Laos

Activities and income in 2014

• Silk products : 75%• Food (Tea, Spirulina,

Nuts): 25%

• Export : 70% ( 90% EU)• Local market : 30%

Expected growth

Silk: 10-15% / yearFood: 30-40% / year

We have a Voice, we have a choice

• All 4 Share holders share the same vision on CSR

• We adopted Fair Trade values since the first day of MSL

• No pressure for profit distribution as MSL is run as a “Non for Profit” Business– 80% of profit goes back to stabilize the business or develop new

activities– 10% goes to a company security fund– 10% goes to a charity fund

Fair Trade

• Fair Trade is a strategy for poverty alleviation and sustainable development. Its purpose is to create opportunities for producers who have been economically disadvantaged or marginalized by the conventional trading system.

• Fair Trade is also a well balanced Package of Corporate Social Responsibility

• Mai Savanh Lao is a member of the World Fair Trade Organization (WFTO) and is co-founder of Fair Trade Laos,

• Promoting and explaining the FT values to employees, production partners and customers is adding a lot on our business journey

10 principles of Fair Trade• Creating Opportunities for Economically Disadvantaged

Producers• Transparency and Accountability• Fair Trading Practices• Payment of a Fair Price• Ensuring no Child Labor and Forced Labor• Commitment to Non Discrimination, Gender Equity and

Freedom of Association• Ensuring Good Working Conditions• Providing Capacity Building• Promoting Fair Trade• Respect for the Environment

Key points in our daily work

• Worker hiring, signing contracts create trust• Capacity building, on the job Training create satisfaction• Focus on quality, soft management create involvement • Share the vision and the success create a proud team

• CSR or FT is not “green washing” for us but real investment of money and energy in persons

• It is not philanthropy or charity but It is a vital investment in persons for a stronger future and our business success

Results of good CSRSocial aspects

– More stability among the workers– Less staff rotation– Less training costs– Less production drops or stops– Better involvement of employees in Company

strategies– Employees are part of success and get rewarded

Results of good CSREnvironment

• Silk is “green”– No use of pesticides or herbicides– Use only safe Azo free dyes

• Go for Organic Certified Food

• Develop new ways for a safer agriculture – Be innovative (find better technologies)– Be creative (find new products)

• Good feeling not being a bad company– not exposing workers or consumers to toxic products– Take care of Nature

Results of good CSR/FT certificationBusiness side

• Access the world wide Fair Trade market network (70 Countries)

• Being clearly identified by potential customer

• 60-70% of MSL Export go to FT companies or companies interested in FT values

• A world wide market in expansion

Difficulties

• CSR as well as Fair Trade is new to Laos in many places

• No direct immediate financial return make it not so attractive

Thank you

Thank you