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Corporate social responsibility: Benefits for youth in hydropower development in Laos

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Abstract

The role of the state as regulator combined with policies on Corporate Social Responsibility (CSR) that go beyond legal requirements to establishing programmes that promote development and good international business practice is an emerging new paradigm. In this paper, the example of a state-owned company, Statkraft A.S. of Norway, and its recent hydropower investment in central Laos illustrates how policy, implementation and follow-up can lead to benefits for local communities in the impacted area of the Theun-Hinboun Expansion Project (THXP). Programmes include both support for and improvement of existing government education programmes, employment opportunities and specific programmes for youth. They have been designed to mitigate possible negative effects of the influx of workers and rapid socio-economic change in the affected area. Young people continue to have a central role in the implementation of these programmes as peer educators under the supervision of project staff and non-governmental organisations (NGOs).

Résumé

Responsabilité sociale des entreprises : bénéfices pour les jeunes dans le développement de l’énergie hydraulique au Laos – Le rôle de l’État régulateur associé aux politiques de responsabilité sociale des entreprises, qui vont au-delà des exigences légales en matière de programmes de développement et de bonne pratique commerciale internationale, est un nouveau modèle émergent. Dans cet article, l’exemple d’une société publique norvégienne, Statkraft A.S., et son investissement récent dans l’énergie hydraulique au centre du Laos illustre que les politiques, la mise en œuvre et le suivi peuvent apporter des bénéfices aux communautés locales dans la région concernée par le projet d’expansion Theun-Hinboun. Les interventions portent à la fois sur le soutien et l’amélioration des programmes existants d’enseignement public, des opportunités d’emploi et des programmes spécifiques pour les jeunes. Ils sont conçus en vue d’atténuer les effets éventuellement négatifs de l’afflux de travailleurs et des changements socioéconomiques rapides dans la région concernée. Les jeunes continuent à assumer un rôle central dans la réalisation de ces programmes en tant que pairs éducateurs, sous la supervision du personnel du projet et d’organisations non gouvernementales.

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Notes

  1. For reasons of simplicity, this paper uses “Statkraft” instead of the company’s official name Statkraft A.S.

  2. More information is available at www.statkraft.no.

  3. The International Finance Corporation (IFC) advises its clients to operate in accordance with a set of performance standards concerning eight aspects of environmental and social sustainability: (1) assessment and management of environmental and social risks and impacts; (2) labour and working conditions; (3) resource efficiency and pollution prevention; (4) community health, safety and security; (5) land acquisition and involuntary resettlement; (6) biodiversity conservation and sustainable management of living natural resources; (7) indigenous peoples; and (8) cultural heritage.

  4. The Equator Principles are a credit risk management framework for international banks and credit agencies for determining, assessing and managing environmental and social risk in project finance transactions. More information is available at http://www.equator-principles.com/index.php/about-ep/about-ep.

  5. For a technical overview, see www.thpclaos.com.

  6. Camp followers is the term used for people who move into a project area to take advantage of the increase in demand for food, services and labour. This is considered a project impact since these people, often more than the number of workers, compete with local populations for resources, causing tension and conflict, and leading to health, sanitation and safety concerns.

  7. “Service women” is the local term for women working in entertainment venues, especially prostitutes.

  8. “A transect walk is a systematic walk along a defined path (transect) across the community/project area together with the local people to explore the water and sanitation conditions by observing, asking, listening, looking and producing a transect diagram. […] The information collected during the walk is used to draw a diagram or map based on which discussions are held amongst the participants” (Keller n. d.).

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Correspondence to Stephen Sparkes.

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Sparkes, S. Corporate social responsibility: Benefits for youth in hydropower development in Laos. Int Rev Educ 60, 261–277 (2014). https://doi.org/10.1007/s11159-014-9401-9

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