Responsible business conduct needed in preparation for LDC transition: Commerce Minister

Commerce Minister Khandaker Abdul Muktadir has said that Bangladesh is facing a new reality in the global trading system on the eve of its transition from a least developed country (LDC). 

He said that in this situation, responsible business conduct is no longer an optional matter; rather, it has become one of the most important elements to increase competitiveness in international trade, attract investment and ensure access to global markets.

He said these things while delivering his speech as the chief guest at the national dialogue titled ‘Responsible Business Conduct for Resilient Supply Chains and Trade Competitiveness’ held at a local hotel in Dhaka on Tuesday.

The Commerce Minister said that Bangladesh is entering a new phase in the rapidly changing reality of the global trade and investment system. The country has achieved significant economic progress through strong export growth, industrialisation, entrepreneurship development and resilience to adversity. 

The ready-made garment sector, in particular, is playing an important role in employment generation, poverty alleviation, women’s empowerment and overall economic growth.

He said that in the future, Bangladesh’s competitiveness will not only depend on low production costs but will also depend on sustainable development, transparency, labour standards, environmental responsibility and responsible business practices.

Khandaker Abdul Muktadir further said that currently, international buyers, investors, regulatory agencies and consumers are placing more importance on environmental, social and good governance and proper due diligence processes at every level of the supply chain. 

New regulations and expectations related to sustainable development are increasing in various international markets, which are directly affecting the global supply chain.

He said that now business organisations are expected to ensure safety in the workplace, efficient use of resources, establish good governance and publish reports on climate and sustainable development.

According to the commerce minister, if responsible business practices are strengthened in industrial organisations, the confidence of international buyers and investors will increase. At the same time, Bangladesh will be established as a responsible and competitive source country, he said, adding that this will increase access to high-value and emerging markets, attract sustainable and quality investment, and strengthen the resilience of supply chains.

Stating that the government is committed to ensuring sustainable, inclusive and responsible economic growth, he said that the ministry of commerce is giving importance to policy coordination and strengthening institutional frameworks related to responsible business conduct. 

Bangladesh has already made significant progress in expanding green industrial practices, sustainable development reporting initiatives, and environmental and social stewardship activities.

He said that an initiative has been taken to develop an institutional framework focused on responsible business conduct under the ministry of commerce. Such a platform will strengthen coordination among various ministries, regulatory agencies, the private sector, and development partners and will help in policy guidance, awareness-raising, and capacity building, he added.

The commerce minister said that the transformation to responsible and sustainable business practices is not possible for any single institution as it requires a combined effort of the government, the private sector, industry associations, development partners, and civil society.

He said, “We need to create an enabling environment where all types of businesses, big and small, can gradually adopt responsible practices and at the same time maintain a competitive position in the global market.”

The commerce minister thanked the United Nations Development Programme (UNDP) and its partners for organising the event and their continuous support for sustainable and inclusive economic development in Bangladesh.

The event was also addressed by Secretary (Routine Responsibilities) of the Ministry of Commerce Md. Abdur Rahim Khan, Deputy Country Representative of the UNDP Sonali Dayaratne and Country Economic Adviser Wyss Perry. 

The keynote address was delivered by Dr. Masrur Riaz, Chairman of Policy Exchange Bangladesh.