Present Social Responsibility conditions in Panama

Panama is a Latin American hub when it comes to Social Responsibility that allows a lot of business growth. Panama joined the UN Global Compact back in 2021. This includes that they report the Global Compact annually about the corporate governance and the environmental and social factors of the operation. These initiatives are favourable for companies with knowledge within the sustainable field as the country is in high sustainable growth.

National Sustainable Initiatives in Panama

Panama adopted ISO 26000, which delivers an essential and voluntary international guide to social responsibility. It facilitates the transition towards a sustainable society. The ISO does not only encourage civil society and government entities. However, it also enables companies to restructure their legal compliance and instruments with several initiatives to understand the effects of social responsibility and its importance. It is essential to consider that the ISO is not a certification scheme, however, a guideline for improvements.?

In 2020, a national initiative was executed between the private and public sectors - primarily focused on Human Rights. It seeks to improve the efficiency and competition of the market in Panama, meanwhile strengthening compliance with human rights as a part of the Sustainable Development Goals (SDGs). This agenda includes a high degree of Human rights as a transversal part of the agenda that intends to be developed and evaluated until 2030. It is expected that the companies in Panama respect the due diligence systems within their operations and all their supply chains. Hence, the companies in Panama start to take full responsibility for all parts of their operations. The main entities within the plan are The institutions in the public sector, The chambers of commerce, Third sector organisations, Unions, and Supranational institutions.

The act intends to give an open space for all stakeholders to improve compliance and legal obligations to fulfil the goals when it comes to social responsibility in Panama. Moreover, one important part of the act is to strongly implement a circular economy, where labour inclusion is included. Likewise, the use of raw materials and waste management is strongly considered when taking a look at the environmental aspect of business operations in Panama. Public awareness of water consumption and agriculture is crucial in this national initiative and will affect how businesses operate.

How will sustainable responsibility affect businesses in Panama?

As many businesses in Panama might have to restructure their operations and supply chain on a larger or smaller scale, the outcome might inevitably be more beneficial than we have considered. It is important to make two distinctions:

Businesses that need to transform their operations: Whether your business in Panama agrees with the initiatives or not, it is crucial to consider these changes in their operations to obtain long-term growth. When it comes to human rights, several changes and perspectives of a healthy labour environment might cause a new set of laws with which your business has to comply with. Also, the procedure to find new talent for your business might change as well. It might be a good idea to partner up with a company that has expertise within PEO, recruitment, law, accounting and market research in Panama to be sure that the transformation runs as smoothly as possible.

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There are many aspects to consider as the vision and general mission of your company might have to be modified to a certain extent. It is highly promoted that businesses take a look at their supply chain and audit whether or not they comply with the current regulation in Panama as it is now seen as a part of the responsibility of your business.

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The market opportunity for international businesses with knowledge within this area: These initiatives can have great advantages for international companies that want to enter the Panamanian market and those who have expertise within this field. When knowing, it allows a substantial advantage in the Panamanian market as the transition is still ongoing and relatively new. It allows your business to quickly adapt to the new regulations and sustainable initiatives as it is a known field. What might still be challenging, like any other market entry in Latin America, is having substantial knowledge of how to enter the market. For that reason, it is considered crucial to have someone that has local expertise within the market. A field that Biz Latin Hub is an expert in.

Industries to take advantage of in Panama

Agriculture is a huge industry in Panama that has been around for centuries. All of the agriculture produced in Panama is suitable for export. With over 50% use of the republics' land for agriculture, it certainly illustrates the huge potential of transforming the industry towards something more sustainable. The transformation has already started, which is why the entries of your company have to happen soon. Even though the process has already started, there is still a high demand for expert knowledge to comply with the new expectations on how to do agriculture.?

Eco-tourism is not just tourism but tourism that appreciates the beautiful country. Panama has a rich biodiversity and constant tropical weather that allows breathtaking nature and wildlife that all are worth seeing. For the ecotourism industry to continue growing, it must be maintained as a part of environmental sustainability. Natural resource-based tourism is a worldwide phenomenon that allows you to take advantage of the tendencies of sustainable tourism. Traditional tourism is still highly popular, however, we see a trend of travelling more sustainable. It can come into action through your transportation methods, what you visit, what you support and your general consumption habits. Companies with knowledge within the tourism industry might draw benefits from these trends and the tropical landscape of Panama that might attract a new segment to new destinations. However, your business must contact a local company that can guide you in the current regulations in Panama.

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