(Tiểu luận) corporate social responsibilities ofbusinesses at vietnam dairy joint stockcompany vinamilk

MINISTRY OF EDUCATION AND TRAININGHO CHI MINH CITY OPEN UNIVERSITY SCHOOL OF ADVANCED STUDY Subject title: Corporate Social ResponsibilityCORPORATE SOCIAL RESPONSIBILITIES OF BUSINESSES

MINISTRY OF EDUCATION AND TRAINING

HO CHI MINH CITY OPEN UNIVERSITY SCHOOL OF ADVANCED STUDY

Subject title: Corporate Social ResponsibilityCORPORATE SOCIAL RESPONSIBILITIES OF BUSINESSES AT VIETNAM DAIRY JOINT STOCK

Submission Date: 6/1/2022 TABLE OF CONTENT

Executive Summary 3

Introduction 3

Part 1: Overview… 4

1.1 Company profile 4

1.2 Vision and mission 4

1.3 Product and categories 4

Part 2: Company’s Stakeholder map 7

Part 3: CSR activities 9

3.1 Labour 9

3.2 Consumer 11

3.3 Environment 14

3.4 Community 17

Part 4: CSR roadmap/ CSR strategy and policy 19

Part 5: Finding and recommendations 20

Conclusion 20

References 20

Executive Summary

Corporate Social Responsibility (CSR) is a requirement for businesses If

businesses do not implement CSR, it is very difficult to access the world market Experience shows that the world's leading multinational companies, giants that are very successful in business, are also companies that perform extremely well

on social responsibility Besides, there are also many bitter lessons stemming from the poor implementation of CSR as was the case with Coca-Cola, Nike, and Mac Donald's in previous years

In the world, the concept of corporate social responsibility (CSR) is very familiar However, in Vietnam, CSR is still a relatively new issue for businesses, investors, consumers, and society in general

Especially, after Vietnam became the 150th member of the WTO in 2007, the implementation of CSR for Vietnamese enterprises has become even more important In addition, Vietnam is currently one of the countries that lack human, financial, and technical resources to implement CSR standards This is especially difficult for small and medium enterprises while considering the provisions of Decree No 56/2009/ND-CP dated June 30, 2009, of the Government, about 95%

of Vietnamese enterprises Nam is a small and medium-sized enterprises.But that cannot be the reason to deny the achievements of the contributing businesses Vinamilk is one of the leading enterprises in implementing CSR well

in Vietnam That is also the reason why I chose the topic "CORPORATE SOCIAL RESPONSIBILITIES OF BUSINESSES AT VIETNAM DAIRY JOINT STOCK COMPANY VINAMILK" to understand, analyze and evaluate in the most objective way

According to statistics from the United Nations Development Program, this is the 15th largest company in Vietnam in 2007 Vinamilk is currently the leading enterprise in the dairy processing industry, accounting for more than 54.5% market share of liquid milk, 40.6% market share of powdered milk, 33.9% market

more than 40 years of launching to consumers, Vinamilk has built 14 production factories, 2 logistics factories, 3 branches of sales offices, and one factory milk in Cambodia (Angkormilk) and a representative office in Thailand In 2018, Vinamilk was one of the top 200 companies with revenue of over 1 billion dollars in Asia Pacific (Best over a billion).

Part 1: Overview….

1.1 Company profile

Vietnam Dairy Products Joint Stock Company Vinamilk has an international transaction name: Vietnam Dairy Products Joint – Stock Company The company was established in 1976 based on taking over 3 milk factories left

by the old regime, including Thong Nhat Dairy Factory (formerly Foremost factory); Truong Tho Dairy Factory (formerly known as the factory

Cosuvina); and Dielac Powdered Milk Factory (Nestle)

The company's head office is located at No 10 Tan Trao Street, Tan Phu Ward, District 7, Ho Chi Minh City The organizational structure includes 17 affiliated units and 1 Office Total employees are 4,500 people Vinamilk mainly operates in the field of production and trading of milk and dairy products including liquid milk, powdered milk, condensed milk, yogurt, cream, and cheese Vinamilk's products are mainly consumed in the

Vietnamese market (accounting for 75% of the domestic dairy market) andalso exported to other markets foreign countries such as Australia,

Cambodia, Iraq, the Philippines, and the United States

With its efforts, Vinamilk has become the leading dairy producer in

Vietnam counts both in terms of sales and output Vinamilk was voted top

5 enterprises Vietnam's largest enterprises, and the top 200 largest

enterprises in Asia Vinamilk got it those achievements are also due to having the right vision and business philosophy

1.2 Vision and mission

Vision: “To become a world grade brand in food and beverage industry, where people put all their trust in nutrient and health products.”

Mission: “To deliver the valuable nutrition to community with our respect, love and responsibility.”

Core Values

Integrity: Integrity and transparency in actions and transactions

Respect: To have self-respect, to respect colleagues To respect the

Company and partners To cooperate with respect

Fairness: To be fair with employees, customers, suppliers and other parties.Ethics: To respect the established ethical standards and act accordingly.Compliance: To comply with legal regulations, the Company’s Code of Conduct, and the Company’s procedures and policies

* Business philosophy: Vinamilk desires to become one of the most favoritebrands in every region and territory Therefore, we keep in our mind and

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our heart that the quality and innovation are always our most important companions We act with a customer-centered approach and commit to responding to all their needs.

* Quality policy: Always satisfy and be responsible for consumers’ needs bydiversifying products and services, assuring quality, and food safety with competitive prices, respecting business ethics and complying with laws.1.3 Product and categories

The main business is producing and trading canned milk, powdered milk, nutritional powder, cake, fresh milk, soy milk, beverage and other dairy products

Part 2: Company’s Stakeholder map

Stakeholders have always played an important role in the success of the business Because they are thefirst to be by their side, spending time and energy for the existence of the business Therefore, Vinamilk always encourages and motivates, creates effective products, higher quality and guarantees that all parties are satisfied

CONSUMERS - Provide the best and safest products.

- Diversify products and create new product values toimprove and enhance human health

- Provide products at reasonable prices

SHAREHOLDERS - Ensure safe investment and sustainable return

STATE - Comply with State policies and regulations in

field of activity

EMPLOYEES - Bring satisfaction and satisfaction of employees

about a safe working environment and competitive income

SUPPLIERS - Cooperating with the basis of mutual benefits, clear

transparency and social responsibilityCOMMUNITY - Be responsible, share and join hands to develop the

community

Part 3: CSR activities

3.1 Labour

Issues under “Labour

practices"

How does this issue impact on your company?

(not at all=0; low = 1; moderate = 2; important = 3; critically important = 4)

What is the level of influence of your company over this issue? (none =1;

low = 2; high =3)

Tota l Remarks

profitability productivity image In

opinions from outside the business to fix what is not satisfied about the company

4 Health and safety at work 3 3 4 3.2 3 6.2 Organize more

on-site medical department for employees to provideproviding medicine and first aid services

on the spot

5 Human development and

training in the workplace

important for employees to have knowledgeabout protecting themselves and the workplace

“Labour practices" Not

at all

Aware of

it, but action not done yet

Policy Training for staff and commu- nicate

Action plan Proper imple- menting the action plan

ring the results of action

Monito-Annual review for further improve- ment

important = 3; critically important = 4)

Immediate proposed actions (specific action with indicators for monitoring the result of improvement)

and social protection

3 Creating conditions for development in work for

employees maintain a secure, safe, healthy and friendly working environment

3.Social dialogue 2 Join an insurance program that benefits

employees

4 Health and safety at

work

4 Provide employees with nutritious meals and

organize periodic health checks for employees with the best and complete examination services.focus on providing workers with safe working conditions

5 Human development 3 Create a variety of programs to help employees

3.2 Consumer

Issues under “Consumer" How does this issue impact on your company?

(not at all=0; low = 1; moderate = 2; important = 3; critically important =4)

What is the level of influence of your company over this issue? (none =1;

1 Fair marketing, factual and

unbiased information and fair

contractual practices

because there must be trust

to have consumer loyalty

2 Protecting consumers’

health and safety

processing industry, protecting consumers' health is very important and

is the foundation for development

4 Consumer service, support

and complaint and dispute

resolution

individual interests of consumers to create trust and retain customers

5 Consumer data protection

and privacy

6 Access to essential service 2 1 2 1.7 2 3.7

7 Education and awareness 1 1 2 1.2 2 3.2 It is difficult

for consumers

to listen and respond because there are many different classes, continuing to implement new methods

“Consumer" Not at

all

Aware

of it, but action not done yet

Policy Training for staff and communi cate

Action plan Proper implem enting the action plan

Monit oring the results

of action

Annual review for further improve -ment

“Consumer" development of your company now

and in future? (not at all = 0; low = 1;

moderate=2; important = 3; critically important = 4)

for monitoring the result of improvement)

Scores Remarks

1 Fair marketing,

factual and unbiased

information and fair

contractual practices

3 - Continue to promote transparent

advertising

- Add visual actions towards fair, unbiased

- Promote policies that benefit the companyand consumers

support and complaint

and dispute resolution

1 - Enhancing awareness and education

through local activities

- Implement consumer policies and their interests

3.3 Environment

Issues under How does this issue impact on your What is Tota Remarks

of your companyover this issue?

1 Prevention

of pollution 2 2 3 2.4 2 4.8 Do a good job of

preventing pollution because product safety and good environmentcome first2.Sustainable

resource use 3 3 2 2.6 1 3.6 Always looking for

solutions to prevent pollution, increase theefficiency of resource use, and apply circular economy are the advantages

of Vinamilk.3.Climate

is important because it will affect the quality

Issued under "The

Policy Training for staff and commu- nicate

Action plan Proper imple- menting the action plan

ring the results of action

Monito-Annual review for further improve- ment

1 Prevention of

pollution

remind employees to save, use energy withou

t wasting

environment" development of your company now and in

future? (not at all = 0; low = 1; moderate=2;

important = 3; critically important = 4)

indicators for monitoring the result of improvement)

Scores Remarks

1 Prevention of

pollution

packaging so that it is safe, beautiful and environmentally friendly

- For example, reduce the weight of sweetened condensed milk packaging: use thinner tin, reduce the amount of plastic per unit of yogurt

2.Sustainable

resource use

- Limit waste to the environment by recycling organic waste to grow plants and useful inorganic items.3.Climate change

mitigation and

adaptation

3 - Protect the health of dairy cows

according to the season

- Increase heating in winter, cooling

3 - Renovating the green and beautiful

industrial park campus

- Using modern energy-saving technology proper waste segregation

=1; low = 2;

high =3)

profitability producti

vity image In total

in a lot of revenue

2 Education

and culture

processing industry, cultural education or not

5 Wealth and

income creation

is what everyone wants, especially employees

prioritize user health for long-term operation

7 Social

investment

brings a beautiful and humane company image,

so it is very important

it, but Policy Training for staff Action plan Proper impleme Monitori

ng the Annual review

How important is this issue for the

development of your company now and in

future? (not at all = 0; low = 1; moderate=2;

important = 3; critically important = 4)

Immediate proposed actions (specific action with indicators for monitoring the result of improvement)

- Mass media to spread information

Part 4: CSR roadmap/ CSR strategy and policy

Part 5: Finding and recommendations

The objective of the study is to find out the basic problems in the current situation and solutions to the problem of CSR implementation at Vietnam Dairy Products Joint Stock Company Vinamilk Thereby, giving some recommendations on solutions for promoting and improving the quality of CSR in Vietnamese enterprises Such as:

- Strengthen research, issue more policies on CSR Specifically, developing and promoting further research on CSR; develop laws and regulations on CSR

- Develop and promote projects and programs on corporate social

responsibility

In addition to the above activities, in order to do well to support the development of CSR, there is one thing that the government of our country should do, which is contact and direct support activities for those who have relationships with them Intimate, useful with CSR:

- Consumers: The government promulgates policies to support and ensure the interests of consumers Support the operation of associations representing the interests of consumers

- Employees: Regularly adjust and amend the Labor Code to keep abreast with the situation and changes of the business environment as well as the development of the country At the same time, there are timely and proper interventions to ensure labor rights and have policies to promote and support the trade union's activities

- Environment: Regulates laws and policies related to the environment At the same time, enhancing the quality of environmental projects

Conclusion

Research on the actual situation of CSR implementation at Vinamilk has shown positive results regarding the implementation of CSR in this company CSR that Vinamilk basically implements both bring benefits to businesses and society Thereby, the business world is the most important element in the formulation and implementation of CSR development solutions in Vietnam Besides, the state and society will participate this partnership with extremely practical solutions

References

1 https://www.vinamilk.com.vn/

2 Nguyễn Đình Cung, Lưu Minh Đức (2008), "Trách nhiệm xã hội của doanh nghiệp-CSR: Một số vấn đề lý luận và yêu cầu đổi mới nhà nước với CSR ở Việt Nam", Viện nghiên cứu quản lý kinh tế trung ương, Hà Nội