Teamwork 2 Công Ty Cổ Phần Sữa Việt Nam (Vinamilk).Pdf

INTRODUCTION TO VINAMILK JOINT STOCK COMPANY.... A general introduction to Vinamilk Company Name: Vietnam Dairy Products Joint Stock Company Vinamilk International Trading Name: Vietnam

BO GIAO DUC VA DAO TAO NGAN HANG NHA NUOC VIET NAM

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TRƯỜNG ĐẠI HỌC NGÂN HÀNG

THÀNH PHÔ HỒ CHÍ MINH

Teamwork 2 CONG TY CO PHAN SUA VIET NAM (VINAMILK)

Giang vién: Pham Huong Dién

Lép hoc phan: MAG313_ 2411 10 TA28

Môn học: Quản trị chiến lược

Nhóm 8: Nguyễn Thị Anh Thư ( Nhóm trưởng )

Hồ Trần Thảo Vy

Nguyễn Thị Mỹ Trang

Đỗ Nguyễn Mai Liên

Lê Minh Duan

Table of Contents

I THE CONCEPT OF CORPORATE SOCIAL RESPONSIBILITY (CSR)

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Il INTRODUCTION TO VINAMILK JOINT STOCK COMPANY 4

1 A general introduction to VinamiÌk 2 0 1 2222221122211 22221112 tr xe 4

2 The History of Vinamilk's Formation and Growth 2 ccc cà: 5

3 Vinamilk's Vision, Mission, and Core Values -Q TT 2n se, 5

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Ul THE CURRENT STATUS OF IMPLEMENTING = SOCIAL RESPONSIBILITY OF VINAMILK - 2c 0 211211221121 111 111111111111 1111 1111k 7

1 Vinamilk implements CSR fowards the CÍOINHMHIẨW à cà che, 7

2 Vinamilk implements CSR towards the Environment 0.c0cccccccec cece 8

3 Vinamilk implements CSR on legal responsibility ccc cà cà tre rey 9

4, Vinamilk implements CN ƒOF COHSMHHƠT HH nHnHH ng Hkàu 10

3 Vinamilk hnplements CSR ƒor officers and eIHDÏOV€€S ăcằ cay 10

6 Vinamilk implements CSR towards partners, shareholders and investors 11

IV BENEFITS OF CSR ACTIVITIES FOR VINAMILK COMPANY ll

1 Financial Benefits of CSR Activitiles at Vinamk: s55 55+ +sx+sx+2 ll 1.1 Expand the mark€t c2 E22 1222112111 1251 1511111151551 1811111 ll 1.2 Expanding Business Opportunities 000.000 cc cccccceccccccecesceecnsteeeesseaes ll 1.3 Improving the Business Environm€riF - c 2c 2222k csxcsrrrses 12

2 The Intangible Benefits of Vinamilk's CSR Activifies 12 2.1, Enhance the company’s brand value .0 0c0ccccc ccc HH He 12

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2.3 Enhancing Reputation with Soctety: 0ccc cece ccseececeeeceseeeeeeeneees 13

V RECOMMENDATIONS AND SOLUTIONS TO IMPROVE CSR FOR M0 000.G699),/) 100115 e A 13

1 Solution to mmprove the CSR standard system co c2 13

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ia Investin comprehensive development of technical infrastructure: 13

2 Solutions for Human Resource Development within the Organization 14

ta §=Building a professional Structures .0 0 00.0ccc ccc ccc ccc cece eects testes 14 ia) = mproving the structure qHd 0Đ€FQffOHS: 14

3 Building a Solid Financial Foundation: 5c 2c: 222222212 csrsxs2 15 Esfablishing a Dedicated CSR Fund: 15

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ia Enhancing Budget Utilizadtion FfÏCIGHCV: cà 15

4, Deepening Vinamilk’s CSR Leadership Role - -.cc 2c 2222 * c2 csc+csxs 15 Prormoting CSR spừif qHd mindsef: 15

ia = Enhancing management and governance capabilities according to CSRstandards

CONCLUSION 0.0 eccccecceeseneceeceneeeeceeceeceeceeceeceeeeaecesceeeseetsesteetteeenteeenneessas 17

VI REFERENCES

I THE CONCEPT OF CORPORATE SOCIAL RESPONSIBILITY (CSR)

1 Corporate social responsibility

To address the issue of business responsibility, the global community has come together to use a common phrase: “Corporate Social Responsibility.”

There are many definitions of corporate social responsibility (CSR) in practice For instance, Keith Davies (1973) provided a broad definition: "CSR is the concern and response of businesses to issues that extend beyond meeting legal, technological, and economic requirements "

To generalize and clarify the essence of CSR, the World Business Council for Sustainable Development (WBCSD) has proposed the following definition: "CSR is a company's ongoing commitment to operate in an ethical and responsible manner, contributing to economic growth while improving the quality of life of its workforce and their families as well as that of the community and society at large."

2 Components of CSR

Although CSR has gained widespread acceptance, there are still diverse perspectives on its concept, content, and scope Among the related theories, the

“Pyramid” model proposed by A Carroll is considered comprehensive and widely used Carroll's CSR Pyramid is designed to guide companies in aligning their business practices so that all operations are economically profitable, ethical, legal, and socially supportive According to this theory, companies must fulfill their responsibilities at four levels: Economic, Legal, Ethical, and Philanthropic

Philanthropic

Responsibilities

Be a good corporate

citizen

Ethical Responsibilities

Be ethical \ Legal Responsibilities \

Obey the law

Economic Responsibilities

Be profitable \

¢ Economic Responsibility:

Economic Responsibility means that throughout history, businesses have been established to become an economic entity, to provide goods and services to social members The goal of profit 1s built as the most fundamental motive of business Before implementing any other goal, enterprises are the basic economic component of society

So, the basic purpose of a business is to produce goods and services that consumers need and want, and create an acceptable level of profitability through the business process Other businesses are based on economic responsibility, because without it, other kinds of responsibilities become controversial considerations

¢ Legal Obligations:

Legal Obligations means that society not only expects businesses to operate on a profit target, but at the same time, businesses expected by society will comply with the law Companies are expected to pursue its economic missions within the framework of the law Liability is described as the next floor in the CSR pyramid The scope of this responsibility is applied not only by businesses but also by individuals when they are a member of that business

« Ethical Responsibility:

Ethical Responsibility means that ethical responsibilities include activities that are expected or prohibited by members of society although these activities are not mentioned

in the law Ethical responsibilities include standards, or expectations that reflect the company's interest in what consumers, employees, shareholders, and society as a whole are fair, right, or show respect for moral rules Although described as the next tier in the CSR pyramid, moral responsibility can affect liability It will promote greater legal responsibility, and put higher expectations on entrepreneurs in implementing things above the law

¢ Philanthropic Responsibility:

Philanthropic goodwill means that it includes the activities of the business responding to the expectations of the society, showing that the business performs well “‘to

be a good corporate citizen” It includes a direct commitment of the business to act or develop programs to promote the well-being of the whole society For example, some activities belong to corporate philanthropic responsibilities, such as corporate contributions to finance and resources for art, education or community activities

IL INTRODUCTION TO VINAMILK JOINT STOCK COMPANY

1 A general introduction to Vinamilk

Company Name: Vietnam Dairy Products Joint Stock Company (Vinamilk) International Trading Name: Vietnam Dairy Products Joint Stock Company Business Field: Production of milk and dairy products

Head office: số 10 Tân Trào, phường Tân Phú, quận 7, Thành phố Hồ Chí Minh

Wesite: www.vinamilk.com.vn

2 The History of Vinamilk's Formation and Growth

Vinamilk, originally known as Vietnam Dairy Products Joint Stock Company, is a leading producer and distributor of milk and dairy products in Vietnam

The 1990s saw Vinamilk begin its transformation towards becoming a market leader In 1992, the company was rebranded as "Vinamilk" and focused solely on milk and dairy products

In 2003, Vinamilk transitioned into a joint stock company and listed on the stock exchange This period saw significant acquisitions and growth, including the purchase of Sai Gon Milk JSC in 2004 and the acquisition of controlling shares in Lam Son Milk JSC

in 2007

Throughout its history, Vinamilk has remamed focused on expanding its network, building new factories across Vietnam, and introducing new products to cater to evolving consumer preferences By 2009, the company had established over 135,000 distribution outlets and multiple dairy farms nationwide

3 Vinamilk's Vision, Mission, and Core Values

3.1 Vision

“Becoming Vietnam's leading symbol of trust in nutritional and health products serving human life”

3.2 Mission

“Vinamilk is committed to providing the community with top quality nutrition and quality through our respect, love and high responsibility to human life and society.”

3.3 Core values

“Becoming the leading symbol of trust in Vietnam in nutritional and health products serving human life”

Integrity: Honesty in behavior and in all transactions

Respect: Respect yourself, Respect colleagues, Respect the Company, Respect partners, Cooperate with respect

Fair: Fair to employees, customers, suppliers and other stakeholders

Ethics: Respect established standards and act ethically

Compliance: Comply with the Law, Code of Conduct and the Company's rules, policies and regulations

4, Long term orientation

Vinamilk's long-term nutrition orientation focuses on maintaining its leading position in the Vietnamese dairy industry and becoming one of Asia's leading companies Vinamilk aims to develop sustamably, expand intemational markets and improve competitiveness through strategies such as: Market penetration strategy, Market development strategy, Product development strategy, Diversification strategy

Expanding international markets: Vinamilk aims to become a global dairy brand, with a strategy to expand exports to many different countries and regions Currently, Vinamilk is present in more than 50 countries and territories, and the company continues

to promote building distribution networks and cooperation with international partners Vinamilk focuses on applying advanced technology in management, production and distribution to optimize costs, improve efficiency and product quality The company continues to invest in factories, dairy farms, and infrastructure to improve production capacity and ensure quality supply High Vinamilk has been developing high-tech dairy farms that meet international standards, to ensure the best product quality for consumers

5 Scale

Vietnam Dairy Products Joint Stock Company (Vinamilk) is one of the largest dairy companies in Vietnam and the leading dairy company in Southeast Asia and one of the enterprises with the largest revenue and profits in Vietnam The company's annual revenue often reaches billions of dollars For example, in 2023, Vinamilk's revenue will reach about 60.1 trillion VND (equivalent to about 2.6 billion USD) Besides, Vinamilk has a large production network with 13 factories nationwide, including factories Modern milk factories like Vietnam Dairy Factory (Mega) in Binh Duong - one of the largest and most modern dairy factories in Southeast Asia In addition, Vinamilk also has 14 dairy farms that meet international standards, helping the company be autonomous in raw material supply

Vinamilk holds a large market share in Vietnam's dairy industry, with a liquid milk market share of over 55% and other product lines such as condensed milk, yogurt, powdered milk and nutritional beverages are also leading The company serves more than 250,000 retail locations and has a strong distribution system spanning 63 provinces and cities in Vietnam In addition, Vinamilk has expanded its market to more than 50 countries and territories, with large markets such as the United States, Japan, Korea, the

Middle East and Southeast Asia The company has invested in companies and joint ventures abroad, such as Driftwood Dairy in the United States and Angkor Milk factory 1n Cambodia

In particular, Vinamilk also has a strong staff of more than 10,000 employees nationwide and internationally and is constantly training and developing human resources, to ensure high quality in all production and business activities jomt

Vinamilk is one of the companies with the largest capitalization on the Vietnamese stock market As of 2024, Vinamilk's market capitalization typically ranges from 8 to 10 billion USD, demonstrating the company's importance and stability in the Vietnamese economy

Vinamilk is not only a leading company in the dairy industry in Vietnam but is also making efforts to reach out globally with the goal of becoming one of Asia's leading nutrition companies

Legal Obligations means that society not only expects businesses to operate on a profit target, but at the same time, businesses expected by society will comply with the law Companies are expected to pursue its economic missions within the framework of the law Liability is described as the next floor in the CSR pyramid The scope of this responsibility is applied not only by businesses but also by individuals when they are a member of that business

Ill THE CURRENT STATUS OF IMPLEMENTING SOCIAL RESPONSIBILITY

OF VINAMILK

1 Vinamilk implements CSR towards the Community

¢ Grow Up Vietnam Milk Fund:

In 2008, Vinamilk collaborated with the Ministry of Labor, Invalids, and Social Affairs (Vietnam Children Protection Fund) to launch the “1 Million Glasses of Milk Fund” In 2010, the program was officially renamed “Grow Up Vietnam Milk Fund” with the message “So that every child can drink milk every day” The program's goal was also expanded to contribute to improving the physical and intellectual foundation for children

in difficult circumstances across the country By 2022, the Grow Up Vietnam Milk Fund has delivered more than 38.7 million glasses of milk (equivalent to 175.5 billion VND) to 479,000 disadvantaged children nationwide

¢ School Milk Program:

Pioneered by Vinamuilk since the 2006-2007 school year Besides its direct impact

on improving the nutritional status of school-aged children through milk consumption at school, the School Milk Program also promotes healthy eating habits for children, provides nutrition knowledge for teachers and parents

¢ 1 Million Trees Fund for Vietnam:

The fund was established with the aim of planting more trees for provinces and cities, improving the living environment for Vietnamese people By 2020, the “1 Million Trees Fund for Vietnam” and Vinamilk have officially completed the plan to plant 1,121,000 trees at 56 locations in 20 provinces and cities nationwide, with a total value of nearly 12.5 billion VND The program has brought many practical benefits, helping to green barren land and denuded hills; improving air pollution At the same time, it contributes to mitigating and responding to phenomena caused by climate change such as desertification, salt intrusion, soil erosion occurring in many localities

® Vinamilk - Nurturing Young Vietnamese Talent Scholarship Fund: Initiated in 2003 followmg Vinamilk’s proposal and with the approval and leadership of the Ministry of Education and Traming With its activities, Vinamilk is proud to have contributed to the education industry and has been awarded a certificate of merit by the Ministry of Education and Traming for “Contribution to the Development of Vietnamese Education” The scholarship fund has awarded over 34,000 scholarships worth more than 19 billion VND to elementary school students who have excelled in academics and training in 63 provinces and cities nationwide, encouraging them to strive

in their studies to become useful citizens of society

¢ During the Covid-19 pandemic:

Vinamilk has donated billions of VND and nutritional products to frontline staff and hospitals throughout the pandemic The company also provided medical equipment, masks, and other necessities to severely affected provinces Vinamilk also contributed 10 billion VND to purchase Covid-19 vaccines To date, Vinamilk has contributed over 100 billion VND, including cash, nutritional products, and other forms of support 1n the fight against the pandemic

2 Vinamilk implements CSR towards the Environment

® Wastewater Treatment:

All factories are developing infrastructure in accordance with ISO14001 standards Wastewater treatment systems are certified by provincial Departments of Natural Resources and Environment under the Vietnamese Standard ISO 5945:2005 (QCVN 24:2009/BTNMT - National standard for testing industrial wastewater) Treated water is used for irrigation, factory sanitation, and smoke treatment waste disposal

e Flue Gas Treatment:

Each factory is equipped with a flue gas treatment system that complies with TCVN 5939:2005 (QCVN 19:2009/BTNMT - National technical regulation on industrial emissions of inorganic substances and dust)

¢ Greenhouse Gas Reduction:

Advanced technologies such as solar lamps and biogas are employed at cattle farms

¢ Eco-friendly Packaging:

Vinamilk follows international trends in packaging, using lightweight materials that are easily recyclable and biodegradable As a result, Vinamilk has started using lighter tin cans to reduce the weight of sweetened condensed milk packaging and decrease plastic packaging

3 Vinamilk implements CSR on legal responsibility

Vinamilk's ethical responsibility is manifested through its mission, vision, and core values, as well as through the policies and principles it establishes

¢ Business Principles:

Vinamilk conducts its business operations im accordance with the following principles: Aiming for the harmonious balance of interests between business efficiency, maximizing shareholder value, and sustainable development based on ethical business values, ensuring the interests of stakeholders and delivering value to society Never sacrificing sustainable social values for economic gain

¢ Vinamilk's Operating Policy:

Vinamilk's operating policy is based on transparency, adherence to law, and the regulations Vinamilk participates in Transparency in operations, in relationships with stakeholders, and respecting fair competition is the foundation for the sustainable existence and development of any organization

* Quality Policy:

Vinamilk is committed to consistently satisfying and taking responsibility towards its customers by constantly improving and diversifying its products and services, ensuring quality and food safety at competitive prices, respecting business ethics and complying with regulations

¢ Competition Regulation:

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