Review the Corporate Social Responsibility

Review the Corporate Social Responsibility (CSR) policies of the company. Would you classify their policies as ethical? Provide examples to support your answer.

     Corporate Social Responsibility (CSR) already become a major topic in our society. Because of an interest of society in responsible behaviour of companies is increasing, many companies are care about the values like integrity and develop ethical codes to cultivate responsible behaviour of their workers. They feel that they should meet 3P line expressing the expectations of stakeholders regard to the company’s contribution to people, planet and profit to get a licence to operate. Firms who do not meet these expectations could see their company reputation failing with a negative impact on profitability and market shares. People expect corporations to take a larger social role, companies will develop a social identity that is as essential as brand identity. This creates win-win situations and changes the nature of business.

     This reputation mechanism will effective if the social and environmental value creation of companies is transparent. Although many companies are fostering their transparency by social reporting, an integrated and uniform framework. However, large companies often acknowledge the importance of standardisation, but in practise there are a lot of companies apply differences of these standards. If companies are not transparent, customers, NGO’s and the society at large cannot judge their contribution to CSR.

The approach to Corporate Social Responsibility (CSR) of Dutch Lady Milk Industries Berhad is that they aim to demonstrate their commitment by actively undertaking strategic initiatives based on the following three priority areas:-

• Balanced nutrition
• Dairy self-sufficiency
• Social and environmental responsibility

BALANCED NUTRITION

Balanced nutrition

Their parent company, Royal FrieslandCampina N.V. places this as one of the three cornerstones of its own corporate social responsibility agendas to make sure sufficient nutritious food to help fighting malnutrition and a shortage of nutrients. In Malaysia, Dutch Lady aims to continue their efforts in combating obesity and nutrient deficiency by ensuring that their products are responsibly manufactured, healthy and available in various choices and a part of sizes.

• SEANUTS
• SEANUTS

• Through a unique cooperation between FrieslandCampina and four large international organisation, Dutch Lady Malaysia initiated the South East Asian Nutrition Surveys (SEANUTS) study in 2009, involving Malaysia, Thailand, Indonesia and Vietnam. It is most extensive nutrition and health study done in South-East Asia, among 16,744 children up to 12 years old were surveyed over a four-year period.

• WORLD MILK DAY

• In 2008, Dutch Lady Malaysia started a comprehensive dairy campaign which achieved in the first ever Dutch Lady World Milk Day on 1 June 2008 until present day. The campaign was developed in response to consumer insights revealing that the important of milk for Malaysians, it is still not seen as a vital, life-long, daily nutrition. Every year in June since then, the Dutch Lady World Milk Day is a highly expected affair celebrated nationwide. The campaigns consistently serve as a special contribution to Malaysians to encourage milk consumption, and educate them on the wonders and goodness of milk for one’s health.

• NATIONAL SCHOOL MILK PROGRAMME

• In support of the government’s aim to improve the nutritional status of Malaysian children, Dutch Lady Malaysia joined the school milk programme in 2011.Following the relaunch of the school milk programme to Program Susu 1Malaysia (PS1M), they continued their participation in the programme to help propagation the kindness and advantages of milk to school children, which ultimately reinforces their strength as an expert in dairy nutrition.

Dairy Self-Sufficiency

• DAIRY DEVELOPMENT PROGRAMME

• Dutch Lady Malaysia and the Department of Veterinary Service (DVS) Malaysia together with the Netherlands Embassy have been working together since 2008 to help local dairy farmers make their business more sustainable. Through their flagship Dairy Development Programme (DDP), they have helped local farmers increase their production of milk in both quality and volume as well as helped to ensure sustainability of milk supply to us. They are the largest purchaser of local fresh milk in Malaysia. They organise yearly visits for local farmers and the DVS officers to neighbouring countries such as Indonesia and Vietnam to learn about the country’s best dairy farming practices.

Social and Environment Responsibility

• SPREADING THE GOODNESS OF DAIRY

• Along with their purpose of helping Malaysians move forward with dairy nutrition, Dutch Lady Malaysia spreads the Goodness of Dairy through various outreach programmes such as Grass to Glass camps for employees’ children, goodness of milk sessions at orphanages and homes for underprivileged children. In 2014, Dutch Lady Malaysia adopted two homes - Shelter Home Petaling Jaya and Rumah Al Rahmaniah. They also play an active role in supporting deserving organisations through sponsorship and donation of their dairy products, especially the welfare, health and nutrition of families and children are concerned.

• ENERGY, WATER AND WASTE MANAGEMENT

• Various water recycling improvement projects were undertaken 
  at production plants. They use natural gas in their manufacturing operations where the consumption and trend of usage is continuously monitored. They believe all these efforts contribute to a cleaner and greener environment.

• SAFTY NO 1 PRIORITY

• They are committed in ensuring a safe environment for their employees, contractors and visitors who work on-site through their demonstration of safe work approach. Collaborative efforts are constantly made to create awareness on the responsibility of keeping everyone safe when working within the vicinity of their workplace. In developing a strong safety culture within their company, several programmes, and safety initiatives were carried out, including leadership training session targeting key personnel. As a result of these initiatives, Dutch Lady Malaysia obtained an excellent result in the Focus Safety Health & Environment (SHE) audit which is recognised as one of the best in the RFC Consumer Products Asia region.

• SUSTAINABLE SOURCING

• Milk is the basis of their products, but it is not the only raw material used. They also use raw materials like palm oil and cocoa for end products and paper and cardboard for packaging. Their products using 100 percentage of palm oil. The effort has been put in place for cocoa, another major ingredient used. They use only cocoa that meets the UTZ2 Certified criteria. Aside from sourcing sustainable (agricultural) raw materials, they have also demonstrated their commitment to responsible forestry by using the Forest Stewardship Council (FSC)-certified materials as the primary packaging used for our Dutch Lady UHT milk.