Csr of Dutch Lady Milk Industries Berhad

Topics: Milk, Occupational safety and health, Dairy product Pages: 15 (4723 words) Published: July 11, 2013
Nature/ Background of Dutch Lady Milk Industries Berhad
Dutch Lady Milk Industries Berhad ("Dutch Lady Malaysia") is a branded manufacturer of dairy products in Malaysia. It was incorporated in 1963 as a manufacturer of sweetened condensed milk called Pacific Milk Industries (Malaya) Sdn Bhd. Dutch Lady Berhad then converted into a public company and became the first milk company in Malaysia listed on the Bursa Malaysia in 1968. Dutch Lady Berhad is a subsidiary company of the Royal FrieslandCampina in Netherlands, one of the world’s largest dairy companies. The second largest shareholder of the company is Permodalan Nasional Berhad. Dutch Lady Berhad obtains benefits from its holding company by obtaining global procurement services and innovation activities as a form of support. Dutch Lady Berhad is well known for its dairy product and beverage brands such as Dutch Lady, Friso, Frisolac, Completa, Omela and Joy. The product line of the company include product for infants, growing-up milk, condensed milk, pasteurised milk, cultured milk, yogurt, powder milk, fruit juice drinks and etc. Dutch Lady Berhad was the first company in the world to introduce the growing up milk formula. These products include Dutch Lady 123, Dutch Lady 456 and Dutch Lady 6+ (Colaco, n.d.). Main competitors of Dutch Lady Berhad are Nestle (M) Berhad and Fonterra Brands (M) Sendirian Berhad as they also produce similar dairy products. Nestle (M) Berhad became a threat when it tried to extend its production capacity by investing more money, and thus has a possibility of affecting Dutch Lady Berhad’s revenue. Apart from this, Fonterra Brands (M) Sendirian Berhad focuses on the growth of its high-performing brands such as Anmum, Fernleaf and Anlene in order to raise innovation and marketing investments of such brands (Elaine, 2008). On the bright side, Dutch Lady Berhad has a strong position and high 1

reputation to conquer its competitors. It is recognised as one of the top 30 of the most valuable brands in Malaysia in addition to being voted as the preferred brand of milk in Malaysia and so, has been receiving the Reader’s Digest SuperBrands Gold Award for 11 consecutive years since year 1999 (Colaco, n.d.). Dutch Lady Berhad also pays massive attention at the quality control of its company’s products and services. It obtained certification under ISO 9001 (Quality management systems) since 1995, applied HACCP (Hazard Analysis Critical Control Point) for its plants and equipment, ISO 14001 (Environment Management System) and OHSAS 18001 (Occupational Health and Safety Assessment Series). On top of that, all of its products are halal-certified (Colaco, n.d.). Dutch Lady Berhad has made a continuous effort to provide better services and products to its customers.

The CSR Activities Done by the Company
MARKETPLACE 1. Corporate Governance The Board of Directors in Dutch Lady Milk Industries Berhad practices good corporate governance as complied with the Malaysian Code on Corporate Governance. (a) The corporate governance statement found in the annual report clearly states and explains the board of directors which include the composition, duties and responsibilities, board meetings, re-election of directors, directors’ training and remuneration, board committees which include audit, nomination and remuneration committee, accountability and audit


which include financial reporting, Statement of Directors’ Responsibility, internal and external audit, relations with shareholders and investors. (b) The Board of Dutch Lady comprises of seven directors. There are two executive directors, two non-independent non-executive directors and three independent executive directors. (c) (i) Directors’ fees which are paid to Non-Executive Directors are approved by shareholders at the Annual General Meeting. The total benefits in kind, salaries and other emoluments of Executive Directors of the Company are RM719,000 and RM1,742,000 respectively. On the other...
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