HOLDER

-Reason and Introduction: Good afternoon everybody! I’m Luan , CEO of

Vinamilk company. Today we are going to hold a Preliminary meeting on Green
Vietnam project to promote cooperate social responsibility. And attending our
meeting today are Nhi from R&D department , Nguyet- CFO of our company, Vy
from accounting department, Chuong from marketing department and Trieu from
labour union department.

Raise the problem: Although CSR has been introduced to Vietnamese enterprises
since 2005, it mainly focuses on large enterprises and enterprises producing
exports and often only pays attention to the labor sector. Recently, many
businesses have paid more attention to environmental protection but they are still
limited. So, the Green Vietnam project will focus on environmental protection.

Now, I want to know your opinion, Nhi?

………………………………………………………….

Okay, thanks Nhi. Hmm, Do you share the same opinion with Nhi, Nguyet?

………………………………………………………….

How about you, Trieu?

………………………………………………………….

Conclusion and putting an end to the meeting: Ok, thank you. According to
your presentations, we can see strength of this project is……and weakness
is………The project is still in the process of research and development, so we need
a lot of ideas from you to improve it, thank you for coming here today. Hope our
plans will better with every passing day and wish you have a nice week. Thank
you!
 R&D DEPARTMENT

Nhi:

INITIATION PROJECT: GREEN VIETNAM

I. Slogan:

"Vinamilk is sustainable, environmentally friendly and responsible to society".

II. Reasons for doing the project:

After many environmental problems (Vedan Vietnam Company, Formosa, ...) or

food hygiene and safety (soy sauce with 3-MCPD, milk contaminated with
melamine). The society is looking forward to a change in the business operation of
the business. People are expecting more "real", "cleaner" and "more sustainable"
businesses.

III. Target:

- Reducing and treating waste generated during the operation of the company by
advocating the construction of factories and farms towards modern, standard with
advanced waste treatment system to ensure standards ISO 14000. By 2011, the
amount of treated and discharged water is reduced by 17.1% per ton of product
compared to 2009.

- Improving the operation system or equipment in the direction of saving energy

friendly to the environment. By using LED technology (which saves 5-25 times of
electricity consumption), replacing the normal high-voltage lighting lamps in the
company at Saigon Dairy Factory.

- Improve the packaging quality of products to be safe, beautiful and

environmentally friendly. Starting with reducing the weight of condensed milk
packaging: using thinner tin to reduce the weight of packaging of condensed milk
products, reducing the amount of plastic packaging consumed per unit of milk box.

(Project funding accounts for about 2% - 3% of the company's capital).

 CFO

Nguyệt: Good afternoon everyone, My name’s Nguyet. I am CEO of Finance

Department. I have some opinion about the project.

- Firstly, your project is completely unreasonable, it costs a lot of corporate

capital budget.
- Secondly, instead of doing a Big project like that, why don't you try to
R&D again, find a smaller project but also has benefits and cut the cost.
- Thirdly, our company is leading in product quality, revenue, customer
trust, market, so, do we need to implement a project on social
responsibility like this or not, is it really necessary?

(I would like to invite Vy from accouting department to show us the income

statement to clarify this problem)

ACCOUNTING DEPARTMENT

Vy: Hello everyone, I’m Vy from accouting department. Let’s take a look at
Vinamilk’s profit or loss situation from 2017/31/12 to 2018/31/12. As you can see,
the cost of goods sold increase 7.85%, that lead to total revenue increse 9.2%. This
clearly show Vinamilk expanded its business. Because company get larger, Total
Operating Expense is higher than 2017 12.74%. However, Operating Income just
goes up 402 million VND in 2018, about 0.86%. In the other hand,the figures of
Interest Income Net (Non-operating) increased over doubled from 2017 to 2018.
So, Net income before tax rises 7.87% and after tax is about 6%.

INCOME STATEMENT 2018 2017

1. Gross sales 51,134,900 52,629,230

2. Less deductions 93,824 67,28

3. Net income 51,041,076 52,561,950

4. Cost of goods sold 26,806,931 27,950,544

5. Gross margin 24,234,145 24,611,406

6. Income from financial activities 816,317 759,917

7. Expenses from finacial activities 87,038 118,007
- Expenses interest 29,439 51,367

8. gains (losses) on investing in joint-venture 67,134 22,434

9. Selling expenses 11,536,534 12,265,937

10. Administration expenses 1,267,606 1,133,300

11. Profit from operation 12,226,418 11,876,513

12. Others income 213,081 450,247

13. Others expenses 210,553 275,065
14. Others profits 2,527 175,183

gains (losses) on investing in joint-venture

15. Profit before tax 12,228,945 12,051,696

16. Curent income tax expenses 1,967,067 1,874,905

17. Income tax expense deferred -16,296 -28,839

18. Net profit after tax 10,278,175 10,205,630

Minority Interest -17,491 -21,651

Net profit after tax 10,295,665 10,227,281

19. Profit for an unit of stock (*) (VNÐ) 6,355 5,2

 R&D DEPARTMENT

Nhi: I don’t agree with you. You think that this project will increase our expense
but in short term, in the long term it will help us more than you though.

- Reducing production costs: Installing new technologies will help Vinamilk

reduce considerable costs, estimated data: Power consumption will decrease by
5.5%, FO oil will decrease by 6.91%, source water decreased 9.69; Treated waste
water decreased by 3.41%, ... Especially, the cost of products with poor quality is
reduced.

The chart above is taken from the IBM Institute survey on enterprise value. We
can see that the data in the fourth column from left to indicate that companies
focused on CSR activities bring cost-cutting efficiency (Cost savings), with 38% of
companies surveyed operating very good in this area, and 47% are starting to
implement CSR strategies to cut costs. This contributes to the correctness of the
cost reduction in implementing CSR activities.

- Increasing the ratio of international contracts: In 2014, Vietnam will eliminate all
trade tariff barriers under the WTO agreement. Can our business be competitive?
Can international contracts be won or not? CSR is part of the answer! Good
implementation of CSR will help Vietnamese businesses gain an advantage or at
least not be knocked out because they are not qualified to sign international
contracts.
- Increasing the proportion of international investors: According to the PRI -
Principles of Responsible Investment annual report for 2011, it is shown that over
50% of outside investors are closely linked to KLD's CSR . 71% of investment
companies require companies to publicize CSR activities in their financial
statements. good implementation of CSR responsibilities will help Vietnamese
businesses more easily attract FDI from international investors.

LABOR UNION DEPARTMENT

Triều: I would like to give some ideas:

- Firstly, we have signed a contract with the employee about determine the
salary and interests of employee. So, if we increase the expense for this
project, can we ensure that not cutting the staff salaries? It will cause
conflicts in the company. Particularly, they will cause strikes.
- Secondly, That will affect the reputation of the company, reduces customer
attraction and attention when we are not concentrate on only quality of
products and even raise the price to customer.
- Next, That may violate labor contracts in society. Because it not equal for
our staff. Making social respondsibility is spending our staff’s money,
reduce returns to stockholders, reduce wages of some employees.

 Therefore, we cannot because of maximizing profits but cutting down on

staff salaries. We need to make agreements and benefits more appropriate at
this time.

• We will try to promote communication, introduction, advice,

negotiation and dialogue with employees.

• Guide, raise awareness about CSR

• training, improving performance for CSR

 Finally, we will offer appropriate solutions and training programs for

employees.

MARKETING DEPARTMENT
Chương:
Good afternoon, I'm Chương - Vinamilk's marketing manager. I would like to
present my opinion. I agree with Ms.Nhi to develop this project because of some
reasons.

- Increasing sales: Looking at the chart, we can see on the right side of the CSR
value line is the ability to acquire new markets, new partners, product and service
innovations. As a result, sales increased, leading to increased profits.

More than that it also has non-financial benefits:

- Improve the brand value of the company: When a company performs CSR
activities, it is highly appreciated by the community. This is reflected in the
ranking of Forbes magazine, the ranking of the world's most responsible
companies. Even giant corporations like General Electric, Starbuck or Toyota cut
their finances for projects instead of cutting CSR activities when cutting costs.

- Attract talent: Companies that pay fair salaries, give employees the opportunity to
be trained, health insurance and a clean working environment capable of attracting
and retaining better employees . The survey of Mont- gomery and Ramus (2003)
shows that MBAs who graduate from European and American schools are very
interested in aspects of CSR such as labor relations, sustainable working
environment, or ethics. , corporate culture. More than 90% of the students
interviewed said they were willing to give up financial factors to work for
companies that have a reputation for CSR.

- Improving credibility with society: Good implementation of CSR activities helps

businesses create trust in social components: Company employees, investors,
partners, customers, communities and goverment.

- Reduce the concern of social organizations.

- Contribute to environmental protection.

MINI GAME: KAHOOT.IT

GAME

1. Match up the verbs and prepositions below to make a correct answer.

1. Responsibility a. Of

2. The function b. To

3. Accordance c. With

A. 1a, 2b, 3c.

B. 1b, 2c, 3b.

C. 1c, 2a, 3b.

D. 1b, 2a, 3c.

2. Find the correct pronunciation.

UNDEMOCRATIC

A. ˌənˌdeməˈkratik
B. ˌunˌdeməˈkratik
C. ˌ’ənˌdeməkratik
D. ˌ’unˌdeməkratik
3. Which word is not used with "Make"?

A. Profits
B. Money
C. Expenditures
D. Discrimination

4. Find word that mean: “treating some people in a worse way than you treat other
people”

A. Discrimination
B. Communication
C. Consultation
D. Promotion

5. What does this picture mean?

A. Worldwide
B. Earth
C. Nation
D. Social
6. Arrange the following letters into one word: R-S-I-P-O-T-F

A. Profits
B. Fitrops
C. Tropfis
D. Sitforp

7. Fill in each blank with a suitable word:

Until 1986, most companies would not even allow women to take the
examinations, but such blatant ........… is now disappearing.

a. Discrimination

b. Custom

c. Role

d. Function

8. Which word of the following is mentioned?

What is the continuing commitment by business to behave ethically and

contribute to economic development while improving the quality of life of the
workforce and their families as well as of the local community and society at
large?

A. Responsibility

B. Benefit of economic

C. Discrimination
D. Coporate social responsibility

10. Find word or phrase that is CLOSEST in meaning to the underlined part.

We do so on a strictly voluntary basis and do not resort to force in order to

coerce others.

A. use violence
B. Cooperate
C. Support
D. Intervene

11. Complete a short note.

Increase ...(1) for businesses.

Attract a good ...(2)

Improve the quality, brand value and reputation of ...(3).

A. Money-Labor- Social.
B. Money- Managers- Social
C. Profits- Labor- Company
D. All is wrong.

12. Arrange the following phrases

Increasing social responsibility value according to Total corporate social

responsibility tower.

1. Discretionary responsibility

2. Legal responsibility.

3. Economic responsibility

4. Ethical responsibility

5. Contribute to the community

A. 3-2-4-5-1
B. 3-4-1-2-5

C. 3-2-4-5-1

D. 3-5-4-1-2