On December 8, 2011, Mark Kramer, the leading professor from Harvard University and co-author with Michael Porter of the strategy of “Creating shared value," recognized Dutch Lady’s sustainable Dairy Development Program as a typical model of “creating shared value” as he presents about the concept in a symposium held by the Vietnam Chamber of Commerce and Industry (VCCI) and FrieslandCampina Vietnam.

The symposium witnessed the attendance of Deputy Prime Minister Nguyen Thien Nhan in tandem with more than 200 leaders of ministries, research institutes, corporate and media agencies across the country, and sets the goal in helping the parties understand, enhance and accelerate the efficiency of implementing "Creating shared value" in local communities.

 

In Vietnam, FrieslandCampina Vietnam (FCV) is an distinctive model for applying the theory "Creating shared value" with an array of community activities, encouraging local economic development, which is based on social needs and businesses’ strengths in producing and processing milk, such as the Dairy Development Program (DDP), the Den Dom Dom study encouragement fund, and nutrition programs, for a sustainable development.

 

Founded in 1995 with the goal of developing sustainable dairy farming for Vietnamese people, DDP has brought tremendous benefits for farmers and local businesses. The corporation has established an agriculture encouragement team of 70 well-trained specialists who are dedicated and committed to guiding farmers in improving milk quality and productivity. After more than 15 years of implementation, DDP has successfully offered sustainable jobs for over 3,100 households and significantly improved their living standard, together with developing sustainable dairy farming, while at the same time generating a long-term and high quality supply of raw materials.

 

Mark Kramer said: "DDP has successfully documented a sustainable dairy production system that could serve as a model of shared value creation for Vietnam, helping to develop new institutional capacities, policies and practices around sustainable development that benefit both smallholder farmers and the nation.

 

In “Creating Shared Value” through the DDP program, FCV can be proud of its efforts to create a strong legacy that jointly benefits its shareholders and the broader society by raising the quality of its dairy products while contributing to a better life in the local communities where it sources its products."

 

The symposium has substantially attracted the positive support, engagement and appreciation of the local and Central government bodies, media agencies, research institutes, non-governmental organizations, national leading enterprises, and multinational corporations. This is a FCV's extraordinary effort to propel the businesses and community for better understanding and participating in "creating shared value" and hence advancing the development of the country.

 

Director of SDforB-VCCI cum General Secretary of Vietnam Business Council for Sustainable Development (VBCSD), Mr Nguyen Quang Vinh, said "Theory of Creating Share Value is a new concept in the world as well as in Vietnam, however, the most advanced companies has begun to look at it as a core for their own long-term competitiveness. A part from practical and sustainable contribution to society, the theory creates an opportunity for business to increase their competitiveness, and promote the sustainable development of social economy. In Vietnam, Dutch Lady has applied successfully the theory through DDP from its first establishment in Vietnam for 15 years. Therefore, we have chosen to partner with FCV, is a business case for replicate this concept in Vietnam in the near future."

 

The theory "Creating Shared Value” proposed by Prof. Mark Kramer and Prof. Michael Porter was widely introduced in academia in early 2011, proved its effectiveness and was highly appreciated by the international corporate community. "Creating Shared Value" marks a fresh approach in implementing the strategy of corporate social responsibilities (CSR); to enhance the enterprises’ role in solving social issues; to strengthen business competitiveness, and to motivate economic progress to sustainably benefit both communities and enterprises. Opportunities to create "shared value” are shaped by the causal relationship between the society’s needs, business opportunities, and the corporations’ competitive advantages. Local firms can participate in the process of creating shared value at different levels: from supplying the society with better products at more reasonable prices; or engaging in managing natural resources effectively; to boost economic and social advancement and foster the development of the local economic sectors.