The wholly South Korean-invested Taekwang Vina Co. Ltd. has recently won the second place award for footwear and garment corporations with good corporate social responsibility (CSR) performance in 2006. The CRS award aims to improve the image and trustworthiness of Viet Nam’s enterprises which are becoming integrated into the global economy.
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| A factory of Taekwang Vina |
The wholly South Korean-invested Taekwang Vina Co. Ltd. has recently won the second place award for footwear and garment corporations with good corporate social responsibility (CSR) performance in 2006. The CRS award aims to improve the image and trustworthiness of
Garment and footwear enterprises satisfying criteria for assessment, including full compliance with the Labour Law and regulations of
Director General of the company Yoo Jae Sung said that they are really happy to receive this award. He told that the most difficult problem facing the company over a few past years was the conflicts between the employer and the employees and the company employs more than 14,000 people so that it is necessary to settle the conflicts in order to help stabilize personnel and resources, enabling the company to improve operational efficiency and profitability. He added that under staff localisation programme, Vietnamese have taken on important roles and management positions in Taekwang Vina and this reduced that gap between managers and workers.
In addition, the company is creating a communication strategy that builds a shared understanding between employer and employees. The company’s trade union not only serves as a bridge for communication between managers and employees but also provides consultation for board of managers of Taekwang Vina on labor policies, salary, bonus and lunch allowances etc.
In the other hand, the improvement of working conditions in the company is one of the most concerns of the managers. Besides, the company has also provided training programs on labor safe for its workers in order to raise their awareness of safety concerns and reduce labor accidents. Furthermore, the company in coordination with the trade union organize annually football matches for its employees and encourage the employees to actively take part in charity activities.
Knowing that Taekwang Vina offers several free services to its workers like free vehicle repair, free letter sending service, etc. In addition, the company also provides buses for the workers who are in Dinh Quan, Xuan Loc districts with half of the price.
The company has actively participated in social and charitable activities such as donating money to provide eye surgeries for the workers’ relatives, providing relief for Chanchu typhoon victims, building mini-football ground in Bien Hoa for pupils, presenting 200 bicycles to outstanding poor students in Nhon Trach district, offering 4 charity houses to the poor in Tan Phu and Dinh Quan districts. In the next time, the company will fund to drill wells to supply clean water for the people in remote areas.
Presently, Taekwang Vina has total investment capital of around US$90 million. It has achieved an average growth rate of between 15 per cent and 20 per cent a year. In 2006, the company produced 8.333 million pairs of shoes, reached export turnover of US$164 million. In 2007, Taekwang Vina will try to maintain production at the 2006 level because it foreseen that the company will have to face difficulties in consumption this year. Although there are some worries for the future, the company will still fulfill its obligation to the employees. Accordingly, its employee’s salary is increased by 8% per year; the employees are required to use all annual leave and given Tet bonuses.
Recently, the company has been awarded the Corporate Social Responsibility Award 2006. According to General Director of Taekwang Vina Yoo Jae Sung, the award is an honor for the company, therefore, Taekwang Vina has to make further efforts to protect environment and promote production.
Reported by Kim Loan
