20CORPORATE SOCIAL RESPONSIBILITY REPORT - Dukat
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20
20
CORPORATE SOCIAL
RESPONSIBILITY
REPORT
STATEMENT OF SUPPORT AND BUSINESS
CHALLENGES
We are approaching the tenth year of membership and the application of the United Nations
Global Compact (UNGC) principles, whereby we improve the socially responsible business
operation of our company in the area of human rights, labour, contributions to the community,
environmental protection and the fight against corruption.
Responsible business operation, in accordance with the UNGC principles, has been the strategic
direction of our company, whether it concerns the relationship with employees, consumers,
business partners, cooperators, social community or attitude towards the environment. Assuming
responsibility for the role and influence of our company in the local community and wider is an
integral part of our business strategy and commitment to sustainable business operation.
Furthermore, we also seek to contribute to the achievement of the United Nations Sustainable
Development Goals in our business strategy to ensure the long-term sustainable growth of
our company and all our stakeholders. However, we emphasize that the context of Dukat Inc.
corporate social responsibility is significantly wider than the UNGC principles that we primarily
report on. The incentives for primary and sustainable milk production are of great significance for
the company and the rural areas where our farmers live and work, as well as the entire economy of
our country.
The focus on the quality and safety of our products, innovation and improvement of our products
and recipes, as well as on constant improvements in all levels of our business operations, are the
cornerstones of our development and sustainability.
In 2020, the Covid-19 pandemic had a significant influence on Dukat’s business operations at all
levels and on the business results of our company. The year has been marked by the care for our
employees and protection of their health, and by ensuring the unhindered continuation of all
business processes. Along with the increase of business complexity and extraordinary expenses,
we have seen reduced income from sales in the HoReCa channel due to the lockdown and weak
tourist season. The previous year has been marked by changes in the behaviour and purchasing
habits of consumers due to a growing sense of uncertainty and fear of a new economic crisis and
its consequences.
Nevertheless, in 2020, Dukat has managed to show resilience to significantly changed work
conditions, financial stability and independence, as well as to social responsibility at all levels.
Along with the unhindered continuation and reorganization of business processes, the focus was
on the protection of health and well-being of employees, and a series of extraordinary initiatives
were initiated for the protection, support, motivation and awarding of employees. The regular
operation of the supply chain has been maintained thanks to huge efforts of the employees and
management. Also, we initiated a solidarity, an intervention purchase of milk from small dairies
and farmers who lost their product placement opportunities due to the lockdown. Along with the
program for systemic donations of food throughout the country that has been implemented for a
number of years, Dukat has also initiated a series of extraordinary donations of dairy products to
help the citizens who are most affected by the epidemic and earthquakes in Zagreb and Banovina.
In addition to everything mentioned above, this report also includes an overview of other activities
related to the application of UNGC principles partially in line with the Global Reporting Initiative
(GRI) Standards and the European Commission guidelines on non-financial reporting. This provides
our stakeholders with a clear and relevant framework for comparing our activities with previous
and future ones, which we will continue to report on.
Alen Fontana
Director Zagreb, March 2021
2
DUKAT Inc. – THE LEADER OF THE DAIRY
INDUSTRY IN CROATIA WITH A CENTURY-OLD
TRADITION
Dukat Inc. (hereinafter: Dukat), cheese manufacturer, which also markets the branded
with its registered office in makes it the centre for the products of companies
Zagreb, is the leader of the development and expansion operating within the Lactalis
dairy industry in Croatia with of the dairy industry in Croatia Group, such as Alpsko mleko,
a tradition of more than 100 and South-East Europe. MU, Lactel, Parmalat and
years in the production of milk Societe, and its total sales
and dairy products, which has As the flagship brand for range comprises nearly 700
grown into a regional company milk and dairy products, dairy products.
as the result of organic Dukat successfully responds
growth and acquisitions. to the demands and needs The products and innovations
With 8 production plants in of consumers. Innovation, developed and commercialized
Croatia, Slovenia, Bosnia and insistence on quality and the in Croatia are today available in
Herzegovina, Serbia and North implementation of the latest 67 markets worldwide. Despite
Macedonia, the Dukat Group advancements in the food and the coronavirus crisis, Dukat
is currently the leader of the dairy industry have ensured and KIM have continued their
regional dairy industry. In that Dukat holds the position successful export operations
addition to Dukat, the Dukat of market leader and the in 2020 and achieved a volume
Group comprises 13 associated pioneer of trends in the dairy export growth of 11 per cent.
companies with registered industry in Croatia. Along with the increase of
offices in Croatia, Slovenia, export volume towards Italy
Bosnia and Herzegovina, Serbia, Dukat bases its operations in and Romania, in 2020 Dukat
North Macedonia, Kosovo and Croatia on the processing of and KIM began exporting
Bulgaria. top-quality raw milk produced their dairy products to two
by Croatian dairy farms. In new markets: Switzerland and
In Croatia, the Dukat Group 2020, Dukat cooperated Malaysia. The product range
currently employs 1,525 with 2,177 milk producers, intended for export includes
people in three production purchasing 185.5 million around 200 products.
plants: in Zagreb, Bjelovar and kilograms of fresh raw milk,
KIM Mljekara Karlovac (KIM), confirming its status as the Dukat has implemented
which is also an associated largest purchaser of fresh raw international standards
company, as well as in its two milk in the country. that ensure top quality,
associated companies LA LOG safety and food safety: ISO
for transport and distribution Its production range consists 9001 Quality Management
and B.P.A.C. Auto for car rental of milk, fermented products, Systems, FSCC 22000 Food
and leasing. In 2020, Dukat d.d. cheese, cream, dairy spreads, Safety Management and IFS,
achieved revenues from sales in desserts and butter. In 2020, as well as Kosher and Halal
the amount of HRK 1.7 billion, Dukat produced 186.2 million certificates for specific product
84.3 percent of which was on kilograms of products in groups. Dukat has also had
the domestic market. its range, comprising 481 the ISO 14001 Environmental
Dukat, Sirela, President and Management System
Since 2007, Dukat in Croatia Galbani brand products. In certificate, as well as the ISO
became a part of the Lactalis 2020, 35 new dairy products 50001 Energy Management
Group, the leading global dairy were introduced to Croatian System since 2017.
group and the leading global consumers. In Croatia, Dukat
This Report provides an overview of activities implemented in 2020 (01/01–31/12/2020) in Dukat Inc. and does not include the activities of
associated companies operating within the Dukat Group in Croatia, unless specified otherwise.
3
THE DUKAT GROUP IN
CROATIA IN NUMBERS (2020)
No. 1 dairy industry
3 production plants
Zagreb, Bjelovar and Karlovac
3 associated companies
KIM Mljekara Karlovac, La Log, B.P.A.C. Auto
1,525 employees
EUR 249.2 million turnover
241 million kilograms
of total processed milk
2,177 co-operators
4 umbrella brands
481 products
35 new products
introduced on the Croatian market
4
1
VOLUME DISTRIBUTION PER
PRODUCT CATEGORIES
1% 2% 1%
6%
MILK
7%
CHILLED DAIRY
CHEESES
15% CREAM
BUTTER
68% DEHYDRATED PRODUCTS
OTHER
PLANTS, WAREHOUSES
AND PLATFORMS
BJELOVAR
ZAGREB
KARLOVAC ĐAKOVO
RIJEKA
PULA
PLANTS
ZADAR CENTRAL WAREHOUSES
PLATFORMS (logistics
centres)
SPLIT
DUBROVNIK
5
6
1
HUMAN
RIGHTSPRINCIPLE 1 PRINCIPLE 2
Businesses should support and respect the protection of Make sure that they are not complicit in human
internationally proclaimed human rights within its area of influence rights abuses
Dukat fully respects human and labour rights based on the Constitution, laws and other
regulations of the Republic of Croatia, EU directives and international conventions. Dukat
guarantees and promotes human rights protection through good business practice and a number
of internal documents – Work Regulations, the Collective Agreement and the Code of Conduct.
These documents are available to employees on the intranet – internal Dukat portal.
RIGHT TO DIVERSITY AND EQUAL OPPORTUNITIES
GENDER
EQUALITY
REDUCED
INEQUALITIES All employees have equal opportunities. We respect all
opportunity for success and the rights and regulations that
position in the company depends prohibit child labour, forced or
entirely on the performance and compulsory labour, and protect
At Dukat, differences among success of each individual. the dignity of employees
people are accepted in an open by guaranteeing equality
and tolerant manner regardless In human resources and protection from sexual
of their age, nationality, ethnic management, we pay special harassment for employees
origin, religion, gender, language attention to adherence to the and persons undergoing the
and socioeconomic status. principle of diversity and equal recruitment process.
PROTECTION OF EMPLOYEES’ DIGNITY
Dukat consistently implements a Commission consisting of In 2020, as in 2019, there
regulations and directives of three independent members: were no reported cases of the
the European Union and Croatia a trade union representative, violation of employees’ dignity,
related to the suppression an administrative service which is the result of Dukat’s
of discrimination and the representative and a person efforts to raise the awareness of
protection of employee dignity, appointed to receive and employees on the importance of
and procedure protocol in address employees’ complaints respecting diversity, nurturing
case of a violation of dignity related to the protection of high-quality interpersonal
is embedded in the Work dignity. An identical protocol relations and cooperation, and
Regulations and the Code is also planned for all forms generally on building a positive
of Conduct. In the event of of discrimination and sexual organizational culture. In 2018,
a complaint or a request for harassment. there were four reported cases
the protection of dignity, the of the violation of employees’
Management Board appoints dignity.
CODE OF CONDUCT
Dukat has had its Code of ethical, moral and professional for daily activities and conduct
Conduct for more than 20 standards and generally in the workplace, including
years, which integrates the accepted civil values. The code their attitude towards other
principles of employees’ has been updated and provides stakeholders.
conduct in accordance with the a framework for the employees
DIVERSITY CHARTER
As a company whose relationship with its employees rests on non-discrimination and respect for diversity, at the
end of 2017, Dukat signed the Diversity Charter in Croatia. The aim of the initiative is to promote diversity as one
of the fundamental values of modern society, enabling each person to realize their full potential. It is one of the
prerequisites for the development of creativity, innovation and individual talents in the workplace.
78
2 WORKING
CONDITIONSPRINCIPLE 3 PRINCIPLE 5
Businesses should uphold the freedom of association The effective abolition of child labour, and
and the effective recognition of the right to collective
bargaining;
PRINCIPLE 6
The elimination of discrimination in respect of
PRINCIPLE 4 employment and occupation.
The elimination of all forms of forced and compulsory labour;
Dukat respects and guarantees all labour rights prescribed by law and the Constitution, and
systematically works on improving the quality of the work environment and experiences,
education and development of employees, and cares for health and safety at work.
FREEDOM OF ASSOCIATION AND
COLLECTIVE BARGAINING
DECENT WORK AND
ECONOMIC GROWTH
employment. The Agreement • Jubilee award
applies to all employees, • Assistance for days spent in
regardless of whether they the hospital
are trade union members, • Assistance in the event of an
Dukat has a 20-year-long have permanent or temporary Act of God
tradition of association and employment, or are working • Assistance to families in the
collective bargaining, and 34 full-time or part-time. The event of the employee’s death
per cent of its employees are Collective Agreement signed • Gift in-kind for Easter
members of the Trade Union for 2018 and 2019 was printed • Allowance for each new-born
of those Employed in the as a pocket edition and handed child
Agriculture, Food, Tobacco and to each employee of Dukat at
Water Industries of Croatia the beginning of 2018. Furthermore, employees
(PPDIV). Partnership with the are entitled to the following
representatives of workers In 2020, the material rights bonuses on salary: bonus for
is continuously improved of the employees were years of service, bonus for
through cooperation and additionally expanded, work in shifts, bonus for work
communication with the Works especially in the part relating on Sundays and holidays, and
Council. to support for the parents of monthly allowance. All Dukat
newborns and small children, employees are also insured
In 2020, 410 employees, or 34 accompanied by an increase of against accidents, regardless of
per cent, belonged to the Trade the monthly allowance in the whether they are permanent or
Union of those Employed in the gross amount of HRK 200 for temporary, full-time or part-
Agriculture, Food, Tobacco and all employees, the increase of time employees.
Water Industries of Croatia. inbound travel allowances to
HRK 200 and compensation for Dukat fosters regular and open
UNION MEMBERS separation in the amount of communication with the trade
414 HRK 1,750. union and the Central Works
408 410
Council and provides them with
A set of employee benefits is information about decisions of
available to employees based importance to the economic
on the Collective Agreement: and social status of employees.
• Allowance for sick leave The Management Board
2018 2019 2020
exceeding 120 days informs the Works Council
Compared to similar companies • Allowance for annual vacation about the business results,
in the region, the Collective • Christmas bonus plans, organizational changes
Agreement ensures a higher • Reimbursement of and other important issues
level of rights arising from transportation costs annually and when necessary.
9HEALTH PROTECTION AND SAFETY AT WORK
GOOD HEALTH
AND WELL-BEING
HEALTH PROTECTION
unhindered continuation of the Croatian Public Health
Dukat pays special attention of business activities at all Institute.
to health protection business levels.
and safety at work, and The employees were
encourages employees CORONAVIRUS SPREAD continuously informed about
to engage in recreational
PREVENTION MEASURES the measures and rules of
activities and sports. It
conduct through email, notice
supports and rewards
In order to ensure adequate boards and the internet, as
employees who are
volunteer blood donors by protection from the well as through extraordinary
giving them a day off. risk of infection for all weekly issues of the internal
employees, even prior to newsletter Contacta.
the announcement of the Additional posters were placed
Bearing in mind that 2020 was pandemic in the territory in prominent places and in
marked by the coronavirus of Croatia, a sequence of bathrooms describing the
pandemic, when it comes to measures were implemented measures designed to prevent
health protection, the focus in order to prevent the spread coronavirus spread, and a
was, along with the regular of the coronavirus and rules of protocol has been prepared
activities, to primarily protect conduct were prescribed for for cases of one or more
the health and wellbeing of all employees in accordance employees with suspected or
employees and to ensure with the recommendations confirmed coronavirus.
List of internal measures designed to prevent the spread of coronavirus
PREVENTION
Measuring of body temperature at the entrance
Hand disinfection at entrance
Hand disinfection prior and after the use of photocopiers and coffee makers
Use of ID cards while moving inside the plant, with only the necessary movement at the location
Measuring of body temperature and hand disinfection for external associates entering the plant
Behaviour in accordance with the prescribed protocol in case of occurrence of infection among the employees
INTERACTION
Handshake ban
Kissing ban
Ban on meetings in person
Maintain physical distance of 2 m
Avoidance of places where people gather in larger numbers
Limiting the movements at the location to only the necessary movements
Business travel ban
Work from home for employees who work on computers
Use of restaurant permitted only to production workers; other workers may only take meals to go from the restaurant
Ban on transit through the changing rooms on the way to the plant restaurant
10Delivery of remittances only by email or at the doorman’s booth
Employee rotation within departments
DISINFECTION
The regular disinfection of offices at the weekly level and shared premises, wardrobes and restaurants at the daily level
HYGIENE MEASURES
Compulsory use of face masks at work
Frequent washing and disinfecting of hands
Sneezing and coughing in disposable wipes or into the inner side of the elbow
Use of disposable wipes and throwing them away into the garbage bin after each use
Avoid touching the face with the hands (eyes, mouth, nose)
Ensure the regular ventilation of offices
AFTER WORK
Implementation of protective measures after work as well
FREE MENTAL HEALTH ASSISTANCE FOR EMPLOYEES
In the attempt to provide support to its employees in dealing with the stress, anxiety and
discomfort as a consequence of the coronavirus epidemic and the earthquakes, Dukat organized
free mental health assistance for its employees. In cooperation with a private psychological
counselling company, since April 2020, all employees of Dukat and related companies in Croatia
have the opportunity to arrange individual psychological counselling sessions with accredited
psychologists.
REGULAR HEALTH Dukat also regularly performs tests was reduced in 2020 due
PROTECTION ACTIVITIES carrier tests, for the protection to the COVID-19 pandemic.
of food safety and for checking
A preventive seasonal influenza the health status of employees In-house training for employees
vaccination is organized on the participating in the production on personal hygiene, food and
premises of the Dukat Group process, storage and food employee safety and targeted
in Croatia each year, with a transport. During 2020, training on food safety in
special emphasis placed on these tests were performed the supply chain (warehouse
this vaccination in 2020 due to on around 365 employees, workers) was organized for
the specific epidemiological while the tests covered 410 80 of Dukat’s employees in
situation caused by the employees in 2019 (11 per 2020. Unfortunately, the
COVID-19 epidemic. In cent less) and 750 employees coronavirus epidemic affected
November 2020, 200 in 2018 (51 per cent less). The numerous segments of
employees were vaccinated at reason for this decrease in the our activities, including the
all three production locations number of employees tested is training. Compared to 2019,
(Zagreb, Bjelovar and Karlovac), the amendment of the Law on these activities included 68
at six logistics centres and the Protection of the General per cent fewer employees,
at two related companies. Population from Infectious while compared to 2018 these
Compared to the year before, a Diseases introduced in the past activities included 80 per cent
significant increase of interest two years, which prescribes fewer employees.
for influenza vaccination has that the schedule of health
been noticed in 2020 by 117 controls shall change from 1
per cent compared to 2019, by January 2019 and shall be valid
160 per cent compared to 2018 for a full year, instead of for six
and a whopping 213 per cent months; the number of carrier
compared to 2017.
11TRADITION OF BLOOD DONATIONS AT THE
DUKAT GROUP IN CROATIA
50
The tradition of blood and related companies in 43
donations organized at Dukat Croatia, as blood donors
plants dates back to 1979, for many years, donated 30
with occasional interruptions their blood at the local
during the Croatian War of transfusion centres since
independence (1991–1994) there was no organized
and in 2020 due to the blood donation at work
COVID-19 pandemic. In 2020, due to the epidemiologic
50 employees of Dukat measures. 2018 2019 2020
PROTECTION AND SAFETY AT WORK
In order to protect the health protection of employees. In all three production plants
and care for the well-being of The Occupational Safety (Zagreb, Bjelovar and Karlovac),
employees, one of the most and Protection Policy and 12 together with the logistics
important goals of the Dukat Golden Rules of Safety at Work centre in Split and all the
Group in Croatia was safety at have been implemented for platforms in Croatia, a total
work, i.e. the improvement of the fifth year in a row, and of 13 workplace injuries have
the safety culture. both documents are handed been recorded in 2020 in Dukat
All employees are responsible to new employees and made and KIM, which is five injuries,
for the consistent constantly available on the i.e. 28 per cent less compared
implementation and notice boards and the internet. to the previous year. In 2019,
maintenance of all processes there were 18 workplace
related to occupational health Preliminary and periodic injuries, while 8 workplace
and safety and are encouraged medical examinations at injuries were recorded in 2018.
to identify weaknesses and to Dukat and KIM are regularly
support the measures aimed at carried out for all employees The lost time injury frequency
addressing such weaknesses. in workplaces with special rate (LTIFR) represents an
Injury prevention is aimed at working conditions. In 2020, indicator used to evaluate the
identifying potential hazards this included 639 employees success of our safety efforts.
and unsafe working conditions (44 per cent more than the It is a global measure of the
and health and safety risks year before). 586 employees number of accidents and
through their elimination by of Dukat and KIM were trained injuries that result in at least
applying control measures, in occupational safety and fire one day of lost time per million
setting prescribed warning protection, while 71 employees of working hours, and this
signs and instructions for attended professional training. indicator is monitored for all
safe work, testing the our employees.
work equipment and using NUMBER OF
prescribed personal protective WORKPLACE 18
equipment. INJURIES
13
Dukat Group in Croatia is 9
working on the systematic 6.5
education of employees in 4.8
3.3
production, warehouses
and logistic centres in order 2018 2019 2020
to decrease the number
of workplace injuries and Number of injuries with Absenteeism rate
increase the safety and health lost time (LTIFR)*
12NUMBER OF SICK DAYS 30,534 30,512
The results for 2020 are
30,279
significantly better compared In 2020, the number of sick
to the results in 2019 – LTIFR days decreased by one per cent
decreased from 6.51 to 4.8, compared to the year before,
which represents a reduction of while in 2019 it was 1 per cent
25 per cent. lower than in 2018. 2018 2019 2020
LEAVES OF ABSENCE
GENDER
EQUALITY In 2020, 38 employees that employees used 493 days of
became parents during the year paid leave, and in 2018 they
have received an allowance for used 465 days. Employees are
a new family member, while entitled to paid leave based on
In addition to providing a safe in 2019, 30 employees have their right to be absent from
workplace, Dukat makes sure exercised this right. work in the event of marriage,
its employees have carefree the birth of a child, the death
parental leave, regardless NUMBER OF PAID LEAVE of a family member, serious
of gender. In 2020, the DAYS illness or emergency treatment
parental leave was used by 25 557 of close family members,
493
employees – 24 women and 465 the voluntary donation of
one man. We have continued to blood, moving and natural
implement parenting measures disasters. Furthermore, in 2018,
in 2020, in accordance with the employees were granted paid
Collective Agreement: leave for the first day of their
• Allowance for each new-born child’s kindergarten or school.
child
• Paid day off for the child’s 2018 2019 2020 In 2020, 42 employees have
first day of kindergarten and exercised their right to paid
school In 2020, the employees used leave to care for a child during
• Day off for pregnant women 557 days of paid leave, which lockdown.
to perform their prenatal was 13 per cent higher than
examinations once a month the previous year. In 2019,
EMPLOYEE AID
Dukat helps its employees In 2020, Dukat responded AMOUNT OF FINANCIAL
and their families overcome positively to all requests from its AID TO EMPLOYEES (HRK)
difficulties by providing them employees and allocated HRK 969,026
with financial aid in various 969,026 for this purpose. Of
situations, and alongside using this amount, HRK 553,639.36
the rights to different types was paid to employees whose 614,329
of aid from the Collective homes were damaged in the 476,172
Agreement, it acknowledges 2020 earthquake.
their requests related to the
improvement of social status,
medication payments, therapies, 2018 2019 2020
medical aides and the like.
* LTIFR – Lost Time Injury Frequency Rate.
Calculation: number of workplace injuries with lost time × 1,000,000 / hours of work
13Supporting the care for the employees account for the Although in a significantly
health of its employees, Dukat majority of members: reduced scope due to
encourages them to participate • Sports Club Sirela epidemiological measures, in
in recreational and sports • Voluntary Fire Brigade Sirela 2020 Dukat also supported the
activities, including coming to Bjelovar recreational sport activities of
work by bicycle, supporting • Dukat leisure cycling club its employees.
such employee initiatives, • Dukat Futsal Team
especially those in which
EMPLOYEE DATA
TYPE OF EMPLOYMENT
In 2020, Dukat had 1,197 employees, which is 0.7 per whether they are permanent
employees, which is 54 cent less compared to the or temporary, full- or part-time
employees or 4.5 per cent year before. Work rights, as employees, members of the
fewer employees than the well as the rights under the union or not.
year before. Out of the total Collective Agreement and Employee fluctuation rate is 9.4
number of employees, 86 benefits, are applied equally per cent, which is 10.6 per cent
per cent are permanent to all employees, regardless of lower than the year before.
Total number of Permanent Temporary
Year
employees employment employment
14%
2018 1,267 1,010 257
2019 1,251 1,039 212
2020 1,197 1,032 165
EMPLOYMENT OF YOUNG PEOPLE AND PEOPLE ABOVE
50 YEARS OF AGE
Young people aged 18 to 30 make up 15 per cent of Dukat 86%
employees, and 32 new people under 30 were employed in
2020 – 22 remained employed. In 2020, two persons above the Permanent employment
age of 50 were employed and are still employed.
Temporary employment
AGE STRUCTURE
At the end of 2020, the average employee age was 43.3 years, which is 2 per cent more compared
to the previous year, i.e. 3 per cent more compared to 2018.
2%
Number of Number of Number of
Age of
employees employees employees 15%
employees
2018 2019 2020
< 30
< 30 227 205 179
29% 31 - 40
31 - 40 316 319 303
25% 41 - 50
41 - 50 378 355 342
51 - 60
51 - 60 323 342 344
> 60
> 60 23 30 30
Total 1,267 1,251 1,197 29%
14GENDER
The majority of Dukat to the year before and one 35%
employees are men (65 per percentage point more in
cent), while women account for favour of women compared to
35 per cent, which is identical 2018.
Number of Number of Number of
65%
Gender
employees 2018 employees 2019 employees 2020
Male 836 812 779
Female 431 439 418
Total 1,267 1,251 1,197
Male
Female
EDUCATION 10%
23%
The majority of employees (67
Elementary School
per cent) have a high school
diploma, while 23 per cent have Secondary school
a college and university degree, Higher school and
which is nearly the same as the faculty
ratio from the year before.
67%
COMPOSITION OF GOVERNANCE AND MANAGEMENT
GENDER positions (from 35 per cent in local experts, for executive and
EQUALITY
2012 to 51 per cent in 2020). management positions as well.
A high percentage of women The share of Croatian citizens
is represented in managerial in the top management (Dukat
In 2020, the share of women in positions – 27 per cent in Inc. directors) is 50 per cent,
governance and management executive positions (2 per cent and in senior management
positions at Dukat was 51 per more than in the year before) (executive and regional
cent, which is 1 per cent less and 24 per cent in managerial directors) it is 93 per cent,
compared to 2019 and 2018. positions. while in the high management
The past several years have (sectoral directors) it is 96 per
shown an increasing trend We pay special attention to cent.
in the share of women in hiring domestic labour and
governance and management
Average
Year Gender Number
age
Male 45 43
2018
Female 46 47 Male
51% 46%
Male 46 44
2019 Female
Female 47 47
Male 46 47
2020
Female 46 49
15RATIO OF SALARIES AND BENEFITS,
AND PROMOTIONS
Salary and benefits policies During the lockdown, we have During 2020, 85 employees, or
are based solely on the type identified and rewarded with 7.1 per cent were promoted
and complexity of the job, HRK 820,751 the employees to new jobs, based on their
responsibility, knowledge and who worked under difficult acquisition of new knowledge
skills necessary for carrying conditions, and through and skills within the framework
out tasks and achieving their extreme efforts and of their jobs, and taking over
results, excluding any form dedication ensured the new responsibilities within
of discrimination based on unhindered continuation of and between departments
gender, nationality, religion or Dukat’s operation, primarily the (horizontal and vertical
any other personal features. operation of the supply chain. promotion). In 2019, a total
of 519 employees were
In 2020, the average net Based on the Decision on promoted.
salary per employee was 7.5 the announcement of the
per cent higher than in 2019. COVID-19 epidemic on the
Total non-taxable expenses territory of Croatia, Dukat has
increased by 34.6 per cent organized work from home for
compared to the year before. 225 employees.
DUKAT LEISURE CYCLING CLUB
During its ninth year, the of Dukat and its associated the first line of dairy products
Dukat Leisure Cycling Club companies in Croatia. enriched with proteins.
(RBK Dukat), in spite of drastic
reduction of its activities due The members of the club At all three production
to the epidemic, continued have in June and July sites, World Cyclists’ Day
to work on encouraging the 2020 participated in three (July 16) was celebrated
everyday use of bicycles and demanding mountain bike with promotional activities
promoting the environmental, races: Occupy Samobor, Helter designed for employees who
health and social benefits Skelter MTB marathon in come to work by bicycle,
of recreational cycling, Rabac and The Capital, the and at the Zagreb Plant,
simultaneously inspiring first boat-cycling marathon on the International Day of
cooperation and team spirit Medvednica, proudly wearing Winter Cycling to Work was
among employees. The club the jerseys in Dukat Fit colours, celebrated (February 14, 2020).
has 136 members – employees
16CORPORATE IDENTITY
The parts of Dukat’s corporate identity have been redefined in 2020 as part of the comprehensive
brand repositioning process.
OUR PURPOSE
Milk is perfect natural food. It is with us throughout our live, from the early days, and
represents an indispensable part of our tradition and everyday lives.
Our purpose is to produce high quality, tasty and nutrient-dense dairy products and thus
improve everyday nutrition and the quality of life of our consumers, as well as of the
generations yet to come.
OUR POWER
1 2 3 4
WE ARE WE MAKE LIVES WE GROW WE ARE DEDICATED
A TREASURY OF BETTER TOGETHER TO LOCAL
UNIQUE KNOWLEDGE PRODUCTION
For more than 100 We contribute to We encourage We contribute to
years, we have the high quality learning and the sustainability of
been gathering nutrition of openness to new life in rural areas of
and sharing unique consumers of all things the country
expert knowledge generations
OUR OUR MISSION
VALUES
AMBITION
“ We are dedicated to our consumers.
With high quality and nutrient-dense dairy products, we
Entrepreneurial spirit
contribute to the adequate and balanced nutrition of
Perseverance
consumers of all ages every day.
Liability
Loyalty With innovativeness and diversity of offer, we satisfy the “
various needs and lifestyles of our consumers.
COMMITMENT
Efficiency
Constant development
Employee development OUR VISION
SIMPLICITY
Accessibility
“ Enable enjoyment of the best milk has to offer “
Transparency for the generations to come.
Pragmatism
17THE EDUCATION AND DEVELOPMENT
OF EMPLOYEES
QUALITY
EDUCATION
We are a treasury of unique professional knowledge and skills acquired over more
than 100 years of organized purchase and processing of milk, which we selflessly
share with our employees. We encourage them to learn, to develop and build their
successful careers, as well as to be open to new challenges of modern life and
business. That is why significant means and efforts are invested in the education and
training of employees.
In 2020, specialized and education hours per employee auxiliary workers, warehouse
development education was 8.2 in 2020, compared to workers and drivers). In 2020,
accounted for 77 per cent of 7.8 in 2019 and 9.4 in 2018. in-house education was
the total number of educations organized for 23 employees,
at Dukat, which is the same as INTERNAL EDUCATION which is 87 per cent less
in 2019 and 2018. The legally compared to 2019 when 177
required training accounts As part of internal knowledge employees attended the in-
for 23 per cent of the total transfer practice, a total of 33 house education, and nearly
education, the same as in the internal education sessions equally less compared to 2018
previous two years. were held for 385 employees (163 employees). The reason
of Dukat in 2020, compared for this is a drastic reduction
In 2020, the average annual to 46 in-house sessions for in regular and seasonal
expenditure for education 490 employees in 2019, employment during 2020 due
was HRK 1,510 per employee which is 21.4 per cent fewer to circumstances caused by the
(compared to HRK 1,251 the employees covered by in-house COVID-19 pandemic.
year before and HRK 1,533 in education than the year before
2018), while 718 employees and 40 per cent fewer than INTRODUCING NEW
were included in some form in 2018. The topics covered EMPLOYEES TO THE
of education (compared to food safety, product safety COMPANY AND ITS
762 the year before and 940 in protection and hygiene, self- ACTIVITIES
2018). control on manufacturing lines,
allergen control, safe machine Following the already common
operation, introduction of new practice, seven new employees
EDUCATION HOURS
machines, operator training, underwent induction training
11,835 food defence, food safety in in 2020, to get acquainted with
9,712 9,874 the logistic processes, safe the organization, main business
warehouse work, occupational processes and activities. During
health and safety topics, fire group and individualized
protection, and competition. induction programs, employees
All education sessions were visited key departments and
held by Dukat’s in-house were introduced to milk and
trainers. dairy goods processing and
2018 2019 2020
production in all three Croatian
Training related to hygiene plants. Induction training was
In 2020, employees and food and employee safety organized for 12 employees in
participated in 9,874 hours is also continuously carried 2019 and for 10 employees in
of education, compared to out for new employees in 2018.
9,712 in 2019 and 11,835 in Production and Logistics
2018. The average number of (focusing on operators,
18EMPLOYEE DEVELOPMENT PROJECTS
Dukat is systematically investing in the development and professional training of employees. Some of
the educational and development programs organized in 2020 include:
Number of Total no. of
Development program title
employees hours
PULS project – focus workshops for Bjelovar Plant managers; analysis of results
12 84
and action plan
Assessment centre – Zagreb factory operators 7 42
Workshop for call centre employees “Successful in crisis” 6 9
Training for Logistics internal trainers “Internal knowledge transfer” 11 88
Training for Bjelovar Plant internal trainer “Internal knowledge transfer” 1 12
360° evaluation for leads and managers at Logistics department 21 168
Communication workshop for the Central planning team “Successful team
16 256
communication”
Questionnaire “Strength Deployment Inventory” and communication workshop 27 162
Efficient virtual communication and remote team management 79 474
Development program Commercial Reboot for Sales, Marketing and Export -
23 368
“Change management”
PULS project – focus workshops for Sales; review of the previous work period and
70 140
main lessons for the future
Development program for Marketing “Teamwork” 8 48
Development program for HR “Personal and team resilience” 15 90
IT development program “IT Agility” 25 100
Business coaching 8 37
Total 329 2,078
In 2020, the development which, due to the unfavourable workshops and professional
education accounted for 48 epidemiological situation, training on various topics were
per cent of the total number of 1,868 hours were realized conducted; from technical
educations at Dukat. Overall, through virtual (online) training on Tetra Pak fillers and
one or more development education, which makes 88 per Sidel machines, to training for
programs were completed cent of the total development work at height, understanding
by 268 employees, i.e. 22 per education. of ISO 14000, ISO 50001 and
cent of the total number of IFS Food version 7 standards, to
employees. The total number In addition to the mentioned IT training.
of hours of development development programs, in
education was 2,115 hours, of 2020 a large number of internal
19PERFORMANCE APPRAISAL
Performance is evaluated each employees in Croatia were for employees in Production,
year within the Management included in the performance Maintenance and Quality
review project and an individual appraisal system. was also carried out in 2020,
development plan is created making the total percentage
for employees with recognized In addition to the standard of evaluated Dukat employees
high potential. In 2020, 15 Management review project, greater than 50 per cent.
percent of the Dukat Group’s a performance evaluation
PROFESSIONAL PRACTICES AND VISITS
PARTNERSHIPS
FOR THE GOALS and three student internships from the Faculty of Food
in Zagreb. In 2019, a total of Technology and Biotechnology,
seven pupils and 10 students University of Zagreb (82 per
have done their internships at cent less than in 2019). During
Due to the unfavourable Dukat. the visit, students take a
epidemiological situation, tour of the Zagreb Plant and
the protection of employee It was the same with are introduced to the entire
health and safety of products professional visits of students: production process, from the
in 2020, a significantly smaller only one was held in January, reception of milk to production
number of student internships during which Dukat and Zagreb and storage. In 2019, a total of
were completed: only two Plant were visited by 56 312 students visited Dukat in
student internships in Bjelovar students of process technology seven visits.
INTERNAL SURVEY OF EMPLOYEE SATISFACTION AND ENGAGEMENT “DUKAT UP!”
By the end of February and commitment, professional average satisfaction rating of
in the first half of March, development, leadership and all employees.
a survey of employee Dukat image.
satisfaction and engagement As the strengths of Dukat
was organized, as well as the The survey showed a and KIM, the employees
Dukat as an employer image generally high level of single out: regular and secure
“Dukat Up!”. 898 employees employee satisfaction, income, care for employees,
of Dukat and KIM Mljekara especially in the segment of good workers’ rights and
Karlovac participated in the employee commitment and stability. The areas requiring
research by filling out an engagement, leadership, job further improvements in
anonymous online or printed satisfaction and brand image, the future included the
survey in which they rated but also drew attention to acceleration of business
the claims in the six examined areas seeking improvement. processes and improvement
areas with grades from 1 to 5. of internal communication at
The examined areas included: The best rated area is all levels.
job satisfaction, satisfaction “commitment” with a high
with the work environment, score of 4.15, while 3.64 is the
20THE FIRST DUKAT GROUP INNOVATION COMPETITION IN CROATIA – INOVAC&JA
The First Dukat Group competition, which showed required capital investments,
Innovation Competition in a high degree of employee etc. Four employees were
Croatia – Inovac&JA was engagement at Dukat and awarded for three innovation
organized during the spring associated companies. proposals that best match
lockdown with the aim of The proposals were the development path of
strengthening the sense of considered and selected by a the Dukat Group in Croatia.
engagement and motivation multidisciplinary commission We are currently working on
of the employees and to shift according to a number of the practical implementation
the focus to the future of our criteria: compliance with of the winning innovation
business. Over 250 innovation the development strategy, proposals.
proposals from 75 employees market indicators and
were submitted for the trends, feasibility, level of
ANNUAL AWARDS
At the end of each year, (the most successful hopes, two for the best
prizes are awarded to the employees, manager, team mentors, two for lifetime
most successful employees, and lifetime achievement) and achievements, one for the
managers and teams who three newer categories (the sales representative, one
excelled in their work, most successful “young hope” for the manager of the year)
achieved results and the for employees below 30 years and two team awards were
application of the corporate of age, the most successful presented, of which one was
values throughout the year. sales representative, the for the newly introduced
Rewarding exceptional best mentor), another new category of change
individuals and teams is a category has been introduced management.
20-year-old tradition of the in 2020 – “Successful change
Dukat Group in Croatia and all management”. A virtual announcement
the employees are invited to of best employees was
nominate their colleagues and Among the record-breaking organized in accordance with
project teams. number of nominations in the circumstances, while the
2020, a total of 16 individual best employees received
In addition to the four already awards (seven for the best plaques from their managers.
traditional prize categories employees, three for young
21AWARD FOR EXCELLENT EMPLOYEE MANAGEMENT DURING THE EPIDEMIC
In the autumn of 2020, field of human resources • financial aid for the
Dukat was awarded the management, for a number employees whose homes
Excellence in Challenges of outstanding protection were damaged in the 2020
award for special quality and support programs earthquake in Zagreb and
employee management: and practices designed to the surrounding area
excellent practices motivate, evaluate and reward • internal innovation
implemented in the field of the employees initiated after competition and awarding
work organization, safety the outbreak of the epidemic. of the best proposals
and health and employee Here are just some of them: • internal research of
welfare, crisis communication • financial rewarding of the employee engagement and
and leadership in managing most exposed employees satisfaction
people since the outbreak of and preservation of all
the coronavirus epidemic. The material incomes and jobs
award was given to Dukat by during the lockdown
Selectio, a leading consulting • free mental health
company in Croatia in the assistance for employees
INTERNAL COMMUNICATION
Various channels are used for Contact COVID-19 was they have no access to the
internal communication: email, introduced in late March 2020 intranet. Information about
VPN mobile system, intranet to more effectively inform company events, the launch
(internal portal), the in-house and connect employees who of new products, employee
newsletter Contact, HR and have been working from benefits, etc., are regularly
Marketing newsletters, notice home since the declaration posted on noticeboards.
boards, meetings and “face-to- of the coronavirus epidemic. Space for trade unions and
face” communication, which By the middle of May and the works council’s notices is also
was transferred to online return to offices, a total of provided.
channels in 2020. eight extraordinary issues of
Contact COVID-19 were issued, Furthermore, Dukat fosters an
The in-house magazine Contact, distributed by email and in open-door policy, which implies
published quarterly, is intended printed form for production direct communication with
for employees of Dukat and logistics workers that do the department management.
and associated companies not have email addresses. In As well as directly, employees
in Croatia. Representatives addition to the extraordinary can contribute their remarks,
of various departments issues of the internal comments and ideas
and associated companies newsletter, virtual coffee anonymously, using boxes for
participate in creating it, and sessions with Dukat’s director comments and ideas placed at
other employees may also have been organized during all production sites.
participate with their stories spring lockdown.
and photographs.
Noticeboards are particularly
The extraordinary weekly issue important for employees in
of the internal newsletter production and logistics, as
22In order to improve internal legislation and employees’ most significant marketing
communication, Dukat started rights. The newsletter is campaigns. The newsletter is
preparing HR and Marketing distributed twice a year and distributed quarterly, and apart
e-newsletters in 2017, i.e. 2018. apart from the e-version, it from the e-version, it is also
is also placed on the bulletin placed on the bulletin boards.
The HR newsletter informs boards.
the employees about key
education, promotions, new The marketing newsletter
employment and organizational notifies the employees
changes, changes related to about new products and the
Covid-19 Covid-19
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i zatražiti pomo o tlo za razvijanje strah nje može se doživjeti njeni način života i rada
je naša oiz vodi Re Ca nil i sa . Po ! to do posto u ukazala o
Istovrem cija, kao kao zahvalu svim našim nova na na kanal, u su manjim trošači
iza li ste i d gla ge lnošću doprinijeli nastavku redovnih ć kada nam ova i nesigurno kao osamljeno predstavlja Bez ob stvar šim ko su zvolj ,
avali odnosu naprodajne
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situaciji rodite be jed ivan sta
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m što ste vno ostali ali i brige po zit a podrške koji su radili iz ukoliko za to poziv
osjetite potre am da iskoristite prilik zato osigurali besp povesti računa o ment sti u kojem živimo Naši ana na smo kod se sv a kupa er će go po rezulta
: osi slo ja, duh, zaposlenici u funkcijam latnu za m ku akod ca su sku pozic spodar vne navik
e uloga djelju do strpljen o snažan radom od kuće. Nastojite vrijem
bu. u za razgovor alnom
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roka noći je stapotrošači su odlas
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vam odgovara, štajte online ili telefo za stvari koje vas oiu vamo
mnog inci po izvodnjiuvjetima I dok na snagu stupaju renjem, za ra ek ra tetna na se u jed ko i po tra jan o. Za ku pu ke
ite
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nt kuša
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. Mot , novom sada je
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ZIMA 2019.-20 LJETO 2020.
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GRUPE GRUPE JESEN-ZIM
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GODIŠNJE NAG
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USPJEŠNO ZAVRŠEN PRVI
NAJUSPJEŠNIJIM
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DUKAT WE
INOVACIJSKI NATJEČAJ BSHOP
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40 GODINA OD SAŽETAK REZULTATA GODIŠNJE
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REB ISTRAŽIVANJA ZADOVOLJSTVA I NAJUSPJEŠ GRADE
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ANGAŽIRANOSTI ZAPOSLENIKA ZAPOSLE
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UI
POSLODAVCA TIMOVIMA
za internu raspodjelu zaposlenicima.
lenicima.
zapos
raspodjelu
zaposlenicima.
internu
Interni časopis Grupe Lactalis, isključivo
ivo za
isključ
raspodjelu
Lactalis,
za internu
Grupe
, isključivo
časopis
Interni
Grupe Lactalis
Interni časopis
EMPLOYEE BENEFITS
Dukat offers its employees leisure time, while also lower degree in 2020, and
and employees of associated generating savings. Due to mostly used free tickets for
companies in Croatia a the epidemiological measures, the Zagreb Zoo thanks to the
number of benefits as an the employees used the long-term sponsorship and
additional benefit and available benefits and cooperation between Dukat
stimulus to spend quality discounts to a significantly and the Zagreb ZOO.
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