Report 2013
Doğuş Holding A.Ş.
Maslak Ayazağa Caddesi, No: 2, 34396, Sarıyer, İstanbul - Turkey
Phone: +90 (212) 335 32 32 Fax: +90 (212) 335 30 90
DOĞUŞ GROUP STRUCTURE
OPERATIONAL MAP
OUR GROUP
Company Profile
Awards and Recognitions
Strategic Partnerships and Memberships
CEO MESSAGE
CSR AT DOĞUŞ GROUP
CSR Management Approach and Policies
Key Stakeholders and Material Issues
ECONOMIC ENGAGEMENT
Compliance and Risk Management
Responsible Investment
New Investments in 2013
Local Economic Development Programs
Supply Chain Management
Public Policy Contributions
EMPLOYEE ENGAGEMENT
Open Communication
Employee Health and Safety
Employee Satisfaction and Engagement
Employee Suggestion System
Performance Management
Training and Development Programs
COMMUNITY ENGAGEMENT
Business Ethics
Human Rights
ENVIRONMENTAL ENGAGEMENT
Environmental Awareness Programs
Energy Efficiency
Waste Management
Water Consumption
PERFORMANCE DATA
ABOUT THIS REPORT
INDEXES
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Content
Doğuş Holding and its Functions
1At Doğuş Holding we provide steering, coordination, control and audit functions, and generate value for the Group, monitor activities of the Group companies on behalf of shareholders, perform financial audits, and administer control systems. We aim to create competitive companies that put regional growth at the forefront of their operations.
Holding Functions
• Corporate Communications
• Finance and Financial Reporting
• Financial Affairs • Human Resources • Information Technologies • Internal Audit • Investments • Lean Management • Legal Affairs • Risk Management
• Security and Administrative Affairs
• Social Projects
• Tax Affairs
• Protocol
OUR GROUP
Company Profile
1Detailed information about the Holding Functions and Group Governance Structure can be found in Doğuş Group Annual Report 2013 at http://www.dogusgrubu.com.
tr/web/83-337-1-1/dogus_grubu_-_en/investor_relations/reports/annual_reports
2Effective from 1 January 2013, the Group has adopted the new reporting standard (IFRS 11- Joint Arrangements). The proportionate consolidation method applied to the
Group’s interest in joint ventures is replaced by the “equity method” effective for annual periods beginning on or after 1 January 2013. Therefore, key financial indicators Key Financial Indicators (TL thousand)
2010 2011 2012 2012 Restated2 2013
Revenues 8,654,592 9,929,164 11,000,016 6,649,328 8,644,506 Gross Profit 2,744,273 2,551,956 2,790,710 776,615 1,083,348 EBITDA 1,667,002 3,737,556 1,300,874 1,176,206 1,291,618 EBIT 1,425,944 3,455,629 993,655 961,861 1,052,443 Net Profit for the Year 966,015 2,691,764 744,003 744,003 143,555 General Administration
Expenses 1,153,172 1,189,808 1,351,433 591,404 748,359 Selling, Marketing and
Distribution Expenses 204,878 242,626 294,942 263,955 312,559 Total Assets 49,285,930 50,970,721 56,085,148 17,815,222 20,748,914 Total Shareholders' Equity 7,701,796 9,864,793 10,801,229 10,801,229 10,586,002
Key Performance Indicators (%)
2010 2011 2012 2012 Restated 2013
Gross Profitability 32 26 25 12 13
Net Profitability 11 27 7 11 2
EBITDA Margin 19 38 12 18 15
ROA- Return on Assets 2 5 1 4 1
ROE- Return on Group Equity 13 27 7 7 1
Founded in 1951, Doğuş Group has been taking its place among the leading business conglomerates of Turkey. The Group is a corporate leader in the region.
Doğuş Group is active in eight core businesses: financial services, automotive, construction, media, tourism and services, real estate, energy and entertainment. In addition, the Group sustains its growth with new investments in the areas of sports, entertainment, technology and agriculture.
Doğuş Group utilizes a management style that is both customer-focused and productivity-centered. While it is formed through material gains, it embodies a strong corporate citizenship approach which is at the center of all business practices of the Group and which benefits the entire society. In line with this approach, the Group implements several corporate responsibility and sponsorship projects, with a special focus on child development, education, environment, culture & arts and sports. Doğuş Group is aware of its responsibilities and acts in accordance with a vision that includes leading by example and contributing to economic development. The Group plays a significant role in the Turkish economy by creating numerous employment opportunities and generating high levels of business volume. The Group’s Corporate Social Responsibility Strategy; is to support economic, social and environmental development and increase the level of prosperity by creating innovative and sustainable business models in every sector and region.
Doğuş Group has more than 200 companies and over 35,000 employees. The Group has created strong customer loyalty while building brand value with its high-tech infrastructure. Doğuş Group continues contributing to Turkey’s ongoing process of transformation and innovation. Utilizing its global perspective, world-class brands, and noteworthy partnerships, the Group’s vision – particularly with regard to services – is a valuable asset
to Turkey. The Group is able to maximize the value of its brands by utilizing the highest quality human resources and the most advanced technology to maintain the high standards that have made it a regional leader in the services sector.
Doğuş Group always provides its services based upon the principles of customer satisfaction and trust. As a result of this approach, the Group has created reputable brands with global standards and has been representing Turkey worldwide. Its name is a source of attraction for international investors who are interested in Turkey. The Group has contributed to this process by creating a synergy with global giants including the following: BBVA (Banco Bilbao Vizcaya Argentaria, S.A.) in finance, Volkswagen AG and TÜVSÜD in automotive, CNBC, MSNBC and Condé Nast in media, Hyatt International Ltd. and HMS International Hotel GmbH (Maritim) in tourism, Latsis Group, Kiriacoulis Group and Adriatic Croatia International (ACI) Group in marine, and the International Azumi Group in the food & beverage and entertainment industry.
Standing out as a pioneer of change, Doğuş Group is always ready to adapt to the developments around the world. In line with this adaptation strategy, the Group also has the advantage of capitalizing on its broad range of experience and collaborations. By signing partnership agreements with the leading global companies, Doğuş Group signals its intention to accelerate its investments throughout the world. Regarding the latest international partnerships of the Group, Doğuş has always underscored its ambitious standing in becoming the regional leader of the sectors in which it operates.
In almost all of its core businesses, the Group has strong international partners providing high-quality services in 26 countries, with 35 world-renowned brands, the list of which are provided below:
GLOBAL PRESENCE
SECTOR COUNTRY BRAND / COMPANY SECTOR COUNTRY BRAND / COMPANY
Financial Services Germany Garanti Construction Oman Doğuş Construction Luxembourg Qatar
Malta Saudi Arabia
People’s Republic of China Ukraine
Romania
Tourism and Services
Croatia Villa Dubrovnik
Russia Italy Capri Palace
Switzerland Greece Flisvos, Zea, Lefkas and Gouvia Marinas
The Netherlands Croatia D-Marin Marinas
Turkish Republic of Northern Cyprus
Entertainment
People’s Republic of China
Zuma
UK Thailand
Ukraine UAE
Automotive IraqSwitzerland D-Auto USA UK Coya, Oblix, Roka, Tom’s Kitchen, Zuma
Construction Bulgaria
Doğuş Construction New Initiatives
Germany euro.message
Kazakhstan UAE
Libya UAE REIDIN
Awards & Recognitions
• “The Best Corporate Social Responsibility Project of the Year” (The Doğuş Kids Symphony Orchestra), 2013 Ace of M.I.C.E. (Meetings, Incentives,
Conferences, and Exhibitions) Awards
Doğuş Holding
• “The World’s 18th Strongest Bank”, Bloomberg Markets 2013 List
• “Turkey’s Best Bank”, The Bright Stars: World’s Best Banks 2013, Global Finance
• “Best Bank for Sustainability in Turkey”, World Finance Magazine
• “Best Bank for Sustainability - Europe”, IAIR Sustainability Awards 2013
• “2013 European Rising Star Award - Cross - Border Funding Acceleration”, MTN-i
• The First Turkish Bank granted “A” level by GRI with its Sustainability Report
• “Best Project Finance House in Central and Eastern Europe”, EMEA Finance
• “Turkish Project and Acquisition Finance Bank of the Year”, Inter Continental Finance Magazine, Global Banking & Finance Review, ACQ Magazine and Lawyers World
• “Best Turkish Finance Provider of the Year”, Acquisition International
• “Best Turkish Refinance Provider of the Year”, Inter Continental Finance Magazine
• Garanti Bank Call Center, “Gold” Award, the Best Technology Innovation - Internal Solution Category, the 2013 Top Ranking Performers Awards, the Contact Center World
• Garanti Bank Call Center, “Bronze” Award, the Best Sales Campaign Category, the 2013 Top Ranking Performers Awards, the Contact Center World
• Garanti Customer Satisfaction Department, “Silver Medal”, the Best Customer Service Department of the Year Category, Stevie Awards
• Garanti Bank’s Service “Find Incentive”, “Best Customer Focus”, the Best Business Awards
• Garanti Masters Private Banking, “Best Private Bank in Turkey” Award, World Finance
• Garanti Masters Private Banking, “Best Private Bank in Turkey” Award, the 2013 Global Private Banking Awards co-organized by the Banker and PWM (Professional Wealth Management) magazines
• “Turkey’s Best Relationship Management” Award, Garanti Masters Private Banking, the Private Banking and Wealth Management Survey 2013 conducted by Euromoney
• “Best Internet Bank in Western Europe” Award, Global Finance Awards
• “1st Place”, Bank that Utilizes Technology the Best Category, the Webrazzi Awards 2013
• Garanti Mobile Branch ranked 2nd,the Best Domestic Mobile Application Category, the Webrazzi Awards 2013
• “The Best Bank in Social Media” Award, Global Finance Award
• iGaranti Application, the “Most Contagious Service” Award, the Annual Most Contagious Products/Services Awards, the Contagious Magazine.
• “The iGaranti Online Campaign”, “Gold” in Marketing, Online Campaigns, Banking/Bill Paying Category, the W3 Awards 2013
• “Silver” with iGaranti Integrated Campaign in the Marketing, Integrated Campaign, Banking/Bill Paying Category, the W3 Awards 2013
• “Best Media Campaign” Award in Banking Category with the iGaranti Campaign, the Crystal Apple Awards 2013
• “Best TV Implementation” Award with the Integration of iGaranti into the ‘Kuzey Güney’ TV series, Crystal Apple Awards 2013
• “Best Branded Content Implementation” Award with the Integration of iGaranti into the ‘Kuzey Güney’ TV series, Crystal Apple Awards 2013
• “Best Outdoor Implementation” Award with the ‘Guitar Racket’ designed for the 15th Anniversary campaign of Garanti Jazz Green, Crystal Apple Awards 2013
• “Bronze Apple” Award in the Best Ambient Medium Implementation Category with the ‘Torch Project’ for the National Women’s Basketball Team dubbed the Pixies of Basketball, Crystal Apple Awards 2013
• The “Best Website of the Year” Award, Golden Spider Awards 2013
• “1st Place”, Garanti Internet Banking Branch, the Online Banking Category, Golden Spider Awards 2013
• “Recruitment and Distinctive Implementations” Award, Garanti Bank’s Human Resources, The 6th PERYÖN People Management Awards
• “Employer Branding” Award, Garanti Bank’s Human Resources, the 6th PERYÖN People Management Awards
Garanti Bank
Banking and Financial Services
• www.garantileasing.com.tr, “Award of Excellence”, the Financial Services Category, The 19th Communicator Awards 2013 held by the International Academy of Visual Arts
• “International Star Award for Quality - ISAQ”, Gold Category, 2013 International Quality Award Convention - Business Initiative Directions (BID)
Garanti Leasing
Responsibility - Education Project of Turkey”, the 12th Golden Compass Public Relations Awards
• Back to School, “Platinum” Award, Corporate Social Responsibility Category, the Hermes Creative Awards organized by the Association of Marketing and Communication Professionals
• “Silver” Award, Financial Services Category, 2013 Vision Awards, League of American Communications Professionals (LACP)
• “Silver Certificate”, Investors in People (IiP)
• “Respect for People” Award, Kariyer.net
• Back to School, “European Excellence” Awards, Communication Director Magazine, CSR Project of Regional & National Projects - Turkey
• The ENR Top 250 International Constructors, Engineering News Record
• “Overseas Contracting Services” Award, Turkish Constructors Association
• Approximately 950 awards to date for broadcasts and social responsibility campaigns
• 77 awards in various areas from ministries, organizations, associations and foundations, professional chambers, universities and high-schools in 2013
• Bonus Head, “Bronze” Award, the Card-Based Payment Systems Category, Effie Awards for Effective Marketing Communications
• Bonus, “Lovemark in Credit Cards”, Turkey’s Lovemarks Survey, MediaCat in collaboration with IPSOS KMG Research Company
• Miles&Smiles Webpage, “Bronze” Award, the Finance Category, the Horizon Interactive Web Awards
• Miles&Smiles Webpage, “Silver” Award, Travel and Leisure Category, the Horizon Interactive Web Awards
• Miles&Smiles e-magazine, “Silver” Award, News/Blog Category, the Horizon Interactive Web Awards
• Miles&Smiles e-magazine,“1st Place”, the Events, Culture and Arts Category, the Horizon Interactive Web Awards
• Garanti Mortgage Website (www.garantimortgage.com), “Best in Class”, Financial Information Category, Interactive Media Awards, 2013
• Garanti Mortgage Website (www.garantimortgage.com), “Bronze” Award, Best Website Award in Financial Services Category, the Stevie Awards
Construction
Media
Garanti Payment Systems
Garanti Mortgage
• “The Most Successful and Creative Company in Customer Communication Technology” Award, CISCO, 2013 EMEAR Customer Collaboration Partner Sales Summit
• Garanti’s Business Analytics Projects, “Analytic of the Year” Award, the SAP Forum
Garanti Technology
• “Gold” Award, ESQR’s Quality Achievements Gold Category, European Society for Quality Research
Garanti Invesment Trust Inc.
Doğuş Construction
Doğuş Media Group
• VW Golf, “1st Place”, Small Compact Cars Category, the Golden Steering Wheel Awards
• Doğuş Otomotiv Volkswagen Range Campaign, Medina Turgul DDB, “Silver”, Effie Awards
• Jetta, “TV Application of the Year”, Communication Category, ODD Awards
• Jetta, “TV Commercial Award”, Automotive Category, the Crystal Apple Festival of Creativity
• “Lovemark in Automotive”, Turkey’s Lovemarks Survey, MediaCat in Collaboration with IPSOS KMG Research Company
• Volkswagen Caravelle Microsite, “Special Honor Award”, Awwwards.com
• Crafter 22+1 Radio Spot, “Silver Drum”, Golden Drum 2013
• Caravelle and Amarok, “The Best Magazine Advertising”, Commercial Vehicles Category, Kırmızı 2013 Awards
• A3 Sedan, “1st Place”, Middle Class Category, the Golden Steering Wheel Awards
Automotive
Doğuş Otomotiv
• “Turkey’s Best Insurance Website”, “1st Place”, the Insurance Category, the Golden Spider 2013
• “Back to School: Educating, not Employing Children”, “Best Corporate Social
Garanti Pension & Life
• Holiday Check Quality Selection Certificate 2013
• Trip Advisor Excellence Certificate 2013
• Top Quality Hotel 2013, HRS
Maritim Hotel Club Alantur
Strategic Partnerships & Memberships
Strategic Sectoral Partnerships
In 2013, Doğuş Group had memberships in the following organizations either on a corporate or individual basis:
• ASTD – American Society for Training and Development
• CDP – Carbon Disclosure Project
• DEİK – Foreign Economic Relations Board
• DenizTemiz TURMEPA – Turkish Marine Environment Protection Association
• EFAMA – European Fund and Asset Management Association
• FERMA – Federation of European Risk Management Association
• Finans Kulüp - Finance Professionals’ Foundation of Turkey
• FODER – Financial Literacy and Inclusion Association
• Forum İstanbul
• KİD – Corporate Communications Association
• KRYD – Enterprise Risk Management Association
• ÖSGD – Corporate Volunteer Association
• Para Durumu (Turkey’s first financial literacy initiative)
• PERYÖN – Personnel Management Association of Turkey
• TBCSD – Turkish Business Council for Sustainable Development
• TEİD – Ethics and Reputation Society
• TİDE – The Institute of Internal Auditing, Turkey
• TKYD – Corporate Governance Association of Turkey
• TÜBİYAD – Finance & IT Executives Association
• TÜFİDER – Financing Institutions Association
• TÜSİAD – Turkish Industrialists’ and Businessmen’s Association
• UNEP FI – United Nations Environment Programme Finance Initiative
• UNGC – United Nations Global Compact
• UNPRI – United Nations Principles for Responsible Investments
• WEF – World Economic Forum
• WWF – Green Office Program
At Doğuş Group, we also give utmost importance to strategic sectoral partnerships and collaborate with global leaders related to our business activities.
Finance Sector: BBVA (Banco Bilbao Vizcaya Argentaria) Automotive Sector: Volkswagen AG, TÜVSÜD, Meiller, Krone, Scania
Media Sector: CNBC, MSNBC, Condé Nast, National Geographic Tourism Sector: Hyatt International Ltd, HMS International GmbH
Marina Sector: Kiriacoulis Group, Lamda Development, Adriatic Croatia International Retail Sector: Gucci, Armani Group, Capritouch, Porsche Design, Hublot, Loro Piana Entertainment Sector: Azumi Group, Doors Group, IMG Healthy Life: Chenot Group
Other: SK Group, Crate & Barrel, REIDIN
• “Certificate of Excellence”, Trip Advisor 2013
• “Sealed Air Sustainability and Tourism” Award, Skalite Awards 2013
• 47th on the World’s Best Hotels List, T+L 2013 World’s Best Award
• 4th in the Ranking of Large City Hotels of Europe (100 rooms or more)
• “Best Spa” Award, Seven Star Global Luxury Award
• “One of the Best Resorts in the World”, the 25th Annual Robb Report USA Best of the Best Edition in 2013
• Tatler’s 101 Best Hotels in the World 2013
• “Five Star Diamond” Award, American Association of Hospitality Science
Tourism and Services
Doğuş Tourism Group
Grand Hyatt İstanbul
D-Hotel Maris
• “Bronze”, Tui Nordic Blue Award 2013
• Highly Recommended, Zoover.Nl 2013
• Holiday Check Quality Selection Certificate 2013
• Rentokil Certificate of Excellence 2013
years (total investments in the past 10 years have reached USD 5.2 billion). While approximately 15% of these investments have been actualized in foreign countries, the majority of the investments of the Group were realized in Turkey.
Along with our economic success and contribution to the development of the regions under our operational map, we also maintained our practices regarding social and environmental sustainability in 2013 to bring prosperity to these regions. Doğuş Group continued to focus its main community engagement practices on two main areas: i) Education and development of younger generations and, ii) Development of arts and culture. Financial literacy has also become one of our top targets concerning community engagement since it has utmost significance for both economic and social development of a country. In the last period we initiated two financial literacy projects. With the “20,000 Women on the Way to the İstanbul Finance Center” program, we aim to increase the awareness of women, in terms of utilizing and managing their expenses, savings and investments intelligently. We will include 20,000 women in the program by the end of 2014. Another program that we carry out is “3 Kumbara” by which we ensure that financial literacy education is given to primary school fourth graders in the various regions of our country. We aim to include 500,000 children and parents in the program in four years. As Doğuş Group, we also believe that the agriculture and food sector will play a defining role in shaping of the economic, social and political future of the world. To satisfy the demands of Turkey’s agriculture sector, we made a strategic decision to link agro business with research and development. In this context, Doğuş Agro Projects R&D Services Corporation, was established in 2012. We also founded the Niğde University Ayhan Şahenk Agricultural Sciences and Technologies Faculty to contribute to the potential of our country’s agriculture and to meet the qualified human resources requirements in the sector.
In 2013, we made significant progress within the “Equality at Work” Platform. With the support of the Ministry of Family and Social Policies and with Mr. Ferit. F. Şahenk, Doğuş Holding Board Chairman, co-chairing the initiative, the Platform has initiated its efforts to secure more female participation in business life while creating opportunities and resources that encourage equal benefits. Within the scope of the Platform; we declared to develop private coaching and mentoring programs to help the progress of our female employees and initiated several projects. We are very pleased with the results and proud to share as a best practice. The female employee rate within the Group companies increased from 49% to 50%. In 2012, in terms of new employment, the rate of the female employment in Doğuş Group was 36% whereas in 2013 the ratio raised to 55%.
We will continue contributing to the social life of the regions, in which we operate, in terms of economy, employment, and the environment, by providing the perfect synergy with more than 35,000 employees.
I would like to thank our customers for their trust, our employees for their incredible dedication and our many stakeholders for their valued feedback. I believe Doğuş Group is forging deeper relationships with its stakeholders and will create stronger, and even more trusted brands in the future.
Hüsnü Akhan
Chief Executive Officer Doğuş Group
As one of the largest conglomerates of Turkey and the surrounding
region, we aim to bring economic, social, cultural and environmental
development in every sector, in which we operate, through innovative and
sustainable business models.
Dear Stakeholders,
We are very pleased to present our Group’s sixth Corporate Social Responsibility Report, which includes the social, environmental and economic performances of Doğuş Group in 2013. Our Group has always demonstrated its desire to invest in both today and tomorrow, focusing on stakeholder engagement with an employee and customer satisfaction oriented strategy. Doğuş Group companies’ actions during 2013, toward being a sustainable corporation, reflect that comprehensive approach clearly.
Our CSR strategy, is driven by our corporate values to create shared value for the Doğuş Group’s stakeholders and for economic development. We know very well that the sustainability and the progress of organisations are very much linked with the prosperity of the community in which it operates.
During 2013, we investigated to determine our key stakeholders, and social and environmental material issues to concentrate in the near future. Our CSR Committee worked to understand and reflect the key stakeholders’ concerns and needs to the results of this study. Their collective feedback constituted Doğuş Holding’s key stakeholder and materiality map with a view of appointing our future projections regarding sustainability targets. In line with our Group’s CSR strategy, we hope that this study will serve as a guide to lead the Doğuş Group companies.
As one of the largest conglomerates of Turkey and the surrounding region, we aim to bring economic, social, cultural and environmental development in every sector, in which we operate, through innovative and sustainable business models. The growth policy of Doğuş Group is to strengthen current business lines and to increase our market share. Our investment decision mechanisms are grounded on several sector scenarios, in addition to the Group’s targets and vision. All the investment decision processes include sustainability strategies. Conducting corporate responsibility in such a vein, major investments of Doğuş Group has reached about USD 3.1 billion in the last five
Responsible growth is the key objective of Doğuş Group’s corporate strategy, and is essential to our vision of being a ‘leader’ with our brands in the Turkish services sector and the surrounding areas. With a customer focused approach, we believe that sustainable growth is about our material issue towards all of our key stakeholders.
As Doğuş Group, we have a Corporate Social Responsibility (CSR) Strategy that defines the structure of the CSR and sustainability programs in our companies. Intending to be a regional leader in the services sector, we have set up our CSR policies to coordinate and manage sustainability performances.
Being one of Turkey’s leading business groups, we strive to conduct all our business operations in a responsible way, taking into consideration our stakeholders’ concerns and requirements, as well as profitability.
As sustainability is the key driver to innovation and for stakeholder trust, we rely on responsible business models; we have found that by encouraging the Group companies, we have enhanced our most valuable assets, in which we have invested since our foundation.
The UN Global Compact (UNGC) together with its ten principles about Human and Labor Rights, Environment and Anti-corruption, which we signed in 2007, is the basis of our CSR strategy and policies. We are also one of the pioneers in Turkey on CSR Reporting with respect to GRI (Global Reporting Initiative) International Framework, beginning in 2010.
Doğuş Group CSR Management Model was disclosed together with the CSR strategy and policies3 in the 2012 CSR Report. Because we are a multi-business conglomerate with global and local presence in several sectors, it is essential to clarify strategy and policies through a stakeholder engagement process. Therefore in 2013, Doğuş Group CSR Committee worked on key stakeholders and the economic, environmental and social material issues of our Group. The workshops were managed by an independent
consultancy according to AA1000SES (Stakeholder Engagement) standard and its methodology.
Corporate Governance
Doğuş Group’s corporate governance framework is the widest control mechanism, both internally and externally, for stimulating the proper and efficient use of corporate resources and simultaneously eliciting accountability for those resources. We believe that our Group companies must be run with the contributions of our stakeholder groups (customers, employees, suppliers) in response to the ecologic environment and the community of which they are a part. Therefore when decisions are to be made, Doğuş Group companies are encouraged to take into account how their decisions impact all these constituents.
Corporate Social Responsibility is itself a complex process of self-regulatory codes, especially with supply chains and multi-stakeholder business models. Corporate governance for Doğuş Group is a precursor to CSR, which both enables CSR performance and encapsulates it.
Governance Structure
Doğuş Group’s Board of Directors is made up of eleven members, including its chairman. The Board convenes four times a year or more frequently, as the Group’s business dictates. There are two committees which directly report to the Board: the Risk and Audit Committee and the Human Resources Coordination Committee. There is also a Legal Advisory Council. Doğuş Group has 14 departments. There are no independent members on the Board of Directors.
Detailed information on the Board and Committees, besides the Code of Ethics and the audit processes can be found in Group’s web site and in the Annual Report4.
Materiality
The main principles of CSR are based on materiality and the social and environmental impact of our companies with a major focus on key stakeholders’ expectations, in addition to concerns about the life cycle of our business operations. Therefore Doğuş Group’s materiality process was constituted in line with this vision. We believe it is critically important for all our Group companies to get the process of materiality correctly; identifying the material issues creates a successful and essential link between strategy and sustainability. Integrating CSR and sustainability into the business is a necessary driving force for reporting.
CSR AT DOĞUŞ GROUP
CSR Management Approach and Policies
To support economic, social and environmental development and increase the level of prosperity by creating innovative and sustainable business models in every sector and region in which we operate as a Group.
Following in Doğuş Holding’s values and guided by its “Touching the Lives” mission in CSR activities, Doğuş Group considers that the major principle of CSR is “engagement with stakeholders”. In support of this approach we, as Doğuş Group, select the economic, environmental and social concerns of our stakeholders as the baseline of our every step forward by touching their lives.
Doğuş Group’s CSR Strategy
3The details of Doğuş Group CSR Strategy and related policies within the CSR Management Model can be found in Doğuş Group CSR Report 2012 at http://www.
dogusgrubu.com.tr/i/assets/contentfiles/dogus_kss_2012.pdf
For a conglomerate as diverse as Doğuş Group, a Group level assessment of materiality cannot cover all material issues faced by each company within the Group. Our approach is to have a Group level materiality assessment and provide guidance for all our businesses. Some of our Group companies have published their individual CSR Reports, which include their CSR strategies and stakeholder engagement processes5.
Stakeholder Engagement
For Doğuş Group, stakeholder engagement is at the heart of our sustainability and stakeholder strategy and policies. We encourage our Group companies to consider the environment in which they operate and to meet the requirements of the stakeholders affected by their operations while achieving their objectives successfully6.
Stakeholder Dialogue in Group Companies
In Doğuş Group companies, stakeholder dialogue platforms are very much related to their key stakeholders’ needs and concerns. Every Doğuş Group company pays careful attention to stakeholders’ requirements. Stakeholder engagement is among the pillars of our corporate strategy. Several stakeholder engagement processes are managed by the Group companies in order to ask, learn, analyze and respond to their expectations. Customer satisfaction surveys,
employee loyalty surveys, partner and supply chain meetings and surveys, investor meetings and presentations, in addition to many online information tools, are common dialogue platforms which every Doğuş Group company utilizes annually.
5For Garanti Bank CSR Reports: http://www.garanti.com.tr/en/our_company/sustainability/developments/reports.page? and Doğuş Otomotiv CSR Reports: http://www.
dogusotomotiv.com.tr/en/corporate-responsibility/corporate-responsibility-reports.aspx
6Doğuş Group Stakeholder Dialogue Platforms are published in 2011 Corporate Responsibility Report http://www.dogusgrubu.com.tr/i/assets/contentfiles/80-DOGUS_
GROUP_CORPORATE_CITIZENSHREPORT_09.pdf, Pages 66-67
Key Stakeholders and Material Issues
Doğuş Group Stakeholder Engagement Approach
Empower Inform Consult Involve Collaborate
Compliance
Ethical Competitiveness
Customer Health and Safety
Sustainable Profitability
Quality Standards
Employee Satisfaction Business Ethics
Customer Satisfaction
Employee Health and Safety
Supplier Standards Human Rights Energy Efficiency Group Companies Employees Shareholders Customers Suppliers Public Institutes Creditors Investors
Doğuş Group’s Economic Responsibility Policy is set to manifest
Group companies, enabling them to manage their economic impact, taking
stakeholder benefits into consideration.
and ERM penetration, and to obtain sound and timely information for assessing and evaluating the decision making processes. In addition to establishing an independent reporting infrastructure and providing policies, guidance and know-how to our Group companies, raising Group-wide awareness for different types of risks and ERM culture is a continued undertaking facilitated by periodic risk roundtables, workshops, dashboards and reports throughout the organization.
Each sector has its own Risk and Audit Committee. These committees, functioning under the Board of Directors, are also responsible for assessing risks and proposing appropriate solutions according to the risk appetite of shareholders.
Internal Audit is an independent department designed to improve and add value to Doğuş Group’s operations. It helps the Group to accomplish its objectives by bringing a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control and governance processes.
Our Internal Audit Department is responsible for performing financial, operational (process) and IT audits for Doğuş Group companies in accordance with our annual risk-based audit plan. The Department operates with a risk-based approach, tracking all internal audit findings and coordinating follow-ups to ascertain that appropriate action is taken. Results are periodically reported to the Risk and Audit Committee of Doğuş Holding, which in turn monitors and reviews the scope, extent and effectiveness of the activity of the Internal Audit Department of Doğuş Holding and receives a report. The report includes updates on audit activities, progress of the Group audit plan, the results of the audits, the action plans to address these areas, and resource requirements of the Internal Audit Department. The Internal Audit team consists of qualified professionals in different audit disciplines with relevant experience in the business processes which are under review. All audit processes carried out by the Internal Audit Department are in accordance with International Audit Standards and Internal Audit Institute of Turkey standards, besides all other globally accepted audit principles, guidelines and standards. In addition, our Internal Audit Department monitors the findings determined during audits and the companies are interrogated about the progress once a quarter, at least four times a year.
Each sector within Doğuş Holding has its own Internal Audit department. The Internal Audit Department of Doğuş Holding works closely with the Internal Audit departments of the various sectors to improve the effectiveness of control environments within the Group companies.
Anti-corruption and Bribery
Doğuş Group audit processes include analyzing risks related to corruption in every part of our business. To ensure full alignment, each company’s compliance risk assessment processes are
reviewed and documented by the Internal Audit Department and reported to the Group’s Audit Committee. All risk assessment results are shared regularly with the senior management. In addition, all our companies assess and monitor the integrity and compliance performances within their own management processes. Doğuş Group Internal Audit Team can play an essential role if there is a necessity of consultancy, assurance, cooperation, advisement, monitor or investigation need about possible corruption cases within any of the Group companies under the control of Group Audit Committee.
As a part of assurance activities, Doğuş Group monitors potential corruption risks, evaluates the internal control systems and provides advice for improvement to the Group companies. Anti-corruption and bribery are our top compliance priorities in our risk management plans and the related subjects are covered in Doğuş Group Ethical Principles.
Transparency and Accountability
Doğuş Group adheres to strict business ethics that include principles of transparency and accountability in an environment which recognizes that all players, from large corporations to individual customers, and from employees to society in general, are affected by each other’s actions. We have fully integrated globally-accepted principles of responsible business conduct into all our operations and business activities; all stakeholders are kept informed of the Group’s position on these matters.
The Group’s efforts to uphold these principles and high ethical standards are not limited to its own business dealings; we also require that the same approach be followed by all our stakeholders at both the national and international levels. Doğuş Group strictly adheres to the principle of not involving itself with any party that acts contrary to globally-accepted standards and that cannot provide reliable disclosures with regard to its actions.
We pay careful attention to accurately disclosing information, financial and non-financial, to our shareholders, employees, customers, national and international business partners, suppliers, existing and potential investors in publicly-floated companies, and the community at large.
The Group makes all the relevant information available on its website and informs the public about its corporate strategy, activities, and new fields of investment via annual reports, periodic press releases, and conferences.
The Group’s financial statements are drawn up quarterly in accordance with the International Financial Reporting Standards (IFRS). Independent semi-annual and year-end audit reports are shared with the public.
All our affiliated companies, listed on Borsa İstanbul (BIST), have Doğuş Group’s Economic Responsibility Policy is set to manifest
Group companies, enabling them to manage their economic impact, taking stakeholder benefits into consideration. This policy is a guiding principle for all Group companies.
Doğuş Group:
• Fulfills its responsibilities while proceeding with investments towards sustainable growth targets, considering the Group’s direct and indirect economic impact.
• Ensures that the Group companies manage their operations and strive for the highest economic benefit within their value chain, aware of being important actors of economic development in their sectors.
• Evaluates, monitors, and manages its contribution to economic development under the principles of Risk Management, Responsible Investment and Local Economic Development.
Compliance and Risk
Management
Doğuş Group acts proactively in terms of risk management in order to ensure that its business operations in various industries and regions are not adversely affected by market, operational, liquidity
and / or counterparty risks. Risk Management and Internal Audit departments within each sector, and at the Group level, provide and maintain awareness for different types of risks, including emerging risks, and ensure that appropriate risk management mechanisms are in place.
With diverse business operations in several different regions and countries, we have already recognized our need to monitor and manage various risks, including not only strategic, business and operational risks, but external risks as well.
In 2013, Doğuş Group’s risk management activities proved once again successful in terms of maintaining and improving risk management practices, both at the Group level and at the company level, enhancing the risk culture across the Group. Risk Committee meetings are held on a regular basis, generating valuable and relevant risk information which is discussed and escalated if deemed necessary.
Risks are managed on a daily basis by various levels of management in each of our subsidiaries. Supporting risk management activities such as providing a framework for related guidance and reporting mechanisms are conducted by the risk function teams. The Group Risk Management Function works closely with Company Risk Management departments in order to strengthen our risk culture
Commitments Targets
Local Supply Encourage all Group companies regarding local supply policy, institute a data gathering system for determining the Group’s local supply financials
Local Employment Establish mechanisms to encourage local employment and support local vocational school programs
Infrastructure Investments Establish a stakeholder feedback mechanism to monitor and assess the results of current local infrastructure investments
Climate Change / Risk Management Set a climate change policy and awareness programs within the Group
individual Investor Relations departments that can effectively manage the flow of information to stakeholders in line with national regulations. The fields of activity and the performance of the Group’s publicly-floated companies are disclosed in conformity with the principles of their respective companies by the Capital Markets Board of Turkey (SPK).
Ethical Principles
Strict compliance with its Code of Conduct and standards is a key principle for Doğuş Group, and any individual or entity that violates the Company’s Code of Conduct is subject to disciplinary measures. As a participant to the United Nations Global Compact since April 2007, we have reaffirmed our commitment to fight corruption both internally and in other areas which may fall within our sphere of influence.
Ethical principles are spelled out and documented under the following headings:
• Time and resource utilization at the companies,
• Relations with customers, subcontractors, suppliers of goods and other companies and individuals with whom the Company has commercial interactions,
• The acceptance of gifts, invitations, and donations,
• Relations with the media,
• Actions that can result in conflict of interest,
• Safeguarding of information pertaining to the companies, personal information, professional misconduct, security and harassment.
In 2013 Doğuş Group Internal Audit Department made a study of Ethical Procedures of Doğuş Group companies and the results were reported to related companies.
Climate Change Risks
Climate change risks are monitored in the external risks category and in the scope of long-term risks within Doğuş Group’s risk monitoring systems. The risks related to the impact of climate change have short-term effects on insurance programs which we manage at preferred costs; especially catastrophic climate change impact is followed intently by our Risk Management division. In the Group’s insurance related business lines, the climate change risks are considered under risk based pricing. During the elementary insurance program buying process, the essential clauses are included and defined within the scope of assurance.
Our real estate business lines project progress in general expenses with the green building approach and improved evaluation systems. In the construction and real estate sectors, our Group companies are paying more attention to climate change related issues during the planning, constructing and maintenance phases of the projects.
Responsible Investment
As Doğuş Group, we believe that companies, which demonstrate powerful and transparent corporate governance and have sustainable business policies, generate financial benefits in addition to enhancing value to brand reputation and gaining the trust of stakeholders. Effective environmental, social and economic management systems and policies ensure companies credibility and sustainability because of a reliable risk management. Our investment policies actively encourage Group companies to improve their business standards by integrating the corporate responsibility approach to their management systems, monitoring their social and environmental impact, and addressing corporate responsibility as a business case and risk management system. The crucial goal of the responsible investment approach of Doğuş Group is to ensure that current and newly partnered companies’ managements align their business targets with the long-term social, economic and environmental concerns of the stakeholders. Doğuş Group has reached about USD 3.1 billion in the last five years (total investments in the past 10 years have reached USD 5.2 billion). While approximately 15% of these investments have been actualized in foreign countries, the majority of the investments of the Group were realized in Turkey.
The new investments policy of the Group is to strengthen our current business lines and to increase our market share. It is very important for us to enhance our product and service portfolio by entering into new business sectors. Our new investment decision mechanisms are grounded on several market and sector scenarios, in addition to the Group’s short and long term targets and vision. All of the investment decision processes include the corporate responsibility strategy. Economic, social and environmental aspects of the Group’s growth process are analyzed by the related divisions and experts.
Garanti SA
Support for Local Economic Environment
• Garanti Bank SA granted a financing to Softronic Craiova, the only
locomotive manufacturer in South-Eastern Europe. The financing was used for the manufacture of Hyperion, the first electrical multiple unit train in Romania.
• Garanti Bank SA was the sole financer of a new 2,100 meters runway
at the “Avram Iancu” International Airport in Cluj. It represents one of the most modern airport runways in Romania and
the largest most recent investment project in Cluj.
• Garanti Bank SA granted a financing to Urbis Baia Mare, for the
acquisition of 10 buses and eight trolley buses for the Baia Mare Municipality.
• Garanti Bank SA granted financing to Mehedinti Emergency
County Hospital, for the acquisition of new medical equipment for their maternity facility.
Doğuş Construction
Responsibility to Make Contribution to Urban Infrastructure Projects
Doğuş Construction is implementing its fourth metro project, in addition to the Taksim-Şişli, Kadıköy-Kartal, Otogar-Kirazlı-Başakşehir metro projects that it has undertaken in İstanbul, the most congested city in Turkey. This line includes 16 underground stations, a double line tube tunnel 20 km in length, and installation and implementation of all of the electromechanical works at the vehicle warehouse / maintenance site. The route of the metro line extends on a west-east axis to include the districts of Üsküdar, Ümraniye, Çekmeköy and Sancaktepe.
Responsibility to Implement High Technology
In the metro line rail systems, high-tech driverless vehicles shall be employed. Platform isolator door systems shall be available in each station as well as all types of handicapped accessible facilities, such as lifts and walking platforms. This metro line shall make great contribution to İstanbul’s transportation network, integrated with the current Marmaray and Metrobus lines as well as to the Bostancı Metro Line, which will be constructed in the near future.
Responsibility to Ensure Minimal Disturbance to Inhabitants
By changing the construction methods at the intersections of station construction works and existing roads, measures are taken to release the traffic on roads that are blocked. Information meetings are held with neighbourhoods prior to the commencement of road closing works and residents are notified via brochures and posters regarding the works to be performed and its duration.
Responsibility to Provide Information
Information regarding to works in progress is provided to concerned parties via project web sites and light boards at the site entrances. The project is introduced to visitors with an introductory film and brochures and information is provided on the issues that people are concerned about.
Garanti Culture
Newly established in 2011, Garanti Culture constructed a State of Emergency and Business Continuity Plan in 2013 with an
independent consultancy; all the customer and employee related risk issues were evaluated and analyzed during the process.
Garanti Asset Management
Garanti Asset Management is a member of United Nations Principles of Responsible Investments Initiative (UNPRI) and takes investment
decisions according to its Responsible Investment Principles Policy.
Ayhan Şahenk Foundation
Since its establishment in 1992, the Ayhan Şahenk Foundation has undertaken initiatives in the areas of education, health and environment, and offered social aid to those living in disadvantaged areas. With the vision and philosophy of its founder, Ayhan Şahenk,
the Foundation has continued to implement significant projects in 2013 for the benefit of our people and our community with a responsible perspective to help our government in fulfilling its social welfare duties.
New Investments in 2013
Doğuş Group and global sports, fashion and entertainment company IMG Worldwide signed an agreement to form a 50/50 joint venture company in Turkey. IMG-Doğuş, creates a broad range of projects in fashion, entertainment and particularly sports in Turkey.
IMG-Doğuş is seeking to create a sports Academy and training facilities; to develop and organize events in Turkey and the surrounding regions involving popular sports and other mass participation events; and to construct and develop improved sporting and entertainment infrastructure including stadiums and venues. IMG-Doğuş has already concluded a long-term agreement to promote and market the sponsorship and ticketing
rights of Beşiktaş Football Club (BJK). In August 2013 under IMG Doğuş’s consultancy, the biggest contract in Turkish sports history valued at $145 million was signed between Vodafone Turkey and BJK. Vodafone Turkey will have the naming rights of the Besiktas stadium, which is currently being reconstructed as the “Vodafone Arena”, besides the main jersey sponsorship. IMG-Doğuş, also organizes a weeklong Mercedes-Benz Fashion Week Istanbul event twice a year, which attracts foreign buyers and press to the Turkish fashion industry.
Another investment of Doğuş Holding in the entertainment sector in the recent years is the acquisition of Pozitif. The Company has
children with the mission of providing “equality of opportunities in education.” Darüşşafaka Sports Club was established in 1914 and opened the basketball branch in 1951. The Club has popularized Turkish basketball, raised star players and concentrated on the development of youth setup throughout years with a passion to contribute to the development of social and cultural life in Turkey. In September 2013, Doğuş Group, Darüşşafaka Association and Darüşşafaka Sports Club signed a long-term agreement to gain sportive achievements in Turkish and European basketball with a passion to advance Turkish basketball, while providing amateur athletes all over the country a chance for self-development in line with “equality of opportunities in sports” mission.
Local Economic
Development Programs
Doğuş Group’s Corporate Responsibility Strategy fully intends to ensure the well-being of the communities where we operate, and the Group’s vision and values also support this target. Beginning from the local supply chain, Doğuş Group has a strong economic impact on the local communities and high business standards support in public policy platforms as well as providing employment.
been leading the live music and entertainment industry in Turkey since its establishment in 1989. With cutting-edge events, global standards of excellence and an approach that seeks to challenge local industry conventions, Pozitif family is determined to retain and expand its leading position in the entertainment arena through its partnership with IMG-Doğuş. Pozitif aims to take advantage of the synergy it has with its close partners to dominate the local and emerging entertainment market by extending its content through strategic artist deals, cross-market digital productions, and developing strategic entertainment and festival tourism in Turkey, and in the neighboring markets.
Bonubon is a platform which enables premium brands to deliver lifestyle services to customers via mobile phones, internet or at exclusive events. Via its highly segmented database enabling customers to be identified by their specific interests and behavior, Bonubon enables merchants to deliver targeted lifestyle campaigns and experiences in fashion, dining, travel, beauty, gifting, leisure and entertainment. By 2013, with over 1 million members, 230,000 Facebook fans and 56,000 customers, Bonubon had claimed its position among the leading premium lifestyle platforms.
Doğuş Planet, established in June 2012, is a joint venture between Doğuş Group and the South Korean SK Group, which focuses on the e-commerce sector. Doğuş Planet combines SK Group’s experience in technology and innovation with Doğuş Group’s local expertise, regional experience, and strong assets. The fruit of this strong partnership is Doğuş Planet’s new e-commerce investment, n11.com, launched in the first quarter of 2013. This new venture operates as an open market platform, connecting diverse stores and brands to millions of customers. In 2013, within the first nine months of its operations, n11.com achieved a trade volume of more than USD 120 million.
Doğuş Teknoloji began its activities as a part of the Doğuş Group companies in 2012. Since then, it has remained an innovative, solution-oriented and dynamic company ensuring customer satisfaction through high-quality, value-added products and services at the lowest costs possible. Doğuş Teknoloji works in a huge variety of areas of Information Technology infrastructures, adapting systems and software products, creating and maintaining products using the latest technologies. Doğuş Teknoloji widely increased its project portfolio in 2013 including e-Invoicing, ERP and CRM solutions.
Related Group offers a variety of online marketing services through its different business lines. Related Group initially entered the Turkish market under the name, euro.message, as an e-mail service provider to a small number of the country’s market leaders. Since then, euro.message has been offering on demand e-mail marketing services to more than 3,000 worldwide brands and helping them implement e-mail, mobile and social media campaigns across
numerous channels, and automate their marketing processes. euro.message delivered more than 16 billion messages in 2013, up by 8 billion from the year before. Other than euro.message, Related Group has two more brands under its umbrella. The Group’s digital agency is MadebyCat, recipient of many awards from national and international organizations. The third service line of Related Group is Brand Mail, which is established to respond to the demand for permitted data for current customers and for online advertisers to manage e-mail databases.
Doğuş Group, continuing to grow in the internet sector through its new investments, became partners with the global real estate information company REIDIN, a global real estate information company focusing real estate markets in the emerging countries. REIDIN was established in Dubai in 2007 by two Turkish entrepreneurs, both with strong backgrounds in emerging markets, technology, investments and internet business. REIDIN was one the first companies in this sector to introduce a number of innovations in Turkey. The Company launched the world’s first platform which focuses on real estate information in emerging markets including Turkey as a main country.
Doğuş Group established Doğuş Agro R&D to create value-added products and services based on actual needs of the developing agribusiness in the country.
Doğuş SK Girişim Sermayesi, established in March 2013, is a joint venture between Doğuş Group (50%) and the South Korean SK Group (50%), which focuses on investing in small and medium size enterprises in Turkey. Targeting companies with strong growth potential and a competitive advantage, DGSK will support them at every level; financially, strategically, operationally and at the management level.
Doğuş Avenue was established on November 1, 2013 to bring together the skills and experience of relevant shareholders for investing in Turkey’s developing retail market. Extensive analysis of the houseware and furniture market in Turkey gives evidence that there is a huge potential for “affordable luxury”. The demand is quite high, but there are very few options which meet the expectations of consumers. Due to the limited range available, consumers are eager for modern, innovative and chic products, which are exactly what Crate & Barrel has to offer.
Doğuş Group founded Doğuş Sportif to make a big impact in Turkish basketball and, in the coming years, in European basketball as well. Doğuş Sportif aims to stand out by consistently producing high quality basketball products and maintaining a sportsman character for the organization, with a focus on making sports business one of the main fields of the Group’s operation. Darüşşafaka Association was seen as the best possible partner, as it was Turkey’s first NGO working in the field of education, founded in 1863 to support the education of poor and orphaned
Doğuş Agro Projects R&D Services Corp.
An agricultural research company established as a 100% subsidiary of Doğuş Holding, Doğuş Agro Projects R&D Services Corporation’s mission is to create value-added products and services based on actual needs of the developing agribusiness in Turkey.
The agribusiness industry in Turkey offers great potential. Acknowledging this opportunity, Doğuş Group established “Doğuş Agro R&D”. The main goals of the Company include bringing a strategic and visionary approach to the agriculture sector in Turkey, increasing the productivity and value added of the sector, and serving the interests of the public and private agricultural actors in the region by acting as an effective high-tech research hub. The Company’s office is located in Çukurova Teknopark, in Adana. Doğuş Agro R&D initiated two projects in 2013. The first project, currently underway, is to investigate the R&D and agro commercial potential of the Middle Anatolian region around Niğde (TR71 region). Academics from the Faculty of Agricultural Sciences and Technologies (FAST) of Niğde University have been conducting in-depth research on the agro inventory within the region and the level of efficiency in the agro production value chain. Based on their findings, Doğuş Agro R&D expects the project to result in new R&D projects which will serve the interests of the producers in the region. The completion of the project is planned in the first half of 2014.
The second project consisted of a maximum-yield potato trial in the Konya region, involving two different potato varieties. It was financed jointly by Doğuş Holding and Farm Frites BV from the Netherlands, a global expert and a major actor in potato cultivation and processing. The project tested the potato production potential in the region and investigated the extent to which the current production yields can be increased through utilizing high technology and efficiency increasing techniques. Completed in fall 2013, the average production yields of both the region and Turkey were surpassed. The climate and soil of the Konya region was found to be suitable for the production of high quality and high efficiency potatoes to be used for French fries.
In addition to these projects, Doğuş Agro R&D supported the establishment of FAST, a social responsibility project led by Doğuş Group. Established in 2013, FAST is the only agricultural faculty in Turkey to conduct its courses in English. FAST has students at the undergraduate, M.Sc. and Ph.D. level. Doğuş Agro R&D also works closely with Wageningen University in the Netherlands, which is one of the top agricultural universities in the world, facilitating the relationship between Niğde University and Wageningen University to enhance the quality of education in Niğde, to assist the development of double degree opportunities, and to make use of these institutions’ academic experience in the search for new R&D projects for the Company.
Supply Chain Management
Doğuş Group believes that the Group’s supply chain plays an important role in the decisive factors of the stakeholders and represents an essential resource to achieve the Group’s strategic goals. We very strongly give importance to supply chain management systems and encourage business partners regarding sustainable practices. We acknowledge that the value of supply chain service and quality have direct and recognizable impacts on our Group’s product and service quality, so we support any kind of improvement within the supply chain systems,
such as assessments, awareness programs, audits, social and environmental issues.
During our purchasing process all international quality, health and safety certifications are requested from the suppliers. Supplier agreements include employee health and safety clauses. In 2013, one agreement with a supplier was cancelled for acting contrary to the provisions of the contract about the supplier’s employee rights.
