Ceyda Aydede February 2006

1. Is CSR a Modern Robin Hood Philosophy? Ceyda Aydede February 2006

2. Is it a trend? • “CSR”comes from the idea of the wealthy and the leaders of a community giving back to society, protecting and supporting while gaining credibility. • Exists in all religions and societies since early times • Is more than a sponsorship or charitable donations (philanthropy) • It is a voluntary continuing commitment of businesses to behave ethically and contribute to economic development according to societies changing expectations and needs of differentiating themselves.

3. Success of CSR • Social Reponsibility projects must be in confirmity with corporate identity, corporate culture and business values. Otherwise, efforts will have no positive effect on reputation. • Social responsibility projects are not sponsorship programmes or marketing activities. Success of the project depends on the voluntary support of employees which is important as much as the financial support. • Effectiveness of publicizing activites are decreasing because of the marketing pollution. This causes corporations to use CSR as a tool for their differenciating needs.

4. Success of CSR • Conformitywith the corporate identity • Creativity • Sustainability • Success of CSR projects is related with the;

5. An important Tool for Reputation 1 products or services 2 financial performance 3 vision and leadership 4 working environment Conclusion 5 social responsibilities 6 and also how much your corporation is respected. • Reputation can be obtained by establishing good and right relations with your stakeholders. • Reputation index of a corporation is the mixture of the following criteria;

6. Important Steps of a CSR Project Before the project • Research and Plan • Create an appropriate, realistic strategy • Decide on a sustainable plan of action and activity During the project • Develop Dialogue & Communicate with stakeholders After the project • Publicize the project both internally and externally • Measure & Evaluate the success of the project • Report

7. Communication of Social Responsibility Projects • A Research executed by GfK Turkey in 2004 shows that % 74,5 of 1335 people agree corporations to explain their social responsibility activities through media channels. Question: What do you generally think about the corporations explaining their social responsibility activities through media channels such as television, radio, newspapers, etc.?

8. Typical CSR Programmes • Areas of CSR Programmes are; • Education (new schools, scholorships) • Health (new hospitals, outreach treatments) • Community (recreational, social) • Environmental (recycling, new energies)

9. Why CSR has to be Measured? • The impact of CSR has to be measured; • In order to decide about the right project which will best fit with the corporate identity and have an influence on stakeholders’ relations • In order to have information about to what extend corporate reputation is influenced by CSR activities • In order to measure the benefit gained by the society and the corporation itself according to the money spent on CSR projects (win-win)

10. Worldwide practices used for the measurement of CSR 1 Disclosure measurement 2 CSR indexes and models (Globescan –CSR Monitor, The Corporate Citizenship, CSR Scorecard, etc.) 3 Social audits and observation of concrete CSR processes Conclusion Conclusion 4 5 Evaluation of CSR principles and values within the corporate culture Global Evaluation Platforms (Global Compact / RCI) • Generally,5 types of evaluation methods are used;

11. CSR Measurement on country basis • The world’s first Responsible Competitiveness Index was launched in November 2003 at the UN Global Compact Conference in Brazil. According to this report National Corporate Responsibility indexes of the 51 countries were as follows;

12. Lithuania “As a leading Lithuanian bank,we are glad to be able to give funds to projects that might change fundementally or influnce the lives of certain social strata,and to bring about a qualatative change in their thinking or living. In the implementation of charity and public projects, we give priority to long-term projects rather than one-off contributions.We take every opportunity to develope and deepen contacts with the receipients,to make the support even more efficient. We are expanding our areas of support,and are moving forward as charity providers and active members of society” Gintaras Liubinas, Communication Director of SEBVilniaus Bankas Lituania in the World, No 6,2005

13. CSR Project Corporate Social Reponsibility GWA Winner -2004 SAFFRON Yapi Kredi Pension Fund-Tema (NGO)Turkey

14. SAFFRON Project • This project outlines social change and sustainable development programme managed by Harran University and TEMA ((The Turkish Foundation for Combating Soil Erosion, for Reforestation and the Protection of Natural Habitats, which is an UN accredited NGO) and Yapı Kredi Private Pension Fund, to the benefit of a small farming community in south eastern Anatolia.

15. SAFFRON Project - Objectives Objectives of the project were, to; • Implement transition from high volume – low earning crops – Cotton – to a low volume high revenue product – Saffron • Increase income and employment opportunities in the region • Provide training for the farmers to grow Saffron which is vanishing • Position the company as a caring member of the society

16. SAFFRON Project - Research Research by the university on Saffron identified that: • There is an established international market and domestic demand due to usage in pharmaceutical, nutrition, cosmetics and textile colouring • World saffron production in 2002 was 210 tons worth US $ 86.8 m • Harvesting is labour intensive, suitable to a family farming environment

17. SAFFRON Project - Research People and Culture: • Harran Plateau was home to different civilisations, empires and cultures from Hittites to the Ottomans. • The area is inhabited by Turkish, Arab and Kurdish people • The village (Çütlük) is made of 8 families (approximately 110 persons)

18. SAFFRON Project - Research Economic Impact: • Total farming area is 1,600,000 sqm. • In 2003, 400 tons of cotton from 1,000,000 sqm. And 300 tons of wheat from 600,00 sqm. are produced • Total annual income was approximately US$ 220,000 from cotton and approximately US$ 80,000 from wheat • GNP US$ 650 per person

19. SAFFRON Project - Planning Steps: • Establish a partnership between YKPF / Çütlük Village / Harran University / TEMA • Select a non commercial media plan for communication • Inform government via TEMA • Present project information and development via websites of University, TEMA and the company

20. SAFFRON Project - Planning Detailed statement of objectives: • Establish the project to improve social, economic, employment and educational opportunities in the village • Create a training programme for the community • Attract buyers for the crop • Inform and achieve support from other audiences fro the project • Communicate with the media / staff / public / Government • Be recognised as a leading long term investor and caring member of society

21. SAFFRON Project - Planning Communication channels: • TEMA and University meet landowner / farmers face to face • TEMA meet with National and Regional Government to present project proposals and reports to inform on progress and achievements • YKPF used media, internet and intranet and staff newsletter Communication Vehicles: • Cartoon illustrations of the process and the story of Saffron • Classes for the community • Powerpoint presentations were used for the training programme • Media Contacts were briefed by YKPF • Personalised media invitations were written by YKPF’s CEO. Media pack included. • YKPF’s website and intranet carried information on the project

22. SAFFRON Project - Planning Primary audiences and messages were: • Community of Çötlük and the landowner • Saffron will increase your income • Plant this crop for a new and improved future • Create a successful case for the rest of Turkey • TEMA / University / National&Regional Government Departments • Immediate economic gains; reduce imports / soil erosion; in line with national, regional and local economic development strategies • Co-operation between the partners – A pilot for societal change in the farming sectors across Turkey • Media / Public / Staff / other Stakeholders • “YKPF is a company that cares about you and your future”

23. SAFFRON Project - Evaluation Outcomes: • Improvement of social, economic, employment and educational opportunities • The first Saffron flowers were harvested in October 2004 • Plantation area will be increased to 6000 sqm in 2005 • Landowner increased farmers share of income to 50 % from 30 % • TEMA uses the project as a case study across Turkey • Education • Crop management training is ongoing • Interest of buyers for the crop • Main Turkish spice retailers purchased the crop

24. SAFFRON Project - Evaluation • Media / staff / public /Government immediately after the launch programme • YKPF achieved articles in 4 major national newspapers, 4 business, environmental and lifestyle magazines, radio & television coverage of 43 minutes • Future corporate materials will feature the project • TEMA & Harran University demonsrated the positive values to Government departments and other farming communities • The project was welcomed by the Government and used as an example of progress and change across country • Recognition of the company as a Corporate and responsible member of society • Media coverage positioned YKPF as a respected member of the business community, demonstrating acceptance of its responsibilities through action • YKPF’s support of the project, provision of medical care and communication within the project community is established

25. Corporate Social Reponsibility Gluten Free Flour IHE(Istanbul Halk Ekmek / Bakery owned and operated by the Metropilitan Municipality of Istanbul) Turkey CSR Project

26. Gluten Free Flour Project This project outlines healthy product producing (gluten free bread and gluten free flour) by IHE (Bakery owned and operated by the Metropilitan Municipality of Istanbul) Istanbul University Medicine Faculty to the benefit of a group of patients who suffer from celiac, autism and phenylketonuria illnesses and are unable to eat normal flour based products.

27. Gluten Free Flour Project - Research Research by the Istanbul University Medicine Faculty in Istanbul, Hacettepe University in Ankara, BERLİN University in Germany identified the key points needed to be addressed: • Celiac and Phenylketonuria diseases occur because of genetic and environmental factors • Sufferers of celiac, phenylketonuria autism – must consume gluten free products only • These diseases occur at every age group but mostly common among children • Side effects include mental retardation and other metabolic diseases

28. Gluten Free Flour Project – Research Cont’d • Families isolate their children from other families – embarrassment • With an estimated figure of 20.000+ sufferer’ this figure is higher in Turkey when compared to Europe • Patients can not eat chocolate / cakes or hamburgers from stores • Knowledge of symptoms outside the main urban areas was limited • It is necessary to supply & distribute gluten free flour to enable sufferers living out of Istanbul bake their own bread.

29. Gluten Free Flour Project - Planning Objectives of the project were to; • Identify and communicate specific messages to each public • Position IHE as a caring company • Create awareness about the diseases and its symptoms across the country • Offer a solution to improve lifestyle by providing the product • Assist the sufferers of the diseases • Create a federation of all ineterested parties – internal and external- through which the Health Ministry and Medical Schools would start clinical research on the issue

30. Gluten Free Flour Project - Planning Communication channels were: • Internal (Posters, Brochures, Notice Board, E-mail,communication with employees within the organization who are also sufferer of one of these diseases) • External (Help-line, Web-site, TV documentary, special event – gluten free chocolate distribution at PKU Association, Posters, Brochures, Direct mail, advertisin campaign – outdoor, printed media) Communication vehicles were: • Press releases • Press conference • Magazine articles • Special interviews – newspapers & TV Channels)

31. Gluten Free Flour Project - Planning Primary audiences and messages were: • Celiac and PKU autism sufferers and their families • You are not alone –there are other families use our free helpline • We can help you – ask for gluten free products and learn how to get them • You can help yourself – join one of the associations • You are a part of a special family • Our products are much cheaper than imported ones • You can buy flour and bake your own luten free cakes, breads, buns, etc. at home • Health Authorities / Doctors • You can recommend IHE’s luten free products to your patients • Government • Be aware of these dieseases • Act responsibly • Commit funds to clinical research • IHE serves Turkish Economy because imported products are too expensive

32. Gluten Free Flour Project - Planning • Bread Manufacturers • Manufacturers have to act responsibly and supply healthy products for consumers • Media • IHE supplies luten free products for Celiac, autism and PKU sufferers • General Public • Be aware of the symptoms • Be aware of the diseases • IHE is a caring company which supplies healthy products for consumers • Association of PKU celiac sufferers • Associations should form a federation which will co-operate with medical schools to persuade Ministry of Health to start a clinical research on the issue.

33. Gluten Free Flour Project - Evaluation Outcomes: • Number of phone calls to help line increased. 3800 addresses have been received in a week. • 190 e-mails and telephone calls are being received on a daily basis. • Awareness of the desease increased and people started to identify their own symptoms. • IHE started to create a data through a help line. • IHE’s gluten free products were also mentioned in health portals (Q&A) • Four related NGO’s in Istanbul are establishing a federation • Request for bread and flour has increased. Sufferers started to give order from phone line and pick up their food from the closest IHE kiosk on the following day. • Wide media coverage achieved

34. THANK YOU